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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2144 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2144

   To extend and enhance farm, nutrition, and community development 
   programs of the Department of Agriculture, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2007

Ms. DeLauro (for herself, Mr. Gilchrest, Mr. Murphy of Connecticut, Ms. 
 Woolsey, Mr. Rothman, Mr. Gerlach, Mr. Ruppersberger, Mr. Shays, Mr. 
      Allen, Mr. Hinchey, Mr. Courtney, Ms. Kaptur, Mr. Larson of 
  Connecticut, Ms. Schakowsky, Mr. Hodes, Mr. Castle, Mr. Arcuri, Mr. 
Farr, Mr. Welch of Vermont, Mr. McHugh, Mr. Reynolds, Ms. Shea-Porter, 
and Mr. Olver) introduced the following bill; which was referred to the 
 Committee on Agriculture, and in addition to the Committees on Energy 
and Commerce, Education and Labor, and Ways and Means, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
   To extend and enhance farm, nutrition, and community development 
   programs of the Department of Agriculture, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm, Nutrition, 
and Community Investment Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                TITLE I--MARKET AND ECONOMIC DEVELOPMENT

         Subtitle A--Farm and Ranch Profitability Grant Program

Sec. 101. Availability and purpose of grants.
Sec. 102. Allocations to States.
Sec. 103. Grant expenditures and allowable uses.
Sec. 104. State eligibility and accountability.
Sec. 105. Funding.
Sec. 106. Definitions.
                  Subtitle B--Miscellaneous Provisions

Sec. 111. Eligibility of certain agricultural producers for certain 
                            rural development programs.
Sec. 112. Technical assistance for specialty crops.
Sec. 113. Market access program.
                         TITLE II--CONSERVATION

         Subtitle A--Changes to Existing Conservation Programs

Sec. 201. Environmental quality incentives program.
Sec. 202. Delivery of technical assistance.
Sec. 203. Cooperative conservation partnership initiative.
Sec. 204. Conservation loan guarantee program.
Sec. 205. Pilot program for comprehensive conservation planning.
Sec. 206. Conservation application process.
Sec. 207. Minimum base allocation to States in funding of certain 
                            Department of Agriculture conservation 
                            programs.
Sec. 208. Conservation security program.
Sec. 209. Reauthorization of and increased funding for farmland 
                            protection program.
Sec. 210. Farmland Protection Policy Act.
Sec. 211. Debt for agricultural easements.
Sec. 212. Planning for agriculture grants.
Sec. 213. Exclusion of payments under Department of Agriculture 
                            conservation programs from adjusted gross 
                            income limitation.
Sec. 214. Reauthorization of and increased funding for wildlife habitat 
                            incentive program.
Sec. 215. Conservation reserve program.
Sec. 216. Wetlands reserve program.
Sec. 217. Pilot program for conservation risk management.
        Subtitle B--Conservation Corridor Demonstration Program

Sec. 221. Conservation corridor demonstration program.
Sec. 222. Implementation of conservation corridor plan.
Sec. 223. Funding requirements.
Sec. 224. Relation to existing program.
                           TITLE III--ENERGY

Sec. 301. Definition of biomass.
Sec. 302. Research on biobased products.
Sec. 303. Development of biorefineries.
Sec. 304. Energy audit and renewable energy development program.
Sec. 305. Renewable energy systems and energy efficiency improvements 
                            program.
Sec. 306. Biomass research and development.
Sec. 307. Cooperative research and extension projects for carbon cycle, 
                            renewable energy, and climate change in the 
                            Northeast and Mid-Atlantic United States.
Sec. 308. Industrial site redevelopment through cellulosic program.
Sec. 309. Farm and ranch energy efficiency rebate program.
Sec. 310. Alternative uses for biofuel byproducts.
Sec. 311. National net metering for farm energy.
                        TITLE IV--HEALTHY DIETS

Sec. 401. Expansion of fresh fruit and vegetable program.
Sec. 402. Section 32 specialty crop purchases.
Sec. 403. School preference study.
Sec. 404. Independent evaluation of Department of Agriculture commodity 
                            purchase process.
Sec. 405. Allow geographic preferences in food purchasing programs.
Sec. 406. Authorization level for farm-to-cafeteria activities.
Sec. 407. Extension of WIC farmer's market nutrition program.
Sec. 408. Senior farmers' market nutrition program.
Sec. 409. Disabled farmers market nutrition pilot program.
Sec. 410. Farmers' market promotion program.
Sec. 411. Department of Defense and Department of Agriculture 
                            procurement of locally produced fruits and 
                            vegetables.
                           TITLE V--FORESTRY

Sec. 501. National and State forest prioritization and planning.
Sec. 502. Healthy forests reserve program.
Sec. 503. Community forest and open space conservation program.
                          TITLE VI--NUTRITION

                     Subtitle A--Food Stamp Program

Sec. 601. Preventing reductions in benefits.
Sec. 602. Strengthening the food purchasing power of low-income 
                            americans.
Sec. 603. Child care deduction.
Sec. 604. Exclusion of combat-related military pay from countable 
                            income.
Sec. 605. Exclusion of retirement accounts from countable financial 
                            resources.
Sec. 606. Allowable countable resources.
Sec. 607. Facilitating simplified reporting.
Sec. 608. Simplifying work requirement.
Sec. 609. Minimum benefit.
Sec. 610. Reauthorization of food stamp program and food distribution 
                            program on Indian reservations.
Sec. 611. Accountability for paperwork requirements.
Sec. 612. Performance standards for biometric technology.
Sec. 613. Preventing conflicts of interest.
Sec. 614. Limitation on contracting.
Sec. 615. Fairness for legal immigrants.
Sec. 616. Clarifying eligibility.
Sec. 617. Ensuring proper screening.
Sec. 618. Clarification of simplified administrative reporting 
                            requirement.
                  Subtitle B--Other Nutrition Programs

Sec. 631. Commodities for the emergency food assistance program.
Sec. 632. Reauthorize the commodity supplemental food program (CSFP).
Sec. 633. Reauthorization of and increased funding for community food 
                            project competitive grants.
                       TITLE VII--CROP INSURANCE

Sec. 701. Reauthorization of and additional funding for agricultural 
                            management assistance program.
Sec. 702. Reauthorization, expansion, and improvement of adjusted gross 
                            revenue (AGR) insurance pilot program.
Sec. 703. Crop insurance incentives for beginning farmers.
Sec. 704. Crop insurance appeals.
Sec. 705. Expanded coverage based on historical data.
Sec. 706. Coverage area flexibility.
Sec. 707. Provision of organic insurance programs.
Sec. 708. Education and risk management assistance.
                           TITLE VIII--DAIRY

Sec. 801. Continuation of the milk income loss contract program.
Sec. 802. Minimum price for Class I milk under Federal milk marketing 
                            orders.
Sec. 803. Dairy export incentive and dairy indemnity programs.
Sec. 804. Funding of dairy promotion and research program.
Sec. 805. Federal milk marketing orders.
Sec. 806. Dairy processing equipment loan guarantee fund.
Sec. 807. Federal loan forgiveness program.
Sec. 808. Mandatory reporting of dairy commodities.
                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. National organic transition and stewardship incentive 
                            program.
Sec. 902. National organic technical committee.
Sec. 903. National organic certification cost share program.
Sec. 904. Exclusion of 100 percent of gain on sales of development 
                            rights or conservation easments on 
                            agricultural land to eligible entities for 
                            conservation purposes.
Sec. 905. Establishment of research grants program for producers to 
                            improve survivability of speciality crops 
                            and livestock.
Sec. 906. National clean plant network.
Sec. 907. Early pest detection and surveillance improvement program.

                TITLE I--MARKET AND ECONOMIC DEVELOPMENT

         Subtitle A--Farm and Ranch Profitability Grant Program

SEC. 101. AVAILABILITY AND PURPOSE OF GRANTS.

    (a) In General.--For each of fiscal years 2008 through 2013, the 
Secretary shall make a grant under this section to each State, through 
its State Department of Agriculture, that has an approved 3-year 
strategic plan and has submitted an annual work plan and annual report 
in accordance with the terms and conditions established under section 
(4).
    (b) Purpose of Grants.--The objective of these grants is to improve 
the profitability of America's farms and ranches, increase self-
employment opportunities for farmers and ranchers, revitalize local and 
regional food systems, increase wealth and asset-building in rural 
communities; and encourage entrepreneurship and innovation in farming 
and ranching by funding State, local and farm-level programs and 
projects that address--
            (1) farm viability and diversification;
            (2) market development and promotion;
            (3) product development/differentiation and promotion;
            (4) consumer education;
            (5) business planning;
            (6) alternate ownership models and structures;
            (7) local and regional infrastructure needs; or
            (8) local and regional food security needs.
    (c) Maintenance of Effort.--The State shall provide assurances to 
the Secretary, as part of its annual accounting required under section 
104, that funds provided to the State under this section have been used 
only to supplement, not to supplant, the amount of State funds 
otherwise expended in support of the permitted grant uses.
    (d) Administrative and Planning Expenses.--Not more than 5 percent 
of funds provided annually under this section may be used by the State 
for administrative and planning expenses.

SEC. 102. ALLOCATIONS TO STATES.

    (a) Fifteen percent of any funding allocated annually under this 
subtitle shall be allocated equally among States as a minimum base 
grant amount. Subject to the appropriation of sufficient funds, each 
eligible State shall receive at least $3,000,000 each fiscal year as a 
minimum grant amount under this section.
    (b) Beginning in fiscal year 2009, and for each fiscal year 
thereafter, 15 percent of the amount of the funds allocated under this 
subtitle shall be distributed to States as bonus payments. Bonus 
payments shall be awarded equally among those States that match at 
least 30 percent of the prior year's Federal allocation under this 
subtitle with an equivalent amount of State, local or private funds, or 
combination thereof.
    (c) All remaining funds allocated to States under this subtitle 
shall bear the same ration to the total amount made available under 
this section for that fiscal year as a composite index, weighted 
equally, of the market value of agricultural sales and the number of 
farms in the State during the preceding calendar year bears to the 
composite, weighted equally, of the market value of agricultural sales 
and the number of farms in all States receiving grants under this 
section in the fiscal year.

SEC. 103. GRANT EXPENDITURES AND ALLOWABLE USES.

    (a) Eligible Grant Recipients.--To achieve the objectives of these 
grants, a State department of agriculture may use grant funds provided 
under this title to supplement funding for State programs, projects and 
initiatives, and/or to provide grants to any of the following:
            (1) Producers.
            (2) Local and regional government entities.
            (3) Agricultural cooperatives.
            (4) Agricultural processors.
            (5) Non-profit organizations.
            (6) Research institutions.
    (b) Permitted Use of Grant Funds.--A State may use grant funds 
received under this section for any of the following purposes:
            (1) To provide marketing or business development assistance 
        to producers.
            (2) To promote product development or differentiation.
            (3) To encourage direct-to-consumer market opportunities 
        such as--
                    (A) farmers markets;
                    (B) buy-local campaigns;
                    (C) agri-tourism; and
                    (D) on-farm retail market opportunities.
            (4) To rebuild local and regional food systems through 
        planning or development of agricultural processing facilities 
        or other infrastructure that enhances or adds value to 
        agricultural products grown within the State.
            (5) To match State funding for--
                    (A) farm viability programs;
                    (B) agriculture innovation centers; and
                    (C) recreational walk-in or access programs.
            (6) To encourage profitable business models and develop 
        alternative ownership structures and new business succession 
        models.
            (7) To increase consumer awareness of agricultural products 
        and services grown and provided within the State, including 
        advertising and promotional campaigns.
            (8) To provide direct grants to producers for farm 
        infrastructure or equipment needs that--
                    (A) add value to a commodity produced; or
                    (B) will allow for the transition to a new 
                agricultural enterprise.
            (9) To provide technical, legal and other support to 
        beginning and/or socially disadvantaged farmers.
            (10) To assist county and local governments in planning for 
        agriculture, including the land use and infrastructure needs of 
        local producers.
            (11) To address food safety issues, including training.
            (12) To enhance the competitiveness of specialty crops, 
        including applied research.
    (c) Prohibited Use of Grants Funds.--A State may not use grant 
funds received under this section to directly subsidize the price of an 
agricultural commodity in the market.
    (d) Maximum Grant Amount.--A State may not award more than 33 
percent of the funds it receives under this section in any fiscal year 
to any single project, proposal or program.

SEC. 104. STATE ELIGIBILITY AND ACCOUNTABILITY.

    (a) In General.--To be eligible to receive a grant a State must 
have a 3-year strategic plan reviewed by that State's Federal Food and 
Agricultural Council and approved by the Secretary of Agriculture. 
Strategic plans shall be prepared and submitted in the first and fourth 
fiscal years in which funds are available under this section. A 
strategic plan shall include the information required in subsection (b) 
as well as any other information the Secretary may require by 
regulation. Within 90 days after the end of each fiscal year in which a 
State is allocated grant funds under this subtitle, a State shall 
submit a report of the previous fiscal year's activities. The report 
shall include the information required in subsection (c) as well as any 
other information the Secretary may require by regulation.
    (b) Strategic Plan.--A strategic plan shall reflect the diversity 
of the State's agricultural sector, including the production, 
processing, marketing, and distribution of its food and agricultural 
products, and must include the following:
            (1) The State's vision for meeting the purposes of the 
        title.
            (2) The State's 3-year plan for achieving that vision, 
        including goals, objectives, measurable outcomes and yearly 
        milestones toward completion.
            (3) An explanation of how the plan reflects the diversity 
        of the State's agricultural sector, and the method by which the 
        State has and will continue to solicit the input of the 
        agricultural sector in developing the plan, setting grant 
        priorities and selecting projects.
            (4) A year-by-year work plan, including--
                    (A) general project areas that will be funded;
                    (B) percent of funding anticipated for each project 
                area; and
                    (C) the expected project selection process for each 
                fiscal year.
    (c) Annual Reports.--Within 90 days after the end of every fiscal 
year, a State shall submit a report of the previous fiscal year's 
activities, including an accounting of projects funded, non-Federal 
funds leveraged, mileposts completed, outcomes achieved, and 
unobligated funds remaining. The annual report shall also include an 
updated work plan for the current fiscal year.
    (d) Review of Strategic Plans and Annual Reports.--In reviewing the 
strategic plan submitted under subsection (b), the State's Federal Food 
and Agricultural Council shall ensure that the plan reflects the 
diversity of the State's agricultural sector and will carry out the 
purposes of the grant program. The Council shall submit the plan and 
its recommendation to the Secretary regarding the plan within 45 days 
of receipt of the plan. The Secretary may request that a State make 
changes to its strategic plan or may reject a State's strategic plan, 
but must give a State an opportunity to resubmit a revised plan. The 
State's Food and Agricultural Council shall also review the annual 
report required under subsection (c), and shall forward the report and 
the Council's recommendations, if any, regarding the State's annual 
work plan to the Secretary within 45 days of receipt of the report. The 
Secretary may request that a State make changes to its annual work plan 
in order to more fully reflect the priorities of the State's strategic 
plan or the goals of the program.
    (e) Unobligated Funds.--Any funds not obligated by a State within 2 
fiscal years shall be remitted back to the Secretary for redistribution 
in the next fiscal year.
    (f) Effect of Noncompliance.--If the Secretary, after reasonable 
notice to a State, finds that there has been a failure by the State to 
comply with the requirements under section 101(c) or section 104(b) or 
(c), is not substantially meeting the outcomes and milestones described 
in its strategic and yearly work plans, is not meeting the purposes of 
the grant program or is not funding projects reflective of the 
diversity of the State's agricultural sector, the Secretary may 
disqualify, for 1 or more years, the State from receipt of future 
grants under this title.
    (g) Audit Requirements.--The State shall submit an annual audit to 
the Secretary, through the Agricultural Marketing Service. A State may 
use no more than 2 percent of the total funds awarded to it under this 
section to perform this audit.

SEC. 105. FUNDING.

    The Secretary shall use $1,000,000,000 of funds of the Commodity 
Credit Corporation during each of fiscal years 2008 through 2013 to 
carry out the purposes of this subtitle.

SEC. 106. DEFINITIONS.

    In this title:
            (1) The term ``State'' means the 50 States.
            (2) The term ``State department of agriculture'' means the 
        agency, commission, or department of a State government 
        responsible for agriculture within the State;
            (3) The term ``producer'' has the meaning given such term 
        by the Department of Agriculture for the purpose of the Census 
        of Agriculture.

                  Subtitle B--Miscellaneous Provisions

SEC. 111. ELIGIBILITY OF CERTAIN AGRICULTURAL PRODUCERS FOR CERTAIN 
              RURAL DEVELOPMENT PROGRAMS.

    An agricultural producer or entity that is substantially owned and 
operated by agricultural producers shall not be required to be located 
in, or pursuing a project in a rural area for purposes of eligibility 
for programs administered under the following provisions of law:
            (1) Section 313 and title V of the Rural Electrification 
        Act of 1936 (7 U.S.C. 940c and 950aa et seq.).
            (2) Subtitle G of title XVI of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.).
            (3) Sections 306(a)(1) and 310B of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1926(a)(1) and 1932).
            (4) Section 1323 of the Food Security Act of 1985 (Public 
        Law 99-198; 7 U.S.C. 1932 note).
            (5) The Act of July 2, 1926 (44 Stat. 802, chapter 725; 7 
        U.S.C. 451 et seq.).
            (6) Any other provision of law under which a program is 
        administered by the Rural Business and Cooperative Development 
        Service.

SEC. 112. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) Funding and Carryover of Funding.--Subsection (d) of section 
3205 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
5680) is amended to read as follows:
    ``(d) Funding and Carryover of Funding.--
            ``(1) Funding.--To carry out the program, the Secretary 
        shall make available funds of the Commodity Credit Corporation, 
        or an equal value of commodities owned by the Commodity credit 
        Corporation, in the amount of--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $6,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010; and
                    ``(D) $10,000,000 for each of fiscal years 2011, 
                2012, and 2013.
            ``(2) Carryover of funding.--Funds made available for the 
        program under paragraph (1) or under section 201 of the 
        Specialty Crops Competitiveness Act of 2004 (Public Law 108-
        465; 118 Stat. 3884) shall remain available until expended.''.
    (b) Flexibility.--Such section is further amended by adding at the 
end the following new subsection:
    ``(e) Flexibility.--In providing technical assistance under the 
program, the Secretary shall provide for case-by-case extensions, upon 
the approval of the Administrator of the Foreign Agricultural Service, 
of time frames provided by regulations in connection with that 
assistance.''.

SEC. 113. MARKET ACCESS PROGRAM.

    Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641(c)(1)(A)) is amended--
            (1) by striking ``and'' before ``$200,000,000''; and
            (2) by inserting ``and $350,000,000 for each of the fiscal 
        years 2008 through 2013,'' after ``2007,''.

                         TITLE II--CONSERVATION

         Subtitle A--Changes to Existing Conservation Programs

SEC. 201. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Extension.--
            (1) Funding extension and increase.--Section 1241(a) of the 
        Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by 
        striking paragraph (6) and inserting the following new 
        paragraph:
            ``(6) The environmental quality incentives program under 
        Chapter 4, using, to the maximum extent practicable, 
        $2,000,000,000 in each of fiscal years 2008 through 2013.''.
            (2) Conforming amendments.--Section 1240B of such Act is 
        amended (16 U.S.C. 3839aa-2)--
                    (A) in subsection (a)(1), by striking ``2010'' and 
                inserting ``2013''; and
                    (B) in subsection (g), by striking ``2007'' and 
                inserting ``2013''.
    (b) Purposes.--Section 1240 of such Act (16 U.S.C. 3839aa) is 
amended--
            (1) in paragraph (2), by inserting ``, conserving energy,'' 
        after ``resources''; and
            (2) in paragraph (3), by inserting ``and conserve energy,'' 
        after ``wildlife''.
    (c) Bidding Down.--Subsection (c) of section 1240B of such Act (16 
U.S.C. 3839aa-2) is amended to read as follows:
    ``(c) Bidding Down.--The Secretary shall not assign a higher 
priority to any application because the applicant is willing to accept 
a lower cost-share or incentive payment than the applicant would 
otherwise be entitled to receive. Nothing in this subsection shall be 
construed to relieve the Secretary of the obligation, when evaluating 
applications for cost-share payments and incentive payments, to 
evaluate the cost-effectiveness of the proposed conservation practices, 
systems, and approaches described in the applications and to prioritize 
the most cost-effective applications, as required by section 
1240C(1).''.
    (d) Evaluation of Applications for Cost Share Payments and 
Incentive Payments.--Section 1240C of such Act (16 U.S.C. 3839aa-3) is 
amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS FOR COSTSHARE PAYMENTS AND 
              INCENTIVE PAYMENTS.

    ``In evaluating applications for cost-share payments and incentive 
payments, the Secretary shall--
            ``(1) prioritize applications based on their overall level 
        of cost-effectiveness to ensure that the conservation 
        practices, systems, and approaches proposed are the most 
        efficient means of achieving the anticipated and desired 
        environmental benefits of the project;
            ``(2) prioritize applications based on how effectively and 
        comprehensively the project addresses the designated resource 
        concern or resource concerns;
            ``(3) reward higher levels of environmental performance, 
        such as advanced levels of management within land management 
        practices;
            ``(4) develop criteria for evaluating applications that 
        will ensure that national, State, and local conservation 
        priorities are effectively addressed; and
            ``(5) prioritize applications that will improve 
        environmental performance or resource conservation on existing 
        agricultural operations.''.
    (e) Cost Share Payment Exception.--Subsection (d)(2)(A) of section 
1240B of such Act (16 U.S.C. 3839aa-2) is amended to read as follows:
                    ``(A) Limited resource and beginning farmers.--The 
                Secretary may increase the amount provided to a 
                producer under paragraph (1) to not more than 90 
                percent if the producer is a limited resource or 
                beginning farmer or rancher, as determined by the 
                Secretary, but in no event shall the cost share payment 
                under this paragraph be less than 15 percent more than 
                the payment that the Secretary may determine under 
                paragraph (1).''.
    (f) Conservation Innovation Grants.--Section 1240H of such Act (16 
U.S.C. 3839aa-8) is amended--
            (1) in subsection (a), by striking ``may'' and inserting 
        ``shall'';
            (2) in subsection (b)--
                    (A) by striking ``may'' and inserting ``shall'';
                    (B) by striking the ``; and'' at the end of 
                paragraph (2)(B) and inserting the following new 
                subparagraph:
                    ``(C) methane digester research; and''.
                    (C) by striking ``and'' at the end of paragraph 
                (2);
                    (D) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(4) include a plan for technology transfer.''; and
            (3) by adding at the end the following new subsections:
    ``(d) Technology Transfer.--To the maximum extent practicable, the 
Secretary shall ensure efficient, effective transfer of innovative 
technologies and approaches demonstrated through projects that receive 
funding under this section.
    ``(e) Funding.--In addition to amounts made available under section 
1241(a)(6) to carry out this chapter, the Secretary shall use funds of 
the Commodity Credit Corporation to carry out this section in the 
following amounts:
            ``(1) 40,000,000 for fiscal year 2008.
            ``(2) 50,000,000 for fiscal year 2009.
            ``(3) 60,000,000 for fiscal year 2010.
            ``(4) 75,000,000 for each of fiscal years 2011 through 
        2013.''.
    (g) Performance Incentives for States.--Chapter 4 of subtitle D of 
title XII of such Act is amended by adding at the end the following new 
section:

``SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES.

    ``(a) High Level of Performance Bonus.--For each of fiscal years 
2008 through 2013, 10 percent of the funds made available under this 
chapter shall be reserved by the Secretary for bonus allocations to 
States that demonstrate a high level of performance in implementing the 
environmental quality incentives program.
    ``(b) Special Considerations.--In evaluating State performance 
under subsection (a), the Secretary shall reward States that--
            ``(1) consistently meet the requirements of section 1240C 
        in evaluating offers and payments;
            ``(2) dedicate a portion of their annual environmental 
        quality incentives program allocation to multi-producer 
        cooperative efforts to address specific resource concerns;
            ``(3) collaborate with other Federal and State agencies, 
        local governments, educational institutions, and for-profit and 
        nonprofit organizations to monitor and evaluate the 
        environmental outcomes associated with implementation of the 
        environmental quality incentives program;
            ``(4) demonstrate effective and efficient program delivery, 
        including the provision of adequate technical assistance to all 
        program participants through appropriate staffing and through 
        cooperation with other Federal, State, Tribal, and local 
        agencies, for-profit and nonprofit organizations, and 
        individuals with demonstrated expertise in the planning and 
        implementation of conservation practices, systems, and 
        approaches;
            ``(5) support and encourage innovative approaches to 
        addressing resource concerns;
            ``(6) effectively leverage Federal funding with local and 
        State matching funds; and
            ``(7) demonstrate effective outreach and innovative 
        approaches to reaching and serving beginning farmers and 
        ranchers, limited-resource producers, and operators with lower 
        rates of historical participation in Federal farm and 
        conservation programs.''.

SEC. 202. DELIVERY OF TECHNICAL ASSISTANCE.

    (a) Subsection (a)(2) of section 1242 of the Food Security Act of 
1985 (16 U.S.C. 3842) is amended to read as follows:
            ``(2) at the option of the producer, through a payment, as 
        determined by the Secretary, to an approved third party or 
        technical service provider, if available.''.
    (b) Subsection (b)(1)(B) of section 1242 of the Food Security Act 
of 1985 (16 U.S.C. 3842) is amended to read as follows:
                    ``(B) establishing the amounts and methods for 
                payments for that assistance, provided that payment 
                rates reflect reasonable market conditions for the 
                region in which the assistance would be provided.''.
    (c) Subsection (b)(3) of section 1242 of the Food Security Act of 
1985 (16 U.S.C. 3842) is amended to read as follows:
            ``(3) Competitive bidding.--The Secretary may accept bids 
        from and enter into annual or multi-year contracts and 
        agreements with approved third parties to provide technical 
        assistance to producers eligible for assistance under this 
        title.''.
    (d) Subsection (b)(4) of section 1242 of the Food Security Act of 
1985 (16 U.S.C. 3842) is amended by striking ``Secretary may request'' 
and inserting ``Secretary shall, to the maximum extent practicable, 
request''.
    (e) Subsection (b)(1) of section 1241 of the Food Security Act of 
1985 (16 U.S.C. 3841) is amended to read as follows:
            ``(1) shall be available for the provision of technical 
        assistance for the programs for which funds are made available 
        beginning with the time that the producer submits a bona fide 
        application for assistance under that program; and''.

SEC. 203. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) Establishment of Grant Program.--Subtitle D of title XII of the 
Food Security Act of 1985 is amended by adding at the end the following 
new chapter:

      ``CHAPTER 6--COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE

``SEC. 1240W. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Grants and Agreements.--The Secretary shall make grants and 
enter into agreements for not shorter than 2-year or longer than 5-year 
terms with eligible entities specified in subsection (c) to 
preferentially enroll producers in 1 or more of the programs specified 
in subsection (b) to carry out special projects and initiatives through 
which multiple producers and other interested persons cooperate to 
address specific resources of concern related to agricultural 
production on a local, State, or regional scale.
    ``(b) Covered Programs.--The conservation programs referred to in 
subsection (a) are the following:
            ``(1) Conservation reserve program, but only the continuous 
        signup portion of the program.
            ``(2) Conservation reserve enhancement program.
            ``(3) Environmental quality incentives program.
            ``(4) Farmland protection program.
            ``(5) Grassland reserve program.
            ``(6) Ground and surface water conservation program.
            ``(7) Wetland reserve program.
            ``(8) Wildlife habitat incentive program.
    ``(c) Eligible Partners.--Grants may be made or agreements may be 
entered into under this section with any of the following (or a 
combination thereof):
            ``(1) States and agencies of States.
            ``(2) Political subdivisions of States, including State-
        sponsored conservation districts.
            ``(3) Indian tribes.
            ``(4) Nongovernmental organizations and associations, 
        including producer associations, farmer cooperatives, extension 
        associations, and conservation organizations with a history of 
        working cooperatively with producers to effectively address 
        resource concerns related to agricultural production, as 
        determined by the Secretary.
    ``(d) Applications.--
            ``(1) Competitive process.--The Secretary shall establish a 
        competitive process for considering applications for grants or 
        agreements under this section consistent with the evaluation 
        criteria listed in subsection (e).
            ``(2) Program allocation.--Applications shall include--
                    ``(A) specification of the amount of funding or 
                acres, or both, of 1 or more covered programs specified 
                in subsection (b) proposed to be allocated to carry out 
                the special project or initiative; and
                    ``(B) a schedule for utilization of funding or 
                acres over the life of the proposed project or 
                initiative.
    ``(e) Evaluation Criteria.--In evaluating applications for grants 
or agreements under this section the Secretary shall consider the 
extent to which--
            ``(1) preferential enrollment in the covered programs 
        specified in the application will effectively address the 
        environmental objectives established for the special project or 
        initiative; and
            ``(2) the special project or initiative covered by the 
        application--
                    ``(A) enjoys local and regional support from 
                producers and other interested persons, including 
                governmental and nongovernmental organizations with 
                appropriate expertise on the issues the project or 
                initiative seeks to address;
                    ``(B) includes clear environmental objectives and a 
                high likelihood of success;
                    ``(C) includes a well defined project or initiative 
                plan that identifies sensitive areas requiring 
                treatment and prioritizes conservation systems, 
                practices, and activities needed to achieve 
                environmental objectives;
                    ``(D) promises adequate and coordinated 
                participation to achieve the objectives of the project 
                or initiative;
                    ``(E) coordinates integration of local, State, and 
                Federal efforts to make the best use of available 
                resources and maximize cost-effective investments;
                    ``(F) leverages financial and technical resources 
                from sources other than the programs authorized by this 
                subtitle, including financial and technical resources 
                provided by Federal and State agencies, local 
                governments, nongovernmental organizations and 
                associations, and other private sector entities;
                    ``(G) describes how all necessary technical 
                assistance will be provided to each producer 
                participating in the project or initiative, including 
                cost estimates for technical assistance and whether 
                such assistance will be provided by technical service 
                providers;
                    ``(H) describes how the administrative costs of the 
                project or initiative will be minimized;
                    ``(I) addresses a local, State, regional, or 
                national environmental priority or priorities, with 
                particular emphasis on any priority for which there is 
                an existing State or federally approved plan in place 
                for addressing that priority;
                    ``(J) includes a plan to evaluate progress and 
                measure results; and
                    ``(K) clearly demonstrates that enrollment of 
                producers in covered programs will be consistent with 
                the purposes and policies of each individual program, 
                as established in statute, rules and regulations, and 
                program guidance promulgated by implementing agencies.
    ``(f) Priorities.--To the maximum extent practicable, consistent 
with the requirements of subsection (d), the Secretary shall ensure 
that, each fiscal year, grants are awarded and agreements are entered 
into under this section to support projects and initiatives that 
collectively address the resource concerns facing producers, ranchers, 
and small private forest landowners, including specifically projects 
and initiatives that are designed--
            ``(1) to achieve improvements in water quality in 
        watersheds impacted by agriculture, particularly by increasing 
        the participation of producers in implementing best management 
        practices in a watershed or developing environmentally and 
        economically viable alternative uses for manure and litter;
            ``(2) to achieve improvements in air quality in a 
        geographical area where agricultural operations impact air 
        quality, especially an area that, as determined by the 
        Administrator of the Environmental Protection Agency, is a non-
        attainment area with respect to any of the national ambient air 
        quality standards promulgated by the Administrator under 
        section 109 of the Clean Air Act (42 U.S.C. 7409);
            ``(3) to conserve water for environmental purposes, such as 
        enhanced in stream flows or aquifer recharge in regions, 
        States, or local areas where water quantity is a concern;
            ``(4) to assist in the recovery of Federal or State-listed 
        endangered species or species of special concern or to further 
        the goals and objectives of a State's comprehensive wildlife 
        conservation plan through the cooperative efforts of multiple 
        producers;
            ``(5) to control invasive species on rangeland or other 
        agricultural land through the cooperative efforts of multiple 
        producers in a geographical area;
            ``(6) to address a specific resource of concern or set of 
        concerns on private, non-industrial forest land;
            ``(7) to reduce losses of pesticides to the environment by 
        engaging multiple producers in a geographic area in adoption of 
        integrated pest management practices and approaches; and
            ``(8) to keep working farms and ranches facing development 
        pressures in agricultural use.
    ``(g) Cost Share.--
            ``(1) Maximum; exceptions.--The Secretary shall not require 
        more than 25 percent of the cost of a project or initiative 
        supported under a grant or agreement entered into under this 
        section to come from non-Federal sources. However, the 
        Secretary may award more points to projects or initiatives 
        offering to cover a higher percentage of the cost of the 
        project or initiative from non-Federal sources.
            ``(2) In-kind contributions.--If the Secretary establishes 
        a cost-share requirement for a project or initiative, the 
        Secretary shall allow the use of in-kind contributions to meet 
        that requirement.
    ``(h) Funding.--
            ``(1) Set-aside.--Of the funds provided each fiscal year to 
        implement the programs specified in subsection (b), the 
        Secretary shall reserve the following percentages to ensure an 
        adequate source of funds for grants and agreements entered into 
        under this section:
                    ``(A) 5 percent for fiscal year 2008;
                    ``(B) 10 percent for fiscal year 2009;
                    ``(C) 15 percent for fiscal year 2010; and
                    ``(D) 20 percent for each of fiscal years 2011 
                through 2013.
            ``(2) Allocation to states.--The Secretary shall allocate 
        to States 75 percent of the funds reserved under paragraph (1) 
        for a fiscal year to allow State Conservationists, with the 
        advice of State technical committees, to select projects and 
        initiatives for funding under this section at the State level. 
        The allocation shall be made on a similar basis as what would 
        have been the case under the covered programs identified in 
        subsection (b).''.
    (b) Conforming Repeal.--Section 1243 of the Food Security Act of 
1985 (16 U.S.C. 3843) is amended by striking subsection (f).

SEC. 204. CONSERVATION LOAN GUARANTEE PROGRAM.

    Subtitle A of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1921-1936a) is amended by inserting after section 304 the 
following:

``SEC. 304A. CONSERVATION LOAN GUARANTEE PROGRAM.

    ``(a) In General.--The Secretary may provide a loan guarantee, an 
interest subsidy, or both, to enable an eligible borrower to obtain a 
qualified conservation loan.
    ``(b) Definitions.--In this section:
            ``(1) Eligible borrower.--The term `eligible borrower' 
        means a farmer, rancher, farm cooperative, private domestic 
        corporation, partnership, joint operation, trust, or limited 
        liability company, that is engaged primarily and directly in 
        agricultural production in the United States.
            ``(2) Qualified conservation loan.--The term `qualified 
        conservation loan' means a loan that meets the following 
        requirements:
                    ``(A) Purpose.--The loan proceeds are required to 
                be used to cover the costs to the borrower of carrying 
                out a qualified conservation project.
                    ``(B) Principal amount.--The principal amount of 
                the loan is not more than $1,000,000.
                    ``(C) Repayment period.--The loan repayment period 
                shall not exceed 10 years.
                    ``(D) No repayment required in first year.--The 
                lender is prohibited from requiring any part of the 
                loan to be repaid in the 1-year period that begins with 
                the date of the closing of the loan.
                    ``(E) No loan forgiveness.--The lender is 
                prohibited from forgiving any part of the loan.
                    ``(F) Limited processing fee.--The total of all 
                processing fees charged with respect to the loan does 
                not exceed such amount as shall be prescribed by the 
                Secretary.
            ``(3) Qualified conservation project.--The term `qualified 
        conservation project' means, with respect to an eligible 
        borrower, conservation measures included in a conservation plan 
        for a farming or ranching operation of the borrower, 
        including--
                    ``(A) the installation of conservation structures, 
                including terraces, sod waterways, permanently 
                vegetated stream borders and filter strips, windbreaks 
                (tree or grass), shelter belts, and living snow fences, 
                if all plantings consist of vegetation appropriate to 
                the locale;
                    ``(B) the establishment of forest cover for 
                sustained yield timber management, erosion control, or 
                shelter belt purposes, if the forest cover is 
                appropriate to the locale;
                    ``(C) the installation of water conservation 
                measures;
                    ``(D) the installation of waste management systems;
                    ``(E) the establishment or improvement of permanent 
                pasture;
                    ``(F) the payment of costs of complying with 
                section 1212 of the Food Security Act of 1985;
                    ``(G) other purposes consistent with the 
                conservation plan;
                    ``(H) any conservation project or practice, as 
                described by technical guides and handbooks issues by 
                the Natural Resources Conservation Service; or
                    ``(I) emerging conservation practices, techniques, 
                or technologies, as approved by the Secretary.
    ``(c) Limitations Applicable to Loan Guarantees.--
            ``(1) Limitation on amount of guarantee.--The portion of a 
        loan that the Secretary may guarantee under this section shall 
        be not less than 80 percent and not more than 90 percent of the 
        principal amount of the loan.
            ``(2) Limitation on total amount outstanding.--The 
        aggregate principal amount of outstanding loans guaranteed by 
        the Secretary under this section shall not exceed 
        $1,000,000,000.
    ``(d) Limitation on Amount of Interest Subsidy.--The interest 
subsidy which the Secretary may provide under this section with respect 
to a loan shall result in a reduction of the interest rate agreed upon 
by the borrower and the lender (but to not less than zero) by--
            ``(1) 500 basis points, if the principal amount of the loan 
        is less than $100,000;
            ``(2) 400 basis points, if the principal amount of the loan 
        is not less than $100,000 and is less than $500,000; and
            ``(3) 300 basis points, in any other case.
    ``(e) Administrative Provisions.--
            ``(1) Authority to collect processing fee.--The Secretary 
        may assess a fee to cover the cost of processing an application 
        under this section equal to not more than 1 percent of the 
        principal amount of the loan sought by the applicant, as 
        described in the application.
            ``(2) Provision of financial information.--An applicant for 
        a loan guarantee or interest subsidy under this section shall 
        provide the Secretary with such financial information as may be 
        required by the Secretary, in the manner generally required by 
        commercial agricultural lenders in the geographical area where 
        the farming or ranching operation of the applicant is located.
            ``(3) Appraisal.--The Secretary may require that an 
        appraisal made in connection with an application for a loan 
        guarantee or interest subsidy under this section be conducted 
        by a specialized appraiser that uses standards similar to the 
        standards used for similar purposes in the private sector, as 
        determined by the Secretary.
            ``(4) Approval of application.--The Secretary shall not 
        approve an application submitted pursuant to this section, 
        unless the Natural Resources Conservation Service has 
        determined that--
                    ``(A) the loan sought by the applicant, as 
                described in the application, would be a qualified 
                conservation loan; and
                    ``(B) the project for which the loan is sought is 
                likely to result in a net benefit to the environment.
            ``(5) Deadline for decision on application.--Within 45 
        business days after the receipt of an application for 
        assistance under this section, the Secretary shall transmit to 
        the applicant the decision of the Secretary to approve or 
        disapprove the application, to the extent practicable.
            ``(6) Equitable distribution of loan guarantees and 
        interest subsidies.--The Secretary shall ensure that loan 
        guarantees and interest subsidies under this section are 
        equitably distributed among agricultural producers according to 
        the scale of the operations of the producers that submit 
        applications in any year.
    ``(f) Relationship With Other Conservation Programs.--Neither the 
application for, nor the receipt of, a loan guarantee or an interest 
subsidy under this section shall affect the eligibility of the 
recipient for assistance under title XII of the Food Security Act of 
1985 or the Watershed Protection and Flood Prevention Act.
    ``(g) Appropriations.--For each of fiscal years 2008 through 2013, 
the Secretary shall use such funds of the Commodity Credit Corporation 
as are necessary to carry out this section.''.

SEC. 205. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    Subtitle D of title XII of the Food Security Act of 1985 is amended 
by adding at the end of chapter 5 the following new section:

``SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    ``(a) In General.--The Secretary shall establish a pilot program to 
undertake comprehensive conservation planning to assist producers prior 
to making application for assistance under any of the conservation 
programs authorized by this subtitle.
    ``(b) Conservation Planning Assistance.--The Secretary shall 
undertake 4 pilot projects in the locations specified in paragraph (c) 
to assist producers by making a comprehensive assessment of the 
resource concerns, needs, and alternative solutions for the producer's 
entire operation, as determined by the Secretary, following the 
procedures in the Natural Resources Conservation Service conservation 
planning manual. The assistance to producers shall be provided by the 
Secretary directly or through third party providers certified by the 
Secretary, and shall not be at the expense of the producer. The result 
of the comprehensive planning assistance shall be provided to the 
producer to enable informed choices on the type of financial assistance 
available through subtitle D conservation programs administered by the 
Secretary that would most effectively address the resource needs of the 
operation consistent with the environmental goals for the area in which 
the operation is located.
    ``(c) Pilot Projects.--Pilot projects in comprehensive conservation 
planning shall be undertaken in the following locations:
            ``(1) Chesapeake Bay watershed.
            ``(2) Great Lakes Basin.
            ``(3) Connecticut River Valley Watershed.
            ``(4) Highlands Region, as defined in section 3 of Public 
        Law 108-421.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall provide $40 million each of fiscal years 2008 
through 2013 to carry out the pilot comprehensive conservation planning 
program authorized by this section. The funds shall be equitably 
divided, between each of the 4 pilot projects.
    ``(e) Report.--The Secretary shall conduct an assessment of the 
effectiveness of the comprehensive conservation planning pilot and 
publish a report, available to the public, of the results of the 
assessment. Such assessments shall be undertaken in the second year and 
the fifth year of the pilot program.''.

SEC. 206. CONSERVATION APPLICATION PROCESS.

    Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended by adding at the end of section 1244 the 
following:
    ``(c) In General.--In carrying out any of the conservation programs 
administered by the Natural Resources Conservation Service, the 
Secretary shall establish a single, simplified application for eligible 
entities to use in initially requesting assistance. The Secretary shall 
insure that conservation program participant need not be required to 
provide information duplicate to the information and resources already 
available to the Secretary, for that applicant and for that specific 
operation, and that the application process imposed on conservation 
program participants be streamlined to minimize complexity and 
redundancy.
            ``(1) Review of application process.--The Secretary shall 
        review the conservation application process and the forms and 
        related mechanisms used to receive assistance requests from 
        eligible program participants. This review shall be to 
        determine what information the participant is actually required 
        to be submitted during the application process, including--
                    ``(A) identification information for the applicant;
                    ``(B) identification and location information for 
                the land parcel or tract of concern;
                    ``(C) a general statement of the applicant's need 
                for or resource concern on the land parcel or tract; 
                and
                    ``(D) the minimum amount of other information the 
                Secretary deems essential for the applicant himself or 
                herself to provide.
            ``(2) Revision and streamline.--The Secretary shall carry 
        out a revision of the application forms and processes for 
        conservation programs covered in this subsection to enable 
        utilization of information technology as an avenue to 
        incorporate appropriate data and information concerning the 
        conservation needs and solutions appropriate for the land area 
        identified by the applicant. The revision shall seek to 
        streamline the application process to minimize the burden 
        placed on the applicant.
            ``(3) Conservation program application.--At the time that 
        the applicant's needs are adequately assessed by the Secretary, 
        or through a third party provider under section 1242, in order 
        to determine the programs covered under title XII that best 
        matches the need of the applicant, with the approval of the 
        applicant, the Secretary may convert the initial application 
        into the specific application for assistance for the program of 
        choice. To the maximum extent practical, the specific 
        application for conservation program assistance shall be 
        carried out by the Secretary by requesting only that specific 
        further information from the applicant that is not already 
        available to the Secretary.
            ``(4) Implementation and notification.--Not later than 12 
        months after the date of enactment of this act, the Secretary 
        shall complete the requirements of this subsection and shall 
        provide a written notification of such completion to the 
        Committees on Agriculture of the House and Senate.''.

SEC. 207. MINIMUM BASE ALLOCATION TO STATES IN FUNDING OF CERTAIN 
              DEPARTMENT OF AGRICULTURE CONSERVATION PROGRAMS.

    Subsection (d) of section 1241 of the Food Security Act of 1985 (16 
U.S.C. 3841) is amended to read as follows:
    ``(d) Minimum Base Allocation to States for Certain Conservation 
Programs.--In allocating funds to States to implement the conservation 
programs under subtitle D (excluding the conservation reserve program 
under subchapter B of chapter 1, the wetlands reserve program under 
subchapter C of chapter 1, the conservation security program under 
subchapter A of chapter 2, and the grassland reserve program under 
subchapter C of chapter 2), the Secretary shall ensure that each State 
receives, at a minimum, $15,000,000 for each of the fiscal years 2007 
through 2013. Any award from the national level under chapter 6 to a 
project in or adjacent to a State shall not be counted as part of the 
minimum base allocation to such State under this subsection''.

SEC. 208. CONSERVATION SECURITY PROGRAM.

    It is the sense of Congress that the conservation security program 
established under subchapter A of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) should--
            (1) be fully funded and implemented on a nationwide basis;
            (2) simplify and streamline payments and eligibility 
        requirements to increase transparency, clarity, and ease of use 
        by producers;
            (3) create a better balance between rewards for current 
        stewardship and incentives for new conservation;
            (4) emphasize payments based on management intensity, that 
        is, the level of treatment, as well as the breadth of resource 
        concerns addressed;
            (5) reward producers for addressing the most important 
        resources of concern as determined by States;
            (6) provide greater flexibility to States (State technical 
        committees) to determine and rank priority resource concerns;
            (7) provide adequate technical assistance to ensure that 
        there is the capacity to enroll participants, provide on-site 
        assessment and planning, and to facilitate timely contract 
        renewals and modifications;
            (8) provide a predictable and reliable stream of revenue 
        based on environmental measures;
            (9) be universally available and adaptable to all types of 
        farm operations in all regions of the country;
            (10) expand eligibility to include nonindustrial private 
        forested land, even if not incidental to an agricultural 
        operation;
            (11) provide a minimum annual base payment;
            (12) ensure program complements and is run in coordination 
        with other NARCS working lands conservation programs;
            (13) encourage payments based on carbon sequestration;
            (14) encourage environmentally-sound methods and practices 
        for the production of sustainable cellulosic bioenergy 
        feedstocks; and
            (15) ensure ``dual eligibility'' for certified organic 
        farms.

SEC. 209. REAUTHORIZATION OF AND INCREASED FUNDING FOR FARMLAND 
              PROTECTION PROGRAM.

    (a) Funding.--Paragraph (4) of subsection (a) of section 1241 of 
the Food Security Act of 1985 (16 U.S.C. 3841) is amended to read as 
follows:
            ``(4) The farmland protection program under subchapter B of 
        chapter 2, using, to the maximum extent practicable, 
        $300,000,000 in each of fiscal years 2008 through 2013.''.
    (b) Program Revisions.--Subchapter B of Chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3838h et seq.) is 
amended to read as follows:

              ``Subchapter B--Farmland Protection Program

``SEC. 1238H. DEFINITIONS.

    ``In this subchapter:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) any agency of any State or local government 
                or an Indian tribe (including a farmland protection 
                board or land resource council established under State 
                law); or
                    ``(B) any organization that--
                            ``(i) is organized for, and at all times 
                        since the formation of the organization has 
                        been operated principally for, one or more of 
                        the conservation purposes specified in clause 
                        (i), (ii), (iii), or (iv) of section 
                        170(h)(4)(A) of the Internal Revenue Code of 
                        1986;
                            ``(ii) is an organization described in 
                        section 501(c)(3) of that Code that is exempt 
                        from taxation under section 501(a) of that 
                        Code;
                            ``(iii) is described in section 509(a)(2) 
                        of that Code; or
                            ``(iv) is described in section 509(a)(3), 
                        and is controlled by an organization described 
                        in section 509(a)(2), of that Code.
            ``(2) Eligible land.--The term `eligible land' means land 
        on a farm or ranch that is--
                    ``(A) cropland;
                    ``(B) rangeland;
                    ``(C) grassland;
                    ``(D) pasture land; or
                    ``(E) forest land that is an incidental part of an 
                agricultural operation, as determined by the Secretary.
            ``(3) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(4) Qualified state or local entity.--A qualified State 
        or local entity is an eligible entity, public or private, that 
        operates a farm and ranchland protection program that has--
                    ``(A) for at least 3 calendar or fiscal years used 
                or provided public or private funds to purchase 
                perpetual conservation easements or other interests in 
                land on a cumulative total of at least 10 properties 
                that have protected the agricultural production 
                capacity and related conservation values of farm and 
                ranch land;
                    ``(B) the necessary authority under State law, as 
                well as the technical and financial capacity, to 
                monitor and enforce the terms of such conservation 
                easements or other interests in land so that their 
                purpose is carried out in perpetuity, or in the case of 
                a governmental entity, to legally require other public 
                or private holders of such easements or interests in 
                land acquired with public funding to hold, monitor and 
                enforce them in perpetuity; and
                    ``(C) financial control policies in place to assure 
                that on average the purchase price of conservation 
                easements and other interests in land does not exceed 
                their appraised fair market value.
            ``(5) Program.--The term `program' means the farmland 
        protection program established under section 1238I(a).

``SEC. 1238I. FARMLAND PROTECTION.

    ``(a) In General.--The Secretary, acting through the Natural 
Resources Conservation Service, shall establish and carry out a farm 
and ranchland protection program under which the Secretary shall 
facilitate and provide funding for the purchase of conservation 
easements or other interests in eligible land for the purpose of 
protecting the agricultural production capacity and related 
conservation values of the land by limiting incompatible 
nonagricultural uses of the land. The program shall give the highest 
priority to protecting farm and ranchland with prime, unique or other 
productive soils that are at risk of non-farm development.
    ``(b) Grants.--The Secretary, acting through the Natural Resources 
Conservation Service, shall, as the preferred method of administering 
this program, make grants to qualified State and local entities. Such 
grants shall be distributed among States based on demonstrated need for 
farm and ranch land protection and on the relative contribution of 
funds dedicated by State and local entities for this purpose. Grants 
may be made for multiple transactions without regard for whether 
pending purchase offers are outstanding, provided that all funds 
provided under this program are used to purchase conservation easements 
or other interests in land. Qualified State and local entities may use 
up to ten percent of a grant for reasonable costs of purchasing and 
enforcing conservation easements. Any funds not granted to qualified 
State or local entities under this section shall be available to other 
eligible entities as matching funds for individual purchases of 
conservation easements and other interests in land.
    ``(c) Grant Agreements.--The Secretary, acting through the Natural 
Resources Conservation Service, may enter into agreements with 
qualified State and local entities, under which such State and local 
entities may purchase conservation easements using a combination of 
their own funds and grant funds distributed by the Secretary under this 
program. Such agreements shall stipulate the terms and conditions under 
which qualified State and local entities shall use funds provided by 
the Secretary under this program, provided that under such agreements:
            ``(1) State and local entities shall be authorized to 
        determine their own criteria and priorities for purchasing 
        conservation easements and other interests in land.
            ``(2) States and local entities shall be authorized to use 
        their own terms and conditions for conservation easements and 
        other purchases of interests in land, provided that--
                    ``(A) such terms and conditions are adequate under 
                State law to achieve and permit effective enforcement 
                of the conservation purposes of such easements or other 
                interests, and
                    ``(B) the entity has in place a requirement 
                consistent with the purposes of the program regarding 
                the impervious surfaces to be allowed for any 
                conservation easement or other interest in land 
                purchased using grant funds provided through this 
                section.
            ``(3) Up to ten percent of grant funds may be used for 
        reasonable costs of purchasing and enforcing conservation 
        easements.
            ``(4) No Federal contingent right of enforcement or 
        reversionary interest in a conservation easement or other 
        purchase of an interest in land shall be required.
    ``(d) Individual Purchases.--The Secretary may enter into 
agreements with eligible entities under which the Secretary shall 
provide matching funds for the purpose of purchasing conservation 
easements or other interests of land on individual farm and ranch 
properties. The Secretary may agree to such terms as he deems 
appropriate to assure that the purpose of this program is carried out; 
provided, however, that subsection (c)(4) of this section shall apply 
to any easement held by a State or local agency, or in which a 
qualified State or local entity will hold a contingent right of 
enforcement.
    ``(e) Conservation Plan.--Notwithstanding subsection (c)(2), any 
highly erodible cropland for which a conservation easement or other 
interest is purchased under this subchapter shall be subject to the 
requirements of a conservation plan; provided, however, that for 
easements and other interests in land that are perpetual in duration, 
the Secretary may not require the conversion of the cropland to less 
intensive uses if, under such plan, soil erosion can be reduced to `T' 
or below.
    ``(f) Cost Sharing.--
            ``(1) Farmland protection.--The share of the cost provided 
        under this section for purchasing a conservation easement or 
        other interest in eligible land described in subsection (a) 
        provided under section 1241(d) shall not exceed--
                    ``(A) 50 percent of the appraised fair market value 
                of the conservation easement or other interest in 
                eligible land; or
                    ``(B) if a qualified conservation contribution, as 
                defined by section 170(h) of the Internal Revenue Code, 
                of at least 25 percent of the market value is made by 
                the landowner in connection with the purchase of a 
                conservation easement or other interest in land, two-
                thirds of the actual cost of purchasing such 
                conservation easement or other interest in land.
            ``(2) Bidding down.--If the Secretary determines that 2 or 
        more applications for the purchase of a conservation easement 
        or other interest in eligible land described in subsection (a) 
        are comparable in achieving the purposes of this section, the 
        Secretary shall not assign a higher priority to any one of 
        those applications solely on the basis of lesser cost to the 
        farmland protection program established under subsection 
        (a).''.

SEC. 210. FARMLAND PROTECTION POLICY ACT.

    Subtitle I of title XV of the Food and Agriculture Act of 1981 (7 
U.S.C. 4201 et seq.) is amended to read as follows:

              ``Subtitle I--Farmland Protection Policy Act

``SEC. 1539. SHORT TITLE.

    ``This subtitle may be cited as the `Farmland Protection Policy 
Act'.

``SEC. 1540. FINDINGS, PURPOSES, AND DEFINITIONS.

    ``(a) Congress finds that--
            ``(1) the Nation's farmland is a unique and irreplaceable 
        natural resource critical to the country's national security, 
        by providing food, fiber and renewable energy necessary for the 
        continued welfare of the people of the United States;
            ``(2) each year, a large amount of the Nation's farmland is 
        unnecessarily and irrevocably converted from actual or 
        potential agricultural use to nonagricultural use;
            ``(3) continued conversion of the Nation's farmland base to 
        nonagricultural uses may threaten the ability of the United 
        States to produce food, fiber and renewable energy in 
        sufficient quantities to meet domestic needs and the demands of 
        our export markets;
            ``(4) the extensive use of farmland for nonagricultural 
        purposes undermines the economic base of many rural areas;
            ``(5) Federal actions, in many cases, result in the 
        conversion of farmland to nonagricultural uses where 
        alternative actions are feasible;
            ``(6) the Department of Agriculture is the agency primarily 
        responsible for the implementation of Federal policy with 
        respect to United States farmland, assuring the maintenance of 
        the agricultural production capacity of the United States, and 
        has the personnel and other resources needed to implement 
        national farmland protection policy;
            ``(7) the Department of Agriculture and other Federal 
        agencies should take steps to assure that the actions of the 
        Federal Government do not unnecessarily cause United States 
        farmland to be irreversibly converted to nonagricultural uses 
        in cases in which other national interests do not override the 
        importance of the protection of farmland nor otherwise outweigh 
        the benefits of maintaining farmland resources; and
            ``(8) the Department of Agriculture and other Federal 
        agencies should be required to ensure that the actions of the 
        Federal Government do not cause permanently protected United 
        States farmland to be irreversibly converted to nonagricultural 
        uses where there are other feasible alternatives, and to 
        mitigate the loss of any such farmland if no feasible 
        alternative exists.
    ``(b) The purpose of this subtitle is to minimize the extent to 
which Federal programs contribute to the irreversible conversion of 
farmland to nonagricultural uses, and to assure to the greatest degree 
possible that Federal programs are administered in a manner that is 
compatible with State, unit of local government, and private programs 
and policies to protect farmland.
    ``(c) In this subtitle:
            ``(1) The term `farmland' includes all land defined as 
        follows:
                    ``(A) Prime farmland is land that has the best 
                combination of physical and chemical characteristics 
                for producing food, feed, fiber, forage, oilseed, and 
                other agricultural crops with minimum inputs of fuel, 
                fertilizer, pesticides, and labor, and without 
                intolerable soil erosion, as determined by the 
                Secretary. Prime farmland includes land that possesses 
                the above characteristics but is being used currently 
                to produce livestock and timber. It does not include 
                land already in or committed to urban development or 
                water storage.
                    ``(B) Unique farmland is land other than prime 
                farmland that is used for production of specific high-
                value food and fiber crops, as determined by the 
                Secretary. It has the special combination of soil 
                quality, location, growing season, and moisture supply 
                needed to economically produce sustained high quality 
                or high yields of specific crops when treated and 
                managed according to acceptable farming methods. 
                Examples of such crops include citrus, tree nuts, 
                olives, cranberries, fruits, and vegetables.
                    ``(C) Farmland, other than prime or unique 
                farmland, that is of statewide or local importance for 
                the production of food, feed, fiber, forage, oilseed or 
                energy crops, as determined by the appropriate State or 
                unit of local government agency or agencies, and that 
                the Secretary determines should be considered as 
                farmland for the purposes of this subtitle.
            ``(2) The term `State' means any of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, or any territory or 
        possession of the United States.
            ``(3) The term `unit of local government' means the 
        government of a county, municipality, town, township, village, 
        or other unit of general government below the State level, or a 
        combination of units of local government acting through an area 
        wide agency under State law or an agreement for the formulation 
        of regional development policies and plans.
            ``(4) The term `Federal program' means those activities or 
        responsibilities of a department, agency, independent 
        commission, or other unit of the Federal Government that 
        involve--
                    ``(A) undertaking, financing, or assisting 
                construction or improvement projects; or
                    ``(B) acquiring, managing, or disposing of Federal 
                lands and facilities. The term `Federal program' does 
                not include construction or improvement projects that 
                on the effective date of this subtitle are beyond the 
                planning stage and are in either the active design or 
                construction state.
            ``(5) The term `permanently protected farmland' means 
        farmland subject to a permanent conservation easement in 
        accordance with the provisions of section 170(h) of the 
        Internal Revenue Code of 1986 or held by the Federal Government 
        or any State or local unit of government.
            ``(6) The term `Secretary' means the Secretary of 
        Agriculture.

``SEC. 1541. FARMLAND PROTECTION POLICY.

    ``(a) The Department of Agriculture, in cooperation with other 
departments, agencies, independent commissions, and other units of the 
Federal Government, shall develop criteria for identifying the effects 
of Federal programs on the conversion of farmland to nonagricultural 
uses.
    ``(b) Departments, agencies, independent commissions, and other 
units of the Federal Government shall, in cooperation with the 
Department of Agriculture, use the criteria established under 
subsection (a) of this section to--
            ``(1) identify the quantity of farmland that will be 
        directly or indirectly converted through proposed Federal 
        program activities and actions under their jurisdiction; and
            ``(2) develop and implement, to the maximum extent 
        feasible, alternative actions to minimize the impact of the 
        Federal program action or activity on the conversion of 
        farmland to nonagricultural uses and ensure its compatibility 
        with State, unit of local government, and private programs and 
        policies to protect farmland.
    ``(c) Permanently protected farmland shall not be subject to 
conversion to nonagricultural uses by Federal programs unless the 
Secretary in cooperation with Federal, State, and local agencies 
determines that there is no other feasible alternative to the proposed 
Federal program activity. Where a Federal action results in the 
conversion of permanently protected farmland to nonagricultural use, 
the loss of such land shall be mitigated by the responsible Federal 
entity on a one-for-one basis in quantity and equal or greater quality.
    ``(d) Departments, agencies, independent commissions, and other 
units of the Federal Government shall provide annually to the 
Department of Agriculture the information required under subsection (b) 
of this section, which the Department of Agriculture shall make 
available to the public on an annual basis.
    ``(e) Any State, unit of local government, individual, organization 
or unit of the Federal Government aggrieved by a violation of any of 
the provisions of this subtitle shall have a civil cause of action 
against the Federal Department, agency, independent commission or other 
unit of the Federal Government committing the violation.
    ``(f) The Department of Agriculture may make available to States, 
units of local government, individuals, organizations, and other units 
of the Federal Government information useful in restoring, maintaining, 
and improving the quantity and quality of farmland.

``SEC. 1542. EXISTING POLICIES AND PROCEDURES.

    ``(a) Each department, agency, independent commission, or other 
unit of the Federal Government, with the assistance of the Department 
of Agriculture, shall review current provisions of law, administrative 
rules and regulations, and policies and procedures applicable to it to 
determine whether any provision thereof will prevent such unit of the 
Federal Government from taking appropriate action to comply fully with 
the provisions of this subtitle.
    ``(b) Each department, agency, independent commission, or other 
unit of the Federal Government, with the assistance of the Department 
of Agriculture, shall, as appropriate, bring its programs, authorities, 
and administrative activities into conformity with the purpose and 
policy of this subtitle.

``SEC. 1543. TECHNICAL ASSISTANCE.

    ``The Secretary shall provide technical assistance to States, units 
of local government, nonprofit organizations and the general public to 
assist in the development of programs or policies to limit the 
conversion of farmland to nonagricultural uses.

``SEC. 1544. FARMLAND RESOURCE INFORMATION.

    ``(a) The Secretary, through existing agencies or interagency 
groups, and in cooperation with nonprofit organizations or the 
cooperative extension services of the States, shall design and 
implement educational programs and materials emphasizing the importance 
of productive farmland to the Nation's well-being and distribute 
educational materials through communications media, schools, groups, 
and other Federal agencies.
    ``(b) The Secretary shall designate one or more farmland 
information centers to provide technical assistance and serve as 
central depositories and distribution points for information on 
farmland issues. Information provided by the center(s) shall include, 
but not be limited to, on-line access to data on land cover and use 
changes and trends, and to literature, laws, historical archives, 
policies, programs, and innovative actions or proposals by local and 
State governments or nonprofit organizations related to farmland 
protection and may include test plots, evaluation plots, and mobile 
learning centers.
    ``(c) Funding for subsection (b) of this section shall be provided 
through the Farm and Ranch Lands Protection Program. Such funding shall 
not exceed one-half of 1 percent of annual appropriations, but no less 
than $400,000 annually. Federal funding for the farmland information 
center or centers shall be matched with non-Federal funds, through cash 
or in-kind contributions.

``SEC. 1545. GRANTS, CONTRACTS.

    ``With the exception of sections 1544 and 1548, the Secretary shall 
carry out the purposes of this subtitle with existing facilities and 
funds otherwise available, through the use of grants, contracts, or 
such other means as the Secretary deems appropriate.

``SEC. 1546. REPORT.

    ``On January 1, 1987, and at the beginning of each subsequent 
calendar year, the Secretary of Agriculture shall report to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate and the 
Committee on Agriculture of the House of Representatives on the 
progress made in implementing the provisions of this subtitle. Such 
report shall include--
            ``(1) data on the conversion of farmland to nonagricultural 
        uses at the national, State, and, as available, local level;
            ``(2) information on the effects of Federal programs, 
        authorities, and administrative activities with respect to the 
        protection of United States farmland; and
            ``(3) the results of the data collected and reviews and 
        actions taken as required under sections 1541 and 1542.

``SEC. 1547. STATEMENT OF LIMITATION.

    ``(a) This subtitle does not authorize the Federal Government in 
any way to regulate the use of private or non-Federal land, or in any 
way affect the property rights of owners of such land.
    ``(b) None of the provisions or other requirements of this subtitle 
shall apply to the acquisition or use of farmland for national defense 
purposes during a national emergency.

``SEC. 1548. NATIONAL AGRICULTURAL LANDS COMMISSION.

    ``(a) A national commission shall be established to undertake a 
comprehensive study of the importance of protecting an adequate 
agricultural land base to the Nation's homeland security, food 
security, energy security, environmental quality and quality of life, 
and to develop recommendations by which the Federal Government can 
encourage the retention of agricultural land at the national, State and 
local level.
    ``(b) In undertaking the study, the commission shall--
            ``(1) identify the quality, quantity and location of the 
        Nation's agricultural lands;
            ``(2) identify and define the effects of urbanization, 
        industrial and commercial development and other nonagricultural 
        activities on the Nation's agricultural land base;
            ``(3) identify and define the implications for the Nation's 
        agricultural land base of the following:
                    ``(A) Global and national population trends and the 
                projected international and domestic demand for food 
                and energy production from United States agricultural 
                lands.
                    ``(B) National land use trends and competing 
                demands on United States agricultural lands as a source 
                for housing, industrial and commercial development, for 
                food, fiber and energy production, and for recreational 
                and environmental amenities.
                    ``(C) National environmental trends and the 
                capacity of United States agricultural lands to 
                contribute to improvements in water quality and 
                quantity, air quality and carbon sequestration.
                    ``(D) Agricultural land loss by region and its 
                projected impact on the region's food and energy 
                security, natural resources and economy.
                    ``(E) Land ownership patterns and their impact on 
                the security of the Nation's agricultural land base.
                    ``(F) State and local programs, policies and 
                actions affecting or supporting agricultural land 
                availability.
                    ``(G) Federal programs, policies and actions 
                affecting or supporting agricultural land availability; 
                and
            ``(4) explore ways by which the Federal Government can 
        encourage retention of the Nation's agricultural land base at 
        the Federal, State, and local level.
    ``(c) The Commission shall be composed of the following:
            ``(1) Six members from the House Committee on Agriculture 
        or their designee.
            ``(2) Six members from the Senate Committee on Agriculture, 
        Nutrition and Forestry or their designee.
            ``(3) Eleven members appointed by the President, including 
        the Secretary of Agriculture, who shall act as Chair. These 
        members shall be representative of local and State governments, 
        academia, nonprofit conservation organizations, and farm, 
        forest and ranch interests.
    ``(d) No later than 18 months from the date of enactment, the 
Commission shall submit an interim report to the President and to 
Congress containing its analysis of existing data and the need for any 
additional information.
    ``(e) No later than 36 months from the date of enactment, the 
Commission shall submit a final report to the President and to Congress 
with its findings and recommendations.
    ``(f) There are authorized to be appropriated for the purpose of 
funding the Commission $1,000,000 annually for fiscal years 2009, 2010 
and 2011.
    ``(g) The Commission shall terminate on September 30, 2011.''.

SEC. 211. DEBT FOR AGRICULTURAL EASEMENTS.

    Subchapter B of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended by renumbering 
section 1238J to be 1238K and adding after section 1238I the following 
new section:

``SEC. 1238J. DEBT FOR AGRICULTURAL EASEMENTS PROGRAM.

    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `governmental entity' means any agency of 
        the United States, a State, or a unit of local government of a 
        State.
            ``(2) The terms `highly erodible land' and `wetland' have 
        the meanings, respectively, that such terms are given in 
        section 1201 of the Food Security Act of 1985.
            ``(3) The term `wildlife' means fish or wildlife as defined 
        in section 2(a) of the Lace Act Amendments of 1981 (16 U.S.C. 
        3371(a)).
            ``(4) The term `recreational purposes' includes hunting.
            ``(5) The term `conservation purposes' shall mean the 
        permanent protection of agricultural land for continued 
        agricultural use.
    ``(b) Contracts on Loan Security Properties.--Subject to subsection 
(c) of this section--
            ``(1) the Secretary may enter into a contract related to 
        real property for conservation, recreation, or wildlife 
        purposes;
            ``(2) the Secretary shall offer to enter into a contract 
        related to real property for conservation purposes if--
                    ``(A) such property secures any delinquent loan 
                made under any law administered by the Secretary and 
                held by the Secretary;
                    ``(B) such property includes 50 percent or greater 
                prime or unique farmland or farmland of statewide 
                importance, as determined by the Secretary; and
                    ``(C) such property is reasonably likely to be 
                developed for non-agricultural purposes in the absence 
                of such a contract, as determined by the Secretary.
    ``(c) Limitations.--The Secretary may enter into a contract under 
subsection (b) of this section if--
            ``(1) such property is prime or unique farmland, farmland 
        of statewide importance, wetland, upland, or highly erodible 
        land;
            ``(2) such property is determined by the Secretary to be 
        suitable for the purposes involved; and
            ``(3)(A) such property secures any loan made under any law 
        administered by the Secretary and held by the Secretary; and
            ``(B) such contract better enables a qualified borrower to 
        repay the loan in a timely manner, as determined by the 
        Secretary.
    ``(d) Terms and Conditions.--The terms and conditions specified in 
each such contract shall--
            ``(1) specify the purposes for which such real property may 
        be used;
            ``(2) identify the conservation measures to be taken, and 
        the agricultural, recreational and/or wildlife uses to be 
        allowed, with respect to such real property; and
            ``(3) require such owner to permit the Secretary, and any 
        person or governmental entity designated by the Secretary, to 
        have access to such real property for the purpose of monitoring 
        and enforcing compliance with such contract.
    ``(e) Purchase; Limitation Upon Cancellation or Prepayment.--
            ``(1) Subject to paragraph (2), the Secretary may reduce or 
        forgive the outstanding debt of a borrower--
                    ``(A) in the case of a borrower to whom the 
                Secretary has made one or more outstanding loans under 
                laws administered by the Secretary, by canceling that 
                part of the aggregate amount of such outstanding loans 
                that bears the same ratio to such aggregate amount as 
                the number of acres of the real property of the 
                borrower that are subject to the contract bears to the 
                aggregate number of acres securing such loans; or
                    ``(B) in any other case, by treating as prepaid 
                that part of the principal amount of a new loan to the 
                borrower issued and held by the Secretary under a law 
                administered by the Secretary that bears the same ratio 
                to such principal amount as the number of acres of the 
                real property of the borrower that are subject to the 
                contract bears to the aggregate number of acres 
                securing the new loan.
            ``(2) The amount so canceled or treated as prepaid pursuant 
        to paragraph (1) shall not exceed--
                    ``(A) in the case of a delinquent loan, the value 
                of the land on which the contract is entered into or 
                the difference between the amount of the outstanding 
                loan secured by the land and the value of the land, 
                whichever is greater;
                    ``(B) in the case of a nondelinquent loan, 33 
                percent of the amount of the loan secured by the land; 
                or
                    ``(C) for any loan, the difference between the fair 
                market value of the land on which the contract is 
                entered into as reduced by the terms of the contract 
                and the fair market value of such land unrestricted by 
                the contract.
    ``(f) Consultations With Fish and Wildlife Service.--If the 
Secretary elects to use the authority provided by this section to enter 
into contracts for recreation or wildlife purposes, the Secretary shall 
consult with the Secretary of the Interior for purposes of--
            ``(1) selecting real property in which the Secretary may 
        enter into contracts for recreation or wildlife purposes under 
        this section;
            ``(2) formulating the terms and conditions of such 
        contracts; and
            ``(3) enforcing such contracts.
    ``(g) Enforcement.--The Secretary, and any person or governmental 
entity designated by the Secretary, may enforce a contract entered into 
by the Secretary under this section.''.

SEC. 212. PLANNING FOR AGRICULTURE GRANTS.

    Subtitle F of title XII of the Food Security Act of 1985 (16 U.S.C. 
3841 et seq.) is amended by adding after section 1256 the following new 
section:

``SEC. 1257. GRANTS TO PROMOTE PLANNING FOR AGRICULTURE.

    ``(a) In General.--To encourage State and local efforts to retain 
farmland and promote food security, the Secretary shall provide 
competitive grants to State and local units of government to carry out 
planning projects for the purposes described in subsection (b).
    ``(b) Project Requirements.--
            ``(1) Projects eligible to receive planning assistance 
        under this subsection shall be projects designed to support--
                    ``(A) farm and ranchland protection and transition;
                    ``(B) agricultural economic development; or
                    ``(C) local and regional food processing and other 
                agricultural infrastructure.
            ``(2) A project will receive priority for funding if the 
        project--
                    ``(A) addresses more than one of the elements in 
                subsection (b)(1)); or
                    ``(B) coordinates activities pursuant to one or 
                more of the elements in subsection (b)(1) among 
                different levels of government.
    ``(c) Grants.--
            ``(1) In general.--From amounts made available to carry out 
        this subsection, the Secretary shall make grants to State and 
        local units of government to assist them in developing plans 
        that assess needs and identify implementation strategies for 
        furthering any of the purposes described in paragraph (2)(a).
            ``(2) Maximum amount.--The maximum amount of a grant 
        provided under this subsection shall be $100,000.
            ``(3) Matching funds requirements.--The Federal share of 
        any project that receives funding under this subsection may not 
        exceed 50 percent of the total cost of the project.
            ``(4) Term.--The term of a grant made under this subsection 
        may not exceed 2 years.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $20,000,000 for each of fiscal years 2008 through 2013 to 
carry out this subsection, to remain available until expended.''.

SEC. 213. EXCLUSION OF PAYMENTS UNDER DEPARTMENT OF AGRICULTURE 
              CONSERVATION PROGRAMS FROM ADJUSTED GROSS INCOME 
              LIMITATION.

    (a) Exclusion.--Subsection (b)(2) of section 1001D of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a) is amended by striking 
subparagraph (C).
    (b) Duration of Adjusted Gross Income Limitation.--Such section is 
further amended by striking subsection (e).

SEC. 214. REAUTHORIZATION OF AND INCREASED FUNDING FOR WILDLIFE HABITAT 
              INCENTIVE PROGRAM.

    (a) Extension and Funding.--Section 1241(a)(7) of the Food Security 
Act of 1985 (16 U.S.C. 3841(a)(7)) is amended by striking subparagraphs 
(A) through (D) and inserting the following new subparagraphs:
                    ``(A) $100,000,000 in fiscal year 2008;
                    ``(B) $140,000,000 in fiscal year 2009;
                    ``(C) $200,000,000 in each of fiscal years 2010 and 
                2011; and
                    ``(D) $300,000,000 in each of fiscal years 2012 and 
                2013.''.
    (b) Incentive Payments for Agreements Benefitting Listed Species.--
Section 1240N of such Act (16 U.S.C. 3839bb-1) is amended by adding at 
the end the following new subsection:
    ``(d) Incentive Payments for Certain Agreements and Applications.--
In a case in which the Secretary enters into an agreement or contract 
to protect or restore habitat for a federally or State-listed 
endangered, threatened, or candidate species or for applications that 
further the goals and objectives of a State's comprehensive wildlife 
conservation plan, the Secretary may provide incentive payments to 
landowners to protect or restore the habitat, including the cost of 
management activities needed during the term of the agreement or 
contract.''.

SEC. 215. CONSERVATION RESERVE PROGRAM.

    (a) Extension.--
            (1) Funding extension.--Section 1241(a) of the Food 
        Security Act of 1985 (16 U.S.C. 3841(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``2007'' and inserting ``2013''; and
                    (B) in paragraph (1), by striking ``The'' and 
                inserting ``For each of fiscal years 2008 through 2013, 
                the''.
            (2) Conforming amendments.--Section 1231 of such Act (16 
        U.S.C. 3831) is amended--
                    (A) in subsection (a), by striking ``2007'' and 
                inserting ``2013'';
                    (B) in subsection (d), by striking ``2007'' and 
                inserting ``2013'';
                    (C) in subsection (e)(3), by striking ``2002'' and 
                inserting ``2008''; and
                    (D) in subsection (h)(1), by striking ``2007'' and 
                inserting ``2013''.
    (b) Eligible Land.--Section 1231(b) of such Act (16 U.S.C. 3831(b)) 
is amended--
            (1) by striking the period at the end of paragraph (1) and 
        inserting a semicolon;
            (2) in paragraph (4), by striking ``or'' at the end of 
        subparagraph (C);
            (3) by striking the period at the end of paragraph (5) and 
        inserting a semicolon; and
            (4) by adding at the end the following new paragraph:
            ``(6) marginal pasture land or hay land that is otherwise 
        ineligible, if the land is to be primarily devoted to native 
        vegetation appropriate to the locale and--
                    ``(A) will provide suitable habitat for a State or 
                federally listed threatened or endangered species or a 
                species determined by the Secretary of the Interior to 
                be species of concern; or
                    ``(B) will contribute to the restoration of a 
                critically endangered ecosystem or endangered ecosystem 
                as defined by the Secretary.''.
    (c) Enrollment Goals.--Section 1231(d) of such Act (16 U.S.C. 
3831(d)) is amended--
            (1) by striking ``The Secretary'' and inserting:
            ``(1) Acreage authorized.--The Secretary''; and
            (2) by adding at the end the following new paragraphs:
            ``(2) Enrollment goals.--For the period beginning on the 
        date of the enactment of this paragraph and ending on December 
        31, 2013, the Secretary shall establish a goal to enroll not 
        less than 7,000,000 acres of eligible land through the 
        continuous enrollment program and the conservation reserve 
        enhancement program; and
            ``(3) General signup.--
                    ``(A) To the maximum extent practicable, the 
                Secretary shall ensure that not more than 80 percent of 
                the acres maintained in the conservation reserve at any 
                one time during the 2008 through 2013 calendar years 
                are acres that were enrolled through a general signup 
                under section 1234(c)(2)(A).
                    ``(B) For an offer to be accepted into the 
                conservation reserve under the general signup, the 
                Secretary shall require an offer to have an 
                environmental benefit index score at or above a 
                threshold that is 15 percent higher than the average of 
                the thresholds used in general signups during fiscal 
                years 1996 through 2006, adjusted for changes in the 
                index over these fiscal years.''.
    (d) Balance of Natural Resource Purposes.--Section 1231(j) of such 
Act (16 U.S.C. 3831(j)) is amended--
            (1) by striking ``In determining'' and inserting the 
        following:
            ``(1) Equitable balance of conservation purposes.--In 
        determining'';
            (2) by striking the period at the end and inserting ``, but 
        need not balance all conservation purposes with respect to each 
        particular contract offer.''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Wildlife.--In considering the extent to which a 
        contract offer will achieve the conservation purposes of the 
        program related to wildlife habitat, the Secretary shall 
        consider the extent to which the contract offer will contribute 
        to increased populations of wildlife, including waterfowl, 
        nongame grassland birds and neotropical migrants, and assist in 
        the recovery of at-risk species.''.
    (e) Duties of Participants.--Section 1232(a) of such Act (16 U.S.C. 
3832(a)) is amended--
            (1) in paragraph (4)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before subparagraph (B), as so 
                redesignated, the following new subparagraph:
                    ``(A) approved vegetative cover shall not include 
                vegetative cover inappropriate to the locale;'';
            (2) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11); respectively;
            (3) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) to undertake appropriate management activities on the 
        land as needed throughout the term of the contract to achieve 
        the purposes of the conservation reserve program;''; and
            (4) in subparagraph (A)(i)(II) of paragraph (8), as so 
        redesignated, by striking ``may be conducted;'' and inserting 
        ``, taking into account grassland types and species, location, 
        weather conditions, and other factors that determine to what 
        extent harvesting and grazing activities will advance the 
        conservation purposes of the program;''.
    (f) Conservation Plan.--Section 1232(b)(1) of such Act (16 U.S.C. 
3832(b)(1)) is amended--
            (1) in subparagraph (A), by striking ``; and'' and 
        inserting ``, including appropriate management activities 
        required by subsection (a)(5);'' and
            (2) by adding at the end the following new subparagraph:
                    ``(C) criteria for conducting any commercial use to 
                be permitted, including criteria for managed harvesting 
                and grazing specifying frequency, timing, number of 
                animal units, percentage of field, and other criteria 
                to ensure that managed harvesting and grazing advances 
                the conservation purposes of the program; and''.
    (g) Cost-Share and Management Assistance.--Section 1234(b) of such 
Act (16 U.S.C. 3834(b)) is amended by adding at the end the following 
new paragraph:
            ``(6) Management costs.--The Secretary shall pay 75 percent 
        of the cost of management activities, including control of 
        invasive species, required under a contract entered into under 
        this subchapter, subject to such limits as the Secretary may 
        establish.''.
    (h) Acceptance of Contract Offers.--Section 1234(c)(3) of such Act 
(16 U.S.C. 3834(c)(3)) is amended--
            (1) by striking ``In determining'' and inserting the 
        following:
                    ``(A) Maximizing environmental benefits.--In 
                determining'';
            (2) by striking ``may'' and all that follows through ``take 
        into consideration'' and inserting ``shall take into 
        consideration'';
            (3) by striking ``benefits; and'' and inserting ``benefits. 
        The Secretary shall establish criteria for the acceptance of 
        contract offers that will maximize environmental benefits, 
        including criteria related to the characteristics of the land 
        that is the subject of the contract offer, its location, 
        proposed cover and proposed management practices.'';
            (4) by striking ``(B) establish'' and inserting the 
        following:
                    ``(B) Flexibility.--The Secretary may establish'';
            (5) by striking ``abated.'' and inserting ``abated, in 
        order to more effectively address specific State or regional 
        resource concerns and conservation priorities.''; and
            (6) by adding at the end the following new subparagraph:
                    ``(C) Relationship to other conservation 
                programs.--In the enrollment of land in the 
                conservation reserve established under this subchapter, 
                the Secretary shall give a priority to land that cannot 
                produce comparable environmental benefits if maintained 
                in agricultural production and enrolled in the 
                environmental quality incentives program or other 
                program designed to assist producers in improving the 
                environmental performance of working agricultural 
                land.''.
    (i) Conservation Reserve Enhancement Program.--Section 1234(f)(1) 
of such Act is (16 U.S.C. 3834(f)) is amended by adding at the end the 
following new sentence: ``The Secretary may waive this payment 
limitation for persons participating in a conservation reserve 
enhancement program if the Secretary determines such a waiver is 
necessary to achieve the objectives of the conservation reserve 
enhancement program.''.
    (j) Early Termination Clause for Bioenergy Production.--At the end 
of section 1231(e), add the following new paragraph:
            ``(4) Early termination option for bioenergy production.--
                    ``(A) In general.--The Secretary shall offer to 
                producers applying for entry into the Conservation 
                Reserve through the general signup under section 
                1234(c)(2)(A), the option of including a contract 
                provision to allow the affected acreage to exit from 
                the reserve at any time after an initial period of 3 
                years but prior to competing a full contract term in 
                order to produce a sustainable cellulosic bioenergy 
                crop on the affected acres.
                    ``(B) Eligible lands.--Lands eligible to be covered 
                by an early termination from the reserve are those 
                acres having an erodibility index value less than 15 
                and are otherwise eligible for enrollment in the 
                conservation reserve except land that is to be enrolled 
                under the continuous signup or the conservation reserve 
                enhancement program under section 1234(c)(2)(B).
                    ``(C) Restrictions.--In the event that a producer 
                with an early termination clause in the conservation 
                reserve contract chooses to exercise this option, the 
                Secretary shall require the producer to restrict any 
                agricultural production during the remaining term that 
                the affected acres would have had under the contract to 
                the production of a sustainable cellulosic bioenergy 
                crop on the lands.
                    ``(D) Payment reduction.--If a producer chooses to 
                have the option clause included in the conservation 
                reserve contract, the Secretary shall reduce the annual 
                rental payment otherwise payable for the contract to be 
                paid on those acres during the time of enrollment.
                    ``(E) Contract termination.--If a producer 
                exercises the option to have the affected acreage leave 
                the reserve in order to produce a sustainable 
                cellulosic bioenergy crop, the Secretary shall 
                terminate the CRP contract and cease making any payment 
                to the producer for these acres.''.

SEC. 216. WETLANDS RESERVE PROGRAM.

    (a) Extension.--
            (1) Funding extension.--Section 1241(a)(2) of the Food 
        Security Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by 
        striking ``The'' and inserting ``For each of fiscal years 2002 
        through 2013, the''.
            (2) Conforming amendment.--Section 1237(c) of such Act (16 
        U.S.C. 3837(c)) is amended by striking ``2007'' and inserting 
        ``2013''.
    (b) Maximum Enrollment.--Section 1237(b)(1) of such Act (16 U.S.C. 
3837(b)(1)) is amended by striking ``2,275,000 acres'' and inserting 
``5,000,000 acres''.
    (c) Wetland Easement Conservation Plan.--Section 1237A(b)(3) of 
such Act (16 U.S.C. 3837a(b)(3)) is amended by inserting before the 
semicolon at the end the following: ``and activities necessary to 
maintain hydrologic, habitat, and other functional values of the 
wetlands''.
    (d) Cost-Share and Management Assistance.--Section 1237C of such 
Act (16 U.S.C. 3837c) is amended--
            (1) in subsection (a)(1), by inserting ``including 
        necessary hydrologic and habitat maintenance activities,'' 
        after ``values,''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(4) Management costs.--The Secretary may make payments to 
        owners to cover up to the full actual cost of undertaking any 
        ongoing or periodic management activities necessary to maintain 
        the functional values of wetland enrolled in the wetlands 
        reserve program.''.

SEC. 217. PILOT PROGRAM FOR CONSERVATION RISK MANAGEMENT.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the 
following:

``SEC. 1240R. PILOT PROGRAM FOR CONSERVATION RISK MANAGEMENT.

    ``(a) Findings.--Congress finds the following:
            ``(1) Numerous studies have identified risk as a major 
        barrier to the adoption of well established conservation 
        measures such as Best Management Practices (BMPs).
            ``(2) Studies have determined that conservation risk 
        management guarantees are among the most cost effective means 
        of inducing conservation adoption.
            ``(3) The Pennsylvania Department of Agriculture has 
        successfully operated an experimental conservation risk 
        management program in conjunction with the Agricultural 
        Conservation Innovation Center of the American Farmland Trust.
    ``(b) Pilot Program Required.--The Secretary shall establish a 
pilot program to support innovative conservation risk management tools 
to encourage the implementation of conservation and best management 
practices on working lands.
    ``(b) Conservation Risk Management.--The Secretary shall undertake 
a pilot project in the locations specified in paragraph (c) to 
encourage the adoption of conservation practices and best management 
practices on working lands by offering producers innovative tools to 
manage the business and production risk of implementing conservation 
and/or best management practices on some portion of their operations. 
Such risk management tools shall include price and yield guarantees 
that are contingent on conversion to conservation and/or best 
management practices, such as reduced application rates of nutrients.
    ``(c) Pilot Projects.--Pilot projects in conservation risk 
management shall be undertaken in the following locations:
            ``(1) Chesapeake Bay watershed.
            ``(2) Great Lakes Basin.
            ``(3) New York's Finger Lakes Region.
            ``(4) Ohio River Watershed.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall provide $20 million each of fiscal years 2008 
through 2013 to carry out the pilot conservation risk management 
program authorized by this section. The funds shall be allocated in the 
following manner:
            ``(1) $10 million to establish and maintain a guarantee 
        pool, from which, payments can be made to producers 
        participating in the pilot conservation risk management program 
        that suffered losses when implementing conservation and/or best 
        management practices.
            ``(2) $5 million to administer and deliver the pilot 
        conservation risk management program to producers.
            ``(3) $5 million for research to improve and maintain the 
        integrity of the pilot conservation risk management program. 
        The research shall focus on the following priority areas:
                    ``(A) Impact of short-term and long-term weather 
                changes on the performance of conservation and best 
                management practices.
                    ``(B) Genomic markers indicating nutrient 
                insufficiency.
                    ``(C) Improving actuarial analysis and performance.
                    ``(D) Impact of new fertility recommendations on 
                yield and net returns.
                    ``(E) Impact of reduced tillage practices for 
                continuous corn on yield and net returns.
                    ``(F) Research on other risk management tools to 
                improve the adoption of conservation and best 
                management practices.
                    ``(G) Impact of emerging technologies and enhanced 
                nutrient management techniques, such as variable rate 
                applications, in-season nutrient testing, precision 
                farming practices, on yield and net returns.
    ``(e) Report.--The Secretary shall conduct an assessment of the 
effectiveness of the conservation risk management pilot and publish 
reports, available to the public, with results of the assessment. Such 
assessments shall be undertaken at least midway during and at the end 
of the pilot program.''.

        Subtitle B--Conservation Corridor Demonstration Program

SEC. 221. CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.

    (a) Findings.--Congress finds the following:
            (1) The Chesapeake Bay restoration will not achieve its 
        goals as expected under the Chesapeake 2000 agreement by the 
        2010 deadline.
            (2) The Delmarva Peninsula, comprised of the Eastern Shore 
        of the Chesapeake Bay in Maryland and Virginia and the State of 
        Delaware contributes a large percentage of nutrients and 
        sediment loadings to the Chesapeake Bay each year.
            (3) Agricultural lands, forests and open space provide the 
        greatest contribution per dollar of investment to water quality 
        improvements and are critical to the restoration of water 
        quality in the Chesapeake Bay.
            (4) Effective, efficient and targeted use of funding for 
        conservation programs on farms on the Delmarva Peninsula is the 
        best way to ensure meaningful contributions of the very willing 
        agricultural production industries to be better environmental 
        stewards and contribute more to the Chesapeake Bay restoration.
    (b) Delmarva Conservation Corridor Demonstration Program.--The 
Secretary shall establish the program, known as the ``Conservation 
Corridor Demonstration Program'', under which the States of Delaware, 
Maryland, and Virginia or any one of those States shall submit a plan 
to integrate agriculture and forestry conservation programs, 
coordinated across the landscape, of the Department of Agriculture and 
State and local efforts toward conservation on agricultural lands and 
sustainability of farming on the Peninsula.
    (c) Submission of Conservation Corridor Plan.--
            (1) Submission and proposal.--To be eligible to participate 
        in the demonstration program, a State, or combination of States 
        referred to in subsection (b) shall--
                    (A) submit to the Secretary a plan that--
                            (i) proposes specific criteria and 
                        commitment of resources in the geographic 
                        region designated in the plan; and
                            (ii) describes how the linkage of Federal, 
                        State, and local resources will improve--
                                    (I) the economic viability of 
                                agriculture; and
                                    (II) the environmental integrity of 
                                the watersheds in the Delmarva 
                                Peninsula;
                    (B) demonstrate to the Secretary, in developing the 
                plan, the State, or combination of States has solicited 
                and taken into account the views of local residents.
            (2) Draft of memorandum of agreement.--If the conservation 
        corridor plan is submitted by more than one State, the plan 
        shall provide a draft memorandum of agreement among entities in 
        each submitting State.
    (d) Review of Plan.--Not later than 90 days after the date of 
receipt of a conservation corridor plan, the Secretary--
            (1) shall review the plan; and
            (2) may approve the plan for implementation under this 
        subtitle if the Secretary determines that the plan meets the 
        requirements specified in subsection (e).
    (e) Criteria for Approval.--The Secretary may approve a plan only 
if, as determined by the Secretary, the plan provides for each of the 
following:
            (1) Voluntary actions.--Actions taken under the plan--
                    (A) are voluntary;
                    (B) require the consent of willing landowners; and
                    (C) provide a mechanism by which the landowner may 
                withdraw such consent without adverse consequences 
                other than the loss of any payments to the landowner 
                conditioned on continued enrollment of the land.
            (2) No effect on unenrolled land.--The enrollment of land 
        in a conservation program incorporated through the plan will 
        neither--
                    (A) adversely affect any adjacent land not so 
                enrolled; nor
                    (B) create any buffer zone on such unenrolled land.
            (3) Sufficient staffing.--Staffing, considering both 
        Federal and non-Federal resources, is sufficient to ensure 
        success of the plan.

SEC. 222. IMPLEMENTATION OF CONSERVATION CORRIDOR PLAN.

    (a) Memorandum of Agreement.--On approval of a conservation 
corridor plan, the Secretary may enter into a memorandum of agreement 
with the State, local government, or combination of States that 
submitted the plan to--
            (1) guarantee specific program resources for implementation 
        of the plan;
            (2) establish various compensation rates to the extent that 
        the parties to the agreement consider justified; and
            (3) provide streamlined and integrated paperwork 
        requirements.
    (b) Continued Compliance With Plan Approval Criteria.--The 
Secretary shall terminate the memorandum of agreement entered into 
under subsection (a) with respect to an approved conservation corridor 
plan and cease the provision of resources for implementation of the 
plan if the Secretary determines that, in the implementation of the 
plan--
            (1) the State or combination of States that submitted the 
        plan has deviated from--
                    (A) the plan;
                    (B) the criteria on which approval of the plan was 
                conditioned; or
                    (C) the cost-sharing requirements or any other 
                condition of the plan; or
            (2) the economic viability of agriculture in the geographic 
        region designated in the plan is being hindered.
    (c) Progress Report.--At the end of the 3-year period that begins 
on the date on which funds are first provided with respect to a 
conservation corridor plan under the demonstration program, the State, 
local government, or combination of States that submitted the plan 
shall submit to the Secretary--
            (1) a report on the effectiveness of the activities carried 
        out under the plan; and
            (2) an evaluation of the economic viability of agriculture 
        in the geographic region designated in the plan.
    (d) Duration.--The demonstration program shall be carried out for 
not less than 3 nor more than 5 years beginning on the date on which 
funds are first provided under the demonstration program.

SEC. 223. FUNDING REQUIREMENTS.

    (a) Cost Sharing.--
            (1) Required non-federal share.--Subject to paragraph (2), 
        as a condition on the approval of a conservation corridor plan, 
        the Secretary shall require the State and local participants to 
        contribute financial resources sufficient to cover at least 50 
        percent of the total cost of the activities carried out under 
        the plan.
            (2) Exception.--The Secretary may reduce the cost-sharing 
        requirement in the case of a specific project or activity under 
        the demonstration program on good cause and on demonstration 
        that the project or activity is likely to achieve extraordinary 
        natural resource benefits.
    (b) Reservation of Funds.--The Secretary shall direct funds (under 
programs amended by subtitle A of this title) on a priority basis to 
implement the plan by prioritizing to projects in areas identified by 
the plan.

SEC. 224. RELATION TO EXISTING PROGRAM.

    This subtitle supercedes subtitle G of title II of the Farm 
Security and Rural Investment Act of 2002 (Public Law 107-171; 16 
U.S.C. 3801 note).

                           TITLE III--ENERGY

SEC. 301. DEFINITION OF BIOMASS.

    Section 9001(3)(B)(i) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8101(3)(B)(i)) is amended by inserting ``and crop 
waste'' after ``agricultural crops''.

SEC. 302. RESEARCH ON BIOBASED PRODUCTS.

    Section 9002(k)(2)(A) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(k)(2)(A)) is amended--
            (1) by striking ``$1,000,000'' and inserting 
        ``$10,000,000''; and
            (2) by striking ``2002 through 2007'' and inserting ``2008 
        through 2013''.

SEC. 303. DEVELOPMENT OF BIOREFINERIES.

    Section 9003(h) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8103(h)) is amended to read as follows:
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section 
$100,000,000 for each of fiscal years 2008 through 2013.''.

SEC. 304. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    Section 9005(i) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8105(i)) is amended to read as follows:
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 305. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS 
              PROGRAM.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106) is amended--
            (1) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(3) Preference for community projects.--In awarding 
        grants or providing loans under subsection (a), the Secretary 
        shall give preference for activities that--
                    ``(A) are undertaken jointly by more than one 
                eligible entity in a local community, as determined by 
                the Secretary;
                    ``(B) involve direct cooperation between two or 
                more eligible entities, as determined by the Secretary; 
                or
                    ``(C) foster community or cooperative approaches to 
                renewable energy and energy efficiency development, as 
                determined by the Secretary.'';
            (2) by striking subsection (f);
            (3) by redesignating subsection (e) as subsection (f);
            (4) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Production-Based Incentive in Lieu of Grant.--
            ``(1) In general.--In addition to the authority under 
        subsection (a), the Secretary shall, on the request of an 
        applicant eligible to receive payments under this section, make 
        production-based payments to the applicant in lieu of a grant.
            ``(2) Contingency.--The Secretary may not make a 
        production-based payment under paragraph (1) unless the 
        applicant demonstrates documented energy production and sales 
        from a renewable energy system to a third party.
            ``(3) Limitation.--The value of a production-based payment 
        under this subsection may not exceed the lesser of--
                    ``(A) 25 percent of the eligible project costs; or
                    ``(B) any other limit that the Secretary considers 
                appropriate.''; and
            (5) by adding at the end the following new subsection:
    ``(g) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section--
            ``(1) $60,000,000 for fiscal year 2008, to remain available 
        until expended;
            ``(2) $90,000,000 for fiscal year 2009, to remain available 
        until expended;
            ``(3) $130,000,000 for fiscal year 2010, to remain 
        available until expended;
            ``(4) $180,000,000 for fiscal year 2011, to remain 
        available until expended; and
            ``(5) $250,000,000 for each of fiscal years 2012 and 2013, 
        to remain available until expended.''.

SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT.

    Section 310 of the Biomass Research and Development Act of 2000 (7 
U.S.C. 7624 note; Public Law 106-224) is amended to read as follows:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this title $25,000,000 
for each of fiscal years 2008 through 2013.
    ``(b) Authorization of Appropriations.--In addition to amounts 
transferred under subsection (a), there is authorized to be 
appropriated to carry out this title $200,000,000 for each of fiscal 
years 2008 through 2013.
    ``(c) Availability of Funds.--Amounts made available under 
subsection (a) or appropriated pursuant to the authorization of 
appropriations in subsection (b) shall remain available until 
expended.''.

SEC. 307. COOPERATIVE RESEARCH AND EXTENSION PROJECTS FOR CARBON CYCLE, 
              RENEWABLE ENERGY, AND CLIMATE CHANGE IN THE NORTHEAST AND 
              MID-ATLANTIC UNITED STATES.

    The Agricultural Risk Protection Act of 2000 (Public Law 106-224) 
is amended by inserting after section 227 the following:

``SEC. 228. COOPERATIVE RESEARCH AND EXTENSION PROJECTS FOR CARBON 
              CYCLE, RENEWABLE ENERGY, AND CLIMATE CHANGE IN THE 
              NORTHEAST AND MID-ATLANTIC UNITED STATES.

    ``(a) In General.--The Secretary shall provide grants to eligible 
universities described in subsection (b) in order to conduct research 
on carbon cycle, renewable energy, and climate change.
    ``(b) Eligible Northeast and Mid-Atlantic Universities.--The 
eligible universities or consortiums containing one or more eligible 
universities described in this subsection are--
            ``(1) Cornell University;
            ``(2) the University of the District of Columbia; and
            ``(3) public universities in the following States:
                    ``(A) Maine.
                    ``(B) Delaware.
                    ``(C) Connecticut.
                    ``(D) Maryland.
                    ``(E) Massachusetts.
                    ``(F) New Hampshire.
                    ``(G) New Jersey.
                    ``(H) New York.
                    ``(I) Pennsylvania.
                    ``(J) Rhode Island.
                    ``(K) Vermont.
                    ``(L) Virginia.
    ``(c) Use.--The universities described in subsection (b) shall use 
funds provided pursuant to a grant under this section to--
            ``(1) conduct research to improve the scientific basis of 
        using land management practices to increase soil carbon 
        sequestration, including research on the use of new 
        technologies to increase carbon cycle effectiveness, such as 
        biotechnology and nanotechnology;
            ``(2) enter into partnerships to identify, develop, and 
        evaluate agricultural best practices, including partnerships 
        between--
                    ``(A) Federal, State, or private entities; and
                    ``(B) the Department of Agriculture;
            ``(3) develop computer models to predict and assess the 
        carbon cycle;
            ``(4) estimate and develop mechanisms to measure carbon 
        levels made available as a result of--
                    ``(A) voluntary Federal conservation programs;
                    ``(B) private and Federal forests; and
                    ``(C) other land uses;
            ``(5) develop outreach programs, in coordination with the 
        Cooperative State Research, Education, and Extension Service of 
        the Department of Agriculture, to share information on carbon 
        cycle and agricultural best practices that is useful to 
        agricultural producers;
            ``(6) conduct research on the effects of increased 
        greenhouse gases and global warming upon agriculture in the 
        Northeast and Mid-Atlantic regions of the United States; and
            ``(7) conduct studies of the potential for production of--
                    ``(A) ethanol and other biofuels from cellulosic 
                materials produced in the Northeast and Mid-Atlantic 
                regions of the United States;
                    ``(B) electricity produced from cellulosic 
                materials produced in the Northeast and Mid-Atlantic 
                regions of the United States; and
                    ``(C) natural gas produced from agricultural waste 
                and animal waste produced in the Northeast and Mid-
                Atlantic regions of the United States.
    ``(d) Administrative Costs.--Not more than three percent of the 
funds made available pursuant to subsection (e) may be used for 
administrative costs incurred in carrying out this section.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 308. INDUSTRIAL SITE REDEVELOPMENT THROUGH CELLULOSIC PROGRAM.

    Section 9010 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) in subsection (a)(1), to read as follows:
            ``(1) Biofuel.--The term `biofuel' means liquid 
        transportation fuel, including biodiesel, fuel grade ethanol, 
        and woody biomass.'';
            (2) in subsection (a)(3)(A), to read as follows:
                    ``(A) residue and waste material from the 
                production of agricultural crops (including wheat and 
                rice straw, corn stover, sugar bagasse, and trimmings 
                from fruits and tree nuts);'';
            (3) by striking subsection (a)(4) and inserting the 
        following new paragraphs:
            ``(4) Eligible site.--The term `eligible site' means either 
        an active industrial or processing facility (including a 
        distillery, ethanol plant, or paper mill), a site that once 
        held such a facility that is no longer in active use, or land 
        contiguous with and immediately surrounding an active 
        industrial or processing facility or a site that once held such 
        a facility that is no longer in active use.
            ``(5) Eligible project.--The term `eligible project' means 
        any project that utilizes an eligible site for the industrial 
        production of biofuel directly from an eligible commodity.
            ``(6) Eligible producer.--The term `eligible producer' 
        means a producer operating an eligible project.''; and
            (4) by striking subsections (b) and (c) and inserting the 
        following new subsections:
    ``(b) Industrial Site Redevelopment Through Cellulosic Program.--
            ``(1) Grants, loans, and loan guarantees.--The Secretary 
        shall provide grants, loans, and loan guarantees to an eligible 
        producer for the following activities:
                    ``(A) Purchase of equipment for an eligible 
                project.
                    ``(B) Purchase of construction or related services 
                for an eligible project.
                    ``(C) Construction of infrastructure for an 
                eligible project.
            ``(2) Production based payments.--
                    ``(A) In general.--In lieu of providing a grant 
                under paragraph (a), the Secretary may provide annual 
                payments to an eligible producer based on demonstrated 
                production of biofuel from eligible commodities.
                    ``(B) Maximum payment per gallon.--The Secretary 
                may provide payments to an eligible producer of not 
                more than two dollars for every gallon of biofuel 
                produced by the eligible producer in a fiscal year.
            ``(3) Limitations.--
                    ``(A) Grants.--
                            ``(i) In general.--Grants provided under 
                        paragraph (1) may not exceed $25,000,000 per 
                        eligible project.
                            ``(ii) Grants, loans, and loan 
                        guarantees.--The total combined amount of 
                        grants, loans, and loan guarantees provided 
                        under paragraph (1) to an eligible producer or 
                        for an eligible project may not exceed 
                        $50,000,000.
                    ``(B) Production based payments.--
                            ``(i) In general.--Production based 
                        payments provided under paragraph (2) may not 
                        exceed $25,000,000.
                            ``(ii) Production based payments, loans, 
                        and loan guarantees.--The total combined amount 
                        of production based payments provided under 
                        paragraph (2) and loans and loan guarantees 
                        provided under paragraph (1) to an eligible 
                        producer or for an eligible project may not 
                        exceed $50,000,000.
            ``(4) Matching requirement for grants, loans, and loan 
        guarantees.--A recipient of funds under this paragraph (1) 
        shall provide matching funds from non-Federal sources in an 
        amount equal to or greater than the amount of Federal funds 
        received.
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section not more than 
$150,000,000 for each of fiscal years 2008 through 2013.''.

SEC. 309. FARM AND RANCH ENERGY EFFICIENCY REBATE PROGRAM.

    (a) In General.--The Secretary shall provide competitive grants to 
eligible entities described in subsection (b) to provide rebates for 
farmers, ranchers, rural school districts, and rural small businesses 
to purchase renewable energy systems and make energy efficiency 
improvements.
    (b) Eligible Entities.--An eligible entity described in this 
subsection is--
            (1) a State energy or agriculture office;
            (2) a nonprofit energy efficiency or renewable energy 
        organization that uses public funds provided directly or under 
        contract with a State agency;
            (3) a nonprofit organization with a demonstrated ability to 
        administer a State-wide energy efficiency or renewable energy 
        rebate program; or
            (4) a consortium of entities described in paragraphs (1), 
        (2), and (3).
    (c) Merit Review.--
            (1) In general.--The Secretary shall establish a merit 
        review process to review applications for grants under 
        subsection (a) that uses the expertise of the Department of 
        Agriculture, other Federal and State agencies, and non-
        governmental organizations.
            (2) Requirements.--In reviewing the application of an 
        eligible entity to receive a grant under subsection (a), the 
        Secretary shall consider--
                    (A) the experience and expertise of the entity in 
                establishing and administering a State-wide clean 
                energy rebate program;
                    (B) the annual projected energy savings or 
                production increases resulting from the proposed 
                program;
                    (C) the environmental benefits resulting from the 
                proposed program; and
                    (D) other appropriate factors, as determined by the 
                Secretary.
    (d) Maintenance of Effort.--An eligible entity that is awarded a 
grant pursuant to subsection (a) shall provide assurances to the 
Secretary that funds provided to the entity under this subsection will 
be used in addition to, and not in place of, the amount of Federal, 
State, and local funds otherwise expended for rebate programs.
    (e) Rebate Amount.--The amount of a rebate provided from a grant 
under this subsection shall not exceed the lesser of--
            (1) $10,000; or
            (2) 50 percent of the cost incurred to purchase a renewable 
        energy system or an energy efficiency improvement.
    (f) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section $10,000,000 
for each of fiscal years 2008 through 2013.

SEC. 310. ALTERNATIVE USES FOR BIOFUEL BYPRODUCTS.

    (a) In General.--The Secretary shall provide grants to eligible 
universities or consortiums containing one or more eligible 
universities in the Northeast and Mid-Atlantic regions of the United 
States described in subsection (b) to conduct research on alternative 
uses for by-products produced as a result of the production of biofuel 
and bio-energy.
    (b) Eligible Northeast and Mid-Atlantic Universities.--The eligible 
universities referred to in subsection (a) are the following or 
consortium containing one of more of the following:
            (1) Cornell University.
            (2) The University of the District of Columbia.
            (3) Public universities in the following States:
                    (A) Maine.
                    (B) Delaware.
                    (C) Connecticut.
                    (D) Maryland.
                    (E) Massachusetts.
                    (F) New Hampshire.
                    (G) New Jersey.
                    (H) New York.
                    (I) Pennsylvania.
                    (J) Rhode Island.
                    (K) Vermont.
                    (L) Virginia.
    (c) Grant Limitation.--The amount of a grant provided to an 
eligible university under this section shall not exceed the lesser of--
            (1) $1,000,000 in any fiscal year; or
            (2) 10 percent of the available funds in any fiscal year.
    (d) Definitions.--In this section:
            (1) Biofuel.--The term ``biofuel'' means liquid 
        transportation fuel, including biodiesel and fuel grade 
        ethanol.
            (2) Bio-energy.--The term ``bio-energy'' means heat or 
        electricity produced from any of the following sources:
                    (A) Solar panels or concentrators.
                    (B) Wind capturing devices.
                    (C) Small-scale hydro-electric devices.
                    (D) Methane and other bio-digesters.
                    (E) Landfill digesters.
                    (F) Biomass.
                    (G) Waste materials from cropping or livestock 
                production.
            (3) By-products.--The term ``by-products'' means the 
        following materials:
                    (A) Solid and liquid matter produced in the process 
                of producing biofuel or bio-energy that may be 
                converted to food, feed, fiber, or energy.
                    (B) Unused electricity, energy or heat produced 
                from the biofuel or bio-energy production process.
                    (C) Unused solid or liquid materials not consumed 
                during the biofuel or bio-energy production process.
    (e) Funding.--There is authorized to be appropriated to carry out 
this title $10,000,000 for each of fiscal years 2008 through 2013.

SEC. 311. NATIONAL NET METERING FOR FARM ENERGY.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(11) Net metering.--
                    ``(A) In general.--Each electric utility shall make 
                available upon request net metering service to any 
                electric consumer that the electric utility serves.
                    ``(B) References.--For purposes of implementing 
                this paragraph, any reference contained in this section 
                to the date of enactment of this Act shall be deemed to 
                be a reference to the date of enactment of this 
                paragraph.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(i) Net Metering.--
            ``(1) In this subsection:
                    ``(A) The term `eligible onsite generating 
                facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 25 kilowatts or less; or
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 1,000 kilowatts or less, 
                        that is fueled solely by a renewable energy 
                        resource.
                    ``(B) The term `net metering service' means service 
                to an electric consumer under which electric energy 
                generated by that electric consumer from an eligible 
                onsite generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.
                    ``(C) The term `renewable energy resource' means--
                            ``(i) solar, wind, biomass, geothermal, or 
                        wave energy;
                            ``(ii) landfill gas;
                            ``(iii) energy produced from livestock 
                        waste;
                            ``(iv) energy produced from a bio-digester;
                            ``(v) fuel cells; and
                            ``(vi) a combined heat and power system.
            ``(2) In undertaking the consideration and making the 
        determination concerning net metering established by section 
        111(d)(11), the following shall apply:
                    ``(A) An electric utility--
                            ``(i) shall charge the owner or operator of 
                        an onsite generating facility rates and charges 
                        that are identical to those that would be 
                        charged other electric consumers of the 
                        electric utility in the same rate class; and
                            ``(ii) shall not charge the owner or 
                        operator of an onsite generating facility any 
                        additional standby, capacity, interconnection, 
                        or other rate or charge.
                    ``(B) An electric utility that sells electric 
                energy to the owner or operator of an onsite generating 
                facility shall measure the quantity of electric energy 
                produced by the onsite facility and the quantity of 
                electricity consumed by the owner or operator of an 
                onsite generating facility during a billing period in 
                accordance with normal metering practices.
                    ``(C) If the quantity of electric energy sold by 
                the electric utility to an on-site generating facility 
                exceeds the quantity of electric energy supplied by the 
                onsite generating facility to the electric utility 
                during the billing period, the electric utility may 
                bill the owner or operator for the net quantity of 
                electric energy sold, in accordance with normal 
                metering practices.
                    ``(D) If the quantity of electric energy supplied 
                by the onsite generating facility to the electric 
                utility exceeds the quantity of electric energy sold by 
                the electric utility to the onsite generating facility 
                during the billing period--
                            ``(i) the electric utility may bill the 
                        owner or operator of the onsite generating 
                        facility for the appropriate charges for the 
                        billing period in accordance with subparagraph 
                        (B); and
                            ``(ii) the owner or operator of the onsite 
                        generating facility shall be credited for the 
                        excess kilowatt-hours generated during the 
                        billing period, with the kilowatt-hour credit 
                        appearing on the bill for the following billing 
                        period.
                    ``(E) An eligible onsite generating facility and 
                net metering system used by an electric consumer shall 
                meet all applicable safety, performance, reliability, 
                and interconnection standards established by the 
                National Electrical Code, the Institute of Electrical 
                and Electronics Engineers, and Underwriters 
                Laboratories.
                    ``(F) The Commission, after consultation with State 
                regulatory authorities and nonregulated electric 
                utilities and after notice and opportunity for comment, 
                may adopt, by rule, additional control and testing 
                requirements for onsite generating facilities and net 
                metering systems that the Commission determines are 
                necessary to protect public safety and system 
                reliability.
                    ``(G) An electric utility must provide net metering 
                services to electric consumers until the cumulative 
                generating capacity of net metering systems equals 10.0 
                percent of the utility's peak demand during the most 
                recent calendar year.
                    ``(H) Nothing in this subsection precludes a State 
                from imposing additional requirements regarding the 
                amount of net metering available within a State 
                consistent with the requirements of this section.''.

                        TITLE IV--HEALTHY DIETS

SEC. 401. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended in subsection (g)--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``July 2004'' and inserting ``July 2007''; and
                    (B) by amending subparagraphs (A) and (B) to read 
                as follows:
                    ``(A) 100 elementary or secondary schools in each 
                State;
                    ``(B) additional elementary or secondary schools in 
                each State in proportion to the student population of 
                the State; and''.
            (2) in paragraph (3)(A), by striking ``paragraph (1)(B)'' 
        and inserting ``paragraph (1)'';
            (3) in paragraph (5), in each of subparagraphs (A) and (B), 
        by striking ``2008'' and inserting ``2011''; and
            (4) in paragraph (6)(B)--
                    (A) in clause (i)--
                            (i) by striking ``October 1, 2004, and on 
                        each October 1 thereafter,'' and inserting 
                        ``October 1, 2007, and on each October 1 
                        thereafter,''; and
                            (ii) by striking ``$9,000,000'' and 
                        inserting ``$300,000,000''; and
                    (B) by adding at the end the following:
                            ``(iii) Administrative expenses.--For 
                        fiscal year 2008 and each fiscal year 
                        thereafter, of the amount available to carry 
                        out this subsection, the Secretary may reserve 
                        not more than 1 percent of that amount for 
                        administrative expenses in carrying out this 
                        subsection.
                            ``(iv) State administrative costs.--For 
                        fiscal year 2008 and each fiscal year 
                        thereafter, of the amount received by a State 
                        to carry out this subsection, the State may use 
                        not more than 5 percent of that amount for 
                        administrative expenses in carrying out this 
                        subsection. To be eligible to use such funds 
                        for such expenses, the State must submit to the 
                        Secretary a plan indicating how the State 
                        intends to use such funds.
                            ``(v) Federal requirements.--The Secretary 
                        shall establish requirements to be followed by 
                        States in administering this subsection. The 
                        initial set of requirements shall be 
                        established not later than 1 year after the 
                        date of the enactment of this clause.''.

SEC. 402. SECTION 32 SPECIALTY CROP PURCHASES.

    (a) Minimum Level of Purchases.--Section 32 of the Act of August 
24, 1935 (7 U.S.C. 612c) is amended in the sixth sentence by inserting 
after ``and their products'' the following: ``, and, for each of fiscal 
years 2008 through 2013, the Secretary of Agriculture shall devote not 
less than $400,000,000 of sums appropriated under this section to 
purchases of non-basic agricultural commodities, such as fruits, 
vegetables, and other specialty food crops''.
    (b) Expansion of DoD Fresh Program.--Such section is further 
amended by inserting after the sixth sentence, as amended by subsection 
(a), the following new sentence: ``Of the funds specified in the 
preceding sentence, the Secretary of Agriculture shall expend not less 
than $50,000,000 fiscal year 2008, $75,000,000 for both fiscal years 
2009 and 2010, $100,000,000 for fiscal year 2011, and $125,000,000 for 
fiscal years 2012 and 2013 for the purchase of fresh fruits and 
vegetables for distribution to schools and service institutions in 
accordance with section 6(a) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1755(a)).''.

SEC. 403. SCHOOL PREFERENCE STUDY.

    The Secretary of Agriculture shall carry out a study on the 
preferences of elementary and secondary schools for commodity 
distribution, including the extent to which such schools prefer 
commodity distribution to include fresh fruits and vegetables, and 
submit to Congress a report on the results of the study. The report 
shall include an analysis of the logistical issues that would impede 
efforts to increase the extent to which commodity distribution to 
schools includes fresh fruits and vegetables, and shall include 
recommendations for improving the availability of fresh fruits and 
vegetables to schools.

SEC. 404. INDEPENDENT EVALUATION OF DEPARTMENT OF AGRICULTURE COMMODITY 
              PURCHASE PROCESS.

    (a) Evaluation Required.--The Secretary of Agriculture shall 
arrange to have performed an independent evaluation of the commodity 
purchasing processes (and the statutory and regulatory authority 
underlying such processes) used by the Department of Agriculture to 
remove surplus commodities from the market and support commodity prices 
and producer incomes, especially with regard to activities under 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) and the 
importance of increasing purchases of perishable specialty crops.
    (b) Submission of Results.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Agriculture shall submit to 
Congress a report on the results of the evaluation.

SEC. 405. ALLOW GEOGRAPHIC PREFERENCES IN FOOD PURCHASING PROGRAMS.

    Section 9(j)(1)(A) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758(j)(1)(A)) is amended by striking ``encourage'' and 
inserting ``allow''.

SEC. 406. AUTHORIZATION LEVEL FOR FARM-TO-CAFETERIA ACTIVITIES.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended in subsection (i)(2) by striking ``such sums as 
are necessary'' and all that follows through the period at the end and 
inserting ``to carry out this subsection $20,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 407. EXTENSION OF WIC FARMER'S MARKET NUTRITION PROGRAM.

    Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)(A)) is amended--
            (1) in clause (i), by striking ``2009'' and inserting 
        ``2013''; and
            (2) by striking clause (ii) and inserting the following:
    ``(ii) Mandatory Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out this 
subsection $20,000,000 for fiscal year 2008, $30,000,000 for fiscal 
year 2009, $45,000,000 for fiscal year 2010, $60,000,000 for fiscal 
year 2011, and not less than $75,000,000 for fiscal year 2012 and each 
fiscal year thereafter. Such funds shall remain available until 
expended.''.

SEC. 408. SENIOR FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) in subsection (a) by striking ``$5,000,000'' and all 
        that follows through ``2007'', and inserting ``$20,000,000 for 
        fiscal year 2008, $30,000,000 for fiscal year 2009, $45,000,000 
        for fiscal year 2010, $60,000,000 for fiscal year 2011, and not 
        less than $75,000,000 for fiscal year 2012 and each fiscal year 
        thereafter'';
            (2) in subsection (b)--
                    (A) in paragraph (2) by striking ``and'' at the 
                end;
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) to promote the transition to organic and other 
        environmentally beneficial food production systems.''; and
            (3) by adding at the end the following new subsection:
    ``(d) Eligible Participants; Benefits Levels.--The regulations 
required by subsection (c)--
            ``(1) shall allow for participation by farmers markets, and 
        roadside stands, community supported agriculture programs; and
            ``(2) shall not limit the ability of State or regional 
        programs to set benefit levels per individual senior.''.

SEC. 409. DISABLED FARMERS MARKET NUTRITION PILOT PROGRAM.

    (a) Findings.--Congress finds that low-income disabled individuals 
suffer from similar forms of malnutrition as low-income seniors, and 
that the disabled population would reap nutritional benefits from such 
a farmers market voucher program where they are able to purchase fresh, 
healthy food from local farmers.
    (b)(1) Pilot Program Establishment.--The Secretary of Agriculture 
shall carry out a pilot program with respect to the States specified in 
paragraph (d) under which the Secretary creates a farmers' market 
nutrition program for disabled individuals.
    (2) Of the funds of the Commodity Credit Corporation, the Secretary 
of Agriculture shall use $1,000,000 for fiscal year 2008 to carry out 
this section, and such sums as necessary for fiscal years 2009 through 
2013.
    (c) Program Purposes.--The purposes of the farmers' market 
nutrition pilot program are--
            (1) to provide resources in the form of fresh, nutritious, 
        unprepared, locally grown fruits, vegetables, and herbs from 
        farmers' markets, roadside stands, and community supported 
        agriculture programs to low-income disabled individuals;
            (2) to increase the domestic consumption of agricultural 
        commodities by expanding or aiding in the expansion of domestic 
        farmers' markets, roadside stands, and community supported 
        agriculture programs; and
            (3) to develop or aid in the development of new and 
        additional farmers' markets, roadside stands, and community 
        supported agriculture programs.
    (d) States.--The Secretary shall use funds referred to in 
subsection (b)(2) for pilot programs on the West Coast in California, 
in the North East, in the South East, and in the Mid-West.
    (e) Regulations.--The Secretary may issue such regulations as the 
Secretary considers necessary to carry out the farmers' market 
nutrition program.
    (f) Definition.--For purposes of this section, the term ``disabled 
individual'' means an individual who has a disability as defined in 
section 3 of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12102).

SEC. 410. FARMERS' MARKET PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005) is amended by striking subsections (d) and (e) and 
inserting the following:
    ``(d) Criteria and Guidelines.--
            ``(1) In general.--The Secretary shall establish criteria 
        and guidelines for the submission, evaluation, and funding of 
        proposed projects under the Program.
            ``(2) Priority.--The Secretary shall prioritize the funding 
        of projects that will support, encourage, or promote the 
        transition to organic and other environmentally beneficial 
        forms of agricultural production.
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use $25,000,000 for each of fiscal years 2008 
through 2013 to carry out this section, of which $5,000,000 shall be 
used to support the use of electronic benefit transfers at farmers' 
markets.''.

SEC. 411. DEPARTMENT OF DEFENSE AND DEPARTMENT OF AGRICULTURE 
              PROCUREMENT OF LOCALLY PRODUCED FRUITS AND VEGETABLES.

    (a) Findings.--Congress finds the following:
            (1) Locally procured agricultural products, as compared to 
        products transported from distant sources--
                    (A) are often harvested closer to full ripeness and 
                can have higher nutritional quality;
                    (B) can have improved ripeness, taste, or 
                selection, which can increase rates of consumption of 
                agricultural products; and
                    (C) are more efficient to store, distribute, and 
                package.
            (2) Use of local produce--
                    (A) reduces dependence upon foreign oil by reducing 
                fuel consumption rates associated with the production 
                or transportation of agricultural products;
                    (B) can help to improve the ability of those using 
                the procurement system to provide education on 
                nutrition, farming, sustainability, energy efficiency, 
                and the importance of local purchases to the local 
                economy;
                    (C) helps to maintain a robust logistics network 
                for agricultural product procurement; and
                    (D) promotes farm, business, and economic 
                development by accessing local markets.
            (3) Section 9(j) of the Richard B. Russell National School 
        Lunch Act (42 U.S.C. 1758(j)) directs the Secretary of 
        Agriculture to encourage institutions participating in the 
        school lunch program established under that Act and the school 
        breakfast program established by section 4 of the Child 
        Nutrition Act of 1966 (42 U.S.C. 1773) to purchase, in addition 
        to other food purchases, locally produced foods, to the maximum 
        extent practicable and appropriate.
    (b) Department of Defense Geographic Procurement Preference.--
Notwithstanding any other provision of law, the Department of Defense 
may use a geographic preference to purchase locally produced 
agricultural products for--
            (1) the Defense Supply Center Philadelphia;
            (2) the Department of Defense Farm to School Program;
            (3) the Department of Defense Fresh Fruit and Vegetable 
        Program;
            (4) the service academies;
            (5) Department of Defense domestic dependent schools;
            (6) other Department of Defense schools under chapter 108 
        of title 10, United States Code;
            (7) commissary and exchange stores; and
            (8) morale, welfare, and recreation facilities operated by 
        the Department of Defense.
    (c) Department of Agriculture and Related Entities Geographic 
Procurement Preference.--Notwithstanding any other provision of law, 
the Department of Agriculture, schools, local educational agencies, and 
other entities may use a geographic preference to purchase locally 
produced agricultural products for--
            (1) the school breakfast program established by section 4 
        of the Child Nutrition Act of 1966 (42 U.S.C. 1773);
            (2) the school lunch program established under the Richard 
        B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
            (3) the summer food service program for children 
        established under section 13 of the Richard B. Russell National 
        School Lunch Act (42 U.S.C. 1761); and
            (4) the child and adult care food program established under 
        section 17 of the Richard B. Russell National School Lunch Act 
        (42 U.S.C. 1766).
    (d) Addition of Geographic Preference.--In the case of the purchase 
of agricultural products, specifically fresh, dried or frozen fruits 
and vegetables and other specialty crops reflecting local preferences 
and support of local agriculture to the maximum extent practicable and 
appropriate, will be acquired from pre-approved local and regional 
vendors and distributors authorized by the Secretary who have agreed to 
supply eligible products to the above referenced schools and service 
institutions. The pre-approved vendors and distributors must 
demonstrate an ability to supply products from local growers and 
processors and comply with food safety standards developed by the 
Secretary and consistently provide products that meet standards of 
grade, size, freshness and quality as required by the Secretary or 
local procurement officer. This should not preclude the above 
referenced schools and service institutions from purchasing from 
potential local farmers in compliance with applicable state procurement 
laws and statutes.
    (e) Reporting.--A school, local educational agency, or other entity 
participating in one or more of the programs described in subsection 
(c) shall report to the Secretary of Agriculture if the school, local 
educational agency, or other entity pays more than 10 percent more than 
the lowest bid to purchase locally produced agricultural products in 
accordance with this section.
    (f) Review.--The Secretary of Defense and the Secretary of 
Agriculture shall periodically review the use of the geographic 
preference provided by this section to prevent fraud or abuse.

                           TITLE V--FORESTRY

SEC. 501. NATIONAL AND STATE FOREST PRIORITIZATION AND PLANNING.

    (a) National Priorities.--Within 12 months of passage of this 
legislation, the Secretary, in coordination with other Federal 
agencies, shall develop national priorities for the Nation's privately-
owned forest lands that include an explanation of the most pressing 
threats to the sustainability, management and conservation of private 
forests and expected roles for Federal agencies and USDA conservation 
and forest programs in partnering with States and private landowners to 
address identified threats.
    (b) State Forest Plans.--Within 36 months of passage of this 
legislation, each State forester, or equivalent State official as 
designated by the Governor of that State, in consultation with State 
conservationists, State wildlife agencies, and other appropriate 
agencies and stakeholders, shall develop a State forest plan that 
includes--
            (1) an outline of threats to the sustainability, 
        management, and conservation of privately-owned forests in that 
        State, with particular reference to those threats outlined in 
        the Secretary's national priorities that are relevant to the 
        respective State;
            (2) goals and strategies for addressing identified threats 
        and maintaining the productivity and capacity of forest 
        resources in that State, including how coordinated application 
        of USDA conservation and forest programs can address relevant 
        threats and support private landowners; and
            (3) a program to monitor and measure progress towards 
        reaching goals and implementing strategies in the plan.
    (c) Appropriations.--$10 million shall be provided to USDA and the 
States annually in fiscal years 2008, 2009, and 2010 to carry out this 
section, with such sums as necessary provided in future fiscal years 
for updating of plans as the Secretary shall deem appropriate.

SEC. 502. HEALTHY FORESTS RESERVE PROGRAM.

    (a) Methods of Enrollment.--Section 502(f)(1) of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended by 
striking subparagraph (C) and inserting the following new subparagraph:
                    ``(C) a permanent easement,''.
    (b) Funding.--Section 508 of such Act (16 U.S.C. 6578) is amended 
to read as follows:

``SEC. 508. FUNDING FOR HEALTHY FORESTS RESERVE PROGRAM.

    ``(a) Funding Source.--For each of fiscal years 2008 through 2013, 
the Secretary shall allocate $50 million from the funds, facilities, 
and authorities of the Commodity Credit Corporation to carry out the 
healthy forests reserve program, including the provision of technical 
assistance under the program.
    ``(b) Section 11 Cap.--The use of Commodity Credit Corporation 
funds under subsection (a) to provide technical assistance under the 
healthy forests reserve program shall not be considered an allotment or 
fund transfer from the Commodity Credit Corporation for purposes of the 
limitation on expenditures for technical assistance imposed by section 
11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).''.

SEC. 503. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the United States Forest Service recently projected 
        that 44 million acres of private forest will be developed 
        across the Nation through 2030, including many of the most 
        important remaining parcels within and adjacent to communities, 
        creating an urgent need for local governments to have the 
        financial resources to purchase the most publicly important 
        parcels as they come up for sale;
            (2) the rapidly expanding base of private forestland owners 
        created by forest parcelization includes many individuals with 
        no experience in forest stewardship, creating an urgent need 
        for demonstration sites for proper forest management, for which 
        many communities are using municipal or county forestland;
            (3) in fast growing communities of all sizes across the 
        Nation, remaining parcels of forestland play an essential role 
        in protecting public water supplies, leading many local 
        governments to purchase these lands for municipal or county 
        ownership;
            (4) rising rates of obesity and other public health 
        problems related to inactivity have been shown to be 
        ameliorated by improving public access to safe and pleasing 
        areas for outdoor recreation, leading many local governments to 
        purchase recreation lands for municipal or county ownership;
            (5) across the Nation, many communities of diverse types 
        and sizes are deriving significant financial benefit from 
        owning and managing municipal or county forestland as a source 
        of local revenue that also contributes significantly to the 
        health of the forest products economy at the local and national 
        levels;
            (6) public hunting, fishing, and trapping access and 
        subsequently participation have declined as forests and 
        watersheds nationwide are parcelized among a growing base of 
        private owners who often post their land against public use, 
        leading many municipalities and counties to purchase forestland 
        to guarantee access for sportsmen and women; and
            (7) there is a national interest in financially assisting 
        communities in the purchase of important forest parcels that 
        will maintain the diverse public benefits of forestland close 
        to or within all manner of communities nationwide, from close-
        knit rural communities to fast growing suburban and exurban 
        areas.
    (b) Establishment and Purpose.--
            (1) Establishment.--The Secretary of Agriculture shall 
        establish a program within the United States Forest Service, to 
        be known as the Community Forest and Open Space Conservation 
        Program, in cooperation with appropriate State and local units 
        of government for the purpose of enabling municipalities and 
        counties to acquire forest areas that are economically, 
        culturally, and environmentally important to that locality and 
        that are threatened by conversion to non-forest uses.
            (2) Purpose.--Areas purchased under this program are 
        intended to conserve community access to and benefit from 
        forests for a wide variety of public purposes that may include 
        but are not limited to model forest stewardship, sustainable 
        timber production, forest-based educational and cultural 
        activities, wildlife habitat, watershed protection, and public 
        access for outdoor recreation including hunting and fishing.
    (c) Interests in Land.--
            (1) Municipal or county ownership.--All properties acquired 
        using funds under this program shall be owned in fee by a 
        municipality or county.
            (2) Nonprofit ownership.--Upon request of a participating 
        State, designated nonprofit organizations operating within that 
        State may also own lands using funds under this program, 
        providing that the land is open for public access consistent 
        with the purposes and criteria of this program.
    (d) Implementation.--
            (1) Initial programs.--Not later than 1 year after the date 
        of enactment of this section, the Secretary shall establish at 
        least 1 State program in each of the New England, Mid-Atlantic, 
        Midwest, South, West, and Pacific Northwest regions of the 
        United States, upon application from a willing State in that 
        region. No State or region shall be compelled to participate in 
        the program.
            (2) Authority.--Authority for implementation of the 
        Community Forest Conservation and Open Space Program in each 
        participating State shall lie with the State forester, 
        equivalent State official, or other appropriate State natural 
        resource management agency as designated by the Governor of 
        that State.
            (3) Assessment of need.--Each participating State shall 
        prepare an Assessment of Need identifying geographic program 
        focus areas within that State and priority objectives for 
        conservation based on conditions and public needs in that 
        State. This requirement may be satisfied by inclusion as part 
        of an integrated statewide forest planning process for 
        application of Federal programs in that State.
    (e) Eligibility and Criteria.--
            (1) In general.--Within 1 year from the date of enactment 
        of this section and in consultation with State Forest 
        Stewardship Advisory Committees, State Urban and Community 
        Forestry Advisory Committees, and similar organizations, the 
        Secretary shall establish eligibility and ranking criteria for 
        projects to receive funding through this program.
            (2) Criteria.--Of land proposed to be included in the 
        Community Forest and Open Space Conservation Program, the 
        Secretary shall develop criteria that give priority to lands 
        which meet identified local open space and natural resource 
        needs as captured in town plans, regional plans, or other 
        relevant local, regional, or State planning documents, can be 
        effectively managed to model good forest stewardship for 
        private landowners, support forest-based educational programs 
        including vocational education in forestry, provide significant 
        protection of public water supplies or other waterways, can 
        offer long-term economic benefit to communities through 
        forestry, contain important wildlife habitat, provide 
        convenient public access for outdoor recreation including 
        hunting and fishing, and are threatened with conversion to non-
        forest uses. Special consideration shall be given to proposals 
        reflecting coordination and joint planning at regional scale 
        among 2 or more municipalities and/or counties.
    (f) Application and Ranking.--Any municipality or county that 
wishes to participate may prepare and submit a project application to 
acquire forest lands within a State's geographic program focus area to 
the Community Forest and Open Space Conservation Program in that State 
at such time in such form and containing such information as the 
Secretary may prescribe. This application must include certification 
from the appropriate unit(s) of local government that the project is 
consistent with any comprehensive plans for development adopted by such 
unit(s). States will rank all project submissions and submit to the 
Secretary. The Secretary shall create a national list ranking all 
submitted projects subject to the criteria described in section 5(b).
    (g) Duties of Owners.--
            (1) In general.--For lands acquired through this program, 
        the municipality or county shall be required to manage the 
        property in a manner that is consistent with the purposes for 
        which the land was purchased through the Community Forest and 
        Open Space Conservation Program and shall not convert such 
        property to other non-forest uses. Public access for compatible 
        recreational uses, as determined by the municipality or county, 
        shall be required.
            (2) Forest management plan.--Within 2 years of closing on 
        any purchase using funds under this program, a municipality or 
        county must complete a forest management plan for the purchased 
        property subject to the approval of the responsible State 
        agency. Management plans shall be created through a public 
        process that allows for community participation and input.
            (3) Reimbursement and penalty.--Should a municipality or 
        county sell land acquired with funds obtained through this 
        program, the municipality or county must reimburse the Federal 
        Government the full amount of original funding plus a penalty 
        equal to 50 percent of the current sale price or appraised 
        value, whichever is higher. Any municipality or county that 
        sells lands acquired using funds through this program shall no 
        longer be eligible for future grants from this program.
    (h) Cost Sharing.--
            (1) In general.--In accordance with terms and conditions 
        that the Secretary shall prescribe, costs for the acquisition 
        of lands or project costs shall be shared among participating 
        entities including State, county, municipal, and other 
        governmental units, landowners, corporations, or private 
        organizations. Such costs may include, but are not limited to, 
        those associated with planning, administration, property 
        acquisition, and property management.
            (2) Matching requirement.--The Federal share of total 
        project costs shall not exceed 50 percent for any project, 
        including any in-kind contribution. Payments under this section 
        shall be in accordance with Federal appraisal and acquisition 
        standards and procedures.
    (i) State Administration and Technical Assistance.--In order to 
assist municipalities and counties in model stewardship of lands 
acquired under this program, 10 percent of all funds appropriated each 
year for the Community Forest Conservation Program shall be allocated 
to the responsible State agencies in participating States to administer 
the program and to provide technical assistance to municipalities and 
counties for forest stewardship, including development and 
implementation of an approved forest management plan.
    (j) Appropriation.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.
    (k) Private Property Protection and Lack of Regulatory Effect.--
            (1) Recognition of authority to control land use.--Nothing 
        in this Act modifies any authority of Federal, State, or local 
        governments to regulate land use.
            (2) Participation of private property owners.--Nothing in 
        this Act requires the owner of any private property to 
        participate in private forest conservation, financial, or 
        technical assistance or any other programs established under 
        this Act.

                          TITLE VI--NUTRITION

                     Subtitle A--Food Stamp Program

SEC. 601. PREVENTING REDUCTIONS IN BENEFITS.

    Section 3(o) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)) is 
amended--
            (1) by striking ``on October 1, 1996,'' the second place it 
        appears; and
            (2) by striking ``on September'' and all that follows 
        through ``2002'', and inserting ``during the immediately 
        preceding fiscal year''.

SEC. 602. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME 
              AMERICANS.

    Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) 
is amended--
            (1) In subparagraph (a)(ii) by striking ``not less than 
        $134'' and all that follows to the end of the clause and 
        inserting the following:
                        ``not less than $156, $267, $220, and $137, 
                        respectively. For October 1, 2008, and each 
                        fiscal year thereafter, an amount that is equal 
                        to the amount from the previous fiscal year 
                        adjusted to the nearest lower dollar increment 
                        to reflect changes in the Consumer Price Index 
                        for all urban consumers published by the Bureau 
                        of Labor Statistics, for items other than food, 
                        for the twelve months ending the preceding June 
                        30.''; and
            (2) in subparagraph (B)(ii) by striking ``not less than 
        $269.'' and inserting the following:
                        ``not less than $313. For October 1, 2008, and 
                        each fiscal year thereafter, an amount that is 
                        equal to the amount from the previous fiscal 
                        year adjusted to the nearest lower dollar 
                        increment to reflect changes in the Consumer 
                        Price Index for All Urban Consumers published 
                        by the Bureau of Labor Statistics, for items 
                        other than food, for the twelve months ending 
                        the preceding June 30.''.

SEC. 603. CHILD CARE DEDUCTION.

    Section 5(e)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level 
of which shall be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent,''.

SEC. 604. EXCLUSION OF COMBAT-RELATED MILITARY PAY FROM COUNTABLE 
              INCOME.

    Section 5(d) of the Food Stamp Act of 2007 (7 U.S.C. 2014(d)) is 
amended--
            (1) by striking ``and (18)'' and inserting ``(18)''; and
            (2) by inserting before the period at the end the 
        following:
    ``(19) any additional payment received under chapter 5 of title 37, 
United States Code, by a member of the United States Armed Forces 
deployed to a designated combat zone for the duration of the member's 
deployment if the additional pay is the result of deployment to or 
while serving in a combat zone, and it was not received immediately 
prior to serving in the combat zone''.

SEC. 605. EXCLUSION OF RETIREMENT ACCOUNTS FROM COUNTABLE FINANCIAL 
              RESOURCES.

    (a) Retirement Accounts.--Section 5(g)(2)(B)(v) of the Food Stamp 
Act of 1977 (7 U.S.C. 2014(g)(2)(B)(v)), as amended by section 604, is 
amended by striking ``or retirement account (including an individual 
account)'' and inserting ``account''.
    (b) Mandatory and Discretionary Exclusions.--Section 5(g) of the 
Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the 
end the following:
            ``(8) Exclusion of retirement accounts from countable 
        financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of any funds in a plan, contract, or account, 
                described in section 401(a), 403(a), 403(b), 408, 408A, 
                457(b), or 501(c)(18) of the Internal Revenue Code of 
                1986 and the value of funds in a Federal Thrift Savings 
                Plan account as provided in section 8439 of title 5 of 
                the United States Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other retirement plans, contracts, or 
                accounts (as determined by the Secretary by 
                regulation).''.

SEC. 606. ALLOWABLE COUNTABLE RESOURCES.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended--
            (1) by striking ``(g)(1) The Secretary'' and inserting the 
        following:
    ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                    ``(A) In general.--The Secretary''.
            (2) in subparagraph (A) (as so designated by paragraph 
        (1))--
                    (A) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$2,000''; and
                    (B) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$3,000''; and
            (3) by adding at the end the following:
                    ``(B) Adjustment for inflation.--
                            ``(i) In general.--Beginning on October 1, 
                        2007, and each October 1 thereafter, the 
                        amounts in subparagraph (A) shall be adjusted 
                        to the nearest $100 increment to reflect 
                        changes for the 12-month period ending the 
                        preceding June in the Consumer Price Index for 
                        All Urban Consumers published by the Bureau of 
                        Labor Statistics of the Department of Labor.
                            ``(ii) Requirement.--Each adjustment under 
                        clause (i) shall be based on the unrounded 
                        amount for the prior 12-month period.''.

SEC. 607. FACILITATING SIMPLIFIED REPORTING.

    Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)(A)) 
is amended--
            (1) in paragraph (1)(a) by--
                    (A) striking ``reporting by'' and inserting 
                ``reporting'';
                    (B) inserting ``for periods shorter than four 
                months by'' after the clause designations in clauses 
                (I) and (ii); and
                    (C) inserting ``by'' after the clause designation 
                in clause (iii); and
            (2) in paragraph (3) by--
                    (A) striking ``Reports required to be filed monthly 
                under paragraph (1)'' and inserting ``Except as 
                provided in paragraph (1)(D)(ii), periodic reports 
                filed under paragraph (1)'';
                    (B) striking ``required to be filed monthly'';
                    (C) striking ``subject matter included in such 
                reports'' and inserting ``such households''; and
                    (D) inserting after the third sentence the 
                following: ``The State agency shall not be required to 
                act on information about such household received from 
                any source between such periodic reports unless the 
                information clearly indicates that the household is not 
                eligible, subject to standards established by the 
                Secretary, or the household requests an increase in 
                benefits.''.

SEC. 608. SIMPLIFYING WORK REQUIREMENT.

    (a) Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is 
amending by striking subsection (o).
    (b) Section 16(h)(1) of the food stamp act of 1977 (7 U.S.C. 
2025(h)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (vi)(II) by striking ``and'';
                    (B) in clause (vii) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following
                            ``(viii) for each of fiscal years 2008 
                        through 2012, $110,000,000.''; and
            (2) by striking subparagraph (E).

SEC. 609. MINIMUM BENEFIT.

    Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is 
amended by striking ``$10 per month.'' and inserting ``20 percent of 
the thrifty food plan for a household containing one member, as 
determined by the Secretary under section 3(o).''.

SEC. 610. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS.

    (a) Grants for Simple Application and Eligibility Determination 
Systems and Improved Access to Benefits.--Section 11(t)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(t)(1)) is amended by striking ``2007'' 
and inserting ``2012''.
    (b) Food Stamp Employment and Training.--Section 16(h)(1) of the 
Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A)(vii) by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''; and
            (2) in subparagraph (E)(i) by striking ``2002 through 
        2007'' and inserting ``2008 through 2012''.
    (c) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``2007'' and inserting ``2012''; and
            (2) in subparagraph (B)(ii) by striking ``2007'' and 
        inserting ``2012''.
    (d) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B(vi)) is amended by 
striking ``2007'' and inserting ``2012''.
    (e) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the 1st sentence 
by striking ``2003 through 2007'' and inserting ``2008 through 2012''.
    (f) Consolidated Block Grants for Puerto Rico and American Samoa.--
Section 19(a)(2)(A)(ii) of the Food Stamp Act of 1977 (7 U.S.C. 
2028(a)(2)(A)(ii)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 611. ACCOUNTABILITY FOR PAPERWORK REQUIREMENTS.

    Section 11(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(3)) is amended by inserting ``, Provided, That no application 
shall be denied for lack of verification unless the State agency 
determines that the household refused to comply with a request for 
verification made by an individual designated under paragraph (6)(B)'' 
after ``of an application,''.

SEC. 612. PERFORMANCE STANDARDS FOR BIOMETRIC TECHNOLOGY.

    Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is amended 
by adding at the end the following:
    ``(k) Limitation.--No State agency shall establish any additional 
requirements or conditions on households to receive benefits, other 
than those specified in this section.''.

SEC. 613. PREVENTING CONFLICTS OF INTEREST.

    Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is 
amended by inserting ``directly or indirectly'' before ``receive or 
benefit'' in the final sentence.

SEC. 614. LIMITATION ON CONTRACTING.

    Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 2025(a)) is 
amended by inserting at the end: ``The Secretary shall not make any 
payments for administrative costs under this or any other section of 
law relating to a contract that a State agency concluded in violation 
of this Act or the Secretary's regulations, whether or not the 
Secretary may approve the contract subsequent to its letting, or for 
any personnel costs to carry out functions specified under section 
11(e)(3) except by persons described under section 11(e)(6)(B).''.

SEC. 615. FAIRNESS FOR LEGAL IMMIGRANTS.

    Notwithstanding sections 401(a), 402(a), and 403(a) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(a), 1612(a), 1613(a)) and section 6(f) of the Food Stamp 
Act of 1977 (7 U.S.C. 2015(f)), persons who are lawfully residing in 
the United States shall be not be ineligible for food stamps on the 
basis of their immigration status or date of entry into the United 
States.

SEC. 616. CLARIFYING ELIGIBILITY.

    Section 421 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1631(d)(3)) is amended--
            (1) by striking ``to the extent that a qualified alien is 
        eligible under section 1612(a)(2)(J) of this title''; and
            (2) inserting ``to the extent that a child is a member of 
        the food stamp household''.

SEC. 617. ENSURING PROPER SCREENING.

    Section 11(e)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(2)(B)) is amended--
            (1) by redesignating clauses (vi) and (viii) as clauses 
        (vii) and (viii); and
            (2) by inserting the following after clause (v):
                            ``(vi) shall provide a method for 
                        implementing 8 U.S.C. 1631 that does not 
                        require any unnecessary information from 
                        persons  who may be  exempt from that  
                        provision;''.

SEC. 618. CLARIFICATION OF SIMPLIFIED ADMINISTRATIVE REPORTING 
              REQUIREMENT.

    Section 11(a) of the Food Stamp Act of 1977 (7 U.S.C. 2020(a)) is 
amended by adding the following at the end--
``The administrative reporting requirement under 8 U.S.C. 1631(e)(2) 
shall be satisfied by the submission of an aggregate report on the 
numbers of such exceptions granted each year.''.

                  Subtitle B--Other Nutrition Programs

SEC. 631. COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM.

    Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is 
amended--
            (1) by striking ``(a) purchase of commodities'' and all 
        that follows through ``through 2007'' and inserting the 
        following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--As provided in paragraph (2), for each 
        of fiscal years 2008 through 2012'';
            (2) by striking ``$140,000,000 of''; and
            (3) by inserting at the end:
            ``(2) Amounts.--The following amounts are made available to 
        carry out this subsection:
                    ``(A) for fiscal year 2008, $250,000,000;
                    ``(B) for each of fiscal years 2009 through 2012, 
                the dollar amount of commodities available in the 
                immediately preceding fiscal year adjusted by the 
                percentage by which the thrifty food plan has been 
                adjusted under section 3(o)(4) between June 30, 2007 
                and June 30 of the immediately preceding fiscal 
                year.''.

SEC. 632. REAUTHORIZE THE COMMODITY SUPPLEMENTAL FOOD PROGRAM (CSFP).

    Section 4(a) of the Agriculture and Consumer Protection Act of 1973 
(7 U.S.C. 612c note; Public Law 93-86) is amended in the first sentence 
by striking ``2007'' and inserting ``2012''.

SEC. 633. REAUTHORIZATION OF AND INCREASED FUNDING FOR COMMUNITY FOOD 
              PROJECT COMPETITIVE GRANTS.

    (a) Authority To Provide Assistance.--Section 25(b) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(b)) is amended--
            (1) in paragraph (1) by striking ``From amounts made 
        available to carry out this Act, the Secretary may'' and 
        inserting ``The Secretary shall''; and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Funding amounts.--From amounts made available to 
        carry out this Act, the Secretary shall use for fiscal year 
        2008 $30,000,000 and for each fiscal year thereafter the amount 
        available in the preceding year adjusted to reflect changes in 
        the in Consumer Price Index for all Urban Consumers published 
        by the Bureau of Labor Statistics for the twelve months ending 
        the preceding June 30.''.
    (b) Preference for Certain Projects.--Section 25(d) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(d)) is amended--
            (1) in paragraph (3) by striking ``or'' at the end;
            (2) in paragraph (4) by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) serve special project needs in areas of--
                    ``(A) transportation and processing for expanding 
                institutional and emergency food service demand for 
                local food;
                    ``(B) retail access to healthy foods in underserved 
                markets;
                    ``(C) integration of urban and metro-area food 
                production in food projects; and
                    ``(D) technical assistance for youth, socially 
                disadvantaged individuals, and limited resource 
                groups.''.
    (c) Matching Funds Requirements.--Section 25(e)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(e)(1)) is amended by striking ``50'' 
and inserting ``75''.
    (d) Term of Grant.--Section 25(f)(2) of the Food Stamp Act of 1977 
(7 U.S.C. 2034(f)(2)) is amended by striking ``3'' and inserting ``5''.
    (e) Funding.--Section 25(h)(4) of the Food Stamp Act of 1977 (7 
U.S.C. 2034(h)(4)) is amended--
            (1) by striking ``fiscal years 2003 through 2007'' and 
        inserting ``fiscal years 2008 through 2013''; and
            (2) by striking ``$200,000'' and inserting ``$500,000''.

                       TITLE VII--CROP INSURANCE

SEC. 701. REAUTHORIZATION OF AND ADDITIONAL FUNDING FOR AGRICULTURAL 
              MANAGEMENT ASSISTANCE PROGRAM.

    (a) Reauthorization.--Subsection (b)(4)(B) of section 524 of the 
Federal Crop Insurance Act (7 U.S.C. 1524) is amended--
            (2) in clause (ii), by striking ``fiscal years 2003 through 
        2007'' and inserting ``fiscal years 2008 through 2013''; and
            (3) in clause (iii), by striking ``fiscal years 2004 
        through 2007'' and inserting ``fiscal years 2008 through 
        2013''.
    (b) Funding Levels.--Such subsection is further amended--
            (1) in clause (ii), by striking ``$20,000,000'' and 
        inserting ``$40,000,000''; and
            (2) in clause (iii)--
                    (A) in subclause (I), by striking ``$14,000,000'' 
                and inserting ``$19,000,000'';
                    (B) in subclause (II), by striking ``$1,000,000'' 
                and inserting ``$2,000,000''; and
                    (C) in subclause (III), by striking ``$5,000,000'' 
                and inserting ``$19,000,000''.

SEC. 702. REAUTHORIZATION, EXPANSION, AND IMPROVEMENT OF ADJUSTED GROSS 
              REVENUE (AGR) INSURANCE PILOT PROGRAM.

    (a) Reauthorization.--Subsection (e)(1) of section 523 of the 
Federal Crop Insurance Act (7 U.S.C. 1524) is amended by striking 
``2004 reinsurance year'' and inserting ``2013 reinsurance year''.
    (b) Expansion.--Subsection (e)(2)(a) of section 523 of the Federal 
Crop Insurance Act (7 U.S.C. 1524) is amended by striking ``the 
Corporation shall include in the pilot program for the 2003 reinsurance 
year at least 8 counties in the State of California and at least 8 
counties in the State of Pennsylvania'' and inserting ``the Corporation 
shall include in the adjusted gross revenue insurance pilot programs 
(AGR and AGR-Lite) for the 2008 through 2013 reinsurance years all 
counties and States which meet the criteria for selection, pending 
required rating.''.
    (c) Specific Policy Improvements.--Subsection (e) of section 523 of 
the Federal Crop Insurance Act (7 U.S.C. 1524) is amended by adding at 
the end the following new paragraphs:
            ``(3) Coverage levels.--The Corporation shall, to the 
        maximum extent possible, provide higher coverage levels for the 
        adjusted gross revenue insurance pilot program including an 85 
        percent coverage level with a 100 percent payment rate.
            ``(4) Accurate reflection of risk.--The Corporation shall, 
        to the maximum extent possible, provide coverage levels for AGR 
        and AGR-Lite that accurately reflect a producers' risk under 
        conditions of increasing intended revenue.
            ``(5) Income floor.--In order to maintain adequate coverage 
        levels during low income years, the Corporation shall, to the 
        maximum extent possible, provide a 10 percent floor to declines 
        in a producers' 5-year income history, which is used in 
        determining coverage levels.
            ``(6) Inclusion of payments.--The Corporation shall, to the 
        maximum extent possible, include crop insurance payments and 
        Noninsured Crop Disaster Assistance as allowable income in 
        producers' 5-year income history, which is used to determine 
        premium rates.
            ``(7) Livestock risk analysis.--The Corporation shall 
        conduct additional analysis to more accurately reflect dairy 
        and livestock commodities.
            ``(8) Carryover commodities.--The Corporation shall, to the 
        maximum extent possible, provide clarity and direction 
        regarding the coverage and inventory rules for commodities with 
        carryover inventory, including but not limited to, Christmas 
        trees, shellfish, nursery, and livestock.
            ``(9) Quarantine and bio-terrorism.--The Corporation shall, 
        to the maximum extent possible, include the peril of quarantine 
        and bio-terrorism as insurable causes of loss.
            ``(10) Local market value.--
                    ``(A) The Corporation shall, to the maximum extent 
                possible, establish local market value for direct 
                marketers by using the best available estimate from 
                direct marketers rather than commercial buyers.
                    ``(B) The Corporation shall, to the maximum extent 
                possible, require that the value for estimating the 
                revenue for the producer's intention report for the 
                current year be determined at the time the intentions 
                report is filed.
            ``(11) Exclusion from income requirement.--The Corporation 
        shall remove the single crop income requirement, currently at 
        83.35 percent, that excludes potatoes from the Adjusted Gross 
        Revenue insurance program.
            ``(12) Definition of animals.--The Corporation shall revise 
        the definition of `animals' eligible for coverage under the 
        adjusted gross revenue insurance pilot program to ensure that 
        it is inclusive of production agriculture, specifically adding 
        fryers and shellfish which are licensed commercial producers 
        under the local approving authority in a certified growing 
        area. For purposes of this section, a producer who can document 
        an insurable interest in livestock shall be eligible for 
        inclusion in AGR and AGR-Lite policies.
            ``(13) Beginning farmers.--The Corporation shall develop a 
        pilot program that provides opportunities for beginning farmers 
        to utilize the adjusted gross revenue insurance program, such 
        as, providing special consideration for premium rates to be 
        established based on similar farms historical information.
            ``(14) Small farmers.--The Corporation shall develop a 
        pilot program that provides opportunities for small farmers to 
        utilize the adjusted gross revenue insurance program, such as, 
        providing streamlined, reasonably priced coverage.
            ``(15) Late fiscal year income tax filers.--The Corporation 
        shall, to the maximum extent possible, revise program 
        requirements to ensure that producers that file income taxes in 
        a fiscal year that does not match the calendar year are treated 
        equitably to calendar year tax filers, such as, payment of 
        premiums during or after the insurance year and requirements 
        for multiple years of a producer's intention report.
            ``(16) Commodities produced for feed.--The Corporation 
        shall, to the maximum extent possible, revise program 
        requirements to include commodities produced for on-farm feed 
        as an intended commodity.''.

SEC. 703. CROP INSURANCE INCENTIVES FOR BEGINNING FARMERS.

    Subsection (e)(2) of section 508 of the Federal Crop Insurance Act 
(7 U.S.C. 1524) is amended--
            (1) by inserting after paragraph (G) the following new 
        paragraph:
                    ``(H) The portion of the premium paid by the 
                Corporation, in subparagraphs (B), (C), (D), (E), (F), 
                and (G) shall be increased by 50 percent for beginning 
                farmers, as defined by USDA, in their first year of 
                farming and decreasing by 10 percentage points each 
                year for 5 years thereafter.''.

SEC. 704. CROP INSURANCE APPEALS.

    Subsection (j)(2) of section 508 of the Federal Crop Insurance Act 
(7 U.S.C. 1524) is amended--
            (1) in subparagraph (A) by striking ``only''; and
            (2) by adding at the end the following new paragraph:
                    ``(C) The Secretary shall establish alternative 
                claims procedures under which the Corporation, or an 
                approved provider, can settle appeals for denied claims 
                which utilizes the State committee of the Farm Service 
                Agency as a third-party arbiter.''.

SEC. 705. EXPANDED COVERAGE BASED ON HISTORICAL DATA.

    Subsection (d)(3) of section 522 of the Federal Crop Insurance Act 
(7 U.S.C. 1524) is amended by inserting after paragraph (G) the 
following new paragraph:
                    ``(H) to develop policies or other risk management 
                tools that provide protection for all crops and/or 
                commodities produced commercially within each county, 
                utilizing the producers historical production as the 
                basis for protection.''.

SEC. 706. COVERAGE AREA FLEXIBILITY.

    Subsection (a) of section 508 of the Federal Crop Insurance Act (7 
U.S.C. 1524) is amended by inserting after paragraph (8) the following 
new paragraph:
            ``(9) Coverage area flexibility.--Notwithstanding any other 
        provisions of this title, the Corporation shall provide 
        flexibility to producers to separate insurance units for each 
        FSA tract or to use section equivalents where mile-square 
        section surveys are not in effect.''.

SEC. 707. PROVISION OF ORGANIC INSURANCE PROGRAMS.

    (a) In General.--Section 508(d) of the Federal Crop Insurance Act 
(7 U.S.C. 1508) is amended by inserting after paragraph (c) the 
following:
    ``(d) Surcharge Prohibition.--The Corporation may not require 
producers to pay a premium surcharge for using scientifically sound 
sustainable and organic farming practices and systems.''.
    (b) Organic Commodities.--Section 508(c) of the Federal Crop 
Insurance Act (7 U.S.C. 1508) is amended by adding a new (5)(C)(v) as 
follows:
                            ``(v) in the case of organic commodities, 
                        shall be, no later than October 1, 2009, the 
                        expected or the actual organic market price of 
                        the agricultural commodity, as determined by 
                        the Corporation.''.

SEC. 708. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

    Section 524(a)(3) of the Federal Crop Insurance Act (7 U.S.C. 1524) 
is amended in subparagraph (C) by striking ``2'' and inserting ``3''.

                           TITLE VIII--DAIRY

SEC. 801. CONTINUATION OF THE MILK INCOME LOSS CONTRACT PROGRAM.

    (a) Continuation of Program; Payment Percentage Rate.--Section 
1502(c)(3)(C) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7982(c)(3)(C)) is amended by striking ``0 percent'' and 
inserting ``and ending on September 30, 2013, 45 percent''.
    (b) Maximum Payment Quantity.--Section 1502(d)(2)) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7982(d)(2)) is 
amended in the first sentence by striking ``2,400,000 pounds'' and 
inserting ``4,800,000 pounds''.
    (c) Contract Signup and Duration.--Section 1502 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is amended in 
subsections (f) and (g)(1) by striking ``September 30, 2007'' each 
place it appears and inserting ``September 30, 2013''.

SEC. 802. MINIMUM PRICE FOR CLASS I MILK UNDER FEDERAL MILK MARKETING 
              ORDERS.

    Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
608c(5)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended by adding at the end the following:
                    ``(P) Class i milk pricing.--
                            ``(i) Minimum price.--Notwithstanding any 
                        other provision of law, beginning on October 1, 
                        2007, the minimum price for Class I milk under 
                        each Federal milk marketing order issued under 
                        this subsection shall be $15.58 per 
                        hundredweight.
                            ``(ii) Adjustment for inflation.--
                                    ``(I) In general.--Beginning on 
                                October 1, 2008, and each October 1 
                                thereafter, the amount in clause (i) 
                                shall be adjusted by the percent that 
                                equals the total percentage change for 
                                the 12-month period ending the 
                                preceding June 30 in the Consumer Price 
                                Index for All Urban Consumers published 
                                by the Bureau of Labor Statistics of 
                                the Department of Labor.
                                    ``(II) Requirement.--Each 
                                adjustment under subclause (I) shall be 
                                based on the unrounded amount for the 
                                prior 12-month period.''.

SEC. 803. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking 
``2007'' and inserting ``2013''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``2007'' and inserting ``2013''.

SEC. 804. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 
(7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' and inserting 
``2013''.

SEC. 805. FEDERAL MILK MARKETING ORDERS.

    (a) 2-Class System for Classifying Milk.--
            (1) In general.--Not later than September 30, 2008, the 
        Secretary shall conduct a study of the economic benefits to 
        milk producers of establishing a 2-class system for classifying 
        milk under Federal milk marketing orders issued under section 
        8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), 
        reenacted with amendments by the Agricultural Marketing 
        Agreement Act of 1937, consisting of a fluid milk class and a 
        manufacturing grade milk class (with the price for both classes 
        determined using the component prices of butterfat, protein, 
        and other solids).
            (2) Amendment to orders.--
                    (A) In general.--If the Secretary determines (on 
                the basis of the study conducted under paragraph (1)) 
                that a 2-class system for classifying milk under 
                Federal milk marketing orders would have a positive 
                impact on milk producers, the Secretary submit a report 
                to the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate that includes the 
                text of proposed amendments to the Federal milk 
                marketing orders to implement the 2-class system for 
                classifying milk.
                    (B) Effective date.--The proposed amendments 
                described in subparagraph (A) shall take effect not 
                earlier than the date that is 180 days after the date 
                on which the report is submitted under that 
                subparagraph.
    (b) Deadline for Issuance of Orders.--Section 8c(4) of the 
Agricultural Adjustment Act (7 U.S.C. 608c(4)), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, is 
amended by striking ``After'' and inserting ``Not later than 30 days 
after''.
    (c) Advanced Pricing.--Section 8c(5) of the Agricultural Adjustment 
Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended by adding at the end the 
following:
                    ``(P) Advanced pricing.--Not later than September 
                30, 2007, in calculating the advanced price of Class I 
                butterfat milk and Class I and II skim milk under 
                Federal milk marketing orders, the Secretary shall use 
                the 4-week component prices that are used to calculate 
                prices for Class III and Class IV milk, as determined 
                by the Secretary.''.
    (d) Economic Impact Assessment.--The Secretary shall--
            (1) carry out a review of the milk-feed ratio during the 1-
        year period ending on the date of enactment of this Act; and
            (2) not later than September 30, 2008, and each time a 
        proposed change in the Federal milk marketing order formulas is 
        considered by the Secretary--
                    (A) assess the economic impact, over a 1- and 2-
                year period, of proposed changes in Federal milk 
                marketing order formulas on--
                            (i) milk supply;
                            (ii) farm profitability;
                            (iii) consumer demand; and
                            (iv) market prices;
                    (B) submit to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry a report that 
                describes the results of the assessment; and
                    (C) consider, and include in the record, the 
                results of the assessment before making a decision on 
                any proposed change to the Federal milk marketing order 
                formulas.

SEC. 806. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE FUND.

    (a) Loans.--
            (1) In general.--Section 310B(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1932(a)) is amended--
                    (A) by designating the first through fifth 
                sentences as paragraphs (1) through (5), respectively;
                    (B) by striking ``Sec. 310B. (a) The Secretary'' 
                and inserting the following:

``SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.

    ``(a) Loans.--
            ``(1) In general.--The Secretary'';
                    (C) by striking ``for the purposes of (1) 
                improving'' and inserting ``for the purposes of--
                    ``(A) improving'';
                    (D) by striking ``abatement and control, (2) the 
                conservation'' and inserting ``abatement and control;
                    ``(B) the conservation'';
                    (E) by striking ``rural areas, (3) reducing'' and 
                inserting ``rural areas;
                    ``(C) reducing'';
                    (F) by striking ``rural areas, and (4) to 
                facilitate economic'' and inserting ``rural areas;
                    ``(D) facilitating economic''; and
                    (G) by striking ``foreign trade.'' and inserting 
                ``foreign trade; and
                    ``(E) providing processors of dairy products with 
                incentives for investing in new equipment and 
                technologies by using not more than $15,000,000 each 
                fiscal year to--
                            ``(i) make loans to dairy processors and 
                        cooperatives to cover not more than 50 percent 
                        of the cost of acquisition and adoption of new 
                        equipment, equipment upgrades, and new 
                        technologies--
                                    ``(I) at a fixed rate of interest 
                                not to exceed the prime lending rate 
                                plus 1 percent; and
                                    ``(II) with a term of not to exceed 
                                15 years; and
                            ``(ii) guarantee loans made to dairy 
                        processors and cooperatives for the acquisition 
                        and adoption of new dairy equipment, equipment 
                        upgrades, and new technologies, at a guarantee 
                        rate of 90 percent.''.
            (2) Conforming amendments.--
                    (A) Section 307(a)(6)(B)(ii) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 
                1927(a)(6)(B)(ii)) is amended by striking ``clause (1) 
                of section 310B(a)'' and inserting ``section 
                310B(a)(1)(A)''.
                    (B) Section 333A(g)(1)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is 
                amended by striking ``310B(a)(1)'' and inserting 
                ``310(a)(1)(A)''.
                    (C) Section 381E(d)(3)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is 
                amended by striking ``310B(a)(1)'' and inserting 
                ``310B(a)(1)(A)''.
    (b) Lending Power for Dairy Processing Cooperatives.--Section 3.7 
of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at 
the end the following:
    ``(g) Dairy Processing Cooperatives.--
            ``(1) In general.--The banks for cooperatives may use not 
        more than $15,000,000 each fiscal year to provide dairy 
        processing cooperatives with working capital lines of credit 
        and accounts receivable financing for the purpose of accessing 
        export marketing opportunities for milk and milk products.
            ``(2) Limitations.--Financing provided by the banks for 
        cooperatives for a project under paragraph (1) may not exceed 
        the lesser of--
                    ``(A) $1,000,000; or
                    ``(B) 75 percent of the costs of carrying out the 
                project.
            ``(3) Term.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term of a line of credit 
                described in paragraph (1) shall not exceed 24 months.
                    ``(B) Revolving lines of credit.--A revolving line 
                of credit may be used for multiple transactions.
            ``(4) Due date.--An accounts receivable financing loan 
        under this subsection shall be due on the earlier of--
                    ``(A) the date on which the receivable is paid; or
                    ``(B) 180 days after the date of disbursement.
            ``(5) Use of financing.--
                    ``(A) Working capital line of credit financing.--
                Working capital line of credit financing under this 
                subsection may be used--
                            ``(i) to acquire inventory for the 
                        production of milk;
                            ``(ii) to pay direct and indirect costs 
                        (such as design, engineering, labor, and 
                        overhead costs) used for--
                                    ``(I) the manufacture or purchase 
                                of goods, including work-in-process, 
                                for the production of milk; or
                                    ``(II) for the provision of 
                                services for the production of milk; or
                            ``(iii) to support standby letters of 
                        credit used as bid bonds, performance bonds, or 
                        payment guarantees.
                    ``(B) Accounts receivable financing.--Accounts 
                receivable financing under this subsection may be used 
                to finance export accounts receivables for milk and 
                milk products sold on payment terms of not more than 
                180 days after the date of arrival at the port of 
                importation, if the finance export accounts receivable 
                have been insured by the Commodity Credit Corporation 
                or other guarantor approved by the Secretary.''.

SEC. 807. FEDERAL LOAN FORGIVENESS PROGRAM.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at the end the 
following:

         ``Subtitle P--Federal Dairy Education Loan Forgiveness

``SEC. 1495. SHORT TITLE.

    ``This subtitle may be cited as the `Federal Dairy Education Loan 
Forgiveness Act'.

``SEC. 1496. DEFINITIONS.

    ``In this subtitle:
            ``(1) Family dairy farm.--The term `family dairy farm' 
        means the real property of a dairy farm--
                    ``(A) owned by--
                            ``(i) one or more immediate family members; 
                        or
                            ``(ii) a family dairy farm corporation; and
                    ``(B) used for the production, for commercial 
                purposes, of milk or milk products.
            ``(2) Family dairy farm corporation.--The term `family 
        dairy farm corporation' means a corporation--
                    ``(A) at least 75 percent of the assets of which 
                are devoted to active involvement in farming; and
                    ``(B) at least 75 percent of each class of stock of 
                which is continuously owned by one or more immediate 
                family members.
            ``(3) Immediate family member.--The term `immediate family 
        member' means a spouse, child, stepchild, parent, stepparent, 
        grandparent, brother, stepbrother, sister, stepsister, or 
        similar relative-in-law of an owner of real property, as 
        determined by the Secretary.
            ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(5) Program.--The term `program' means the Federal dairy 
        education loan forgiveness program established under section 
        1497(a).
            ``(6) Qualified applicant.--The term `qualified applicant' 
        means a resident of the United States who, as determined by the 
        Secretary--
                    ``(A) holds a 2- or 4-year degree in a field 
                related to the production of agricultural products from 
                an institution of higher education;
                    ``(B) on or after January 1, 2008, has commenced 
                the first year of full-time ownership or operation of a 
                family dairy farm; and
                    ``(C) is the borrower of an outstanding qualified 
                loan as a result of pursuing a degree described in 
                subparagraph (A).
            ``(7) Qualified loan.--The term `qualified loan' means--
                    ``(A)(i) a loan made, insured, or guaranteed under 
                section 428 or 428H of the Higher Education Act of 1965 
                (20 U.S.C. 1078, 1078-8);
                    ``(ii) a Federal Direct Stafford Loan or a Federal 
                Direct Unsubsidized Stafford Loan made under section 
                455 of that Act (20 U.S.C. 1087e); or
                    ``(iii) a consolidation loan under section 428C of 
                that Act (20 U.S.C. 1078-3), or a Federal Direct 
                Consolidation Loan under section 455 of that Act (20 
                U.S.C. 1087e), to the extent that the amount of the 
                loan was used to repay a loan described in clause (i) 
                or (ii); and
                    ``(B) a loan under part B or D of title IV of that 
                Act (20 U.S.C. 1070 et seq.); or
                    ``(C) a loan under a guaranteed student loan 
                program of the Department.

``SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVENESS PROGRAM.

    ``(a) In General.--Subject to the availability of appropriations, 
the Secretary shall carry out a Federal dairy education loan 
forgiveness program under which the Secretary shall assume the 
obligation to repay an amount calculated in accordance with subsection 
(c) for one or more qualified loans made to eligible qualified 
applicants in accordance with this section.
    ``(b) Eligibility.--A qualified applicant shall submit to the 
Secretary an application and such documentation of continued 
eligibility as the Secretary determines to be appropriate.
    ``(c) Maximum Amount.--The maximum amount that the Secretary may 
repay under the program for each qualified applicant shall be equal to 
the average annual cost of tuition at land-grant colleges and 
universities (as determined by the Secretary annually), for each year 
that the qualified applicant--
            ``(1) is an owner or operator of a family dairy farm; and
            ``(2) has not otherwise received loan repayment on behalf 
        of the qualified applicant under this section or any other 
        Federal or State program.
    ``(d) Prohibition.--Nothing in this section authorizes the 
refunding of any repayment of a qualified loan.
    ``(e) Exclusion From Income.--Any payment to, or on behalf of, a 
qualified applicant under this subtitle shall not be included in the 
gross income of the qualified applicant for purposes of the Internal 
Revenue Code of 1986.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to carry out this subtitle.
            ``(2) Insufficient funds.--If the total amount of funds 
        appropriated to carry out this subtitle is insufficient to 
        provide loan repayment under the program for all eligible 
        qualified applicants, the Secretary shall provide loan 
        repayment to eligible qualified applicants on a pro rata 
        basis.''.

SEC. 808. MANDATORY REPORTING OF DAIRY COMMODITIES.

    (a) Definitions.--Section 272 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1637a) is amended to read as follows:

``SEC. 272. DEFINITIONS.

    ``In this subtitle:
            ``(1) Dairy commodity.--
                    ``(A) In general.--The term `dairy commodity' means 
                a product manufactured from milk or a milk-derived 
                ingredient.
                    ``(B) Inclusions.--The term `dairy commodity' 
                includes--
                            ``(i) fluid milk;
                            ``(ii) cheese;
                            ``(iii) butter;
                            ``(iv) nonfat dry milk;
                            ``(v) skim milk;
                            ``(vi) whey products;
                            ``(vii) dry proteins (such as a milk 
                        protein concentrate, casein, and a caseinate);
                            ``(viii) a lactose product; and
                            ``(ix) a fresh dairy product (such as 
                        yogurt and ice cream).
            ``(2) Dairy processor.--The term `dairy processor' means a 
        person or legal entity that commercially processes milk into 
        cheese, butter, nonfat dry milk, or other dairy solids.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.''.
    (b) Mandatory Reporting.--Section 273 of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1637b) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Daily Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary at least once each reporting day, not later 
        than 10:00 a.m. Central Time, for each sales transaction 
        involving a dairy commodity, information concerning--
                    ``(A) the sales price;
                    ``(B) the quantity sold;
                    ``(C) the location of the sales transaction; and
                    ``(D) product characteristics, including--
                            ``(i) moisture level;
                            ``(ii) packaging size;
                            ``(iii) grade;
                            ``(iv) if appropriate, fat or protein 
                        level;
                            ``(v) heat level for dried products; and
                            ``(vi) other defining product 
                        characteristics.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public not less frequently than once each reporting day, 
        categorized by location and product characteristics.
    ``(b) Weekly Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary, on the first reporting day of each week, not 
        later than 9:00 a.m. Central Time, for the prior week 
        information concerning--
                    ``(A) the sales prices for sales transactions 
                involving dairy commodities, categorized by product 
                characteristics; and
                    ``(B) the quantities of dairy commodities sold.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public on the first reporting day of the each week, not later 
        than 10:00 a.m. Central Time, categorized by location and 
        product characteristics.
            ``(3) Federal order prices.--The Secretary shall use weekly 
        prices published under paragraph (2) to calculate Federal milk 
        marketing order prices.
    ``(c) Monthly Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary, on the first reporting day of each month, not 
        later than 9:00 a.m. Central Time, the quantity of all dairy 
        commodities processed by the dairy processor during the prior 
        month.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public on the first reporting day of the each month, not later 
        than 10:00 a.m. Central Time, categorized by location and 
        product characteristics.''.

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. NATIONAL ORGANIC TRANSITION AND STEWARDSHIP INCENTIVE 
              PROGRAM.

    (a) Program Required.--
            (1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture (acting through the 
        Natural Resources Conservation Service) shall use $50,000,000 
        for each of the fiscal years 2008 through 2013, to remain 
        available until expended, to establish a national organic 
        agriculture conversion and stewardship incentives program to 
        assist producers developing and implementing organic 
        infrastructure and practices for conversion of land and animals 
        to certified organic production and for the adoption of 
        advanced organic farming conservation systems.
            (2) Establishment.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary shall establish a 
        program to reimburse producers for the costs of conversion and 
        technical assistance to organic food production as defined at 
        the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et 
        seq.)
            (3) Program.--Under the program established under paragraph 
        (2), the Secretary (acting through the Natural Resources 
        Conservation Service) shall use $50,000,000 for each of the 
        fiscal years 2008 through 2013 to assist producers developing 
        and implement infrastructure, practices and activities 
        necessary to conversion land and animals to meet the 
        requirements of the Organic Foods Production Act of 1990 (7 
        U.S.C. 6501 et seq.)
    (b) Incentive Payments.--During each of the 2008 through 2013 
fiscal years, the Secretary shall provide incentive payments to 
producers who enter into contracts with the Secretary under the 
program.
    (c) Eligible Practices and Activities.--The Secretary shall provide 
payments for:
            (1) Organic practices and activities during conversion to 
        certified organic production consistent with an approved 
        Organic System Plan to conversion to certified organic crops 
        and livestock production and handling under the national 
        organic production program established under the Organic Foods 
        Production Act of 1990 (7 U.S.C. 6501 et seq.).
            (2) Advanced organic practices consistent with an approved 
        Organic System Plan.
            (3) Organic animal welfare measures, so long as such 
        practices and activities are necessary to implement an organic 
        practice standard and are consistent with an approved plan to 
        transition to certified organic production.
            (4) Technical assistance, including the costs of developing 
        an approved Organic System Plan under this section.
            (5) Farm infrastructure necessary to implement organic 
        practice standards, including livestock watering facilities and 
        fencing, so long as such infrastructure is consistent with an 
        approved Organic System Plan.
            (6) Other measures the Secretary, after consulting with the 
        National Organic Technical Committee, determines are 
        appropriate.
    (d) Eligible Producers.--
            (1) Plan submission.--To be eligible for payments under 
        this section, the producer shall develop, submit and implement 
        an Organic System Plan that describes the conservation and 
        environmental purposes to be achieved through conservation 
        practices and activities and that demonstrates an existing 
        market or reasonable expectation of a future market for the 
        organic production and contains expected costs for 
        infrastructure and practices included in conversion.
            (2) Compliance.--Compliance with organic certification 
        requirements must be verified by a USDA-Accredited Certifying 
        Agent (ACA) in order for producers to qualify for payments.
            (3) Conversion payments for certified organic producers.--A 
        certified organic producer under the program shall be eligible 
        for payments to make the conversion to organic production for 
        land and livestock not previously certified organic.
    (e) Limitations on Payments.--
            (1) In general.--Except as provided in (2) and (3), an 
        individual or entity may not receive, directly or indirectly, 
        cost-share or incentive payments under this section that, in 
        the aggregate, exceed $10,000 per year, for a period not to 
        exceed four years.
            (2) Specialty crops.--In the case of an individual or 
        entity who annually produces three or more types of specialty 
        crops, the individual or entity may not receive, directly or 
        indirectly, cost-share or incentive payments under this section 
        that, in the aggregate, exceed $20,000 per year, for a period 
        not to exceed four years.
            (3) Dairy.--In the case of an individual or entity whose 
        principal farming enterprise is dairy, the individual or entity 
        may not receive, directly or indirectly, cost-share or 
        incentive payments under this section that, in the aggregate, 
        exceed $20,000 per year, for a period not to exceed four years.
    (f) Suspension Authority.--To ensure orderly and continued growth 
in organic farming, the following requirements apply:
            (1) Prior to each fiscal year and no later than October 1st 
        of each year, the Secretary shall publish organic commodity 
        specific assessments analyzing the domestic production and 
        consumption, import and export organic market demand and growth 
        potential for each organic commodity and the anticipated number 
        and total amount of new reimbursements for the following year 
        affecting each commodity.
            (2) The Secretary shall not enroll new producers under this 
        subsection if, for any particular agricultural commodity, any 
        new producers would produce an increased amount of that 
        agricultural commodity that the Secretary finds is reasonably 
        anticipated to affect the continuing economic viability of 
        farmers currently certified under the national organic 
        production program or would create unreasonable geographic 
        disparities in the distribution of reimbursements provided 
        under this section.
    (g) Technical and Educational Assistance.--The Secretary shall 
provide not less than 50 percent of the total program funds from the 
funds provided by this section for technical and educational 
assistance, of which not less than 50 percent shall be used for 
cooperative agreements with qualified non-profit and non-governmental 
organizations and consultants.
    (h) National Program Review.--In conjunction with the National 
Organic Technical Committee, the Secretary shall conduct a National 
Program Review, including public hearings. This review and shall be 
initiated within four years from the start of this program and shall 
evaluate and make recommendations; to resolve any program deficiencies, 
redress any under served states, commodities, regions and to ensure 
that the program is contributing positively to the profitability of 
small and intermediate producers and existing organic producers.
    (i) Appeals.--An applicant seeking conversion assistance under this 
section has the right to appeal an adverse decision by the Secretary 
with regard to an application for assistance, as provide in Section 275 
of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6991-7002).
    (j) Reporting.--Not later than March 1 of each year, the Secretary 
shall submit to Congress and the National Organic Technical Committee a 
report detailing State-by-State expenditures on conversion assistance, 
including the number of producers served by the program, the practices 
implemented, an assessment of the impacts of the program on organic 
food production, and recommended reforms, if any.

SEC. 902. NATIONAL ORGANIC TECHNICAL COMMITTEE.

    (a) Establishment.--The Secretary shall establish a National 
Organic Technical Committee to oversee development and implementation 
of the National Organic Conversion and Stewardship Incentive Program 
required by section 901 and to improve the organic agriculture 
interface with all other conservation programs and activities 
administered by the NRCS, including development of criteria for the 
approval of qualified organic technical advisors. The committee must 
take into account the regional and industry competitiveness and 
economic growth potential for industry sectors.
    (b) Membership.--The membership of the National Organic Technical 
Committee shall be comprised of:
            (1) Three organic farmers.
            (2) Two organic certifying agents.
            (3) One organic inspector.
            (4) One representative of an environmental organization 
        knowledgeable about organic agriculture.
            (5) One scientist with expertise in conservation planning.
            (6) One industry representative from organic retailer/
        wholesaler.

SEC. 903. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.

    Section 10606 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 6523) is amended to read as follows:

``SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST SHARE PROGRAM.

    ``(a) In General.--Of funds of the Commodity Credit Corporation, 
the Secretary of Agriculture (acting through the Agricultural Marketing 
Service) shall use $15,000,000 for fiscal year 2008, to remain 
available until expended, to establish a national organic certification 
cost-share program to assist producers and handlers of agricultural 
products in obtaining certification under the national organic 
production program established under the Organic Foods Production Act 
of 1990 (7 U.S.C. 6501 et seq.).
    ``(b) Federal Share.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall pay under this section not more than 75 percent of the 
        costs incurred by a producer or handler in obtaining 
        certification under the national organic production program, as 
        certified to and approved by the Secretary.
            ``(2) Maximum amount.--The maximum amount of a payment made 
        to a producer or handler under this section shall be $750.
    ``(c) Reporting.--The Secretary shall provide an annual report to 
Congress by March of each year, detailing the state-by-state 
expenditures under this program, including the number of producers and 
handlers served by the program in the previous fiscal year.
    ``(d) Recordkeeping Requirements.--
            ``(1) In general.--The Agricultural Marketing Service shall 
        keep accurate, up-to-date records of requests and disbursements 
        from the program, as well as to require accurate and consistent 
        record-keeping from the States (or other entities) receiving 
        program payments.
            ``(2) Federal requirements.--Within 30 days of the closing 
        date for States to request funding, the Agricultural Marketing 
        Service shall--
                    ``(A) enumerate the States requesting funding, 
                along with the amount of their requests; and
                    ``(B) distribute the funding to the States.
            ``(3) State requirements.--Annual funding requests from 
        each State should include data from the previous year's 
        program, including--
                    ``(A) a detailing of which entities requested 
                reimbursement, and how much those reimbursements were 
                for, as well as any discrepancies between requests and 
                fulfillments;
                    ``(B) data to back up increases in requests 
                expected in the coming year, including information from 
                certifiers, or other data showing growth projections; 
                and
                    ``(C) justifications as to why an annual request is 
                below the previous year's request.''.

SEC. 904. EXCLUSION OF 100 PERCENT OF GAIN ON SALES OF DEVELOPMENT 
              RIGHTS OR CONSERVATION EASMENTS ON AGRICULTURAL LAND TO 
              ELIGIBLE ENTITIES FOR CONSERVATION PURPOSES.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to treatment of capital gains) 
is amended by adding at the end the following new section:

``SEC. 1203. 100-PERCENT EXCLUSION OF GAIN ON SALES OF DEVELOPMENT 
              RIGHTS OR CONSERVATION EASEMENTS ON AGRICULTURAL LAND TO 
              ELIGIBLE ENTITIES FOR CONSERVATION PURPOSES.

    ``(a) Exclusion.--Gross income shall not include 100 percent of any 
gain from the sale of development rights or a conservation easement 
that is a permanent deed restriction and requires that the land subject 
to the deed restriction be made available for agricultural purposes 
if--
            ``(1) such land or interest in land was owned by the 
        taxpayer or a member of the taxpayer's family (as defined in 
        section 2032A(e)(2)) at all times during the 3-year period 
        ending on the date of the sale, and
            ``(2) such land or interest in land is being acquired by an 
        eligible entity which provides the taxpayer, at the time of 
        acquisition, a written letter of intent which shall include the 
        following statement: `The purchaser's intent is that this 
        acquisition will serve the conservation purpose specified in 
        clause (iii) (II) of section 170(h)(4)(A) of the Internal 
        Revenue Code of 1986 and the land will remain available for 
        agricultural production.'.
    ``(b) Eligible Entity.--For purposes of this section, the term 
`eligible entity' means--
            ``(1) any agency of the United States or of any State or 
        local government, or
            ``(2) any other organization that--
                    ``(A) is organized and at all times operated 
                principally for one or more of the conservation 
                purposes specified in clause (i), (ii), or (iii) of 
                section 170(h)(4)(A),
                    ``(B) is described in section 501(c)(3) and exempt 
                from tax under section 501(a), and
                    ``(C)(i) meets the requirements of section 
                509(a)(2), or
                    ``(ii) meets the requirements of section 509(a)(3) 
                and is controlled by an organization described in 
                section 509(a)(2).
    ``(c) Definitions.--For purposes of this section--
            ``(1) Farmland.--The term `farmland' includes all land 
        capable of being used for agricultural production and is 
        comprised of at least 50 percent of any combination of prime, 
        unique, or statewide important farmland.
            ``(2) Prime farmland.--The term `prime farmland' means land 
        that has the best combination of physical and chemical 
        characteristics for producing food, feed, fiber, forage, 
        oilseed, and other agricultural crops with minimum inputs of 
        fuel, fertilizer, pesticides, and labor, and without 
        intolerable soil erosion, as determined by the Secretary of 
        Agriculture. Prime farmland includes land that possesses such 
        characteristics but is being used currently to produce 
        livestock and timber. It does not include land already in or 
        committed to urban development or water storage.
            ``(3) Unique farmland.--The term `unique farmland' means 
        land other than prime farmland that is used for production of 
        specific high-value food and fiber crops, as determined by the 
        Secretary of Agriculture. It has the special combination of 
        soil quality, location, growing season, and moisture supply 
        needed to economically produce sustained high quality or high 
        yields of specific crops when treated and managed according to 
        acceptable farming methods. Examples of such crops include 
        citrus, tree nuts, olives, cranberries, fruits, and vegetables.
            ``(4) Statewide important farmland.--The term `Statewide 
        important farmland' means farmland, other than prime or unique 
        farmland, that is of Statewide or local importance for the 
        production of food feed, fiber, forage, or oilseed crops, as 
        determined by the appropriate State or unit of local government 
        agency or agencies, and that the Secretary of Agriculture 
        determines should be considered as farmland for the purposes of 
        this section.
            ``(5) Stock in holding corporations.--For purposes of this 
        section, the term `farmland or an interest in farmland' shall 
        include stock in any corporation, if the fair market value of 
        the corporation's farmland or interests in farmland equals or 
        exceeds 90 percent of the fair market value of all of such 
        corporation's assets at all times during the 3-year period 
        ending on the date of the sale.''.
    (b) Conforming Amendment.--The table of sections for part I of 
subchapter P of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 1203. 100-percent exclusion of gain on sales of development 
                            rights or conservation easements on 
                            agricultural land to eligible entities for 
                            conservation purposes.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales occurring on or after the date of enactment of this Act.

SEC. 905. ESTABLISHMENT OF RESEARCH GRANTS PROGRAM FOR PRODUCERS TO 
              IMPROVE SURVIVABILITY OF SPECIALITY CROPS AND LIVESTOCK.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
program to award grants to eligible entities to improve the 
survivability of United States specialty crops, forests, and domestic 
livestock against invasive species and emerging pathogenic organisms 
that have entered or are likely to enter the United States.
    (b) Eligible Entities.--The Secretary of Agriculture shall 
determine eligible entities for grants under this section. Such 
entities shall include the following:
            (1) Nonprofit United States trade organizations and 
        foundations.
            (2) Nonprofit State and regional organizations.
            (3) United States agricultural cooperatives, commodity 
        boards and commissions, university research and extension 
        programs.
            (4) Small United States businesses in the specialty crop, 
        forest, and livestock industries with requisite expertise.
    (c) Use of Funds.--Funds from grants under this program shall be 
used for one or more of the following:
            (1) Research that addresses plant breeding, genetics, and 
        genomics to improve specialty crop characteristics, such as 
        environmental responses and tolerances and pest and disease 
        management.
            (2) Research and efforts to identify threats from invasive 
        species and emerging pathogenic organisms that are detrimental 
        to United States specialty crops, United States forest species, 
        or domestic livestock, including early pest detection and 
        migration surveillance programs.
            (3) Development and implementation of regional, industry-
        specific strategic plans to prevent, eradicate, or contain 
        invasive species or emerging pathogenic organisms threats after 
        such threats have been identified.
            (4) Research regarding methods of prevention, eradication, 
        containment, and detection of invasive species or emerging 
        pathogenic organisms.
    (d) Funding.--
            (1) Amounts available.--Of the funds of the Commodity 
        Credit Corporation, the Secretary of Agriculture shall make 
        available $100,000,000 for each of fiscal years 2008 through 
        2013 to carry out this section.
            (2) Federal costs.--Federal costs shall not exceed 50 
        percent of the total cost of a research project funded under 
        this section.

SEC. 906. NATIONAL CLEAN PLANT NETWORK.

    (a) Establishment.--There is established in the Department of 
Agriculture, as part of the Cooperative State Research, Education, and 
Extension Service, a program to be known as the ``National Clean Plant 
Network''. The Secretary of Agriculture shall use the network to 
develop a sustainable national funding source for clean planting stock 
programs for horticultural crops determined by the Secretary to be of 
priority for the United States. Such funding shall be used to award 
grants to entities that have the expertise, facilities, and climate 
necessary to efficiently produce, maintain, and distribute healthy 
planting stock for specialty crops.
    (b) Priorities.--Section 1408A(c) of the Specialty Crops 
Competitiveness Act of 2004 (7 U.S.C. 3123a(c)) is amended by adding at 
the end the following:
            ``(4) Priorities for Federal research activities related to 
        United States specialty crops.''.
    (c) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary of Agriculture shall make available $5,000,000 for each of 
fiscal years 2008 through 2012 to carry out this section.

SEC. 907. EARLY PEST DETECTION AND SURVEILLANCE IMPROVEMENT PROGRAM.

    (a) Cooperative Agreements Authorized.--The Secretary of 
Agriculture shall enter into a cooperative agreement with each State 
department of agriculture that agrees to conduct early pest detection 
surveillance activities in accordance with guidelines established under 
the Cooperative Agricultural Pest Survey program of the Department of 
Agriculture. These activities of the Department of Agriculture of a 
state may include inspection and surveillance of domestic plant 
shipments between that State and other States, provided that such 
inspections do not mpede the reasonable flow of interstate commerce and 
any such activities resulting in quarantine of a shipment is solely 
based on sound science.
    (b) Consultation.--The Secretary shall consult with the National 
Plant Board and the National Association of State Departments of 
Agriculture in carrying out this section.
    (c) Base Funds Under Agreements.--The Secretary shall provide each 
State department of agriculture with which the Secretary enters into a 
cooperative agreement under this section not less than $250,000 for 
each of fiscal years 2008 through 2012.
    (d) Additional Funds; Special Considerations.--In addition to funds 
provided under subsection (c), the Secretary shall provide funds to a 
State department of agriculture that the Secretary determines is in a 
State that has a high risk of being affected by one or more pest, based 
on the following factors:
            (1) The number of international airports and maritime 
        facilities in that State.
            (2) The volume of international passenger and cargo entry 
        into that State.
            (3) The geographic location of that State and if such 
        location is conducive to agricultural pest and disease 
        establishment due to the climate or crop diversity of that 
        State.
            (4) Whether the Secretary has declared an emergency in that 
        State pursuant to section 442 of the Plant Protection Act (7 
        U.S.C. 7772) due to an agricultural pest or disease of Federal 
        concern.
            (5) Such other factors as the Secretary considers 
        appropriate.
    (e) Use of Funds.--
            (1) Pest detection and surveillance activities.--A State 
        department of agriculture that receives funds under this 
        section shall use the funds to carry out early pest detection 
        and surveillance activities to prevent the introduction of a 
        pest or facilitate the eradication of a pest.
            (2) Subagreements.--Notwithstanding this section, a State 
        department of agriculture may use funds received under 
        subsection (c) or (d) to enter into subagreements with 
        political subdivisions in such State that have legal 
        responsibilities relating to agricultural pest and disease 
        surveillance.
            (3) Treatment of funds.--Not more than 5 percent of the 
        funds provided under subsection (c) or (d) may be used for 
        administrative costs to carry out a cooperative agreement under 
        this section.
    (f) No Effect on Pilt Payments.--The receipt of funds by the 
Department of Agriculture under this section shall have no effect on 
the amount of any payment received by the State of such State 
Department of Agriculture under chapter 69 of title 31, United States 
Code.
    (g) Funding.--The Secretary shall use $50,000,000 of the funds of 
the Commodity Credit Corporation for each of fiscal years 2008 through 
2012 to carry out this section.
    (h) Definitions.--In this section:
            (1) State department of agriculture.--The term ``State 
        department of agriculture'' means an agency of a State that has 
        a legal responsibility to perform early pest detection and 
        surveillance activities.
            (2) Early pest detection and surveillance.--The term 
        ``early pest detection and surveillance'' means the full range 
        of activities undertaken to find newly introduced pests, 
        whether new to the United States or new to certain areas of the 
        United States, before the pests become etablished, or before 
        pest infestations become too large and costly to eradicate or 
        control.
            (3) Pest.--The term ``pest'' has the meaning given the term 
        ``plant pest'' in section 403(14) of the Plant Protection Act 
        (7 U.S.C. 7702(14)).
                                 <all>
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