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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2419 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 339
110th CONGRESS
  1st Session
                                H. R. 2419

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 4, 2007

                    Received and read the first time

                           September 5, 2007

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT

 
To provide for the continuation of agricultural programs through fiscal 
                   year 2012, 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 Bioenergy 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--COMMODITY PROGRAMS

Sec. 1001. Definitions.
       Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
                            direct payments and counter-cyclical 
                            payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Period of effectiveness.
  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
                            loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
                            acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
                            and seed cotton.
Sec. 1210. Deadline for repayment of marketing assistance loan for 
                            peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.
                           Subtitle C--Sugar

Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar 
                            organization.
Sec. 1303. Flexible marketing allotments for sugar.
                  Subtitle D--Dairy-Related Provisions

Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for 
                            nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.
                       Subtitle E--Administration

Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding 
                            loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.
Sec. 1512. Prevention of deceased persons receiving payments under farm 
                            commodity programs.
                         TITLE II--CONSERVATION

   Subtitle A--Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment 
                            control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.
           Subtitle B--Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.
              Subtitle C--Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment 
                            control.
Sec. 2302. Voluntary public access and habitat incentive program.
Sec. 2303. Muck soils conservation.
                 Subtitle D--Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 
                            1985.
Sec. 2402. Improved provision of technical assistance under 
                            conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers 
                            in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their 
                            responsibilities.
Sec. 2409. Payment limitations.
                  Subtitle E--Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling 
                            operations as income derived from farming 
                            for application of adjusted gross income 
                            limitation on eligibility for conservation 
                            programs.
Sec. 2502. Encouragement of voluntary sustainability practices 
                            guidelines.
Sec. 2503. Farmland resource information.
Sec. 2504. Pilot program for four-year crop rotation for peanuts.
                            TITLE III--TRADE

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. Reauthorization of McGovern-Dole International Food for 
                            Education and Child Nutrition Program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international 
                            standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.
Sec. 3015. Report on efforts to improve procurement planning.
Sec. 3016. International disaster assistance under the Foreign 
                            Assistance Act of 1961.
                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 4001. Renaming the food stamp program.
Sec. 4002. Definition of drug addiction or alcoholic treatment and 
                            rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Excluding combat related pay from countable income.
Sec. 4006. Increasing the standard deduction.
Sec. 4007. Excluding dependent care expenses.
Sec. 4008. Adjusting countable resources for inflation.
Sec. 4009. Excluding education accounts from countable income.
Sec. 4010. Excluding retirement accounts from countable income.
Sec. 4011. Deobligate food stamp coupons.
Sec. 4012. Allow for the accrual of benefits.
Sec. 4013. Increasing the minimum benefit.
Sec. 4014. State option for telephonic signature.
Sec. 4015. Review of major changes in program design.
Sec. 4016. Grants for simple application and eligibility determination 
                            systems and improved access to benefits.
Sec. 4017. Civil money penalties and disqualification of retail food 
                            stores and wholesale food concerns.
Sec. 4018. Major systems failures.
Sec. 4019. Funding of employment and training programs.
Sec. 4020. Reductions in payments for administrative costs.
Sec. 4021. Cash payment pilot projects.
Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition 
                            Assistance program nutrition education.
Sec. 4023. Nutrition education and promotion initiative to address 
                            obesity.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Consolidated block grants for Puerto Rico and American 
                            Samoa.
Sec. 4026. Study on comparable access to Secure Supplemental Nutrition 
                            Assistance Program benefits for Puerto 
                            Rico.
Sec. 4027. Reauthorization of community food project competitive 
                            grants.
Sec. 4028. Emergency food assistance program.
                   Subtitle B--Commodity Distribution

Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition 
                            projects.
Sec. 4203. Commodity distribution program.
            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to 
                            schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.
                       Subtitle D--Miscellaneous

Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404 Sense of the Congress.
                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.
Sec. 5004. Beginning farmer and rancher contract land sales program.
Sec. 5005. Loans to purchasers of highly fractioned lands.
                      Subtitle B--Operating Loans

Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are 
                            eligible for guaranteed assistance.
                 Subtitle C--Administrative Provisions

Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire 
                            homestead property to immediate family 
                            members of borrower-owner.
Sec. 5025. Rural development and farm loan program activities.
                        Subtitle D--Farm Credit

Sec. 5031. Bank for cooperatives voting stock.
Sec. 5032. Rural utility loans.
Sec. 5033. Farm Credit System Insurance Corporation.
Sec. 5034. Risk-based capital levels.
                      TITLE VI--RURAL DEVELOPMENT

Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community 
                            facilities.
Sec. 6006.  Emergency and imminent community water assistance grant 
                            program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. Grants to nonprofit organizations to finance the 
                            construction, refurbishing, and servicing 
                            of individually-owned household water well 
                            systems in rural areas for individuals with 
                            low or moderate incomes.
Sec. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in  providing loans and loan 
                            guarantees under the business and industry 
                            loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve 
                            quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural 
                            development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural 
                            areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance 
                            program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.
                          TITLE VII--RESEARCH

                     Subtitle A--General Provisions

Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the 
                            National Institute for Food and 
                            Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition 
                            research.
  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and 
                            agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 7207. Grants for research on production and marketing of alcohols 
                            and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research 
                            program.
Sec. 7210. Pilot research program to combine medical and agricultural 
                            research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional 
                            problems.
Sec. 7215. Authorization level of extension at 1890 land-grant 
                            colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
                            grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities 
                            at the District of Columbia Land Grant 
                            University.
Sec. 7218. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension 
                            activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and 
                            education.
Sec. 7224. Competitive grants for international agricultural science 
                            and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research, 
                            education, and extension programs.
Sec. 7226. Research equipment grants.
Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture Assistance Programs.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program 
                            for insular area institutions of higher 
                            education.
Sec. 7234. Hispanic Serving Institutions.
Sec. 7235. Specialty crops policy research institute.
Sec. 7236. Emphasis of Human Nutrition Initiative.
Sec. 7237. Grants to upgrade agriculture and food sciences facilities 
                            at insular area land-grant institutions.
   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.
Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 7401. Partnerships for high-value agricultural product quality 
                            research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive 
                            grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for 
                            developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research 
                            initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.
                         Subtitle E--Other Laws

Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching 
                            Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act 
                            (national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle 
                            research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing 
                            food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Hatch Act of 1987.
                   Subtitle F--Additional Provisions

Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology 
                            fellowship program.
Sec. 7607. Cost Recovery.
Sec. 7608. Organic Food and Agricultural Systems Funding.
                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term, State-wide assessments and strategies for forest 
                            resources.
Sec. 8003. Assistance to the Federated States of Micronesia, the 
                            Republic of the Marshall Islands, and the 
                            Republic of Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry 
                            Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.
                  Subtitle B--Amendments to Other Laws

Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.
                  Subtitle C--Miscellaneous Provisions

Sec. 8201. Hispanic-serving institution agricultural land national 
                            resources leadership program.
                            TITLE IX--ENERGY

Sec. 9001. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production 
                            plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased 
                            energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Biomass inventory report.
Sec. 9015. Future farmsteads program.
Sec. 9016. Sense of Congress on renewable energy.
Sec. 9017. Biodiesel fuel education program.
Sec. 9018. Biomass energy reserve.
Sec. 9019. Forest biomass for energy.
Sec. 9019. Community wood energy program.
Sec. 9020. Supplementing corn as an ethanol feedstock.
             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

                       Subtitle A--Honey and Bees

Sec. 10001. Annual report on response to honey bee colony collapse 
                            disorder.
                  Subtitle B--Horticulture Provisions

Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits, 
                            vegetables, and nuts to support domestic 
                            nutrition assistance programs.
Sec. 10103A. Additional section 32 funds to provide grants for the 
                            purchase and operation of urban gardens 
                            growing organic fruits and vegetables for 
                            the local population.
Sec. 10104. Independent evaluation of Department of Agriculture 
                            commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing 
                            orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.
                Subtitle C--Pest and Disease Management

Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly 
                            production.
                    Subtitle D--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.
                  Subtitle E--Miscellaneous Provisions

Sec. 10401. Grant program to improve movement of specialty crops.
Sec. 10402. Authorization of appropriations for market news activities 
                            regarding specialty crops.
Sec. 10403. Farmer marketing assistance program.
Sec. 10404. National Clean Plant Network.
Sec. 10405. Healthy food urban enterprise development program.
                   TITLE XI--MISCELLANEOUS PROVISIONS

                   Subtitle A--Federal Crop Insurance

Sec. 11001. Premiums and reinsurance requirements.
Sec. 11002. Catastrophic risk protection administrative fee.
Sec. 11003. Funding for reimbursements, contracting, risk management 
                            education, and information technology.
Sec. 11004. Reimbursement of research and development costs related to 
                            new crop insurance products.
Sec. 11005. Research and development contracts for organic production 
                            coverage improvements.
Sec. 11006. Targeting risk management education for beginning farmers 
                            and ranchers and certain other farmers and 
                            ranchers.
Sec. 11007. Crop insurance ineligibility related to crop production on 
                            noncropland.
Sec. 11008. Funds for data mining.
Sec. 11009. Noninsured crop assistance program.
Sec. 11010. Change in due date for Corporation payments for 
                            underwriting gains.
Sec. 11011. Sesame insurance pilot program.
Sec. 11012. National Drought Council and drought preparedness plans.
Sec. 11013. Payment of portion of premium for area revenue plans.
Sec. 11014. Share of risk.
Sec. 11015. Livestock Assistance.
Sec. 11016. Determination of certain sweet potato production.
                   Subtitle B--Livestock and Poultry

Sec. 11101. Sense of Congress regarding pseudorabies eradication 
                            program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.
Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding the voluntary control program 
                            for low pathogenic avian influenza.
Sec. 11106. Sense of Congress regarding the cattle fever tick 
                            eradication program.
   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

Sec. 11201. Outreach and technical assistance for socially 
                            disadvantaged farmers and ranchers and 
                            limited resource farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on 
                            Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged 
                            farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and 
                            limited resource farmers and ranchers in 
                            Census of Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.
               Subtitle D--Other Miscellaneous Provisions

Sec. 11301. Designation of separate cotton-producing States under 
                            Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural 
                            areas.
Sec. 11304. Permanent debarment from participation in Department of 
                            Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide 
                            products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for 
                            the Farm Service Agency, Rural Development 
                            Agency, and Natural Resources Conservation 
                            Service.
Sec. 11307. Regulation of exports of plants, plant products, biological 
                            control organisms, and noxious weeds.
Sec. 11308. Grants to reduce production of methamphetamines from 
                            anhydrous ammonia.
Sec. 11309. USDA Graduate School.
Sec. 11310. Prevention and investigation of payment and fraud and 
                            error.
Sec. 11311. Sense of Congress regarding food deserts, geographically 
                            isolated neighborhoods and communities with 
                            limited or no access to major chain grocery 
                            stores.
Sec. 11312. Pigford claims.
Sec. 11313. Comptroller general study of wastewater infrastructure near 
                            United States-Mexico border.
Sec. 11314. Elimination of statute of limitations applicable to 
                            collection of debt by administrative 
                            offset.
Sec. 11315. Pollinator protection.
Sec. 11316. Prohibition on use of live animals for marketing medical 
                            devices; fines under the Animal Welfare 
                            Act.
Sec. 11317. Protection of pets.
TITLE XII--PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED STATES 
                                TAXATION

Sec. 12001. Limitation on treaty benefits for certain deductible 
                            payments.
                     TITLE XIII--ADDITIONAL OFFSETS

Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief

Sec. 13001. Conservation of resources fees.
Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for 
                            the oil and gas industry.
Sec. 13003. Time for payment of corporate estimated taxes.
                   Subtitle B--Allocation of Offsets

Sec. 13011. Report on funds; rate of federal crop insurance.

                      TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.
       Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Adjustments to base acres.
Sec. 1102. Availability of direct payments.
Sec. 1103. Availability of counter-cyclical payments.
Sec. 1104. Availability of revenue-based counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
                            direct payments and counter-cyclical 
                            payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Period of effectiveness.
  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
                            loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
                            acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
                            and seed cotton.
Sec. 1210. Deadline for repayment of marketing assistance loan for 
                            peanuts.
Sec. 1211. Commodity quality incentive payments for healthy oilseeds.
                           Subtitle C--Sugar

Sec. 1301. Sugar program.
Sec. 1302. United States membership in the international sugar 
                            organization.
Sec. 1303. Flexible marketing allotments for sugar.
                  Subtitle D--Dairy-Related Provisions

Sec. 1401. Dairy product price support program.
Sec. 1402. Dairy forward pricing program.
Sec. 1403. Dairy export incentive program.
Sec. 1404. Revision of Federal marketing order amendment procedures.
Sec. 1405. Dairy indemnity program.
Sec. 1406. Extension of milk income loss contract program.
Sec. 1407. Dairy promotion and research program.
Sec. 1408. Report on Department of Agriculture reporting procedures for 
                            nonfat dry milk.
Sec. 1409. Federal Milk Marketing Order Review Commission.
                       Subtitle E--Administration

Sec. 1501. Administration generally.
Sec. 1502. Suspension of permanent price support authority.
Sec. 1503. Payment Limitations.
Sec. 1504. Adjusted gross income limitation.
Sec. 1505. Adjustments of loans.
Sec. 1506. Personal liability of producers for deficiencies.
Sec. 1507. Extension of existing administrative authority regarding 
                            loans.
Sec. 1508. Assignment of payments.
Sec. 1509. Tracking of benefits.
Sec. 1510. Upland cotton storage payments.
Sec. 1511. Government publication of cotton price forecasts.

SEC. 1001. DEFINITIONS.

    In this title:
            (1) Agricultural act of 1949.--The term ``Agricultural Act 
        of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 et 
        seq.), as in effect prior to the suspensions under section 171 
        of the Federal Agriculture Improvement and Reform Act of 1996 
        (7 U.S.C. 7301), section 1602(b) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 7992(b)), and section 1502(b) 
        of this Act.
            (2) Base acres.--The term ``base acres'', with respect to a 
        covered commodity on a farm, means the number of acres 
        established under sections 1101 and 1302 of the Farm Security 
        and Rural Investment Act of 2002 (7 U.S.C. 7911, 7952), as in 
        effect on the day before the date of the enactment of this Act, 
        subject to any adjustment under section 1101 of this Act.
            (3) Comparable united states quality.--The term 
        ``Comparable United States Quality'', with respect to upland 
        cotton, means upland cotton classified as Middling (M) 1\3/32\-
        inch cotton with a micronaire of 3.7 to 4.2, strength 30 grams 
        per tex, and uniformity of 83.
            (4) Counter-cyclical payment.--The term ``counter-cyclical 
        payment'' means a payment made to producers on a farm under 
        section 1103 or 1104.
            (5) Covered commodity.--The term ``covered commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland cotton, 
        rice, soybeans, peanuts, and other oilseeds.
            (6) Direct payment.--The term ``direct payment'' means a 
        payment made to producers on a farm under section 1102.
            (7) Effective price.--The term ``effective price'', with 
        respect to a covered commodity for a crop year, means the price 
        calculated by the Secretary under section 1103 to determine 
        whether counter-cyclical payments are required to be made for 
        that crop year under that section.
            (8) Extra long staple cotton.--The term ``extra long staple 
        cotton'' means cotton that--
                    (A) is produced from pure strain varieties of the 
                Barbadense species or any hybrid of the species, or 
                other similar types of extra long staple cotton, 
                designated by the Secretary, having characteristics 
                needed for various end uses for which United States 
                upland cotton is not suitable and grown in irrigated 
                cotton-growing regions of the United States designated 
                by the Secretary or other areas designated by the 
                Secretary as suitable for the production of the 
                varieties or types; and
                    (B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another type gin 
                for experimental purposes.
            (9) Far east price.--The term ``Far East price'' means the 
        Friday through Thursday average price quotation for the three 
        lowest-priced growths of upland cotton, as quoted for Middling 
        (M) 1\3/32\-inch cotton, delivered C/F Far East.
            (10) Loan commodity.--The term ``loan commodity'' means 
        wheat, corn, grain sorghum, feed barley, malt barley, oats, 
        upland cotton, extra long staple cotton, long grain rice, 
        medium grain rice, short grain rice, soybeans, peanuts, other 
        oilseeds, wool, mohair, honey, dry peas, lentils, and small 
        chickpeas.
            (11) Other oilseed.--The term ``other oilseed'' means a 
        crop of sunflower seed, rapeseed, canola, safflower, flaxseed, 
        mustard seed, crambe, sesame seed, or, if designated by the 
        Secretary, another oilseed.
            (12) Payment acres.--The term ``payment acres'', with 
        respect to a covered commodity on a farm, means 85 percent of 
        the base acres for the covered commodity, on which direct 
        payments and counter-cyclical payments are made.
            (13) Payment yield.--The term ``payment yield'' means the 
        yield established for direct payments and counter-cyclical 
        payments under section 1102 or 1302 of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 7912; 7952), as in 
        effect on the day before the date of the enactment of this Act, 
        for a farm for a covered commodity.
            (14) Producer.--
                    (A) In general.--The term ``producer'' means an 
                owner, operator, landlord, tenant, or sharecropper that 
                shares in the risk of producing a crop and is entitled 
                to share in the crop available for marketing from the 
                farm, or would have shared had the crop been produced.
                    (B) Hybrid seed.--In determining whether a grower 
                of hybrid seed is a producer, the Secretary shall--
                            (i) not take into consideration the 
                        existence of a hybrid seed contract; and
                            (ii) ensure that program requirements do 
                        not adversely affect the ability of the grower 
                        to receive a payment under this title.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (16) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, and any other territory or 
        possession of the United States.
            (17) Target price.--The term ``target price'' means the 
        price per bushel (or other appropriate unit in the case of 
        upland cotton, rice, peanuts, and other oilseeds) of a covered 
        commodity used to determine the payment rate for counter-
        cyclical payments under section 1103.
            (18) United states.--The term ``United States'', when used 
        in a geographical sense, means all of the States.
            (19) United states premium factor.--The term ``United 
        States Premium Factor'' means the percentage by which the 
        difference in the United States loan schedule premiums for 
        Strict Middling (SM) 1\1/8\-inch cotton and for M 1\3/32\-inch 
        exceeds the difference in the applicable premiums for 
        comparable international qualities delivered C/F Far East.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. ADJUSTMENTS TO BASE ACRES.

    (a) Treatment of Conservation Reserve Contract Acreage.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for covered 
        commodities for a farm whenever either of the following 
        circumstances occurs:
                    (A) A conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 1985 (16 
                U.S.C. 3831) with respect to the farm expires or is 
                voluntarily terminated.
                    (B) Cropland is released from coverage under a 
                conservation reserve contract by the Secretary.
            (2) Special payment rules.--For the crop year in which a 
        base acres adjustment under paragraph (1) is first made, the 
        owner of the farm shall elect to receive either direct payments 
        and counter-cyclical payments with respect to the acreage added 
        to the farm under this subsection or a prorated payment under 
        the conservation reserve contract, but not both.
    (b) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base acres for a 
        farm, together with the acreage described in paragraph (2), 
        exceeds the actual cropland acreage of the farm, the Secretary 
        shall reduce the base acres for 1 or more covered commodities 
        for the farm so that the sum of the base acres and acreage 
        described in paragraph (2) does not exceed the actual cropland 
        acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), the 
        Secretary shall include the following:
                    (A) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands reserve 
                program under chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3830 et seq.).
                    (B) Any other acreage on the farm enrolled in a 
                conservation program for which payments are made in 
                exchange for not producing an agricultural commodity on 
                the acreage.
            (3) Selection of acres.--The Secretary shall give the owner 
        of the farm the opportunity to select the base acres against 
        which the reduction required by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In applying 
        paragraph (1), the Secretary shall make an exception in the 
        case of double cropping, as determined by the Secretary.
    (c) Permanent Reduction in Base Acres.--
            (1) In general.--The owner of a farm may reduce, at any 
        time, the base acres for any covered commodity for the farm.
            (2) Administration.--The reduction shall be permanent and 
        made in the manner prescribed by the Secretary.

SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--For each of the 2008 through 2012 crop years 
of each covered commodity, the Secretary shall make direct payments to 
producers on farms for which payment yields and base acres are 
established.
    (b) Payment Rate.--The payment rates used to make direct payments 
with respect to covered commodities for a crop year are as follows:
            (1) Wheat, $0.52 per bushel.
            (2) Corn, $0.28 per bushel.
            (3) Grain sorghum, $0.35 per bushel.
            (4) Barley, $0.24 per bushel.
            (5) Oats, $0.024 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Rice, $2.35 per hundredweight.
            (8) Soybeans, $0.44 per bushel.
            (9) Other oilseeds, $0.0080 per pound.
            (10) Peanuts, $36.00 per ton.
    (c) Payment Amount.--The amount of the direct payment to be paid to 
the producers on a farm for a covered commodity for a crop year shall 
be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (d) Time for Payment.--
            (1) In general.--In the case of each of the 2008 through 
        2012 crop years, the Secretary may not make direct payments 
        before October 1 of the calendar year in which the crop of the 
        covered commodity is harvested.
            (2) Advance payments.--
                    (A) Option.--At the option of the producers on a 
                farm, up to 22 percent of the direct payment for a 
                covered commodity for any of the 2008 through 2011 crop 
                years shall be paid to the producers in advance.
                    (B) Month.--
                            (i) Selection.--The producers shall select 
                        the month within which the advance payment for 
                        a crop year will be made.
                            (ii) Options.--The month selected may be 
                        any month during the period beginning on 
                        December 1 of the calendar year before the 
                        calendar year in which the crop of the covered 
                        commodity is harvested through the month within 
                        which the direct payment would otherwise be 
                        made.
                            (iii) Change.--The producers may change the 
                        selected month for a subsequent advance payment 
                        by providing advance notice to the Secretary.
            (3) Repayment of advance payments.--If a producer on a farm 
        that receives an advance direct payment for a crop year ceases 
        to be a producer on that farm, or the extent to which the 
        producer shares in the risk of producing a crop changes, before 
        the date the remainder of the direct payment is made, the 
        producer shall be responsible for repaying the Secretary the 
        applicable amount of the advance payment, as determined by the 
        Secretary.
    (e) Prohibition on De Minimis Payments.--If the total direct 
payment to be paid to a producer on a farm for all covered commodities 
is less than $25.00, the Secretary shall not tender the direct payment 
to the producer.

SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--For each of the 2008 through 2012 crop years 
for each covered commodity, the Secretary shall make counter-cyclical 
payments to producers on farms for which payment yields and base acres 
are established with respect to the covered commodity if the Secretary 
determines that the effective price for the covered commodity is less 
than the target price for the covered commodity.
    (b) Effective Price.--For purposes of subsection (a), the effective 
price for a covered commodity is equal to the sum of the following:
            (1) The higher of the following:
                    (A) The national average market price received by 
                producers during the 12-month marketing year for the 
                covered commodity, as determined by the Secretary.
                    (B) The national average loan rate for a marketing 
                assistance loan for the covered commodity in effect for 
                the applicable period under subtitle B, except that, 
                for the purpose of calculating counter-cyclical 
                payments under this section for rice and barley, the 
                Secretary shall establish national average all rice and 
                all barley loan rates.
            (2) The payment rate in effect for the covered commodity 
        under section 1102 for the purpose of making direct payments 
        with respect to the covered commodity.
    (c) Target Price.--For purposes of subsection (a), the target 
prices for covered commodities shall be as follows:
            (1) Wheat, $4.15 per bushel.
            (2) Corn, $2.63 per bushel.
            (3) Grain sorghum, $2.57 per bushel.
            (4) Barley, $2.73 per bushel.
            (5) Oats, $1.50 per bushel.
            (6) Upland cotton, $0.70 per pound.
            (7) Rice, $10.50 per hundredweight.
            (8) Soybeans, $6.10 per bushel.
            (9) Other oilseeds, $0.1150 per pound.
            (10) Peanuts, $495.00 per ton.
    (d) Payment Rate.--The payment rate used to make counter-cyclical 
payments with respect to a covered commodity for a crop year shall be 
equal to the difference between--
            (1) the target price for the covered commodity; and
            (2) the effective price determined under subsection (b) for 
        the covered commodity.
    (e) Payment Amount.--If counter-cyclical payments are required to 
be paid under this section for any of the 2008 through 2012 crop years 
of a covered commodity, the amount of the counter-cyclical payment to 
be paid to the producers on a farm for that crop year shall be equal to 
the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on the farm.
            (3) The payment yield for the covered commodity for the 
        farm.
    (f) Time for Payments.--
            (1) General rule.--If the Secretary determines under 
        subsection (a) that counter-cyclical payments are required to 
        be made under this section for the crop of a covered commodity, 
        the Secretary shall make the counter-cyclical payments for the 
        crop as soon as practicable after the end of the 12-month 
        marketing year for the covered commodity.
            (2) Availability of partial payments.--If, before the end 
        of the 12-month marketing year for a covered commodity, the 
        Secretary estimates that counter-cyclical payments will be 
        required for the crop of the covered commodity, the Secretary 
        shall give producers on a farm the option to receive partial 
        payments of the counter-cyclical payment projected to be made 
        for that crop of the covered commodity.
            (3) Time for partial payments for 2008 through 2010 crop 
        years.--If the Secretary is required to make partial payments 
        available under paragraph (2) for a covered commodity for any 
        of the 2008 through 2010 crop years--
                    (A) the first partial payment shall be made after 
                completion of the first 6 months of the marketing year 
                for the covered commodity; and
                    (B) the final partial payment shall be made the 
                later of the following:
                            (i) As soon as practicable after the end of 
                        the 12-month marketing year for the covered 
                        commodity.
                            (ii) October 1 of the fiscal year starting 
                        in the same calendar year as the end of the 
                        marketing year.
            (4) Amount of partial payments.--
                    (A) First partial payment.--For each of the 2008 
                through 2010 crop years, the first partial payment 
                under paragraph (3) to the producers on a farm may not 
                exceed 40 percent of the projected counter-cyclical 
                payment for the covered commodity for the crop year, as 
                determined by the Secretary.
                    (B) Final payment.--The final payment for each of 
                the 2008 through 2010 crop years shall be equal to the 
                difference between--
                            (i) the actual counter-cyclical payment to 
                        be made to the producers for the covered 
                        commodity for that crop year; and
                            (ii) the amount of the partial payment made 
                        to the producers under subparagraph (A).
            (5) Repayment.--The producers on a farm that receive a 
        partial payment under this subsection for a crop year shall 
        repay to the Secretary the amount, if any, by which the total 
        of the partial payments exceed the actual counter-cyclical 
        payment to be made for the covered commodity for that crop 
        year.
    (g) Prohibition on De Minimis Payments.--If the total counter-
cyclical payment to be paid to a producer on a farm for all covered 
commodities is less than $25.00, the Secretary shall not tender the 
counter-cyclical payment to the producer.

SEC. 1104. AVAILABILITY OF REVENUE-BASED COUNTER-CYCLICAL PAYMENTS.

    (a) Availability and Election of Alternative Approach.--
            (1) Availability of revenue-based counter-cyclical 
        payments.--As an alternative to receiving counter-cyclical 
        payments under section 1103 with respect to each covered 
        commodity on a farm, the Secretary shall give the producers on 
        the farm an opportunity to elect to instead receive revenue-
        based counter-cyclical payments under this section for the 2008 
        through 2012 crop years.
            (2) Single election; time for election.--As soon as 
        practicable after the date of enactment of this Act, the 
        Secretary shall provide notice to producers regarding their 
        opportunity to make the election described in paragraph (1). 
        The notice shall include the following:
                    (A) Notice that the opportunity of the producers on 
                a farm to make the election is being provided only 
                once.
                    (B) Information regarding the manner in which the 
                election must be made and the time periods and manner 
                in which notice of the election must be submitted to 
                the Secretary.
            (3) Election deadline.--Within the time period and in the 
        manner prescribed pursuant to paragraph (2), the producers on a 
        farm shall submit to the Secretary notice of the election made 
        under paragraph (1).
            (4) Effect of failure to make election.--If the producers 
        on a farm fail to make the election under paragraph (1) or fail 
        to timely notify the Secretary of the election made, as 
        required by paragraph (3), the producers shall be deemed to 
        have made the election to receive counter-cyclical payments 
        under section 1103 for all covered commodities on the farm.
    (b) Payment Required.--In the case of producers on a farm who make 
the election under subsection (a) to receive revenue-based counter-
cyclical payments, the Secretary shall make revenue-based counter-
cyclical payments to such producers with respect to a covered commodity 
on the farm, if the Secretary determines that the national actual 
revenue per acre for the covered commodity is less than the national 
target revenue per acre for the covered commodity, as determined 
pursuant to this section.
    (c) National Actual Revenue Per Acre.--For each covered commodity 
for each of the 2008 through 2012 crop years, the Secretary shall 
establish a national actual revenue per acre by multiplying the 
national average yield for the given year by the higher of--
            (1) the national average market price received by producers 
        of the covered commodity during the 12-month marketing year 
        established by the Secretary; or
            (2) the loan rate for the covered commodity under section 
        1202, except that, for the purpose of calculating national 
        actual revenue per acre for rice and barley, the Secretary 
        shall establish national average all rice and all barley loan 
        rates.
    (d) National Target Revenue Per Acre.--The national target revenue 
per acre shall be, on a per acre basis, as follows:
            (1) Wheat, $149.92.
            (2) Corn, $344.12.
            (3) Grain Sorghum, $131.28.
            (4) Barley, $153.30.
            (5) Oats, $92.10
            (6) Upland cotton, $496.93.
            (7) Rice, $548.06.
            (8) Soybeans, $231.87.
            (9) Other oilseeds, $129.18.
            (10) Peanuts, $683.83.
    (e) National Payment Yield.--The national payment yield shall be as 
follows:
            (1) Wheat, 36.1 bushels per acre.
            (2) Corn, 114.4 bushels per acre.
            (3) Grain Sorghum, 58.2 bushels per acre.
            (4) Barley, 48.6 bushels per acre.
            (5) Oats, 49.8 bushels per acre.
            (6) Upland cotton, 634 pounds per acre.
            (7) Rice, 51.28 hundredweight per acre.
            (8) Soybeans, 34.1 bushels per acre.
            (9) Other oilseeds, 1167.6 pounds per acre.
            (10) Peanuts, 1.496 tons per acre.
    (f) National Payment Rate.--The national payment rate used to make 
revenue-based counter-cyclical payments for a crop year shall be the 
result of--
            (1) the difference between the national target revenue per 
        acre for the covered commodity and the national actual revenue 
        per acre for the covered commodity; divided by
            (2) the national payment yield for the covered commodity.
    (g) Payment Amount.--If revenue-based counter-cyclical payments are 
required to be paid for any of the 2008 through 2012 crop years of a 
covered commodity, the amount of the counter-cyclical payment to be 
paid to the producers on a farm for that crop year for the covered 
commodity shall be equal to the product of--
            (1) the national payment rate for the covered commodity;
            (2) the payment acres of the covered commodity on the farm; 
        and
            (3) the payment yield for counter-cyclical payments for the 
        covered commodity.
    (h) Time for Payments.--
            (1) General rule.--If the Secretary determines that 
        revenue-based counter-cyclical payments are required to be made 
        under this section for the crop of a covered commodity, the 
        Secretary shall make the counter-cyclical payments for the crop 
        as soon as practicable after the end of the 12-month marketing 
        year for the covered commodity.
            (2) Availability of partial payments.--If, before the end 
        of the 12-month marketing year for a covered commodity, the 
        Secretary estimates that revenue-based counter-cyclical 
        payments will be required for the crop of the covered 
        commodity, the Secretary shall give producers on a farm the 
        option to receive partial payments of the revenue-based 
        counter-cyclical payments projected to be made for that crop of 
        the covered commodity.
            (3) Time for partial payments for 2008 through 2010 crop 
        years.--If the Secretary is required to make partial payments 
        available under paragraph (2) for a covered commodity for any 
        of the 2008 through 2010 crop years--
                    (A) the first partial payment shall be made after 
                completion of the first 6 months of the marketing year 
                for the covered commodity; and
                    (B) the final partial payment shall be made the 
                later of the following:
                            (i) As soon as practicable after the end of 
                        the 12-month marketing year for the covered 
                        commodity.
                            (ii) October 1 of the fiscal year starting 
                        in the same calendar year as the end of the 
                        marketing year.
            (4) Amount of partial payments.--
                    (A) First partial payment.--For each of the 2008 
                through 2010 crop years, the first partial payment 
                under paragraph (3) to the producers on a farm may not 
                exceed 40 percent of the projected revenue-based 
                counter-cyclical payment for the covered commodity for 
                the crop year, as determined by the Secretary.
                    (B) Final payment.--The final payment for each of 
                the 2008 through 2010 crop years shall be equal to the 
                difference between--
                            (i) the actual revenue-based counter-
                        cyclical payments to be made to the producers 
                        for the covered commodity for that crop year; 
                        and
                            (ii) the amount of the partial payment made 
                        to the producers on a farm under subparagraph 
                        (A) for that crop year.
            (5) Repayment.--Producers on a farm that receive a partial 
        payment under this subsection for a crop year shall repay to 
        the Secretary the amount, if any, by which the total of the 
        partial payments exceed the actual revenue-based counter-
        cyclical payments to be made for the covered commodity for that 
        crop year.
    (i) Prohibition on De Minimis Payments.--If the total revenue-based 
counter-cyclical payment to be paid to a producer on a farm for all 
covered commodities is less than $25.00, the Secretary shall not tender 
the revenue-based counter-cyclical payment to the producer.

SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
              DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm may 
        receive direct payments or counter-cyclical payments with 
        respect to the farm, the producers shall agree, during the crop 
        year for which the payments are made and in exchange for the 
        payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.);
                    (B) to comply with applicable wetland protection 
                requirements under subtitle C of title XII of that Act 
                (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1106;
                    (D) to use the land on the farm, in a quantity 
                equal to the attributable base acres for the farm for 
                an agricultural or conserving use, and not for a 
                nonagricultural commercial or industrial use, as 
                determined by the Secretary; and
                    (E) to effectively control noxious weeds and 
                otherwise maintain the land in accordance with sound 
                agricultural practices, as determined by the Secretary.
            (2) Compliance.--The Secretary may issue such rules as the 
        Secretary considers necessary to ensure producer compliance 
        with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee or 
        owner, the Secretary may modify the requirements of this 
        subsection if the modifications are consistent with the 
        objectives of this subsection, as determined by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--
                    (A) In general.--Except as provided in paragraph 
                (2), a transfer of (or change in) the interest of the 
                producers on a farm in base acres for which direct 
                payments or counter-cyclical payments are made shall 
                result in the termination of the payments with respect 
                to the base acres, unless the transferee or owner of 
                the acreage agrees to assume all obligations under 
                subsection (a).
                    (B) Effective date.--The termination shall take 
                effect on the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct payment 
        or counter-cyclical payment dies, becomes incompetent, or is 
        otherwise unable to receive the payment, the Secretary shall 
        make the payment, in accordance with rules issued by the 
        Secretary.
    (c) Acreage Reports.--As a condition on the receipt of any benefits 
under this subtitle or subtitle B, the Secretary shall require 
producers on a farm to submit to the Secretary annual acreage reports 
with respect to all cropland on the farm.
    (d) Tenants and Sharecroppers.--In carrying out this subtitle, the 
Secretary shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for the 
sharing of direct payments and counter-cyclical payments among the 
producers on a farm on a fair and equitable basis.

SEC. 1106. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any commodity or 
crop may be planted on base acres on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an agricultural 
        commodity specified in paragraph (3) shall be prohibited on 
        base acres unless the commodity, if planted, is destroyed 
        before harvest.
            (2) Treatment of trees and other perennials.--The planting 
        of an agricultural commodity specified in paragraph (3) that is 
        produced on a tree or other perennial plant shall be prohibited 
        on base acres.
            (3) Covered agricultural commodities.--Paragraphs (1) and 
        (2) apply to the following agricultural commodities:
                    (A) Fruits.
                    (B) Vegetables (other than lentils, mung beans, and 
                dry peas).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not 
limit the planting of an agricultural commodity specified in paragraph 
(3) of that subsection--
            (1) in any region in which there is a history of double-
        cropping of covered commodities with agricultural commodities 
        specified in subsection (b)(3), as determined by the Secretary, 
        in which case the double-cropping shall be permitted;
            (2) on a farm that the Secretary determines has a history 
        of planting agricultural commodities specified in subsection 
        (b)(3) on base acres, except that direct payments and counter-
        cyclical payments shall be reduced by an acre for each acre 
        planted to such an agricultural commodity; or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a specific 
        agricultural commodity specified in subsection (b)(3), except 
        that--
                    (A) the quantity planted may not exceed the average 
                annual planting history of such agricultural commodity 
                by the producers on the farm in the 1991 through 1995 
                or 1998 through 2001 crop years (excluding any crop 
                year in which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical payments 
                shall be reduced by an acre for each acre planted to 
                such agricultural commodity.
    (d) Planting Transferability Pilot Project.--
            (1) Pilot project authorized.--In addition to the 
        exceptions provided in subsection (c), the Secretary shall 
        carry out a pilot project in the State of Indiana under which 
        paragraphs (1) and (2) of subsection (b) shall not limit the 
        planting of tomatoes grown for processing on up to 10,000 base 
        acres during each of the 2008 through 2012 crop years.
            (2) Contract and management requirements.--To be eligible 
        for selection to participate in the pilot project, a producer 
        must--
                    (A) have a contract to grow tomatoes for 
                processing; and
                    (B) agree to produce the tomatoes as part of a 
                program of crop rotation on the farm to achieve 
                agronomic and pest and disease management benefits.
            (3) Temporary reduction in base acres.--The base acres on a 
        farm for a crop year shall be reduced by an acre for each acre 
        planted to tomatoes under the pilot program.
            (4) Duration of reductions.--The reduction in the base 
        acres of a farm for a crop year under paragraph (3) shall 
        expire at the end of the crop year, unless the producers on the 
        farm elect to continue to participate in the pilot project for 
        the subsequent crop year.
            (5) Recalculation of base acres.--If the Secretary 
        recalculates base acres for a farm while the farm is included 
        in the pilot project, the planting and production of tomatoes 
        under the pilot project shall be considered to be the same as 
        the planting, prevented planting, or production of a covered 
        commodity. Nothing in this paragraph provides authority for the 
        Secretary to recalculate base acres for a farm.

SEC. 1107. PERIOD OF EFFECTIVENESS.

    This subtitle shall be effective beginning with the 2008 crop year 
of each covered commodity through the 2012 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
              LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2008 through 2012 crops 
        of each loan commodity, the Secretary shall make available to 
        producers on a farm nonrecourse marketing assistance loans for 
        loan commodities produced on the farm.
            (2) Terms and conditions.--The marketing assistance loans 
        shall be made under terms and conditions that are prescribed by 
        the Secretary and at the loan rate established under section 
        1202 for the loan commodity.
    (b) Eligible Production.--The producers on a farm shall be eligible 
for a marketing assistance loan under subsection (a) for any quantity 
of a loan commodity produced on the farm.
    (c) Treatment of Certain Commingled Commodities.--In carrying out 
this subtitle, the Secretary shall make loans to producers on a farm 
that would be eligible to obtain a marketing assistance loan, but for 
the fact the loan commodity owned by the producers on the farm 
commingled with loan commodities of other producers in facilities 
unlicensed for the storage of agricultural commodities by the Secretary 
or a State licensing authority, if the producers obtaining the loan 
agree to immediately redeem the loan collateral in accordance with 
section 166 of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7286).
    (d) Compliance With Conservation and Wetlands Requirements.--As a 
condition of the receipt of a marketing assistance loan under 
subsection (a), the producer shall comply with applicable conservation 
requirements under subtitle B of title XII of the Food Security Act of 
1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection 
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 
et seq.) during the term of the loan.
    (e) Peanut-Related Loan Provisions.--
            (1) Options for obtaining loans.--A marketing assistance 
        loan for peanuts under this section and loan deficiency 
        payments for peanuts under section 1205 may be obtained at 
        option of the producers on a farm through--
                    (A) a designated marketing association or marketing 
                cooperative of producers that is approved by the 
                Secretary; or
                    (B) the Farm Service Agency.
            (2) Storage of loan peanuts.--As a condition on the 
        Secretary's approval of an individual or entity to provide 
        storage for peanuts for which a marketing assistance loan is 
        made under this section, the individual or entity shall agree--
                    (A) to provide such storage on a nondiscriminatory 
                basis; and
                    (B) to comply with such additional requirements as 
                the Secretary considers appropriate to accomplish the 
                purposes of this section and promote fairness in the 
                administration of the benefits of this section.
            (3) Marketing.--A marketing association or cooperative may 
        market peanuts for which a loan is made under this section in 
        any manner that conforms to consumer needs, including the 
        separation of peanuts by type and quality.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Loan Rates.--The loan rate for a marketing assistance loan 
under section 1201 for a loan commodity shall be equal to the 
following:
            (1) In the case of wheat, $2.94 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of malt barley, $2.50 per bushel.
            (5) In the case of feed barley, $1.90 per bushel.
            (6) In the case of oats, $1.46 per bushel.
            (7) In the case of the base quality of upland cotton, $0.52 
        per pound.
            (8) In the case of extra long staple cotton, $0.7977 per 
        pound.
            (9) In the case of long grain rice, $6.50 per 
        hundredweight.
            (10) In the case of medium grain rice and short grain rice, 
        $6.50 per hundredweight.
            (11) In the case of soybeans, $5.00 per bushel.
            (12) In the case of other oilseeds, $0.1070 per pound for 
        each of the following kinds of oilseeds:
                    (A) Sunflower seed.
                    (B) Rapeseed.
                    (C) Canola.
                    (D) Safflower.
                    (E) Flaxseed.
                    (F) Mustard seed.
                    (G) Crambe.
                    (H) Sesame seed.
                    (I) Other oilseeds designated by the Secretary.
            (13) In the case of dry peas, $5.40 per hundredweight.
            (14) In the case of lentils, $11.28 per hundredweight.
            (15) In the case of small chickpeas, $8.54 per 
        hundredweight.
            (16) In the case of peanuts, $355.00 per ton.
            (17) In the case of graded wool, $1.10 per pound.
            (18) In the case of nongraded wool, $0.40 per pound.
            (19) In the case of honey, $0.60 per pound.
            (20) In the case of mohair, $4.20 per pound.
    (b) Single County Loan Rate for Other Oilseeds.--The Secretary 
shall establish a single loan rate in each county for each kind of 
other oilseeds described in subsection (a)(12).
    (c) Special Rules for Corn and Grain Sorghum.--
            (1) Single county and national average loan rate.--The 
        Secretary shall--
                    (A) establish a single county loan rate for corn 
                and grain sorghum in each county;
                    (B) establish a single national average loan rate 
                for corn and grain sorghum; and
                    (C) determine each county loan rate and the 
                national average loan rate for corn and grain sorghum 
                and any and all other program loan rates applicable to 
                corn and grain sorghum from a data set that includes 
                prices for both commodities.
            (2) Administration.--With respect to corn and grain 
        sorghum, the Secretary--
                    (A) shall administer the applicable loan, marketing 
                loan, counter-cyclical payment, and related programs 
                from a single loan rate for corn and grain sorghum that 
                is identical in each individual county;
                    (B) shall provide that any adjustment in the loan 
                rate for location shall be determined and applied on 
                the basis of the combined data set such that any 
                transportation adjustment shall be the same for corn 
                and grain sorghum in each individual county; and
                    (C) may provide for adjustments for grade, type, 
                and quality as appropriate for the corn or grain 
                sorghum involved in each specific transaction.

SEC. 1203. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity, a marketing 
assistance loan under section 1201 shall have a term of 9 months 
beginning on the first day of the first month after the month in which 
the loan is made.
    (b) Extensions Prohibited.--The Secretary may not extend the term 
of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule.--The Secretary shall permit the producers on a 
farm to repay a marketing assistance loan under section 1201 for a loan 
commodity (other than upland cotton, long grain rice, medium grain 
rice, short grain rice, extra long staple cotton, and confectionery and 
each other kind of sunflower seed (other than oil sunflower seed)) at 
the lesser of the following:
            (1) The loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283)).
            (2) A rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) minimize the cost incurred by the Federal 
                Government in storing the commodity;
                    (D) allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally; and
                    (E) minimize discrepancies in marketing loan 
                benefits across State boundaries and across county 
                boundaries, if applicable.
    (b) Repayment Rates for Upland Cotton and Rice.--The Secretary 
shall permit producers to repay a marketing assistance loan under 
section 1201 for upland cotton, long grain rice, medium grain rice, and 
short grain rice at a rate that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283)); or
            (2) the prevailing world market price for the commodity 
        (adjusted to United States quality and location), as determined 
        by the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a 
marketing assistance loan for extra long staple cotton shall be at the 
loan rate established for the commodity under section 1202, plus 
interest (determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Prevailing World Market Price.--For purposes of this section 
and section 1207, the Secretary shall prescribe by regulation--
            (1) a formula to determine the prevailing world market 
        price for upland cotton, which shall be based on the Far East 
        price of upland cotton;
            (2) a formula to determine the prevailing world market 
        price for--
                    (A) long grain rice; and
                    (B) medium and short grain rice;
            (3) a mechanism by which the Secretary will announce 
        periodically the prevailing world market price for upland 
        cotton, long grain rice, and medium and short grain rice; and
            (4) a mechanism by which the Secretary will make the 
        adjustments, required by subsection (e), to the prevailing 
        world market price for upland cotton, long grain rice, and 
        medium and short grain rice.
    (e) Adjustment of Prevailing World Market Price for Upland Cotton 
and Rice.--
            (1) Rice.--The prevailing world market price for long 
        grain, medium grain, and short grain rice determined in 
        subsection (d) shall be adjusted to United States quality and 
        location.
            (2) Cotton.--The prevailing world market price for upland 
        cotton, determined in subsection (d) shall be--
                    (A) adjusted to United States quality and location, 
                with such quality adjustment to include--
                            (i) any existing United States loan 
                        schedule premiums for Comparable United States 
                        Quality; and
                            (ii) a reduction equal to any United States 
                        Premium Factor to upland cotton of a quality 
                        higher than Middling (M) 1\3/32\-inch; and
                    (B) adjusted to take into account average costs to 
                market the commodity, including average transportation 
                costs, as determined by the Secretary.
    (f) Additional Adjustment Authority Regarding Prevailing World 
Market Price for Upland Cotton.--
            (1) In general.--During the period beginning on the date of 
        the enactment of this Act through July 31, 2013, the Secretary 
        may further adjust the prevailing world market price for upland 
        cotton (adjusted under subsection (d)) if the Secretary 
        determines such adjustment necessary--
                    (A) to minimize potential loan forfeitures;
                    (B) to minimize the accumulation of stocks of the 
                commodity by the Federal Government;
                    (C) to allow the commodity produced in the United 
                States to be marketed freely and competitively, both 
                domestically and internationally;
                    (D) to ensure that United States cotton is 
                competitive in world markets; and
                    (E) to ensure an appropriate transition between 
                current-crop and forward-crop price quotations, except 
                that the Secretary may use forward-crop price 
                quotations prior to July 31 of the current marketing 
                year only if there are less than three current-crop 
                price quotations and only if such forward-crop price 
                quotation is the lowest such quotation available.
            (2) Guidelines for additional adjustment.--In further 
        adjusting the prevailing world market price for upland cotton 
        under this subsection, the Secretary shall establish a 
        mechanism for determining and announcing such adjustments in 
        order to avoid undue disruption in the United States market.
    (g) Repayment Rates for Confectionery and Other Kinds of Sunflower 
Seeds.--The Secretary shall permit the producers on a farm to repay a 
marketing assistance loan under section 1201 for confectionery and each 
other kind of sunflower seed (other than oil sunflower seed) at a rate 
that is the lesser of--
            (1) the loan rate established for the commodity under 
        section 1202, plus interest (determined in accordance with 
        section 163 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7283)); or
            (2) the repayment rate established for oil sunflower seed.
    (h) Quality Grades for Dry Peas, Lentils, and Small Chickpeas.--The 
loan repayment rate for dry peas, lentils, and small chickpeas shall be 
based on the quality grades for the applicable commodity.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--
            (1) In general.--Except as provided in subsection (d), the 
        Secretary may make loan deficiency payments available to 
        producers on a farm that, although eligible to obtain a 
        marketing assistance loan under section 1201 with respect to a 
        loan commodity, agree to forgo obtaining the loan for the 
        commodity in return for loan deficiency payments under this 
        section.
            (2) Unshorn pelts, hay, and silage.--
                    (A) Marketing assistance loans.--Subject to 
                subparagraph (B), nongraded wool in the form of unshorn 
                pelts and hay and silage derived from a loan commodity 
                are not eligible for a marketing assistance loan under 
                section 1201.
                    (B) Loan deficiency payment.--Effective for the 
                2008 through 2012 crop years, the Secretary may make 
                loan deficiency payments available under this section 
                to producers on a farm that produce unshorn pelts or 
                hay and silage derived from a loan commodity.
    (b) Computation.--A loan deficiency payment for a loan commodity or 
commodity referred to in subsection (a)(2) shall be computed by 
multiplying--
            (1) the payment rate determined under subsection (c) for 
        the commodity; by
            (2) the quantity of the commodity produced by the eligible 
        producers, excluding any quantity for which the producers 
        obtain a marketing assistance loan under section 1201.
    (c) Payment Rate.--
            (1) In general.--In the case of a loan commodity, the 
        payment rate shall be the amount by which--
                    (A) the loan rate established under section 1202 
                for the loan commodity; exceeds
                    (B) the rate at which a marketing assistance loan 
                for the loan commodity may be repaid under section 
                1204.
            (2) Unshorn pelts.--In the case of unshorn pelts, the 
        payment rate shall be the amount by which--
                    (A) the loan rate established under section 1202 
                for ungraded wool; exceeds
                    (B) the rate at which a marketing assistance loan 
                for ungraded wool may be repaid under section 1204.
            (3) Hay and silage.--In the case of hay or silage derived 
        from a loan commodity, the payment rate shall be the amount by 
        which--
                    (A) the loan rate established under section 1202 
                for the loan commodity from which the hay or silage is 
                derived; exceeds
                    (B) the rate at which a marketing assistance loan 
                for the loan commodity may be repaid under section 
                1204.
    (d) Exception for Extra Long Staple Cotton.--This section shall not 
apply with respect to extra long staple cotton.
    (e) Effective Date for Payment Rate Determination.--The Secretary 
shall determine the amount of the loan deficiency payment to be made 
under this section to the producers on a farm with respect to a 
quantity of a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection (c) as of the 
date the producers request the payment.

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
              ACREAGE.

    (a) Eligible Producers.--
            (1) In general.--Effective for the 2008 through 2012 crop 
        years, in the case of a producer that would be eligible for a 
        loan deficiency payment under section 1205 for wheat, barley, 
        or oats, but that elects to use acreage planted to the wheat, 
        barley, or oats for the grazing of livestock, the Secretary 
        shall make a payment to the producer under this section if the 
        producer enters into an agreement with the Secretary to forgo 
        any other harvesting of the wheat, barley, or oats on that 
        acreage.
            (2) Grazing of triticale acreage.--Effective for the 2008 
        through 2012 crop years, with respect to a producer on a farm 
        that uses acreage planted to triticale for the grazing of 
        livestock, the Secretary shall make a payment to the producer 
        under this section if the producer enters into an agreement 
        with the Secretary to forgo any other harvesting of triticale 
        on that acreage.
    (b) Payment Amount.--
            (1) In general.--The amount of a payment made under this 
        section to a producer on a farm described in subsection (a)(1) 
        shall be equal to the amount determined by multiplying--
                    (A) the loan deficiency payment rate determined 
                under section 1205(c) in effect, as of the date of the 
                agreement, for the county in which the farm is located; 
                by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed acreage on 
                        the farm with respect to which the producer 
                        elects to forgo harvesting of wheat, barley, or 
                        oats; and
                            (ii) the payment yield in effect for the 
                        calculation of direct payments under subtitle A 
                        with respect to that loan commodity on the farm 
                        or, in the case of a farm without a payment 
                        yield for that loan commodity, an appropriate 
                        yield established by the Secretary in a manner 
                        consistent with section 1102 of the Farm 
                        Security and Rural Investment Act of 2002 (7 
                        U.S.C. 7912).
            (2) Grazing of triticale acreage.--The amount of a payment 
        made under this section to a producer on a farm described in 
        subsection (a)(2) shall be equal to the amount determined by 
        multiplying--
                    (A) the loan deficiency payment rate determined 
                under section 1205(c) in effect for wheat, as of the 
                date of the agreement, for the county in which the farm 
                is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed acreage on 
                        the farm with respect to which the producer 
                        elects to forgo harvesting of triticale; and
                            (ii) the payment yield in effect for the 
                        calculation of direct payments under subtitle A 
                        with respect to wheat on the farm or, in the 
                        case of a farm without a payment yield for 
                        wheat, an appropriate yield established by the 
                        Secretary in a manner consistent with section 
                        1102 of the Farm Security and Rural Investment 
                        Act of 2002 (7 U.S.C. 7912).
    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section shall be 
        made at the same time and in the same manner as loan deficiency 
        payments are made under section 1205.
            (2) Availability.--
                    (A) In general.--The Secretary shall establish an 
                availability period for the payments authorized by this 
                section.
                    (B) Certain commodities.--In the case of wheat, 
                barley, and oats, the availability period shall be 
                consistent with the availability period for the 
                commodity established by the Secretary for marketing 
                assistance loans authorized by this subtitle.
    (d) Prohibition on Crop Insurance Indemnity or Noninsured Crop 
Assistance.--A 2008 through 2012 crop of wheat, barley, oats, or 
triticale planted on acreage that a producer elects, in the agreement 
required by subsection (a), to use for the grazing of livestock in lieu 
of any other harvesting of the crop shall not be eligible for an 
indemnity under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
or noninsured crop assistance under section 196 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Special Import Quota.--
            (1) Definition of special import quota.--In this 
        subsection, the term ``special import quota'' means a quantity 
        of imports that is not subject to the over-quota tariff rate of 
        a tariff-rate quota.
            (2) Establishment.--
                    (A) In general.--The President shall carry out an 
                import quota program during the period beginning on the 
                date of the enactment of this Act through July 31, 
                2013, as provided in this subsection.
                    (B) Program requirements.--Whenever the Secretary 
                determines and announces that for any consecutive 4-
                week period, the Friday through Thursday average price 
                quotation for the lowest-priced United States growth, 
                as quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C/F Far East, exceeds the Far East price 
                there shall immediately be in effect a special import 
                quota.
            (3) Quantity.--The quota shall be equal to 1 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 months 
        for which data are available.
            (4) Application.--The quota shall apply to upland cotton 
        purchased not later than 90 days after the date of the 
        Secretary's announcement under paragraph (1) and entered into 
        the United States not later than 180 days after that date.
            (5) Overlap.--A special quota period may be established 
        that overlaps any existing quota period if required by 
        paragraph (2), except that a special quota period may not be 
        established under this subsection if a quota period has been 
        established under subsection (b).
            (6) Preferential tariff treatment.--The quantity under a 
        special import quota shall be considered to be an in-quota 
        quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade Preference Act 
                (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 (19 
                U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized Tariff 
                Schedule.
            (7) Limitation.--The quantity of cotton entered into the 
        United States during any marketing year under the special 
        import quota established under this subsection may not exceed 
        the equivalent of 10 week's consumption of upland cotton by 
        domestic mills at the seasonally adjusted average rate of the 3 
        months immediately preceding the first special import quota 
        established in any marketing year.
    (b) Limited Global Import Quota for Upland Cotton.--
            (1) Definitions.--In this subsection:
                    (A) Supply.--The term ``supply'' means, using the 
                latest official data of the Bureau of the Census, the 
                Department of Agriculture, and the Department of the 
                Treasury--
                            (i) the carry-over of upland cotton at the 
                        beginning of the marketing year (adjusted to 
                        480-pound bales) in which the quota is 
                        established;
                            (ii) production of the current crop; and
                            (iii) imports to the latest date available 
                        during the marketing year.
                    (B) Demand.--The term ``demand'' means--
                            (i) the average seasonally adjusted annual 
                        rate of domestic mill consumption during the 
                        most recent 3 months for which data are 
                        available; and
                            (ii) the larger of--
                                    (I) average exports of upland 
                                cotton during the preceding 6 marketing 
                                years; or
                                    (II) cumulative exports of upland 
                                cotton plus outstanding export sales 
                                for the marketing year in which the 
                                quota is established.
                    (C) Limited global import quota.--The term 
                ``limited global import quota'' means a quantity of 
                imports that is not subject to the over-quota tariff 
                rate of a tariff-rate quota.
            (2) Program.--The President shall carry out an import quota 
        program that provides that whenever the Secretary determines 
        and announces that the average price of the base quality of 
        upland cotton, as determined by the Secretary, in the 
        designated spot markets for a month exceeded 130 percent of the 
        average price of the quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other provision of 
        law, there shall immediately be in effect a limited global 
        import quota subject to the following conditions:
                    (A) Quantity.--The quantity of the quota shall be 
                equal to 21 days of domestic mill consumption of upland 
                cotton at the seasonally adjusted average rate of the 
                most recent 3 months for which data are available.
                    (B) Quantity if prior quota.--If a quota has been 
                established under this subsection during the preceding 
                12 months, the quantity of the quota next established 
                under this subsection shall be the smaller of 21 days 
                of domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to increase 
                the supply to 130 percent of the demand.
                    (C) Preferential tariff treatment.--The quantity 
                under a limited global import quota shall be considered 
                to be an in-quota quantity for purposes of--
                            (i) section 213(d) of the Caribbean Basin 
                        Economic Recovery Act (19 U.S.C. 2703(d));
                            (ii) section 204 of the Andean Trade 
                        Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade Act of 
                        1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Quota entry period.--When a quota is 
                established under this subsection, cotton may be 
                entered under the quota during the 90-day period 
                beginning on the date the quota is established by the 
                Secretary.
            (3) No overlap.--Notwithstanding paragraph (2), a quota 
        period may not be established that overlaps an existing quota 
        period or a special quota period established under subsection 
        (a).
    (c) Economic Adjustment Assistance to Users of Upland Cotton.--
            (1) Issuance of marketing certificates or cash payments.--
        During the period beginning on the date of the enactment of 
        this Act through July 31, 2013, the Secretary shall issue, on a 
        monthly basis, marketing certificates or cash payments, at the 
        option of the recipient, to domestic users of upland cotton for 
        all documented use of upland cotton during the previous monthly 
        period regardless of the origin of the upland cotton.
            (2) Value of certificates or payments.--The value of the 
        marketing certificates or cash payments shall be 4 cents per 
        pound.
            (3) Allowable purposes.--Economic adjustment assistance 
        under this subsection shall be made available only to domestic 
        users of upland cotton that certify that such funds shall be 
        used only for acquisition, construction, installation, 
        modernization, development, conversion, or expansion of land, 
        plant, buildings, equipment, facilities, or machinery.
            (4) Review or audit.--The Secretary may conduct such review 
        or audit of the records of a domestic user under this 
        subsection as determined necessary to carry out the provisions 
        of this subsection.
            (5) Improper use of assistance.--If the Secretary 
        determines, after a review or audit of the records of the 
        domestic user, that economic adjustment assistance under this 
        subsection was not used for the purposes specified in paragraph 
        (3), the domestic user shall be liable to repay such assistance 
        to the Secretary, plus interest, as determined by the 
        Secretary, and shall be ineligible to participate in the 
        program established by this subsection for a period of 12 
        months following the determination of the Secretary.

SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other provision 
of law, during the period beginning on the date of the enactment of 
this Act through July 31, 2013, the Secretary shall carry out a 
program--
            (1) to maintain and expand the domestic use of extra long 
        staple cotton produced in the United States;
            (2) to increase exports of extra long staple cotton 
        produced in the United States; and
            (3) to ensure that extra long staple cotton produced in the 
        United States remains competitive in world markets.
    (b) Payments Under Program; Trigger.--Under the program, the 
Secretary shall make payments available under this section whenever--
            (1) for a consecutive 4-week period, the world market price 
        for the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is below the prevailing United 
        States price for a competing growth of extra long staple 
        cotton; and
            (2) the lowest priced competing growth of extra long staple 
        cotton (adjusted to United States quality and location and for 
        other factors affecting the competitiveness of such cotton), as 
        determined by the Secretary, is less than 134 percent of the 
        loan rate for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long staple 
cotton produced in the United States that enter into an agreement with 
the Commodity Credit Corporation to participate in the program under 
this section.
    (d) Payment Amount.--Payments under this section shall be based on 
the amount of the difference in the prices referred to in subsection 
(b)(1) during the fourth week of the consecutive 4-week period 
multiplied by the amount of documented purchases by domestic users and 
sales for export by exporters made in the week following such a 
consecutive 4-week period.
    (e) Form of Payment.--Payments under this section shall be made 
through the issuance of cash or marketing certificates, at the option 
of eligible recipients of the payments.

SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
              AND SEED COTTON.

    (a) High Moisture Feed Grains.--
            (1) Definition of high moisture state.--In this subsection, 
        the term ``high moisture state'' means corn or grain sorghum 
        having a moisture content in excess of Commodity Credit 
        Corporation standards for marketing assistance loans made by 
        the Secretary under section 1201.
            (2) Recourse loans available.--For each of the 2008 through 
        2012 crops of corn and grain sorghum, the Secretary shall make 
        available recourse loans, as determined by the Secretary, to 
        producers on a farm that--
                    (A) normally harvest all or a portion of their crop 
                of corn or grain sorghum in a high moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, feedlot, feed 
                        mill, distillery, or other similar entity 
                        approved by the Secretary, pursuant to 
                        regulations issued by the Secretary; or
                            (ii) field or other physical measurements 
                        of the standing or stored crop in regions of 
                        the United States, as determined by the 
                        Secretary, that do not have certified 
                        commercial scales from which certified scale 
                        tickets may be obtained within reasonable 
                        proximity of harvest operation;
                    (C) certify that they were the owners of the feed 
                grain at the time of delivery to, and that the quantity 
                to be placed under loan under this subsection was in 
                fact harvested on the farm and delivered to, a feedlot, 
                feed mill, or commercial or on-farm high-moisture 
                storage facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high moisture 
                state; and
                    (D) comply with deadlines established by the 
                Secretary for harvesting the corn or grain sorghum and 
                submit applications for loans under this subsection 
                within deadlines established by the Secretary.
            (3) Eligibility of acquired feed grains.--A loan under this 
        subsection shall be made on a quantity of corn or grain sorghum 
        of the same crop acquired by the producer equivalent to a 
        quantity determined by multiplying--
                    (A) the acreage of the corn or grain sorghum in a 
                high moisture state harvested on the producer's farm; 
                by
                    (B) the lower of the farm program payment yield 
                used to make counter-cyclical payments under subtitle A 
                or the actual yield on a field, as determined by the 
                Secretary, that is similar to the field from which the 
                corn or grain sorghum was obtained.
    (b) Recourse Loans Available for Seed Cotton.--For each of the 2008 
through 2012 crops of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, as 
determined by the Secretary, on any production.
    (c) Repayment Rates.--Repayment of a recourse loan made under this 
section shall be at the loan rate established for the commodity by the 
Secretary, plus interest (determined in accordance with section 163 of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7283)).

SEC. 1210. DEADLINE FOR REPAYMENT OF MARKETING ASSISTANCE LOAN FOR 
              PEANUTS.

    (a) June 30 Redemption Deadline.--Notwithstanding any other 
provision of law, a marketing assistance loan for peanuts may not be 
redeemed after June 30 of the year subsequent to the year in which the 
peanuts were harvested.
    (b) Effect of Failure to Redeem.--A marketing assistance loan for 
peanuts that is not redeemed before the deadline imposed by subsection 
(a) shall be deemed to be forfeited to the Commodity Credit 
Corporation.

SEC. 1211. COMMODITY QUALITY INCENTIVE PAYMENTS FOR HEALTHY OILSEEDS.

    (a) Incentive Payments Required.--Subject to the availability of 
funds for this purpose, the Secretary shall provide commodity quality 
incentive payments during the 2009 through 2013 crop years for the 
production of oilseeds with specialized traits that enhance human 
health, as determined by the Secretary.
    (b) Covered Oilseeds.--The Secretary shall make payments under this 
section only for the production of an oilseed that has, as determined 
by the Secretary--
            (1) been demonstrated to reduce or eliminate the need to 
        partially hydrogenate the oil derived from the oilseed for use 
        in human consumption; and
            (2) 1 or more traits for which compelling impediments to 
        commercialization have been identified.
    (c) Request for Proposals.--
            (1) Issuance.--If funds are available to carry out this 
        section for a crop year, the Secretary shall issue a request 
        for proposals for payments under this section.
            (2) Multiyear proposals.--An entity may submit a multiyear 
        proposal for payments under this section.
            (3) Content of proposals.--A proposal for payments under 
        this section shall include a description of--
                    (A) each trait of the oilseed described in 
                subsection (b)(2) and the value of the trait as a 
                matter of public policy;
                    (B) the projected market size and value of the 
                trait;
                    (C) the projected impact of the proposal on--
                            (i) the future price of loan commodities; 
                        and
                            (ii) if appropriate, on Federal Government 
                        farm program outlays to support loan 
                        commodities;
                    (D) a range for the amount of total per bushel 
                premiums to be paid to producers;
                    (E) a per bushel amount of incentive payments 
                requested for each year under this section that--
                            (i) does not exceed \1/3\ of the total 
                        premium offered for any year; and
                            (ii) declines over time;
                    (F) the period of time, of not to exceed 4 years, 
                during which incentive payments are to be provided to 
                producers; and
                    (G) the targeted total quantity of production and 
                estimated acres needed to produce the targeted quantity 
                for each year under this section.
    (d) Contracts for Production.--
            (1) In general.--The Secretary shall approve successful 
        proposals submitted under subsection (c) on a timely basis so 
        as to allow successful applicants to offer production contracts 
        to producers beginning in advance of the spring planting season 
        for the 2009 crop year.
            (2) Multiyear contracts.--A successful applicant may enter 
        into a multiyear contract with--
                    (A) a specific group of producers; or
                    (B) various groups of producers.
            (3) Timing of payments.--The Secretary shall make payments 
        under this section after the Secretary receives documentation 
        that the total premium offered for crops produced under a 
        contract (including the amount of incentive payments) has been 
        made to covered producers.
    (e) Administration.--If funding provided for a crop year is not 
fully allocated under the initial request for proposals under 
subsection (c), the Secretary shall issue additional requests for 
proposals for subsequent years under this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2009 through 2013.

                           Subtitle C--Sugar

SEC. 1301. SUGAR PROGRAM.

    (a) In General.--Section 156 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272) is amended to read as follows:

``SEC. 156. SUGAR PROGRAM.

    ``(a) Sugarcane.--The Secretary shall make loans for raw cane sugar 
available to processors of domestically grown sugarcane at a rate equal 
to 18.5 cents per pound for each of the 2008 through 2012 crop years.
    ``(b) Sugar Beets.--The Secretary shall make loans for refined beet 
sugar available to processors of domestically grown sugar beets at a 
rate equal to 23.5 cents per pound for each of the 2008 through 2012 
crop years.
    ``(c) Term of Loans.--
            ``(1) In general.--A loan under this section during any 
        fiscal year shall be made available not earlier than the 
        beginning of the fiscal year and shall mature at the earlier 
        of--
                    ``(A) the end of the 9-month period beginning on 
                the first day of the first month after the month in 
                which the loan is made; or
                    ``(B) the end of the fiscal year in which the loan 
                is made.
            ``(2) Supplemental loans.--In the case of a loan made under 
        this section in the last 3 months of a fiscal year, the 
        processor may repledge the sugar as collateral for a second 
        loan in the subsequent fiscal year, except that the second loan 
        shall--
                    ``(A) be made at the loan rate in effect at the 
                time the first loan was made; and
                    ``(B) mature in 9 months less the quantity of time 
                that the first loan was in effect.
    ``(d) Loan Type; Processor Assurances.--
            ``(1) Nonrecourse loans.--The Secretary shall carry out 
        this section through the use of nonrecourse loans.
            ``(2) Processor assurances.--
                    ``(A) In general.--The Secretary shall obtain from 
                each processor that receives a loan under this section 
                such assurances as the Secretary considers adequate to 
                ensure that the processor will provide payments to 
                producers that are proportional to the value of the 
                loan received by the processor for the sugar beets and 
                sugarcane delivered by producers to the processor.
                    ``(B) Minimum payments.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may establish appropriate minimum 
                        payments for purposes of this paragraph.
                            ``(ii) Limitation.--In the case of sugar 
                        beets, the minimum payment established under 
                        clause (i) shall not exceed the rate of payment 
                        provided for under the applicable contract 
                        between a sugar beet producer and a sugar beet 
                        processor.
            ``(3) Administration.--The Secretary may not impose or 
        enforce any prenotification requirement, or similar 
        administrative requirement not otherwise in effect on May 13, 
        2002, that has the effect of preventing a processor from 
        electing to forfeit the loan collateral (of an acceptable grade 
        and quality) on the maturity of the loan.
    ``(e) Loans for In-Process Sugar.--
            ``(1) Definition of in-process sugars and syrups.--In this 
        subsection, the term `in-process sugars and syrups' does not 
        include raw sugar, liquid sugar, invert sugar, invert syrup, or 
        other finished product that is otherwise eligible for a loan 
        under subsection (a) or (b).
            ``(2) Availability.--The Secretary shall make nonrecourse 
        loans available to processors of a crop of domestically grown 
        sugarcane and sugar beets for in-process sugars and syrups 
        derived from the crop.
            ``(3) Loan rate.--The loan rate shall be equal to 80 
        percent of the loan rate applicable to raw cane sugar or 
        refined beet sugar, as determined by the Secretary on the basis 
        of the source material for the in-process sugars and syrups.
            ``(4) Further processing on forfeiture.--
                    ``(A) In general.--As a condition of the forfeiture 
                of in-process sugars and syrups serving as collateral 
                for a loan under paragraph (2), the processor shall, 
                within such reasonable time period as the Secretary may 
                prescribe and at no cost to the Commodity Credit 
                Corporation, convert the in-process sugars and syrups 
                into raw cane sugar or refined beet sugar of acceptable 
                grade and quality for sugars eligible for loans under 
                subsection (a) or (b).
                    ``(B) Transfer to corporation.--Once the in-process 
                sugars and syrups are fully processed into raw cane 
                sugar or refined beet sugar, the processor shall 
                transfer the sugar to the Commodity Credit Corporation.
                    ``(C) Payment to processor.--On transfer of the 
                sugar, the Secretary shall make a payment to the 
                processor in an amount equal to the amount obtained by 
                multiplying--
                            ``(i) the difference between--
                                    ``(I) the loan rate for raw cane 
                                sugar or refined beet sugar, as 
                                appropriate; and
                                    ``(II) the loan rate the processor 
                                received under paragraph (3); by
                            ``(ii) the quantity of sugar transferred to 
                        the Secretary.
            ``(5) Loan conversion.--If the processor does not forfeit 
        the collateral as described in paragraph (4), but instead 
        further processes the in-process sugars and syrups into raw 
        cane sugar or refined beet sugar and repays the loan on the in-
        process sugars and syrups, the processor may obtain a loan 
        under subsection (a) or (b) for the raw cane sugar or refined 
        beet sugar, as appropriate.
            ``(6) Term of loan.--The term of a loan made under this 
        subsection for a quantity of in-process sugars and syrups, when 
        combined with the term of a loan made with respect to the raw 
        cane sugar or refined beet sugar derived from the in-process 
        sugars and syrups, may not exceed 9 months, consistent with 
        subsection (c).
    ``(f) Avoiding Forfeitures; Corporation Inventory Disposition.--
            ``(1) In general.--Subject to subsection (d)(3), to the 
        maximum extent practicable, the Secretary shall operate the 
        program established under this section at no cost to the 
        Federal Government by avoiding the forfeiture of sugar to the 
        Commodity Credit Corporation.
            ``(2) Inventory disposition.--
                    ``(A) In general.--To carry out paragraph (1), the 
                Commodity Credit Corporation may accept bids to obtain 
                raw cane sugar or refined beet sugar in the inventory 
                of the Commodity Credit Corporation from (or otherwise 
                make available such commodities, on appropriate terms 
                and conditions, to) processors of sugarcane and 
                processors of sugar beets (acting in conjunction with 
                the producers of the sugarcane or sugar beets processed 
                by the processors) in return for the reduction of 
                production of raw cane sugar or refined beet sugar, as 
                appropriate.
                    ``(B) Bioenergy feedstock.--If a reduction in the 
                quantity of production accepted under subparagraph (A) 
                involves sugar beets or sugarcane that has already been 
                planted, the sugar beets or sugarcane so planted may 
                not be used for any commercial purpose other than as a 
                bioenergy feedstock.
                    ``(C) Additional authority.--The authority provided 
                under this paragraph is in addition to any authority of 
                the Commodity Credit Corporation under any other law.
    ``(g) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly basis, such 
        information as the Secretary may require to administer sugar 
        programs, including the quantity of purchases of sugarcane, 
        sugar beets, and sugar, and production, importation, 
        distribution, and stock levels of sugar.
            ``(2) Duty of producers to report.--
                    ``(A) Proportionate share states.--As a condition 
                of a loan made to a processor for the benefit of a 
                producer, the Secretary shall require each producer of 
                sugarcane located in a State (other than the 
                Commonwealth of Puerto Rico) in which there are in 
                excess of 250 producers of sugarcane to report, in the 
                manner prescribed by the Secretary, the sugarcane 
                yields and acres planted to sugarcane of the producer.
                    ``(B) Other states.--The Secretary may require each 
                producer of sugarcane or sugar beets not covered by 
                subparagraph (A) to report, in a manner prescribed by 
                the Secretary, the yields of, and acres planted to, 
                sugarcane or sugar beets, respectively, of the 
                producer.
            ``(3) Duty of importers to report.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall require an 
                importer of sugars, syrups, or molasses to be used for 
                human consumption or to be used for the extraction of 
                sugar for human consumption to report, in the manner 
                prescribed by the Secretary, the quantities of the 
                products imported by the importer and the sugar content 
                or equivalent of the products.
                    ``(B) Tariff-rate quotas.--Subparagraph (A) shall 
                not apply to sugars, syrups, or molasses that are 
                within the quantities of tariff-rate quotas that are 
                subject to the lower rate of duties.
            ``(4) Collection of information on mexico.--
                    ``(A) Collection.--The Secretary shall collect--
                            ``(i) information on the production, 
                        consumption, stocks and trade of sugar in 
                        Mexico, including United States exports of 
                        sugar to Mexico; and
                            ``(ii) publicly available information on 
                        Mexican production, consumption, and trade of 
                        high fructose corn syrups, including United 
                        States exports of high fructose corn syrups to 
                        Mexico.
                    ``(B) Publication.--The data collected under 
                subparagraph (A) shall be published in each edition of 
                the World Agricultural Supply and Demand Estimates.
            ``(5) Penalty.--Any person willfully failing or refusing to 
        furnish the information required to be reported by paragraph 
        (1), (2), or (3), or furnishing willfully false information, 
        shall be subject to a civil penalty of not more than $10,000 
        for each such violation.
            ``(6) Monthly reports.--Taking into consideration the 
        information received under this subsection, the Secretary shall 
        publish on a monthly basis composite data on production, 
        imports, distribution, and stock levels of sugar.
    ``(h) Substitution of Refined Sugar.--For purposes of Additional 
U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the 
United States and the reexport programs and polyhydric alcohol program 
administered by the Secretary, all refined sugars (whether derived from 
sugar beets or sugarcane) produced by cane sugar refineries and beet 
sugar processors shall be fully substitutable for the export of sugar 
and sugar-containing products under those programs.
    ``(i) Effective Period.--This section shall be effective only for 
the 2008 through 2012 crops of sugar beets and sugarcane.''.
    (b) Transition.--The Secretary of Agriculture shall make loans for 
raw cane sugar and refined beet sugar available for the 2007 crop year 
on the terms and conditions provided in section 156 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272), as in 
effect on the day before the date of the enactment of this Act.

SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTERNATIONAL SUGAR 
              ORGANIZATION.

    The Secretary of Agriculture shall work with the Secretary of State 
to restore United States membership in the International Sugar 
Organization within one year after the date of enactment of this Act.

SEC. 1303. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    (a) Definition of Human Consumption.--Section 359a of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended--
            (1) by redesignating paragraphs (1) through (4) as 
        paragraphs (2) through (5), respectively; and
            (2) by inserting before paragraph (2), as so redesignated, 
        the following new paragraph (1):
            ``(1) Human consumption.--The term `human consumption', 
        when used in the context of a reference to sugar (whether in 
        the form of sugar, in-process sugar, syrup, molasses, or in 
        some other form) for human consumption, includes sugar for use 
        in human food, beverages, or similar products.''.
    (b) Sugar Allotments.--Section 359b of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359bb) is amended to read as follows:

``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    ``(a) Sugar Estimates.--
            ``(1) In general.--Not later than August 1 before the 
        beginning of each of the 2008 through 2012 crop years for 
        sugarcane and sugar beets, the Secretary shall estimate--
                    ``(A) the quantity of sugar that will be subject to 
                human consumption in the United States during the crop 
                year;
                    ``(B) the quantity of sugar that would provide for 
                reasonable carryover stocks;
                    ``(C) the quantity of sugar that will be available 
                from carry-in stocks for human consumption in the 
                United States during the crop year;
                    ``(D) the quantity of sugar that will be available 
                from the domestic processing of sugarcane, sugar beets, 
                and in-process beet sugar; and
                    ``(E) the quantity of sugars, syrups, and molasses 
                that will be imported for human consumption or to be 
                used for the extraction of sugar for human consumption 
                in the United States during the crop year, whether such 
                articles are under a tariff-rate quota or are in excess 
                or outside of a tariff-rate quota.
            ``(2) Exclusion.--The estimates under this subsection shall 
        not apply to sugar imported for the production of polyhydric 
        alcohol or to any sugar refined and reexported in refined form 
        or in products containing sugar.
            ``(3) Reestimates.--The Secretary shall make reestimates of 
        sugar consumption, stocks, production, and imports for a crop 
        year as necessary, but no later than the beginning of each of 
        the second through fourth quarters of the crop year.
    ``(b) Sugar Allotments.--
            ``(1) Establishment.--By the beginning of each crop year, 
        the Secretary shall establish for that crop year appropriate 
        allotments under section 359c for the marketing by processors 
        of sugar processed from sugar cane or sugar beets or in-process 
        beet sugar (whether such sugar beets or in-process beet sugar 
        was produced domestically or imported) at a level sufficient to 
        maintain raw and refined sugar prices above forfeiture levels 
        so that there will be no forfeitures of sugar to the Commodity 
        Credit Corporation under the loan program for sugar established 
        under section 156 of the Federal Agriculture Improvement and 
        Reform Act of 1996 (7 U.S.C. 7272).
            ``(2) Minimum.--The level of allotments established under 
        paragraph (1) may not be less than 85 percent of the estimated 
        quantity of sugar for domestic human consumption for the crop 
        year.
            ``(3) Products.--The Secretary may include sugar products, 
        whose majority content is sucrose, in the allotments 
        established under paragraph (1) if the Secretary determines 
        that the inclusion of such sugar products is appropriate for 
        controlling the supply of sugar for human consumption.
    ``(c) Coverage of Allotments.--
            ``(1) In general.--The marketing allotments provided for in 
        this part shall apply to the marketing by processors of sugar 
        intended for domestic human consumption that has been processed 
        from sugar cane or sugar beets or in-process beet sugar 
        (whether such sugar beets or in-process beet sugar was produced 
        domestically or imported).
            ``(2) Exceptions.--Consistent with the administration of 
        marketing allotments during crop years 2002 through 2007, the 
        marketing allotments shall not apply to sugar sold--
                    ``(A) to facilitate the exportation of such sugar 
                to a foreign country, except that such exports of sugar 
                shall not be eligible to receive credits under re-
                export programs for refined sugar or sugar containing 
                products administered by the Secretary;
                    ``(B) to enable another processor to fulfill an 
                allocation established for such other processor, except 
                that such sales must be made before May 1 and must be 
                reported to the Secretary; or
                    ``(C) for uses other than domestic human 
                consumption.
    ``(d) Prohibitions.--
            ``(1) In general.--During any crop year or portion thereof 
        for which marketing allotments have been established, no 
        processor of sugar beets or sugarcane shall market for domestic 
        human consumption a quantity of sugar in excess of the 
        allocation established for such processor, except to enable 
        another processor to fulfill an allocation established for such 
        other processor or to facilitate the exportation of such sugar.
            ``(2) Civil penalty.--Any processor who knowingly violates 
        paragraph (1) shall be liable to the Commodity Credit 
        Corporation for a civil penalty in an amount equal to 3 times 
        the United States market value, at the time of the commission 
        of the violation, of that quantity of sugar involved in the 
        violation.
            ``(3) Definition of market.--For purposes of this part, the 
        term `market' shall mean to sell or otherwise dispose of in 
        commerce in the United States, including--
                    ``(A) the forfeiture of sugar under the loan 
                program for sugar under section 156 of the Federal 
                Agriculture Improvement and Reform Act of 1996 (7 
                U.S.C. 7272) and such forfeited sugar shall be deemed 
                to have been marketed during the crop year in which the 
                loan was made;
                    ``(B) with respect to any integrated processor and 
                refiner, the movement of raw cane sugar into the 
                refining process; and
                    ``(C) the sale of sugar for the production of 
                ethanol or other bioenergy product, if such ethanol or 
                bioenergy product is the subject of a payment under the 
                feedstock flexibility program for bioenergy 
                producers.''.
    (c) Establishment.--Section 359c of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359cc) is amended--
            (1) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Overall Allotment Quantity.--
            ``(1) In general.--The Secretary shall establish the 
        overall quantity of sugar to be allotted for the crop year (in 
        this part referred to as the `overall allotment quantity') at a 
        level sufficient to maintain raw and refined sugar prices above 
        forfeiture levels to avoid the forfeiture of sugar to the 
        Commodity Credit Corporation.
            ``(2) Minimum.--The overall allotment quantity established 
        under paragraph (1) may not be less than 85 percent of the 
        estimated quantity of sugar for domestic human consumption for 
        the crop year.
            ``(3) Adjustment.--Subject to paragraphs (1) and (2), the 
        Secretary shall adjust the overall allotment quantity--
                    ``(A) to maintain raw and refined sugar prices 
                above forfeiture levels to avoid the forfeiture of 
                sugar to the Commodity Credit Corporation; and
                    ``(B) to maintain adequate supplies of raw and 
                refined sugar in the domestic market.'';
            (2) in subsection (d)(2), by inserting before the period 
        the following: ``or in-process beet sugar'';
            (3) in subsection (g)(1), by inserting at the end the 
        following new sentence: ``However, the overall allotment 
        quantity may not be reduced to a quantity less than 85 percent 
        of the estimated quantity of sugar for domestic human 
        consumption for the crop year.''; and
            (4) by striking subsection (h).
    (d) Allocation of Marketing Allotments.--Section 359d(b) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(b)) is amended--
            (1) in paragraph (1)(F), by striking ``Except as otherwise 
        provided in section 359f(c)(8), if'' and inserting ``If''; and
            (2) in paragraph (2), by striking subparagraphs (H) and (I) 
        and inserting the following new subparagraph:
                    ``(H) New entrants starting production, reopening, 
                or acquiring an existing factory with production 
                history.--
                            ``(i) Allocation for a new entrant that has 
                        constructed a new factory or reopened a factory 
                        that was not operating since before 1998.--If a 
                        New Entrant constructs a new sugar beet 
                        processing factory, or acquires and reopens a 
                        sugar beet processing factory that last 
                        processed sugar beets prior to the 1998 crop 
                        year and there is no allocation currently 
                        associated with the factory, the Secretary 
                        shall--
                                    ``(I) assign an allocation for beet 
                                sugar to the New Entrant that provides 
                                a fair and equitable distribution of 
                                the allocations for beet sugar in order 
                                to enable the New Entrant to achieve a 
                                factory utilization rate comparable to 
                                the factory utilization rates of other 
                                similarly situated processors; and
                                    ``(II) reduce the allocations for 
                                beet sugar of all other processors on a 
                                pro rata basis to reflect the 
                                allocation to the New Entrant.
                            ``(ii) Allocation for a new entrant that 
                        has acquired an existing factory with a 
                        production history.--If a New Entrant acquires 
                        an existing factory that has processed sugar 
                        beets from the 1998 or later crop years and has 
                        a production history, then, upon the mutual 
                        agreement of the New Entrant and the company 
                        currently holding the allocation associated 
                        with the factory, the Secretary shall transfer 
                        to the New Entrant a portion of allocation of 
                        the current allocation holder to reflect the 
                        historical contribution of the production of 
                        the acquired factory to the total allocation of 
                        the current allocation holder. In the absence 
                        of mutual agreement, the new entrant shall be 
                        ineligible for a beet sugar allocation.
                            ``(iii) Appeals.--Any decision made under 
                        this subsection may be appealed to the 
                        Secretary pursuant to section 359i.
                            ``(iv) Definition.--In this subparagraph, 
                        the term `New Entrant' means an individual, 
                        corporation, or other entity that does not have 
                        an allocation of the beet sugar allotment under 
                        this part, is not affiliated with any other 
                        individual, corporation, or entity that has an 
                        allocation of beet sugar under this part (known 
                        as a `third party'), and will process sugar 
                        beets produced by sugar beet growers under 
                        contract with the New Entrant for the 
                        production of sugar at the new or re-opened 
                        factory that is the basis for the New Entrant 
                        allocation.
                            ``(v) Affiliation.--For purposes of this 
                        subparagraph, a New Entrant and a third party 
                        shall be deemed to be `affiliated' if--
                                    ``(I) the third party has an 
                                ownership interest in the New Entrant;
                                    ``(II) the New Entrant and the 
                                third party have owners in common;
                                    ``(III) the third party has the 
                                ability to exercise control over the 
                                New Entrant by organizational rights, 
                                contractual rights, or any other means;
                                    ``(IV) the third party has a 
                                contractual relationship with the New 
                                Entrant by which the New Entrant will 
                                make use of the facilities or assets of 
                                such third party; or
                                    ``(V) any other similar 
                                circumstance exists by which the 
                                Secretary determines that the New 
                                Entrant and the third party are 
                                affiliated.''.
    (e) Reassignment of Deficits.--Section 359e(b) of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended in both 
paragraphs (1)(D) and (2)(C) by inserting ``of raw cane sugar'' after 
``imports''.
    (f) Provisions Applicable to Producers.--Section 359f(c) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)) is amended--
            (1) in paragraph (2), by striking ``quantity of sugarcane'' 
        and inserting ``quantity of sugar produced from sugarcane'';
            (2) in paragraph (5)(C), by inserting ``for sugar'' before 
        ``in excess of the farm's proportionate share'';
            (3) in paragraph (7), by striking ``amount of sugarcane'' 
        and inserting ``amount of sugar from sugarcane''; and
            (4) by striking paragraph (8) and inserting the following 
        new paragraph:
            ``(8) Seed definition.--In this subsection, the term `seed' 
        includes only varieties of seed dedicated to the production of 
        sugarcane from which is produced sugar for human consumption, 
        and excludes seed of high-fiber cane varieties dedicated to 
        other uses, as determined by the Secretary.''.
    (g) Special Rules.--Section 359g of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359gg) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Transfer of Acreage Base History.--
            ``(1) Transfer authorized.--For the purpose of establishing 
        proportionate shares for sugarcane farms under section 359f(c), 
        the Secretary, on application of any producer, with the written 
        consent of all owners of a farm, may transfer the acreage base 
        history of the farm to any other parcels of land of the 
        applicant.
            ``(2) Converted acreage base.--
                    ``(A) In general.--Sugarcane base acreage 
                established under section 359f(c) that has been or is 
                converted to non-agricultural use on or after May 13, 
                2002, may be transferred to other land suitable for the 
                production of sugarcane that can be delivered to a 
                processor in a proportionate share State in accordance 
                with this paragraph.
                    ``(B) Notification.--Not later than 90 days after 
                the date of the enactment of the Farm, Nutrition, and 
                Bioenergy Act of 2007, or the subsequent conversion of 
                sugarcane base acreage to a non-agricultural use, the 
                Secretary, acting through the Farm Service Agency, 
                shall notify the affected landowner (or landowners) of 
                the transferability of the applicable sugarcane base 
                acreage.
                    ``(C) Initial transfer period.--The owner of the 
                base attributable to the acreage at the time of the 
                conversion shall be afforded 90 days from the date of 
                the receipt of the notification under subparagraph (B) 
                to transfer the base to one or more farms owned by the 
                owner.
                    ``(D) Grower of record.--If the transfer under 
                subparagraph (C) cannot be accomplished within the time 
                period prescribed in such subparagraph, then the grower 
                of record with regard to the base acreage on the date 
                on which the acreage was converted to non-agricultural 
                use shall be so notified, and shall be afforded 90 days 
                from the date of the receipt of such notification to 
                transfer the base to one or more farms operated by the 
                grower.
                    ``(E) Pool distribution.--If the transfers under 
                subparagraphs (B) and (C) cannot be accomplished within 
                the time periods prescribed therein, then the county 
                committee for the applicable parish shall place the 
                acreage base in a pool for possible assignment to other 
                farms. After providing reasonable notice to farm 
                owners, operators, and growers of record in the parish, 
                the county committee shall accept requests from owners, 
                operators, and growers of record in the parish. The 
                county committee shall assign the base to other farms 
                in the parish that are eligible and capable of 
                accepting such base, based on a random drawing from 
                among the requests received from owners, operators, and 
                growers of record with eligible farms.
                    ``(F) Statewide reallocation.--Any base remaining 
                unassigned after the processes in subparagraphs (A) 
                through (E) shall be made available to the State 
                committee for allocation among the remaining county 
                committees in the State representing parishes with 
                farms eligible for assignment of the base. The 
                remaining base shall be reallocated to requesting 
                county committees based on a random drawing. Any county 
                committee receiving base under this subparagraph shall 
                allocate the base to eligible farms using the process 
                described in subparagraph (E).
                    ``(G) Status of reassigned base.--Once reassigned 
                pursuant to this paragraph, the acreage base shall 
                remain on the farm, and will be subject to the transfer 
                provisions of paragraph (1).'';
            (2) by striking subsection (d) and inserting the following 
        new subsection:
    ``(d) Transfers of Mill Allocations.--
            ``(1) Transfer authorized.--A producer in a proportionate 
        share State, upon written consent from all affected crop-share 
        owners (or the representative of the crop-share owners) of a 
        farm may deliver sugarcane to another processing company if the 
        additional delivery, when combined with such other processing 
        company's existing deliveries, does not exceed the processing 
        capacity of the company.
            ``(2) Allocation adjustment.--Notwithstanding section 359d, 
        the Secretary shall adjust the allocations of each of such 
        processing companies affected by a transfer under paragraph (1) 
        to reflect the change in deliveries, based on--
                    ``(A) the number of acres of sugarcane base being 
                transferred; and
                    ``(B) the pro-rata amount of allocation at the 
                processing company holding the applicable allocation 
                that equals the grower's contribution to the processing 
                company's allocation for the sugarcane base acres being 
                transferred.''.
    (h) Appeals.--Section 359i of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359ii) is amended--
            (1) in subsection (a), by inserting ``or 359g(d)'' after 
        ``359f''; and
            (2) by striking subsection (c).
    (i) Administration of Tariff Rate Quotas.--The Agricultural 
Adjustment Act of 1938 is amended by striking section 359k (7 U.S.C. 
1359kk) and inserting the following new section:

``SEC. 359K. ADMINISTRATION OF TARIFF RATE QUOTAS.

    ``(a) Establishment.--Notwithstanding any other provision of law, 
at the beginning of the quota year, the Secretary shall establish the 
tariff-rate quotas for raw cane sugar and refined sugars at the minimum 
necessary to comply with obligations under international trade 
agreements that have been approved by the Congress. This subsection 
shall not apply to specialty sugar.
    ``(b) Adjustment.--
            ``(1) Before april 1.--
                    ``(A) Initial adjustment required.--Before April 1 
                of a fiscal year, in the event that there is an 
                emergency shortage of sugar in the United States market 
                that is caused by war, floods, hurricanes, or other 
                natural disaster, or other similar event, the Secretary 
                shall take action to increase supply as provided under 
                sections 359c(b)(2) and 359e(b), including an increase 
                in the tariff-rate quota for raw cane sugar to 
                accommodate the reassignment to imports.
                    ``(B) Additional adjustment.--If, after adjustment 
                under subparagraph (A), there is still a shortage of 
                sugar in the United States market, and marketings of 
                domestic sugar have been maximized, the Secretary may 
                increase the tariff-rate quota for refined sugars 
                sufficient to accommodate the supply increase, if such 
                further increase will not threaten to result in the 
                forfeiture of sugar pledged as collateral for a loan 
                under section 156 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 7272).
            ``(2) On or after april 1.--
                    ``(A) Initial adjustment authorized.--On or after 
                April 1 of a fiscal year, the Secretary may take action 
                to increase supply as provided under sections 
                359c(b)(2) and 359e(b), including an increase in the 
                tariff-rate quota for raw cane sugar to accommodate the 
                reassignment to imports.
                    ``(B) Additional adjustment.--If, after adjustment 
                under subparagraph (A), there is still a shortage of 
                sugar in the United States market, and marketings of 
                domestic sugar have been maximized, the Secretary may 
                increase the tariff-rate quota for raw cane sugar if 
                such further increase will not threaten to result in 
                the forfeiture of sugar pledged as collateral for a 
                loan under section 156 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (7 U.S.C. 7272).
    ``(c) Orderly Shipping Patterns for Major Suppliers.--
            ``(1) In general.--The Secretary of Agriculture shall 
        establish orderly shipping patterns for major suppliers of 
        sugar to the United States under the tariff rate quotas in 
        accordance with this subsection.
            ``(2) Very large major suppliers.--If a country holds quota 
        allocations of at least 100,000 metric tons of sugar, the 
        Secretary shall allow the country to export up to 25 percent of 
        the country's quota allocation to the United States in each 
        calendar quarter. Sugar permitted to enter into the United 
        States in a calendar quarter, but not actually entered in that 
        quarter, may be entered into the United States at any time 
        during the remainder of the fiscal year.
            ``(3) Large major suppliers.--For countries holding quota 
        allocations of more than 45,000 metric tons of sugar, but less 
        than 100,000 metric tons of sugar, the Secretary shall require 
        that the country may ship not more than 50 percent of the 
        country's quota sugar to the United States in the first six 
        months of the year.''.
    (j) Effective Date.--The Agricultural Adjustment Act of 1938 is 
amended by inserting after section 359k (7 U.S.C. 1359kk) the following 
new section:

``SEC. 359L. EFFECTIVE PERIOD.

    ``This part shall be effective only for the 2008 through 2012 crop 
years for sugar.''.
    (k) Transition.--The Secretary of Agriculture shall administer 
flexible marketing allotments for sugar for the 2007 crop year for 
sugar on the terms and conditions provided in part VII of title III of 
the Agricultural Adjustment Act of 1938, as in effect on the day before 
the date of the enactment of this Act.

                  Subtitle D--Dairy-Related Provisions

SEC. 1401. DAIRY PRODUCT PRICE SUPPORT PROGRAM.

    (a) Support Activities.--During the period beginning on January 1, 
2008, through December 31, 2012, the Secretary of Agriculture shall 
support the price of cheddar cheese, butter, and nonfat dry milk 
through the purchase of such products made from milk produced in the 
United States.
    (b) Purchase Price.--To carry out subsection (a) during the period 
specified in such subsection, the Secretary shall purchase--
            (1) cheddar cheese in blocks at not less than $1.13 per 
        pound;
            (2) cheddar cheese in barrels at not less than $1.10 per 
        pound;
            (3) butter at not less than $1.05 per pound; and
            (4) nonfat dry milk at not less than $0.80 per pound.
    (c) Temporary Price Adjustment to Avoid Excess Inventories.--
            (1) Adjustments authorized.--The Secretary may adjust the 
        minimum purchase prices established under subsection (b) only 
        as permitted under this subsection.
            (2) Cheese inventories in excess of 200 million pounds.--If 
        net removals for a period of 12 consecutive months exceed 200 
        million pounds of cheese, but do not exceed 400 million pounds, 
        the Secretary may reduce the purchase prices under paragraphs 
        (1) and (2) of subsection (b) during the immediately following 
        month by not more than 10 cents per pound.
            (3) Cheese inventories in excess of 400 million pounds.--If 
        net removals for a period of 12 consecutive months exceed 400 
        million pounds of cheese, the Secretary may reduce the purchase 
        prices under paragraphs (1) and (2) of subsection (b) during 
        the immediately following month by not more than 20 cents per 
        pound.
            (4) Butter inventories in excess of 450 million pounds.--If 
        net removals for a period of 12 consecutive months exceed 450 
        million pounds of butter, but do not exceed 650 million pounds, 
        the Secretary may reduce the purchase price under subsection 
        (b)(3) during the immediately following month by not more than 
        10 cents per pound.
            (5) Butter inventories in excess of 650 million pounds.--If 
        net removals for a period of 12 consecutive months exceed 650 
        million pounds of butter, the Secretary may reduce the purchase 
        price under subsection (b)(3) during the immediately following 
        month by not more than 20 cents per pound.
            (6) Nonfat dry milk inventories in excess of 600 million 
        pounds.--If net removals for a period of 12 consecutive months 
        exceed 600 million pounds of nonfat dry milk, but do not exceed 
        800 million pounds, the Secretary may reduce the purchase price 
        under subsection (b)(4) during the immediately following month 
        by not more than 5 cents per pound.
            (7) Nonfat dry milk inventories in excess of 800 million 
        pounds.--If net removals for a period of 12 consecutive months 
        exceed 800 million pounds of nonfat dry milk, the Secretary may 
        reduce the purchase price under subsection (b)(4) during the 
        immediately following month by not more than 10 cents per 
        pound.
    (d) Uniform Purchase Price.--The prices that the Secretary pays for 
cheese, butter, or nonfat dry milk, respectively, under subsection (a) 
shall be uniform for all regions of the United States.
    (e) Sales From Inventories.--In the case of each commodity 
specified in subsection (b) that is available for unrestricted use in 
inventories of the Commodity Credit Corporation, the Secretary may sell 
the commodity at the market prices prevailing for that commodity at the 
time of sale, except that the sale price may not be less than 110 
percent of the minimum purchase price specified in subsection (b) for 
that commodity.
    (f) Net Removals Defined.--In this section, the term ``net 
removals'' means--
            (1) the sum of the quantity of a product described in 
        subsection (a) purchased by the Commodity Credit Corporation 
        under this section and the quantity of such product exported 
        under section 153 of the Food Security Act of 1985 (15 U.S.C. 
        713a-14); less
            (2) the amount of such product sold for unrestricted use by 
        the Commodity Credit Corporation.
    (g) Commodity Credit Corporation.--The Secretary shall use the 
funds of the Commodity Credit Corporation to carry out this section.

SEC. 1402. DAIRY FORWARD PRICING PROGRAM.

    (a) Program Required.--The Secretary of Agriculture shall establish 
a program under which milk producers and cooperative associations of 
producers are authorized to voluntarily enter into forward price 
contracts with milk handlers.
    (b) Minimum Milk Price Requirements.--Payments made by milk 
handlers to milk producers and cooperative associations of producers, 
and prices received by milk producers and cooperative associations, in 
accordance with the terms of a forward price contract authorized by 
subsection (a), shall be deemed to satisfy--
            (1) all uniform and minimum milk price requirements of 
        paragraphs (B) and (F) of subsection (5) of section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 627), reenacted with 
        amendments by the Agricultural Marketing Agreement Act of 1937; 
        and
            (2) the total payment requirement of paragraph (C) of such 
        subsection.
    (c) Milk Covered by Program.--
            (1) Covered milk.--The program shall apply only with 
        respect to the marketing of federally regulated milk that--
                    (A) is not classified as Class I milk or otherwise 
                intended for fluid use; and
                    (B) is in the current of interstate or foreign 
                commerce or directly burdens, obstructs, or affects 
                interstate or foreign commerce in federally regulated 
                milk.
            (2) Relation to class i milk.--To assist milk handlers in 
        complying with the limitation in paragraph (1)(A) without 
        having to segregate or otherwise individually track the source 
        and disposition of milk, a milk handler may allocate milk 
        receipts from producers, cooperatives, and other sources that 
        are not subject to a forward contract to satisfy the handler's 
        obligations with regard to Class I milk usage.
    (d) Voluntary Program.--A milk handler may not require 
participation in a forward pricing contract as a condition of the 
handler receiving milk from a producer or cooperative association of 
producers, and such producer or cooperative association may continue to 
have their milk priced under the order's minimum payment provisions. 
The Secretary shall investigate complaints made by producers or 
cooperative associations of coercion by handlers to enter into forward 
contracts, and if the Secretary finds evidence of such coercion, the 
Secretary shall take appropriate action.
    (e) Duration.--No forward price contract may be entered into under 
this program after September 30, 2012, and no forward contract entered 
into under the program may extend beyond September 30, 2015.

SEC. 1403. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Extension.--Subsection (a) of section 153 of the Food Security 
Act of 1985 (15 U.S.C. 713a-14) is amended by striking ``2007'' and 
inserting ``2012''.
    (b) Compliance With Trade Agreements.--Section 153 of the Food 
Security Act of 1985 (15 U.S.C. 713a-14) is amended--
            (1) in subsection (c), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) the maximum volume of dairy product exports allowable 
        consistent with the obligations of the United States under the 
        Uruguay Round Agreements approved under section 101 of the 
        Uruguay Round Agreements Act (19 U.S.C. 3511) is exported under 
        the program each year (minus the volume sold under section 1163 
        of this Act (Public Law 99-198; 7 U.S.C. 1731 note) during that 
        year), except to the extent that the export of such a volume 
        under the program would, in the judgment of the Secretary, 
        exceed the limitations on the value set forth in subsection 
        (f); and''; and.
            (2) in subsection (f), by striking paragraph (1) and 
        inserting the following new paragraph:
            ``(1) Funds and commodities.--Except as provided in 
        paragraph (2), the Commodity Credit Corporation shall in each 
        year use money and commodities for the program under this 
        section in the maximum amount consistent with the obligations 
        of the United States under the Uruguay Round Agreements 
        approved under section 101 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3511), minus the amount expended under section 1163 
        of this Act (Public Law 99-198; 7 U.S.C. 1731 note) during that 
        year.''.

SEC. 1404. REVISION OF FEDERAL MARKETING ORDER AMENDMENT PROCEDURES.

    Subsection (17) of section 8c of the Agricultural Adjustment Act (7 
U.S.C. 608c), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended to read as follows:
    ``(17) Provisions Applicable to Amendments.--
            ``(A) Applicability to amendments.--The provisions of this 
        section and section 8d, applicable to orders shall be 
        applicable to amendments to orders.
            ``(B) Advance notice of hearing.--Notice of a hearing upon 
        a proposed amendment to any order issued pursuant to this 
        section shall be given not less than 3 days before the date 
        fixed for the hearing, and such notice shall be deemed to be 
        due notice of the hearing.
            ``(C) Prompt response to requests for amendment hearings.--
        Not more than 30 days after receipt of a written request for an 
        amendment hearing regarding a milk marketing order, the 
        Secretary shall--
                    ``(i) issue a denial of the request; or
                    ``(ii) issue notice of the hearing, which shall 
                begin no more than 60 days, and conclude no more than 
                90 days, after receipt of the request.
            ``(D) Submission and use of evidence.--The proponents of 
        any amendment proposed to be made to a milk marketing order 
        shall file with the Secretary all testimony and other evidence 
        in support of the amendment, in written form, at least 7 
        business days before the date fixed for the hearing. The 
        Secretary shall make such written testimony and other evidence 
        available to interested members of the public. Subject to any 
        evidentiary objections and cross examination of submitting 
        witness, the written testimony and evidence shall be entered 
        into evidence without being read at the hearing.
            ``(E) Issuance of decision.--The Secretary shall issue a 
        recommended decision on a proposed amendment to a milk 
        marketing order not later than 90 days after the date set by 
        the Administrative Law Judge for the submission of post-hearing 
        proposed findings and conclusions and written arguments or 
        briefs. The final decision shall be issued not later than 60 
        days after the date on which the recommended decision was 
        issued.
            ``(F) Avoiding duplication.--The Secretary shall not be 
        required to call a hearing on any amendment proposed to be made 
        to a milk marketing order in response to an application for a 
        hearing on such proposed amendment if the application 
        requesting the hearing is received by the Secretary within 90 
        days after the date on which the Secretary has announced the 
        decision on a previously proposed amendment to that order and 
        the two proposed amendments are essentially the same.''.

SEC. 1405. DAIRY INDEMNITY PROGRAM.

    Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 1406. EXTENSION OF MILK INCOME LOSS CONTRACT PROGRAM.

    Section 1502(c)(3)(B) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7982(c)(3)(B)), as amended by section 9006(a) of the 
U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Public Law 110-28, 121 Stat. 
217), is amended by striking ``2007'' and inserting ``2012''.

SEC. 1407. DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Extension of Promotion Authority.--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 ``2012''.
    (b) Definition of United States for Promotion Program.--Section 111 
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is 
amended--
            (1) by striking subsection (l) and inserting the following 
        new subsection:
    ``(l) the term `United States', when used in a geographical sense, 
means all of the States, the District of Columbia, and the Commonwealth 
of Puerto Rico;''; and
            (2) in subsection (m), by striking ``(as defined in 
        subsection (l))''.
    (c) Definition of United States for Research Program.--Section 130 
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4531)) is 
amended by striking paragraph (12) and inserting the following new 
paragraph:
            ``(12) the term `United States', when used in a 
        geographical sense, means all of the States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.''.
    (d) Refund of Assessments on Imported Dairy Products.--Section 
113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4504(g)) is amended by adding at the end the following:
            ``(7) Refund of assessments on certain imported products.--
                    ``(A) In general.--An importer is entitled to a 
                refund of any assessment paid under this subsection on 
                imported dairy products imported under a contract 
                entered into prior to July 26, 2007.
                    ``(B) Expiration.--Refunds under paragraph (A) 
                shall expire one year after the date of the enactment 
                of the Farm, Nutrition, and Bioenergy Act of 2007.''.

SEC. 1408. REPORT ON DEPARTMENT OF AGRICULTURE REPORTING PROCEDURES FOR 
              NONFAT DRY MILK.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall submit to Congress a report 
regarding Department of Agriculture reporting procedures for nonfat dry 
milk and the impact of these procedures on Federal milk marketing order 
minimum prices during the period beginning on July 1, 2006, and ending 
on the date of the enactment of this Act.

SEC. 1409. FEDERAL MILK MARKETING ORDER REVIEW COMMISSION.

    (a) Establishment.--Subject to the availability of appropriations 
to carry out this section, the Secretary of Agriculture shall establish 
a commission to be known as the ``Federal Milk Marketing Order Review 
Commission'', in this section referred to as the ``commission'', which 
shall conduct a comprehensive review and evaluation of--
            (1) the current Federal milk marketing order system; and
            (2) non-Federal milk marketing order systems.
    (b) Elements of Review and Evaluation.--As part of the review and 
evaluation under subsection (a), the commission shall consider 
legislative and regulatory options for--
            (1) ensuring that the competitiveness of dairy products 
        with other competing products in the marketplace is preserved 
        and enhanced;
            (2) enhancing the competitiveness of American dairy 
        producers in world markets;
            (3) increasing the responsiveness of the Federal milk 
        marketing order system to market forces;
            (4) streamlining and expediting the process by which 
        amendments to Federal milk market orders are adopted;
            (5) simplifying the Federal milk marketing order system;
            (6) evaluating whether the Federal milk marketing order 
        system, established during the Great Depression, continues to 
        serve the interests of the public, dairy processors, and dairy 
        farmers;
            (7) evaluating whether Federal milk marketing orders are 
        operating in a manner to minimize costs to taxpayers and 
        consumers; and
            (8) evaluating the nutritional composition of milk, 
        including the potential benefits and costs of adjusting the 
        milk content standards.
    (c) Membership.--
            (1) Composition.--The commission shall consist of 18 
        members.
            (2) Members.--As soon as practicable after the date on 
        which funds are first made available to carry out this section, 
        commission members shall be appointed as follows:
                    (A) Two members appointed by the Chairman of the 
                Committee on Agriculture of the House of 
                Representatives, in consultation with the ranking 
                member of the Committee on Agriculture of the House of 
                Representatives.
                    (B) Two members appointed by the Chairman of the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate, in consultation with the ranking member of 
                the Committee on Agriculture, Nutrition and Forestry of 
                the Senate.
                    (C) Fourteen members appointed by the Secretary of 
                Agriculture.
            (3) Special appointment requirements.--In the case of the 
        members to be appointed under paragraph (2)(C), the Secretary 
        shall comply with the following requirements:
                    (A) At least one member shall represent a national 
                consumer organization.
                    (B) At least four members shall represent land-
                grant universities or ASCARR institutions with 
                accredited dairy economic programs, with two of these 
                members being experts in the field of economics.
                    (C) At least one member shall represent the food 
                and beverage retail sector.
                    (D) Four dairy producer and four dairy processors, 
                appointed so as to balance geographical distribution of 
                milk production and dairy processing, reflect all 
                segments of dairy processing, and represent all regions 
                of the United States equitably, including States that 
                operate outside of a Federal milk marketing order.
            (4) Chair.--The commission shall elect one of its appointed 
        members to serve as chairperson for the duration of the 
        commission's proceedings.
            (5) Vacancy.--Any vacancy occurring before the termination 
        of the commission shall be filled in the same manner as the 
        original appointment.
            (6) Compensation.--Members of the commission shall serve 
        without compensation, but shall be reimbursed by the Secretary 
        of Agriculture from existing budget authority for necessary and 
        reasonable expenses incurred in the performance of the duties 
        of the commission.
    (d) Report.--Not later than two years after the date of the first 
meeting of the commission, the commission shall submit to the Secretary 
of Agriculture and Congress a report setting forth the results of the 
review and evaluation conducted under this section, including such 
recommendations regarding the legislative and regulatory options 
considered under subsection (b) as the commission considers to be 
appropriate. The report findings shall reflect, to the extent 
practicable, a consensus opinion of the commission members, but the 
report may include majority and minority findings regarding those 
matters for which consensus was not reached.
    (e) Advisory Nature.--The commission is wholly advisory in nature, 
and the recommendations of the commission are non-binding.
    (f) No Effect on Existing Programs.--The Secretary shall not allow 
the existence of the commission to impede, delay, or otherwise affect 
any decision making process of the Department of Agriculture, including 
any rulemaking procedures planned, proposed, or near completion.
    (g) Administrative Assistance.--The Secretary shall provide 
administrative support to the commission, and expend such funds as 
necessary from existing budget authority to carry out this 
responsibility.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
    (i) Termination.--The commission shall terminate immediately after 
submission of the report under subsection (d).

                       Subtitle E--Administration

SEC. 1501. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--The Secretary shall use 
the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this title.
    (b) Determinations by Secretary.--A determination made by the 
Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary and the Commodity 
        Credit Corporation, as appropriate, shall promulgate such 
        regulations as are necessary to implement this title.
            (2) Procedure.--The promulgation of the regulations and 
        administration of this title shall be made without regard to--
                    (A) chapter 35 of title 44, United States Code 
                (commonly known as the ``Paperwork Reduction Act'');
                    (B) the Statement of Policy of the Secretary of 
                Agriculture effective July 24, 1971 (36 Fed. Reg. 
                13804), relating to notices of proposed rulemaking and 
                public participation in rulemaking; and
                    (C) the notice and comment provisions of section 
                553 of title 5, United States Code.
            (3) Congressional review of agency rulemaking.--In carrying 
        out this subsection, the Secretary shall use the authority 
        provided under section 808 of title 5, United States Code.
    (d) Adjustment Authority Related to Trade Agreements Compliance.--
            (1) Required determination; adjustment.--If the Secretary 
        determines that expenditures under subtitles A through E that 
        are subject to the total allowable domestic support levels 
        under the Uruguay Round Agreements (as defined in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501)), as in 
        effect on the date of enactment of this Act, will exceed such 
        allowable levels for any applicable reporting period, the 
        Secretary shall, to the maximum extent practicable, make 
        adjustments in the amount of such expenditures during that 
        period to ensure that such expenditures do not exceed such 
        allowable levels.
            (2) Congressional notification.--Before making any 
        adjustment under paragraph (1), the Secretary shall submit to 
        the Committee on Agriculture of the House of Representatives or 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report describing the determination made under that 
        paragraph and the extent of the adjustment to be made.

SEC. 1502. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The following provisions 
of the Agricultural Adjustment Act of 1938 shall not be applicable to 
the 2008 through 2012 crops of covered commodities, peanuts, and sugar 
and shall not be applicable to milk during the period beginning on the 
date of enactment of this Act through December 31, 2012:
            (1) Parts II through V of subtitle B of title III (7 U.S.C. 
        1326 et seq.).
            (2) In the case of upland cotton, section 377 (7 U.S.C. 
        1377).
            (3) Subtitle D of title III (7 U.S.C. 1379a et seq.).
            (4) Title IV (7 U.S.C. 1401 et seq.).
    (b) Agricultural Act of 1949.--The following provisions of the 
Agricultural Act of 1949 shall not be applicable to the 2008 through 
2012 crops of covered commodities, peanuts, and sugar and shall not be 
applicable to milk during the period beginning on the date of enactment 
of this Act and through December 31, 2012:
            (1) Section 101 (7 U.S.C. 1441).
            (2) Section 103(a) (7 U.S.C. 1444(a)).
            (3) Section 105 (7 U.S.C. 1444b).
            (4) Section 107 (7 U.S.C. 1445a).
            (5) Section 110 (7 U.S.C. 1445e).
            (6) Section 112 (7 U.S.C. 1445g).
            (7) Section 115 (7 U.S.C. 1445k).
            (8) Section 201 (7 U.S.C. 1446).
            (9) Title III (7 U.S.C. 1447 et seq.).
            (10) Title IV (7 U.S.C. 1421 et seq.), other than sections 
        404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
            (11) Title V (7 U.S.C. 1461 et seq.).
            (12) Title VI (7 U.S.C. 1471 et seq.).
    (c) Suspension of Certain Quota Provisions.--The joint resolution 
entitled ``A joint resolution relating to corn and wheat marketing 
quotas under the Agricultural Adjustment Act of 1938, as amended'', 
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable 
to the crops of wheat planted for harvest in the calendar years 2008 
through 2012.

SEC. 1503. PAYMENT LIMITATIONS.

     (a) Extension and Revision of Limitations.--
            (1) Extension.--Sections 1001 and 1001C(a) of the Food 
        Security Act of 1985 (7 U.S.C. 1308, 1308-3(a)) are amended by 
        striking ``Farm Security and Rural Investment Act of 2002'' 
        each place it appears (other than in subsection (d)(1) of 
        section 1001 of such Act) and inserting ``Farm, Nutrition, and 
        Bioenergy Act of 2007''.
            (2) Combination of limits.--Section 1001 of the Food 
        Security Act of 1985 (7 U.S.C. 1308) is amended by striking 
        subsections (b) and (c) and inserting the following new 
        subsections:
    ``(b) Limitation on Direct and Counter-Cyclical Payments for 
Covered Commodities (other Than Peanuts).--
            ``(1) Direct payments.--The total amount of direct payments 
        received, directly or indirectly, by a person or any legal 
        entity (except a joint venture or a general partnership) in any 
        crop year under subtitle A of title I of the Farm, Nutrition, 
        and Bioenergy Act of 2007 for 1 or more covered commodities 
        (except for peanuts) may not exceed $60,000.
            ``(2) Counter-cyclical payments.--The total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        a person or any legal entity (except a joint venture or a 
        general partnership in any crop year under subtitle A of title 
        I of the Farm, Nutrition, and Bioenergy Act of 2007 for one or 
        more covered commodities (except for peanuts) may not exceed 
        $65,000.
    ``(c) Limitation on Direct and Counter-Cyclical Payments for 
Peanuts.--
            ``(1) Direct payments.--The total amount of direct payments 
        received, directly or indirectly, by a person or any legal 
        entity (except a joint venture or a general partnership) in any 
        crop year under subtitle A of title I of the Farm, Nutrition, 
        and Bioenergy Act of 2007 for peanuts may not exceed $60,000.
            ``(2) Counter-cyclical payments.--The total amount of 
        counter-cyclical payments received, directly or indirectly, by 
        a person or any legal entity (except a joint venture or a 
        general partnership in any crop year under subtitle A of title 
        I of the Farm, Nutrition, and Bioenergy Act of 2007 for peanuts 
        may not exceed $65,000.''.
    (b) Direct Attribution.--Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (1) the following 
                new paragraphs:
            ``(2) Legal entity.--The term `legal entity' means an 
        entity that is created under Federal or State law and that--
                    ``(A) owns land or an agricultural commodity; or
                    ``(B) produces an agricultural commodity.
            ``(3) Person.--The term `person' means a natural person, 
        and does not include a legal entity.'';
            (2) by striking subsections (d) through (e) and inserting 
        the following new subsections:
    ``(d) Attribution of Payments.--
            ``(1) In general.--In implementing subsections (b) and (c), 
        the Secretary shall issue such regulations as are necessary to 
        ensure that the total amount of payments are attributed to a 
        person by taking into account the direct and indirect ownership 
        interests of the person in a legal entity that is eligible to 
        receive such payments.
            ``(2) Payments to a person.--Every payment made directly to 
        a person shall be combined with the person's pro rata interest 
        in payments received by a legal entity in which the person has 
        a direct or indirect ownership interest.
            ``(3) Payments to a legal entity.--
                    ``(A) In general.--Every payment made to a legal 
                entity shall be attributed to those persons who have a 
                direct or indirect ownership interest in the legal 
                entity.
                    ``(B) Attribution of payments.--
                            ``(i) Payment limits.--Except as provided 
                        in clause (ii), payments made to a legal entity 
                        shall not exceed the amounts specified in 
                        subsections (b) and (c).
                            ``(ii) Exception.--Payments made to a joint 
                        venture or a general partnership shall not 
                        exceed, for each payment specified in 
                        subsections (b) and (c), the amount determined 
                        by multiplying the maximum payment amount 
                        specified in subsections (b) and (c) by the 
                        number of persons and legal entities (other 
                        than joint ventures and general partnerships) 
                        that comprise the ownership of the joint 
                        venture or general partnership.
            ``(4) Four levels of attribution for embedded entities.--
                    ``(A) In general.--Attribution of payments made to 
                legal entities shall be traced through four levels of 
                ownership in entities.
                    ``(B) First level.--Any payments made to a legal 
                entity (a first-tier entity) that is owned in whole or 
                in part by a person shall be attributed to the person 
                in an amount that represents the direct ownership in 
                the first-tier entity by the person.
                    ``(C) Second level.--Any payments made to a first-
                tier entity that is owned in whole or in part by 
                another legal entity (a second-tier entity) shall be 
                attributed to the second-tier entity in proportion to 
                the second-tier entity's ownership in the first-tier 
                entity. If the second-tier entity is owned in whole or 
                in part by a person, the amount of the payment made to 
                the first-tier entity shall be attributed to the person 
                in the amount that represents the indirect ownership in 
                the first-tier entity by the person.
                    ``(D) Third and fourth levels.--The Secretary shall 
                attribute payments at the third and fourth tiers of 
                ownership in the same manner as specified in 
                subparagraph (C) unless the fourth-tier of ownership is 
                that of a fourth-tier entity and not that of a person, 
                in which case the Secretary shall reduce the amount of 
                the payment to be made to the first-tier entity in the 
                amount that represents the indirect ownership in the 
                first-tier entity by the fourth-tier entity.
    ``(e) Special Rules.--
            ``(1) Minor children.--Payments received by a child under 
        the age of 18 shall be attributed to the child's parents, 
        except that the Secretary shall issue regulations which provide 
        the conditions under which payments received by a child under 
        the age of 18 will not be attributed to the child's parents.
            ``(2) Marketing cooperatives.--Subsections (b) and (c) 
        shall not apply to a cooperative association of producers with 
        respect to commodities produced by its members which are 
        marketed by such association on behalf of its members but shall 
        apply to such producers as persons.
            ``(3) Trusts and estates.--
                    ``(A) In general.--With respect to irrevocable 
                trusts and estates, the Secretary shall administer the 
                provisions of this subtitle in such manner as the 
                Secretary determines will ensure that fair and 
                equitable treatment of the beneficiaries of such trusts 
                and estates.
                    ``(B) Irrevocable trust.--In order for a trust to 
                be considered an irrevocable trust, the terms of the 
                trust agreement must not allow for modification or 
                termination of the trust by the grantor, allow for the 
                grantor to have any future, contingent, or remainder 
                interest in the corpus of the trust, or provide for the 
                transfer of the corpus of the trust to the remainder 
                beneficiary in less than 20 years from the date the 
                trust is established except in cases where the transfer 
                is contingent on the remainder beneficiary achieving at 
                least the age of majority or is contingent on the death 
                of the grantor or income beneficiary.
                    ``(C) Revocable trust.--A revocable trust shall be 
                considered to be the same person as the grantor of the 
                trust.
            ``(4) Cash rent tenants.--
                    ``(A) Definition.--In this paragraph, the term 
                `cash rent tenant' means a person or legal entity that 
                rents land--
                            ``(i) for cash; or
                            ``(ii) for a crop share guaranteed as to 
                        the amount of the commodity to be paid in rent.
                    ``(B) Restriction.--A cash rent tenant who makes a 
                significant contribution of active personal management, 
                but not of personal labor, with respect to a farming 
                operation is eligible to receive a payment described in 
                subsection (b) only if the tenant makes a significant 
                contribution of equipment used in the farming 
                operation.
            ``(5) Federal agencies.--
                    ``(A) In general.--Federal agencies shall not be 
                eligible to receive any payment described in subsection 
                (b) or (c).
                    ``(B) Rents land.--A person or legal entity that 
                rents land owned by a Federal agency may receive such 
                payments.
            ``(6) State and local governments.--
                    ``(A) Governments ineligible.--
                            ``(i) In general.--Except as provided in 
                        subparagraphs (B) and (C), State and local 
                        governments and political subdivisions and 
                        agencies of such governments, shall not be 
                        eligible to receive payments described in 
                        subsections (b) and (c).
                            ``(ii) Tenants.--A person or legal entity 
                        that rents land owned by a State or local 
                        government or a political subdivision or agency 
                        of such government, may receive payments 
                        described in subsections (b) and (c) if they 
                        otherwise meet all applicable criteria.
                    ``(B) Exception.--
                            ``(i) In general.--Within the limitation 
                        described in clause (ii), a State and the 
                        political subdivisions and agencies of such 
                        governments, may receive payments described in 
                        subsections (b) and (c), if the State or a 
                        political subdivision or agency of such 
                        government--
                                    ``(I) is the producer of all crops 
                                produced on a farm; and
                                    ``(II) the proceeds from the crop 
                                production are used to maintain a 
                                public school.
                            ``(ii) Limitation.--For each State, the 
                        total amount of payments described in 
                        subsections (b) and (c) that are received 
                        collectively by the State and all political 
                        subdivisions or agencies of such governments 
                        shall not exceed the amounts that one legal 
                        entity may receive in one year as specified in 
                        subsections (b) and (c).
                    ``(C) Share leases.--A State and the political 
                subdivisions and agencies of such governments may, 
                without regard to the provisions of subparagraph (B), 
                receive payments described in subsections (b) and (c) 
                if--
                            ``(i) the payments are received with 
                        respect to land that is share leased to a 
                        private party;
                            ``(ii) the lease was in effect on the date 
                        of enactment of the Farm, Nutrition, and 
                        Bioenergy Act of 2007; and
                            ``(iii) the land is used to maintain a 
                        public school.
            ``(7) Changes in farming operations.--In the administration 
        of this subtitle, the Secretary may not approve any change in a 
        farming operation that otherwise will increase the number of 
        persons to which the limitations under this section are applied 
        unless the Secretary determines that the change is bona fide 
        and substantive. The addition of a family member to a farming 
        operation under the criteria set out in section 1001A shall be 
        considered a bona fide and substantive change in the farming 
        operation.
            ``(8) Denial of program benefits.--
                    ``(A) Two year denial of payment.--A person or 
                legal entity shall be ineligible to receive payments 
                specified in subsections (b) and (c) for that year, and 
                the succeeding crop year, in which the Secretary 
                determines that the person or entity engaged in an 
                activity in which the primary purpose of the activity 
                was to avoid the application of the provisions of this 
                subtitle to the person, legal entity or any other 
                person or legal entity.
                    ``(B) Extended ineligibility.--If the Secretary 
                determines that a person or legal entity, for their 
                benefit or the benefit of any other person or legal 
                entity, has knowingly engaged in, or aided in the 
                creation of fraudulent documents, failed to disclose 
                material information relevant to the administration of 
                this subtitle requested by the Secretary, or committed 
                other equally serious actions as identified in 
                regulations issued by the Secretary, the Secretary may 
                for a period not to exceed five crop years deny the 
                issuance of payments to the person or legal entity.
                    ``(C) Pro rata denial.--Payments otherwise owed to 
                a person or legal entity covered by subparagraphs (A) 
                or (B) shall be denied in a pro rata manner based upon 
                the ownership interest of the person or legal entity in 
                a farm, and payments otherwise payable to the person or 
                legal entity who is a cash rent tenant on a farm owned 
                or under the control of such person or legal entity 
                shall be denied.
            ``(9) Death of owner.--In the event of a transfer of any 
        ownership interest in land or a commodity as the result of the 
        death of a program participant, the new owner of such land or 
        commodity may, if such person is otherwise eligible to 
        participate in the applicable program, succeed to the prior 
        owner's contract and receive payments subject to this section 
        without regard to the amount of payments received by the new 
        owner. Payments made pursuant to this subsection shall not 
        exceed the amount to which the previous owner was entitled to 
        receive under the terms of the contract at the time of the 
        death of the prior owner.''.
    (c) Repeal of Three-Entity Rule.--Section 1001A of the Food 
Security Act of 1985 (7 U.S.C. 1308-1) is amended--
            (1) in the section heading, by striking ``prevention of 
        creation of entities to qualify as separate persons''and 
        inserting ``notification of interests''; and
            (2) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Notification of Interests.--To facilitate administration of 
sections 1001 and this section, each entity or person receiving 
payments described in subsections (b) and (c) of section 1001 as a 
separate person shall provide to the Secretary of Agriculture, at such 
times and in such manner as prescribed by the Secretary, the name and 
social security number of each individual, or the name and taxpayer 
identification number of each entity, that holds or acquires an 
ownership interest in such separate person and shall provide such 
information regarding each entity in which such separate person holds 
an ownership interest.''.
    (d) Amendment for Consistency.--Section 1001A of the Food Security 
Act of 1985 (7 U.S.C. 1308-1) is amended by striking subsection (b) and 
inserting the following new subsections:
    ``(b) Actively Engaged.--
            ``(1) In general.--To be eligible to receive a payment 
        described in subsections (b) and (c) of section 1001, a person 
        or legal entity must be actively engaged in farming as provided 
        in this subsection or subsection (c).
            ``(2) Classes actively engaged.--Except as provided in 
        subsections (c) and (d)--
                    ``(A) a person, including a person participating in 
                a farming operation as a partner in a general 
                partnership, a participant in a joint venture, a 
                grantor of a revocable trust, or a participant in a 
                similar entity as determined by the secretary, shall be 
                considered to be actively engaged in farming with 
                respect to a farm operation if--
                            ``(i) the person makes a significant 
                        contribution (based on the total value of the 
                        farming operation) to the farming operation 
                        of--
                                    ``(I) capital, equipment, or land; 
                                and
                                    ``(II) personal labor or active 
                                personal management;
                            ``(ii) the person's share of the profits or 
                        losses from the farming operation is 
                        commensurate with the contributions of the 
                        person to the farming operation; and
                            ``(iii) the contributions of the person are 
                        at risk;
                    ``(B) a legal entity that is a corporation, joint 
                stock company, association, limited partnership, 
                charitable organization, or other similar entity 
                determined by the Secretary, including any such entity 
                participating in the farming operation as a partner in 
                a general partnership, a participant in a joint 
                venture, a grantor of a revocable trust, or as a 
                participant in a similar entity as determined by the 
                Secretary shall be considered as actively engaged in 
                farming with respect to a farming operation if--
                            ``(i) the entity separately makes a 
                        significant contribution (based on the total 
                        value of the farming operation) of capital, 
                        equipment, or land;
                            ``(ii) the stockholders or members 
                        collectively make a significant contribution of 
                        personal labor or active personal management to 
                        the operation; and
                            ``(iii) the standards provided in clauses 
                        (ii) and (iii) of paragraph (A), as applied to 
                        the entity, are met by the entity;
                    ``(C) if a legal entity that is a general 
                partnership, joint venture, or similar entity, as 
                determined by the Secretary, separately makes a 
                significant contribution (based on the total value of 
                the farming operation involved) of capital, equipment, 
                or land, and the standards provided in clauses (ii) and 
                (iii) of paragraph (A), as applied to the entity, are 
                met by the entity, the partners or members making a 
                significant contribution of personal labor or active 
                personal management shall be considered to be actively 
                engaged in farming with respect to the farming 
                operation involved; and
                    ``(D) in making determinations under this 
                subsection regarding equipment and personal labor, the 
                Secretary shall take into consideration the equipment 
                and personal labor normally and customarily provided by 
                farm operators in the area involved to produce program 
                crops.
    ``(c) Special Classes Actively Engaged.--
            ``(1) Landowner.--A person or legal entity that is a 
        landowner contributing the owned land to a farming operation 
        shall be considered to be actively engaged in farming with 
        respect to the farming operation if the landowner receives rent 
        or income for such use of the land based on the land's 
        production or the operation's operating results, and the person 
        or legal entity meets the standard provided in clauses (ii) and 
        (iii) of subsection (b)(2)(A).
            ``(2) Adult family member.--With respect to a farming 
        operation when a majority of the participants are family 
        members, an adult family member shall be considered to be 
        actively engaged in farming with respect to the farming 
        operation if the person--
                    ``(A) makes a significant contribution, based on 
                the total value of the farming operation, of active 
                personal management or personal labor; and
                    ``(B) such contribution meets the standards 
                provided in clauses (ii) and (iii) of subsection 
                (b)(2)(A).
            ``(3) Sharecropper.--A sharecropper who makes a significant 
        contribution of personal labor to a farming operation shall be 
        considered to be actively engaged in farming with respect to 
        the farming operation if such contribution meets the standards 
        provided in clauses (ii) and (iii) of subsection (b)(2)(A).
            ``(4) Growers of hybrid seed.--In determining whether a 
        person or legal entity growing hybrid seed under contract shall 
        be considered to be actively engaged in farming, the Secretary 
        shall not take into consideration the existence of a hybrid 
        seed contract.
            ``(5) Custom farming services.--A person or legal entity 
        receiving custom farming services will be considered separately 
        eligible for payment limitation purposes if such person or 
        legal entity is actively engaged in farming based on subsection 
        (b)(2) or paragraphs (1) through (5) of this subsection. No 
        other rules with respect to custom farming shall apply in 
        making a determination under this section.
            ``(6) Spouse.--Where one spouse is determined to be 
        actively engaged, the other spouse shall be determined to have 
        met the requirements of subclause (II) of subsection 
        (b)(2)(A)(i) of this section.
    ``(d) Classes Not Actively Engaged.--
            ``(1) Cash rent landlord.--A landlord contributing land to 
        a farming operation shall not be considered to be actively 
        engaged in farming with respect to the farming operation if the 
        landlord receives cash rent, or a crop share guaranteed as to 
        the amount of the commodity to be paid in rent, for such use of 
        the land.
            ``(2) Other persons.--Any other person determined by the 
        Secretary as failing to meet the standards set out in 
        subsections (b)(2) and (c) shall not be considered to be 
        actively engaged in farming with respect to a farming 
        operation.''.
    (e) Transition.--Section 1001 of the Food Security Act of 1985 (7 
U.S.C. 1308), as in effect on the day before the date of the enactment 
of this Act, shall continue to apply with respect to the 2007 crop of 
any covered commodity.

SEC. 1504. ADJUSTED GROSS INCOME LIMITATION.

    (a) Extension of Adjusted Gross Income Limitation.--Section 1001D 
of the Food Security Act of 1985 (7 U.S.C. 1308-3a) is amended--
            (1) in subsection (b)(2), by striking ``Farm Security and 
        Rural Investment Act of 2002'' each place it appears and 
        inserting ``Farm, Nutrition, and Bioenergy Act of 2007''; and
            (2) in subsection (e), by striking ``2007'' and inserting 
        ``2012''.
    (b) Modification of Limitation.--Section 1001D(b) of the Food 
Security Act of 1985 (7 U.S.C. 1308-3a(b)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Caps.--
                    ``(A) Upper limit.--Notwithstanding any other 
                provision of law, an individual or entity shall not be 
                eligible to receive any benefit described in paragraph 
                (2) during a crop year if the average adjusted gross 
                income of the individual or entity exceeds $1,000,000.
                    ``(B) Producer exemption.--Notwithstanding any 
                other provision of law, an individual or entity shall 
                not be eligible to receive any benefit described in 
                paragraph (2) during a crop year if the average 
                adjusted gross income of the individual or entity 
                exceeds $500,000, unless not less than 66.66 percent of 
                the average adjusted gross income of the individual or 
                entity is derived from farming, ranching, or forestry 
                operations, as determined by the Secretary.'';
            (2) in paragraph (2)(A), by striking ``or C''; and
            (3) by adding at the end the following new paragraph:
            ``(3) Income derived from farming, ranching or forestry 
        operations.--In determining what portion of the average 
        adjusted gross income of an individual or entity is derived 
        from farming, ranching, or forestry operations, the Secretary 
        shall include income derived from the following:
                    ``(A) The production of crops, livestock, or 
                unfinished raw forestry products.
                    ``(B) The sale, including the sale of easements and 
                development rights, of farm, ranch, or forestry land or 
                water rights.
                    ``(C) The sale, but not as a dealer, of equipment 
                purchased to conduct farm, ranch, or forestry 
                operations when the equipment is otherwise subject to 
                depreciation expense.
                    ``(D) The rental of land used for farming, 
                ranching, or forestry operations.
                    ``(E) The provision of production inputs and 
                services to farmers, ranchers, and foresters.
                    ``(F) The processing, storing, and transporting of 
                farm, ranch, and forestry commodities.
                    ``(G) The sale of land that has been used for 
                agriculture.''.

SEC. 1505. ADJUSTMENTS OF LOANS.

    Section 162 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7282) is amended--
            (1) in subsection (a), by inserting ``(except for cotton 
        and long grain, medium grain, and short grain rice)'' after 
        ``commodity'';
            (2) in subsection (b), by striking ``Farm Security and 
        Rural Investment Act of 2002'' and inserting ``Farm, Nutrition, 
        and Bioenergy Act of 2007''; and
            (3) by adding at the end the following new subsections:
    ``(d) Adjustment in Loan Rate for Cotton.--
            ``(1) Adjustment authority.--The Secretary may make 
        appropriate adjustments in the loan rate for cotton for 
        differences in quality factors.
            ``(2) Revisions to quality adjustments for upland cotton.--
                    ``(A) Revision.--Within 180 days after the date of 
                the enactment of the Farm, Nutrition, and Bioenergy Act 
                of 2007, the Secretary, after consultation with the 
                private sector as provided in paragraph (3), shall 
                implement revisions in the administration of the 
                marketing assistance loan program for upland cotton to 
                more accurately and efficiently reflect market values 
                for upland cotton.
                    ``(B) Mandatory revisions.--The revisions required 
                under subparagraph (A) shall include the following:
                            ``(i) The elimination or adjustment of 
                        warehouse location differentials to reflect 
                        market conditions.
                            ``(ii) The establishment of differentials 
                        for the various quality factors and staple 
                        lengths of cotton based on a three-year, 
                        weighted moving average of the weighted 
                        designated spot market regions as determined by 
                        regional production.
                            ``(iii) The elimination of any artificial 
                        split in the premium or discount between upland 
                        cotton with a 32 or 33 staple length due to 
                        micronaire;
                            ``(iv) A mechanism to ensure that no 
                        premium or discount is established that exceeds 
                        the premium or discount associated with a leaf 
                        grade that is one better than the applicable 
                        color grade.
                    ``(C) Discretionary revisions.--The revisions under 
                subparagraph (A) may include, at a minimum, the 
                following:
                            ``(i) The use of non-spot market price 
                        data, in addition to spot market price data, 
                        that would enhance the accuracy of the price 
                        information used in determining quality 
                        adjustments under this subsection.
                            ``(ii) Adjustments in the premiums or 
                        discounts associated with upland cotton with a 
                        staple length of 33 or above due to micronaire 
                        with the goal of eliminating any unnecessary 
                        artificial splits in the calculations of such 
                        premiums or discounts.
                            ``(iii) Such other adjustments determined 
                        appropriate by the Secretary, after 
                        consultations conducted in accordance with 
                        paragraph (3).
            ``(3) Consultation with private sector.--
                    ``(A) Prior to revision.--Prior to implementing any 
                revisions to the administration of the marketing 
                assistance loan program for upland cotton, the 
                Secretary should endeavor to consult with an existing 
                private sector committee whose membership includes 
                representatives of the production, ginning, 
                warehousing, cooperative, and merchandising segments of 
                the United States cotton industry and that has 
                developed recommendations concerning such revisions.
                    ``(B) Upon review.--The Secretary shall also 
                consult with the committee referred to in subparagraph 
                (A) when conducting a review of adjustments in the 
                operation of the loan program as provided in paragraph 
                (4).
                    ``(C) Inapplicability of federal advisory committee 
                act.--The Federal Advisory Committee Act (5 U.S.C. 
                App.) shall not apply to consultations under this 
                paragraph with the committee referred to in 
                subparagraph (A).
            ``(4) Review of adjustments.--The Secretary may review the 
        operation of the upland cotton quality adjustments implemented 
        pursuant to this subsection and may make further revisions to 
        the administration of the loan program, by either revoking or 
        revising the actions taken pursuant to paragraph (2)(B) or by 
        revoking or revising any actions taken or authorized to be 
        taken under paragraph (2)(B).
            ``(5) Adjustments in effect prior to revision.--The quality 
        differences (premiums and discounts for quality factors) 
        applicable to the upland cotton loan program (prior to any 
        revisions in accordance with this subsection) shall be 
        established by the Secretary by giving equal weight--
                    ``(A) to loan differences for the preceding crop; 
                and
                    ``(B) to market differences for such crop in the 
                designated United States spot markets.
    ``(e) Rice Limitation.--With respect to long grain rice and medium 
and short grain rice, the Secretary shall not make adjustments in the 
loan rates for such commodities, except for differences in grade and 
quality (including milling yields).''.

SEC. 1506. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7284) is amended by striking ``Farm Security and 
Rural Investment Act of 2002'' each place it appears and inserting 
``Farm, Nutrition, and Bioenergy Act of 2007''.

SEC. 1507. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
              LOANS.

    Section 166 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7286) is amended in subsections (a) and (c)(1) by 
striking ``subtitle B and C of title I of the Farm Security and Rural 
Investment Act of 2002'' each place it appears and inserting ``subtitle 
B of title I of the Farm, Nutrition, and Bioenergy Act of 2007''.

SEC. 1508. ASSIGNMENT OF PAYMENTS.

    (a) In General.--The provisions of section 8(g) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating 
to assignment of payments, shall apply to payments made under the 
authority of this title.
    (b) Notice.--The producer making the assignment, or the assignee, 
shall provide the Secretary with notice, in such manner as the 
Secretary may require, of any assignment made under this section.

SEC. 1509. TRACKING OF BENEFITS.

    As soon as practicable after the date of enactment of this Act, the 
Secretary shall track the benefits provided, directly or indirectly, to 
individuals and entities under titles I and II and the amendments made 
by those titles.

SEC. 1510. UPLAND COTTON STORAGE PAYMENTS.

    Beginning with the 2011 crop of upland cotton, the Secretary may 
not use the funds of the Commodity Credit Corporation to pay storage, 
handling, and other costs associated with the storage of upland cotton 
for which a marketing assistance loan is made under section 1201.

SEC. 1511. GOVERNMENT PUBLICATION OF COTTON PRICE FORECASTS.

    Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is 
amended by striking subsection (d).

SEC. 1512. PREVENTION OF DECEASED PERSONS RECEIVING PAYMENTS UNDER FARM 
              COMMODITY PROGRAMS.

    (a) Identification of Erroneous Payments Made to Deceased 
Persons.--The Secretary of Agriculture shall--
            (1) undertake a study to identify any estate of a deceased 
        person that continued to receive payments under this title for 
        more than two crop years after the death of the person; and
            (2) submit a report containing the results of the study to 
        Congress.
    (b) Notification.--The Secretary shall issue regulations that 
specify deadlines by which a legal entity must notify the Secretary of 
any change in ownership of such entity, including the death of a person 
with a direct or indirect ownership interest in the entity, that may 
affect the entity's eligibility to receive payments or other benefits 
under this title. The Secretary may deny the issuance of such payments 
or benefits to an entity that fails to comply with such regulations.
    (c) Recoupment.--If the Secretary determines that the estate of a 
deceased person failed to timely notify the Farm Service Agency of the 
death, the Secretary shall recoup the erroneous payments made on behalf 
of the deceased person. The Secretary shall withhold payments that 
would otherwise be made under this title to farming operations in which 
the deceased person was actively engaged in farming before death until 
the funds have been recouped.
    (d) Coordination.--The Secretary shall, twice a year, reconcile 
individual tax identification numbers with the Internal Revenue Service 
for recipients of payments under this title to determine recipients' 
living status.

                         TITLE II--CONSERVATION

   Subtitle A--Conservation Programs of the Food Security Act of 1985

Sec. 2101. Conservation reserve program.
Sec. 2102. Wetlands reserve program.
Sec. 2103. Conservation security program.
Sec. 2104. Grassland reserve program.
Sec. 2105. Environmental quality incentives program.
Sec. 2106. Regional water enhancement program.
Sec. 2107. Grassroots source water protection program.
Sec. 2108. Conservation of private grazing land.
Sec. 2109. Great Lakes basin program for soil erosion and sediment 
                            control.
Sec. 2110. Farm and ranchland protection program.
Sec. 2111. Farm viability program.
Sec. 2112. Wildlife habitat incentive program.
           Subtitle B--Conservation Programs Under Other Laws

Sec. 2201. Agricultural management assistance program.
Sec. 2202. Resource Conservation and Development Program.
Sec. 2203. Small watershed rehabilitation program.
              Subtitle C--Additional Conservation Programs

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment 
                            control.
Sec. 2302. Voluntary public access and habitat incentive program.
                 Subtitle D--Administration and Funding

Sec. 2401. Funding of conservation programs under Food Security Act of 
                            1985.
Sec. 2402. Improved provision of technical assistance under 
                            conservation programs.
Sec. 2403. Cooperative conservation partnership initiative.
Sec. 2404. Regional equity and flexibility.
Sec. 2405. Administrative requirements for conservation programs.
Sec. 2406. Annual report on participation by specialty crop producers 
                            in conservation programs.
Sec. 2407. Promotion of market-based approaches to conservation.
Sec. 2408. Establishment of State technical committees and their 
                            responsibilities.
Sec. 2409. Payment limitations.
                  Subtitle E--Miscellaneous Provisions

Sec. 2501. Inclusion of income from affiliated packing and handling 
                            operations as income derived from farming 
                            for application of adjusted gross income 
                            limitation on eligibility for conservation 
                            programs.
Sec. 2502. Encouragement of voluntary sustainability practices 
                            guidelines.
Sec. 2503. Farmland resource information.

   Subtitle A--Conservation Programs of the Food Security Act of 1985

SEC. 2101. CONSERVATION RESERVE PROGRAM.

    (a) Authorization and Eligible Land.--Section 1231 of the Food 
Security Act of 1985 (16 U.S.C. 3831) is amended--
            (1) in subsection (a)--
                    (A) by striking ``2007'' and inserting ``2012''; 
                and
                    (B) by inserting before the period the following: 
                ``and to address issues raised by State, regional, and 
                national conservation initiatives''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``the Farm Security and 
                        Rural Investment Act of 2002'' and inserting 
                        ``the Farm, Nutrition, and Bioenergy Act of 
                        2007''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (B) in paragraph (4), by striking the semicolon at 
                the end of subparagraph (E) and inserting ``; or''.
    (b) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended by striking ``2007'' and 
inserting ``2012''.
    (c) Conservation Priority Areas.--Section 1231(f) of the Food 
Security Act of 1985 (16 U.S.C. 3831(f)) is amended by striking ``the 
Chesapeake Bay Region (Pennsylvania, Maryland, and Virginia)'' and 
inserting ``the Chesapeake Bay Region''.
    (d) Treatment of Multi-Year Grasses and Legumes.--Subsection (g) of 
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is 
amended to read as follows:
    ``(g) Multi-Year Grasses and Legumes.--
            ``(1) In general.--For purposes of this subchapter, alfalfa 
        and other multi-year grasses and legumes in a rotation 
        practice, approved by the Secretary, shall be considered 
        agricultural commodities.
            ``(2) Cropping history.--Alfalfa, when grown as part of a 
        rotation practice, as determined by the Secretary, is an 
        agricultural commodity subject to the cropping history criteria 
        under subsection (b)(1)(B) for the purpose of determining 
        whether highly erodible cropland has been planted or considered 
        planted for 4 of the 6 years referred to in such subsection.''.
    (e) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231(h)(1)(A) of the Food Security Act 
of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking ``2007'' and 
inserting ``2012''.
    (f) Managed Haying and Grazing.--Section 1232(a)(7) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)(7)) is amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``and prescribed grazing for the 
                control of invasive species'' after ``biomass''; and
                    (B) by striking ``and'' at the end of the 
                subparagraph;
            (2) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) managed grazing during the year, except that 
                in permitting such grazing, the Secretary shall--
                            ``(i) reduce the rental payment otherwise 
                        payable under the contract by a percentage 
                        determined by the Secretary to be appropriate; 
                        and
                            ``(ii) require a management plan, including 
                        a grazing rate, approved by the Secretary that 
                        is consistent with section 1231(a);
                    ``(C) dryland crop production and grazing practices 
                on acreage enrolled into the conservation reserve 
                enhancement program announced on May 27, 1998 (63 Fed. 
                Reg. 28965) where the conservation reserve enhancement 
                program is initiated to address declining groundwater 
                or surface water resources and water quality issues 
                associated with declining groundwater or surface water 
                resources and the conservation reserve enhancement 
                contract requires the owner or operator to retire a 
                water right, except that in permitting dryland crop 
                production and grazing, the Secretary shall--
                            ``(i) develop an appropriate working lands 
                        conservation plan that implements conservation 
                        practices suitable to the region to address 
                        soil conservation, water quality, wildlife 
                        habitat, or other environmental benefits;
                            ``(ii) apply the provisions of section 
                        11005 of the Farm, Nutrition, and Bioenergy Act 
                        of 2007 in determining the eligibility for crop 
                        insurance of dryland crop production and 
                        grazing activities allowed under a conservation 
                        reserve enhancement contract for the purposes 
                        of this section, dryland crop production and 
                        grazing activities allowed under a conservation 
                        reserve enhancement contract shall be 
                        considered `noncropland' in applying the 
                        provisions of section 11005 of the Farm, 
                        Nutrition, and Bioenergy Act of 2007;
                            ``(iii) reduce the rental payment otherwise 
                        payable under the contract by an amount 
                        commensurate with the economic value of the 
                        crop production or grazing activity, while 
                        still leaving sufficient financial incentives 
                        for the owner or operator to participate in the 
                        conservation reserve enhancement; and
                            ``(iv) at the request of a State that has 
                        previously entered into a conservation reserve 
                        enhancement program agreement, renegotiate the 
                        agreement to allow for the dryland crop 
                        production and grazing in accordance with this 
                        section; and''.
    (g) Rental Rates.--Section 1234(c) of the Food Security Act of 1985 
(16 U.S.C. 3834(c)) is amended by adding at the end the following new 
paragraph:
            ``(5) County average market dry-land and irrigated cash 
        rental rates.--
                    ``(A) Annual estimates.--Beginning not later than 
                one year after the date of the enactment of the Farm, 
                Nutrition, and Bioenergy Act of 2007, the National 
                Agricultural Statistics Service shall conduct an annual 
                survey of per acre estimates of county average market 
                dry-land and irrigated cash rental rates for cropland 
                and pastureland in all counties or equivalent 
                subdivisions within each State with 20,000 acres or 
                more of cropland and pastureland.
                    ``(B) Public availability of estimates.--The 
                estimates derived as a result of the annual survey 
                conducted under subparagraph (A) shall be maintained on 
                a website of the Department of Agriculture for use by 
                the general public.''.
    (h) Conservation Reserve Program Transition Incentives.--Section 
1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is amended--
            (1) in subsection (c)(1)(B)--
                    (A) in clause (ii), by striking ``or'' at the end;
                    (B) by redesignating clause (iii) as clause (iv); 
                and
                    (C) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) to facilitate a transition of land 
                        subject to the contract from a retired or 
                        retiring owner or operator to a beginning 
                        farmer or rancher, socially disadvantaged 
                        farmer or rancher, or limited resource farmer 
                        or rancher for the purpose of returning some or 
                        all of the land into production using 
                        sustainable grazing or crop production methods; 
                        or''; and
            (2) by adding at the end the following new subsection:
    ``(f) Transition Option for Certain Farmers or Ranchers.--
            ``(1) Duties of the secretary.--In the case of a contract 
        modification approved in order to facilitate the transfer of 
        land subject to a contract from a retired or retiring owner or 
        operator under subsection (c)(1)(B)(iii) to a beginning farmer 
        or rancher, socially disadvantaged farmer or rancher, or 
        limited resource farmer or rancher (in this subsection referred 
        to as a `covered farmer or rancher') the Secretary shall--
                    ``(A) beginning on the date that is 1 year before 
                the date of termination of the contract--
                            ``(i) allow the covered farmer or rancher, 
                        in conjunction with the retired or retiring 
                        owner or operator, to make conservation and 
                        land improvements; and
                            ``(ii) allow the covered farmer or rancher, 
                        at the election of the covered farmer or 
                        rancher, to begin the certification process 
                        under the Organic Foods Production Act of 1990 
                        (7 U.S.C. 6501 et seq.);
                    ``(B) beginning on the date of termination of the 
                contract, require the retired or retiring owner or 
                operator to sell or lease (under a long-term lease or a 
                lease with an option to purchase) to the covered farmer 
                or rancher the land subject to the contract for 
                production purposes;
                    ``(C) require the covered farmer or rancher to 
                develop and implement a comprehensive conservation plan 
                that meets such sustainability criteria as the 
                Secretary may establish;
                    ``(D) provide to the covered farmer or rancher an 
                opportunity to enroll in the conservation security 
                program or the environmental quality incentives program 
                by not later than the date on which the farmer or 
                rancher takes possession of the land through ownership 
                or lease; and
                    ``(E) continue to make annual payments to the 
                retired or retiring owner or operator for not more than 
                an additional 2 years after the date of termination of 
                the contract, if the retired or retiring owner or 
                operator is not a family member (as defined in section 
                1001A(b)(3)(B) of this Act) of the covered farmer or 
                rancher.
            ``(2) Reenrollment.--The Secretary shall provide to a 
        beginning farmer or rancher, socially disadvantaged farmer or 
        rancher, or limited resource farmer or rancher described in 
        paragraph (1) the option to reenroll any applicable partial 
        field conservation practice that is--
                    ``(A) eligible for enrollment under the continuous 
                signup requirement of section 1231(h)(4)(B); and
                    ``(B) part of an approved comprehensive 
                conservation plan.''.
    (i) Early Termination.--Section 1235(e)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3835(e)(1)) is amended by striking ``before January 
1, 1995,''.
    (j) Exceptions to Early Termination.--Section 1235(e)(2) of the 
Food Security Act of 1985 (16 U.S.C. 3835(e)(2)) is amended by adding 
at the end the following new subparagraph:
                    ``(D) Land enrolled under continuous signup.''.

SEC. 2102. WETLANDS RESERVE PROGRAM.

    (a) Establishment and Purpose.--Subsection (a) of section 1237 of 
the Food Security Act of 1985 (16 U.S.C. 3837) is amended to read as 
follows:
    ``(a) Establishment and Purposes.--
            ``(1) Establishment.--The Secretary shall establish a 
        wetlands reserve program to assist owners of eligible lands in 
        restoring and protecting wetlands.
            ``(2) Purposes.--The purposes of the wetlands reserve 
        program are--
                    ``(A) to restore, to create, to protect, or to 
                enhance wetlands on lands that are eligible under 
                subsections (c) and (d); and
                    ``(B) to authorize the Secretary, at the sole 
                discretion of the Secretary, to purchase flood-plain 
                easements.''.
    (b) Maximum Enrollment.--Section 1237(b) of the Food Security Act 
of 1985 (16 U.S.C. 3837(b)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the wetlands reserve program shall not exceed 
        3,605,000 acres.''; and
            (2) by adding at the end the following new paragraphs:
            ``(3) Annual enrollment goal.--Of the total number of acres 
        authorized by paragraph (1), to the maximum extent practicable, 
        the Secretary shall enroll 250,000 acres in each fiscal year.
            ``(4) Flood-plain easements.--Of the acres to be enrolled 
        each fiscal year, not more than 10,000 acres may be enrolled 
        using flood-plain easements.''.
    (c) Eligible Lands.--Subsection (c) of section 1237 of the Food 
Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:
    ``(c) Eligibility.--For purposes of enrolling land into the wetland 
reserve program established under this subchapter during the 2008 
through 2012 fiscal years, land shall be eligible to be placed into 
such reserve if the Secretary determines that--
            ``(1) in the case of wetlands--
                    ``(A) the land maximizes wetland values and 
                functions and wildlife benefits;
                    ``(B) the land is farmed wetland or converted 
                wetland, together with adjacent lands that are 
                functionally dependent on such wetlands, except that 
                converted wetlands where the conversion was not 
                commenced prior to December 23, 1985, shall not be 
                eligible to be enrolled in the program under this 
                section;
                    ``(C) the likelihood of the successful restoration 
                of such land, and the resultant wetland values, merit 
                inclusion of the land into the program taking into 
                consideration the cost of such restoration; and
                    ``(D) the land consists of riparian areas, 
                including areas that link wetlands that are protected 
                by easements or some other device or circumstance that 
                achieves the same purpose as an easement; or
            ``(2) in the case of flood-plain lands--
                    ``(A) the flood-plain land has been damaged by 
                flooding at least once within the previous calendar 
                year, or has been subject to flood damage at least 
                twice within the previous 10 years; or
                    ``(B) the enrollment of other land within the flood 
                plain would contribute to the restoration of the flood 
                storage and flow or erosion control.''.
    (d) Ineligible Lands.--Subsection (e) of section 1237 of the Food 
Security Act of 1985 (16 U.S.C. 3837) is amended to read as follows:
    ``(e) Ineligible Land.--The Secretary may not acquire easements 
on--
            ``(1) in the case of wetlands--
                    ``(A) land that contains timber stands established 
                under the conservation reserve under subchapter B; or
                    ``(B) pasture land established to trees under the 
                conservation reserve under subchapter B; or
            ``(2) in the case of flood-plain lands--
                    ``(A) land on which implementation of restoration 
                practices would not be productive; or
                    ``(B) land that is subject to an existing easement 
                or deed restriction, and the easement or deed provides 
                sufficient protection or restoration of the flood 
                plain's functions and values, as determined by the 
                Secretary.''.
    (e) Easements and Agreements.--Section 1237A of the Food Security 
Act of 1985 (16 U.S.C. 3837a) is amended--
            (1) in subsection (a)(2), by inserting ``if applicable,'' 
        after ``(2)'';
            (2) in subsection (b)--
                    (A) in the matter before paragraph (1), by 
                inserting ``or flood-plain land'' after ``values of 
                wetland'';
                    (B) in paragraph (1)(B), by inserting ``or flood-
                plain land'' after ``wetland''; and
                    (C) in paragraph (3), by inserting ``or flood-plain 
                lands'' after ``wetlands'';
            (3) by striking subsection (f) and inserting the following 
        new subsection:
    ``(f) Compensation.--Compensation for easements acquired by the 
Secretary under this subchapter shall be made in cash in such amount as 
agreed to and specified in the easement agreement. Lands may be 
enrolled through the submission of bids under a procedure established 
by the Secretary. Commendation may be provided in not less than 5, nor 
more than 30, annual payments of equal or unequal size, as agreed to by 
the owner and the Secretary based on the following option that results 
in the lowest amount of compensation to be paid by the Secretary:
            ``(1) A percentage of the fair market value based on the 
        Uniform Standards for Professional Appraisals Procedures, as 
        determined by the Secretary or a percentage of the market value 
        determined by an area-wide market survey.
            ``(2) A geographic cap, prescribed in regulations issued by 
        the Secretary.
            ``(3) The offer made by the landowner.''; and
            (4) by adding at the end the following new subsection:
    ``(h) Acceptance of Contributions.--The Secretary may accept and 
use contributions of non-Federal funds to administer the program under 
this subchapter.''.
    (f) Duties of the Secretary.--Section 1237C of the Food Security 
Act of 1985 (16 U.S.C. 3837c) is amended--
            (1) in subsection (a)(1)--
                    (A) by inserting ``including necessary maitenance 
                activities,'' after ``values,''; and
                    (B) by inserting ``or flood plains land'' after 
                ``wetland''; and
            (2) by striking subsection (c) and inserting the following 
        new subsection:
    ``(c) Ranking of Offers.--
            ``(1) In general.--When evaluating offers from landowners, 
        the Secretary may consider--
                    ``(A) the conservation benefits of obtaining an 
                easement or other interest in the land;
                    ``(B) the cost-effectiveness of each easement or 
                other interest in eligible land, so as to maximize the 
                environmental benefits per dollar expended; and
                    ``(C) whether the landowner or another person is 
                offering to contribute financially to the cost of the 
                easement or other interest in the land to leverage 
                Federal funds.
            ``(2) Conservation benefits.--In determining the 
        acceptability of easement offers, the Secretary may take into 
        consideration--
                    ``(A) in the case of wetlands--
                            ``(i) the extent to which the purposes of 
                        the easement program would be achieved on the 
                        land;
                            ``(ii) the productivity of the land; and
                            ``(iii) the on-farm and off-farm 
                        environmental threats if the land is used for 
                        the production of agricultural commodities; and
                    ``(B) in the case of flood-plain lands--
                            ``(i) the extent to which the purposes of 
                        the easement program would be achieved on the 
                        land;
                            ``(ii) whether the land has been repeatedly 
                        flooded over the last ten years;
                            ``(iii) the extent to which an easement on 
                        the flood-plain land would contribute to the 
                        restoration or management of land in the area 
                        surrounding the flood-plain land; and
                            ``(iv) other factors, as determined by the 
                        Secretary.''.
    (g) Wetlands Reserve Enhancement.--Section 1237D(c) of the Food 
Security Act of 1985 (16 U.S.C. 3837d(c)) is amended by striking 
paragraph (4) and inserting the following new paragraph:
            ``(4) Wetlands reserve enhancement.--
                    ``(A) In general.--The provisions of this 
                subchapter that limit payments to any person, and 
                section 1305(d) of the Agricultural Reconciliation Act 
                of 1987 (Public Law 100-203; 7 U.S.C. 1308 note), shall 
                not apply to payments received by a State, political 
                subdivision, or agency thereof in connection with 
                agreements entered into under a special wetlands 
                reserve enhancement program carried out by that entity 
                that has been approved by the Secretary.
                    ``(B) Agreements.--The Secretary may enter into 
                agreements with States (including political 
                subdivisions and agencies of States) regarding payments 
                described in subparagraph (A) that the Secretary 
                determines will advance the purposes of this 
                subchapter.''.
    (h) Authorization.--The Food Security Act of 1985 is amended by 
inserting after section 1237F (16 U.S.C. 3837f) the following new 
section:

``SEC. 1237G. PERIOD OF AUTHORIZATION.

    ``This subchapter is authorized to be carried out for the 2008 
through 2012 fiscal years.''.

SEC. 2103. CONSERVATION SECURITY PROGRAM.

    (a) Establishment of New Conservation Security Program Through 
2017.--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.) is amended to read as 
follows:

             ``Subchapter A--Conservation Security Program

``SEC. 1238. DEFINITIONS.

    ``In this subchapter:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term under section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
            ``(2) Conservation plan.--The term `conservation plan' 
        means a plan that--
                    ``(A) identifies resources of concern, inventories 
                resources, and establishes benchmark data and 
                stewardship enhancement objectives;
                    ``(B) describes improvements that will enable the 
                producer to meet and exceed the stewardship threshold 
                for all applicable resources of concern; and
                    ``(C) contains a schedule and evaluation plan for 
                the planning, installing, maintaining, and managing new 
                conservation practices, activities, and management 
                measures and maintaining, managing, and improving 
                existing conservation practices, activities, and 
                management measures.
            ``(3) Conservation practice.--The term `conservation 
        practice' means a site-specific land management practice or 
        activity, or a supporting structural practice, that is part of 
        an implemented management system designed to address a priority 
        resource of concern.
            ``(4) Conservation security contract.--The term 
        `conservation security contract' means a contract entered into 
        under this subchapter.
            ``(5) Conservation security program.--The term 
        `conservation security program' means the program established 
        under section 1238A(a).
            ``(6) Management intensity.--The term `management 
        intensity' means the degree, scope, and comprehensiveness of 
        conservation practices, activities, or management measures 
        taken by a producer to address a priority resource of concern 
        to a level exceeding the stewardship threshold.
            ``(7) Nondegradation standard.--The term `nondegradation 
        standard' means the level of natural resource conservation and 
        environmental management measures required to improve and 
        sustain the status and condition of natural and environmental 
        resources to a level that, as determined by the Secretary--
                    ``(A) prevents impairment of soil, water, and air 
                quality and the quality of fish and wildlife habitat; 
                and
                    ``(B) sustains the long-term productivity of 
                agricultural resources.
            ``(8) Priority resource of concern.--The term `priority 
        resource of concern' means a resource of concern identified by 
        the Secretary, consistent with the requirements of section 
        1238C(a), that must be addressed by participants in the 
        conservation security program in a particular watershed or 
        other area within that State.
            ``(9) Producer.--The term `producer' means an owner, 
        operator, landlord, tenant, or sharecropper that--
                    ``(A) shares in the risk of producing any crop or 
                livestock; and
                    ``(B) is entitled to share in the crop or livestock 
                available for marketing from a farm (or would have 
                shared had the crop or livestock been produced).
            ``(10) Resource-specific index.--The term `resource-
        specific index' means an index of management intensity or other 
        similar index, developed by the Secretary, that estimates the 
        expected level of resource and environmental outcomes of the 
        conservation practices, activities, and management measures 
        employed by a producer.
            ``(11) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term under section 355(e) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 2003(e)).
            ``(12) Structural practice.--The term `structural practice' 
        means a site-specific, constructed conservation practice that 
        is integrated with and essential to the successful 
        implementation of the system of land management practices and 
        activities that are the basis of a conservation security 
        contract.

``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

    ``(a) Establishment and Purpose.--The Secretary shall establish, 
and for each of fiscal years 2012 through 2017, carry out a 
conservation security program to assist producers in improving 
environmental quality by addressing priority resources of concern in a 
comprehensive manner.
    ``(b) Eligible Producers.--To be eligible to participate in the 
conservation security program, a producer shall--
            ``(1) demonstrate that the producer is addressing at least 
        one priority resource of concern to a minimum level of 
        management intensity determined by the Secretary; and
            ``(2) develop and submit to the Secretary, and obtain the 
        approval of the Secretary of, a conservation offer.
    ``(c) Eligible Land.--
            ``(1) In general.--Except as provided in paragraph (2), 
        private agricultural land (including cropland, grassland, 
        prairie land, improved pasture land, forest land and rangeland) 
        and land under the jurisdiction of an Indian tribe (as defined 
        by the Secretary) shall be eligible for enrollment in the 
        conservation security program.
            ``(2) Exclusions.--
                    ``(A) Land enrolled in other conservation 
                programs.--Except as provided in subsection (f)(3)(A), 
                the following lands are not eligible for enrollment in 
                the conservation security program:
                            ``(i) Lands enrolled in the conservation 
                        reserve program under subchapter B of chapter 
                        1.
                            ``(ii) Land enrolled in the wetlands 
                        reserve program established under subchapter C 
                        of chapter 1.
                            ``(iii) Land enrolled in the grassland 
                        reserve program established under subchapter C 
                        of chapter 2.
                    ``(B) Conversion to cropland.--Land used for crop 
                production after October 1, 2011, that had not been 
                planted, considered to be planted, or devoted to crop 
                production for at least 4 of the 6 years preceding that 
                date (except for land enrolled in the conservation 
                reserve program or that has been maintained using long-
                term crop rotation practices, as determined by the 
                Secretary) shall not be the basis for any payment under 
                the conservation security program.
    ``(d) Economic Uses.--With respect to eligible land covered by a 
conservation security contract, the Secretary shall permit economic 
uses of the land that--
            ``(1) maintain the agricultural nature of the land; and
            ``(2) are consistent with the conservation purposes of the 
        conservation security program.
    ``(e) Conservation Security Contracts.--
            ``(1) In general.--After a determination that a producer is 
        eligible for the conservation security program, and on approval 
        of the conservation offer of the producer, the Secretary shall 
        enter into a conservation security contract with the producer 
        to enroll the land to be covered by the contract in the 
        conservation security program.
            ``(2) Term.--A conservation security contract shall be for 
        a term of 5 years.
            ``(3) Agricultural operation.--All the acres of the 
        agricultural operation that are under the producer's effective 
        control at the time the producer enters into a conservation 
        security contract shall be covered by the conservation security 
        contract.
            ``(4) Provisions.--The conservation security contract of a 
        producer shall--
                    ``(A) include a conservation plan approved by the 
                Secretary;
                    ``(B) describe the land covered by the conservation 
                security contract;
                    ``(C) state the amount of the stewardship 
                enhancement payment the Secretary agrees to make to the 
                producer each year of the conservation security 
                contract under section 1238C(c);
                    ``(D) describe the new conservation practices and 
                activities the producer is required to implement during 
                the term of the conservation security contract in order 
                to increase the level of management intensity with 
                which the producer addresses a priority resource of 
                concern or priority resources of concern, as designated 
                by the Secretary under section 1238C(a)(1); and
                    ``(E) include such other provisions as the 
                Secretary determines necessary to ensure the 
                conservation purposes of the conservation security 
                program are met.
            ``(5) On-farm research and demonstration or pilot 
        testing.--The Secretary may approve a conservation security 
        contract that includes--
                    ``(A) on-farm conservation research and 
                demonstration activities; and
                    ``(B) pilot testing of new technologies or 
                innovative conservation practices.
    ``(f) Modification.--The Secretary may allow a producer to modify a 
conservation security contract before the expiration of the contract if 
the Secretary determines that failure to modify the contract would 
significantly interfere with achieving the purposes of the conservation 
security program.
    ``(g) Contract Termination.--
            ``(1) Voluntary termination.--A producer may terminate a 
        conservation security contract if the Secretary determines that 
        termination of the contract would not defeat the purposes of 
        the conservation plan of the producer.
            ``(2) Involuntary termination.--The Secretary may terminate 
        a contract under this subchapter if the Secretary determines 
        that the producer violated the contract.
            ``(3) Transfer or change of interest in land subject to 
        conservation security contract.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the transfer, or change in the 
                interest, of a producer in land subject to a 
                conservation security contract shall result in the 
                termination of the conservation security contract.
                    ``(B) Transfer of duties and rights.--Subparagraph 
                (A) shall not apply if, within a reasonable period of 
                time after the date of the transfer or change in the 
                interest in land, the transferee of the land provides 
                written notice to the Secretary that all duties and 
                rights under the conservation security contract have 
                been transferred to, and assumed by, the transferee. 
                The Secretary shall specify what will be considered a 
                reasonable period of time for purposes of providing the 
                notification required by this subparagraph.
    ``(h) Contract Renewal.--At the end of an initial conservation 
security contract of a producer, the Secretary may allow the producer 
to renew the contract for one additional five-year period if the 
producer--
            ``(1) demonstrates compliance with the terms of the 
        existing contract, including a demonstration that the producer 
        has complied with the schedule for the implementation of new 
        practices and activities included in the conservation security 
        contract and has met the stated goals for increasing the level 
        of management intensity with which the producer is addressing 
        the designated priority resource of concern or priority 
        resources of concern; and
            ``(2) agrees to implement and maintain such additional new 
        conservation practices and activities as the Secretary 
        determines necessary and feasible to achieve higher levels of 
        management intensity with which the producer addresses the 
        designated priority resource of concern or priority resources 
        of concern.
    ``(i) Effect of Noncompliance Due to Circumstances Beyond the 
Control of Producers.--The Secretary shall include in the conservation 
security contract a provision to ensure that a producer shall not be 
considered in violation of a conservation security contract for failure 
to comply with the conservation security contract due to circumstances 
beyond the control of the producer, including a disaster or related 
condition, as determined by the Secretary.
    ``(j) Evaluation of Offers.--In evaluating applications by 
producers to enroll in the conservation security program, the Secretary 
shall--
            ``(1) consider the extent to which the anticipated 
        environmental benefits from the contract are provided at least 
        cost relative to other similar activities;
            ``(2) consider the extent to which the producer proposes to 
        increase the level of performance on applicable resource-
        specific indices or the level of management intensity with 
        which the producer addresses the designated priority resources 
        of concern;
            ``(3) consider the extent to which the environmental 
        benefits expected to result from the contract complements other 
        conservation efforts in the watershed or region;
            ``(4) consider the multiple benefits of conservation-based 
        farming systems, including resource-conservation crop 
        rotations, managed rotational grazing, and the adoption of 
        certified production under the national organic production 
        program under the Organic Foods Production Act of 1990 (7 
        U.S.C. 6501 et seq.); and
            ``(5) develop any additional criteria for evaluating 
        applications that the Secretary determines are necessary to 
        ensure that national, State, and local conservation priorities 
        are effectively addressed.
    ``(k) Coordination With Organic Certification.--Within 90 days 
after the date of the enactment of the Farm, Nutrition, and Bioenergy 
Act of 2007, the Secretary shall establish a transparent and producer-
friendly means by which producers may coordinate and simultaneously 
certify eligibly under a conservation security contract and under the 
national organic production program established under the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et seq.).

``SEC. 1238B. DUTIES OF PRODUCERS.

    ``(a) Agreement by Producer.--Under a conservation security 
contract, a producer shall agree--
            ``(1) to implement during the term of the conservation 
        security contract the conservation plan approved by the 
        Secretary;
            ``(2) to maintain, and make available to the Secretary at 
        such times as the Secretary may request, appropriate records 
        showing the effective and timely implementation of the 
        conservation security contract; and
            ``(3) not to engage in any activity during the term of the 
        conservation security contract that would interfere with the 
        purposes of the conservation security program.
    ``(b) Effect of Violation.--On the violation of a term or condition 
of the conservation security contract of a producer--
            ``(1) if the Secretary determines that the violation 
        warrants termination of the conservation security contract, the 
        producer shall--
                    ``(A) forfeit all rights to receive payments under 
                the conservation security contract; and
                    ``(B) refund to the Secretary all or a portion of 
                the payments received by the producer under the 
                conservation security contract, including any advance 
                payments and interest on the payments, as determined by 
                the Secretary;
            ``(2) if the Secretary determines that the violation does 
        not warrant termination of the conservation security contract, 
        the producer shall refund to the Secretary, or accept 
        adjustments to, the payments provided to the producer, as the 
        Secretary determines to be appropriate; or
            ``(3) some combination of the remedies authorized by 
        paragraphs (1) and (2), as determined by the Secretary to be 
        appropriate.

``SEC. 1238C. DUTIES OF THE SECRETARY.

    ``(a) Identification of Priority Resources of Concern.--
            ``(1) Identification at state level.--The Secretary shall 
        ensure that the identification of priority resources of concern 
        is made at the State level so that each priority resource of 
        concern--
                    ``(A) represents a significant environmental 
                concern, including watershed management or wildlife 
                habitat, in the State to which agricultural activities 
                are contributing; and
                    ``(B) is likely to be addressed successfully 
                through the implementation of conservation practices 
                and other activities by producers.
            ``(2) Limitation.--The Secretary shall identify not more 
        than 5 resources of concern as priority resources of concern in 
        a particular watershed or other appropriate region or area 
        within a State.
            ``(3) Advice and consultation.--The Secretary, with the 
        advice of the appropriate State technical committee and in 
        consultation with Federal and State agencies with expertise 
        related to natural resources and environmental quality, shall 
        designate, to the extent practicable, each priority resource of 
        concern identified under paragraph (1) as either a primary, 
        secondary, or tertiary resource of concern.
    ``(b) Development of Resource-Specific Indices.--The Secretary 
shall develop resource-specific indices to measure the management 
intensity with which specific resources of concern are addressed, for 
purposes of determining eligibility and payments for participants in 
the conservation security program.
    ``(c) Stewardship Enhancement Payment.--
            ``(1) Timing of payment.--The Secretary shall make a 
        payment under a conservation security contract as soon as 
        practicable after October 1 of each fiscal year.
            ``(2) Exclusions.--A payment to a producer under this 
        subsection shall not be provided for--
                    ``(A) the design, construction, or maintenance of 
                animal waste storage or treatment facilities or 
                associated waste transport or transfer devices for 
                animal feeding operations; or
                    ``(B) conservation practices and activities for 
                which there is no net cost or loss of income to the 
                producer, as determined by the Secretary.
            ``(3) Availability of payments.--The Secretary shall 
        provide a stewardship enhancement payment to a producer under a 
        conservation security contract to compensate the producer for--
                    ``(A) ongoing implementation and maintenance of 
                conservation practices, activities, and management 
                measures in place on the producers operation at the 
                time the conservation security contract is accepted; 
                and
                    ``(B) installation and adoption of new conservation 
                practices, activities, and management measures or 
                improvements to conservation practices, activities, and 
                management measures in place on the producer's 
                operation, as required by the conservation security 
                contract.
            ``(4) Payment amount.--The amount of the stewardship 
        enhancement payment shall be determined by the Secretary and 
        shall be based, to the maximum extent feasible, on--
                    ``(A) a portion of the actual costs incurred by the 
                producer;
                    ``(B) the income forgone by the producer; and
                    ``(C) resource-specific indices, in any case in 
                which such indices have been developed and implemented.
    ``(d) Payment Limitations.--An individual or entity may not 
receive, directly or indirectly, payments under a conservation security 
contract that, in the aggregate, exceed $150,000 for the 5-year term of 
the conservation security contract, excluding funding arrangements with 
federally recognized Indian Tribes or Alaska Native Corporations.
    ``(e) Regulations.--The Secretary shall promulgate regulations 
that--
            ``(1) provide for adequate safeguards to protect the 
        interests of tenants and sharecroppers, including provision for 
        sharing payments, on a fair and equitable basis; and
            ``(2) prescribe such other rules as the Secretary 
        determines to be necessary to ensure a fair and reasonable 
        application of the limitations established under subsection 
        (d).
    ``(f) Allocation to States.--When making allocations to States of 
funds made available to carry out the conservation security program, 
the Secretary shall give significant consideration to the extent and 
magnitude of the environmental needs associated with agricultural 
production in each State, the degree to which implementation of the 
conservation security program in the State is, or will be, effective in 
helping producers address these needs, and other considerations to 
achieve equitable geographic distributions of funds, as determined by 
the Secretary.
    ``(g) Technical Assistance.--For each of fiscal years 2008 through 
2017, the Secretary shall provide appropriate technical assistance to 
producers for the development and implementation of conservation 
security contracts, in an amount not to exceed 15 percent of the 
amounts expended for the fiscal year.
    ``(h) Data.--The Secretary shall maintain conservation security 
program contract and payment data in a manner that provides detailed 
and segmented data that allows for quantification of the amount of 
payments made to producers for--
            ``(1) the maintenance of conservation practices, 
        activities, and management measures in place on the producer's 
        operation at the time the conservation security offer is 
        accepted by the Secretary;
            ``(2) the installation and adoption of new conservation 
        practices, activities, and management measures and the 
        improvements to conservation practices, activities, and 
        management measures in place on the producer's operation at the 
        time the conservation security offer is accepted by the 
        Secretary;
            ``(3) participation in research, demonstration, and pilot 
        projects; and
            ``(4) the development and periodic assessment and 
        evaluation of comprehensive conservation plans.''.
    (b) Effect on Existing Conservation Security Contracts.--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.), as in effect on the day before the date 
of the enactment of this Act, shall continue to apply to conservation 
security contracts entered into before October 1, 2007. The Secretary 
of Agriculture may continue to make payments under such subchapter, as 
so in effect, with respect to such a conservation security contracts 
during the term of the contract.
    (c) Prohibition on New Contracts.--A conservation security contract 
may not be entered into or renewed 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.), as in effect on the day before the date of the enactment 
of this Act, after September 30, 2007.

SEC. 2104. GRASSLAND RESERVE PROGRAM.

    (a) Enrollment Priority.--Subsection (b) of section 1238N of the 
Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking 
paragraph (3) and inserting the following new paragraph:
            ``(3) Priority for long-term agreements and easements.--Of 
        the total number of acres enrolled in the program at any one 
        time through the methods described in paragraph (2)(A), the 
        Secretary shall ensure that at least 60 percent of the acres 
        were enrolled through the use of 30-year rental agreements and 
        permanent and long-term easements described in clause (ii) of 
        such paragraph.''.
    (b) Enrollment of Acreage.--Subsection (b) of section 1238N of the 
Food Security Act of 1985 (16 U.S.C. 3838n) is amended by striking 
paragraph (1) and inserting the following new paragraph:
            ``(1) Enrollment.--The Secretary shall enroll an additional 
        1,340,000 acres of restored or improved grassland, rangeland, 
        and pastureland in the grassland reserve program during fiscal 
        years 2008 through 2012.''.
    (c) Enrollment of Conservation Reserve Program Land.--Section 1238N 
of the Food Security Act of 1985 (16 U.S.C. 3838n) is amended by adding 
at the end the following new subsections:
    ``(d) Enrollment of Conservation Reserve Program Land.--
            ``(1) Enrollment authorized.--Subject to the eligibility 
        requirements of subsection (c) and all other requirements of 
        this subchapter, land enrolled in the conservation reserve 
        program may be enrolled in the grassland reserve program if the 
        Secretary determines that the land is of high ecological value 
        and under significant threat of conversion to other uses.
            ``(2) Maximum enrollment.--The number of acres of 
        conservation reserve program land enrolled under this 
        subsection in a calendar year shall not exceed 10 percent of 
        the total number of acres enrolled in the grassland reserve 
        program in that calendar year.
            ``(3) Prohibition on duplication of payments.--Land 
        enrolled in the program under this subsection shall no longer 
        be eligible for payments under the conservation reserve 
        program.
    ``(e) Method for Determination of Fair Market Value.--The Secretary 
shall determine the fair market value of land to be enrolled in program 
based on the option specified in paragraph (1), (2), (3), or (4) that 
results in the lowest amount of compensation to be paid by the 
Secretary:
            ``(1) A percentage of the fair market value based on the 
        Uniform Standards for Professional Appraisals Procedures, as 
        determined by the Secretary.
            ``(2) A percentage of the market value determined by an 
        area wide market survey.
            ``(3) A geographic cap, as prescribed in regulations issued 
        by the Secretary.
            ``(4) The offer made by the owner of the land.''.
    (d) Grassland Reserve Enhancement.--Section 1238N of the Food 
Security Act of 1985 (16 U.S.C. 3838n) is amended by inserting after 
subsection (d), as added by subsection (b), the following new 
subsection:
    ``(e) Grassland Reserve Enhancement.--The Secretary may enter into 
such agreements with States, including political subdivisions and 
agencies of States, that the Secretary determines will advance the 
purposes of the grassland reserve program. Section 1305(d) of the 
Agricultural Reconciliation Act of 1987 (Public Law 100-203; 7 U.S.C. 
1308 note) shall not apply to payments received by a State or political 
subdivision or agency thereof in connection with such an agreement.''.
    (e) Use of Private Organizations or State Agencies.--Section 1238Q 
of the Food Security Act of 1985 (16 U.S.C. 3838q) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Authority To Use Private Organizations or States.--The 
Secretary shall permit a private conservation or land trust 
organization (referred to in this section as a `private organization') 
or a State agency to own, write, and enforce an easement under this 
subchapter, in lieu of the Secretary, subject to the right of the 
Secretary to conduct periodic inspections and enforce the easement, 
if--
            ``(1) the Secretary determines that granting the permission 
        will promote protection of grassland, land that contains forbs, 
        and shrubland;
            ``(2) the owner authorizes the private organization or 
        State agency to hold and enforce the easement; and
            ``(3) the private organization or State agency agrees to 
        assume the costs incurred in administering and enforcing the 
        easement, including the costs of restoration or rehabilitation 
        of the land as specified by the owner and the private 
        organization or State agency.'';
            (2) in subsection (b), by striking ``hold'' and inserting 
        ``own, write,''; and
            (3) in subsection (c), by striking ``hold'' and inserting 
        ``own, write,''.

SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Purposes.--Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        forest management, organic transition,'' after ``agricultural 
        production''; and
            (2) by striking paragraphs (3) and (4) and inserting the 
        following new paragraphs:
            ``(3) providing flexible assistance to producers to install 
        and maintain conservation practices that, while sustaining 
        production of food and fiber--
                    ``(A) enhance soil, water, and related natural 
                resources, including grazing land, forestland, wetland, 
                and wildlife; and
                    ``(B) conserve energy;
            ``(4) assisting producers to make beneficial, cost 
        effective changes to cropping systems, grazing management, 
        energy use, forest management, nutrient management associated 
        with livestock, pest or irrigation management, or other 
        practices on agricultural and forested land; and''.
    (b) Definitions.--Section 1240A of the Food Security Act of 1985 
(16 U.S.C. 3839aa-1) is amended--
            (1) by striking paragraph (3) and inserting the following 
        new paragraph:
            ``(3) Land management practice.--
                    ``(A) In general.--The term `land management 
                practice' means a site-specific nutrient or manure 
                management, integrated pest management, irrigation 
                management, tillage or residue management, grazing 
                management, air quality management, forest management, 
                silvicultural practice, or other land management 
                practice carried out on eligible land that the 
                Secretary determines is needed to protect from 
                degradation, in the most cost-effective manner, water, 
                soil, or related resources.
                    ``(B) Forest management practices.--For purposes of 
                subparagraph (A), forest management practices may 
                include activities that the Secretary determines are 
                needed to--
                            ``(i) improve water quality;
                            ``(ii) restore forest biodiversity;
                            ``(iii) control invasive species; or
                            ``(iv) improve watershed health.
                    ``(C) Coordinated implementation.--A land 
                management practice may involve multiple landowners 
                implementing eligible conservation activities in a 
                coordinated fashion.'';
            (2) in paragraph (4), by inserting ``alpacas, bison,'' 
        after ``sheep,'';
            (3) by redesignating paragraphs (3), (4), (5), and (6), as 
        so amended, as paragraphs (4), (5), (6), and (8), respectively;
            (4) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Integrated pest management.--The term `integrated 
        pest management' means a sustainable approach to managing pests 
        by combining biological, cultural, physical, and chemical tools 
        in a way that minimizes economic, health, an environmental 
        risks.''; and
            (5) by inserting after paragraph (6), as so redesignated, 
        the following new paragraph:
            ``(7) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' has the meaning 
        given the term under section 355(e) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 2003(e)).''.
    (c) Eligible Practices.--Section 1240B(a) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(a)) is amended--
            (1) in paragraph (1), by striking ``2010'' and inserting 
        ``2012''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by inserting ``or receives 
                organic certification'' after ``chapter''; and
                    (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                    ``(B) a producer that implements a land management 
                practice, receives technical services from an approved 
                third-party provider, develops a comprehensive nutrient 
                management plan, or implements energy efficiency 
                improvements or renewable energy systems, in accordance 
                with this chapter shall be eligible to receive 
                incentive payments.''.
    (d) Beginning Farmers or Ranchers and Socially Disadvantaged 
Farmers or Ranchers.--Section 1240B(d)(2) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking subparagraph (A) 
and inserting the following new subparagraph:
                    ``(A) Increased cost-share for certain producers.--
                The Secretary shall increase the amount provided under 
                paragraph (1) to a producer that is a beginning farmer 
                or rancher, socially disadvantaged farmer or rancher, 
                or limited resource farmer or rancher to 90 percent of 
                the cost of the practice, as determined by the 
                Secretary.''.
    (e) Additional Support for Use of Gasifier Technology.--Section 
1240B(d)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) 
is amended by adding at the end the following new subparagraph:
                    ``(C) Increased cost-share for use of gasifier 
                technology.--In carrying out this chapter, the 
                Secretary shall promote air quality by providing for a 
                90 percent cost share for those projects that utilize 
                gasifier technology for the purposes of the disposal of 
                animal carcasses and by-products.''.
    (f) Incentive Payments.--Section 1240B(e) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-2(e)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) Availability of incentive payments.--The Secretary 
        shall make incentive payments in an amount and at a rate 
        determined by the Secretary to be necessary to encourage a 
        producer--
                    ``(A) to perform 1 or more land management 
                practices;
                    ``(B) to receive technical services from an 
                approved third-party provider;
                    ``(C) to develop a comprehensive nutrient 
                management plan; or
                    ``(D) to implement energy efficiency improvements 
                or renewable energy systems.''; and
            (2) in paragraph (2), by inserting ``pollinator habitat,'' 
        after ``invasive species,''.
    (g) Allocation of Funding.--Section 1240B(g) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended--
            (1) by striking ``For each'' and inserting the following:
            ``(1) Allocation for livestock production practices.--For 
        each'';
            (2) in such paragraph, as so designated, by striking 
        ``2007'' and inserting ``2012''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Allocation for certain producers.--For each of fiscal 
        years 2007 through 2012, of the funds made available for cost-
        share payments and incentive payments under this chapter, the 
        Secretary shall reserve, for a period of not less than 90 days 
        after the date on which the funds are made available for the 
        fiscal year--
                    ``(A) not less than 5 percent for beginning farmers 
                and ranchers; and
                    ``(B) not less than 5 percent of funds for socially 
                disadvantaged farmers and ranchers and limited resource 
                farmers and ranchers.''.
    (h) Eligibility of Market Agencies and Custom Feeding Businesses.--
Section 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2) is 
amended by adding at the end the following new subsection:
    ``(i) Eligibility of Market Agencies and Custom Feeding Businesses 
for Assistance.--A market agency (as defined in section 301(c) of the 
Packers and Stockyards Act, 1921 (7 U.S.C. 201(c))) or custom feeding 
business may receive technical assistance, cost-share payments, or 
incentive payments under the program. Any reference to `producer' in 
this chapter shall be deemed to include a market agency or custom 
feeding business.''.
    (i) Evaluation of Applications for Cost-Share Payments and 
Incentive Payments.--Section 1240C of the Food Security Act of 1985 (16 
U.S.C. 3839aa-3) is amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST-SHARE PAYMENTS AND 
              INCENTIVE PAYMENTS.

    ``(a) Priorities and Grouping of Applications.--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 
        and approaches proposed are the most efficient means of 
        achieving the anticipated 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) prioritize applications that best fulfill the purpose 
        of the environmental quality incentives program specified in 
        section 1240(1);
            ``(4) develop criteria for evaluating applications that 
        will ensure that national, State, and local conservation 
        priorities are effectively addressed; and
            ``(5) to the greatest extent practicable, group 
        applications of similar crop or livestock operations for 
        evaluation purposes or otherwise evaluate applications relative 
        to other applications for similar farming operations.
    ``(b) Evaluation Process.--The Secretary shall ensure that the 
evaluation process is as streamlined and efficient as practicable in 
the case of applications that--
            ``(1) involve operations with substantial and sound 
        environmental management systems; and
            ``(2) seek a single practice or a limited number of 
        practices to further improve the environmental performance of 
        that system.''.
    (j) Duties of Producers.--Section 1240D(2) of the Food Security Act 
of 1985 (16 U.S.C. 3839aa-4(2)) is amended by striking ``or ranch'' and 
inserting ``, ranch, or forestland''.
    (k) Program Plan.--Section 1240E of the Food Security Act of 1985 
(16 U.S.C. 3839aa-5) is amended by striking subsections (a) and (b) and 
inserting the following new subsections:
    ``(a) Plan of Operations.--To be eligible to receive cost-share 
payments or incentive payments under the program, a producer shall 
submit to the Secretary for approval a plan of operations that--
            ``(1) specifies practices covered under the program;
            ``(2) includes such terms and conditions as the Secretary 
        considers necessary to carry out the program, including a 
        description of the purposes to be met by the implementation of 
        the plan;
            ``(3) in the case of a confined livestock feeding 
        operation, provides for development and implementation of a 
        comprehensive nutrient management plan, if applicable; and
            ``(4) in the case of forestland, is consistent with the 
        provisions of a forest management plan meeting with the 
        approval of the Secretary, which may include a forest 
        stewardship plan, as specified in section 5 of the Cooperative 
        Forestry Assistance Act of 1978 (16 U.S.C. 2103a), other 
        practice plan approved by the State forester, or other plan 
        determined appropriate by the Secretary.
    ``(b) Avoidance of Duplication.--The Secretary shall--
            ``(1) consider a permit acquired under a water or air 
        quality regulatory program as the equivalent of a plan of 
        operations under subsection (a); and
            ``(2) to the maximum extent practicable, eliminate 
        duplication of planning activities under the program under this 
        chapter and comparable conservation programs.''.
    (l) Duties of the Secretary.--Section 1240F of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-6) is amended--
            (1) by striking ``To the extent'' and inserting ``(a) 
        Provision of Assistance.--To the extent''; and
            (2) by adding at the end the following new subsection:
    ``(b) Water Savings.--In the case of a practice primarily intended 
to conserve water, the Secretary may provide assistance to a producer 
under this section only if the Secretary determines that--
            ``(1) the practice results in a minimum reduction, as 
        determined by the Secretary, in the total consumptive use of 
        ground water or surface water resources affected by the 
        practice;
            ``(2) any saved water remains in the source for the useful 
        life of the practice; and
            ``(3) the practice will not result, directly or indirectly, 
        in an increase in the consumptive use of water in the 
        agriculture operation of the producer.''.
    (m) Conservation Innovation Grants.--Section 1240H of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-8) is amended to read as 
follows:

``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

    ``(a) Competitive Grants.--The Secretary shall pay the cost of 
competitive grants that are intended to stimulate innovative approaches 
to leveraging Federal investment in environmental enhancement and 
protection, in conjunction with agricultural production or forest 
resource management, through the program.
    ``(b) Use.--The Secretary may provide grants under this section to 
governmental and non-governmental organizations and persons, on a 
competitive basis, to carry out projects that--
            ``(1) involve producers that are eligible for payments or 
        technical assistance under the program;
            ``(2) leverage funds made available to carry out the 
        program under this chapter with matching funds provided by 
        State and local governments and private organizations to 
        promote environmental enhancement and protection in conjunction 
        with agricultural production;
            ``(3) ensure efficient and effective transfer of innovative 
        technologies and approaches demonstrated through projects that 
        receive funding under this section; and
            ``(4) provide environmental and resource conservation 
        benefits through increased participation by producers of 
        specialty crops.
    ``(c) Pilot Program for Comprehensive Conservation Planning.--
            ``(1) Pilot program required.--The Secretary shall 
        establish a pilot program to undertake comprehensive 
        conservation planning to assist producers before they submit an 
        application for assistance under any of the conservation 
        programs authorized by this subtitle.
            ``(2) Conservation planning assistance.--The Secretary 
        shall undertake pilot projects under the pilot program in the 
        locations specified in paragraph (3) 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 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 results of the comprehensive planning 
        assistance shall be provided to the producer to enable informed 
        choices on the type of financial assistance available under 
        this subtitle 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.
            ``(3) Pilot projects.--Pilot projects in comprehensive 
        conservation planning shall be undertaken in the Chesapeake Bay 
        watershed, and shall include the identification of hydrologic, 
        soil, and rural land use factors that are unique to the 
        Delmarva Peninsula.
            ``(4) Report.--The Secretary shall conduct an assessment of 
        the effectiveness of the pilot program 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.
    ``(d) Air Quality.--Of the funds made available under subsection 
(e)(1), the Secretary shall use $10,000,000 for fiscal year 2008, 
$15,000,000 for fiscal year 2009, $30,000,000 for fiscal year 2010, 
$40,000,000 for fiscal year 2011, and $55,000,000 for fiscal year 2012 
to support air quality improvements to help producers meet State and 
local regulatory requirements related to air quality. Notwithstanding 
the requirements under subsections (a) and (b), these funds shall be 
made available to a State on the basis of air quality concerns facing 
that producers in that State. The funds made available shall be used to 
provide cost-share and incentive payments to producers.
    ``(e) Funding.--
            ``(1) Availability of funds.--Of the funds made available 
        under section 1241(a)(6) for fiscal years 2008 through 2012, 
        the Secretary shall use $30,000,000 for fiscal year 2008, 
        $35,000,000 for fiscal year 2009, $50,000,000 for fiscal year 
        2010, $60,000,000 for fiscal year 2011, and $75,000,000 for 
        fiscal year 2012.
            ``(2) Outreach for certain producers.--Of the funds made 
        available under paragraph (1) for a fiscal year, the Secretary 
        shall use $5,000,000 to make grants to support effective 
        outreach and innovative approaches for outreach and to serve 
        organic producers and producers of specialty crops (as defined 
        in section 3 of the Specialty Crops Competitiveness Act of 2004 
        (Public Law 108-465; 7 U.S.C. 1621 note).
            ``(3) Comprehensive conservation planning.--Of the funds 
        made available under paragraph (1) for a fiscal year, the 
        Secretary shall use $5,000,000 to carry out the comprehensive 
        conservation planning pilot program under subsection (c).''.

SEC. 2106. REGIONAL WATER ENHANCEMENT PROGRAM.

    (a) Purpose and Goals.--The purpose of this section is to authorize 
a regional water enhancement program, within the environmental quality 
incentives program, to enhance performance-based, cost-effective 
conservation carried out through cooperative agreements entered into by 
the Secretary of Agriculture with producers, governmental entities, and 
Indian tribes. The goal of the program is to improve water quality or 
ground and surface water quantity through coordinated program 
activities on agricultural lands. The Secretary will develop goals and 
provide coordinated program assistance for water quality or water 
quantity improvement projects.
    (b) Establishment of Program.--Section 1240I of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-9) is amended to read as follows:

``SEC. 1240I. REGIONAL WATER ENHANCEMENT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Regional water enhancement activities.--The term 
        `regional water enhancement activities' includes resource 
        condition assessment and modeling, water quality, water 
        quantity or water conservation plan development, management 
        system and environmental monitoring and evaluation, cost-share 
        of restoration or enhancement projects, incentive payments for 
        land management practices, easement purchases, conservation 
        contracts with landowners, improved irrigation systems, water 
        banking and other forms of water transactions, groundwater 
        recharge and other conservation related activities that the 
        Secretary determines will help to achieve the water quality or 
        water quantity benefits on agricultural lands identified in a 
        partnership agreement.
            ``(2) Partnership agreement.--The term `partnership 
        agreement' means an agreement between the Secretary and a 
        partner under subsection (d).
            ``(3) Partner.--The term `partner' means an entity that 
        enters into a partnership agreement with the Secretary to carry 
        out regional water enhancement activities. The term includes--
                    ``(A) an agricultural producer, agricultural or 
                silvicultural producer association, or other group of 
                such producers;
                    ``(B) a State or unit of local government, 
                including an irrigation or water district; or
                    ``(C) a federally recognized Indian tribe.
    ``(b) Establishment of Program.--
            ``(1) Establishment.--The Secretary shall establish a 
        regional water enhancement program in accordance with this 
        section to improve water quality or water quantity on a 
        regional scale to benefit working agricultural land and other 
        lands surrounding agricultural land.
            ``(2) Identification of water quality and water quantity 
        priority areas.--The Secretary shall identify areas where 
        protecting or improving water quality, water quantity, or both 
        is a priority. In identifying these areas, the Secretary shall 
        prioritize the Chesapeake Bay, the Upper Mississippi River 
        basin, the Everglades, the Sacramento River watershed, and the 
        Klamath River basin. Not more than 50 percent of the funds made 
        available for the regional water enhancement program shall be 
        reserved for priority areas identified in this paragraph.
    ``(c) Selection of Partners.--
            ``(1) Solicitation of partnership proposals.--Not later 
        than 90 days after the date of the enactment of the Farm, 
        Nutrition, and Bioenergy Act of 2007, the Secretary shall 
        invite prospective partners to submit competitive grant 
        proposals for regional water enhancement partnerships.
            ``(2) Elements.--To be eligible for consideration for 
        participation in the program, a proposal submitted by a partner 
        shall contain the following elements:
                    ``(A) Identification of the exact geographic area 
                for which the partnership is proposed, which may be 
                based on--
                            ``(i) a watershed (or portion thereof);
                            ``(ii) an irrigation, water, drainage 
                        district, including service area; or
                            ``(iii) some other geographic area with 
                        characteristics making it suitable for 
                        landscape-wide program implementation, as may 
                        be determined by the Secretary.
                    ``(B) Identification of the water quality or water 
                quantity issues that are of concern in the area.
                    ``(C) A method for determining a baseline 
                assessment of water quality, water quantity, and other 
                resource conditions in the region.
                    ``(D) A detailed description of the proposed 
                regional water enhancement activities to be undertaken 
                in the area, including an estimated timeline and budget 
                for each activity.
                    ``(E) A description of the performance measures to 
                be used to gauge the effectiveness of the regional 
                water enhancement activities.
                    ``(F) A description of other regional water 
                enhancement activities carried out by the Secretary.
                    ``(G) A description of regional water enhancement 
                activities carried out by partners through other means.
            ``(3) Selection of proposals.--The Secretary shall award 
        grants competitively, based on the following criteria applied 
        by the Secretary:
                    ``(A) Proposals that will result in the inclusion 
                of the highest percentage of agricultural lands and 
                producers in the area.
                    ``(B) Proposals that will result in the highest 
                percentage of on-the-ground activities versus 
                administrative costs.
                    ``(C) Proposals that will provide the greatest 
                contribution to sustaining or enhancing agricultural 
                production in the area or rural economic development.
                    ``(D) Proposals that include performance measures 
                that will allow post-activity conditions to be 
                satisfactorily measured to gauge overall effectiveness.
                    ``(E) Proposals that will capture surface-water 
                runoff on farms through the construction, improvement, 
                or maintenance of irrigation ponds.
                    ``(F) Proposals that have the highest likelihood of 
                improving issues of concern for the area through the 
                participation of multiple interested persons.
                    ``(G) Proposals that will assist producers in 
                meeting a regulatory requirement imposed on lands in 
                agriculture production that reduces the economic scope 
                of the producer's operation.
            ``(4) Duration.--Grants under this subsection shall be made 
        on a multi-year basis, not to exceed 5 years total, except that 
        the Secretary may terminate a grant earlier if the performance 
        measures are not being met.
    ``(d) Partnership Agreements.--
            ``(1) Generally.--Not later than 30 days after the award of 
        a grant to a partner under subsection (c), the Secretary shall 
        enter into a partnership agreement with the grant recipient. At 
        a minimum, the agreement shall contain--
                    ``(A) a description of the respective duties and 
                responsibilities of the Secretary and the partner in 
                carrying out regional water enhancement activities; and
                    ``(B) the criteria that the Secretary will use to 
                measure the overall effectiveness of the regional water 
                enhancement activities funded by the grant in improving 
                the water quality or quantity conditions of the region 
                relative to the performance measures in the grant 
                proposal.
            ``(2) Acceptance of contributions.--The Secretary may 
        accept and use contributions of non-Federal funds to administer 
        the program under this section.
            ``(3) Waiver authority.--The Secretary shall waive the 
        limitation in section 1001D of this Act if the Secretary 
        determines that doing so is necessary to fulfill the objectives 
        of the regional water enhancement program.
    ``(e) Modification of Secretarial Authority.--To the extent that 
the Secretary will be carrying out regional water enhancement 
activities in an area, the Secretary may use the general authorities 
provided in this subtitle to ensure that all producers and landowners 
in the region have the opportunity to participate in such activities.
    ``(f) Relationship With Other Programs.--The Secretary shall ensure 
that, to the extent producers and landowners are individually 
participating in other programs under this subtitle in a region where 
the regional water enhancement program is in effect, any improvements 
to water quality or water quantity attributable to such individual 
participation is included in the evaluation criteria developed under 
subparagraph (d)(1)(B).
    ``(g) Consistency With State Law.--Any regional water enhancement 
activity conducted under this section shall be consistent with State 
water laws.
    ``(h) Funding.--
            ``(1) Availability of funds.--In addition to funds made 
        available to carry out this chapter under section 1241(a)(6), 
        the Secretary shall use funds of the Commodity Credit 
        Corporation to carry out this section in the amount of, to the 
        maximum extent practicable, $60,000,000 for each of fiscal 
        years 2008 through 2012.
            ``(2) Limitation on administrative expenses.--Not more than 
        3 percent of the funds made available under paragraph (1) for a 
        fiscal year may be used for administrative expenses of the 
        Secretary.''.

SEC. 2107. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    (a) Authorization of Appropriations.--Section 1240O(b) of the Food 
Security Act of 1985 (16 U.S.C. 3839bb-2(b)) is amended by striking 
``$5,000,000 for each of fiscal years 2002 through 2007'' and inserting 
``$20,000,000 for each of fiscal years 2008 through 2012''.
    (b) Additional Funding.--Section 1240O of the Food Security Act of 
1985 (16 U.S.C. 3839bb-2) is amended by adding at the end the following 
new subsection:
    ``(c) One-Time Infusion of Funds.--Of the funds of the Commodity 
Credit Corporation, the Secretary shall make available, on a one-time 
basis, $10,000,000 to carry out this section. Such funds shall remain 
available until expended.''.

SEC. 2108. CONSERVATION OF PRIVATE GRAZING LAND.

    Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 
3839bb(e)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 2109. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
              CONTROL.

    Section 1240P(c) of the Food Security Act of 1985 (16 U.S.C. 
3839bb-3(c)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 2110. FARM AND RANCHLAND PROTECTION PROGRAM.

    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--Farm and Ranchland Protection Program

``SEC. 1238H. DEFINITIONS.

    ``In this subchapter:
            ``(1) Eligible entity.--The term `eligible entity' means 
        any of the following:
                    ``(A) An agency of a State or local government or 
                an Indian tribe (including a farmland protection board 
                or land resource council established under State law).
                    ``(B) An organization that is organized for, and at 
                all times since the formation of the organization has 
                been operated principally for, 1 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.
                    ``(C) An organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986 that is 
                exempt from taxation under section 501(a) of that Code.
                    ``(D) An organization described in section 
                509(a)(2) of the Internal Revenue Code of 1986.
                    ``(E) An organization described in section 
                509(a)(3) of the Internal Revenue Code of 1986 that 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--
                    ``(A) is cropland;
                    ``(B) is rangeland;
                    ``(C) is grassland;
                    ``(D) is pasture land;
                    ``(E) is forest land that is an incidental part of 
                an agricultural operation, as determined by the 
                Secretary; or
                    ``(F) contains historical or archaeological 
                resources.
            ``(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) Program.--The term `program' means the farm and 
        ranchland protection program established under section 
        1238I(a).
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.

``SEC. 1238I. FARM AND RANCHLAND PROTECTION PROGRAM.

    ``(a) Establishment.--
            ``(1) Establishment and purpose.--The Secretary 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 that is subject to a pending offer from a 
        certified State or eligible entity for the purpose of 
        protecting the agricultural use and related conservation values 
        of the land by limiting incompatible nonagricultural uses of 
        the land.
            ``(2) Priority.--In carrying out the program, the Secretary 
        shall give the highest priority--
                    ``(A) to protecting farm and ranchland with prime, 
                unique or other productive soils that are at risk of 
                non-agricultural development; or
                    ``(B) to projects that further a State or local 
                policy consistent with the purposes of the program.
    ``(b) Grants to Certified States.--The Secretary shall make grants 
to States certified by the Secretary under subsection (c). Such grants 
shall be made based on demonstrated need for farm and ranch land 
protection. Grants may be made for multiple transactions so long as all 
funds provided under the program are used to purchase conservation 
easements or other interests in land in a timely and effective manner. 
A State receiving a grant under this subsection may use up to 10 
percent of the grant funds for reasonable costs of purchasing and 
enforcing conservation easements.
    ``(c) Certification of States for Grants.--
            ``(1) Certification process.--The Secretary shall implement 
        a process, to be published in the Federal Register, for 
        certifying States as eligible to participate in the program. 
        The Secretary may provide a reasonable transitional period, not 
        to extend past September 30, 2008, in order to allow continued 
        operation of the program for such time as needed for the 
        Secretary to implement the certification process.
            ``(2) Certification requirements.--To be certified under 
        the process implemented under paragraph (1), a State shall 
        demonstrate, at a minimum, the following:
                    ``(A) A legislative consistent with the purposes of 
                the program.
                    ``(B) The necessary authority and the resources to 
                monitor and enforce the terms of conservation easements 
                or other interests in land or to require the holder of 
                such easements or other interests in land acquired with 
                the use of funding under the program to monitor and 
                enforce the terms of such easements or other interests 
                in land.
                    ``(C) Policies and procedures to ensure that, on 
                average, the purchase price of conservation easements 
                or other interests in land purchased with program funds 
                do not exceed the fair market value of the easements or 
                other interests in land.
                    ``(D) Policies and procedures that ensure that 
                conservation easements or other interests in land 
                purchased with program funds will continue to protect 
                the agricultural use and related conservation values of 
                the land.
    ``(d) Agreements With Eligible Entities.--
            ``(1) Agreements authorized.--The Secretary may enter into 
        an agreement with an eligible entity, other than a certified 
        State, under which the entity may purchase conservation 
        easements using a combination of its own funds and funds 
        distributed by the Secretary under the program.
            ``(2) Terms and conditions.--An agreement under this 
        subsection shall stipulate the terms and conditions under which 
        the eligible entity shall use funds provided by the Secretary 
        under the program. The eligible entity shall be authorized to 
        use its own terms and conditions for conservation easements and 
        other purchases of interests in land, so long as--
                    ``(A) such terms and conditions are consistent with 
                the purposes of the program and permit effective 
                enforcement of the conservation purposes of such 
                easements or other interests;
                    ``(B) the eligible entity has in place a 
                requirement consistent with agricultural activities 
                regarding the impervious surfaces to be allowed for any 
                conservation easement or other interest in land 
                purchased using funds provided under the program; and
                    ``(C) the eligible entity requires use of a 
                conservation plan for any highly erodible cropland for 
                which a conservation easement or other interest in land 
                has been purchased using funds provided under the 
                program.
    ``(e) Federal Contingent Right of Enforcement.--The Secretary may 
require the inclusion of a Federal contingent right of enforcement or 
executory limitation in a conservation easement or other interest in 
land for conservation purposes purchased with Federal funds provided 
under the program, in order to enforce the easement as a party of last 
resort. The inclusion of such a right or interest shall not be 
considered to be the Federal acquisition of real property and the 
Federal standards and procedures for land acquisition shall not apply 
to the inclusion of the right or interest.
    ``(f) Review; Revocation.--
            ``(1) Review.--Every 3 years, the Secretary shall review 
        the certification of States under subsection (c) and the 
        performance of eligible entities in meeting the terms and 
        conditions of an agreement under subsection (d).
            ``(2) Revocation.--If, in the determination of the 
        Secretary, a State no longer meets the qualifications described 
        in subsection (c)(2) or an eligible entity is not meeting the 
        terms and conditions of an agreement under subsection (d), the 
        Secretary may--
                    ``(A) revoke the certification of the State or 
                terminate the agreement with the eligible entity; or
                    ``(B) allow the State or eligible entity a 
                specified period of time in which to take such actions 
                as may be necessary to retain its certification or to 
                meet the terms and conditions of the agreement, as the 
                case may be.
    ``(g) Conservation Plan.--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. 
In the case of an easement or other interest in land that is 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.
    ``(h) Cost Sharing.--The share of the cost provided under this 
section for purchasing a conservation easement or other interest in 
land shall not exceed 50 percent of the appraised fair market value of 
the conservation easement or other interest in eligible land. Fair 
market value shall be determined on the basis of an appraisal of the 
conservation easement or other interest in eligible land using an 
industry-approved methodology determined by the entity.''.

SEC. 2111. FARM VIABILITY PROGRAM.

    Section 1238J(b) of the Food Security Act of 1985 (16 U.S.C. 
3838j(b)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 2112. WILDLIFE HABITAT INCENTIVE PROGRAM.

    (a) Reauthorization.--Section 1240N of the Food Security Act of 
1985 (16 U.S.C. 3839bb-1) is amended by adding at the end the following 
new subsection:
    ``(d) Duration of Program.--Using funds made available under 
section 1241(a)(7), the Secretary shall carry out the program during 
fiscal years 2008 through 2012.''.
    (b) Cost Share for Long-Term Agreements and Impact on Scope of 
Operations.--Section 1240N(b)(2) of the Food Security Act of 1985 (16 
U.S.C. 3839bb-1(b)(2)) is amended--
            (1) in the paragraph heading by inserting ``and impact on 
        scope of operations'' after ``agreements'';
            (2) in subparagraph (A), by striking ``years,'' and 
        inserting ``years, or that will assist producers in meeting a 
        regulatory requirement imposed on lands in agriculture 
        production that reduces the economic scope of the producer's 
        operation,''; and
            (3) in subparagraph (B), by striking ``15 percent'' and 
        inserting ``25 percent''.

           Subtitle B--Conservation Programs Under Other Laws

SEC. 2201. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

    (a) Eligible States.--Section 524(b)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1524(b)(1)) is amended--
            (1) by inserting ``Hawaii,'' after ``Delaware,''; and
            (2) by inserting ``Virginia,'' after ``Vermont,''.
    (b) Technical Correction.--Section 524(b)(4)(B)(i) of the Federal 
Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)(i)) is amended by striking 
``Except as provided in clauses (ii) and (iii), the'' and inserting 
``The''.
    (c) Certain Uses.--Section 524(b)(4) of the Federal Crop Insurance 
Act (7 U.S.C. 1524(b)(4)(B)) is amended by adding at the end the 
following new subparagraph:
                    ``(C) Certain uses.--Of the amounts made available 
                to carry out this subsection for a fiscal year, the 
                Commodity Credit Corporation shall use not less than--
                            ``(i) 50 percent to carry out subparagraphs 
                        (A), (B), and (C) of paragraph (2) through the 
                        Natural Resources Conservation Service;
                            ``(ii) 10 percent to provide organic 
                        certification cost share assistance through the 
                        Agricultural Marketing Service; and
                            ``(iii) 40 percent to conduct activities to 
                        carry out subparagraph (F) of paragraph (2) 
                        through the Risk Management Agency.''.

SEC. 2202. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    (a) Locally Led Planning Process.--Section 1528 of the Agriculture 
and Food Act of 1981 (16 U.S.C. 3451) is amended--
            (1) in paragraph (1), by striking ``planning process'' in 
        the matter preceding subparagraph (A) and inserting ``locally 
        led planning process''; and
            (2) in paragraph (9), by striking ``council'' and inserting 
        ``locally led council''.
    (b) Authorized Technical Assistance.--Section 1528(13) of the 
Agriculture and Food Act of 1981 (16 U.S.C. 3451(13)) is amended by 
striking subparagraphs (C) and (D) and inserting the following new 
subparagraphs:
                    ``(C) providing assistance for the implementation 
                of area plans and projects; and
                    ``(D) providing services which bring to bear the 
                resources of Department of Agriculture programs in a 
                local community, as defined in the locally led planning 
                process.''.
    (c) Improved Provision of Technical Assistance.--Section 1531 of 
the Agriculture and Food Act of 1981 (16 U.S.C. 3454) is amended--
            (1) by inserting ``(a) In General.--'' before ``In 
        carrying''; and
            (2) by adding at the end the following new subsection:
    ``(b) Coordinator.--To improve the provision of technical 
assistance to councils under this subtitle, the Secretary shall 
designate an individual, to be known as the `Coordinator', for each 
council. The Coordinator shall be directly responsible for the 
provision of technical assistance to the council.''.
    (d) Program Evaluation.--Section 1534 of the Agriculture and Food 
Act of 1981 (16 U.S.C. 3457) is repealed.

SEC. 2203. SMALL WATERSHED REHABILITATION PROGRAM.

    (a) Availability of Funds.--Section 14(h)(1) of the Watershed 
Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is amended 
by adding at the end the following new subparagraph:
                    ``(G) $50,000,000 for each of fiscal years 2009 
                through 2012.''.
    (b) Authorization of Appropriations.--Section 14(h)(2)(E) of the 
Watershed Protection and Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) 
is amended by striking ``fiscal year 2007'' and inserting ``each of 
fiscal years 2007 through 2012''.

              Subtitle C--Additional Conservation Programs

SEC. 2301. CHESAPEAKE BAY PROGRAM FOR NUTRIENT REDUCTION AND SEDIMENT 
              CONTROL.

    Chapter 5 of subtitle D of the Food Security Act of 1985 is amended 
by inserting after section 1240P (16 U.S.C. 3839bb-3) the following new 
section:

``SEC. 1240Q. RIVER RESTORATION IN THE CHESAPEAKE BAY WATERSHED.

    ``(a) Chesapeake Bay Watershed Defined.--In this section, the term 
`Chesapeake Bay watershed' means all tributaries, backwaters, and side 
channels, including their watersheds, draining into the Chesapeake Bay.
    ``(b) Comprehensive Plan for Chesapeake Bay Watershed.--
            ``(1) Development.--The Secretary of Agriculture shall 
        develop, as expeditiously as practicable, a proposed 
        comprehensive plan for the purpose of restoring, preserving, 
        and protecting the Chesapeake bay watershed.
            ``(2) Proven technologies and innovative approaches.--The 
        comprehensive plan shall provide for the development of new 
        technologies and innovative approaches to advance the following 
        goals:
                    ``(A) Improvement of water quality and quantity 
                within the Chesapeake Bay.
                    ``(B) Restoration, enhancement, and preservation of 
                habitat for plants and wildlife.
                    ``(C) Increase economic opportunity for producers 
                and rural communities.
            ``(3) Specific components.--The comprehensive plan shall 
        include such features as are necessary to provide for--
                    ``(A) the development and implementation of a 
                program for erosion prevention and control, sediment 
                control and sediment removal, and reduction of nutrient 
                loads;
                    ``(B) the development and implementation of a 
                program for--
                            ``(i) the planning, conservation, 
                        evaluation, and construction of measures for 
                        fish and wildlife habitat conservation and 
                        rehabilitation; and
                            ``(ii) stabilization and enhancement of 
                        land and water resources; and
                    ``(C) the development and implementation of a long-
                term resource monitoring program.
            ``(4) Consultation.--The comprehensive plan shall be 
        developed by the Secretary in consultation with appropriate 
        Federal and State agencies.
    ``(c) Submission of Plan.--
            ``(1) Submission.--Not later than 2 years after the date of 
        enactment of the Farm, Nutrition, and Bioenergy Act of 2007, 
        the Secretary shall transmit to Congress a report containing 
        the comprehensive plan.
            ``(2) Additional studies and analyses.--After submission of 
        the report required by paragraph (1), the Secretary shall 
        continue to conduct such studies and analyses related to the 
        comprehensive plan as are necessary, consistent with this 
        subsection.
    ``(d) Restoration Enhancement and Preservation Projects.--
            ``(1) Project authority.--In cooperation with appropriate 
        Federal and State agencies, the Secretary shall carry out 
        restoration enhancement and preservation projects for the 
        Chesapeake Bay watershed to address the goals specified in 
        subsection (b)(2). To achieve the restoration, preservation, 
        and protection benefits of a project, the Secretary shall 
        proceed expeditiously with the implementation of the project 
        consistent with the comprehensive plan.
            ``(2) Critical projects.--In carrying out this subsection, 
        the Secretary shall begin with the Susquehanna River, the 
        Shenandoah River, the Potomac River, and the Patuxent River.
            ``(3) Availability of funds.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out 
        projects under this subsection the following amounts:
                    ``(A) $10,000,000 for fiscal year 2008.
                    ``(B) $15,000,000 for fiscal year 2009.
                    ``(C) $30,000,000 for fiscal year 2010.
                    ``(D) $40,000,000 for fiscal year 2011.
                    ``(E) $55,000,000 for fiscal year 2012.
            ``(4) Federal share.--The Federal share of the cost of 
        carrying out any individual project under this subsection shall 
        not exceed $5,000,000.
    ``(e) General Provisions.--
            ``(1) Water quality.--In carrying out projects and 
        activities under this section, the Secretary shall take into 
        account the protection of water quality by considering 
        applicable State water quality standards.
            ``(2) Public participation.--In developing the 
        comprehensive plan under subsection (b) and carrying out 
        projects under subsection (d), the Secretary shall implement 
        procedures to facilitate public participation, including 
        providing advance notice of meetings, providing adequate 
        opportunity for public input and comment, maintaining 
        appropriate records, and making a record of the proceeding of 
        meetings available for public inspection.
    ``(f) Coordination.--The Secretary shall integrate and coordinate 
projects and activities carried out under this section with other 
Federal and State programs, projects, and activities.
    ``(g) Cost Sharing.--
            ``(1) Non-federal share.--Subject to subsection (d)(4), the 
        non-Federal share of the cost of projects and activities 
        carried out under this section shall be not less than 35 
        percent.
            ``(2) Operation, maintenance, rehabilitation, and 
        replacement.--The operation, maintenance, rehabilitation, and 
        replacement of projects carried out under this section shall be 
        a non-Federal responsibility.
    ``(h) Sense of Congress Regarding Chesapeake Bay Executive 
Council.--
            ``(1) Findings.--Congress finds the following:
                    ``(A) One of the stated goals of the Chesapeake Bay 
                Agreement is to `develop, promote, and achieve sound 
                land use practices which protect and restore watershed 
                resources and water quality, maintain reduced pollutant 
                loadings for the Bay and its tributaries, and restore 
                and preserve aquatic living resources'.
                    ``(B) Department of Agriculture conservation 
                programs are integral to the restoration of the 
                Chesapeake Bay and achieving the water quality goals 
                for the Chesapeake Bay program.
            ``(2) Sense of congress.--In light of the findings 
        specified in paragraph (1), it is the sense of Congress that 
        the Secretary of Agriculture should be a member of the 
        Chesapeake Bay Executive Council, and is authorized to do so 
        under section 1(3) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590a(3)).''.

SEC. 2302. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 is amended by inserting after section 1240Q, as added by section 
2301, the following new section:

``SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a voluntary 
public access program under which States and tribal governments may 
apply for grants to encourage owners and operators of privately-held 
farm, ranch, and forest land to voluntarily make that land available 
for access by the public for wildlife-dependent recreation, including 
hunting or fishing, under programs administered by the States and 
tribal governments.
    ``(b) Applications.--In submitting applications for a grant under 
the program, a State or tribal government shall describe--
            ``(1) the benefits that the State or tribal government 
        intends to achieve by encouraging public access to private farm 
        and ranch land for--
                    ``(A) hunting and fishing; and
                    ``(B) to the maximum extent practicable, other 
                recreational purposes; and
            ``(2) the methods that will be used to achieve those 
        benefits.
    ``(c) Priority.--In approving applications and awarding grants 
under the program, the Secretary shall give priority to States and 
tribal governments that--
            ``(1) have consistent opening dates for migratory bird 
        hunting for both residents and non-residents;
            ``(2) propose to maximize participation by offering a 
        program the terms of which are likely to meet with widespread 
        acceptance among landowners;
            ``(3) propose to ensure that land enrolled under the State 
        or tribal government program has appropriate wildlife habitat;
            ``(4) propose to strengthen wildlife habitat improvement 
        efforts on land enrolled in a special conservation reserve 
        enhancement program described in 1234(f)(4) by providing 
        incentives to increase public hunting and other recreational 
        access on that land; and
            ``(5) propose to use additional Federal, State, tribal 
        government, or private resources in carrying out the program.
    ``(d) Relationship to Other Laws.--Nothing in this section preempts 
a State or tribal government law, including any State or tribal 
government liability law.
    ``(e) Regulations.--The Secretary shall promulgate such regulations 
as are necessary to carry out this section.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $20,000,000 for each of fiscal years 2008 
through 2012 to carry out this section.''.

SEC. 2303. MUCK SOILS CONSERVATION.

    (a) Establishment of Program.--The Secretary of Agriculture shall 
carry out a conservation program under which the Secretary makes 
payments to assist owners and operators of eligible land specified in 
subsection (b) to conserve and improve the soil, water, and wildlife 
resources of such land.
    (b) Eligible Land.--To be eligible for inclusion in the program 
established under this section, the land must--
            (1) be comprised of soil that qualifies as muck, as 
        determined by the Secretary;
            (2) be used for production of an agricultural crop;
            (3) have a spring cover crop planted in conjunction with 
        the primary agricultural crop referred to in paragraph (2);
            (4) have a winter crop planted; and
            (5) have ditch banks seeded with grass that is maintained 
        on a year-round basis.
    (c) Payment Amounts.--The Secretary may provide payments of not 
less than $300, but not more than $500, per acre per year under the 
program.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out the program $50,000,000 for 
each of fiscal years 2008 through 2012.

                 Subtitle D--Administration and Funding

SEC. 2401. FUNDING OF CONSERVATION PROGRAMS UNDER FOOD SECURITY ACT OF 
              1985.

    (a) In General.--Section 1241(a) of the Food Security Act of 1985 
(16 U.S.C. 3841(a)) is amended in the matter preceding paragraph (1), 
by striking ``2007'' and inserting ``2012''.
    (b) Conservation Security Program.--Paragraph (3) of section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended 
to read as follows:
            ``(3) The conservation security program under subchapter A 
        of chapter 2, using, to the maximum extent practicable--
                    ``(A) in the case of conservation security 
                contracts entered into before October 1, 2007, under 
                such subchapter, as in effect on the day before the 
                date of the enactment of the Farm, Nutrition, and 
                Bioenergy Act of 2007--
                            ``(i) $1,454,000,000 for the period of 
                        fiscal years 2007 through 2012; and
                            ``(ii) $1,927,000,000 for the period of 
                        fiscal years 2007 through 2017; and
                    ``(B) in the case of conservation security 
                contracts entered into on or after October 1, 2011, 
                under such subchapter--
                            ``(i) $501,000,000 for fiscal year 2012; 
                        and
                            ``(ii) $4,646,000,000 for the period of 
                        fiscal years 2012 through 2017.''.
    (c) Farm and Ranchland Protection Program.--Paragraph (4) of 
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended to read as follows:
            ``(4) The farm and ranchland protection program under 
        subchapter B of chapter 2, using, to the maximum extent 
        practicable--
                    ``(A) $125,000,000 in fiscal year 2008;
                    ``(B) $150,000,000 in fiscal year 2009;
                    ``(C) $200,000,000 in fiscal year 2010;
                    ``(D) $240,000,000 in fiscal year 2011; and
                    ``(E) $280,000,000 in fiscal year 2012.''.
    (d) Environmental Quality Incentives Program.--Paragraph (6) of 
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended to read as follows:
            ``(6) The environmental quality incentives program under 
        chapter 4, using, to the maximum extent practicable--
                    ``(A) $1,250,000,000 in fiscal year 2008;
                    ``(B) $1,600,000,000 in fiscal year 2009;
                    ``(C) $1,700,000,000 in fiscal year 2010;
                    ``(D) $1,800,000,000 in fiscal year 2011; and
                    ``(E) $2,000,000,000 in fiscal year 2012.''.
    (e) Wildlife Habitat Incentives Program.--Paragraph (7)(D) of 
section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 2402. IMPROVED PROVISION OF TECHNICAL ASSISTANCE UNDER 
              CONSERVATION PROGRAMS.

    Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``or'' at the end of paragraph (1); 
                and
                    (B) by striking paragraph (2) and inserting the 
                following new paragraphs:
            ``(2) through a contract with an approved third party, if 
        available; or
            ``(3) at the option of the producer, through a payment as 
        determined by the Secretary, directly to an approved third 
        party, if available, or to the producer for an approved third 
        party, if available.'';
            (2) in subsection (b)--
                    (A) by striking ``technical assistance'' each place 
                it appears and inserting ``technical services''; and
                    (B) in paragraph (1)(B), by striking ``that 
                assistance'' and inserting ``those technical 
                services''; and
            (3) by adding at the end the following new subsections:
    ``(c) Payment Amounts.--
            ``(1) Use of prevailing market rates.--The Secretary shall 
        set the amounts of payments under subsection (b)(1)(B) for 
        technical services at levels not less than prevailing private 
        market rates.
            ``(2) Exception.--Paragraph (1) shall not apply in 
        instances where personnel of the Department of Agriculture are 
        immediately available to provide comparable technical services 
        to eligible producers.
    ``(d) Review and Expedited Approval of Technical Assistance 
Specifications.--
            ``(1) Review of existing technical assistance 
        specifications.--
                    ``(A) Review of specifications.--The Secretary 
                shall direct each State to review and ensure, to the 
                maximum extent practicable, the completeness and 
                relevance of technical assistance specifications in 
                effect as of the date of the enactment of the Farm, 
                Nutrition, and Bioenergy Act of 2007.
                    ``(B) Consultation.--In conducting the assessment 
                under subparagraph (A), a State shall consult with 
                specialty crop producers, crop consultants, cooperative 
                extension and land-grant universities, nongovernmental 
                organizations, and other qualified entities.
                    ``(C) Expedited revision of specifications.--If a 
                State determines under subparagraph (A) that revisions 
                to its technical assistance specifications are 
                necessary, the State shall establish an administrative 
                process for expediting the revisions.
            ``(2) Addressing concerns of specialty crop producers.--
                    ``(A) In general.--The Secretary shall direct each 
                State to fully incorporate into its technical 
                assistance specifications and provide for the 
                appropriate range of conservation practices and 
                resource mitigation measures available to specialty 
                crop producers.
                    ``(B) Availability of adequate technical 
                assistance.--The Secretary shall ensure that adequate 
                technical assistance is available for the 
                implementation of conservation practices by specialty 
                crop producers through Federal conservation programs. 
                In carrying out this requirement, the Secretary shall 
                develop--
                            ``(i) programs that meet specific needs of 
                        specialty crop producers through cooperative 
                        agreements with other agencies and 
                        nongovernmental organizations; and
                            ``(ii) program specifications that allow 
                        for innovative approaches that engage local 
                        resources in providing technical assistance for 
                        planning and implementation of conservation 
                        practices.
    ``(e) Non-Federal Assistance.--The Secretary may request the 
services of, and enter into cooperative agreements or contracts with, 
non-Federal entities to assist the Secretary in providing technical 
assistance necessary to develop and implement conservation programs 
under this title.''.

SEC. 2403. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) Transfer of Existing Provisions.--Subsections (b), (c), and (d) 
of section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) are--
            (1) redesignated as subsections (c), (d), and (e), 
        respectively; and
            (2) transferred to appear at the end of section 1244 of 
        such Act (16 U.S.C. 3844).
    (b) Establishment of Partnership Initiative.--Section 1243 of the 
Food Security Act of 1985 (16 U.S.C. 3843), as amended by subsection 
(a), is amended to read as follows:

``SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Establishment of Initiative.--
            ``(1) Establishment.--The Secretary shall establish a 
        cooperative conservation partnership initiative (in this 
        section referred to as the `Partnership') within each program 
        described in subsection (b) to address conservation issues 
        involving production agriculture on local, regional, or State 
        levels.
            ``(2) Administration.--The Secretary shall carry out the 
        Partnership--
                    ``(A) by selecting proposals for grants and 
                agreements by eligible entities described in subsection 
                (c) through a competitive selection process;
                    ``(B) by making grants to, and entering into 
                agreements with, with eligible entities described in 
                subsection (c) for not less than 2 years, but not more 
                than 5 years, in duration; and
                    ``(C) by providing producers that are participating 
                in a special project and initiative of an eligible 
                entity preferential enrollment into 1 or more of the 
                programs described in subsection (b).
            ``(3) Purposes.--The purposes of the Partnership are to 
        carry out special projects and initiatives--
                    ``(A) to address conservation issues involving 
                production agriculture on local, regional, or State 
                levels through producers and eligible entities;
                    ``(B) to address community and economic development 
                needs and opportunities; and
                    ``(C) to increase access to, and participation in, 
                the programs described in subsection (b) by producers 
                of specialty crops (as defined in section 3 of the 
                Specialty Crops Competitiveness Act of 2004, Pub. L. 
                108-465 (7 U.S.C. 1621 note).
    ``(b) Covered Programs.--The conservation programs covered by this 
section are the following:
            ``(1) Conservation security program.
            ``(2) Environmental quality incentives program.
            ``(3) 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 counties 
        and State- or county-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.
            ``(5) A combination of partners specified in a preceding 
        paragraph.
    ``(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;
                    ``(C) includes a well defined project or initiative 
                plan that identifies sensitive areas requiring 
                treatment and prioritizes conservation 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, measure 
                results, and meet the purposes of the agreement;
                    ``(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;
                    ``(L) links resource and environmental objectives 
                with community development or agritourism objectives 
                that can be improved as a result of addressing the 
                resources of concern;
                    ``(M) demonstrates innovation in linking 
                environmental and community development objectives; and
                    ``(N) addresses the needs of beginning farmers and 
                ranchers, socially disadvantaged farmers and ranchers, 
                and limited resource farmers and ranchers.
    ``(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 nonindustrial 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;
            ``(3) to support State activities to efficiently manage and 
        utilize their water resources in regions, States or local areas 
        where water quantity is a concern;
            ``(4) to assist in carrying out a State Wildlife Habitat 
        Incentives Program plan or other State, regional, or national 
        conservation initiative.
            ``(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;
            ``(8) to protect farmland and ranch land facing development 
        pressures from being converted to non-agricultural use; or
            ``(9) to assist producers in carrying out good management 
        practices to enhance food safety.
    ``(g) Duties of Partners.--Eligible partners shall--
            ``(1) identify conservation issues affecting production 
        agriculture on local, regional, or State levels that could be 
        addressed through special projects and initiatives;
            ``(2) enter into agreements or obtain grants from the 
        Secretary to carry out special projects and initiatives;
            ``(3) identify through outreach efforts producers that can 
        participate in the special project or initiative of the 
        eligible entity if the producer is otherwise eligible to be 
        enrolled, as determined by the Secretary, or has already 
        enrolled, in the applicable program described in subsection 
        (b); and
            ``(4) carry out the special project and initiative.
    ``(h) Duties of the Secretary.--
            ``(1) Additional duties.--In addition to the normal 
        administration of the programs described in subsection (b), the 
        Secretary shall be responsible for basic administrative and 
        oversight functions relating to the special projects and 
        initiatives, including--
                    ``(A) rules and procedures relating to conservation 
                standards and specifications;
                    ``(B) conservation compliance;
                    ``(C) appeals;
                    ``(D) adjusted gross income limitations;
                    ``(E) direct attribution; and
                    ``(F) such other similar functions as the Secretary 
                might designate.
            ``(2) Flexibility.--The Secretary may adjust eligibility 
        criteria, approved practices, practice standards, innovative 
        conservation practices, and other elements of the programs 
        described in subsection (b) to better reflect unique local 
        circumstances and purposes if the Secretary determines such 
        adjustments would--
                    ``(A) improve environmental enhancement and long-
                term sustainability of the natural resource base; and
                    ``(B) be consistent with the purposes of the 
                program and the special project and initiative.
            ``(3) Preferential enrollment.--Subject to the limitations 
        under subsection (j), the Secretary shall provide preferential 
        enrollment to producers that are eligible--
                    ``(A) for the applicable program described in 
                subsection (b); and
                    ``(B) to participate in the special project and 
                initiative of an eligible partner.
    ``(i) Cost Share.--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 give higher priority to projects or 
initiatives offering to cover a higher percentage of the cost of the 
project or initiative from non-Federal sources.
    ``(j) Incentive and Bonus Payments.--
            ``(1) Availability.--Applications submitted under 
        subsection (d)(2) may include proposals for special incentive 
        and bonus payments, consistent with the statutory purposes of 
        the programs involved, to producers that--
                    ``(A) restore land, water, or habitat as a 
                community development asset; or
                    ``(B) provide public access to enrolled land.
            ``(2) Criteria.--The Secretary shall develop and publish 
        criteria for providing special incentive or bonus payments to 
        producers under paragraph (1).
    ``(k) Funding.--
            ``(1) Set-aside.--Of the funds provided for each of fiscal 
        years 2008 through 2012 to implement the programs specified in 
        subsection (b), the Secretary shall reserve 10 percent to 
        ensure an adequate source of funds for grants, agreements, 
        financial assistance to producers under this section.
            ``(2) Allocation to states.--The Secretary shall allocate 
        to States 90 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 Secretary shall develop criteria for this allocation made 
        on a similar basis as to the program priorities under 
        subsection (f).
            ``(3) Unused funding.--Any funds reserved for a fiscal year 
        under paragraph (1) that are not obligated by April 1 of that 
        fiscal year may be used to carry out other activities under 
        conservation programs under subtitle D during the remainder of 
        that fiscal year.
            ``(4) Administrative costs funding cap.--Of the funds made 
        available under this section for a particular project or 
        initiative, not more than 5 percent may be expended by the 
        eligible entity on the administrative costs of the project or 
        initiative.''.

SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY.

    Section 1241(d) of the Food Security Act of 1985 (16 U.S.C. 
3841(d)) is amended by striking ``$12,000,000'' and inserting 
``$15,000,000''.

SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) Incentives for Certain Producers.--Section 1244(a) of the Food 
Security Act of 1985 (16 U.S.C. 3844(a)) is amended--
            (1) in the subsection heading, by striking ``Beginning'' 
        and inserting ``Incentives for Certain'';
            (2) by inserting ``, socially disadvantaged farmers and 
        ranchers, limited resource farmers and ranchers,'' after 
        ``beginning farmers and ranchers''; and
            (3) by striking ``and limited resource agricultural 
        producers''.
    (b) Single, Simplified Application Process for Conservation 
Programs.--Section 1244 of the Food Security Act of 1985 (16 U.S.C. 
3844), as amended by section 2403, is amended by adding at the end the 
following new subsection:
    ``(f) Single, Simplified Application Process.--
            ``(1) Establishment.--In carrying out any of the 
        conservation programs under this title administered by the 
        Natural Resources Conservation Service, the Secretary shall 
        establish and make available to producers and landowners a 
        single, simplified application process to be used by producers 
        and landowners in initially requesting assistance under such 
        programs. The Secretary shall ensure that--
                    ``(A) conservation program applicants are not 
                required to provide information that duplicates 
                information and resources already available to the 
                Secretary regarding that applicant and for that 
                specific operation; and
                    ``(B) the application process is streamlined to 
                minimize complexity and redundancy.
            ``(2) Review of application process.--The Secretary shall 
        review the conservation application process and the forms and 
        related mechanisms used to receive assistance requests from 
        producers and landowners. The purpose of the review shall be to 
        determine what information the applicant is actually required 
        to submit 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 
                resource concern or concerns for the land parcel or 
                tract; and
                    ``(D) the minimum amount of other information the 
                Secretary considers essential for the applicant to 
                provide.
            ``(3) Revision and streamlining.--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.
            ``(4) Conservation program application.--When the needs of 
        an applicant are adequately assessed by the Secretary, directly 
        or through a third-party provider under section 1242, in order 
        to determine the conservation programs under this title that 
        best match the needs of the applicant, with the approval of the 
        applicant, the Secretary may convert the initial application 
        into a specific application for assistance for a specific 
        program. 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.
            ``(5) Implementation and notification.--Not later than one 
        year after the date of the enactment of the Farm, Nutrition, 
        and Bioenergy Act of 2007, the Secretary shall complete the 
        requirements of this subsection and shall submit to Congress a 
        written notification of such completion.''.

SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP PRODUCERS 
              IN CONSERVATION PROGRAMS.

    (a) Report Required.--Subtitle F of title XII of the Food Security 
Act of 1985 is amended by inserting after section 1251 (16 U.S.C. 
2005a) the following new section:

``SEC. 1252. ANNUAL REPORT ON PARTICIPATION BY SPECIALTY CROP PRODUCERS 
              IN CONSERVATION PROGRAMS.

    ``(a) Report Required.--The Secretary of Agriculture shall submit 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate an 
annual report that--
            ``(1) documents and analyzes the participation by producers 
        of specialty crops in conservation programs under subtitle D, 
        including the conservation security program and the 
        environmental quality incentives program;
            ``(2) tracks such participation by crop and livestock type; 
        and
            ``(3) describes the results of implementing the plan 
        required by subsection (b), as well as any modifications to the 
        plan that the Secretary finds necessary to increase its 
        effectiveness.
    ``(b) Access Plan.--As part of each report submitted under 
subsection (a), the Secretary shall set forth a plan to improve the 
access of producers of specialty crops to, and their participation in, 
conservation programs under subtitle D. In developing the plan, the 
Secretary shall consult with organizations representing producers of 
specialty crops.
    ``(c) Specialty Crop Defined.--In this section, the term `specialty 
crop' has the meaning given such term by section 3(1) of the Specialty 
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
note).''.
    (b) Initial Report.--The first report required under section 1252 
of the Food Security Act of 1985, as added by subsection (a), shall be 
submitted not later than 180 days after the date of the enactment of 
this Act. Subsection (a)(2) of such section shall not apply with 
respect to the first report.

SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES TO CONSERVATION.

    (a) Findings.--Congress finds the following:
            (1) Many of the conservation and environmental benefits 
        produced on farms, ranches, and private forest lands in the 
        United States do not have an assigned value in the market place 
        or lack a private market altogether.
            (2) While private markets for environmental goods and 
        services are emerging, their viability has been hampered by 
        several barriers.
            (3) The Federal Government can help overcome these barriers 
        and promote the establishment of markets for agricultural and 
        forestry conservation activities.
            (4) Generating substantial private-sector demand for 
        environmental goods and services hinges on the ability to use 
        environmental credits generated by agricultural and forest 
        conservation activities.
    (b) Market-Based Approaches.--Subtitle E of title XII of the Food 
Security Act of 1985 is amended by inserting after section 1244 (16 
U.S.C. 3844) the following new section:

``SEC. 1245. MARKET-BASED APPROACHES TO CONSERVATION.

    ``(a) Implementation.--To facilitate the development and effective 
operation of private sector market-based approaches for environmental 
goods and services produced by farmers, ranchers, and owners of private 
forest land, the Secretary may conduct research and analysis, enter 
into contracts and cooperative agreements, and award grants for the 
purpose of--
            ``(1) promoting the development of consistent standards and 
        processes for quantifying environmental benefits, including the 
        creation of performance standards or baselines;
            ``(2) promoting the establishment of reporting and credit 
        registries, including third-party verification and 
        certification; and
            ``(3) promoting actions that facilitate the development and 
        functioning of private-sector market-based approaches for 
        environmental goods and services involving agriculture and 
        forestry.
    ``(b) Environmental Services Standards Board.--
            ``(1) Establishment.--There is to be established an 
        Environmental Services Standards Board to develop consistent 
        performance standards for quantifying environmental services 
        from land management and agricultural activities in order to 
        facilitate the development of credit markets for conservation 
        and land management activities that are agriculture or forest 
        based.
            ``(2) Chairperson.--The Secretary of Agriculture shall 
        serve as chair of the Environmental Services Standards Board.
            ``(3) Membership.--The Environmental Services Standards 
        Board shall be comprised of the Secretary of Agriculture, the 
        Secretary of the Interior, the Secretary of Energy, the 
        Secretary of Commerce, the Secretary of Transportation, the 
        Administrator of the Environmental Protection Agency, the 
        Commander of the Army Corps of Engineers, and such other 
        representatives as determined by the President.
            ``(4) Subcommittees.--The Environmental Services Standards 
        Board may form subcommittees to address specific issues.
    ``(c) Dissemination of Performance Standards.--Federal agencies are 
authorized to adopt performance standards developed by the 
Environmental Services Standards Board for quantifying environmental 
services that establish credits to meet requirements of environmental 
and conservation programs.
    ``(d) Funding .--There is authorized to be appropriated $50,000,000 
to carry out this section. Amounts so appropriated shall remain 
available until expended.
    ``(e) Definitions.--In this section:
            ``(1) Baseline.--The term `baseline' means a level of 
        effort or performance that is expected to be met before an 
        entity can generate marketable credits.
            ``(2) Performance standard.--The term `performance 
        standard' means a defined level of environmental performance, 
        expressed as a narrative or measurable number, which specifies 
        the minimum acceptable environmental performance of an 
        operation or practice.''.

SEC. 2408. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES AND THEIR 
              RESPONSIBILITIES.

    Subtitle G of title XII of the Farm Security Act of 1985 (16 U.S.C. 
3861, 3862) is amended to read as follows:

                ``Subtitle G--State Technical Committees

``SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COMMITTEES.

    ``(a) Establishment.--The Secretary shall establish a technical 
committee in each State to assist the Secretary in the considerations 
relating to implementation and technical aspects of the conservation 
programs under this title.
    ``(b) Composition.--Each State technical committee shall be 
composed of agricultural producers and other professionals that 
represent a variety of disciplines in the soil, water, wetland, and 
wildlife sciences. The technical committee for a State shall include 
representatives from among the following:
            ``(1) The Natural Resources Conservation Service.
            ``(2) The Farm Service Agency.
            ``(3) The Forest Service.
            ``(4) The Cooperative State Research, Education, and 
        Extension Service.
            ``(5) The State fish and wildlife agency.
            ``(6) The State forester or equivalent State official.
            ``(7) The State water resources agency.
            ``(8) The State department of agriculture.
            ``(9) The State association of soil and water conservation 
        districts.
            ``(10) At least 12 agricultural producers representing the 
        variety of crops and livestock or poultry grown within the 
        State.
            ``(11) Nonprofit organizations within the meaning of 
        section 501(c)(3) of the Internal Revenue Code of 1986 with 
        demonstrable conservation expertise and experience working with 
        agriculture producers in the State.
            ``(12) Agribusiness.
    ``(c) Subcommittees.--A State technical committee shall convene one 
or more subcommittees to provide technical guidance and implementation 
recommendations. The topics that a subcommittee shall address shall 
include, at a minimum, the following:
            ``(1) Establishing priorities and criteria for State 
        initiatives under the programs in this title, including the 
        review of whether local working groups are addressing those 
        priorities.
            ``(2) Issues related to private forestlands protection and 
        enhancement.
            ``(3) Issues related to water quality and water quantity.
            ``(4) In those States where applicable, issues related to 
        air quality.
            ``(5) Issues related to wildlife habitat, including the 
        protection of nesting wildlife.
            ``(6) Issues related to wetland protection, restoration, 
        and mitigation requirements.
            ``(7) Other issues as the Secretary determines would be 
        useful.

``SEC. 1262. RESPONSIBILITIES.

    ``(a) In General.--Each State technical committee established under 
section 1261 shall meet regularly to provide information, analysis, and 
recommendations to appropriate officials of the Department of 
Agriculture who are charged with implementing the conservation 
provisions of this title.
    ``(b) Public Notice and Attendance.--Each State technical committee 
shall provide public notice of, and permit public attendance at, 
meetings considering issues of concern related to carrying out this 
title.
    ``(c) Advisory Role.--The role of a State technical committee is 
advisory in nature, and the committee shall have no implementation or 
enforcement authority. However, the Secretary shall give strong 
consideration to the recommendations of the committee in administering 
the programs under this title.
    ``(d) FACA Requirements.--Except as provided in subsection (b), a 
State technical committee, including any subcommittee of State 
technical committee, is exempt from the Federal Advisory Committee Act 
(5 U.S.C. App.).''.

SEC. 2409. PAYMENT LIMITATIONS.

    (a) In General.--The Food Security Act of 1985 is amended by 
inserting after section 1245, as added by section 2407, the following 
new section:

``SEC. 1246. PAYMENT LIMITATIONS.

    ``(a) Payments for Conservation Practices.--The total amount of 
payments that a person or a legal entity (except a joint venture or a 
general partnership) may receive, directly or indirectly, in any fiscal 
year shall not exceed--
            ``(1) $60,000 from any single program under this title or 
        as agricultural management assistance under section 524(b) of 
        the Federal Crop Insurance Act (7 U.S.C. 524(b)); or
            ``(2) $125,000 from more than one program under this title 
        and as agricultural management assistance under section 524(b) 
        of the Federal Crop Insurance Act.
    ``(b) Exceptions.--The limitations under subsection (a) shall not 
apply with respect to the following:
            ``(1) The wetlands reserve program under subchapter C of 
        chapter 1 of subtitle D.
            ``(2) The farm and ranchland protection program under 
        subchapter B of chapter 2 of such subtitle.
            ``(3) The grassland reserve program under subchapter C of 
        chapter 2 of such subtitle.
    ``(c) Direct Attribution.--
            ``(1) In general.--In implementing the payment limitations 
        in subsection (a), the Secretary shall issue such regulations 
        as are necessary to ensure that the total amount of payments 
        are attributed to a person by taking into account the direct 
        and indirect ownership interests of the person in a legal 
        entity that is eligible to receive such payments.
            ``(2) Payments to a person.--Every payment made directly to 
        a person shall be combined with the person's pro rata interest 
        in payments received by a legal entity in which the person has 
        a direct or indirect ownership interest.
            ``(3) Payments to a legal entity.--
                    ``(A) In general.--Every payment made to a legal 
                entity shall be attributed to those persons who have a 
                direct or indirect ownership interest in the legal 
                entity.
                    ``(B) Attribution of payments.--
                            ``(i) Payment limits.--Except as provided 
                        in clause (ii), payments made to a legal entity 
                        shall not exceed the amounts specified in 
                        subsection (a).
                            ``(ii) Exception.--Payments made to a joint 
                        venture or a general partnership shall not 
                        exceed, for each payment specified in 
                        subsection (a), the amount determined by 
                        multiplying the maximum payment amount 
                        specified in subsection (a) by the number of 
                        persons and legal entities (other than joint 
                        ventures and general partnerships) that 
                        comprise the ownership of the joint venture or 
                        general partnership.''.
    (b) Conforming Amendments.--
            (1) Existing payment limitations in conservation 
        programs.--Title XII of the Food Security Act of 1985 is 
        amended--
                    (A) in section 1234 (16 U.S.C. 3834) by striking 
                subsection (f);
                    (B) in section 1238C (16 U.S.C. 3838c), as amended 
                by section 2103, by striking subsections (d) and (e); 
                and
                    (C) by striking section 1240G (16 U.S.C. 3839aa-7).
            (2) Agricultural management assistance.--Section 524(b) of 
        the Federal Crop Insurance Act (7 U.S.C. 524) is amended by 
        striking paragraph (3).

                  Subtitle E--Miscellaneous Provisions

SEC. 2501. INCLUSION OF INCOME FROM AFFILIATED PACKING AND HANDLING 
              OPERATIONS AS INCOME DERIVED FROM FARMING FOR APPLICATION 
              OF ADJUSTED GROSS INCOME LIMITATION ON ELIGIBILITY FOR 
              CONSERVATION PROGRAMS.

    Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 
1308-3a(b)(1)) is amended by inserting ``(including, for purposes of 
paragraph (2)(C), affiliated packing and handling operations)'' after 
``derived from farming''.

SEC. 2502. ENCOURAGEMENT OF VOLUNTARY SUSTAINABILITY PRACTICES 
              GUIDELINES.

    In administering this title and the amendments made by this title, 
the Secretary of Agriculture may encourage the development of voluntary 
sustainable practices guidelines for producers and processors of 
specialty crops.

SEC. 2503. FARMLAND RESOURCE INFORMATION.

    (a) Development and Dissemination of Farmland Resource 
Information.--The Secretary of Agriculture 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. The Secretary shall carry out this 
subsection through existing agencies or interagency groups and in 
cooperation with nonprofit organizations and the cooperative extension 
services of States.
    (b) Farmland Information Centers.--The Secretary shall designate 1 
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 a center shall 
include online access to data on land cover and use changes and trends 
and literature, laws, historical archives, policies, programs, and 
innovative actions or proposals by local and State governments or 
nonprofit organizations related to farmland protection.
    (c) Funding.--Funds for the farmland information centers designated 
under subsection (b) shall be provided using funds made available for 
the farm and ranchland protection program established under 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.). Such funding for a fiscal year shall 
not exceed one-half of 1 percent of the funds made available for the 
farm and ranchland protection program for that fiscal year, but no less 
than $400,000 annually.
    (d) Matching Funds.--Federal funding for a farmland information 
center designated under subsection (b) shall be matched with non-
Federal funds, through cash or in-kind contributions.

SEC. 2504. PILOT PROGRAM FOR FOUR-YEAR CROP ROTATION FOR PEANUTS.

    (a) Contract Authority.--The Secretary of Agriculture shall enter 
into a contract with a peanut producer under which the producer will 
implement a four-year crop rotation for peanuts.
    (b) Contract Payments.--Under the contract, the Secretary shall pay 
to the producer a contract implementation payment, in an amount 
determined to be appropriate by the Secretary.
    (c) Funding.--For each of fiscal years 2008 through 2012, the 
Secretary shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out the provisions under this 
section, except that funding of the pilot program may not exceed 
$10,000,000 in each of such fiscal years.

                            TITLE III--TRADE

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954.
Sec. 3002. Export credit guarantee program.
Sec. 3003. Market access program.
Sec. 3004. Food for Progress Act of 1985.
Sec. 3005. Reauthorization of McGovern-Dole International Food for 
                            Education and Child Nutrition Program.
Sec. 3006. Bill Emerson Humanitarian Trust.
Sec. 3007. Technical assistance for specialty crops.
Sec. 3008. Technical assistance for the resolution of trade disputes.
Sec. 3009. Representation by the United States at international 
                            standard-setting bodies.
Sec. 3010. Foreign market development cooperator program.
Sec. 3011. Emerging markets.
Sec. 3012. Export Enhancement Program.
Sec. 3013. Minimum level of nonemergency food assistance.
Sec. 3014. Germplasm conservation.
Sec. 3015. Report on efforts to improve procurement planning.
Sec. 3016. International disaster assistance under the Foreign 
                            Assistance Act of 1961.

SEC. 3001. AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954.

    (a) Purpose of Program.--Section 201 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1721) is amended so 
that paragraph (1) reads as follows:
            ``(1) address famine and food crises and respond to 
        emergency food needs arising from manmade disasters, and 
        natural disasters.''.
    (b) Support for Eligible Organizations.--Section 202(e)(1) of the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1722(e)(1)) is amended--
            (1) by striking ``not less than 5 percent nor more than 10 
        percent of the funds'' and inserting ``not less than 7 percent 
        nor more than 12 percent of the funds'';
            (2) striking ``and'' at the end of subparagraph (A);
            (3) striking the period at the end of subparagraph (B) and 
        inserting ``; and''; and
            (4) inserting after subparagraph (B) the following:
                    ``(C) developing, implementing and improving 
                monitoring systems of programs receiving funds under 
                this title.''.
    (c) Generation and Use of Currencies by Private Voluntary 
Organizations and Cooperatives.--Subsection (b) of section 203 of the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1723) is amended by striking ``1 or more recipient countries'' and 
inserting ``in 1 or more recipient countries''.
    (d) Levels of Assistance.--Section 204(a) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--
            (1) in paragraph (1) by striking ``2002 through 2007'' and 
        inserting ``2008 through 2012''; and
            (2) in paragraph (2) by striking ``2002 through 2007'' and 
        inserting ``2008 through 2012''.
    (e) Food Aid Consultative Group.--
            (1) Report to congress.--Section 205 of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) is 
        amended--
                    (A) by redesignating subsection (f) as subsection 
                (g); and
                    (B) by inserting after subsection (e) the following 
                new subsection:
    ``(f) Report to Congress.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of the Farm, Nutrition, and Bioenergy Act of 
        2007, and annually thereafter until December 31, 2012, the 
        Administrator of the United States Agency for International 
        Development, in close consultation with the Group, shall submit 
        to the appropriate congressional committees a report on efforts 
        taken by the United States Agency for International Development 
        and the Department of Agriculture to develop a strategy under 
        this section to achieve an integrated and effective food 
        assistance program.
            ``(2) Appropriate congressional committees defined.--In 
        this subsection, the term `appropriate congressional 
        committees' means--
                    ``(A) the Committee on Foreign Affairs and the 
                Committee on Agriculture of the House of 
                Representatives; and
                    ``(B) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.''.
            (2) Termination.--Such section is further amended in 
        subsection (g) (as redesignated by paragraph (1)(A)) by 
        striking ``2007'' and inserting ``2012''.
    (f) Denial of Proposals.--Paragraph (3) of section 207(a) of the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1726a(a)) is amended to read as follows:
            ``(3) Denial.--If a proposal under paragraph (1) is denied, 
        the response shall specify the reasons for denial.''.
    (g) Program Oversight, Monitoring, and Evaluation.--Section 207 of 
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1726a) is amended by adding at the end the following:
    ``(f) Program Oversight, Monitoring, and Evaluation.--
            ``(1) In general.--The Administrator, in consultation with 
        the Secretary, shall establish systems to improve, monitor, and 
        evaluate the effectiveness and efficiency of assistance 
        provided under this title in order to maximize the impact of 
        such assistance. Such systems shall include the following:
                    ``(A) program monitors in countries receiving 
                assistance under this title;
                    ``(B) country and regional food aid impact 
                evaluations;
                    ``(C) evaluations of best practices for food aid 
                programs;
                    ``(D) evaluation of monetization programs;
                    ``(E) early warning assessments to prevent famines; 
                and
                    ``(F) upgraded information technology systems.
            ``(2) Implementation report.--Not later than 180 days after 
        the date of enactment of the Farm, Nutrition, and Bioenergy Act 
        of 2007, the Administrator shall submit to the appropriate 
        congressional committees a report on efforts undertaken to 
        implement paragraph (1).
            ``(3) Government accountability office.--Not later than 270 
        days after the date of the submission of the report under 
        paragraph (2), the Comptroller General of the United States 
        shall submit to the appropriate congressional committees a 
        report that--
                    ``(A) reviews and comments on the report under 
                paragraph (2); and
                    ``(B) provides recommendations regarding any 
                additional actions necessary to improve the monitoring 
                and evaluation of assistance provided under this title.
            ``(4) Annual report.--Not later than February 1 of each 
        year, the Administrator shall submit to the appropriate 
        congressional committees a report assessing the systems 
        implemented under paragraph (1) and their impact on the 
        effectiveness and efficiency of assistance provided under this 
        title.
            ``(5) Funding.--In addition to other funds made available 
        for the Administrator to perform monitoring of emergency food 
        assistance, the Administrator may implement this subsection 
        using up to $15,000,000 of funds made available under this 
        title for each of the fiscal years 2008 through 2012, except 
        for paragraph (1)(F), for which only $2,500,000 shall be made 
        available during fiscal year 2008.
            ``(6) Appropriate congressional committees defined.--In 
        this subsection, the term `appropriate congressional 
        committees' means--
                    ``(A) the Committee on Foreign Affairs and the 
                Committee on Agriculture of the House of 
                Representatives; and
                    ``(B) the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.''.
    (h) Shelf-Stable Prepackaged Foods.--Section 208(f) of the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1726b(f)) is amended--
            (1) by striking ``2007'' and insert ``2012''; and
            (2) by striking ``$3,000,000'' and inserting ``$7,000,000''
    (i) Prepositioning.--Section 407(c)(4) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is 
amended--
            (1) by striking ``Funds'' and inserting ``(A) In general.--
        Funds'';
            (2) by striking ``2007'' and inserting ``2012'';
            (3) by striking ``$2,000,000'' and inserting 
        ``$8,000,000''; and
            (4) by adding at the end the following new subparagraph:
                    ``(B) Additional prepositioning sites.--
                            ``(i) Feasibility assessment.--On or after 
                        the date of the enactment of the Farm, 
                        Nutrition, and Bioenergy Act of 2007, the 
                        Administrator is authorized to carry out 
                        assessments for the establishment of not less 
                        than two sites to determine the feasibility of 
                        and costs associated with using such sites for 
                        the purpose of storing and handling 
                        agricultural commodities for prepositioning in 
                        foreign countries.
                            ``(ii) Establishment of sites.--Based on 
                        the results of the assessments carried out 
                        under clause (i), the Administrator is 
                        authorized to establish additional sites for 
                        pre-positioning in foreign countries.
                            ``(iii) Authorization of appropriations.--
                        To carry out this subparagraph, there are 
                        authorized to be appropriated to the 
                        Administrator such sums as may be necessary for 
                        each of the fiscal years 2008 through 2012.''.
    (j) Annual Reports.--Section 407(f) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1736a(f)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (B), by adding at the end 
                before the semicolon the following: ``, and the amount 
                of funds, tonnage levels, and types of activities for 
                non-emergency food assistance programs under title II 
                of this Act'';
                    (B) in subparagraph (C), by adding at the end 
                before the semicolon the following: ``, and a general 
                description of the projects and activities 
                implemented''; and
                    (C) so that subparagraph (D) reads as follows:
                    ``(D) an assessment of the progress toward reducing 
                food insecurity in the populations receiving food 
                assistance from the United States.''; and
            (2) in paragraph (3), by striking ``January 15'' and 
        inserting ``March 1''.
    (k) Expiration of Assistance.--Section 408 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is 
amended by striking ``2007'' and inserting ``2012''.
    (l) Authorization of Appropriations.--Subsection (a) of section 412 
of the Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1736f) is amended to read as follows:
    ``(a) Authorization of Appropriations.--For each of the fiscal 
years 2008 through 2012, there are authorized to be appropriated to the 
President--
            ``(1) such sums as may be necessary to carry out the 
        concessional credit sales program established under title I,
            ``(2) $2,500,000,000 to carry out the emergency and non-
        emergency food assistance programs under title II, and
            ``(3) such sums as may be necessary to carry out the grant 
        program established under title III,
including such amounts as may be required to make payments to the 
Commodity Credit Corporation to the extent the Commodity Credit 
Corporation is not reimbursed under the programs under this Act for the 
actual costs incurred or to be incurred by such Corporation in carrying 
out such programs.''.
    (m) Micronutrient Fortification Programs.--
            (1) Purpose.--Subsection (a)(2)(C) of section 415 of the 
        Agricultural Trade Development and Assistance Act of 1954 (7 
        U.S.C. 1736g-2) is amended--
                    (A) by striking ``using the same mechanism that was 
                used to assess the micronutrient fortification program 
                in'' and inserting ``utilizing recommendations from''; 
                and
                    (B) by striking ``with funds from the Bureau for 
                Humanitarian Response of the United States Agency for 
                International Development'' and inserting ``with 
                implementation by an independent entity with proven 
                impartiality and a mechanism that incorporates the 
                range of stakeholders implementing programs under title 
                II of this Act as well as other food assistance 
                industry experts''.
            (2) Termination of authority.--Subsection (d) of such 
        section is amended by striking ``2007'' and inserting ``2012''.
    (n) John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.--
            (1) Minimum funding.--Section 501(d) of the Agricultural 
        Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(d)) 
        is amended--
                    (A) by inserting ``or $10,000,000, whichever amount 
                is greater,'' after ``not less than 0.5 percent''; and
                    (B) by striking ``2002 through 2007'' and inserting 
                ``2008 through 2012''.
            (2) Authorization of appropriations.--Section 501(e) of the 
        Agricultural Trade Development and Assistance Act of 1954 (7 
        U.S.C. 1737(e)) is amended by striking paragraph (1) and 
        inserting the following new paragraph:
            ``(1) In general.--To carry out programs under this 
        section, there is authorized to be appropriated for each of 
        fiscal years 2008 through 2012 the following amounts:
                    ``(A) $10,000,000 for sub-Saharan African and 
                Caribbean Basin countries.
                    ``(B) $5,000,000 for all other countries not 
                included in subparagraph (A).''.
    (o) References to Committee.--The Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended by 
striking ``Committee on International Relations'' each place it appears 
and inserting ``Committee on Foreign Affairs''.

SEC. 3002. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Repeal of Supplier Credit Guarantee Program and Intermediate 
Export Credit Guarantee Program.--
            (1) Repeals.--Section 202 of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5622) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``(1)'' 
                        and all that follows through ``The Commodity'' 
                        and inserting ``The Commodity'';
                            (ii) in paragraph (1), by striking ``3-year 
                        period'' and inserting ``6-month period''; and
                            (iii) by striking paragraphs (2) and (3);
                    (B) by striking subsections (b) and (c); and
                    (C) by redesignating subsections (d) through (l) as 
                subsections (b) through (j), respectively.
            (2) Conforming amendments.--The Agricultural Trade Act of 
        1978 is amended--
                    (A) in section 202 (7 U.S.C. 5622)--
                            (i) in subsection (b)(4) (as redesignated 
                        by paragraph (1)(C)), by striking ``, 
                        consistent with the provisions of subsection 
                        (c)'';
                            (ii) in subsection (d) (as redesignated by 
                        paragraph (1)(C))--
                                    (I) by striking ``(1)'' and all 
                                that follows through ``The Commodity'' 
                                and inserting ``The Commodity''; and
                                    (II) by striking paragraph (2); and
                            (iii) in subsection (g)(2) (as redesignated 
                        by paragraph (1)(C)), by striking ``subsections 
                        (a) and (b)'' and inserting ``subsection (a)''; 
                        and
                    (B) in section 211 (7 U.S.C. 5641), by striking 
                subsection (b) and inserting the following:
    ``(b) Export Credit Guarantee Programs.--(1) The Commodity Credit 
Corporation shall make available for each of fiscal years 2008 through 
2012 not less than $5,500,000,000 in credit guarantees under section 
202(a).
    ``(2) Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5622(k)(1)) is amended by striking `2007' and inserting 
`2012'.''.

SEC. 3003. MARKET ACCESS PROGRAM.

    (a) Organic Commodities.--Section 203(a) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623(a)) is amended by inserting after 
``agricultural commodities'' the following: ``(including commodities 
that are organically produced (as defined in section 2103 of the 
Organic Foods Production Act of 1990 (7 U.S.C. 6502))''.
    (b) Funding.--Section 211(c)(1)(A) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking ``, and 
$200,000,000 for each of fiscal years 2006 and 2007'' and inserting 
``$200,000,000 for each of fiscal years 2006 and 2007, and $225,000,000 
for each of fiscal years 2008 through 2012''.

SEC. 3004. FOOD FOR PROGRESS ACT OF 1985.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by 
striking ``2007'' each place it appears and inserting ``2012''.

SEC. 3005. REAUTHORIZATION OF MCGOVERN-DOLE INTERNATIONAL FOOD FOR 
              EDUCATION AND CHILD NUTRITION PROGRAM.

    (a) Administration of Program.--Section 3107 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
            (1) in subsection (d), in the matter preceding paragraph 
        (1), by striking ``The President shall designate 1 or more 
        Federal agencies to'' and inserting ``The Secretary shall'';
            (2) in subsection (f)(2), in the matter preceding 
        subparagraph (A), by striking ``implementing agency'' and 
        inserting ``Secretary''; and
            (3) in subsections (c)(2)(B), (f)(1), (h)(1) and (2), and 
        (i), by striking ``President'' each place it appears and 
        inserting ``Secretary''.
    (b) Funding.--Section 3107(l) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o-1(l)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Use of commodity credit corporation funds.--Of the 
        funds of the Commodity Credit Corporation, the Secretary shall 
        use to carry out this section--
                    ``(A) $0 for fiscal year 2008;
                    ``(B) $140,000,000 for fiscal year 2009;
                    ``(C) $170,000,000 for fiscal year 2010;
                    ``(D) $230,000,000 for fiscal year 2011;
                    ``(E) $300,000,000 for fiscal year 2012; and
                    ``(F) $0 for fiscal year 2013.'';
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (2) (as redesignated by paragraph (2)), by 
        striking ``any Federal agency implementing or assisting'' and 
        inserting ``the Department of Agriculture or any other Federal 
        agency assisting''.

SEC. 3006. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 
1736f-1) is amended by striking ``2007'' each place it appears in 
subsection (b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) 
and inserting ``2012''.

SEC. 3007. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680) is amended so that subsection (d) reads as follows:
    ``(d) Funding.--
            ``(1) Commodity credit corporation.--The Secretary shall 
        use the funds, facilities, and authorities of the Commodity 
        Credit Corporation to carry out this section.
            ``(2) Funding amount.--The Secretary shall use the funds 
        of, or an equal value of commodities owned by, the Commodity 
        Credit Corporation to carry out this section--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $6,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010;
                    ``(D) $10,000,000 for each of fiscal years 2011 
                through 2012.''.

SEC. 3008. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.

    (a) In General.--The Secretary of Agriculture may provide 
monitoring, analytic support, and other technical assistance to limited 
resource persons and organizations associated with agricultural trade 
(as determined by the Secretary) to address unfair trade practices of 
foreign countries and to reduce trade barriers.
    (b) Authorization of Appropriations.--There are authorized such 
sums as necessary to carry out subsection (a).

SEC. 3009. REPRESENTATION BY THE UNITED STATES AT INTERNATIONAL 
              STANDARD-SETTING BODIES.

    (a) In General.--Pursuant to the authority of the Secretary 
provided by section 1458(a)(3) of the Food and Agriculture Act of 1977 
(7 U.S.C. 3291(a)(3)), the Secretary is authorized to enhance United 
States support for international organizations, including the Food and 
Agriculture Organization, the Codex Alimentarius Commission, the 
International Plant Protection Convention, and the World Organization 
for Animal Health, that establish international standards regarding 
food, food safety, plants, and animals, respectively, by funding 
additional positions of Associate Professional Officers to address 
sanitary and phytosanitary priorities of the United States within 
applicable international organizations.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section for each 
of fiscal years 2007-2012.

SEC. 3010. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) Foreign Market Development Cooperator Program.--Subsection (c) 
of section 702 of the Agricultural Trade Act of 1978 (7 U.S.C. 5722) is 
amended by striking ``Committee on International Relations'' and 
inserting ``Committee on Foreign Affairs''.
    (b) Funding.--Subsection (a) of section 703 of such Act (7 U.S.C. 
5723) is amended by striking ``2002 through 2007'' and inserting ``2008 
through 2012''.

SEC. 3011. EMERGING MARKETS.

    The Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5622 note; Public Law 101-624) is amended in each of subsections 
(a) and (d)(1)(A)(i) by striking ``2007'' and inserting ``2012.

SEC. 3012. EXPORT ENHANCEMENT PROGRAM.

    Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5651(e)(1)(G)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 3013. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.

    Section 412 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736f) is amended by inserting at the end the 
following new subsection:
    ``(e) Minimum Level of Nonemergency Food Assistance.--
            ``(1) Funds.--Of the amounts made available to carry out 
        emergency and nonemergency food assistance programs under title 
        II, not less than $450,000,000 for each of fiscal years 2008 
        through 2012 shall be expended for nonemergency food assistance 
        programs under title II.
            ``(2) Exception.--The Administrator may use less than the 
        amount specified in paragraph (1) for a fiscal year for 
        nonemergency food assistance programs under title II if--
                    ``(A) the Administrator submits to the Committees 
                on Foreign Affairs, Agriculture, and Appropriations of 
                the House of Representatives and the Committees on 
                Appropriations and Agriculture, Nutrition, and Forestry 
                of the Senate a report requesting the reduction and 
                containing the reasons for the reduction; and
                    ``(B) following submission of the report, Congress 
                enacts a law approving the Administrator's request.''.

SEC. 3014. GERMPLASM CONSERVATION.

    (a) Contribution.--The Administrator of the United States Agency 
for International Development shall contribute funds to endow the 
Global Crop Diversity Trust (in this section referred to as the 
``Trust'') to assist in the conservation of genetic diversity in food 
crops through the collection and storage of the germplasm of such crops 
in a manner that provides for--
            (1) the maintenance and storage of seed collections;
            (2) the documentation and cataloguing of the genetics and 
        characteristics of conserved seeds to ensure efficient 
        reference for researchers, plant breeders, and the public;
            (3) building the capacity of seed collection in developing 
        countries;
            (4) making information regarding crop genetic data publicly 
        available for researchers, plant breeders, and the public (for 
        example, through the provision of an accessible Internet site);
            (5) the operation and maintenance of a back-up facility 
        wherein is stored duplicate samples of seeds, as a hedge 
        against natural or man-made disasters; and
            (6) oversight designed to ensure international coordination 
        of these actions and efficient, public accessibility to this 
        diversity through a cost-effective system.
    (b) United States Contribution Limit.--The aggregate contributions 
of United States Government funds provided to the Trust shall not 
exceed 25 percent of the total of the funds contributed to the Trust 
from all sources.
    (c) Authorization.--There are authorized to be appropriated to 
carry out this section a total of $60,000,000 over the period of fiscal 
year 2008 through fiscal year 2012.

SEC. 3015. REPORT ON EFFORTS TO IMPROVE PROCUREMENT PLANNING.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Administrator of the United States Agency 
for International Development and the Secretary of Agriculture shall 
submit to the appropriate congressional committees a report on efforts 
taken by both the United States Agency for International Development 
and the Department of Agriculture to improve planning for food and 
transportation procurement, including efforts to eliminate bunching of 
food purchases.
    (b) Contents.--The report required under subsection (a) should 
include, among other things, a description of efforts taken to--
            (1) improve coordination of food purchases by the United 
        States Agency for International Development and the Department 
        of Agriculture;
            (2) increase flexibility in procurement schedules;
            (3) increase utilization of historical analyses and 
        forecasting; and
            (4) improve and streamline legal claims processes for 
        resolving transportation disputes.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Agriculture of the House of Representatives; and
            (2) the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate.

SEC. 3016. INTERNATIONAL DISASTER ASSISTANCE UNDER THE FOREIGN 
              ASSISTANCE ACT OF 1961.

    For each of the fiscal years 2008 through 2012, of the amounts made 
available to carry out section 491 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2292), not less than $40,000,000 for each such fiscal 
year is authorized be made available for the purposes of famine 
prevention and relief under such section.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 4001. Renaming the food stamp program.
Sec. 4002. Definition of drug addiction or alcoholic treatment and 
                            rehabilitation program.
Sec. 4003. Nutrition education.
Sec. 4004. Food distribution on Indian reservations.
Sec. 4005. Excluding combat related pay from countable income.
Sec. 4006. Increasing the standard deduction.
Sec. 4007. Excluding dependent care expenses.
Sec. 4008. Adjusting countable resources for inflation.
Sec. 4009. Excluding education accounts from countable income.
Sec. 4010. Excluding retirement accounts from countable income.
Sec. 4011. Deobligate food stamp coupons.
Sec. 4012. Allow for the accrual of benefits.
Sec. 4013. Increasing the minimum benefit.
Sec. 4014. State option for telephonic signature.
Sec. 4015. Review of major changes in program design.
Sec. 4016. Grants for simple application and eligibility determination 
                            systems and improved access to benefits.
Sec. 4017. Civil money penalties and disqualification of retail food 
                            stores and wholesale food concerns.
Sec. 4018. Major systems failures.
Sec. 4019. Funding of employment and training programs.
Sec. 4020. Reductions in payments for administrative costs.
Sec. 4021. Cash payment pilot projects.
Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition 
                            Assistance program nutrition education.
Sec. 4023. Nutrition education and promotion initiative to address 
                            obesity.
Sec. 4024. Authorization of appropriations.
Sec. 4025. Consolidated block grants for Puerto Rico and American 
                            Samoa.
Sec. 4026. Study on comparable access to Secure Supplemental Nutrition 
                            Assistance Program benefits for Puerto 
                            Rico.
Sec. 4027. Reauthorization of community food project competitive 
                            grants.
Sec. 4028. Emergency food assistance program.
                   Subtitle B--Commodity Distribution

Sec. 4201. Authorization of appropriations.
Sec. 4202. Distribution of surplus commodities; special nutrition 
                            projects.
Sec. 4203. Commodity distribution program.
            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to 
                            schools and service institutions.
Sec. 4302. Buy American requirements.
Sec. 4303. Expansion of fresh fruit and vegetable program.
Sec. 4304. Purchases of locally produced foods.
                       Subtitle D--Miscellaneous

Sec. 4401. Seniors farmers' market nutrition program.
Sec. 4402. Congressional Hunger Center.
Sec. 4403. Joint nutrition monitoring and related research activities.
Sec. 4404 Sense of the Congress.

                     Subtitle A--Food Stamp Program

SEC. 4001. RENAMING THE FOOD STAMP PROGRAM.

    (a) Amendments to the Food Stamp Act of 1977.--
            (1) References amended.--The provisions of the Food Stamp 
        Act of 1977 (7 U.S.C. 2011 et seq.)--
                    (A) specified in paragraph (2)(A) are amended in 
                the section heading by striking ``food stamp'' each 
                place it appears and inserting ``secure supplemental 
                nutrition assistance'';
                    (B) specified in paragraph (2)(B) are amended in 
                the subsection heading by striking ``food stamp'' each 
                place it appears and inserting ``secure supplemental 
                nutrition assistance'';
                    (C) specified in paragraph (2)(C) are amended by 
                striking each place it appears ``food stamp recipient'' 
                and inserting ``member of a household that receives 
                Secure Supplemental Nutrition Assistance Program 
                benefits'',
                    (D) specified in paragraph (2)(D) are amended by 
                striking ``food stamp recipients'' each place it 
                appears and inserting ``members of households that 
                receive Secure Supplemental Nutrition Assistance 
                Program benefits'',
                    (E) specified in paragraph (2)(E) are amended by 
                striking ``food stamp households'' each place it 
                appears and inserting ``households that receive Secure 
                Supplemental Nutrition Assistance Program benefits'';
                    (F) specified in paragraph (2)(F) are amended by 
                striking ``Simplified Food Stamp Program'' each place 
                it appears and inserting ``Simplified Secure 
                Supplemental Nutrition Assistance Program'';
                    (G) specified in paragraph (2)(H) are amended by 
                striking ``food stamp participants'' each place it 
                appears and inserting ``participants in the Secure 
                Supplemental Nutrition Assistance Program'';
                    (H) specified in paragraph (2)(I) are amended by 
                striking ``food stamp informational activities'' each 
                place it appears and inserting ``informational 
                activities relating to the Secure Supplemental 
                Nutrition Assistance Program'';
                    (I) specified in paragraph (2)(J) are amended by 
                striking ``food stamp caseload'' each place it appears 
                and inserting ``caseload under the Secure Supplemental 
                Nutrition Assistance Program'';
                    (J) specified in paragraph (2)(K) are amended by 
                striking ``State's food stamp households'' each place 
                it appears and inserting ``the number of households in 
                the State receiving Secure Supplemental Nutrition 
                Assistance Program benefits'';
                    (K) specified in paragraph (2)(L) are amended in 
                the section heading by striking ``food stamp portion'' 
                each place it appears and inserting ``secure 
                supplemental nutrition assistance program benefits'';
                    (L) specified in paragraph (2)(M) are amended by 
                striking ``food stamps'' each place it appears and 
                inserting ``Secure Supplemental Assistance Nutrition 
                Program benefits'';
                    (M) specified in paragraph (2)(N) are amended by 
                striking ``Food stamp program'' each place it appears 
                and inserting ``Secure Supplemental Nutrition 
                Assistance Program'';
                    (N) specified in paragraph (2)(o) are amended by 
                striking ``food stamp program benefits'' each place it 
                appears and inserting ``Secure Supplemental Nutrition 
                Program benefits''; and
                    (O) specified in paragraph (2)(O) are amended by 
                striking ``food stamp program'' each place it appears 
                and inserting ``Secure Supplemental Nutrition 
                Assistance Nutrition Program''.
            (2) Provisions referred to.--The provisions of the of the 
        Food Stamp Act of 1977 referred to in paragraph (1) are the 
        following:
                    (A) Sections 4 and 26.
                    (B) Section 6(j).
                    (C) Section 6(o)(6)(A)(ii).
                    (D)(i) Subparagraphs (D) and (E) of section 
                6(o)(6);
                    (ii) sections 16(h)(1)(E)(i) and 12(a); and
                    (iii) paragraphs (1)(B)(ii)(II) and (3)(B) of 
                section 17(b).
                    (E) Sections 7(h)(3)(B)(ii), 9(b)(1), 12(a), and 
                17(b)(1)(B)(ii)(I).
                    (F) Sections 11(e)(25) and 26(b).
                    (G) Section 11(f)(2)(B).
                    (H) Section 16(a).
                    (I) Section 16(e)(9)(C).
                    (J) Section 17(b)(1)(B)(iii)(I).
                    (K) Section 22.
                    (L)(i) Subsections (d)(3) and (o)(6)(A)(i) of 
                section 6;
                    (ii) paragraphs (2)(B)(v)(II) and (14) of section 
                11(e); and
                    (iii) sections 12(e)(16), 17(b)(3)(C), and 
                18(a)(3)(A)(ii).
                    (M) Section 3(h).
                    (N)(i) In section 6--
                            (I) subsection (h); and
                            (II) in subsection (o)--
                                    (aa) paragraph (2); and
                                    (bb) subclauses (IV) and (V) of 
                                paragraph (6)(A)(ii).
                    (ii) Section 7(k)(2).
                    (iii) In section 11--
                            (I) subsection (e)(25)(A);
                            (II) paragraphs (1), (2), and (3) of 
                        subsection (s); and
                            (III) subsection (t)(1)(B).
                    (iv) In section 17--
                            (I) subsection (a)(2);
                            (II) paragraphs (1)(A), (2), and (3)(D) of 
                        subsection (b);
                            (III) paragraphs (1)(B), (2)(C)(ii), and 
                        (3)(E) of subsection (d); and
                            (IV) subsections (e) and (f).
                    (v) Section 21(d)(3).
                    (O)(i) Sections 2, 3(h), and 4.
                    (ii) In section 5--
                            (I) subsections (a), (b), (c), and (d);
                            (II) clauses (ii)(III) and (iv)(IV) of 
                        subsection (e)(6)(C);
                            (III) paragraphs (1), (3), and (6)(B)(iv) 
                        of subsection (g); and
                            (IV) subsections (h)(2)(A) and (k)(4)(B).
                    (iii) In section 6--
                            (I) subsections (a) and (b);
                            (II) in subsection (d)(1)--
                                    (aa) subparagraphs (A) and (B);
                                    (bb) clauses (i), (ii), and (iii) 
                                of subparagraph (C); and
                                    (cc) clauses (v) and (vi) of 
                                subparagraph (D);
                            (III) paragraphs (2)(C), (3), and (4)(A)(i) 
                        of subsection (d);
                            (IV) subsections (e), (f), and (h);
                            (V) paragraphs (1) and (2) of subsection 
                        (i); and
                            (VI) subsections (j), (k), (l)(1), (m)(1), 
                        (n), (o)(5)(A);
                    (iv) In section 7--
                            (I) subsections (a), (b), and (g);
                            (II) paragraphs (1) and (2)(B) of 
                        subsection (j); and
                            (III) in subsection (k)--
                                    (aa) paragraph (3); and
                                    (bb) subparagraphs (B)(ii) and (C) 
                                of paragraph (4).
                    (v) In section 8--
                            (I) subsections (a), (c)(2), and (d)(2);
                            (II) in subsection (f)--
                                    (aa) clauses (i)(II)(aa), (ii)(I), 
                                and (iv) of paragraph (1)(D); and
                                    (bb) paragraph (3)(B)(ii)(II)(bb).
                    (vi) In section 9--
                            (I) paragraphs (1) and (3) of subsection 
                        (a); and
                            (II) subsections (b)(1), (d), (e), and (g).
                    (vii) In section 11--
                            (I) subsections (c) and (d);
                            (II) in subsection (e)--
                                    (aa) paragraph (1)(A);
                                    (bb) clauses (i) and (iv) of 
                                paragraph (2)(B); and
                                    (cc) paragraphs (10), (17), 
                                (20)(B), and (22);
                            (III) subsections (f)(1), (g), (i), and 
                        (j)(1);
                            (IV) paragraphs (1), (2), (3), and (4) of 
                        subsection (o);
                            (V) subsections (p) and (q); and
                            (VI) paragraphs (2)(A) and (B)(4)(A) of 
                        subsection (t).
                    (viii) Sections 12(a) and 14(a)(1).
                    (ix) Subsections (b)(1) and (c) of section 15.
                    (x) In section 16--
                            (I) subsection (a);
                            (II) paragraph (1), (2), and (3) of 
                        subsection (b);
                            (III) in subsection (c)--
                                    (aa) the matter preceding 
                                subparagraph (A);
                                    (bb) subparagraphs (D)(i)(II) and 
                                (F)(iii)(I) of paragraph (1); and
                                    (cc) subparagraphs (A), (B), and 
                                (C) of paragraph (9);
                            (IV) subsections (e), (g), and (i)(1); and
                            (V) in subsection (k)--
                                    (aa) subparagraphs (A) and (B) of 
                                paragraph (2);
                                    (bb) subparagraphs (A) and (B)(i) 
                                of paragraph (3); and
                                    (cc) subparagraphs (A)(ii) and 
                                (B)(iv)(II) of paragraph (5).
                    (xi) In section 17--
                            (I) subsection (a)(1);
                            (II) in subsection (b)--
                                    (aa) subparagraphs (A) and (B)(i) 
                                of paragraph (1); and
                                    (bb) subparagraph (2);
                            (III) subsection (c);
                            (IV) subparagraphs (A) and (C) of 
                        subsection (d) (2); and
                            (V) subsections (e), (g), and (h)(2).
                    (xii) Subsections (a)(3)(D), (b), (d), and (e) of 
                section 18.
                    (xiii) Subsections (a)(1) and (f) of section 20.
                    (xiv) In section 21--
                            (I) subsection (a);
                            (II) in subsection (b)--
                                    (aa) in paragraph (2)--
                                            (AA) clause (i) and (ii) of 
                                        subparagraph (A);
                                            (BB) subparagraphs (B) and 
                                        (C)(i);
                                            (CC) clause (ii), and 
                                        subclauses (II), (III), and 
                                        (IV) of clause (iii), of 
                                        subparagraph (F); and
                                            (DD) subparagraph (G)(i);
                                    (bb) paragraph (3);
                                    (cc) in paragraph (4)--
                                            (AA) subparagraphs (A) and 
                                        (B); and
                                            (BB) the flush text at the 
                                        end;
                                    (dd) paragraphs (5) and (7);
                            (III) subsection (C)(2)(B);
                            (IV) paragraphs (1)(A), (2), and (3) of 
                        subsection (d); and
                            (V) paragraphs (1) and (2) of subsection 
                        (f).
                    (xv) In section 22--
                            (I) subsection (a)(1);
                            (II) in subsection (b)--
                                    (aa) paragraph (2);
                                    (bb) in paragraph (3)--
                                            (AA) subparagraphs (A) and 
                                        (B)(ii);
                                            (BB) clauses (ii) and (iii) 
                                        of subparagraph (C);
                                            (CC) subparagraph (D)(ii); 
                                        and
                                            (DD) clauses (i), (ii), and 
                                        (iv) of subparagraph (E);
                                    (cc) paragraph (5);
                                    (dd) subparagraphs (B) and (C) of 
                                paragraph (6);
                                    (ee) subparagraphs (A) and (B) of 
                                paragraph (7);
                                    (ff) paragraphs (8) and (9);
                                    (gg) in paragraph (10)--
                                            (AA) subparagraph (A)
                                            (BB) clauses (i) and (ii) 
                                        of subparagraph (B); and
                                            (CC) subparagraph (C); and
                                    (hh) paragraphs (11), (12), and 
                                (13);
                            (III) in subsection (d)--
                                    (aa) paragraph (1)(B)(i); and
                                    (bb) paragraph (3); and
                            (IV) subsections (g)1 and (h).
                    (xvi) Section 23(c).
                    (xvii) In section 26--
                            (I) subparagraphs (B) and (C) of subsection 
                        (c)(4); and
                            (II) subsection (f)(1).
    (b) References in Other Laws, Document, and Records of the United 
States.--In any law (excluding the Food Stamp Act of 1977), regulation, 
rule, document, or record of the United States--
            (1) a reference to food stamp recipients shall be deemed to 
        be a reference to recipients of Secure Supplemental Nutrition 
        Assistance Program benefits;
            (2) a reference to food stamp households shall be deemed to 
        be a reference to households that receive Secure Supplemental 
        Nutrition Assistance Program benefits;
            (3) a reference to the Simplified Food Stamp Program shall 
        be deemed to be a reference to the Simplified Secure 
        Supplemental Nutrition Assistance Program;
            (4) a reference to food stamp participants shall be deemed 
        to be a reference to participants in the Secure Supplemental 
        Nutrition Assistance Program;
            (5) a reference to food stamp informational activities 
        shall be deemed to be a reference to informational activities 
        relating to the Secure Supplemental Nutrition Assistance 
        Program;
            (6) a reference to food stamp caseload shall be deemed to 
        be a reference to caseload under the Secure Supplemental 
        Nutrition Assistance Program;
            (7) a reference to food stamps shall be deemed to be a 
        reference to Secure Supplemental Nutrition Assistance Program 
        benefits; and
            (8) a reference to the food stamp program shall be deemed 
        to be a reference to Secure Supplemental Nutrition Assistance 
        Program.

SEC. 4002. DEFINITION OF DRUG ADDICTION OR ALCOHOLIC TREATMENT AND 
              REHABILITATION PROGRAM.

    Section 3(f) of the Food Stamp Act of 1977 (7 U.S.C. 2012(f)) is 
amended by striking `` center, under part B of title XIX of the Public 
Health Service Act (42 U.S.C. 300x et seq.)'' and inserting ``center, 
that is--
            ``(1) tax exempt; and
            ``(2) certified by the State title XIX agency, under part B 
        of title XIX of the Public Health Service Act (42 U.S.C. 300x 
        et seq.), as receiving funding under part B, eligible to 
        receive funding under part B even if no funds are being 
        received, or operating to further the purposes of part B, 
        except that nothing in this paragraph shall be construed to 
        require State or Federal licensure to meet these 
        requirements;''.

SEC. 4003. NUTRITION EDUCATION.

    (a) Authority to Provide Nutrition Education.--Section 4(a) of the 
Food Stamp Act of 1977 (7 U.S.C. 2013(a)) is amended in the first 
sentence by inserting ``and through an approved State plan, nutrition 
education'' after ``an allotment''.
    (b) Implementation.--Section 11(f) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(f)) is amended to read as follows:
    ``(f) Nutrition Education.--
            ``(1) In general.--State agencies may implement a nutrition 
        education program for individuals eligible for Secure 
        Supplemental Nutrition Assistance Program benefits that 
        promotes healthy food choices consistent with current Dietary 
        Guidelines.
            ``(2) Delivery of nutrition education.--State agencies may 
        deliver nutrition education directly to eligible persons or 
        through agreements with the Cooperative State Research, 
        Education and Extension Service, including through the expanded 
        food and nutrition education under section 3(d) of the Act of 
        May 8, 1914 (7 U.S.C. 343(d)), and other State and community 
        health and nutrition providers and organizations.
            ``(3) Nutrition education state plans.--State agencies 
        wishing to provide nutrition education under this subsection 
        shall submit a Nutrition Education State Plan to the Food and 
        Nutrition Service for approval. The plan shall identify the 
        uses of the funding for local projects and conform to standards 
        set forth by the Secretary in regulations or guidance. State 
        costs for providing nutrition education under this subsection 
        shall be reimbursed pursuant to section 16(a).
            ``(4) Notification.--Whenever practicable, State agencies 
        shall notify applicants, participants, and eligible program 
        participants of the availability of nutrition education under 
        this subsection.''.

SEC. 4004. FOOD DISTRIBUTION ON INDIAN RESERVATIONS.

    (a) In General.--Section 4 of the Food Stamp Act of 1977 (7 U.S.C. 
2013) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Food Distribution Program on Indian Reservations.--
            ``(1) In general.--Distribution of commodities, with or 
        without the Secure Supplemental Nutrition Assistance Program, 
        shall be made whenever a request for concurrent or separate 
        food program operations, respectively, is made by a tribal 
        organization.
            ``(2) Administration.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), in the event of a distribution on all or part of 
                an Indian reservation, the appropriate agency of the 
                State government in the area involved shall be 
                responsible for the distribution.
                    ``(B) Administration by tribal organization.--If 
                the Secretary determines that a tribal organization is 
                capable of effectively and efficiently administering a 
                distribution described in subparagraph (A), then the 
                tribal organization shall administer the distribution.
                    ``(C) Prohibition.--The Secretary shall not approve 
                any plan for a distribution described in subparagraph 
                (A) that permits any household on any Indian 
                reservation to participate simultaneously in the Secure 
                Supplemental Nutrition Assistance Program and the 
                distribution of federally donated foods.
            ``(3) Disqualified participants.--The Secretary shall 
        ensure that an individual who is disqualified from 
        participation in the Food Distribution Program on Indian 
        Reservations under this subsection is not eligible to 
        participate in the Secure Supplemental Nutrition Assistance 
        Program under this Act.
            ``(4) Administrative costs.--The Secretary is authorized to 
        pay such amounts for administrative costs of such distribution 
        on Indian reservations as the Secretary finds necessary for 
        effective administration of such distribution by a State agency 
        or tribal organization.
            ``(5)  Traditional and local foods fund.--
                    ``(A) In general.--The Secretary shall establish a 
                fund to purchase traditional and locally-grown food, 
                designated by region, for recipients of food 
                distributed under this subsection.
                    ``(B) Native american producers.--For recipients of 
                food distributed under subparagraph (A), at least 50 
                percent shall be produced by Native American farmers, 
                ranchers, and producers.
                    ``(C) Definition of traditional and locally 
                grown.--The Secretary, in conjunction with the Indian 
                Tribal Organizations, will determine the definition of 
                traditional and locally-grown.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to the Secretary 
                $5,000,000 for each of the fiscal years 2008 through 
                2012 to carry out subparagraph (A).''.
    (b) FDPIR Food Package.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that describes--
            (1) how the Secretary derives the process for determining 
        the food package under the Food Distribution Program on Indian 
        Reservations established under section 4(b) of the Food Stamp 
        Act of 1977 (7 U.S.C. 2013(b)) (referred to in this subsection 
        as the ``food package'');
            (2) the extent to which the food package--
                    (A) conforms (or fails to conform) to the 2005 
                Dietary Guidelines for Americans published under 
                section 301 of the National Nutrition Monitoring and 
                Related Research Act of 1990 (7 U.S.C. 5341);
                    (B) addresses (or fails to address) the nutritional 
                and health challenges that are specific to Native 
                Americans; and
                    (C) addresses (or fails to address) the nutritional 
                needs of low-income Native Americans, compared to the 
                Secure Supplemental Nutrition Assistance Program;
            (3) any plans of the Secretary to revise and update the 
        food package to conform with the most recent Dietary Guidelines 
        for Americans, including any costs associated with the planned 
        changes; and
            (4) if the Secretary does not plan changes to the food 
        package, the rationale of the Secretary for retaining the food 
        package.

SEC. 4005. EXCLUDING COMBAT RELATED PAY FROM COUNTABLE INCOME.

    Section (5)(d) of the Food Stamp Act of 1977 (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: ``and (19) any additional payment received under 
        Chapter 5 of title 37, United States Code, by (or as an 
        allotment to or transfer from) a member of the United States 
        Armed Forces deployed to a designated combat zone for the 
        duration of the member's deployment to or service in a combat 
        zone if the additional pay was not received immediately prior 
        to serving in that or another combat zone.''.

SEC. 4006. INCREASING THE STANDARD DEDUCTION.

    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 through the period at the end, and 
        inserting the following: ``not less than $145, $248, $205, and 
        $128, respectively. On October 1, 2008, and each October 1 
        thereafter, such standard deduction shall be 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 
        12 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 $291. On 
        October 1, 2008, and each October 1 thereafter, such standard 
        deduction shall be an amount that is equal to the amount of the 
        previous fiscal year adjusted to the nearest 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 12 months ending the preceding 
        June 30.''.

SEC. 4007. EXCLUDING DEPENDENT CARE EXPENSES.

    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. 4008. ADJUSTING COUNTABLE RESOURCES FOR INFLATION.

    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. 4009. EXCLUDING EDUCATION ACCOUNTS FROM COUNTABLE INCOME.

    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:
            ``(7) Exclusion of education accounts from countable 
        resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of any funds in a qualified tuition program 
                described in section 529 of the Internal Revenue Code 
                of 1986 or in a Coverdell education savings account 
                under section 530 of that Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                also exclude from financial resources under this 
                subsection the value of any program or account included 
                in any successor or similar provision that is enacted 
                and determined to be exempt from taxation under the 
                Internal Revenue Code of 1986.''.

SEC. 4010. EXCLUDING RETIREMENT ACCOUNTS FROM COUNTABLE INCOME.

    Section (5)(g) of the of the Food Stamp Act of 1977 (7 U.S.C. 
2014(g)), as amended by section 4009, is amended--
            (1) in subsection (g)(2)(B)(v) by striking ``or retirement 
        account (including an individual account)'' and inserting 
        ``account''; and
            (2) adding at the end the following:
            ``(8) Exclusion of retirement accounts from countable 
        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 
                as 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 section 8439 of title 
                5, United States Code.
                    ``(B) Discretionary exclusions.--
                            ``(i) The Secretary may exclude from 
                        financial resources under this subsection any 
                        other retirement plans, contracts, or accounts 
                        that have been determined to be tax qualified 
                        retirement plans, contracts, or accounts, under 
                        the Internal Revenue Code of 1986.
                            ``(ii) The Secretary may also exclude from 
                        financial resources under this subsection the 
                        value of any program or account included in any 
                        successor or similar provision that is enacted 
                        and determined to be exempt from taxation under 
                        the Internal Revenue Code of 1986.''.

SEC. 4011. DEOBLIGATE FOOD STAMP COUPONS.

    (a) In General.--Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 
2016) is amended--
            (1) by striking the section designation and heading and all 
        that follows through ``subsection (j)) shall be'' and inserting 
        the following:

``SEC. 7. ISSUANCE AND USE OF BENEFITS.

    ``(a) In General.--Except as provided in subsection (j), EBT cards 
shall be''.
            (2) in subsection (b)--
                    (A) by striking ``(b) Coupons'' and inserting the 
                following:
    ``(b) Use.--Benefits''; and
                    (B) by striking ``: Provided further'' and all that 
                follows through ``denominations issued'';
            (3) in subsection (c)--
                    (A) by striking ``(c) Coupons'' and inserting the 
                following:
    ``(c) Design.--
            ``(1) In general.--EBT cards'';
                    (B) in the 1st sentence by striking ``and define 
                their denomination''; and
                    (C) by striking the 2d sentence and inserting the 
                following:
            ``(2) Prohibition.--The name of any public official shall 
        not appear on any EBT card.'';
            (4) by striking subsection (d);
            (5) in subsection (e)--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (B) by striking ``coupon issuers'' each place it 
                appears and inserting ``benefit issuers'';
            (6) in subsection (f)--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits'';
                    (B) by striking ``coupon issuer'' and inserting 
                ``benefit issuer''; and
                    (C) by striking ``section 11(e)(20)'' and all that 
                follows through the period and inserting ``section 
                11(e)(19).'';
            (7) by amending subsection (g) to read as follows:
    ``(g) Benefit System.--
            ``(1) Cost.--The cost of documents or systems that may be 
        required by subsection (i) may not be imposed upon a retail 
        food store participating in the Secure Supplemental Nutrition 
        Assistance Program.
            ``(2) Devaluation and termination of issuance of paper 
        coupons.--
                    ``(A) Coupon issuance.--Beginning on the effective 
                date of this subsection, no State shall issue any 
                coupon, stamp, certificate, or authorization card to a 
                household that receives benefits under this Act.
                    ``(B) Ebt cards.--Beginning 1 year after the 
                effective date of this subsection, only an EBT card 
                issued under subsection (i) shall be eligible for 
                exchange at any retail food store.
                    ``(C) De-obligation of coupons.--Coupons not 
                redeemed in the 1-year period beginning on the 
                effective date of this subsection will no longer be an 
                obligation of the Federal Government and shall not be 
                redeemable.''.
            (8) in subsection (h)(1) by striking ``coupons'' and 
        inserting ``benefits'';
            (9) in subsection (j)--
                    (A) in paragraph (2)(A)(ii) by striking ``printing, 
                shipping, and redeeming coupons'' and inserting 
                ``issuing and redeeming benefits''; and
                    (B) in paragraph (5) by striking ``coupon'' and 
                inserting ``benefit''; and
            (10) in subsection (k)--
                    (A) by striking ``coupons in the form of'' each 
                place it appears and inserting ``benefits in the form 
                of''; and
                    (B) by striking ``a coupon issued in the form of'' 
                each place it appears and inserting ``benefits in the 
                form of''.
    (b) Conforming Amendments.--
            (1) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012) 
        is amended--
                    (A) in subsection (a) by striking ``coupons'' and 
                inserting ``benefits'';
                    (B) by amending subsection (b) to read as follows:
    ``(b) `Benefit' means the value of assistance provided under this 
Act to a household by means of an electronic benefit transfer under 
section 7(i), or other means of providing assistance, as determined by 
the Secretary.'';
                    (C) in the 1st sentence of subsection (c) by 
                striking ``authorization cards'' and inserting 
                ``benefits'';
                    (D) in subsection (d) by striking ``or access 
                device'' and all that follows through ``number'';
                    (E) in subsection (e)--
                            (i) by striking ``coupon issuer'' and 
                        inserting ``benefit issuer''; and
                            (ii) by striking ``coupons'' and inserting 
                        ``benefits'';
                    (F) by inserting after subsection (f) the 
                following:
    ``(f-1) Ebt Card.--The term `EBT card' means an electronic benefit 
transfer card issued under section 7(i).'';
                    (G) in subsection (i)(5)(D) by striking ``coupons'' 
                and inserting ``benefits''; and
                    (H) in subsection (t) by inserting ``including 
                point of sale devices,'' after ``other means of 
                access''.
            (2) Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C. 
        2013(a)) is amended--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (B) by striking ``coupons issued'' and inserting 
                ``benefits issued''.
            (3) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 
        U.S.C. 2014(i)(2)(E)) is amended by striking ``, as defined in 
        section 3(i) of this Act,''.
            (4) Section 6(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(b)(1)) is amended--
                    (A) in subparagraph (B) by striking ``coupons or 
                authorization cards'' and inserting ``benefits''; and
                    (B) by striking ``coupons'' each place it appears 
                and inserting ``benefits''.
            (5) Section 7(j)(5) is amended by striking ``coupon'' and 
        inserting ``benefit''.
            (6) Section 8(b) of the Food Stamp Act of 1977 (7 U.S.C. 
        2017(b)) is amended by striking ``, whether through coupons, 
        access devices, or otherwise''.
            (7) Section 9 of the Food Stamp Act of 1977 (7 U.S.C. 2018) 
        is amended--
                    (A) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (B) in subsection (a)--
                            (i) in paragraph (1) by striking ``coupon'' 
                        and inserting ``benefit''; and
                            (ii) in paragraph (3) by striking 
                        ``coupons, or to redeem''.
            (8) Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 
        2019) is amended--
                    (A) by striking the section designation and heading 
                and all that follows through ``Regulations'' and 
                inserting the following:

``SEC. 10. REDEMPTION OF BENEFITS.

    ``Regulations''; and
                    (B) by striking ``coupons'' each place it appears 
                and inserting ``benefits''.
            (9) Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 
        2020) is amended--
                    (A) in subsection (e)--
                            (i) in paragraph (15) by striking ``when 
                        using its authorization card in order to 
                        receive its coupons'' and inserting ``when 
                        receiving benefits''; and
                            (ii) in paragraph (19) by striking 
                        ``that,'' and all that follows through 
                        ``paragraph;'' and inserting ``that eligible 
                        households may be required to present 
                        photographic identification cards in order to 
                        receive their benefits.'';
                    (B) in subsection (h) by striking ``coupon or 
                coupons'' and inserting ``benefits'';
                    (C) by striking ``coupon'' each place it appears 
                and inserting ``benefit''; and
                    (D) by striking ``coupons'' each place it appears 
                and inserting ``benefits''.
            (10) Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 
        2022) is amended by striking ``coupons'' each place it appears 
        and inserting ``benefits''.
            (11) Section 15 of the Food Stamp Act of 1977 (7 U.S.C. 
        2024) is amended--
                    (A) in subsection (a) by striking ``coupons'' and 
                inserting ``benefits'';
                    (B) in subsection (b)(1)--
                            (i) by striking ``coupons'' each place it 
                        appears and inserting ``benefits'';
                            (ii) by striking ``coupons or authorization 
                        cards'' and inserting ``benefits''; and
                            (iii) by striking ``access device'' each 
                        place it appears and inserting ``benefit'';
                    (C) in subsection (c) by striking ``coupons'' each 
                place it appears and inserting ``benefits'';
                    (D) in subsection (d) by striking ``Coupons'' and 
                inserting ``Benefits'';
                    (E) in subsections (e) and (f) by striking 
                ``coupon'' each place it appears and inserting 
                ``benefit''; and
                    (F) in subsection (g) by striking ``coupon, 
                authorization cards or access devices'' and inserting 
                ``benefits''; and
            (12) Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 
        2025(a)) is amended by striking ``coupons'' each place it 
        appears and inserting ``benefits''.
            (13) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 
        2026) is amended--
                    (A) in subsection (a)(2) by striking ``coupon'' and 
                inserting ``benefit'';
                    (B) in subsection (b)(1)--
                            (i) in subparagraph (B)(v)--
                                    (I) by striking ``countersigned 
                                food coupons or similar''; and
                                    (II) by striking ``food coupons'' 
                                and inserting ``EBT cards''; and
                            (ii) in subparagraph (C)(i)(I) by striking 
                        ``coupons'' and inserting ``EBT cards''; and
                    (C) in subsection (j) by striking ``coupon'' and 
                inserting ``benefit''.
            (14) Section 21 of the Food Stamp Act of 1977 (7 U.S.C. 
        2030) is amended--
                    (A) in subsection (d)(3)--
                            (i) by striking ``food coupons'' and 
                        inserting ``benefits''; and
                            (ii) by striking ``food stamp benefits'' 
                        and inserting ``benefits''.
            (15) Section 22 of the Food Stamp Act of 1977 (7 U.S.C. 
        2031) is amended--
                    (A) by striking ``food coupons'' each place it 
                appears and inserting ``benefits'';
                    (B) by striking ``coupons'' each place it appears 
                and inserting ``benefits''; and
                    (C) in subsection (g)(1)(A) by striking ``coupon'' 
                and inserting ``benefit''.
    (c) References in Other Laws, Documents, and Records of the United 
States.--In any law (excluding the Food Stamp Act of 1977), regulation, 
rule, document, or record of the United States, a reference to 
``coupon'', ``authorization card'', or ``other access device'' as used 
in the Food Stamp Act of 1977 as in effect before the date of the 
enactment of this Act shall be deemed to be a reference to ``benefit'' 
as defined in such Act as in effect after the date of the enactment of 
this Act.

SEC. 4012. ALLOW FOR THE ACCRUAL OF BENEFITS.

    Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)) is 
amended by adding at the end the following:
            ``(12) Recovering electronic benefits.--
                    ``(A) A State agency may recover benefits from a 
                household's electronic benefits account because of 
                inactivity in the account after the household has not 
                accessed the account the lesser of--
                            ``(i) 3 months during which the account has 
                        continuously had a balance in excess of $1,000, 
                        adjusted for changes in the thrifty food plan 
                        since June 2007; or
                            ``(ii) 12 months.
                    ``(B) A household whose benefits are recovered 
                under subparagraph (A) shall receive notice and shall 
                have the benefits made available again upon a request 
                made during a period of not less than 12 months after 
                the recovery.''.

SEC. 4013. INCREASING THE 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 ``10 percent of the 
thrifty food plan for a household containing 1 member, as determined by 
the Secretary under section 3(o)''.

SEC. 4014. STATE OPTION FOR TELEPHONIC SIGNATURE.

    Section 11(e)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(2)(C)) is amended--
            (1) by inserting ``(i)'' after ``(C)''; and
            (2) by adding at the end the following:
                    ``(ii) A State agency may establish a system by 
                which an applicant household may sign an application 
                through a recorded verbal assent over the telephone. 
                Any such system shall--
                            ``(I) record for future reference the 
                        household member's verbal assent and the 
                        information to which assent was given;
                            ``(II) include effective safeguards against 
                        impersonation, identity theft, or invasions of 
                        privacy;
                            ``(III) not deny or interfere with the 
                        right of the household to apply in writing;
                            ``(IV) promptly send the household member a 
                        written copy of the application, with 
                        instructions on a simple procedure for 
                        correcting any errors or omissions;
                            ``(V) comply with paragraph (1)(B);
                            ``(VI) satisfy all requirements for a 
                        signature on an application under this Act and 
                        other laws applicable to the Secure 
                        Supplemental Nutrition Assistance Program, with 
                        the date on which the household member provides 
                        verbal assent effective as the date of 
                        application for all purposes; and
                            ``(VII) comply with such other standards as 
                        the Secretary may establish.''.

SEC. 4015. REVIEW OF MAJOR CHANGES IN PROGRAM DESIGN.

    (a) Prohibition.--Section 11(e)(6) of the Food Stamp Act of 1977 (7 
U.S.C. 2020(e)(6)) is amended--
            (1) in subparagraph (A) by striking ``and'' at the end;
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) except as provided in section 5(h)(4), only 
                State employees employed in accordance with the current 
                standards for a Merit System of Personnel 
                Administration, or any standards later prescribed by 
                the Office of Personnel Management pursuant to section 
                208 of the Intergovernmental Personnel Act of 1970 (42 
                U.S.C. 4728) modifying or superseding such standards 
                relating to the establishment and maintenance of 
                personnel standards on a merit basis, shall undertake 
                such certifications and shall--
                            ``(i) represent the State agency in any 
                        official communications with a prospective 
                        applicant, applicant, or recipient household 
                        regarding their application or participation, 
                        except that a nonprofit organization may assist 
                        a household under paragraph (1) through 
                        activities allowable under section 16(a)(4);
                            ``(ii) participate in making any 
                        determinations relating to a household's 
                        substantive or procedural compliance with the 
                        requirements of this Act or implementing 
                        regulations, including the adequacy of the 
                        household's application or of verification or 
                        other information the household has submitted 
                        in support of that application; or
                            ``(iii) participate in making any other 
                        determinations required under this subsection;
                except that nothing in this subparagraph shall prevent 
                a State agency from contracting for automated systems, 
                issuance services or program information activities 
                reimbursed under paragraph (2), (3), (4), or (6) of 
                section 16(a) or under section 16(g) or for assisting 
                in the verification of an applicant's identity; and
                    ``(C) the State agency shall not use any Federal 
                funds--
                            ``(i) to implement, to perform, or to carry 
                        out any contract that does not comply with the 
                        requirements in effect under subparagraph (B); 
                        or
                            ``(ii) to pay any cost associated with the 
                        termination, breach, or full or partial 
                        abrogation, of any contract that does not 
                        comply with the requirements in effect under 
                        such subparagraph;''.
    (b) Waivers.--Section 17(b)(1)(B)(iv)(III)(ff) of the Food Stamp 
Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(ff)) is amended by 
inserting ``or 11(e)(6)(B)'' before the semicolon at the end.
    (c) Projects.--Section 26(f)(3)(E) of the Food Stamp Act of 1977 (7 
U.S.C. 2035(f)(3)(E)) is amended by inserting ``(6)(B),'' after 
``paragraphs''.
    (d)  Disasters.--Section 5(h) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(h)) is amended by inserting at the end:
            ``(4) The Secretary may authorize a state agency, on a 
        temporary basis, to use employees or individuals that do not 
        meet the standards prescribed under section 11(e)(6)(B) in 
        order to determine eligibility for a disaster food stamp 
        program under this subsection.''.
    (e) Disallowance of Funds.--No funds shall be available under any 
appropriations act for implementing or continuing any contract that 
does not comply with section 11(e)(6)(B) of the Food Stamp Act of 1977 
(7 U.S.C. 2020(e)(6)(B)) as amended by subsection (a) nor for any costs 
associated with the termination or full or partial abrogation of such 
contract.
    (f) Transition Period.--Subsection (e) shall not apply to the costs 
of implementing, continuing, or renegotiating any contract concluded 
before January 1, 2007, (but shall apply to any costs associated with 
the termination or full or partial abrogation of such contract) until 
the first day of the first month beginning at least 120 days after the 
date of enactment of this Act.

SEC. 4016. 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''.

SEC. 4017. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
              STORES AND WHOLESALE FOOD CONCERNS.

    Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) is 
amended--
            (1) by striking the section heading and all that follows 
        through ``(a) Any approved'', and inserting the following:

``SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION OF RETAIL FOOD 
              STORES AND WHOLESALE FOOD CONCERNS.

    ``(a) Disqualification.--
            ``(1) In general.--An approved'';
            (2) in subsection (a)--
                    (A) in the 1st sentence by striking ``$10,000 for 
                each violation'' and all that follows through the 
                period at the end, and inserting ``$100,000 for each 
                violation.''; and
                    (B) in the 2d sentence--
                            (i) by striking ``Regulations'' and 
                        inserting the following:
            ``(2) Regulations.--Regulations'';
                            (ii) by striking ``finding of a violation 
                        and the'' and inserting ``finding of a 
                        violation,'';
                            (iii) by inserting a comma after 
                        ``disqualification of''; and
                            (iv) by striking ``a retail store'' and 
                        inserting ``and the assessment of a civil money 
                        penalty against, a retail store'';
            (3) in subsection (b)--
                    (A) by striking ``(b) Disqualification'' and all 
                that follows through ``shall be--'', and inserting the 
                following:
    ``(b) Period of Disqualification.--Subject to subsection (c), a 
disqualification shall be--'';
                    (B) in paragraph (1) by striking ``of no less than 
                six months nor more than five years'' and inserting 
                ``not to exceed 5 years'';
                    (C) in paragraph (2) by striking ``of no less than 
                twelve months nor more than ten years'' and inserting 
                ``not to exceed 10 years'';
                    (D) in paragraph (3)--
                            (i) in subparagraph (B)--
                                    (I) by striking ``coupons or 
                                trafficking in coupons or authorization 
                                cards'' each place it appears, and 
                                inserting ``program access devices or 
                                benefit instruments or trafficking in 
                                program access devices or benefit 
                                instruments''; and
                                    (II) by inserting ``or a finding of 
                                the unauthorized redemption, use, 
                                transfer, acquisition, alteration, or 
                                possession of benefits or access 
                                devices'' after ``concern'' the 1st 
                                place it appears;
            (4) in paragraph (3)(C) by striking ``and'' at the end;
            (5) in subsection (c)--
                    (A) by striking ``(c) The action'' and inserting 
                the following:
    ``(c) Treatment of Disqualification and Penalty Determinations.--
The action''; and
                    (B) by striking ``coupons'' and inserting 
                ``benefits'';
            (6) in subsection (d) by striking ``coupons'' in each place 
        it appears and inserting ``benefits'';
            (7) in subsection (f) by striking ``food coupons'' and 
        inserting ``benefits'';
            (8) by redesignating subsections (c) through (g) as 
        subsections (d) through (h), respectively;
            (9) inserting after subsection (b) the following:
    ``(c) In addition to a disqualification under subsection (b), the 
Secretary may assess a civil monetary penalty of up to $100,000;''; and
            (10) by adding at the end:
    ``(i) The Secretary shall, in consultation with the Inspector 
General of the Department of Agriculture, provide for procedures by 
which the processing of benefit redemptions for certain retail food 
stores and wholesale food concerns may be immediately suspended pending 
administrative action to disqualify such a store or concern. Under the 
procedures prescribed pursuant to this subsection, if the Secretary, in 
consultation with the Inspector General, determines that a retail food 
store or wholesale food concern is engaged in flagrant violations of 
this Act or the regulations issued pursuant to this Act, unsettled 
benefits that have been redeemed by the retail food store or wholesale 
food concern may be suspended and, if the suspension is upheld, subject 
to forfeiture pursuant to section 12(g). If the disqualification action 
is not upheld, suspended funds held by the Secretary shall be released 
to such store or such concern. The Secretary shall not be liable for 
the value of any interest on funds suspended under this subsection.''.

SEC. 4018. MAJOR SYSTEMS FAILURES.

    Section 13(b) of the Food Stamp Act of 1977 (7 U.S.C. 2022(b)) is 
amended by adding at the end the following:
            ``(5) Over issuances caused by systemic state errors.--
                    ``(A) In general.--If the Secretary determines that 
                a State agency over issued benefits to a substantial 
                number of households in a fiscal year as a result of a 
                major systemic error by the State agency, as determined 
                by the Secretary, the Secretary may prohibit the State 
                agency from collecting these over issuances from some 
                or all households.
                    ``(B) Procedures.--
                            ``(i) Information reporting by states.--
                        Every State agency shall provide to the 
                        Secretary all information requested by the 
                        Secretary concerning the issuance of benefits 
                        to households by the State agency in the 
                        applicable fiscal year.
                            ``(ii) Final determination.--After 
                        reviewing relevant information provided by a 
                        State agency, the Secretary shall make a final 
                        determination--
                                    ``(I) whether the State agency over 
                                issued benefits to a substantial number 
                                of households as a result of a systemic 
                                error in the applicable fiscal year; 
                                and
                                    ``(II) as to the amount of the over 
                                issuance in the applicable fiscal year 
                                for which the State agency is liable.
                            ``(iii) Establishing a claim.--Upon 
                        determining under clause (ii) that a State 
                        agency has over issued benefits to households 
                        due to a major systemic error determined under 
                        subparagraph (A), the Secretary shall establish 
                        a claim against the State agency equal to the 
                        value of the over issuance caused by the 
                        systemic error.
                            ``(iv) Administrative and judicial 
                        review.--Administrative and judicial review, as 
                        provided in section 14, shall apply to the 
                        final determinations by the Secretary under 
                        clause (ii).
                            ``(v) Remission to the secretary.--
                                    ``(I) Determination not appealed.--
                                If the determination of the Secretary 
                                under clause (ii) is not appealed, the 
                                State agency shall, as soon as 
                                practicable, remit to the Secretary the 
                                dollar amount specified in the claim 
                                under clause (iii).
                                    ``(II) Determination appealed.--If 
                                the determination of the Secretary 
                                under clause (ii) is appealed, upon 
                                completion of administrative and 
                                judicial review under clause (iv), and 
                                a finding of liability on the part of 
                                the State, the appealing State agency 
                                shall, as soon as practicable, remit to 
                                the Secretary a dollar amount subject 
                                to the finding of the administrative 
                                and judicial review.
                            ``(vi) Alternative method of collection.--
                                    ``(I) In general.--If a State 
                                agency fails to make a payment under 
                                clause (v) within a reasonable period 
                                of time, as determined by the 
                                Secretary, the Secretary may reduce any 
                                amount due to the State agency under 
                                any other provision of this Act by the 
                                amount due.
                                    ``(II) Accrual of interest.--During 
                                the period of time determined by the 
                                Secretary to be reasonable under 
                                subclause (I), interest in the amount 
                                owed shall not accrue.
                            ``(vii) Limitation.--Any liability amount 
                        established under section 16(c)(1)(C) shall be 
                        reduced by the amount of the claim established 
                        under this subparagraph.''.

SEC. 4019. FUNDING OF EMPLOYMENT AND TRAINING PROGRAMS.

    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 ``fiscal years 
        2002 through 2007'' and inserting ``fiscal years 2008 through 
        2012''; and
            (2) in subparagraph (E)(i) by striking ``fiscal years 2002 
        through 2007'' and inserting ``fiscal years 2008 through 
        2012''.

SEC. 4020. 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 subparagraph (A) by striking ``2007'' and inserting 
        ``2012''; and
            (2) in subparagraph (B)(ii) by striking ``2007'' and 
        inserting ``2012''.

SEC. 4021. 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''.

SEC. 4022. FINDINGS OF CONGRESS REGARDING SECURE SUPPLEMENTAL NUTRITION 
              ASSISTANCE PROGRAM NUTRITION EDUCATION.

    (a) Findings.--The Congress finds the following:
            (1) Nutrition education under the Food Stamp Act of 1977 
        plays an essential role in improving the dietary and physical 
        activity practices of low-income Americans, helping to reduce 
        food insecurity, prevent obesity, and reduce the risks of 
        chronic disease.
            (2) Expert bodies, such as the Institute of Medicine, 
        indicate that dietary and physical activity behavior change is 
        more likely to result from the combined application of public 
        health approaches and education than from individual education 
        alone.
            (3) State programs are currently implementing such 
        nutrition education using effective strategies, including 
        direct education, group activities, and social marketing.
    (b) Support Nutrition Education.--The Secretary of Agriculture 
should support and encourage the most effective interventions for 
nutrition education under the Food Stamp Act of 1977, including public 
health approaches as well as traditional education, to increase the 
likelihood that recipients of Secure Supplemental Nutrition Assistance 
benefits and those who are potentially eligible for such benefits will 
choose diets and physical activity practices consistent with the 
Dietary Guidelines for Americans. To promote the most effective 
implementation of publicly funded programs, State nutrition education 
activities under the Food Stamp Act of 1977 should be coordinated with 
other federally funded food assistance and public health programs and 
should leverage public/private partnerships to maximize resources and 
impact.

SEC. 4023. NUTRITION EDUCATION AND PROMOTION INITIATIVE TO ADDRESS 
              OBESITY.

    Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended 
by adding at the end the following:
    ``(k) Nutrition Education and Promotion Initiative to Address 
Obesity.--
            ``(1) In general.--The Secretary shall establish a 
        demonstration program, to be known as the `Initiative to 
        Address Obesity Among Low-Income Americans' (referred to in 
        this subsection as the `Initiative'), to develop and implement 
        solutions to reduce obesity in the United States.
                    ``(A) Selection.--The Secretary shall solicit and 
                competitively select demonstration proposals for 
                strategies to address obesity among low-income 
                Americans.
                    ``(B) Evaluation.--The effectiveness of these 
                strategies shall be rigorously evaluated to assess the 
                impact on overweight and obesity among low-income 
                persons and particularly children, as well as the 
                feasibility of replicating these programs in other 
                locations.
                    ``(C) Dissemination.--Evaluation results shall be 
                shared broadly to inform policy makers, service 
                providers, other partners, and the public in order to 
                promote wide use of successful strategies.
            ``(2) Grants.--
                    ``(A) In general.--In carrying out the Initiative, 
                the Secretary may enter into competitively awarded 
                contracts or cooperative agreements with, or grants to, 
                public or private organizations or agencies as defined 
                by the Secretary, for use in accordance with projects 
                that meet the strategy goals of the Initiative.
                    ``(B) Application.--To be eligible to receive a 
                contract, cooperative agreement, or grant under this 
                paragraph, an organization shall submit to the 
                Secretary an application at such time, in such manner, 
                and containing such information as the Secretary may 
                require.
                    ``(C) Selection criteria.--Demonstration proposals 
                shall be evaluated against publicly disseminated 
                criteria that include--
                            ``(i) identification of a low-income target 
                        audience that corresponds to individuals living 
                        in households with incomes at or below 185 
                        percent of the poverty level;
                            ``(ii) incorporation of a scientifically-
                        based strategy that is designed to improve diet 
                        quality through more healthful food purchases, 
                        preparation, or consumption;
                            ``(iii) a commitment to a demonstration 
                        plan that allows for a rigorous outcome 
                        evaluation, including data collection;
                            ``(iv) strategies to improve the 
                        nutritional value of food served during school 
                        hours and during after-school hours;
                            ``(v) innovative ways to provide 
                        significant improvement to the health and 
                        wellness of children;
                            ``(vi) other criteria, as determined by the 
                        Secretary.
                    ``(D) Use of funds.--
                            ``(i) Prohibition.--Funds shall not be used 
                        for projects that limit the use of benefits.
                            ``(ii) Monitoring and evaluation.--The 
                        Secretary may use funds provided for the 
                        Initiative to pay costs associated with 
                        monitoring, evaluation, and dissemination of 
                        the Initiative's findings.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $10,000,000 for 
        each of the fiscal years 2008 through 2012, except that no new 
        grants may be made under this subsection after September 30, 
        2012.''.

SEC. 4024. AUTHORIZATION OF APPROPRIATIONS.

    Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(a)(1)) is amended by striking ``2003 through 2007'' and inserting 
``2008 through 2012''.

SEC. 4025. 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 in subparagraph (A)(ii) by striking 
``2007'' and inserting ``2012''.

SEC. 4026. STUDY ON COMPARABLE ACCESS TO SECURE SUPPLEMENTAL NUTRITION 
              ASSISTANCE PROGRAM BENEFITS FOR PUERTO RICO.

    Section 19 of the Food Stamp Act of 1977 (7 U.S.C. 2028) is amended 
by adding at the end the following:
    ``(e) Study.--The Secretary shall conduct a study of the 
feasibility and effects of including the Commonwealth of Puerto Rico 
under section 3(m), in lieu of providing the block grant under this 
section. The study shall include--
            ``(1) an assessment of the administrative, financial 
        management, and other changes that would be required by the 
        Commonwealth to establish a comparable Secure Supplemental 
        Nutrition Assistance Program;
            ``(2) a discussion of the appropriate program rules under 
        the other sections of the Act, such as benefit levels under 
        section 3(o), income eligibility standards under sections 5 and 
        6, and deduction levels under section 5(e), for the 
        Commonwealth to establish a comparable Secure Supplemental 
        Nutrition Assistance Program;
            ``(3) an estimate of the impact on Federal and Commonwealth 
        benefit and administrative costs;
            ``(4) an estimate of the impact of the Secure Supplemental 
        Nutrition Assistance Program on hunger and food insecurity 
        among low-income Puerto Ricans, and
            ``(5) such other findings as the Secretary deems 
        appropriate.''.

SEC. 4027. REAUTHORIZATION OF COMMUNITY FOOD PROJECT COMPETITIVE 
              GRANTS.

    (a) Authorization of Appropriations.--Section 25 of the Food Stamp 
Act of 1977 (U.S.C. 2034) is amended--
            (1) in subsections (c), (d), (e)(1), and (f)(1) by striking 
        ``subsection (b)'' each place it appears and inserting 
        ``subsection (g)'';
            (2) by striking subsection (b);
            (3) by redesignating subsections (c) through (g) as 
        subsections (b) through (f), respectively; and
            (4) by inserting after subsection (f) the following:
    ``(g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to make grants available to assist 
eligible private nonprofit entities to establish and carry out 
community food projects $30,000,000 for each of the fiscal years 2008 
through 2012.''.
    (b) Preferences for Certain Projects.--Subsection (c) of section 25 
of the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by 
subsection (a) of this section, 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 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 Fund Requirements.--Subsection (d)(1) of section 25 of 
the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by 
subsection (a) of this section, is amended by striking ``50'' and 
inserting ``75''.
    (d) Term of Grant.--Subsection (e)(2) of section 25 of the Food 
Stamp Act of 1977 (7 U.S.C. 2034(e)(2)), as so redesignated by 
subsection (a) of this section, is amended by striking ``3'' and 
inserting ``5''.
    (e) Funding for Innovative Programs.--Subsection (h)(4) of section 
25 of the Food Stamp Act of 1977 (7 U.S.C. 2034), as so redesignated by 
subsection (a) of this section, is amended--
            (1) by striking ``fiscal years 2003 though 2007'' and 
        inserting ``fiscal years 2008 through 2012''; and
            (2) by striking ``200,000'' and inserting ``$500,000''.

SEC. 4028. EMERGENCY FOOD ASSISTANCE PROGRAM.

    Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is 
amended by--
            (1) by striking ``(a) Purchase of Commodities'' and all 
        that follows through 2007' and inserting the following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--As provided in paragraph (2), for each 
        of the fiscal years 2008 through 2012'';
            (2) by striking ``$140,000,000 of''; and
            (3) by adding at the end the following:
            ``(2) Amounts.--The following amounts are made available to 
        carry out this subsection:
                    ``(A) for fiscal year 2008, $250,000,000; and
                    ``(B) for each of the fiscal years 2009 through 
                2012, the dollar amount of commodities specified in 
                subparagraph (A) 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.''.

                   Subtitle B--Commodity Distribution

SEC. 4201. AUTHORIZATION OF APPROPRIATIONS.

    Section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 
U.S.C. 7508(a)(1)) is amended by striking ``$60,000,000 for each of the 
fiscal years 2003 through 2007'' and inserting `` $100,000,000 for each 
of the fiscal years 2008 through 2012''.

SEC. 4202. DISTRIBUTION OF SURPLUS COMMODITIES; SPECIAL NUTRITION 
              PROJECTS.

    Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(a)(2)(A)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 4203. COMMODITY DISTRIBUTION PROGRAM.

    (a) Commodity Distribution Program.--Section 4 of the Agriculture 
and Consumer Protection Act of 1973 (7 U.S.C. 612c note) is amended by 
striking ``2007'' and inserting ``2012''.
    (b) Commodity Supplemental Food Program.--Section 5 of the 
Agriculture and Consumer Protection Act (7 U.S.C. 612c note) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by striking ``fiscal years 
                2003 through 2007'' and inserting ``for fiscal year 
                2008 and each fiscal year thereafter''; and
                    (B) in paragraph (2)(B)--
                            (i) in the heading by striking in ``2007'' 
                        and inserting ``2012''; and
                            (ii) by striking ``2007'' and inserting 
                        ``2012'';
            (2) in subsection (d)(2) by inserting ``, and for each 
        fiscal year thereafter,'' after ``2007'';
            (3) by amending subsection (g) to read as follows:
    ``(g) Use of Resources.--Each local agency shall use funds made 
available to the agency to provide assistance under the program to low-
income elderly individuals, women, infants, and children in need for 
food assistance in accordance with such regulations as the Secretary 
may prescribe.'';
            (4) in paragraphs (2) and (3) of subsection (h) by 
        inserting ``elderly individuals,'' before ``pregnant''; and
            (5) by adding at the end the following:
    ``(m) Income Eligibility Standards.--The Secretary shall establish 
maximum income eligibility standards to be used in conjunction with 
such other risk criteria as may be appropriate in determining 
eligibility for the program. Such income standards shall be the same 
for all pregnant, postpartum, and breastfeeding women, for infants, for 
children, and for elderly individuals qualifying for the program, and 
shall not exceed the maximum income limit prescribed under section 
17(d)(2)(A)(i) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(d)(2)(A)(i)).''.

            Subtitle C--Child Nutrition and Related Programs

SEC. 4301. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO 
              SCHOOLS AND SERVICE INSTITUTIONS.

    Section 10603 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 612c-4) is amended by striking subsection (b) and inserting 
the following new subsection:
    ``(b) Purchase of Fresh Fruits and Vegetables for Distribution to 
Schools and Service Institutions.--
            ``(1) Purchase authority.--The Secretary of Agriculture 
        shall purchase 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)), using, of the amount specified in subsection 
        (a)--
                    ``(A) not less than $50,000,000 for each of fiscal 
                years 2008 and 2009; and
                    ``(B) not less than $75,000,000 for each of fiscal 
                years 2010 through 2012.
            ``(2) Servicing agency.--The Secretary of Agriculture may 
        provide for the Secretary of Defense to serve as the servicing 
        agency for the procurement of the fresh fruits and vegetables 
        under this subsection on the same terms and conditions as 
        provided in the memorandum of agreement entered into between 
        the Agricultural Marketing Service, the Food and Consumer 
        Service, and the Defense Personnel Support Center during August 
        1995 (or any successor memorandum of agreement).''.

SEC. 4302. BUY AMERICAN REQUIREMENTS.

    (a) Findings.--The Congress finds the following:
            (1) Federal law requires that commodities and products 
        purchased with Federal funds be, to the extent practicable, of 
        domestic origin.
            (2) Federal Buy American statutory requirements seek to 
        ensure that purchases made with Federal funds benefit domestic 
        producers.
            (3) The Richard B. Russell National School Lunch Act 
        requires the use of domestic food products for all meals served 
        under the program, including foods products purchased with 
        local funds.
    (b) Buy American Statutory Requirements.--The Department of 
Agriculture should undertake training, guidance, and enforcement of the 
various current Buy American statutory requirements and regulations, 
including those of the National School Lunch Act and the DOD Fresh 
program.

SEC. 4303. 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) in paragraph (1) by amending subparagraphs (A) 
                and (B) to read as follows:
                    ``(A) 35 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)--
                    (A) in the matter preceding clause (i) by striking 
                ``paragraph (1)(B)'' and inserting ``paragraph (1)'';
                    (B) in clause (iii) by striking ``and'' at the end;
                    (C) in clause (iv) by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
                            ``(v) encourage plans for implementation 
                        that include locally grown foods, where 
                        geographically available, in accordance with 
                        section 9(j).''.
            (3) in paragraph (5) in each of subparagraphs (A) and (B), 
        by striking ``2008'' and inserting ``2012''; 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 ``$70,000,000''; and
                    (B) by adding at the end the following:
                            ``(iii) Administrative expenses.--For 
                        fiscal year 2009 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 2009 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. 4304. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9(j) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1758(j)) is amended to read as follows:
    ``(j) Purchases of Locally Produced Foods.--The Secretary shall--
            ``(1) encourage institutions receiving funds under this Act 
        and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) to 
        purchase locally produced foods, to the maximum extent 
        practicable and appropriate;
            ``(2) advise institutions participating in a program 
        described in paragraph (1) of the policy described in that 
        paragraph and post information concerning the policy on the 
        website maintained by the Secretary; and
            ``(3) allow institutions receiving funds under this Act and 
        the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), 
        including the Department of Defense Fresh Fruit and Vegetable 
        Program, to use a geographic preference for the procurement of 
        locally produced foods.''.

                       Subtitle D--Miscellaneous

SEC. 4401. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Authorization.--
            ``(1) The Secretary of Agriculture shall use $15,000,000 
        for each of fiscal years 2008 through 2012 of the funds 
        available to the Commodity Credit Corporation to carry out and 
        expand the seniors farmers' market nutrition program.
            ``(2) There are authorized to be appropriated $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 $75,000,000 for fiscal year 2012 to carry out and 
        expand the seniors farmers' market nutrition program.'';
            (2) in subsection (b)(1) by inserting ``honey,'' after 
        ``vegetables,'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Exclusion of Benefits in Determining Eligibility for Other 
Programs.--The value of any benefit provided to any eligible seniors 
farmers' market nutrition program recipient under this section shall 
not be considered to be income or resources for any purposes under any 
Federal, State, or local law.''; and
            (4) by adding at the end the following:
    ``(d) Prohibition on Collection of Sales Tax.--The State shall 
ensure that no State or local taxes are collected within the State on 
purchases of food with coupons distributed under the seniors farmers' 
market nutrition program.
    ``(e) Regulations.--The Secretary may issue such regulations as the 
Secretary considers necessary to carry out the seniors farmers' market 
nutrition program.''.

SEC. 4402. CONGRESSIONAL HUNGER CENTER.

    Section 4404 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1621 note) is amended to read as follows:

``SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS AND MICKEY LELAND 
              INTERNATIONAL HUNGER FELLOWS.

    ``(a) Short Title.--This section may be cited as the `Bill Emerson 
National Hunger Fellows and Mickey Leland International Hunger Fellows 
Program Act of 2007'.
    ``(b) Findings.--The Congress finds as follows:
            ``(1) There is a critical need for compassionate 
        individuals who are committed to assisting people who suffer 
        from hunger to initiate and administer solutions to the hunger 
        problem.
            ``(2) Bill Emerson, the distinguished late Representative 
        from the 8th District of Missouri, demonstrated his commitment 
        to solving the problem of hunger in a bipartisan manner, his 
        commitment to public service, and his great affection for the 
        institution and ideals of the Congress of the United States.
            ``(3) George T. (Mickey) Leland, the distinguished late 
        Representative from the 18th District of Texas, demonstrated 
        his compassion for those in need, his high regard for public 
        service, and his lively exercise of political talents.
            ``(4) The special concern that Mr. Emerson and Mr. Leland 
        demonstrated during their lives for the hungry and poor was an 
        inspiration for others to work toward the goals of equality and 
        justice for all.
            ``(5) These two outstanding leaders maintained a special 
        bond of friendship regardless of political affiliation and 
        worked together to encourage future leaders to recognize and 
        provide service to others, and therefore it is especially 
        appropriate to honor the memory of Mr. Emerson and Mr. Leland 
        by creating a fellowship program to develop and train the 
        future leaders of the United States to pursue careers in 
        humanitarian service.
    ``(c) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means--
                    ``(A) if the Secretary of Agriculture enters into a 
                contract described in subsection (d)(3), the head of 
                the Congressional Hunger Center; or
                    ``(B) if the Secretary does not enter into such a 
                contract, the Secretary.
            ``(2) Fellow.--The term `fellow' means--
                    ``(A) a Bill Emerson Hunger Fellow; or
                    ``(B) a Mickey Leland Hunger Fellow
            ``(3) Fellowship programs.--The term `Fellowship Programs' 
        means the Bill Emerson National Hunger Fellowship Program and 
        the Mickey Leland International Hunger Fellowship Program 
        established by subsection (d).
    ``(d) Fellowship Program.--There is established in the Department 
of Agriculture the Bill Emerson National Hunger Fellowship Program and 
the Mickey Leland International Hunger Fellowship Program.
            ``(1) Purposes.--The purposes of the Fellowship Programs 
        are--
                    ``(A) to encourage future leaders of the United 
                States to pursue careers in humanitarian and public 
                service, to recognize the needs of low-income people 
                and hungry people, and to provide assistance to people 
                in need; and
                    ``(B) to seek public policy solutions to the 
                challenges of hunger and poverty, to provide training 
                and development opportunities for such leaders through 
                placement in programs operated by appropriate 
                organizations or entities.
            ``(2) Focus of programs.--
                    ``(A) Focus of bill emerson hunger fellowship 
                program.--The Bill Emerson Hunger Fellowship Program 
                shall address hunger and poverty in the United States.
                    ``(B) Focus of mickey leland hunger fellowship 
                program.--The Mickey Leland Hunger Fellowship Program 
                shall address international hunger and other 
                humanitarian needs.
            ``(3) Administration.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall offer to enter into a contract with the 
                Congressional Hunger Center to administer the 
                Fellowship Programs.
                    ``(B) Requirement.--As a condition of a contract 
                described in subparagraph (A), the Congressional Hunger 
                Center shall agree to submit to Congress each year the 
                results of an independent financial audit that 
                demonstrates that the Congressional Hunger Center uses 
                accounting procedures that conform to generally 
                accepted accounting principles and auditing procedures 
                that conform to chapter 75 of title 31, United States 
                Code (commonly known as the `Single Audit Act of 
                1984').
    ``(e) Fellowships.--
            ``(1) In general.--The Administrator shall make available 
        Bill Emerson Hunger Fellowships and Mickey Leland Hunger 
        Fellowships in accordance with this subsection.
            ``(2) Curriculum.--
                    ``(A) In general.--The fellowship programs shall 
                provide experience and training to develop the skills 
                necessary to train fellows to carry out the purposes 
                described in subsection (d)(1), including--
                            ``(i) training in direct service programs 
                        for the hungry and other anti-hunger programs 
                        in conjunction with community-based 
                        organizations through a program of field 
                        placement; and
                            ``(ii) providing experience in policy 
                        development through placement in a governmental 
                        entity or nongovernmental, nonprofit, or 
                        private sector organization.
                    ``(B) Work plan.--To carry out subparagraph (A) and 
                assist in the evaluation of the fellowships under 
                paragraph (6), the Administrator shall, for each 
                fellow, approve a work plan that identifies the target 
                objectives for the fellow in the fellowship, including 
                specific duties and responsibilities relating to those 
                objectives.
            ``(3) Period of fellowship.--
                    ``(A) Emerson fellow.--A Bill Emerson Hunger 
                Fellowship awarded under this subsection shall be for 
                not more than 15 months.
                    ``(B) Leland fellow.--A Mickey Leland Hunger 
                Fellowship awarded under this subsection shall be for 
                not more than 2 years.
            ``(4) Selection of fellows.--
                    ``(A) In general.--Fellowships shall be awarded 
                pursuant to a nationwide competition established by the 
                Administrator.
                    ``(B) Qualifications.--A successful program 
                applicant shall be an individual who has demonstrated--
                            ``(i) an intent to pursue a career in 
                        humanitarian service and outstanding potential 
                        for such a career;
                            ``(ii) leadership potential or actual 
                        leadership experience;
                            ``(iii) diverse life experience;
                            ``(iv) proficient writing and speaking 
                        skills;
                            ``(v) an ability to live in poor or diverse 
                        communities; and
                            ``(vi) such other attributes as are 
                        considered to be appropriate by the 
                        Administrator.
            ``(5) Amount of award.--
                    ``(A) In general.--A fellow shall receive a living 
                allowance during the term of the Fellowship and, 
                subject to subparagraph (B), an end-of-service award.
                    ``(B) Requirement for successful completion of 
                fellowship.--Each fellow shall be entitled to receive 
                an end-of-service award at an appropriate rate for each 
                month of satisfactory service completed, as determined 
                by the Administrator.
                    ``(C) Terms of fellowship.--A fellow shall not be 
                considered an employee of--
                            ``(i) the Department of Agriculture;
                            ``(ii) the Congressional Hunger Center; or
                            ``(iii) a host agency in the field or 
                        policy placement of the fellow.
                    ``(D) Recognition of fellowship award.--
                            ``(i) Emerson fellow.--An individual 
                        awarded a fellowship from the Bill Emerson 
                        Hunger Fellowship shall be known as an `Emerson 
                        Fellow'.
                            ``(ii) Leland fellow.--An individual 
                        awarded a fellowship from the Mickey Leland 
                        Hunger Fellowship shall be known as a `Leland 
                        Fellow'.
            ``(6) Evaluation.--The Administrator shall conduct periodic 
        evaluations of the Fellowship Programs.
    ``(f) Authority.--
            ``(1) In general.--Subject to paragraph (2), in carrying 
        out this section, the Administrator may solicit, accept, use, 
        and dispose of gifts, bequests, or devises of services or 
        property, both real and personal, for the purpose of 
        facilitating the work of the Fellowship Programs.
            ``(2) Limitation.--Gifts, bequests, or devises of money and 
        proceeds from sales of other property received as gifts, 
        bequests, or devises shall be used exclusively for the purposes 
        of the Fellowship Programs.
    ``(g) Report.--Each year, the Administrator shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that describes the activities and expenditures of the Fellowship 
Programs during the preceding fiscal year.
    ``(h) Funding.--There is authorized to be appropriated to the 
Secretary to carry out this section $3,000,000 for each of the fiscal 
years 2008 through 2012.''.

SEC. 4403. JOINT NUTRITION MONITORING AND RELATED RESEARCH ACTIVITIES.

    Subtitle D of title IV of the Farm Security and Rural Investment 
Act of 2002 (Public Law 107-171; 116 Stat. 333) is amended--
            (1) by redesignating section 4405 (2 U.S.C. 1161 note; 
        Public Law 107-171) as section 4406; and
            (2) by inserting after section 4404 the following:

``SEC. 4405. JOINT NUTRITION MONITORING AND RELATED RESEARCH 
              ACTIVITIES.

    ``The Secretary of Agriculture and the Secretary of Health and 
Human Services shall continue to provide jointly for national nutrition 
monitoring and related research activities carried out as of the date 
of enactment of this section--
            ``(1) to collect continuous dietary, health, physical 
        activity, and diet and health knowledge data on a nationally 
        representative sample;
            ``(2) to periodically collect data on special at-risk 
        populations, as identified by the Secretaries;
            ``(3) to distribute information on health, nutrition, the 
        environment, and physical activity to the public in a timely 
        fashion;
            ``(4) to analyze new data that becomes available;
            ``(5) to continuously update food composition tables; and
            ``(6) to research and develop data collection methods and 
        standards.''.

SEC. 4404 SENSE OF THE CONGRESS.

    It is the sense of the Congress that food items provided pursuant 
to the Federal school breakfast and school lunch program should be 
selected so as to reduce the incidence of juvenile obesity and to 
maximize nutritional value.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Conservation loan guarantee program.
Sec. 5002. Limitations on amount of ownership loans.
Sec. 5003. Down payment loan program.
Sec. 5004. Beginning farmer and rancher contract land sales program.
Sec. 5005. Loans to purchasers of highly fractioned lands.
                      Subtitle B--Operating Loans

Sec. 5011. Limitations on amount of operating loans.
Sec. 5012. Suspension of limitation on period for which borrowers are 
                            eligible for guaranteed assistance.
                 Subtitle C--Administrative Provisions

Sec. 5021. Inventory sales preferences.
Sec. 5022. Loan fund set-asides.
Sec. 5023. Transition to private commercial or other sources of credit.
Sec. 5024. Extension of the right of first refusal to reacquire 
                            homestead property to immediate family 
                            members of borrower-owner.
Sec. 5025. Rural development and farm loan program activities.
                        Subtitle D--Farm Credit

Sec. 5031. Bank for cooperatives voting stock.
Sec. 5032. Rural utility loans.
Sec. 5033. Farm Credit System Insurance Corporation.
Sec. 5034. Risk-based capital levels.

                    Subtitle A--Farm Ownership Loans

SEC. 5001. CONSERVATION LOAN GUARANTEE PROGRAM.

    Section 304 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1924) is amended to read as follows:

``SEC. 304. 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) Priority.--In providing loan guarantees under this section, 
the Secretary shall give priority to--
            ``(1) qualified beginning farmers or ranchers;
            ``(2) socially disadvantaged farmers or ranchers (as 
        defined in section 355(e)(2));
            ``(3) owners or tenants who use the loans to covert to 
        sustainable or organic agricultural production systems; and
            ``(4) producers who use the loans to build conservation 
        structures or establish conservation practices to comply with 
        section 1212 of the Food Security Act of 1985.
    ``(c) 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 $1,000,000,000.
                    ``(C) Repayment period.--The loan repayment period 
                shall not exceed 10 years.
                    ``(D) 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 that address provisions of a 
        conservation plan of the borrower.
            ``(4) Conservation plan.--The term `conservation plan' 
        means a plan, approved by the Secretary, that, for a farming or 
        ranching operation, identifies the conservation activities that 
        will be addressed with guaranteed loan funds provided under 
        this section, including--
                    ``(A) the installation of conservation structures;
                    ``(B) the establishment of forest cover for 
                sustained yield timber management, erosion control, or 
                shelter belt purposes;
                    ``(C) the installation of water conservation 
                measures;
                    ``(D) the installation of waste management systems;
                    ``(E) the establishment or improvement of permanent 
                pasture;
                    ``(F) compliance with section 1212 of the Food 
                Security Act of 1985;
                    ``(G) other purposes consistent with the plan; and
                    ``(H) any other emerging or existing conservation 
                practices, techniques, or technologies approved by the 
                Secretary.
    ``(d) 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.
    ``(e) 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.
    ``(f) 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) Approval of application.--The Secretary shall not 
        approve an application submitted pursuant to this section, 
        unless the Secretary 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.
            ``(3) 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.
    ``(g) 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.
    ``(h) Authorization of Appropriations.--For each of fiscal years 
2008 through 2012, there are authorized to be appropriated to the 
Secretary such funds as are necessary to carry out this section.''.

SEC. 5002. LIMITATIONS ON AMOUNT OF OWNERSHIP LOANS.

    Section 305 of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1925) is amended--
            (1) in subsection (a)(2), by striking ``$200,000'' and 
        inserting ``$300,000''; and
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively, and inserting after subsection (a) 
        the following:
    ``(b) Graduation Plan.--The Secretary shall establish a plan, in 
coordination with activities under sections 359, 360, 361, and 362, to 
encourage each borrower with an outstanding loan under this subtitle to 
graduate to private commercial or other sources of credit.''.

SEC. 5003. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1935) is amended--
            (1) in subsection (a)(1), by striking ``and ranchers'' and 
        inserting ``or ranchers and socially disadvantaged farmers or 
        ranchers'';
            (2) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following;
            ``(1) Principal.--Each loan made under this section shall 
        be in an amount that does not exceed 45 percent of the least 
        of--
                    ``(A) the purchase price of the farm or ranch to be 
                acquired;
                    ``(B) the appraised value of the farm or ranch to 
                be acquired; or
                    ``(C) $500,000.
            ``(2) Interest rate.--The interest rate on any loan made by 
        the Secretary under this section shall be a rate equal to the 
        greater of--
                    ``(A) the difference obtained by subtracting 4 
                percent from the interest rate for farm ownership loans 
                under this subtitle; or
                    ``(B) 1 percent.''; and
                    (B) in paragraph (3), by striking ``15'' and 
                inserting ``20'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``10'' and 
                inserting ``5'';
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2); and
                    (C) in paragraph (2)(B) (as so redesignated), by 
                striking ``15-year'' and inserting ``20-year''; and
            (4) in subsection (d)--
                    (A) in paragraph (3)--
                            (i) by inserting ``and socially 
                        disadvantaged farmers and ranchers (as defined 
                        in section 355(e)(2))'' after ``ranchers''; and
                            (ii) by striking ``and'' at the end;
                    (B) in paragraph (4), by striking ``ranchers.'' and 
                inserting ``ranchers and socially disadvantaged farmers 
                and ranchers (as defined in section 355(e)(2)); and''; 
                and
                    (C) by adding at the end the following:
            ``(5) establish annual performance goals to promote the use 
        of the down payment loan program and other joint financing 
        participation loans as the preferred choice for direct real 
        estate loans made by any lender to a qualified beginning farmer 
        or rancher or socially disadvantaged farmer or rancher (as so 
        defined).''.

SEC. 5004. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    Section 310F of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1936) is amended to read as follows:

``SEC. 310F. BEGINNING FARMER AND RANCHER AND SOCIALLY DISADVANTAGED 
              FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--The Secretary shall, in accordance with this 
section, guarantee a loan made by a private seller of a farm or ranch 
to a qualified beginning farmer or rancher or socially disadvantaged 
farmer or rancher (as defined in section 355(e)(2)) on a contract land 
sales basis.
    ``(b) Eligibility.--In order to be eligible for a loan guarantee 
under subsection (a)--
            ``(1) the qualified beginning farmer or rancher or socially 
        disadvantaged farmer or rancher shall--
                    ``(A) on the date the contract land sale that is 
                subject of the loan is complete, own or operate the 
                farm or ranch that is the subject of the contract land 
                sale;
                    ``(B) have a credit history that--
                            ``(i) includes a record of satisfactory 
                        debt repayment, as determined by the Secretary; 
                        and
                            ``(ii) is acceptable to the Secretary; and
                    ``(C) demonstrate to the Secretary that the farmer 
                or rancher, as the case may be, is unable to obtain 
                sufficient credit without a guarantee to finance any 
                actual need of the farmer or rancher, as the case may 
                be, at a reasonable rate or term;
            ``(2) the loan shall meet applicable underwriting criteria, 
        as determined by the Secretary; and
            ``(3) to carry out the loan--
                    ``(A) a commercial lending institution shall agree 
                to serve as an escrow agent; or
                    ``(B) the private seller, in cooperation with the 
                farmer or rancher, shall use an appropriate alternate 
                arrangement, as determined by the Secretary.
    ``(c) Limitations.--
            ``(1) Down payment.--The Secretary shall not provide a loan 
        guarantee under subsection (a) if the contribution of the 
        qualified beginning farmer or rancher or socially disadvantaged 
        farmer or rancher to the down payment for the farm or ranch 
        that is the subject of the contract land sale would be less 
        than 5 percent of the purchase price of the farm or ranch.
            ``(2) Maximum purchase price.--The Secretary shall not 
        provide a loan guarantee under subsection (a) if the purchase 
        price or the appraisal value of the farm or ranch that is the 
        subject of the contract land sale is greater than $500,000.
    ``(d) Period of Guarantee.--The period during which a loan 
guarantee under this section is in effect shall be the 10-year period 
beginning with the date the guarantee is provided.
    ``(e) Guarantee Plan.--A private seller of a farm or ranch who 
makes a loan that is guaranteed by the Secretary under subsection (a) 
may select--
            ``(1) a prompt payment guarantee plan, which shall cover--
                    ``(A) 3 amortized annual installments; or
                    ``(B) an amount equal to 3 annual installments 
                (including an amount equal to the total cost of any tax 
                and insurance incurred during the period covered by the 
                annual installments); or
            ``(2) a standard guarantee plan, which shall cover an 
        amount equal to 90 percent of the outstanding principal of the 
        loan.''.

SEC. 5005. LOANS TO PURCHASERS OF HIGHLY FRACTIONED LANDS.

    Section 1 of Public Law 91-229 (25 U.S.C. 488) is amended by adding 
at the end the following: ``The Secretary of Agriculture may make and 
insure loans as provided in section 309 of the Consolidated Farm and 
Rural Development Act to eligible purchasers of highly fractionated 
land pursuant to section 204(c) of the Indian Land Consolidation Act. 
Section 4 of this Act shall not apply to trust or restricted tribal or 
tribal corporation property mortgaged pursuant to the preceding 
sentence.''.

                      Subtitle B--Operating Loans

SEC. 5011. LIMITATIONS ON AMOUNT OF OPERATING LOANS.

    Section 313(a)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1943(a)(1)) is amended by striking ``$200,000'' and 
inserting ``$300,000''.

SEC. 5012. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
              ELIGIBLE FOR GUARANTEED ASSISTANCE.

    Section 5102 of the Farm Security And Rural Investment Act of 2002 
(7 U.S.C. 1949 note; Public Law 107-171) is amended by striking 
``September 30, 2007'' and inserting ``January 1, 2008''.

                 Subtitle C--Administrative Provisions

SEC. 5021. INVENTORY SALES PREFERENCES.

    Section 335(c) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1985(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in the subparagraph heading, by 
                        inserting ``; socially disadvantaged farmer or 
                        rancher'' after ``or rancher'';
                            (ii) in clause (i), by inserting ``or a 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
                            (iii) by redesignating clauses (ii) through 
                        (iv) as clauses (iii) through (v), 
                        respectively;
                            (iv) by inserting after clause (i) the 
                        following:
                            ``(ii) Priority to be given to socially 
                        disadvantaged farmers and ranchers.--In 
                        carrying out this subparagraph, the Secretary 
                        shall give priority to socially disadvantaged 
                        farmers and ranchers.'';
                            (v) in clause (iii) (as so redesignated)--
                                    (I) by inserting ``or socially 
                                disadvantaged farmer or rancher'' after 
                                ``or rancher''; and
                                    (II) by inserting ``, subject to 
                                clause (ii)'' before the period;
                            (vi) in clause (iv) (as so redesignated), 
                        by inserting ``or a socially disadvantaged 
                        farmer or rancher'' after ``or rancher''; and
                            (vii) in clause (v) (as so redesignated), 
                        by inserting ``and socially disadvantaged 
                        farmers and ranchers'' after ``and ranchers''; 
                        and
                    (B) in subparagraph (C), by inserting ``or a 
                socially disadvantaged farmer or rancher'' after ``or 
                rancher'';
            (2) in paragraph (5)(B)--
                    (A) in clause (i)--
                            (i) in the clause heading, by inserting ``; 
                        socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
                            (ii) by inserting ``or a socially 
                        disadvantaged farmer or rancher'' after ``a 
                        beginning farmer or rancher''; and
                            (iii) by inserting ``or the socially 
                        disadvantaged farmer or rancher'' after ``the 
                        beginning farmer or rancher'';
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (iii) and (iv), respectively;
                    (C) by inserting after clause (i) the following:
                            ``(ii) Priority to be given to socially 
                        disadvantaged farmers and ranchers.--In 
                        carrying out clause (i), the Secretary shall 
                        give priority to socially disadvantaged farmers 
                        and ranchers.''; and
                    (D) in clause (iii) (as so redesignated)--
                            (i) in the matter preceding subclause (I), 
                        by inserting ``or a socially disadvantaged 
                        farmer or rancher'' after ``or rancher''; and
                            (ii) in subclause (II), by inserting ``or 
                        the socially disadvantaged farmer or rancher'' 
                        after ``or rancher'';
            (3) in paragraph (6)--
                    (A) in subparagraph (A), by inserting ``or a 
                socially disadvantaged farmer or rancher'' after ``or 
                rancher''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i)(I), by inserting ``and 
                        socially disadvantaged farmers and ranchers'' 
                        after ``and ranchers''; and
                            (ii) in clause (ii), by inserting ``or 
                        socially disadvantaged farmers or ranchers'' 
                        after ``or ranchers''; and
            (4) by adding at the end the following:
            ``(7) In this subsection, the term `socially disadvantaged 
        farmer or rancher' has the meaning given in section 
        355(e)(2).''.

SEC. 5022. LOAN FUND SET-ASIDES.

    Section 346(b)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994(b)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i)--
                            (i) in subclause (I), by striking ``70 
                        percent'' and inserting ``not less than 75 
                        percent of the total amount made available 
                        under paragraph (1)''; and
                            (ii) in subclause (II)--
                                    (I) in the subclause heading, by 
                                inserting ``; participation loans'' 
                                after ``payment loans'';
                                    (II) by striking ``60 percent'' and 
                                inserting ``not less than \2/3\ of the 
                                amount reserved under subclause (I)''; 
                                and
                                    (III) by inserting ``and 
                                participation loans'' after ``section 
                                310E''; and
                    (B) in clause (ii)(III), by striking ``2003 through 
                2007, 35 percent'' and inserting ``2008 through 2012, 
                not less than 50 percent of the total amount made 
                available under paragraph (1)''; and
            (2) in subparagraph (B)(i), by striking ``25 percent'' and 
        inserting ``not less than 40 percent of the total amount made 
        available under paragraph (1)''.

SEC. 5023. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF CREDIT.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r) is amended by inserting after section 344 the 
following:

``SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR OTHER SOURCES OF 
              CREDIT.

    ``(a) In General.--In making or insuring a farm loan under subtitle 
A or B, the Secretary shall establish a plan and promulgate regulations 
(including performance criteria) that promote the goal of transitioning 
borrowers to private commercial credit and other sources of credit in 
the shortest practicable period of time.
    ``(b) Coordination.--In carrying out this section, the Secretary 
shall integrate and coordinate the transition policy described in 
subsection (a) with--
            ``(1) the borrower training program established by section 
        359;
            ``(2) the loan assessment process established by section 
        360;
            ``(3) the supervised credit requirement established by 
        section 361;
            ``(4) the market placement program established by section 
        362; and
            ``(5) other appropriate programs and authorities, as 
        determined by the Secretary.''.

SEC. 5024. EXTENSION OF THE RIGHT OF FIRST REFUSAL TO REACQUIRE 
              HOMESTEAD PROPERTY TO IMMEDIATE FAMILY MEMBERS OF 
              BORROWER-OWNER.

    Section 352(c)(4)(B) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2000(c)(4)(B)) is amended--
            (1) in the 1st sentence, by striking ``, the borrower-
        owner'' inserting ``of a borrower-owner who is a socially 
        disadvantaged farmer or rancher (as defined in section 
        355(e)(2)), the borrower-owner or a member of the immediate 
        family of the borrower-owner''; and
            (2) in the 2nd sentence, by inserting ``or immediate family 
        member, as the case may be,'' before ``from''.

SEC. 5025. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r) is amended by inserting after section 364 the 
following:

``SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PROGRAM ACTIVITIES.

    ``The Secretary may not complete a study of, or enter into a 
contract with a private party to carry out, without specific 
authorization in a subsequent Act of Congress, a competitive sourcing 
activity of the Secretary, including support personnel of the 
Department of Agriculture, relating to rural development or farm loan 
programs.''.

                        Subtitle D--Farm Credit

SEC. 5031. BANK FOR COOPERATIVES VOTING STOCK.

    (a) In General.--Section 3.3(c) of the Farm Credit Act of 1971 (12 
U.S.C. 2124(c)) is amended by striking ``and (ii)'' and inserting 
``(ii) other categories of persons and entities described in sections 
3.7 and 3.8 eligible to borrow from the bank, as determined by the 
bank's board of directors; and (iii)''.
    (b) Conforming Amendments.--Section 4.3A(c)(1)(D) of such Act (12 
U.S.C. 2154a(c)(1)(D)) is amended by redesignating clauses (ii) and 
(iii) as clauses (iii) and (iv), respectively, and inserting after 
clause (i) the following:
                            ``(ii) persons and entities eligible to 
                        borrow from the banks for cooperatives, as 
                        described in section 3.3(c)(ii);''.

SEC. 5032. RURAL UTILITY LOANS.

    Section 8.0(9) of the Farm Credit Act of 1971 (12 U.S.C. 2279aa(9)) 
is amended--
            (1) by striking ``or'' at the end of subparagraph (A)(iii);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(C) that is a loan or interest in a loan for 
                electric or telephone facilities by a cooperative 
                lender to a borrower who has received or is eligible to 
                receive a loan under the Rural Electrification Act (7 
                U.S.C. 901 et seq.), except that--
                            ``(i) subsections (c) and (d) of section 
                        8.6, and sections 8.8 and 8.9 shall not apply 
                        to the loan or interest in the loan or to an 
                        obligation backed by a pool of obligations 
                        relating to the loan or interest in the loan; 
                        and
                            ``(ii) the loan or interest in the loan 
                        shall be considered to meet all standards for 
                        qualified loans for all purposes under this 
                        Act, subject to reasonable underwriting, 
                        security appraisal, and repayment standards 
                        established by the Corporation.''.

SEC. 5033. FARM CREDIT SYSTEM INSURANCE CORPORATION.

    (a) Authority To Pass Along Cost of Insurance Premiums.--Section 
1.12(b) of the Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended 
by striking the last sentence and inserting ``The assessment on any 
such association or other financing institution for any period shall be 
computed in an equitable manner.''.
    (b) Premiums; Amount in Fund Not Exceeding Secure Base Amount.--
Section 5.55(a) of such Act (12 U.S.C. 2277a-4(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(2), the annual'' and inserting ``(3), 
                the'';
                    (B) by striking subparagraphs (A) through (D) and 
                inserting the following:
                    ``(A) the average outstanding insured obligations 
                issued by the bank for the calendar year, after 
                deducting therefrom the percentages of the guaranteed 
                portions of loans and investments described in 
                paragraph (2), multiplied by 0.0020;
                    ``(B) the average principal outstanding for the 
                calendar year on loans made by the bank that are in 
                nonaccrual status, multiplied by 0.0010; and
                    ``(C) the average amount outstanding for the 
                calendar year of other-than-temporarily impaired 
                investments made by the bank, multiplied by 0.0010.'';
            (2) in paragraph (2), by striking ``annual'';
            (3) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``As used'' and all that follows through 
        ``that'' and inserting ``As used in this section, the term 
        `government-guaranteed' when applied to loans or investments, 
        means loans, credits, or investments, or portions of loans, 
        credits, or investments, that''; and
            (4) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively, and inserting after paragraph (1) 
        the following:
            ``(2) Deductions from average outstanding insured 
        obligations.--The average outstanding insured obligations 
        issued by the bank for the calendar year referred to in 
        subsection (a)(1)(A) of this section shall be reduced by 
        deducting therefrom the sum of--
                    ``(A) 90 percent of the sum of--
                            ``(i) the average principal outstanding for 
                        such calendar year on the guaranteed portions 
                        of Federal government-guaranteed loans made by 
                        the bank that are in accrual status; and
                            ``(ii) the average amount outstanding for 
                        the calendar year of the guaranteed portions of 
                        Federal government-guaranteed investments made 
                        by the bank that are not permanently impaired, 
                        as determined by the Corporation; and
                    ``(B) 80 percent of the sum of--
                            ``(i) the average principal outstanding for 
                        the calendar year on the guaranteed portions of 
                        State government-guaranteed loans made by the 
                        bank that are in accrual status; and
                            ``(ii) the average amount outstanding for 
                        the calendar year of the guaranteed portions of 
                        State government-guaranteed investments made by 
                        the bank that are not permanently impaired, as 
                        determined by the Corporation.''.
    (c) Premiums; Amount in Fund Exceeding Secure Base Amount.--Section 
5.55(b) of such Act (12 U.S.C. 2277a-4(b)) is amended by striking 
``annual''.
    (d) Secure Base Amount.--Section 5.55(c) of such Act (12 U.S.C. 
2277a-4(c)) is amended by striking the parenthetical phrase and 
inserting ``(adjusted downward to exclude an amount equal to the sum 
of: (1) 90 percent of: (A) the guaranteed portions of principal 
outstanding on Federal government-guaranteed loans in accrual status 
made by the banks; and (B) the guaranteed portions of the amount of 
Federal government-guaranteed investments made by the banks that are 
not permanently impaired; and (2) 80 percent of: (A) the guaranteed 
portions of principal outstanding on State government-guaranteed loans 
in accrual status made by the banks; and (B) the guaranteed portions of 
the amount of State government-guaranteed investments made by the banks 
that are not permanently impaired, as determined by the Corporation)''.
    (e) Determination of Loan and Investment Amounts.--Section 5.55(d) 
of such Act (12 U.S.C. 2277a-4(d)) is amended--
            (1) in the subsection heading, by striking ``Principal 
        Outstanding'' and inserting ``Loan and Investment Amounts'';
            (2) in the matter preceding paragraph (1), by striking 
        ``For'' and all that follows through ``--'' and inserting ``For 
        the purpose of subsections (a) and (c) of this section, the 
        principal outstanding on all loans made by an insured System 
        bank or the amount outstanding on all investments made by an 
        insured System bank shall be determined based on all loans or 
        investments made--''; and
            (3) in each of paragraphs (1) and (2), by inserting ``or 
        investments'' before ``because''.
    (f) Allocation to System Institutions of Excess Reserves.--Section 
5.55(e) of such Act (12 U.S.C. 2277a-4(e)) is amended--
            (1) in paragraph (3), by striking ``the average secure base 
        amount for the calendar year (as calculated on an average daily 
        balance basis)'' and inserting ``the secure base amount'';
            (2) in paragraph (4), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) there shall be credited to the Allocated 
                Insurance Reserves Account of each insured System bank 
                an amount that bears the same ratio to the total amount 
                (less any amount credited under subparagraph (A) of 
                this paragraph) as the average principal outstanding 
                for the calendar year on insured obligations issued by 
                the bank (after deducting therefrom the percentages of 
                the guaranteed portions of loans and investments 
                described in subsection (a)(2) of this section), bears 
                to the average principal outstanding for the calendar 
                year on insured obligations issued by all insured 
                System banks (after deducting therefrom the percentages 
                of the guaranteed portions of loans and investments so 
                described).''; and
            (3) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``beginning'' and all that follows 
                        through ``2005'';
                            (ii) by striking clause (i) and inserting 
                        the following:
                            ``(i) subject to subparagraph (D), pay to 
                        each insured System bank, in a manner 
                        determined by the Corporation, an amount equal 
                        to the balance in its Allocated Insurance 
                        Reserves Account; and''; and
                            (iii) in clause (ii)--
                                    (I) by striking ``(C), (E), and 
                                (F)'' and inserting ``(C) and (E)''; 
                                and
                                    (II) by striking ``outstanding,'' 
                                and all that follows and inserting ``at 
                                the time of the termination of the 
                                Financial Assistance Corporation, of 
                                the balance in the Allocated Insurance 
                                Reserves Account established under 
                                subparagraph (1)(B).'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking ``(in 
                        addition to the amounts described in 
                        subparagraph (F)(ii))''; and
                            (ii) by striking clause (ii) and inserting 
                        the following:
                            ``(ii) Termination of account.--On 
                        disbursement of $56,000,000, the Corporation 
                        shall close the Account established under 
                        paragraph (1)(B) and transfer any remaining 
                        funds in the Account to the remaining Allocated 
                        Insurance Reserves Accounts in accordance with 
                        paragraph (4)(B) for the calendar year in which 
                        the transfer occurs.''; and
                    (C) by striking subparagraph (F).
    (g) Certification of Premiums.--
            (1) Filing certified statement.--Section 5.56(a) of such 
        Act (12 U.S.C. 2277a-5(a)) is amended to read as follows:
    ``(a) Filing Certified Statement.--On a date to be determined in 
the sole discretion of the Corporation's Board of Directors, each 
insured System bank that became insured before the beginning of the 
period for which premiums are being assessed (in this section referred 
to as the `period') shall file with the Corporation a certified 
statement showing--
            ``(1) the average outstanding insured obligations for the 
        period issued by the bank;
            ``(2) the average principal outstanding for the period on 
        the guaranteed portion of Federal government-guaranteed loans 
        that are in accrual status and the average amount outstanding 
        for the period of Federal government-guaranteed investments 
        that are not permanently impaired (as defined in section 
        5.55(a)(4));
            ``(3) the average principal outstanding for the period on 
        State government-guaranteed loans that are in accrual status 
        and the average amount outstanding for the period of State 
        government-guaranteed investments that are not permanently 
        impaired (as defined in section 5.55(a)(4));
            ``(4) the average principal outstanding for the period on 
        loans that are in nonaccrual status and the average amount 
        outstanding for the period of other-than-temporarily impaired 
        investments; and
            ``(5) the amount of the premium due the Corporation from 
        the bank for the period.''.
            (2) Premium payments.--Section 5.56(c) of such Act (12 
        U.S.C. 2277a-5(c)) is amended to read as follows:
    ``(c) Premium Payments.--Each insured System bank shall pay to the 
Corporation the premium payments required under subsection (a), not 
more frequently than once in each calendar quarter, in such manner and 
at such time or times as the Board of Directors shall prescribe, except 
that the amount of the premium shall be established not later than 60 
days after filing the certified statement setting forth the amount of 
the premium.''.
            (3) Conforming amendments.--Section 5.56 of such Act (12 
        U.S.C. 2277a-5) is amended by striking subsection (d) and 
        redesignating subsection (e) as subsection (d).
    (h) Rules and Regulations.--Section 5.58(10) of such Act (12 U.S.C. 
2277a-7(10)) is amended by inserting ``and section 1.12(b)'' after 
``part''.

SEC. 5034. RISK-BASED CAPITAL LEVELS.

    Section 8.32(a)(1) of the Farm Credit Act of 1971 (12 U.S.C. 
2279bb-1(a)(1)) is amended by striking all through ``a pool of'' and 
inserting the following:
            ``(1) Credit risk.--
                    ``(A) With respect to securities representing an 
                interest in, or obligations backed by, a pool of 
                qualified loans (as defined in section 8.0(9)(C)), 
                owned or guaranteed by the Corporation, losses occur at 
                a rate of default and severity reasonably related to 
                risks in electric and telephone facility loans, 
                respectively, as determined by the Director.
                    ``(B) With respect to securities representing an 
                interest in, or obligations backed by, a pool of 
                other''.

                      TITLE VI--RURAL DEVELOPMENT

Sec. 6001. Definition of rural.
Sec. 6002. Water, waste disposal, and wastewater facility grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Rural water and wastewater circuit rider program.
Sec. 6005. Tribal college and university essential community 
                            facilities.
Sec. 6006.  Emergency and imminent community water assistance grant 
                            program.
Sec. 6007. Water systems for rural and native villages in Alaska.
Sec. 6008. Grants to nonprofit organizations to finance the 
                            construction, refurbishing, and servicing 
                            of individually-owned household water well 
                            systems in rural areas for individuals with 
                            low or moderate incomes.
Sec. 6009. Rural cooperative development grants.
Sec. 6010. Criteria to be applied in  providing loans and loan 
                            guarantees under the business and industry 
                            loan program.
Sec. 6011. Appropriate technology transfer for rural areas program.
Sec. 6012. Grants to improve technical infrastructure and improve 
                            quality of rural health care facilities.
Sec. 6013. Rural entrepreneur and microenterprise assistance program.
Sec. 6014. Criteria to be applied in considering applications for rural 
                            development projects.
Sec. 6015. National sheep industry improvement center.
Sec. 6016. National rural development partnership.
Sec. 6017. Historic barn preservation.
Sec. 6018. Grants for NOAA weather radio transmitters.
Sec. 6019. Delta regional authority.
Sec. 6020. Northern great plains regional authority.
Sec. 6021. Rural strategic investment program.
Sec. 6022. Expansion of 911 access.
Sec. 6023. Access to broadband telecommunications services in rural 
                            areas.
Sec. 6024. Community connect grant program.
Sec. 6025. Agriculture innovation center demonstration program.
Sec. 6026. Rural firefighters and emergency medical service assistance 
                            program.
Sec. 6027. Value-added agricultural market development program.
Sec. 6028. Assistance for rural public television stations.
Sec. 6029. Telemedicine and distance learning services in rural areas.
Sec. 6030. Guarantees for bonds and notes issued for electrification or 
                            telephone purposes.
Sec. 6031. Comprehensive rural broadband strategy.
Sec. 6032. Study of railroad issues.

SEC. 6001. DEFINITION OF RURAL.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall prepare and submit to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that--
            (1) assesses the varying definitions of ``rural'' used by 
        the Department of Agriculture;
            (2) describes the effects those varying definitions have on 
        the programs administered by the Department of Agriculture; and
            (3) makes recommendations for ways to better target funds 
        provided through rural development programs.

SEC. 6002. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY GRANTS.

    Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking 
``2002 through 2007'' and inserting ``2008 through 2012''.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a)(22)(C) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(22)(C)) is amended by striking 
``$15,000,000 for fiscal year 2003'' and inserting ``$25,000,000 for 
fiscal year 2008''.

SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
              FACILITIES.

    Section 306(a)(25) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926(a)(25)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Federal share.--The Secretary shall establish 
                the maximum percentage of the cost of the facility that 
                may be covered by a grant under this paragraph, except 
                that the Secretary may not require non-Federal 
                financial support in an amount that is greater than 5 
                percent of the total cost.''; and
            (2) in subparagraph (C), by striking ``2003 through 2007'' 
        and inserting ``2008 through 2012''.

SEC. 6006. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
              PROGRAM.

    Section 306A(i)(2) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926a(i)(2)) is amended by striking ``2003 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 6007. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    Section 306D(d)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926d(d)(1)) is amended by striking ``2001 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 6008. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
              CONSTRUCTION, REFURBISHING, AND SERVICING OF 
              INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN RURAL 
              AREAS FOR INDIVIDUALS WITH LOW OR MODERATE INCOMES.

    (a) Authorization of Appropriations.--Section 306E(d) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1926e(d)) is 
amended by striking ``2003 through 2007'' and inserting ``2008 through 
2012''.
    (b) Additional Priority in Awarding Grants.--Section 306E(c) of 
such Act (7 U.S.C. 1926e(c)) is amended by inserting ``, and to an 
applicant that has substantial expertise and experience in promoting 
the safe and productive use of individually-owned household water well 
systems and ground water. The ability of an applicant to provide 
matching funds shall not be taken into account in determining any 
priority in awarding grants under this section. The payment by a 
grantee of audit fees, business insurance, salary, wages, employee 
benefits, printing costs, postage costs, and legal fees associated with 
providing the assistance described in paragraph (1) shall be considered 
the provision of matching funds by the grantee for purposes of this 
section'' before the period.

SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    (a) Eligibility.--Section 310B(e)(5) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932(e)(5)) is amended--
            (1) in subparagraph (A), by striking ``a nationally 
        coordinated, regionally or State-wide operated project'' and 
        inserting ``activities to promote and assist the development of 
        cooperatively and mutually owned businesses'';
            (2) in subparagraph (B), by inserting ``to promote and 
        assist the development of cooperatively and mutually owned 
        businesses'' before the semicolon;
            (3) by striking subparagraph (D) and redesignating 
        subparagraph (E) as subparagraph (D);
            (4) inserting after subparagraph (D) (as so redesignated):
                    ``(E) demonstrate a commitment to--
                            ``(i) networking with and sharing the 
                        results of its efforts with other cooperative 
                        development centers and other organizations 
                        involved in rural economic development efforts; 
                        and
                            ``(ii) developing multi-organization and 
                        multi-State approaches to addressing the 
                        cooperative and economic development needs of 
                        rural areas.''; and
            (5) in subparagraph (F), by striking ``greater than'' the 
        1st place it appears.
    (b) Authority to Award Multi-Year Grants.--Section 310(B)(e)(6) of 
such Act (7 U.S.C. 1932(e)(6)) is amended to read as follows:
            ``(6) Grants awarded to centers that have received no prior 
        funding under this subsection shall be made for a period of 1 
        year. The Secretary shall evaluate programs receiving 
        assistance under this subsection. The Secretary may award 
        grants for a period of more than 1 year, but not more than 3 
        years, to centers that have successfully met the criteria under 
        paragraph (5).''.
    (c) Authority to Extend Grant Period for 1 Year.--Section 310B(e) 
of such Act (7 U.S.C. 1932(e)) is amended by redesignating paragraphs 
(7) through (9) as paragraphs (8) through (10), respectively, and 
inserting after paragraph (6) the following:
            ``(7) The Secretary may extend for only 1 additional 12-
        month period the period in which a grantee may use a grant made 
        under this subsection.''.
    (d) Cooperative Research Program.--Section 310B(e) of such Act (7 
U.S.C. 1932(e)), as amended by subsection (c) of this section, is 
amended by redesignating paragraphs (9) and (10) as paragraphs (10) and 
(11), respectively, and inserting after paragraph (9) the following:
            ``(10) The Secretary shall enter into a cooperative 
        research agreement with 1 or more qualified academic 
        institutions in each fiscal year to conduct research on the 
        national economic effects of all types of cooperatives.''.
    (e) Addressing Needs of Minority Communities.--Section 310B(e) of 
such Act (7 U.S.C. 1932(e)), as amended by subsections (c) and (d) of 
this section, is amended by redesignating paragraph (11) as paragraph 
(12) and inserting after paragraph (10) the following:
            ``(11)(A) If the total amount appropriated under paragraph 
        (12) of this subsection for a fiscal year exceeds $7,500,000, 
        the Secretary shall reserve an amount equal to 20 percent of 
        the amount so appropriated for grants for cooperative 
        development centers, individual cooperatives, or groups of 
        cooperatives, serving socially disadvantaged (within the 
        meaning of section 355(e)) communities, a majority of the 
        boards of directors or governing boards of which are comprised 
        of socially disadvantaged (withing such meaning) individuals.
            ``(B) To the extent that the Secretary determines that 
        funds reserved under subparagraph (A) will not be used for 
        grants described in subparagraph (A) because of insufficient 
        applications for the grants, the Secretary shall use the funds 
        as otherwise authorized by this subsection.''.
    (f) Authorization of Appropriations.--Section 310B(e)(12) of such 
Act (7 U.S.C. 1932(e)(12)), as so redesignated by subsections (c) 
through (e) of this section, is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 6010. CRITERIA TO BE APPLIED IN  PROVIDING LOANS AND LOAN 
              GUARANTEES UNDER THE BUSINESS AND INDUSTRY LOAN PROGRAM.

    Section 310B(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(g)) is amended by adding at the end the following:
    ``(9)(A) In providing loans and loan guarantees under this section, 
the Secretary shall consider an application more favorably when 
compared to other applications to the extent that the project described 
in the application supports community development and farm and ranch 
income by marketing, distributing, storing, aggregating, or processing 
a locally or regionally produced agricultural product.
    ``(B) In subparagraph (A), the term `locally or regionally produced 
agricultural product' means an agricultural product--
            ``(I) which is produced and distributed in the locality or 
        region where the finished product is marketed;
            ``(ii) which has been shipped a total distance of 400 or 
        fewer miles, as determined by the Secretary; and
            ``(iii) about which the distributor has conveyed to the 
        end-use consumers information regarding the origin of the 
        product or production practices, or other valuable 
        information.''.

SEC. 6011. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS PROGRAM.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by adding at the end the following:
    ``(i) Appropriate Technology Transfer for Rural Areas Program.--
            ``(1) Definition of national nonprofit agricultural 
        assistance institution.--In this subsection, the term `national 
        nonprofit agricultural assistance institution' means an 
        organization that--
                    ``(A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under 501(a) of that Code;
                    ``(B) has staff and offices in multiple regions;
                    ``(C) operates national sustainable agriculture 
                technical assistance programs; and
                    ``(D) provides the technical assistance through 
                toll-free hotlines, a website, publications, and work 
                shops.
            ``(2) Establishment.--The Secretary shall establish a 
        national appropriate technology transfer for rural areas 
        program to assist agricultural producers that are seeking 
        information to help agricultural producers--
                    ``(A) reduce input costs;
                    ``(B) conserve energy resources;
                    ``(C) diversify operations through new energy crops 
                and energy generation facilities; and
                    ``(D) expand markets for the agricultural 
                commodities produced by the producers through use of 
                sustainable farming practices.
            ``(3) Implementation.--
                    ``(A) In general.--The Secretary shall carry out 
                the program under this subsection by making a grant to, 
                or offering to enter into a cooperative agreement with, 
                a national nonprofit agricultural assistance 
                organization.
                    ``(B) Cost share.--A grant made, or cooperative 
                agreement entered into, under subparagraph (A) shall 
                provide 100 percent of the cost of providing 
                information pursuant to paragraph (2).
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this subsection $5,000,000 for each fiscal year.''.

SEC. 6012. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND IMPROVE 
              QUALITY OF RURAL HEALTH CARE FACILITIES.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r), as amended by section 5025 of this Act, is amended 
by inserting after section 365 the following:

``SEC. 366. GRANTS TO IMPROVE TECHNICAL INFRASTRUCTURE AND IMPROVE 
              QUALITY OF RURAL HEALTH CARE FACILITIES.

    ``(a) In General.--The Secretary shall establish a program to award 
grants to rural health facilities for the purpose of assisting the 
facilities in--
            ``(1) purchasing health information technology to improve 
        quality in health care and patient safety; or
            ``(2) improving health care quality and patient safety, 
        including the development of--
                    ``(A) quality improvement support structures to 
                assist rural health systems and professionals--
                            ``(i) achieve greater integration of 
                        personal and population health services; and
                            ``(ii) address safety, effectiveness, 
                        patient- or community-centeredness, timeliness, 
                        efficiency, and equity; and
                    ``(B) innovative approaches to the financing and 
                delivery of health services to achieve rural health 
                quality goals.
    ``(b) Definitions.--In this section:
            ``(1) Health information technology.--The term `health 
        information technology' includes total expenditures incurred 
        for--
                    ``(A) purchasing, leasing, and installing computer 
                software and hardware, including handheld computer 
                technologies, and related services;
                    ``(B) making improvements to computer software and 
                hardware;
                    ``(C) purchasing or leasing communications 
                capabilities necessary for clinical data access, 
                storage, and exchange;
                    ``(D) services associated with acquiring, 
                implementing, operating, or optimizing the use of 
                computer software and hardware and clinical health care 
                informatics systems;
                    ``(E) providing education and training to eligible 
                entity staff on information systems and technology 
                designed to improve patient safety and quality of care; 
                and
                    ``(F) purchasing, leasing, subscribing, or 
                servicing support to establish interoperability that--
                            ``(i) integrates patient-specific clinical 
                        data with well-established national treatment 
                        guidelines;
                            ``(ii) provides ongoing, continuous quality 
                        improvement functions that allow providers to 
                        assess improvement rates over time and against 
                        averages for similar providers; and
                            ``(iii) integrates with larger health 
                        networks.
            ``(2) Rural area.--The term `rural area' means any area of 
        the United States that is not--
                    ``(A) included within the boundaries of any city, 
                town, borough, or village, whether incorporated or 
                unincorporated, with a population of more than 20,000 
                inhabitants; or
                    ``(B) the urbanized area contiguous and adjacent to 
                such a city or town.
            ``(3) Rural health facility.--The term `rural health 
        facility' means any of the following:
                    ``(A) Sole community hospital.--A hospital (as 
                defined in section 1886(a)(2) of the Social Security 
                Act (42 U.S.C. 1395ww(a)(2))).
                    ``(B) Critical access hospital.--A critical access 
                hospital (as defined in section 1861(mm)(1) of the 
                Social Security Act (42 U.S.C. 1395x(mm)(1))).
                    ``(C) Federally qualified health center in rural 
                areas.--A federally qualified health center (as defined 
                in section 1861(aa)(4) of the Social Security Act (42 
                U.S.C. 1395x(aa)(4)) that is located in a rural area.
                    ``(D) Rural physician or rural physician group 
                practice.--A physician or physician group practice that 
                is located in a rural area.
                    ``(E) Rural health clinic.--A rural health clinic 
                (as defined in section 1861(aa)(2) of the Social 
                Security Act (42 U.S.C. 1395x(aa)(2))).
                    ``(F) Medicare dependent hospital.--A medicare-
                dependent, small rural hospital (as defined in section 
                1886(d)(5)(G)(iv) of the Social Security Act (42 U.S.C. 
                1395ww(d)(5)(G)(iv))).
    ``(c) Amount of Grant.--The Secretary shall determine the amount of 
a grant awarded under this section.
    ``(d) Furnishing the Secretary With Information.--An eligible 
entity receiving a grant under this section shall furnish the Secretary 
with such information as the Secretary may require to--
            ``(1) evaluate the project for which the grant is made; and
            ``(2) ensure that assistance provided under the grant is 
        expended for the purposes for which the grant is made.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section not more than 
$30,000,000 for each of the fiscal years 2008 through 2012.''.

SEC. 6013. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r), as amended by sections 5025 and 6012 of this Act, 
is amended by inserting after section 366 the following:

``SEC. 367. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Economically disadvantaged microentrepreneur.--The 
        term `economically disadvantaged microentrepreneur' means an 
        owner, majority owner, or developer of a microenterprise that 
        has the ability to compete in the private sector but has been 
        impaired because of diminished capital and credit 
        opportunities, as compared to other microentrepreneurs in the 
        industry.
            ``(2) 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).
            ``(3) Intermediary.--The term `intermediary' means a 
        nonprofit entity that provides assistance--
                    ``(A) to a microenterprise development 
                organization; or
                    ``(B) for a microenterprise development program.
            ``(4) Low-income individual.--The term `low-income 
        individual' means an individual with an income (adjusted for 
        family size) of not more than 80 percent of the national median 
        income.
            ``(5) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $50,000 that is 
        provided to a rural entrepreneur.
            ``(6) Microenterprise.--The term `microenterprise' means--
                    ``(A) a sole proprietorship; or
                    ``(B) a business entity with not more than 10 full-
                time-equivalent employees.
            ``(7) Microenterprise development organization.--
                    ``(A) In general.--The term `microenterprise 
                development organization' means a nonprofit entity 
                that--
                            ``(i) provides training and technical 
                        assistance to rural entrepreneurs; and
                            ``(ii) facilitates access to capital or 
                        another service described in subsection (b) for 
                        rural entrepreneurs.
                    ``(B) Inclusions.--The term `microenterprise 
                development organization' includes an organization 
                described in subparagraph (A) with a demonstrated 
                record of delivering services to economically 
                disadvantaged microentrepreneurs, or an effective plan 
                to develop a program to deliver microenterprise 
                services to rural entrepreneurs effectively, as 
                determined by the Secretary.
            ``(8) Microenterprise development program.--The term 
        `microenterprise development program' means a program 
        administered by a qualified organization serving a rural area.
            ``(9) Microentrepreneur.--The term `microentrepreneur 
        means' the owner, operator, or developer of a microenterprise.
            ``(10) Program.--The term `program' means the rural 
        entrepreneur and microenterprise program established under 
        subsection (b)(1).
            ``(11) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) a microenterprise development organization or 
                microenterprise development program that has a 
                demonstrated record of delivering microenterprise 
                services to rural entrepreneurs, or an effective plan 
                to develop a program to deliver microenterprise 
                services to rural entrepreneurs effectively, as 
                determined by the Secretary;
                    ``(B) an intermediary that has a demonstrated 
                record of delivering assistance to microenterprise 
                development organizations or microenterprise 
                development programs;
                    ``(C) an Indian tribe, the tribal government of 
                which certifies to the Secretary that there is no 
                microenterprise development organization or 
                microenterprise development program under the 
                jurisdiction of the Indian tribe;
                    ``(D) a group of 2 or more organizations or Indian 
                tribes described in any of subparagraphs (A) through 
                (C) that agree to act jointly as a qualified 
                organization under this section; or
                    ``(E) for purposes of subsection (b), a public 
                college or university that has a demonstrated record of 
                delivering assistance to microenterprise development 
                organizations or microenterprise development programs.
            ``(12) Rural area.--The term `rural area' means any area of 
        the United States that is not--
                    ``(A) included within the boundaries of any city, 
                town, borough, or village, whether incorporated or 
                unincorporated, with a population of more than 20,000 
                inhabitants; or
                    ``(B) the urbanized area contiguous and adjacent to 
                such a city or town.
            ``(13) Rural capacity-building service.--The term `rural 
        capacity-building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization or 
                microenterprise development program; and
                    ``(B) serves rural areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other related 
                services to rural entrepreneurs.
            ``(14) Rural entrepreneur.--The term `rural entrepreneur' 
        means a microentrepreneur, or prospective microentrepreneur--
                    ``(A) the principal place of business of which is 
                in a rural area; and
                    ``(B) that is unable to obtain sufficient training, 
                technical assistance, or microcredit elsewhere, as 
                determined by the Secretary.
            ``(15) Tribal government.--The term `tribal government' 
        means the governing body of an Indian tribe.
    ``(b) Rural Entrepreneurship and Microenterprise Program.--
            ``(1) Establishment.--The Secretary shall establish a rural 
        entrepreneurship and microenterprise program.
            ``(2) Purpose.--The purpose of the program shall be to 
        provide low-income individuals and moderate-income individuals 
        with--
                    ``(A) the skills necessary to establish new small 
                businesses in rural areas; and
                    ``(B) continuing technical and financial assistance 
                as individuals and business starting or operating small 
                businesses.
            ``(3) Grants.--
                    ``(A) In general.--The Secretary may make a grant 
                under the program to a qualified organization--
                            ``(i) to provide training, operational 
                        support, or a rural capacity-building service 
                        to a qualified organization to assist the 
                        qualified organization in developing 
                        microenterprise training, technical assistance, 
                        market development assistance, and other 
                        related services, primarily for business with 
                        10 or fewer full-time-equivalent employees;
                            ``(ii) to assist in researching and 
                        developing the best practices in delivering 
                        training, technical assistance, and microcredit 
                        to rural entrepreneurs; and
                            ``(iii) to carry out such other projects 
                        and activities as the Secretary determines to 
                        be consistent with the purposes of this 
                        section.
                    ``(B) Diversity.--In making grants under this 
                paragraph, the Secretary shall ensure, to the maximum 
                extent practicable, that grant recipients include 
                qualified organizations--
                            ``(i) of varying sizes; and
                            ``(ii) that serve racially and ethnically 
                        diverse populations.
                    ``(C) Matching requirement.--
                            ``(i) In general.--As a condition of any 
                        grant made to a qualified organization under 
                        this paragraph, the Secretary shall require the 
                        qualified organization to match not less than 
                        25 percent of the total amount of the grant.
                            ``(ii) Sources.--In addition to cash from 
                        non-Federal sources, a matching share provided 
                        by the qualified organization may include 
                        indirect costs or in-kind contributions funded 
                        under non-Federal programs.
            ``(4) Rural microloan and technical assistance program.--
                    ``(A) Establishment.--In carrying out the program, 
                the Secretary may carry out a rural microloan program.
                    ``(B) Purpose.--The purpose of the rural microloan 
                program shall be to provide technical and financial 
                assistance through qualified organizations to sole 
                proprietorships and small businesses located in rural 
                areas with a particular focus on businesses with 10 or 
                fewer full-time equivalent employees.
                    ``(C) Authority of secretary.--In carrying out the 
                rural microloan program, the Secretary may--
                            ``(i) make loans to qualified organizations 
                        for the purpose of making short-term, fixed 
                        interest rate microloans to startup, newly 
                        established, and growing rural microbusiness 
                        concerns; and
                            ``(ii) in conjunction with the loans, 
                        provide grants in accordance with subparagraph 
                        (E) to the organizations for the purpose of 
                        providing intensive marketing, management, and 
                        technical assistance to small business concerns 
                        that are borrowers under this paragraph.
                    ``(D) Loan duration; interest rates; conditions.--
                            ``(i) Loan duration.--A loan made by the 
                        Secretary under this paragraph shall be for a 
                        term of 20 years.
                            ``(ii) Applicable interest rates.--A loan 
                        made by the Secretary under this paragraph to a 
                        qualified organization shall bear an annual 
                        interest rate of at least 1 percent.
                            ``(iii) Deferral of interest and 
                        principal.--The Secretary may permit the 
                        deferral of payments, for principal and 
                        interest, on a loan made under this paragraph 
                        for a period of not more than 2 years, 
                        beginning on the date the loan is made.
                    ``(E) Grant amounts.--
                            ``(i) In general.--Except as otherwise 
                        provided in this section, each qualified 
                        organization that receives a loan under this 
                        paragraph shall be eligible to receive a grant 
                        to provide marketing, management, and technical 
                        assistance to small business concerns that are 
                        borrowers or potential borrowers under this 
                        subsection.
                            ``(ii) Maximum amount for microenterprise 
                        development organizations.--Each 
                        microenterprise development organization that 
                        receives a loan under this paragraph shall 
                        receive an annual grant in an amount equal to 
                        not more than 25 percent of the total 
                        outstanding balance of loans made to the 
                        microenterprise development organization under 
                        this paragraph, as of the date the grant is 
                        made.
                            ``(iii) Matching requirement.--
                                    ``(I) In general.--As a condition 
                                of any grant made to a qualified 
                                organization under this subparagraph, 
                                the Secretary shall require the 
                                qualified organization to match not 
                                less than 15 percent of the total 
                                amount of the grant.
                                    ``(II) Sources.--In addition to 
                                cash from non-Federal sources, a 
                                matching share provided by the 
                                qualified organization may include 
                                indirect costs or in-kind contributions 
                                funded under non-Federal programs.
    ``(c) Administrative Expenses.--Not more than 10 percent of 
assistance received by a qualified organization for a fiscal year under 
this section may be used to pay administrative expenses.
    ``(d) Furnishing the Secretary With Information.--A qualified 
organization that receives a grant under subsection (b)(3) or loan 
under subsection (b)(4) shall furnish the Secretary by December 1 such 
information as the Secretary may require to ensure that assistance 
provided under the grant or loan is expended for the purposes for which 
the grant or loan is made.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section not more than 
$20,000,000 for each of the fiscal years 2008 through 2012.''.

SEC. 6014. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS FOR RURAL 
              DEVELOPMENT PROJECTS.

    Subtitle D of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1981-2008r), as amended by sections 5025, 6012, and 6013 of this 
Act, is amended by inserting after section 367 the following:

``SEC. 368. CRITERIA TO BE APPLIED IN CONSIDERING APPLICATIONS FOR 
              RURAL DEVELOPMENT PROJECTS.

    ``(a) In General.--The Secretary shall review the income 
demographics, population, seasonal increases, and other factors as 
determined by the Secretary, of eligible communities for each program 
authorized or modified by, or funded pursuant to, an amendment made by 
title VI of the Farm, Nutrition, and Bioenergy Act of 2007 or section 
306, 306A, 306C, 306D, 306E, 310(c), 310(e), 310B(b), 310B(c), 310B(e), 
or 379B, or subtitle F, G, H, or I of this Act, and which proposes to 
serve a rural area (as defined by the applicable law).
    ``(b) Regulations.--The Secretary shall issue regulations to 
establish the applicable limitations that a rural area cannot exceed in 
order to remain eligible for a program referred to in subsection 
(a).''.

SEC. 6015. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    (a) Funding.--Section 375(e)(6) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008j(e)(6)) is amended by striking 
paragraphs (B) and (C) and inserting the following:
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary to carry 
                out this section $10,000,000 for each of the fiscal 
                years 2008 through 2012.''.
    (b) Elimination of Requirement to Privatize Revolving Fund.--
Section 375 of such Act (7 U.S.C. 2008j) is amended by striking 
subsection (j).

SEC. 6016. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Section 378(g)(1) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008m(g)(1)) is amended by striking ``2003 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 6017. HISTORIC BARN PRESERVATION.

    (a) Grant Priority.--Section 379A(c) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008o(c)) is amended by redesignating 
paragraphs (3) and (4) as paragraphs (4) and (5) and inserting after 
paragraph (2) the following:
            ``(3) Priority.--In making grants under this subsection, 
        the Secretary shall give the highest priority to funding 
        projects described in paragraph (2)(C).''.
    (b) Limitations on Authorization of Appropriations.--Section 
379A(c)(5) of such Act (7 U.S.C. 2008o(c)(5)), as so redesignated by 
subsection (a) of this section, is amended by striking ``2002 through 
2007'' and inserting ``2008 through 2012''.

SEC. 6018. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    Section 379B(d) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2008p(d)) is amended by striking ``2002 through 2007'' and 
inserting ``2008 through 2012''.

SEC. 6019. DELTA REGIONAL AUTHORITY.

    (a) Authorization of Appropriations.--Section 382M(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-12(a)) is 
amended by striking ``2001 through 2007'' and inserting ``2008 through 
2012''.
    (b) Termination of Authority.--Section 382N of such Act (7 U.S.C. 
2009aa-13) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6020. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    (a) Federal Share of Administrative Expenses.--Section 383B(g)(1) 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb-
1(g)(1)) is amended--
            (1) in subparagraph (A), by striking ``2002'' and inserting 
        ``2007'';
            (2) in subparagraph (B), by striking ``2003'' and inserting 
        ``2008''; and
            (3) in subparagraph (C), by striking ``2004'' and inserting 
        ``2009''.
    (b) Technical Amendment.--Section 383B(d)(6)(A) of such Act (7 
U.S.C. 2009bb-1(d)(6)(A)) is amended by inserting ``and resource 
conservation'' after ``development''.
    (c) Elimination of Prioritization Ranking of Activities to Be 
Funded.--Section 383C(b)(2) of such Act (7 U.S.C. 2009bb-2(b)(2)) is 
amended by striking ``activities in the following order of priority'' 
and inserting ``following activities''.
    (d) Elimination of Isolated Area of Distress Designation.--
            (1) In general.--Section 383F(a) of such Act (7 U.S.C. 
        2009bb-5(a)) is amended--
                    (A) by adding ``and'' at the end of paragraph (1);
                    (B) by striking ``; and'' at the end of paragraph 
                (2) and inserting a period; and
                    (C) by striking paragraph (3).
            (2) Conforming amendments.--Section 383F(b) of such Act (7 
        U.S.C. 2009bb-5(b)) is amended--
                    (A) in paragraph (1), by striking ``and isolated 
                areas of distress''; and
                    (B) in paragraph (2), by striking ``or isolated 
                areas of distress''.
    (e) Reduction of Minimum Funds Allocation for Distressed 
Counties.--Section 383F(b)(1) of such Act (7 U.S.C. 2009bb-5(b)(1)) is 
amended by striking ``75'' and inserting ``50''.
    (f) Elimination of Prohibition on Providing Funds to Nondistressed 
Counties.--Section 383F of such Act (7 U.S.C. 2009bb-5) is amended by 
striking subsection (c) and redesignating subsection (d) as subsection 
(c).
    (g) Inclusion of Renewable Energy Among Objects of Minimum Funds 
Allocation.--Section 383F(c) of such Act (7 U.S.C. 2009bb-5(c)), as so 
redesignated by subsection (a) of this section, is amended--
            (1) in the subsection heading, by inserting ``Renewable 
        Energy,'' after ``Telecommunication,''; and
            (2) by inserting ``renewable energy,'' after 
        ``telecommunication''.
    (h) Authorization of Appropriations.--Section 383M(a) of such Act 
(7 U.S.C. 2009bb-12(a)) is amended by striking ``2002 through 2007'' 
and inserting ``2008 through 2012''.
    (i) Termination of Authority.--Section 383N of such Act (7 U.S.C. 
2009bb-13) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6021. RURAL STRATEGIC INVESTMENT PROGRAM.

    (a) Limitations on Authorization of Appropriations.--Section 385E 
of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd-4) 
is amended to read as follows:

``SEC. 385E. LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this subtitle not more than $25,000,000 for each of the fiscal 
years 2008 through 2012.''.
    (b) Preservation and Promotion of Rural Heritage.--
            (1) Definition.--Section 385B of such Act (7 U.S.C. 2009dd-
        1) is amended by adding at the end the following:
            ``(12) Rural heritage.--The term `rural heritage' means 
        historic sites, structures, and districts which may include 
        rural downtown areas and main streets, neighborhoods, 
        farmsteads, scenic and historic trails, and heritage areas and 
        historic landscapes.''.
            (2) Rural strategic investment planning grants.--Section 
        385F(b) of such Act (7 U.S.C. 2009dd-5(b)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6); and
                    (B) by redesignating paragraph (7) as paragraph (8) 
                and inserting after paragraph (6) the following:
            ``(7) preservation and promotion of rural heritage; and''.
            (3) Innovation grants.--Section 385G(d) of such Act (7 
        U.S.C. 2009dd-66-(d)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6); and
                    (B) by redesignating paragraph (7) as paragraph (8) 
                and inserting after paragraph (6) the following:
            ``(7) demonstrate a plan to protect and promote rural 
        heritage; and''.

SEC. 6022. EXPANSION OF 911 ACCESS.

    Section 315(b) of the Rural Electrification Act of 1936 (7 U.S.C. 
904e(b)) is amended by striking ``2002 through 2007'' and inserting 
``2008 through 2012''.

SEC. 6023. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    (a) Definitions.--Section 601(b) of the Rural Electrification Act 
of 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Eligible rural community.--The term `eligible rural 
        community' means any area of the United States that is not--
                    ``(A) included within the boundaries of any city, 
                town, borough, or village, whether incorporated or 
                unincorporated, with a population of more than 20,000 
                inhabitants; or
                    ``(B) the urbanized area contiguous and adjacent to 
                such a city or town.''.
    (b) Prioritization of Applications.--
            (1) Definition.--Section 601(b) of such Act (7 U.S.C. 
        950bb(b)), as amended by subsection (a) of this section, is 
        amended by adding at the end the following:
            ``(3) Incumbent service provider.--The term `incumbent 
        service provider' means, with respect to an application 
        submitted pursuant to this section, an entity that is providing 
        broadband service to at least 5 percent of the households in 
        the service area proposed in the application.''.
            (2) Priority based on number of incumbent service 
        providers.--Section 601(c) of such Act (7 U.S.C. 950bb(c)) is 
        amended by adding at the end the following:
            ``(3) Applications prioritized based on number of incumbent 
        service providers.--
                    ``(A) In general.--In making or guaranteeing loans 
                under paragraph (1), the Secretary shall give priority, 
                in the following order, to applications from eligible 
                rural communities that have--
                            ``(i) no incumbent service provider;
                            ``(ii) 1 incumbent service provider; or
                            ``(iii) 2 incumbent service providers who, 
                        together, serve not more than 25 percent of the 
                        households in the service area proposed in the 
                        application.
                    ``(B) Prohibitions.--In carrying out this section, 
                the Secretary may not--
                            ``(i) make a loan to an eligible community 
                        in which there are 3 or more incumbent service 
                        providers, unless--
                                    ``(I) the loan is to an incumbent 
                                service provider of the community;
                                    ``(II) the other providers in that 
                                community are notified of the 
                                application before approval by the 
                                Secretary, and have sufficient time to 
                                comment on the application; and
                                    ``(III) the application includes 
                                substantially increasing--
                                            ``(aa) the quality of 
                                        broadband service in the 
                                        community; and
                                            ``(bb) the provision of 
                                        broadband service to unserved 
                                        households inside and outside 
                                        the community; or
                            ``(ii) make a loan for new construction to 
                        any community in which more than 75 percent of 
                        the households may obtain affordable broadband 
                        service, on request, from at least 1 incumbent 
                        service provider.''.
    (c) Paperwork Reduction.--Section 601(c) of such Act (7 U.S.C. 
950bb(c)), as amended by subsection (b)(2) of this section, is amended 
by adding at the end the following:
            ``(4) Paperwork reduction.--The Secretary shall take steps 
        to reduce the cost and paperwork associated with applying for a 
        loan or loan guarantee under this section by first-time 
        applicants, particularly those who are smaller and start-up 
        Internet providers, including by providing for a new 
        application which shall maintain the ability of the Secretary 
        to make an analysis of the risk associated with the loan 
        involved.''.
    (d) Increase in Maximum Number of Subscriber Lines That May Be 
Served by an Eligible Entity.--Section 601(d)(3) of such Act (7 U.S.C. 
950bb(d)(3)) is amended by striking ``2'' and inserting ``10''.
    (e) Limitation on Funds to Entities With More Than 2 Percent of 
Subscriber Lines.--Section 601(d) of such Act (7 U.S.C. 950bb(d)) is 
amended by adding at the end the following:
            ``(4) Limitation on funds to entities with more than 2 
        percent of subscriber lines.--Not more than 25 percent of the 
        loans made under this section in a single fiscal year may be 
        approved for entities that serve more than 2 percent of the 
        telephone subscriber lines in the United States.''.
    (f) Loan Term Not to Exceed 35 Years.--Section 601(g)(2) of such 
Act (7 U.S.C. 950bb(g)(2)) is amended by striking ``not to exceed the 
useful life of the assets constructed, improved, or acquired with the 
proceeds of the loan or extension of credit.'' and inserting ``of such 
length, not exceeding 35 years, as the borrower may request, so long as 
the Secretary determines that the loan is adequately secured. In 
determining the term of a loan or loan guarantee, the Secretary shall 
consider whether the recipient is or would be serving an area that is 
not receiving broadband services.''
    (g) Adequacy of Security.--Section 601 of such Act (7 U.S.C. 950bb) 
is amended by redesignating subsections (h) through (k) as subsections 
(i) through (l), respectively, and inserting after subsection (g) the 
following:
    ``(h) Adequacy of Security.--The Secretary shall ensure that the 
type, amount, and method of security used to secure any loan or loan 
guarantee provided under this section is commensurate to the risk 
involved with the loan or loan guarantee, particularly when the loan or 
loan guarantee is issued to a financially healthy, strong, and stable 
entity. In determining the amount and method of security, the Secretary 
shall consider reducing the security in areas that do not have 
broadband service.''.
    (h) General Report on Program.--Section 601 of such Act (7 U.S.C. 
950bb), as amended by subsection (g) of this section, is amended by 
redesignating subsections (k) and (l) as subsections (l) and (m), 
respectively, and inserting after subsection (j) the following:
    ``(k) General Program Report.--Not later than December 1 of each 
year, the Secretary shall prepare and submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report that 
details for the preceding fiscal year--
            ``(1) the loans made under this section;
            ``(2) the communities served under this section;
            ``(3) the speed of the broadband service offered by 
        applicants for, and recipients of, loans or loan guarantees 
        under this section;
            ``(4) the type of services offered by the applicants and 
        recipients;
            ``(5) the length of time to approve applications submitted 
        pursuant to this section; and
            ``(6) the outreach efforts undertaken by the Department of 
        Agriculture to encourage persons in areas without broadband 
        service to submit applications pursuant to this section.''.
    (i) National Center for Rural Telecommunications Assessment.--
Section 601 of such Act (7 U.S.C. 950bb), as amended by subsections (g) 
and (h) of this section, is amended by redesignating subsections (l) 
and (m) as subsections (m) and (n), respectively, and inserting after 
subsection (k) the following:
    ``(l) National Center for Rural Telecommunications Assessment.--
            ``(1) Establishment of center.--The Secretary shall 
        designate a National Center for Rural Telecommunications 
        Assessment (in this subsection referred to as the `Center').
            ``(2) Criteria.--The Secretary shall use the following 
        criteria in making the designation:
                    ``(A) The Center must be an entity with a focus on 
                rural policy research and a minimum of 5 years 
                experience in rural telecommunications research and 
                assessment.
                    ``(B) The Center must be capable of assessing 
                broadband services in rural areas.
                    ``(C) The Center must have significant experience 
                with other rural economic development centers and 
                organizations in the assessment of rural policies and 
                formulation of policy solutions at the local, State, 
                and Federal level.
            ``(3) Board.--The management of the Center shall be vested 
        in a board of directors that is capable of oversight of the 
        duties set forth in paragraph (4).
            ``(4) Duties.--The Center shall--
                    ``(A) assess the effectiveness of programs provided 
                under subsection (d) in increasing broadband 
                penetration and purchase in rural areas, especially in 
                those rural communities identified by the Secretary as 
                having no service before award of a broadband loan or 
                loan guarantee under subsection (d);
                    ``(B) develop assessments of broadband availability 
                in rural areas, working with existing rural development 
                centers selected by the Center;
                    ``(C) identify policies and initiatives at the 
                local, State and Federal level that have increased 
                broadband penetration and purchase in rural areas;
                    ``(D) conduct a national study of rural households 
                and businesses focusing on the adoption of, barriers 
                to, and utilization of broadband services; and
                    ``(E) provide reports to the public on the 
                activities undertaken under this section.
            ``(5) Reporting requirements.--The Center shall report by 
        December 1 of each year to the Secretary its activities, the 
        results of its research, and any such information the Secretary 
        may request regarding the prior fiscal year. In reporting to 
        the Secretary the Center shall include the following:
                    ``(A) Assessments of the programs provided under 
                subsection (b).
                    ``(B) Annual assessments on broadband availability 
                in rural areas under consideration by the Center.
                    ``(C) Annual assessments on the effects of the 
                policy initiatives identified in paragraph (2)(C).
                    ``(D) Results from the national study of rural 
                households and businesses conducted under paragraph 
                (4)(D).
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this subsection not more than $1,000,000 for each of the fiscal 
        years 2008 through 2012.''.
    (j) Funding.--Section 601(m) of such Act (7 U.S.C. 950bb(l)) as so 
redesignated by subsections (g) through (i) of this section, is 
amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (1), (2), and (3), respectively;
            (3) in paragraph (1)(B) (as so redesignated), by striking 
        ``2007'' and inserting ``2012'';
            (4) in paragraph (2) (as so redesignated), by striking 
        ``2003 through 2007'' and inserting ``2008 through 2012''; and
            (5) in paragraph (3) (as so redesignated), by adding at the 
        end the following:
                    ``(D) Eligible tribal communities.--Of the amounts 
                made available under subparagraph (A) for a fiscal 
                year, 10 percent shall be reserved for entities serving 
                eligible tribal communities.
                    ``(E) Unobligated amounts.--Any amounts in the 
                reserve established for eligible tribal communities for 
                a fiscal year under subparagraph (D) that are not 
                obligated by June 30 of the fiscal year shall be 
                available to the Secretary to make loans and loan 
                guarantees under this section to eligible entities in 
                any State, as determined by the Secretary.''.
    (k) Extension of Authority To Issue Loans.--Section 601(n) of such 
Act (7 U.S.C. 950bb(m)), as so redesignated by subsections (f) through 
(h) of this section, is amended by striking ``2007'' and inserting 
``2012''.

SEC. 6024. COMMUNITY CONNECT GRANT PROGRAM.

    Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) 
is amended by adding at the end the following:

``SEC. 602. COMMUNITY CONNECT GRANT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a grant program 
to be known as the `Community Connect Grant Program' to provide 
financial assistance to eligible applicants to provide broadband 
transmission service that fosters economic growth and delivers enhanced 
educational, health care, and public safety services.
    ``(b) Eligibility.--To be eligible for a grant under this section, 
the applicant must--
            ``(1) be legally organized as an incorporated tribal 
        organization, an Indian tribe, or tribal organization, as 
        defined in subsections (b) and (c) of section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 
        450b(b) and (c)), a State or local unit of government, or other 
        legal entity, including a cooperative, private corporation, or 
        limited liability company organized on a for-profit or not-for-
        profit basis;
            ``(2) have the legal capacity and authority to own and 
        operate broadband facilities as proposed in its application, to 
        enter into contracts, and to otherwise comply with applicable 
        Federal statutes and regulations; or
            ``(3) be in an eligible rural community (as defined in 
        section 601(b)(2) of the Rural Electrification Act of 1936).
    ``(c) Ineligible Grant Purposes.--A grant made under this section 
may not be used--
            ``(1) to finance the duplication of any broadband 
        transmission service provided by another entity; or
            ``(2) with respect to facilities, to provide local exchange 
        telecommunications service to any person or entity receiving 
        the service.
    ``(d) Priority.--In making grants under this section, the Secretary 
shall give priority to grants that will enhance community access to 
telemedicine and distance learning resources.
    ``(e) Matching Contributions.--
            ``(1) In general.--To be eligible to receive a grant under 
        subsection (a), a grant applicant shall provide a matching 
        contribution of at least 15 percent of the grant amount 
        requested, in funds and in-kind contributions in a proportion 
        to be determined by the Secretary.
            ``(2) Limitations.--
                    ``(A) Costs incurred by or on behalf of an 
                applicant, for facilities, installed equipment, or 
                other services rendered before submission of a 
                completed application shall not be considered to be for 
                an eligible grant purpose or a matching contribution.
                    ``(B) Any financial assistance from Federal sources 
                shall not be considered to be a matching contribution 
                for purposes of this section, unless there is a Federal 
                statutory exception specifically authorizing the 
                Federal financial assistance to be so considered.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section not more than 
$25,000,000 for each of the fiscal years 2008 through 2012.''.

SEC. 6025. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    Section 6402(i) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 1621 note; Public Law 107-171) is amended to read as 
follows:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $6,000,000 for 
each of the fiscal years 2008 through 2012.''.

SEC. 6026. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE ASSISTANCE 
              PROGRAM.

    Section 6405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 1621 note) is amended to read as follows:

``SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MEDICAL SERVICE 
              ASSISTANCE PROGRAM.

    ``(a) Grants.--The Secretary shall award grants to eligible 
entities to--
            ``(1) enable the entities to provide for improved emergency 
        medical services in rural areas; and
            ``(2) pay the cost of training firefighters and emergency 
        medical personnel in firefighting, emergency medical practices, 
        and responding to hazardous materials and bioagents in rural 
        areas.
    ``(b) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
            ``(1) be--
                    ``(A) a State emergency medical services office;
                    ``(B) a State emergency medical services 
                association;
                    ``(C) a State office of rural health;
                    ``(D) a local government entity;
                    ``(E) an Indian tribe (as defined in section 4 of 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450b));
                    ``(F) a State or local ambulance provider; or
                    ``(G) any other entity determined appropriate by 
                the Secretary; and
            ``(2) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, that includes--
                    ``(A) a description of the activities to be carried 
                out under the grant; and
                    ``(B) an assurance that the applicant will comply 
                with the matching requirement of subsection (e).
    ``(c) Use of Funds.--An entity shall use amounts received under a 
grant made under subsection (a) only in rural areas to--
            ``(1) hire or recruit emergency medical service personnel;
            ``(2) recruit or retain volunteer emergency medical service 
        personnel;
            ``(3) train emergency medical service personnel in 
        emergency response, injury prevention, safety awareness, and 
        other topics relevant to the delivery of emergency medical 
        services;
            ``(4) fund training to meet State or Federal certification 
        requirements;
            ``(5) provide training for firefighters and emergency 
        medical personnel for improvements to the training facility, 
        equipment, curricula, and personnel;
            ``(6) develop new ways to educate emergency health care 
        providers through the use of technology-enhanced educational 
        methods (such as distance learning);
            ``(7) acquire emergency medical services vehicles, 
        including ambulances;
            ``(8) acquire emergency medical services equipment, 
        including cardiac defibrillators;
            ``(9) acquire personal protective equipment for emergency 
        medical services personnel as required by the Occupational 
        Safety and Health Administration; and
            ``(10) educate the public concerning cardiopulmonary 
        resuscitation (CPR), first aid, injury prevention, safety 
        awareness, illness prevention, and other related emergency 
        preparedness topics.
    ``(d) Preference.--In awarding grants under this section, the 
Secretary shall give preference to--
            ``(1) applications that reflect a collaborative effort by 2 
        or more of the entities described in subparagraphs (A) through 
        (G) of subsection (b)(1); and
            ``(2) applications submitted by entities that intend to use 
        amounts provided under the grant to fund activities described 
        in any of paragraphs (1) through (5) of subsection (c).
    ``(e) Matching Requirement.--The Secretary may not make a grant 
under this section to an entity unless the entity agrees that the 
entity will make available (directly or through contributions from 
other public or private entities) non-Federal contributions toward the 
activities to be carried out under the grant in an amount equal to 5 
percent of the amount received under the grant.
    ``(f) Emergency Medical Services.--In this section, the term 
`emergency medical services'--
            ``(1) means resources used by a qualified public or private 
        nonprofit entity, or by any other entity recognized as 
        qualified by the State involved, to deliver medical care 
        outside of a medical facility under emergency conditions that 
        occur as a result of--
                    ``(A) the condition of the patient; or
                    ``(B) a natural disaster or similar situation; and
            ``(2) includes (compensated or volunteer) services 
        delivered by an emergency medical services provider or other 
        provider recognized by the State involved that is licensed or 
        certified by the State as an emergency medical technician or 
        the equivalent (as determined by the State), a registered 
        nurse, a physician assistant, or a physician that provides 
        services similar to services provided by such an emergency 
        medical services provider.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary to carry out this section not more than 
        $30,000,000 for each of fiscal years 2008 through 2012.
            ``(2) Administrative costs.--Not more than 10 percent of 
        the amount appropriated under paragraph (1) for a fiscal year 
        may be used for administrative expenses.''.

SEC. 6027. VALUE-ADDED AGRICULTURAL MARKET DEVELOPMENT PROGRAM.

    (a) Definition of Mid-Tier Value Chain.--Section 231(a) of the 
Agricultural Risk Protection Act of 2000 (7 U.S.C. 1621 note; Public 
Law 106-224) is amended by adding at the end the following:
            ``(3) Mid-tier value chain.--The term `mid-tier value 
        chain' means local and regional supply networks that link 
        independent producers with businesses and cooperatives that 
        market value-added agricultural products in a manner that--
                    ``(A) targets and strengthens the profitability and 
                competitiveness of small and medium-sized family farms, 
                as defined in regulations pursuant to Section 302 of 
                the Consolidated Farm and Rural Development Act; and
                    ``(B) obtains agreement from the eligible 
                agricultural producer group, farmer or rancher 
                cooperative, or majority-controlled producer-based 
                business venture engaged in the value chain in the 
                method for price determination.''.
    (b) Funding; Reservation of Funds; Grant Award Criteria.--Section 
231(b) of such Act (7 U.S.C. 1621 note; Public Law 106-224) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) Funding.--Not later than 30 days after the date of 
        the enactment of this paragraph, on October 1, 2008, and on 
        each October 1 thereafter through October 1, 2012, of the funds 
        of the Commodity Credit Corporation, the Secretary shall make 
        available to carry out this subsection $30,000,000, to remain 
        available until expended.
            ``(5) Reservation of funds for projects to benefit 
        beginning farmers and ranchers or socially disadvantaged 
        farmers and ranchers and mid-tier value chains.--
                    ``(A) In general.--The Secretary shall reserve 10 
                percent of the amounts made available under paragraph 
                (4) to fund projects that benefit beginning farmers and 
                ranchers (as defined in section 343(a)(11) of the 
                Consolidated Farm and Rural Development Act) or 
                socially disadvantaged farmers and ranchers (as defined 
                in section 355(e) of such Act).
                    ``(B) Mid-tier value chains.--The Secretary shall 
                reserve 10 percent of the amounts made available under 
                paragraph (4) to fund applications of eligible entities 
                described in paragraph (1) that propose to develop mid-
                tier value chains.
                    ``(C) Unobligated amounts.--Any amounts in the 
                reserves established under subparagraphs (A) and (B) 
                that are not obligated by June 30 of the fiscal year 
                shall be available to the Secretary to make grants 
                under this section to eligible entities in any State, 
                as determined by the Secretary.''; and
            (2) by adding at the end the following:
            ``(6) Criteria to be applied in awarding grants.--In 
        awarding grants under this section, the Secretary shall 
        consider an application more favorably when compared to other 
        applications to the extent that the project contributes to 
        increasing opportunities for operators of small and medium-size 
        farms and ranches structured as family farms (as defined in 
        regulations prescribed under section 302 of the Consolidated 
        Farm and Rural Development Act).''.

SEC. 6028. ASSISTANCE FOR RURAL PUBLIC TELEVISION STATIONS.

    Section 2333 of the Food, Agriculture, Conservation and Trade Act 
of 1990 (7 U.S.C. Sec. 950aaa-2) is amended by adding at the end the 
following:
    ``(j) Digital Service Transition Assistance for Public Television 
Stations.--The Secretary may provide grants under this section to 
noncommercial education television broadcast stations that serve rural 
areas for the purposes of developing digital facilities, equipment, and 
infrastructure to enhance digital services to rural areas.''.

SEC. 6029. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) Authorization of Appropriations.--Section 2335A of the Food, 
Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
amended by striking ``2007'' and inserting ``2012''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-551 (7 
U.S.C. 950aaa note) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 6030. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
              TELEPHONE PURPOSES.

    Section 313A(f) of the Rural Electrification Act of 1936 (7 U.S.C. 
940c-1(f)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 6031. COMPREHENSIVE RURAL BROADBAND STRATEGY.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Agriculture shall submit to the President, the 
Committee on Agriculture of the House of Representatives, and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report describing a comprehensive rural broadband strategy that 
includes--
            (1) recommendations--
                    (A) to promote interagency coordination of Federal 
                agencies in regards to policies, procedures, and 
                targeted resources, and to improve and streamline the 
                polices, programs, and services;
                    (B) to coordinate among Federal agencies regarding 
                existing rural broadband or rural initiatives that 
                could be of value to rural broadband development;
                    (C) to address both short- and long-term solutions 
                and needs assessments for a rapid build-out of rural 
                broadband solutions and applications for Federal, 
                State, regional, and local government policy makers;
                    (D) to identify how specific Federal agency 
                programs and resources can best respond to rural 
                broadband requirements and overcome obstacles that 
                currently impede rural broadband deployment; and
                    (E) to promote successful model deployments and 
                appropriate technologies being used in rural areas so 
                that State, regional, and local governments can benefit 
                from the cataloging and successes of other State, 
                regional, and local governments; and
            (2) a description of goals and timeframes to achieve the 
        strategic plans and visions identified in the report.

SEC. 6032. STUDY OF RAILROAD ISSUES.

    (a) In General.--The Secretary of Agriculture, in coordination with 
the Secretary of Transportation, shall conduct a study of railroad 
issues regarding the movement of agricultural products, domestically 
produced renewable fuels and domestically produced resources for the 
production of electricity for rural America, and economic development 
in rural America. The study shall include an examination of the 
following:
            (1) The importance of freight railroads to--
                    (A) the delivery of equipment, seed, fertilizer, 
                and other such products important to the development of 
                agricultural commodities and products;
                    (B) the movement of agricultural commodities and 
                products to market;
                    (C) the delivery of ethanol and other renewable 
                fuels;
                    (D) the delivery of domestically produced resources 
                for use in the generation of electricity for rural 
                America;
                    (E) the location of grain elevators, ethanol 
                plants, and other facilities;
                    (F) the development of manufacturing facilities in 
                rural America; and
                    (G) the vitality and economic development of rural 
                communities.
            (2) The sufficiency in rural America of railroad capacity, 
        the sufficiency of competition in the railroad system, the 
        reliability of rail service, and the reasonableness of railroad 
        prices.
            (3) The accessibility to rail customers in rural America of 
        Federal processes for the resolution of rail customer 
        grievances with the railroads.
    (b) Report to the Congress.--Within 9 months after the date of the 
enactment of this Act, the Secretary of Agriculture shall submit to the 
Congress a report that contains the results of the study required by 
subsection (a), and the recommendations of the Secretary for new 
Federal policies to address any problems identified by the study.

                          TITLE VII--RESEARCH

                     Subtitle A--General Provisions

Sec. 7101. Definitions.
Sec. 7102. Budget submission and funding.
Sec. 7103. Additional purposes of agricultural research and extension.
Sec. 7104. National agricultural research program office.
Sec. 7105. Establishment of competitive grant programs under the 
                            National Institute for Food and 
                            Agriculture.
Sec. 7106. Merging of IFAFS and NRI.
Sec. 7107. Capacity building grants for ASCARR institutions.
Sec. 7108. Establishment of research laboratories for animal diseases.
Sec. 7109. Grazinglands research laboratory.
Sec. 7110. Researcher training.
Sec. 7111. Fort Reno Science Park research facility.
Sec. 7112. Assessing the nutritional composition of beef products.
Sec. 7113. Sense of Congress regarding funding for human nutrition 
                            research.
  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

Sec. 7201. Advisory board.
Sec. 7202. Advisory board termination.
Sec. 7203. Renewable energy committee.
Sec. 7204. Specialty crop committee report.
Sec. 7205. Inclusion of UDC in grants and fellowships for food and 
                            agricultural sciences education.
Sec. 7206. Grants and fellowships for food and agricultural sciences 
                            education.
Sec. 7207. Grants for research on production and marketing of alcohols 
                            and industrial hydrocarbons from 
                            agricultural commodities and forest 
                            products.
Sec. 7208. Policy research centers.
Sec. 7209. Human nutrition intervention and health promotion research 
                            program.
Sec. 7210. Pilot research program to combine medical and agricultural 
                            research.
Sec. 7211. Nutrition education program.
Sec. 7212. Continuing animal health and disease research programs.
Sec. 7213. Cooperation among eligible institutions.
Sec. 7214. Appropriations for research on national or regional 
                            problems.
Sec. 7215. Authorization level of extension at 1890 land-grant 
                            colleges.
Sec. 7216. Authorization level for agricultural research at 1890 land-
                            grant colleges.
Sec. 7217. Grants to upgrade agriculture and food sciences facilities 
                            at the District of Columbia Land Grant 
                            University.
Sec. 7218. Grants to upgrade agricultural and food sciences facilities 
                            at 1890 land-grant colleges, including 
                            Tuskegee University.
Sec. 7219. National research and training virtual centers.
Sec. 7220. Matching funds requirement for research and extension 
                            activities of 1890 institutions.
Sec. 7221. Hispanic-serving institutions.
Sec. 7222. Hispanic-serving agricultural colleges and universities.
Sec. 7223. International agricultural research, extension, and 
                            education.
Sec. 7224. Competitive grants for international agricultural science 
                            and education programs.
Sec. 7225. Limitation on indirect costs for agricultural research, 
                            education, and extension programs.
Sec. 7226. Research equipment grants.
Sec. 7227. University research.
Sec. 7228. Extension service.
Sec. 7229. Supplemental and alternative crops.
Sec. 7230. Aquaculture Assistance Programs.
Sec. 7231. Rangeland research.
Sec. 7232. Special authorization for biosecurity planning and response.
Sec. 7233. Resident instruction and distance education grants program 
                            for insular area institutions of higher 
                            education.
Sec. 7234. Hispanic Serving Institutions.
Sec. 7235. Specialty crops policy research institute.
Sec. 7236. Emphasis of Human Nutrition Initiative.
Sec. 7237. Grants to upgrade agriculture and food sciences facilities 
                            at insular area land-grant institutions.
   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

Sec. 7301. National genetics resources program.
Sec. 7302. National agricultural weather information system.
Sec. 7303. Partnerships.
Sec. 7304. Aflatoxin research and extension.
Sec. 7305. High-priority research and extension areas.
Sec. 7306. High-priority research and extension initiatives.
Sec. 7307. Nutrient management research and extension initiative.
Sec. 7308. Agricultural telecommunications program.
Sec. 7309. Assistive technology program for farmers with disabilities.
Sec. 7310. Organic research.
Sec. 7311. National rural information center clearinghouse.
Sec. 7312. New era rural technology program.
Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

Sec. 7401. Partnerships for high-value agricultural product quality 
                            research.
Sec. 7402. Precision agriculture.
Sec. 7403. Biobased products.
Sec. 7404. Thomas Jefferson initiative for crop diversification.
Sec. 7405. Integrated research, education, and extension competitive 
                            grants program.
Sec. 7406. Fusarium graminearum grants.
Sec. 7407. Bovine Johne's disease control program.
Sec. 7408. Grants for youth organizations.
Sec. 7409. Agricultural biotechnology research and development for 
                            developing countries.
Sec. 7410. Agricultural bioenergy and biobased products research 
                            initiative.
Sec. 7411. Specialty crop research initiative.
Sec. 7412. Office of pest management policy.
                         Subtitle E--Other Laws

Sec. 7501. Critical agricultural materials act.
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7503. Agricultural experiment station Research Facilities Act.
Sec. 7504. National Agricultural Research, Extension, and Teaching 
                            Policy Act Amendments of 1985.
Sec. 7505. Competitive, Special, and Facilities Research Grant Act 
                            (national research initiative).
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle 
                            research).
Sec. 7507. Renewable Resources Extension Act of 1978.
Sec. 7508. National Aquaculture Act of 1980.
Sec. 7509. Construction of a Chinese Garden at the National Arboretum.
Sec. 7510. Public education regarding use of biotechnology in producing 
                            food for human consumption.
Sec. 7511. Fresh cut produce safety grants.
Sec. 7512. UDC/EFNEP Eligibility.
Sec. 7513. Hatch Act of 1987.
                   Subtitle F--Additional Provisions

Sec. 7601. Merit review of extension and educational grants.
Sec. 7602. Review of plan of work requirements.
Sec. 7603. Multistate and integration funding.
Sec. 7604. Expanded food and nutrition education program.
Sec. 7605. Grants to 1890 schools to expand extension capacity.
Sec. 7606. Borlaug international agricultural science and technology 
                            fellowship program.
Sec. 7607. Cost Recovery.
Sec. 7608. Organic Food and Agricultural Systems Funding.

                     Subtitle A--General Provisions

SEC. 7101. DEFINITIONS.

    For purposes of this title:
            (1) Capacity program.--The term ``capacity program'' means 
        the capacity program in subparagraph (M) and each of the 
        following agricultural research, extension, education, and 
        related programs for which the Secretary has administrative or 
        other authority as of the day before the date of enactment of 
        this Act:
                    (A) Each program providing funding to any of the 
                1994 institutions under sections 533, 534(a), and 535 
                of the Equity in Educational Land-Grant Status Act of 
                1994 (Public Law 103-382; 7 U.S.C. 301 note) (commonly 
                known as financial assistance, technical assistance, 
                and endowments to tribal colleges and the Navajo 
                Community College).
                    (B) The program established under section 536 of 
                the Equity in Educational Land-Grant Status Act of 1994 
                (Public Law 103-382; 7 U.S.C. 301 note) providing 
                research grants for 1994 institutions.
                    (C) Each program established under subsections (b), 
                (c), and (d) of section 3 of the Smith-Lever Act (7 
                U.S.C. 343).
                    (D) Each program established under the Hatch Act of 
                1887 (7 U.S.C. 361a et seq.).
                    (E) Each program established under section 
                1417(b)(4) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3152(b)(4)), including grant programs under that 
                section (commonly known as the 1890 Institution 
                Teaching and Research Capacity Building Grants 
                Program).
                    (F) The animal health and disease research program 
                established under subtitle E of the National 
                Agricultural Research, Extension, and Teaching Policy 
                Act of 1977 (7 U.S.C. 3191 et seq.).
                    (G) The program established under section 1445 of 
                the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3222) (commonly 
                known as the Evans-Allen Program).
                    (H) The program providing grants to upgrade 
                agricultural and food sciences facilities at 1890 
                Institutions established under section 1447 of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3222b).
                    (I) The program providing distance education grants 
                for insular areas established under section 1490 of the 
                National Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3362).
                    (J) The program providing resident instruction 
                grants for insular areas established under section 1491 
                of the National Agricultural Research, Extension, and 
                Teaching Policy Act of 1977 (7 U.S.C. 3363).
                    (K) Each research and development and related 
                program established under Public Law 87-788 (commonly 
                known as the McIntire-Stennis Cooperative Forestry Act; 
                16 U.S.C. 582a et seq.).
                    (L) Each program established under the Renewable 
                Resources Extension Act of 1978 (16 U.S.C. 1671 et 
                seq.).
                    (M) The capacity building grant program for ASCARR 
                Institutions established under this Act.
                    (N) Such other programs or parts of programs as 
                determined appropriate by the Secretary.
                    (O) The program providing competitive extension 
                grants to eligible 1994 institutions under section 
                3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)).
            (2) Competitive programs.--The term ``competitive 
        programs'' means the competitive program in subparagraph (N) 
        and each of the following agricultural research, extension, 
        education, and related programs for which the Secretary has 
        administrative or other authority as of the day before the date 
        of enactment of this Act:
                    (A) Competitive grant programs authorized or 
                otherwise administered by the Department of Agriculture 
                under the terms of section 2(b) of the Competitive, 
                Special and Facilities Research Grant (7 U.S.C. 450i).
                    (B) Institution Challenge Grants, administered 
                under 1417(j) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977, as amended 
                (7 U.S.C. 3152(j)).
                    (C) Grants and related authorities authorized or 
                otherwise administered by the Secretary of Agriculture 
                under section 1417(b)(5) of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977, 
                as amended (7 U.S.C. 3152(b)(5)) (commonly known as the 
                Higher Education Multicultural Scholars Program).
                    (D) Programs authorized or otherwise administered 
                under section 1455 of the National Agricultural 
                Research, Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3241(e)) (commonly known as educational grant 
                programs for Hispanic-serving institutions).
                    (E) Integrated research, education, or extension 
                programs authorized under section 406 of the 
                Agricultural Research, Extension, and Education Reform 
                Act of 1998 (7 U.S.C. 7626).
                    (F) Sustainable Agriculture Research and Education 
                (7 U.S.C. 5811).
                    (G) Organic Research and Extension Initiative (7 
                U.S.C. 5925b).
                    (H) Higher Education Challenge Grants (7 U.S.C. 
                3152(b)(1)).
                    (I) Food and Agriculture Sciences National Needs 
                Graduate and Postgraduate Fellowship Grants (7 U.S.C. 
                3152(b)(6)).
                    (J) International Science and Education Competitive 
                Grants (7 U.S.C. 3292b).
                    (K) Community Food Projects Competitive Grants (7 
                U.S.C. 2034).
                    (L) Risk Management Education (7 U.S.C. 1524).
                    (M) High Priority Research and Extension Areas (7 
                U.S.C. 5925).
                    (N) Such other programs or parts of programs as 
                determined appropriate by the Secretary.
            (3) Capacity program critical base funding.--The term 
        ``capacity program critical base funding'' means the aggregate 
        amount of Federal funds made available for all or individual 
        capacity programs for fiscal year 2007, as appropriate.
            (4) Competitive program critical base funding.--The term 
        ``competitive program critical base funding'' means the 
        aggregate amount of Federal funds made available for all or 
        individual competitive programs for fiscal year 2007, as 
        appropriate.
            (5) ASCARR institution.--
                    (A) In general.--The term ``ASCARR Institution'' 
                means a public college or university offering a 
                baccalaureate or higher degree in the study of 
                agriculture.
                    (B) Exclusions.--The term ``ASCARR Institution'' 
                does not include Hispanic-serving agricultural colleges 
                and universities or any institution designated under--
                            (i) the Act of July 2, 1862 (commonly known 
                        as the ``First Morrill Act''; 7 U.S.C. 301 et 
                        seq.);
                            (ii) the Act of August 30, 1890 (commonly 
                        known as the ``Second Morrill Act''; 7 U.S.C. 
                        321 et seq.); or
                            (iii) the Equity in Educational Land-Grant 
                        Status Act of 1994 (Public Law 103-382; 7 
                        U.S.C. 301 note).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (7) Directors.--The term ``Directors'' refers to those 
        directors appointed under section 7104.
            (8) Under secretary.--The term ``Under Secretary'' means 
        the Under Secretary of Agriculture for Research, Education, and 
        Economics.
            (9) Hispanic-serving agricultural college and university.--
        The term ``Hispanic-serving agricultural college and 
        university'' means a college or university that--
                    (A) qualifies as an ``Hispanic-serving 
                institution''; and
                    (B) offers associate, bachelor's, or other 
                accredited degree programs in agricultural related 
                fields, as determined by the Secretary.

SEC. 7102. BUDGET SUBMISSION AND FUNDING.

    (a) Budget Request.--The President shall submit to Congress, 
together with the annual budget submission of the President, a single 
budget line item reflecting the total amount requested by the President 
for funding for capacity programs, and a single budget line item 
reflecting the total amount requested by the President for funding for 
competitive programs for that fiscal year and for the previous 5 fiscal 
years.
    (b) Capacity Program Request.--
            (1) Critical base funding.--Up to the amount of the 
        capacity program critical base funding level, any funds 
        requested for capacity programs in the budget submission single 
        line item shall be apportioned among the capacity programs 
        based on priorities established by the Under Secretary in 
        conjunction with the Directors.
            (2) Additional funding.--Of the funds requested for 
        capacity programs in excess of the capacity program critical 
        base funding level, budgetary emphasis should be placed on 
        enhancing funding for the 1890, 1994, ASCARR Institutions, 
        Hispanic-serving agricultural colleges, and small 1862 
        institutions.
    (c) Competitive Program Request.--
            (1) Critical base funding.--Up to the amount of the 
        competitive program critical base funding level, any funds 
        requested for competitive programs in the budget submission 
        single line item shall be apportioned among the competitive 
        programs based on priorities established by the Under Secretary 
        in conjunction with the Directors.
            (2) Additional funding.--Of the funds requested for 
        competitive programs in excess of the competitive program 
        critical base funding level, budgetary emphasis shall be placed 
        on enhancing funding for emerging problems and their solutions.
    (d) Funding.--
            (1) Critical base funding.--Up to the total aggregate 
        amount of the capacity program critical base funding level and 
        the competitive program critical base funding level, funds 
        appropriated or otherwise made available shall be apportioned 
        among each of the capacity programs and the competitive 
        programs based on priorities established by the Under Secretary 
        in conjunction with the Directors.
            (2) Additional funding.--
                    (A) Capacity funding.--Of the funds appropriated or 
                otherwise made available for capacity programs in 
                excess of the capacity program critical base funding 
                level, funding emphasis should be placed on enhancing 
                funding for the 1890, 1994, ASCARR Institutions, 
                Hispanic-serving agricultural colleges, and small 1862 
                institutions.
                    (B) Competitive funding.--Of the funds appropriated 
                or otherwise made available for competitive programs in 
                excess of the competitive program critical base funding 
                level, budgetary emphasis shall be placed on enhancing 
                funding for emerging problems and solutions.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section.
    (f) Competitive Programs.--For the purposes of this section, the 
term ``competitive programs'' includes only those programs for which 
annual appropriations are requested in the President's budget.

SEC. 7103. ADDITIONAL PURPOSES OF AGRICULTURAL RESEARCH AND EXTENSION.

    Section 1403 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3102) is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period and inserting 
        a semicolon; and
            (3) by adding after paragraph (7) the following:
            ``(8) to integrate and organize the administration of the 
        agricultural research, extension, education, and related 
        programs administered by the Secretary of Agriculture to 
        respond to 21st century challenges and continue to meet the 
        needs of society from a local, tribal, State, national, and 
        international perspective;
            ``(9) to minimize duplication, and maximize coordination 
        and integration, among all of the programs at all levels 
        through a solution-based approach; and
            ``(10) to position the agricultural research, extension, 
        education, and related programs system to increase the 
        contribution of the system to society through the expansion of 
        the portfolio of the system.''.

SEC. 7104. NATIONAL AGRICULTURAL RESEARCH PROGRAM OFFICE.

    (a) Establishment.--The Under Secretary shall organize within the 
office of the Under Secretary 6 research Program Offices to be known 
collectively as the National Agricultural Research Program Office, 
which shall coordinate the programs and activities of the research 
agencies within the mission area in an integrated, multidisciplinary, 
interdisciplinary, interagency, and interinstitutional manner, to the 
maximum extent practicable. The Program Offices within the National 
Agricultural Research Program Office are as follows:
            (1) Renewable energy, natural resources, and environment.
            (2) Food safety, nutrition, and health.
            (3) Plant health and production.
            (4) Animal health and production and animal products.
            (5) Agriculture systems and technology.
            (6) Agriculture economics and rural communities.
    (b) Qualifications of Directors.--
            (1) Appointment and classification.--The Under Secretary 
        shall appoint a Director for each Program Office as a senior 
        level position in the competitive service.
            (2) Qualifications.--To be eligible for appointment as a 
        Director, an individual shall have--
                    (A) conducted outstanding research, education, or 
                extension in the field of agriculture or forestry;
                    (B) earned a doctoral level degree at an 
                institution of higher education (as defined in section 
                101 of Public Law 89-329 (20 U.S.C. 1001)); and
                    (C) met qualification standards prescribed by the 
                Director of the Office of Personnel Management for 
                appointment to a senior level position of the 
                competitive service.
    (c) Duties of Directors.--Except as otherwise provided in this Act, 
each Director as appointed by the Secretary shall--
            (1) formulate programs in consultation with the National 
        Agricultural Research, Extension, Education, and Economics 
        Advisory Board (7 U.S.C. 3123) (hereinafter referred to as the 
        ``Board'');
            (2) assess strategic workforce needs of research, 
        education, extension, and other fields;
            (3) cooperate with the Board to plan programs that assist 
        in meeting the future personnel needs of disciplines and 
        programs;
            (4) develop strategic planning for department-wide 
        research, education, extension, and related activities;
            (5) establish department-wide priorities for research, 
        education, extension, and related programs;
            (6) communicate with research, education, and extension 
        beneficiaries to identify their needs; and
            (7) perform such other duties deemed necessary by the 
        Secretary.
    (d) Administration.--The Under Secretary, in conjunction with the 
Directors and in consultation with the Board, shall direct and 
coordinate research, education, and extension programs within the 
relevant agencies of the Department of Agriculture to focus those 
programs, and the participants, grantees, and other beneficiaries of 
those programs, on--
            (1) understanding important problem areas and opportunities 
        relating to a program;
            (2) discovering and implementing solutions to address those 
        problem areas;
            (3) exploring other opportunities provided under the 
        programs; and
            (4) national, regional and local priorities.
    (e) Program Integration and Coordination.--
            (1) In general.--In accordance with applicable law 
        (including regulations), the Under Secretary, in coordination 
        with the Director of each Program Office and taking into 
        consideration the advice of the Board, shall ensure, to the 
        maximum extent practicable, that the research, education, and 
        extension programs are administered, funded, and carried out--
                    (A) in an integrated, multidisciplinary, 
                interdisciplinary, interagency, and interinstitutional 
                manner that ensures--
                            (i) the most efficient collaborative use of 
                        resources; and
                            (ii) the focus of all resources and 
                        activities on strategic, priority, problem, 
                        opportunity, and solution areas identified by 
                        the Under Secretary and the Directors, taking 
                        into consideration the advice of the Board; and
                    (B) among applicable participants, grantees, and 
                beneficiaries, in a coordinated manner that encourages 
                and ensures--
                            (i) the most efficient collaborative 
                        application of resources; and
                            (ii) the focus of all resources and 
                        activities on strategic, priority, problem, 
                        opportunity, and solution areas on a local, 
                        State, tribal, regional, national, and 
                        international basis, as the Under Secretary and 
                        each Director, taking into consideration the 
                        advice of the Board, determine to be 
                        appropriate.
            (2) Scope.--Each Director, in consultation with the Under 
        Secretary and the Board, shall ensure, through the integration 
        and coordination under paragraph (1), that opportunities are 
        maximized with respect to--
                    (A) the use of appropriate authorities, agencies, 
                institutions, disciplines, and activities; and
                    (B) the inclusion of appropriate participants and 
                other beneficiaries in those activities, including 
                intramural, extramural, Government, university, 
                extension, and international, as determined by the 
                Under Secretary.
    (f) Funding.--The Under Secretary shall fund each Program Office 
through the appropriations available to the various agencies within the 
mission area. The aggregate staff for all Program Offices shall not 
exceed 30 full-time equivalent positions and shall be filled by current 
full-time equivalent positions.
    (g) Organization.--The Under Secretary shall integrate leadership 
functions of the national program staff of the research agencies into 
the National Agricultural Research Program Office in such form as 
required to ensure that the Directors of the Program Offices are the 
primary program leaders for the mission areas of the integrated 
agencies and that administrative duplication does not occur.
    (h) Prioritizing Federal Research Activities for Specialty Crops.--
The Under Secretary, in coordination with the Directors of relevant 
Program Offices, shall--
            (1) coordinate with and assist producers and organizations 
        comprised of program beneficiaries working together to develop 
        and implement applied research and extension related to the 
        United States specialty crop industry;
            (2) facilitate in the delivery of information to 
        beneficiaries in a user-friendly form, in addition to a 
        standard research publication, and reward providers for their 
        abilities to deliver information to both the scientific 
        community and the end-user; and
            (3) ensure coordination among research initiatives funded 
        and sponsored by the Department of Agriculture.

SEC. 7105. ESTABLISHMENT OF COMPETITIVE GRANT PROGRAMS UNDER THE 
              NATIONAL INSTITUTE FOR FOOD AND AGRICULTURE.

    Any office established to administer competitive programs under 
section 7101(b)(2), including the Agricultural Bioenergy and Biobased 
Products Research Initiative, the Specialty Crop Research Initiative, 
and Fresh Cut Produce Safety Grants created by this Act, shall be 
referred to as the National Institute of Food and Agriculture.

SEC. 7106. MERGING OF IFAFS AND NRI.

    (a) Amendment.--Subsection (b) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)) is amended to read as 
follows:
    ``(b) Competitive Grant Programs.--
            ``(1) Competitive basis.--The Secretary of Agriculture is 
        authorized to make competitive grants for the purposes and 
        priorities established under this subsection.
            ``(2) Term.--The term of a competitive grant made under 
        this subsection may not exceed 10 years.
            ``(3) General administration.--In making grants under this 
        subsection, the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer and merit review in 
                accordance with section 103 of the Agricultural 
                Research, Extension, and Education Reform Act of 1998 
                (7 U.S.C. 7613);
                    ``(C) award grants on the basis of merit, quality, 
                and relevance to advancing the purposes and priorities 
                established under paragraphs (7) and (11) of this 
                subsection;
                    ``(D) solicit and consider input from persons who 
                conduct or use agricultural research, extension, or 
                education in accordance with section 102(b) of the 
                Agricultural Research, Extension, and Education Reform 
                Act of 1998 (7 U.S.C. 7612(b)); and
                    ``(E) in seeking proposals for grants under this 
                subsection and in performing peer review evaluations of 
                such proposals, seek the widest participation of 
                qualified scientists in the Federal Government, 
                colleges and universities, State agricultural 
                experiment stations, and the private sector.
            ``(4) Eligible entities.--The Secretary may make a grant 
        under this subsection to State agricultural experiment 
        stations, all colleges and universities, university research 
        foundations, other research institutions and organizations, 
        Federal agencies, national laboratories, private organizations 
        or corporations, and individuals, for research to further the 
        programs of the Department of Agriculture.
            ``(5) Administrative costs.--Not more than 4 percent of 
        funds made available pursuant to this subsection may be 
        retained by the Secretary to pay administrative costs incurred 
        by the Secretary in carrying out this subsection.
            ``(6) Construction prohibited.--Funds made available for 
        grants under this subsection shall not be used for the 
        construction of a new building or facility or the acquisition, 
        expansion, remodeling, or alteration of an existing building or 
        facility (including site grading and improvement and architect 
        fees).
            ``(7) Purposes.--The purposes of the programs established 
        under paragraph (8) shall reflect the purposes and additional 
        purposes of agricultural research, extension, and education 
        reflected in sections 1402 and 1403 of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3101 and 3102).
            ``(8) Basic and applied research programs.--The Secretary 
        shall establish 2 distinct programs of agricultural research, 
        one to fund fundamental, basic research pursuant to paragraph 
        (9) to be known as the National Research Initiative and one to 
        fund applied, integrated research, education, and extension 
        pursuant to paragraph (10) to be known as the Initiative for 
        Future Agricultural and Food Systems.
            ``(9) National research initiative.--
                    ``(A) Allocation.--The allocation of funds to the 
                National Research Initiative shall be as follows:
                            ``(i) Not less than 30 percent shall be 
                        available to make grants for research to be 
                        conducted by multidisciplinary teams.
                            ``(ii) Not less than 20 percent shall be 
                        available to make grants for research to be 
                        conducted by persons conducting mission-linked 
                        systems research.
                            ``(iii) Not less than 10 percent shall be 
                        available to make grants under subparagraphs 
                        (D), (F), and (G) of paragraph (13) for 
                        research and education strengthening and 
                        research opportunity.
                            ``(iv) Not more than 2 percent may be used 
                        for equipment grants under paragraph (13)(D).
                    ``(B) Matching funds.--Except as provided in this 
                subparagraph, the Secretary may not take the offer or 
                availability of matching funds into consideration in 
                making a grant under this subsection. In the case of 
                grants under paragraph (13)(D), the amount provided 
                under this subsection may not exceed 50 percent of the 
                cost of the special research equipment or other 
                equipment acquired. The Secretary may waive all or part 
                of the matching requirement under this subparagraph in 
                the case of a college, university, or research 
                foundation maintained by a college or university that 
                ranks in the lowest one-third of such colleges, 
                universities, and research foundations on the basis of 
                Federal research funds received if the equipment to be 
                acquired costs not more than $25,000 and has multiple 
                uses within a single research project or is usable in 
                more than 1 research project.
            ``(10) Initiative for future agricultural and food systems 
        matching funds.--As a condition of making a grant under this 
        paragraph, the Secretary shall require the funding of the grant 
        be matched with equal matching funds from a non-Federal source 
        if the grant is--
                    ``(A) for applied research that is commodity-
                specific; and
                    ``(B) not of national scope.
            ``(11) Research priorities.--The research priorities for 
        the programs established in paragraph (8) shall be consistent 
        with the priorities in effect for the National Research 
        Initiative (7 U.S.C. 450i(b)) and Initiative for Future 
        Agricultural and Food Systems (7 U.S.C. 7621) on the day before 
        the date of enactment of this subsection. Priorities under the 
        Initiative for Future Agricultural and Food Systems shall 
        include classical plant and animal breeding.
            ``(12) Program administration.--To the greatest extent 
        possible, the Under Secretary for Research, Education, and 
        Economics, in conjunction with the Directors of the National 
        Agricultural Research Program Offices established in section 
        7104 of the Farm, Nutrition, and Bioenergy Act of 2007, shall 
        allocate these grants to high priority research taking into 
        consideration, when available, the determinations made by the 
        National Agricultural Research, Extension, Education, and 
        Economics Advisory Board (as established under section 1408 of 
        the National Agricultural Research, Extension, and Teaching 
        Policy Act of 1977 (7 U.S.C. 3123).
            ``(13) Special considerations.--In addition to making 
        research grants under paragraph (9), the Secretary may conduct 
        a program to improve research capabilities in the agricultural, 
        food, and environmental sciences and award the following 
        categories of competitive grants. Grants may be awarded--
                    ``(A) to a single investigator or coinvestigators 
                within the same discipline;
                    ``(B) to teams of researchers from different areas 
                of agricultural research and scientific disciplines;
                    ``(C) to multidisciplinary teams that are proposing 
                research on long-term applied research problems, with 
                technology transfer a major component of all such grant 
                proposals;
                    ``(D) to an institution to allow for the 
                improvement of the research, development, technology 
                transfer, and education capacity of the institution 
                through the acquisition of special research equipment 
                and the improvement of agricultural education and 
                teaching; however the Secretary shall use not less than 
                25 percent of the funds made available for grants under 
                this subparagraph to provide fellowships to outstanding 
                pre- and post-doctoral students for research in the 
                agricultural sciences;
                    ``(E) to a single investigator or coinvestigators 
                who are beginning their research careers and do not 
                have an extensive research publication record; however, 
                to be eligible for a grant under this subparagraph, an 
                individual shall be within 5 years of the individual's 
                initial career track position;
                    ``(F) to ensure that the faculty of small and mid-
                sized institutions who have not previously been 
                successful in obtaining competitive grants under this 
                subsection receive a portion of the grants; and
                    ``(G) to improve research capabilities in States 
                (as defined in the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
                3101 et seq.)) in which institutions have been less 
                successful in receiving funding under this subsection, 
                based on a 3-year rolling average of funding levels.
            ``(14) Division of funds.--Of the funds made available to 
        carry out this subsection, 60 percent shall be used to fund 
        programs under paragraph (9) and 40 percent shall be used to 
        fund programs under paragraph (10).
            ``(15) Transfer of funds from the initiative for future 
        agriculture and food systems.--Funds made available pursuant to 
        section 401(b)(3)(D) of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7621 (b)(3)(D)) 
        shall be transferred to the program established under this 
        subsection.
            ``(16) Authorization of appropriations.--
                    ``(A) There is authorized to be appropriated to 
                carry out this subsection $500,000,000 for each of 
                fiscal years 2008 through 2012.
                    ``(B) Funds made available in each fiscal year 
                shall remain available until expended to pay for 
                obligations incurred in that fiscal year.''.
    (b) Repeals.--The following provisions are hereby repealed:
            (1) Section 401 of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (7 U.S.C. 7621), except that 
        section 401(b)(3) of such Act shall not be repealed and shall 
        remain in effect.
            (2) Subsection (2)(d) of the Competitive, Special, and 
        Facilities Research Grant Act of 1965 (7 U.S.C. 450i(d)).

SEC. 7107. CAPACITY BUILDING GRANTS FOR ASCARR INSTITUTIONS.

    (a) Grant Program.--
            (1) In general.--The Secretary shall make competitive 
        grants to ASCARR Institutions to assist the ASCARR Institutions 
        in maintaining and expanding the capacity of the ASCARR 
        Institutions to conduct education, research, and outreach 
        activities relating to--
                    (A) agriculture;
                    (B) renewable resources; and
                    (C) other similar disciplines.
            (2) Use of funds.--An ASCARR Institution that receives a 
        grant under subsection (a)(1) may use the funds made available 
        through the grant to maintain and expand the capacity of the 
        ASCARR Institution--
                    (A) to successfully compete for funds from Federal 
                grants and other sources to carry out educational, 
                research, and outreach activities that address priority 
                concerns of national, regional, State, and local 
                interest;
                    (B) to disseminate information relating to priority 
                concerns to--
                            (i) interested members of the agriculture, 
                        renewable resources, and other relevant 
                        communities;
                            (ii) the public; and
                            (iii) any other interested entity;
                    (C) to encourage members of the agriculture, 
                renewable resources, and other relevant communities to 
                participate in priority education, research, and 
                outreach activities by providing matching funding to 
                leverage grant funds; and
                    (D) through--
                            (i) the purchase or other acquisition of 
                        equipment and other infrastructure (not 
                        including alteration, repair, renovation, or 
                        construction of buildings);
                            (ii) the professional growth and 
                        development of the faculty of the ASCARR 
                        Institution; and
                            (iii) the development of graduate 
                        assistantships.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each fiscal year 2008 through 2012.

SEC. 7108. ESTABLISHMENT OF RESEARCH LABORATORIES FOR ANIMAL DISEASES.

    (a) Definitions.--In this section--
            (1) Animal disease.--The term ``animal disease'' has the 
        meaning given the term by the Secretary.
            (2) Import.--The term ``import'' means to move from a place 
        outside the territorial limits of the United States to a place 
        within the territorial limits of the United States.
            (3) Live virus.--The term ``live virus'' means a live virus 
        of foot-and-mouth disease or a live virus of any other animal 
        disease that is a threat to the health of livestock, as 
        determined by the Secretary.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (5) State.--The term ``State'' means any of the States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands of the United States, or any territory or possession of 
        the United States.
            (6) United states.--The term ``United States'' means all of 
        the States.
    (b) Animal Disease Research.--
            (1) Establishment of research facilities.--The Secretary is 
        authorized to establish research laboratories, including the 
        acquisition of necessary land, buildings, or facilities, for 
        research on animal diseases in the United States.
            (2) Activities authorized when disease threatens 
        livestock.--To the extent the Secretary determines that an 
        animal disease constitutes a threat to the livestock industry, 
        the Secretary is authorized to conduct research, diagnostics, 
        and other activities related to the animal disease.
    (c) Restrictions Regarding Live Virus.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        and (4), a person or State or Federal agency may not--
                    (A) import a live virus into the United States;
                    (B) transport a live virus within the United 
                States; and
                    (C) store and maintain a live virus at a research 
                facility.
            (2) Authority of the secretary.--The Secretary of 
        Agriculture may--
                    (A) import a live virus into the United States;
                    (B) transport a live virus within the United 
                States; and
                    (C) store and maintain a live virus at a research 
                facility.
            (3) Permits.--
                    (A) In general.--If the Secretary determines that 
                it is in the public interest to do so, the Secretary 
                may issue a permit to allow a private person or a State 
                or Federal agency to--
                            (i) import a live virus into the United 
                        States;
                            (ii) transport a live virus within the 
                        United States; and
                            (iii) store and maintain a live virus at a 
                        research facility.
                    (B) Permit terms.--A permit issued under this 
                paragraph shall be subject to terms and conditions 
                prescribed by the Secretary.
            (4) Limitation.--Nothing in this section shall apply to the 
        importation, transportation, storage, and maintenance of any 
        live virus governed by regulations promulgated pursuant to 
        section 351A of the Public Health Service Act (42 U.S.C. 262a) 
        or the Agricultural Bioterrorism Protection Act of 2002 (7 
        U.S.C. 8401).
    (d) Authorization of Appropriations.--In addition to funds 
otherwise available for the control or eradication of animal diseases, 
there are authorized to be appropriated such sums as necessary to carry 
out this section.

SEC. 7109. GRAZINGLANDS RESEARCH LABORATORY.

    Notwithstanding any other provision of law, without specific 
authorization by an Act of Congress, the Federal land and facilities at 
El Reno, Oklahoma, currently administered by the Secretary of 
Agriculture as the Grazinglands Research Laboratory, shall not at any 
time, in whole or part, be declared to be excess or surplus Federal 
property under chapter 5 of subtitle I of title 40, United States Code, 
or otherwise be conveyed or transferred in whole or in part.

SEC. 7110. RESEARCHER TRAINING.

    (a) Requirement.--The Secretary shall require that persons 
receiving funds under section 1668(g)(2) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5921(g)(2)) to conduct 
research concerning genetically engineered plants, including seed and 
other propagative materials, complete a training program approved by 
the Secretary.
    (b) Certification of Third-Party Providers.--Not later than 180 
days after the date of the enactment of this Act, the Secretary shall 
establish a system for approving individuals and entities to provide 
training under subsection (a), including criteria for the evaluation of 
trainers or potential trainers.
    (c) Expertise.--In establishing criteria for the evaluation of 
potential trainers, the Secretary shall ensure that individuals and 
entities with expertise in quality management systems, plant breeding 
and genetics, and the technical aspects of the Federal regulatory 
process for agricultural biotechnology, are eligible to become approved 
trainers under subsection (b).

SEC. 7111. FORT RENO SCIENCE PARK RESEARCH FACILITY.

    The Secretary of Agriculture may lease land to the University of 
Oklahoma at the Grazinglands Research Laboratory at El Reno, Oklahoma, 
on such terms and conditions as the University and the Secretary may 
agree in furtherance of cooperative research and existing easement 
arrangements.

SEC. 7112. ASSESSING THE NUTRITIONAL COMPOSITION OF BEEF PRODUCTS.

    (a) Study.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall award a grant, contract, or other 
agreement with an appropriate land-grant university to update the 
Department of Agriculture's Nutrient Composition Handbook for Beef, 
also known as Handbook #8-13. The Handbook shall incorporate accurate 
and current data collected by the university to be used by Federal 
agencies, private industries, health organizations, and consumers to 
determine important diet and health-related issues associated with the 
consumption of beef and beef products.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section to be 
available until expended.

SEC. 7113. SENSE OF CONGRESS REGARDING FUNDING FOR HUMAN NUTRITION 
              RESEARCH.

    It is the sense of the Congress that--
            (1) human nutrition research has the potential for 
        improving the health status of the American public through 
        studies that help determine--
                    (A) the food and beverage intakes of Americans and 
                the nutrient composition of the food supply;
                    (B) the relationship between diet and obesity, 
                particularly to prevent childhood obesity;
                    (C) the authoritative, peer-reviewed, science-based 
                evidence that forms the basis for Federal nutrition 
                policy, dietary guidelines and programs; and
                    (D) the nutrient requirements for individuals at 
                various stages in the lifespan and for vulnerable 
                populations, particularly children and the elderly;
            (2) human nutrition research holds the potential for 
        identifying factors in crops and livestock that provide 
        nutrition benefits to humans and add value for producers;
            (3) the potential cost savings to Federal health programs, 
        combined with the boost in revenues for farmers who produce 
        nutritionally enhanced foods, justifies an increase in funding 
        to a level sufficient to conduct this essential research; and
            (4) the USDA regional human nutritional research centers 
        have unique value in linking producer and consumer interests 
        into investigations of food and human nutrition issues and 
        conducting long-term nutrition studies; and activities at these 
        centers should be preserved and coordinated with other human 
        nutrition research activities.

  Subtitle B--National Agricultural Research, Extension, and Teaching 
                           Policy Act of 1977

SEC. 7201. ADVISORY BOARD.

    Section 1408(g)(1) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(g)(1)) is 
amended by striking ``$350,000'' and inserting ``$500,000''.

SEC. 7202. ADVISORY BOARD TERMINATION.

    Section 1408(h) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7203. RENEWABLE ENERGY COMMITTEE.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 is amended by inserting after section 1408A the following:

``SEC. 1408B. RENEWABLE ENERGY COMMITTEE.

    ``(a) Initial Members.--Not later than 90 days after the date of 
the enactment of this section, the executive committee of the Advisory 
Board shall establish and appoint the initial members of a permanent 
renewable energy committee that shall be responsible for studying the 
scope and effectiveness of research, extension, and economics programs 
affecting the renewable energy industry.
    ``(b) Non-Advisory Board Members.--Individuals who are not members 
of the Advisory Board may be appointed as members of the renewable 
energy committee. Members of the renewable energy committee shall serve 
at the discretion of the executive committee.
    ``(c) Report by Renewable Energy Committee.--Not later than 180 
days after the establishment of the renewable energy committee, and 
annually thereafter, the renewable energy committee shall submit to the 
Advisory Board a report containing the findings of its study under 
subsection (a). The renewable energy committee shall include in each 
report its recommendations.
    ``(d) Coordination of Functions.--In carrying out its functions, 
the Renewable Energy Committee shall coordinate with the Biomass 
Research and Development Act Committee.
    ``(e) Matters To Be Considered in Budget Recommendation.--In 
preparing the annual budget recommendations for the Department, the 
Secretary shall take into consideration those findings and 
recommendations contained in the most recent report of the renewable 
energy committee that are adopted by the Advisory Committee.
    ``(f) Report by the Secretary.--In the budget material submitted to 
Congress by the Secretary in connection with the budget submitted 
pursuant to section 1105 of title 31, United States Code, for a fiscal 
year, the Secretary shall include a report describing how the Secretary 
addressed each recommendation of the renewable energy committee 
described in subsection (e) of this section.''.

SEC. 7204. SPECIALTY CROP COMMITTEE REPORT.

    Section 1408A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3123a(c)) is amended by 
adding at the end the following:
            ``(4) Analyses of the specialty crop sector, including the 
        impact of changes in domestic and international markets, 
        production and new product technologies, alternative policies 
        and macroeconomic conditions on specialty crop production, use, 
        farm and retail prices, and farm income and financial stability 
        from a national, regional, and farm-level perspective.
            ``(5) Review of the economic state of the specialty crop 
        industry from a regional perspective.
            ``(6) Development of data that provides applied information 
        useful to specialty crop growers, their associations, and other 
        interested beneficiaries in evaluating that industry from a 
        regional and national perspective.''.

SEC. 7205. INCLUSION OF UDC IN GRANTS AND FELLOWSHIPS FOR FOOD AND 
              AGRICULTURAL SCIENCES EDUCATION.

    Section 1417 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3152) is amended--
            (1) in subsection (b), by inserting ``including the 
        University of the District of Columbia,'' after 
        ``universities,''; and
            (2) in subsection (d)(2), by inserting ``, including the 
        University of the District of Columbia,'' after 
        ``universities''.

SEC. 7206. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
              EDUCATION.

    (a) Education Teaching Programs.--Section 1417(j) of the National 
Agricultural Research, Extension and Teaching Policy Act of 1977 (7 
U.S.C. 3152(j)) is amended--
            (1) in the subsection heading, by striking ``Secondary 
        Education and 2-Year Postsecondary Education Teaching 
        Programs'' and inserting ``Secondary Education, 2-Year 
        Postsecondary Education, and Agriculture in the K-12 
        Classroom''; and
            (2) in paragraph (3)--
                    (A) by striking ``secondary schools, and 
                institutions of higher education that award an 
                associate's degree'' and inserting ``secondary schools, 
                institutions of higher education that award an 
                associate's degree, other institutions of higher 
                education, and nonprofit organizations'';
                    (B) in subparagraph (E), by striking ``and'' at the 
                end;
                    (C) in subparagraph (F), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(G) to support current agriculture in the 
                classroom programs for grades K-12.''.
    (b) Authorization of Appropriations.--Section 1417(l) of the 
National Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(l)) is amended by striking ``2007'' and inserting 
``2012''.
    (c) Report.--Section 1417 of the National Agricultural Research, 
Extension and Teaching Policy Act of 1977 is amended by adding at the 
end the following:
    ``(m) Report.--The Secretary shall submit an annual report to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition and Forestry of the Senate 
detailing the distribution of funds used to implement the teaching 
programs under subsection (j).''.

SEC. 7207. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
              AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL COMMODITIES 
              AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7208. POLICY RESEARCH CENTERS.

    Section 1419A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended--
            (1) in subsection (b), by inserting ``, including the Food 
        Agricultural Policy Research Institute and the Agricultural and 
        Food Policy Center'' after ``research institutions and 
        organizations''; and
            (2) in subsection (d), by striking ``2007'' and inserting 
        ``2012''.

SEC. 7209. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
              PROGRAM.

    Section 1424(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7210. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
              RESEARCH.

    Section 1424A(d) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7211. NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(3)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7212. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) is amended in the 
first sentence by striking ``2007'' and inserting ``2012''.

SEC. 7213. COOPERATION AMONG ELIGIBLE INSTITUTIONS.

    Section 1433 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by adding at the end the 
following new subsection:
    ``(g) Cooperation Among Eligible Institutions.--The Secretary, to 
the maximum extent practicable, shall encourage eligible institutions 
to cooperate in setting research priorities under this section through 
the conduct of regular regional and national meetings.''.

SEC. 7214. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
              PROBLEMS.

    Section 1434(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7215. AUTHORIZATION LEVEL OF EXTENSION AT 1890 LAND-GRANT 
              COLLEGES.

    Section 1444(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221(a)(2)) is 
amended by striking ``15 percent'' and inserting ``20 percent''.

SEC. 7216. AUTHORIZATION LEVEL FOR AGRICULTURAL RESEARCH AT 1890 LAND-
              GRANT COLLEGES.

    Section 1445(a)(2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)(2)) is 
amended by striking ``25 percent'' and inserting ``30 percent''.

SEC. 7217. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
              AT THE DISTRICT OF COLUMBIA LAND GRANT UNIVERSITY.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting after 
section 1447 the following:

``SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
              FACILITIES AT THE DISTRICT OF COLUMBIA LAND GRANT 
              UNIVERSITY.

    ``(a) Purpose.--It is declared to be the intent of Congress to 
assist the land grant university in the District of Columbia, as 
established under section 208 of the District of Columbia Public 
Postsecondary Education Reorganization Act of October 26, 1974 (Public 
Law 93-471) in efforts to acquire, alter, or repair facilities or 
relevant equipment necessary for conducting agricultural research.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for the purposes of carrying out the provisions of this 
section $750,000 for each of fiscal years 2008 through 2012.''.

SEC. 7218. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
              AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
              UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7219. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

    Section 1448 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3222c) is amended by striking 
``2007'' each place it appears in subsections (a)(1) and (f) and 
inserting ``2012''.

SEC. 7220. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
              ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3222d(c)) is amended in the 
first sentence by striking ``for each of fiscal years 2003 through 
2007,''.

SEC. 7221. HISPANIC-SERVING INSTITUTIONS.

    Section 1455(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7222. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    (a) In General.--The National Agricultural Research, Extension and 
Teaching Policy Act of 1977 is amended by inserting after section 1455 
the following:

``SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES AND UNIVERSITIES.

    ``(a) Definitions.--As used in this section:
            ``(1) Endowment fund.--The term `endowment fund' means the 
        Hispanic-Serving Agricultural Colleges and Universities Fund 
        established under subsection (b).
            ``(2) Hispanic-serving agricultural college and 
        universities.--The term `Hispanic-serving agricultural colleges 
        and universities' means a college or university that--
                    ``(A) qualifies as a `Hispanic-serving 
                institution'; and
                    ``(B) offers associate, bachelor's, or other 
                accredited degree programs in agriculture-related 
                fields, as determined by the Secretary.
    ``(b) Endowment.--
            ``(1) In general.--In accordance with this subsection, the 
        Secretary of the Treasury shall establish a Hispanic-Serving 
        Agricultural Colleges and Universities Fund. The Secretary of 
        the Treasury may enter into such agreements as are necessary to 
        carry out this subsection.
            ``(2) Deposit to the endowment fund.--The Secretary of the 
        Treasury shall deposit in the endowment fund any--
                    ``(A) amounts made available through Acts of 
                appropriations, which shall be the endowment fund 
                corpus; and
                    ``(B) interest earned on the endowment fund corpus.
            ``(3) Investments.--The Secretary of the Treasury shall 
        invest the endowment fund corpus and income in interest-bearing 
        obligations of the United States.
            ``(4) Withdrawals and expenditures.--The Secretary of the 
        Treasury may not make a withdrawal or expenditure from the 
        endowment fund corpus. On September 30, 2008, and each 
        September 30 thereafter, the Secretary of the Treasury shall 
        withdraw the amount of the income from the endowment fund for 
        the fiscal year and warrant the funds to the Secretary who, 
        after making adjustments for the cost of administering the 
        endowment fund, shall distribute the adjusted income as 
        follows:
                    ``(A) 60 percent distributed among the Hispanic-
                serving agricultural colleges and universities on a pro 
                rata basis based on each institution's Hispanic 
                enrollment count.
                    ``(B) 40 percent distributed in equal shares to the 
                Hispanic-serving agricultural colleges and 
                universities.
            ``(5) Authorization of appropriations.--
                    ``(A) In general.--For fiscal year 2008, and for 
                each fiscal year thereafter, there is authorized to be 
                appropriated to the Department of Agriculture an amount 
                equal to--
                            ``(i) $80,000; multiplied by
                            ``(ii) the number of Hispanic-serving 
                        agricultural colleges and universities.
                    ``(B) Payments.--For fiscal year 2008, and for each 
                fiscal year thereafter, the Secretary shall pay to the 
                treasurer of each Hispanic-Serving agricultural college 
                and university an amount equal to--
                            ``(i) the total amount made available by 
                        appropriations pursuant to paragraph (1); 
                        divided by
                            ``(ii) the number of Hispanic-serving 
                        agricultural colleges and universities.
                    ``(C) Use of funds.--Amounts authorized to be 
                appropriated under this subsection shall be used in the 
                same manner as is prescribed for colleges under the Act 
                of August 30, 1890 (commonly known as the Second 
                Morrill Act), and except as otherwise provided in this 
                subsection, the requirements of such Act shall apply to 
                the Hispanic-serving agricultural colleges and 
                universities.
                    ``(D) Amounts appropriated pursuant to this 
                paragraph shall be held and considered to have been 
                granted to Hispanic-serving agricultural colleges and 
                universities to establish an endowment pursuant to 
                subsection (b).
    ``(c) Institutional Capacity Building Grants.--
            ``(1) Purpose and allowable uses.--For fiscal year 2008, 
        and for each fiscal year thereafter, the Secretary shall make 
        institutional capacity building grants to assist Hispanic-
        serving agricultural colleges and universities not including 
        alteration, repair, renovation, or construction of buildings.
            ``(2) Criteria for institutional capacity building 
        grants.--
                    ``(A) Requirements for grants.--The Secretary shall 
                make grants under this subsection on the basis of a 
                competitive application process under which Hispanic-
                serving agricultural colleges and universities may 
                submit applications to the Secretary in such form and 
                manner as the Secretary may prescribe.
                    ``(B) Broader participation and geographic 
                diversity.--All Hispanic-serving agricultural colleges 
                and universities shall be eligible to compete for 
                grants under this subsection.
                    ``(C) Demonstration of need.--The Secretary shall 
                require as part of an application for a grant under 
                this subsection, a demonstration of need based on 
                criteria stated in subsection (b)(5). The Secretary may 
                award a grant under this subsection only to an 
                applicant that demonstrates a failure to obtain funding 
                for a project after making a reasonable effort to 
                otherwise obtain the funding.
                    ``(D) Payment of non-federal share.--A grant 
                awarded under this subsection shall be made only if the 
                recipient of the grant pays a non-Federal share in an 
                amount specified by the Secretary and based upon 
                assessed institutional needs.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this subsection, such sums as are necessary for fiscal year 
        2008, and for each fiscal year thereafter.
    ``(d) Competitive Grants Program.--The Secretary shall establish a 
competitive grants program to fund basic and applied research at 
Hispanic-serving agricultural colleges and universities in agriculture, 
human nutrition, food science, bioenergy, and environmental science. 
There are authorized to be appropriated to the Secretary such sums as 
are necessary to carry out this subsection for fiscal year 2008 and for 
each fiscal year thereafter.''.
    (b) Extension Funding.--Section 3 of the Act of May 8, 1914, 
(commonly known as the Smith-Lever Act), is amended--
            (1) in subsection (b), by adding at the end the following 
        new paragraph:
    ``(4) There are authorized to be appropriated for fiscal year 2008, 
and for each fiscal year thereafter, such sums as are necessary for the 
purposes set forth in subparagraph (D). Such sums shall be in addition 
to the sums appropriated for the several States and Puerto Rico, the 
Virgin Islands, and Guam under the provisions of this section. Such 
sums shall be distributed on the basis on a competitive application 
process to be developed and implemented by the Secretary and paid by 
the Secretary to the State institutions established in accordance with 
the provisions of the Act of July 2, 1862 (commonly known as the First 
Morrill Act) and administered by such institutions through cooperative 
agreements with the Hispanic-serving agricultural colleges and 
universities in the States of the institutions in accordance with 
regulations that the Secretary shall adopt.''; and
            (2) in subsection (f), by inserting ``or Hispanic-serving 
        agricultural colleges and universities'' after ``Institution''.

SEC. 7223. INTERNATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
              EDUCATION.

    Section 1458(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (B), by adding ``and'' at the 
                end; and
                    (C) by adding at the end the following:
                    ``(C) giving priority to those institutions with 
                existing memorandums of understanding, agreements, or 
                other formal ties to United States institutions, or 
                State or Federal agencies;'';
            (2) in paragraph (3), by inserting ``Hispanic-serving 
        agricultural colleges and universities,'' after ``universities, 
        as defined in section 1456 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3289),'';
            (3) in paragraph (7)(A), by striking ``and land-grant 
        colleges and universities'' and inserting ``, land-grant 
        colleges and universities, and Hispanic-serving agricultural 
        colleges and universities, as defined in section 1456 of the 
        National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3289)'';
            (4) in paragraph (9)(A), by striking ``or other colleges 
        and universities'' and inserting ``, or other colleges and 
        universities, or Hispanic-serving agricultural colleges and 
        universities, as defined in section 1456 of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3289)''; and
            (5) by adding at the end the following:
            ``(11) establish a program for the purpose of providing 
        fellowships to United States or foreign students to study at 
        foreign agricultural colleges and universities working under 
        agreements provided for under paragraph (3).''.

SEC. 7224. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
              AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7225. LIMITATION ON INDIRECT COSTS FOR AGRICULTURAL RESEARCH, 
              EDUCATION, AND EXTENSION PROGRAMS.

    Section 1462(a) of the National Agriculture Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3310(a)) is amended by 
striking ``a competitive'' and inserting ``any''.

SEC. 7226. RESEARCH EQUIPMENT GRANTS.

    Section 1462A(e) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3310a(e)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7227. UNIVERSITY RESEARCH.

    Section 1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by striking 
``2007'' each place it appears in subsections (a) and (b) and inserting 
``2012''.

SEC. 7228. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7229. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7230. AQUACULTURE ASSISTANCE PROGRAMS.

    Section 1477 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7231. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7232. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND RESPONSE.

    Section 1484(a) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7233. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM 
              FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

    (a) Distance Education Grants for Insular Areas.--Section 1490(f) 
of the National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3362(f)) is amended by striking ``2007'' and 
inserting ``2012''.
    (b) Resident Instruction Grants for Insular Areas.--Section 1491 of 
the National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3363) is amended--
            (1) by redesignating subsection (e) as subsection (c); and
            (2) in subsection (c) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''.

SEC. 7234. HISPANIC SERVING INSTITUTIONS.

    The text of section 1404 of the Research Act of 1977 is amended to 
read as follows: ``The term `Hispanic Serving Institution' has the 
meaning given that term in section 502(a)(5) of the Higher Education 
Act of 1965 (20 U.S.C. 1101a(a)(5).''.

SEC. 7235. SPECIALTY CROPS POLICY RESEARCH INSTITUTE.

    Section 1419A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended by adding at the 
end the following:
    ``(e) Specialty Crops Policy Research Institute.--
            ``(1) Establishment.--The Food Agricultural Policy Research 
        Institute shall establish a satellite institute, called the 
        Specialty Crops Policy Research Institute, hereinafter referred 
        to as the Institute, at accredited research universities within 
        States with significant specialty crop industries to fulfill 
        the objectives described in subsection (e)(3) of this section.
            ``(2) Management.--The Institute shall be coordinated and 
        managed by an appointed university and will have the discretion 
        to coordinate and facilitate the Institute's economic and 
        policy research activities and those of additional member 
        universities and institutions.
            ``(3) Institute objectives.--Consistent with the provisions 
        of subsections (a) and (c) of this section, the Institute 
        shall--
                    ``(A) produce and disseminate analysis of the 
                specialty crop sector, including the impact of changes 
                in domestic and international markets, production, new 
                product technologies, web-based risk management tools, 
                alternative policies and macroeconomic conditions on 
                specialty crop production, use, farm and retail prices, 
                and farm income and financial stability from a 
                national, regional, and farm-level perspective; and
                    ``(B) produce and disseminate an annual review of 
                the economic state of the specialty crop industry 
                nationally, regionally, and by-state.
            ``(4) Authorization of appropriation.--There are authorized 
        to be appropriated such sums as are necessary in each fiscal 
        year through 2012 to carry out this section.''.

SEC. 7236. EMPHASIS OF HUMAN NUTRITION INITIATIVE.

    Section 1424(b) of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3174(b)) is amended--
            (1) in paragraph (1), by striking ``and,'';
            (2) in paragraph (2), by striking the comma and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(3) proposals that examine the efficacy of current 
        agriculture policies in promoting the health and welfare of 
        economically disadvantaged populations,''.

SEC. 7237. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES FACILITIES 
              AT INSULAR AREA LAND-GRANT INSTITUTIONS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by inserting after 
section 1447A the following:

``SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCES 
              FACILITIES AND EQUIPMENT AT INSULAR AREA LAND-GRANT 
              INSTITUTIONS.

    ``(a) Purpose.--It is declared to be the intent of Congress to 
assist the land grant institutions in the insular areas in efforts to 
acquire, alter, or repair facilities or relevant equipment necessary 
for conducting agricultural research.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for the purposes of carrying out the provisions of this 
section $8,000,000 for each of fiscal years 2008 through 2012.
    ``(c) Method of Awarding Grants.--Grants awarded pursuant to this 
section shall be made in such amounts and under such terms and 
conditions as the Secretary shall determine necessary for carrying out 
the purposes of this section.
    ``(d) Regulations.--The Secretary may promulgate such rules and 
regulations as the Secretary may consider necessary to carry out the 
provisions of this section.''.

   Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990

SEC. 7301. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5844(b)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7302. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5855(c)) is amended by striking ``1991 through 
1997'' and inserting ``2008 through 2012''.

SEC. 7303. PARTNERSHIPS.

    Section 1672(d) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(d)) is amended by striking ``may'' and 
inserting ``shall''.

SEC. 7304. AFLATOXIN RESEARCH AND EXTENSION.

    Section 1672(e)(3) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925(e)(3)) is amended by striking ``and 
controlling aflatoxin in the food and feed chains.'' and inserting 
``improving, and eventually commercializing alfatoxin controls in corn 
and other affected agricultural products and crops.''.

SEC. 7305. HIGH-PRIORITY RESEARCH AND EXTENSION AREAS.

    Section 1672(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(e)) is amended by adding the following:
            ``(46) Farmed and wild cervid disease and applied genetics 
        research.--Research grants may be made under this section for 
        the purpose of investigating the major infectious, parasitic 
        and toxic diseases of importance to farmed and wild cervids.
            ``(47) Air emissions from livestock operations.--Research 
        and extension grants may be made under this section for the 
        purpose of conducting field verification tests and developing 
        mitigation options for air emissions from animal feeding 
        operations.
            ``(48) Swine genome project.--Research grants may be made 
        under this section to conduct swine genome research and to map 
        the swine genome.
            ``(49) Cattle fever tick program.--Research and extension 
        grants may be made to study cattle fever ticks to facilitate 
        understanding of the role of wildlife in the persistence and 
        spread of cattle fever ticks; to develop advanced methods for 
        eradication of cattle fever ticks; and to improve management of 
        diseases related to cattle fever ticks that are associated with 
        wildlife, livestock, and human health.
            ``(50) Colony collapse disorder program.--Research and 
        extension grants may be made to survey and collect data of 
        honey bee colony production and health; research various 
        factors possibly contributing to or associated with colony 
        collapse disorder; and develop mitigative and preventative 
        measures to improve bee health.
            ``(51) Synthetic gypsum from electric power plants 
        research.--Research and extension grants may be made to study 
        the uses of synthetic gypsum from electric power plants to 
        remediate soil and nutrient losses.
            ``(52) Cranberry research program.--Research and extension 
        grants may be made to study new technologies to assist 
        cranberry growers in complying with Federal and State 
        environmental regulations, increase production, develop new 
        growing techniques, establish more efficient growing 
        methodologies, and educate farmers about sustainable growth 
        practices.
            ``(53) Sorghum research initiative.--Research and extension 
        grants may be made to study the use of sorghum as a bioenergy 
        feedstock, promote diversification in, and the environmental 
        sustainability of sorghum production, and promote water 
        conservation through the use of sorghum.
            ``(54) Bean health research program.--Research and 
        extension grants may be made to study bean-based solutions to 
        chronic health and nutritional concerns in both developed and 
        developing countries, and to increase bean consumption.''.

SEC. 7306. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5925(h)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7307. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5925a) is amended--
            (1) by redesignating subsection (g) as subsection (f);
            (2) in subsection (d), by inserting ``or address unique 
        regional concerns'' after ``entities'';
            (3) in subsection (e)(1)(B), by inserting ``and dairy 
        cattle waste'' after ``swine waste''; and
            (4) in subsection (f) (as so redesignated in paragraph 
        (1)), by striking ``2007'' and inserting ``2012''.

SEC. 7308. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926(h)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7309. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by striking ``2007'' 
and inserting ``2012''.

SEC. 7310. ORGANIC RESEARCH.

    (a) In General.--The Organic Agriculture Research and Extension 
Initiative (section 1672B of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925b)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (5), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (6), at the end by striking the 
                period and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(7) examining optimal conservation and environmental 
        outcomes relating to organically produced agricultural 
        products; and
            ``(8) developing new and improved seed varieties that are 
        particularly suited for organic agriculture.''; and
            (2) by adding at the end the following--
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated $25,000,000 for each of fiscal years 2009 through 2012.
    ``(g) Additional Funding.--In addition to funds made available 
under subsection (f), of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section a total of 
$25,000,000 for fiscal years 2008 through 2012.''.
    (b) Coordination.--In carrying out this section, the Secretary 
shall ensure that the Director of the applicable Program Office 
established under section 7104(a) coordinates projects and activities 
carried out under this section to ensure, to the maximum extent 
practicable, that duplication of effort is eliminated or minimized.

SEC. 7311. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 7312. NEW ERA RURAL TECHNOLOGY PROGRAM.

    (a) Functions.--
            (1) The Secretary shall establish the ``New Era Rural 
        Technology Program'', to make grants available for technology 
        development, applied research, and training to aid in the 
        development of an agriculture-based renewable energy workforce. 
        This initiative shall support the fields of bioenergy, pulp and 
        paper manufacturing, and for agriculture-based renewable energy 
        resources.
            (2) To receive funding under this section an entity--
                    (A) shall be a rural community college or advanced 
                technological center, in existence on the date of the 
                enactment of this Act, that participates in 
                agricultural or bioenergy research and applied 
                research;
                    (B) shall have a proven record of development and 
                implementation of programs to meet the needs of 
                students, educators, and business and industry to 
                supply the agriculture-based, renewable energy or pulp 
                and paper manufacturing fields with certified 
                technicians as determined by the Secretary of 
                Agriculture; and
                    (C) shall have the ability to leverage existing 
                partnerships and occupational outreach and training 
                programs for secondary schools, 4-year institutions and 
                relevant non-profit organizations.
    (b) Limitation on Authorization of Appropriations.--To carry out 
this section, there are authorized to be appropriated such sums as 
necessary for each of the fiscal years 2008 through 2012.
    (c) Community Colleges.--In this section, the term ``community 
college'' means an institution of higher education--
            (1) that admits as regular students persons who are beyond 
        the age of compulsory school attendance in the State in which 
        the institution is located and who have the ability to benefit 
        from the training offered by the institution;
            (2) that does not provide an educational program for which 
        it awards a bachelor's degree, or an equivalent degree; and
            (3) that--
                    (A) provides an educational program of not less 
                than two years that is acceptable for full credit 
                toward such a degree; or
                    (B) offers a two-year program in engineering, 
                technology, mathematics, or the physical, chemical or 
                biological sciences, designed to prepare a student to 
                work as a technician or at the semiprofessional level 
                in engineering, scientific, or other technological 
                fields requiring the understanding and application of 
                basic engineering, scientific, or mathematical 
                principles of knowledge.
    (d) Grant Priority.--Preference shall be given to rural community 
colleges working in partnership to improve information sharing capacity 
and to maximize the ability to meet the requirements of this section.

Subtitle D--Agricultural Research, Extension, and Education Reform Act 
                                of 1998

SEC. 7401. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
              RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7402. PRECISION AGRICULTURE.

    Section 403(i)(1) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is amended by 
striking ``2007'' and inserting ``2012''.

SEC. 7403. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7624(e)(2)) is 
amended by striking ``2007'' and inserting ``2012''.
    (b) Authorization of Appropriations.--Section 404(h) of the 
Agricultural Research, Extension, and Education Reform Act of 1998 (7 
U.S.C. 7624(h)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7404. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7405. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
              GRANTS PROGRAM.

    Section 406(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(f)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7406. FUSARIUM GRAMINEARUM GRANTS.

    Section 408 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
            (1) in the heading for such section, by striking ``grant'' 
        and inserting ``grants''; and
            (2) in subsection (e), by striking ``2007'' and inserting 
        ``2012''.

SEC. 7407. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    Section 409(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7629(b)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7408. GRANTS FOR YOUTH ORGANIZATIONS.

    Section 410 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7630) is amended by striking subsections 
(b) and (c) and inserting the following:
    ``(b) Flexibility.--The Secretary shall provide maximum flexibility 
in content delivery to each organization receiving funds under this 
section so as to ensure that the unique goals of each organization, as 
well as the local community needs are fully met.
    ``(c) Redistribution of Funding Within Organizations Authorized.--
Recipients of funds under this section are authorized to redistribute 
all or part of the funds received to individual councils or local 
chapters within such organization without further need of approval from 
the Secretary.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2008 through 2012.''.

SEC. 7409. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
              DEVELOPING COUNTRIES.

    Section 411(c) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7631(c)) is amended by striking 
``2007'' and inserting ``2012''.

SEC. 7410. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS RESEARCH 
              INITIATIVE.

    Title IV of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7621 et seq.) is amended by adding at the 
end the following:

``SEC. 412. AGRICULTURAL BIOENERGY AND BIOBASED PRODUCTS RESEARCH 
              INITIATIVE.

    ``(a) Definition.--For the purposes of this section, the term 
`Initiative' means the agricultural bioenergy and biobased products 
research initiative established by subsection (b).
    ``(b) Establishment.--There is established within the Department a 
bioenergy and biobased products research initiative to enhance the 
production, sustainability, and conversion of biomass to renewable 
fuels and related products.
    ``(c) Laboratory Network.--
            ``(1) In general.--The Secretary shall carry out the 
        Initiative through a bioenergy and biobased product laboratory 
        network that may consist of--
                    ``(A) Federal agencies;
                    ``(B) national laboratories;
                    ``(C) colleges and universities;
                    ``(D) research institutions and organizations;
                    ``(E) private organizations or corporations;
                    ``(F) State agricultural experiment stations; and
                    ``(G) individuals.
            ``(2) Research and development objectives.--The laboratory 
        network shall focus on improving biomass production and 
        sustainability, and improving biomass conversion in 
        biorefineries, by--
                    ``(A) leveraging the broad scientific capabilities 
                of the Department in--
                            ``(i) plant genetics and breeding;
                            ``(ii) crop production;
                            ``(iii) soil and water science;
                            ``(iv) use of agricultural waste;
                            ``(v) carbohydrate, lipid, protein, and 
                        lignin chemistry and biochemistry;
                            ``(vi) enzyme development;
                            ``(vii) fermentation;
                            ``(viii) microbiology;
                            ``(ix) cellulosic gasification; and
                            ``(x) ethanol by-product utilization.
                    ``(B) supporting bioenergy and biobased product 
                research that will enhance the production, 
                sustainability, and conversion of biomass to renewable 
                fuels and related products; and
                    ``(C) supporting bioenergy and biobased product 
                research, and the dissemination of that research, that 
                will assist in achieving the goals of this section.
    ``(d) Coordination.--In carrying out the Initiative, the Secretary 
shall ensure that the Director of the applicable Program office 
established under section 7104(a)(1) shall coordinate projects and 
activities carried out under the Initiative with projects and 
activities under the Biomass Research and Development Act of 2000 (7 
U.S.C. 8601 et seq) to ensure, to the maximum extent practicable, 
that--
            ``(1) duplication of effort is eliminated or minimized; and
            ``(2) the respective strengths of the Department and the 
        Department of Energy are maximized.
    ``(e) Research Projects.--In carrying out this section, the 
Secretary shall award grants on a competitive basis.
    ``(f) Administration.--
            ``(1) In general.--For grants awarded under subsection 
        (e)(2), the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer review in accordance 
                with section 103 of the Agricultural Research, 
                Extension, and Education Reform Act of 1998 (7 U.S.C. 
                7613); and
                    ``(C) award grants on the basis of merit, quality, 
                and relevance.
            ``(2) Term.--A grant under this section shall have a term 
        that does not exceed 5 years.
            ``(3) Other conditions.--The Secretary may set such other 
        conditions on the award of a grant under this section as the 
        Secretary determines appropriate.
    ``(g) Buildings and Facilities.--Funds made available under this 
section shall not be used for the construction of a new building or 
facility or the acquisition, expansion, remodeling, or alteration of an 
existing building or facility (including site grading and improvement 
and architect fees).
    ``(h) Funding.--There is authorized to be appropriated $50,000,000 
for each of fiscal years 2008 through 2012 to carry out this 
section.''.

SEC. 7411. SPECIALTY CROP RESEARCH INITIATIVE.

    (a) In General.--Title IV of the Agricultural Research, Extension, 
and Education Reform Act of 1998 (7 U.S.C. 7621 et seq.), as amended by 
section 7410, is further amended by adding at the end the following:

``SEC. 413. SPECIALTY CROP RESEARCH INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Initiative.--The term `Initiative' means the 
        specialty crop research initiative established by subsection 
        (b).
            ``(2) Specialty crop.--The term `specialty crop' shall have 
        the meaning given that term in section 3(1) of the Specialty 
        Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note).
    ``(b) Establishment.--There is established within the Department a 
specialty crop research initiative to address the critical needs of the 
specialty crop industry by developing and disseminating science-based 
tools to address needs of specific crops and their regions, including--
            ``(1) research in--
                    ``(A) plant breeding, genetics, and genomics to 
                improve crop characteristics, such as--
                            ``(i) product appearance;
                            ``(ii) environmental responses and 
                        tolerances;
                            ``(iii) nutrient management;
                            ``(iv) pest and disease management; and
                            ``(v) enhanced phytonutrient content;
                    ``(B) safety;
                    ``(C) quality;
                    ``(D) yield;
                    ``(E) taste;
                    ``(F) shelf life;
                    ``(G) policy and marketing; and
                    ``(H) specialty crop pollination;
            ``(2) efforts to identify and address threats from invasive 
        species;
            ``(3) efforts to improve agricultural production by 
        developing more technologically efficient and effective 
        applications of water, nutrients, and pesticides;
            ``(4) new innovations and technology, such as enhancing 
        mechanization and reducing reliance on labor; and
            ``(5) production efficiency, productivity, profitability 
        and marketing.
    ``(c) Eligible Entities.--The Secretary may carry out the 
Initiative through--
            ``(1) Federal agencies;
            ``(2) national laboratories;
            ``(3) colleges and universities;
            ``(4) research institutions and organizations;
            ``(5) private organizations or corporations;
            ``(6) State agricultural experiment stations; and
            ``(7) individuals.
    ``(d) Research Projects.--In carrying out this section, the 
Secretary shall award grants on a competitive basis.
    ``(e) Administration.--
            ``(1) In general.--For grants awarded under subsection (d) 
        the Secretary shall--
                    ``(A) seek and accept proposals for grants;
                    ``(B) determine the relevance and merit of 
                proposals through a system of peer review in accordance 
                with section 103; and
                    ``(C) award grants on the basis of merit, quality, 
                and relevance.
            ``(2) Term.--A grant under this section shall have a term 
        that does not exceed 5 years.
            ``(3) Other conditions.--The Secretary may set such other 
        conditions on the award of a grant under this section as the 
        Secretary determines appropriate.
    ``(f) Buildings and Facilities.--Funds made available under this 
section shall not be used for the construction of a new building or 
facility or the acquisition, expansion remodeling, or alteration of an 
existing building or facility (including site grading and improvement 
and architect fees).
    ``(g) Funding.--There is authorized to be appropriated $100,000,000 
for each of fiscal years 2008 through 2012 to carry out this section.
    ``(h) Additional Funding.--In addition to funds made available 
under subsection (g), of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section a total of 
$215,000,000 for fiscal years 2008 through 2012.''.
    (b) Coordination.--In carrying out this section, the Secretary 
shall ensure that the Director of the applicable Program Office 
established under section 7104(a) coordinates projects and activities 
carried out under this section to ensure, to the maximum extent 
practicable, that duplication of effort is eliminated or minimized.

SEC. 7412. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by striking 
``2007'' and inserting ``2012''.

                         Subtitle E--Other Laws

SEC. 7501. CRITICAL AGRICULTURAL MATERIALS ACT.

    Section 16(a) of the Critical Agricultural Materials Act (7 U.S.C. 
178n(a)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7502. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Endowment for 1994 Institutions.--Section 533(b) of the Equity 
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public 
Law 103-382) is amended in the first sentence by striking ``2007'' and 
inserting ``2012''.
    (b) Institutional Capacity Building Grants.--Section 535 of the 
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
Public Law 103-382) is amended by striking ``2007'' each place it 
appears and inserting ``2012''.
    (c) Research Grants.--Section 536(c) of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) 
is amended in the first sentence by striking ``2007'' and inserting 
``2012''.

SEC. 7503. AGRICULTURAL EXPERIMENT STATION RESEARCH FACILITIES ACT.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7504. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
              POLICY ACT AMENDMENTS OF 1985.

    Section 1431 of the National Agricultural Research, Extension, and 
Teaching Policy Act Amendments of 1985 (Public Law 99-198; 99 Stat. 
1556) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7505. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT ACT 
              (NATIONAL RESEARCH INITIATIVE).

    Section 2 of the Competitive, Special, and Facilities Research 
Grant Act (7 U.S.C. 450i) is amended--
            (1) in subsection (b)(10), by striking ``2007'' and 
        inserting ``2012''; and
            (2) by striking subsection (g).

SEC. 7506. AGRICULTURAL RISK PROTECTION ACT OF 2000 (CARBON CYCLE 
              RESEARCH).

    Section 221(g) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 6711(g)) is amended by striking ``2007'' and inserting ``2012''.

SEC. 7507. RENEWABLE RESOURCES EXTENSION ACT OF 1978.

    (a) Authorization of Appropriations.--Section 6 of the Renewable 
Resources Extension Act of 1978 (16 U.S.C. 1675) is amended by striking 
``2007'' and inserting ``2012''.
    (b) Termination Date.--Section 8 of the Renewable Resources 
Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-306) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 7508. NATIONAL AQUACULTURE ACT OF 1980.

    Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 2809) 
is amended by striking ``2007'' each place it appears and inserting 
``2012''.

SEC. 7509. CONSTRUCTION OF A CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    The Act of March 4, 1927 (20 U.S.C. 191 et seq.), is amended by 
adding at the end the following:

``SEC. 197. CONSTRUCTION OF A CHINESE GARDEN AT THE NATIONAL ARBORETUM.

    ``A Chinese Garden may be constructed at the National Arboretum 
established under this Act with--
            ``(1) funds accepted under the provisions of section 195 
        (20 U.S.C. 195);
            ``(2) authorities provided to the Secretary of Agriculture 
        under section 196 (20 U.S.C. 196); and
            ``(3) appropriations provided for this purpose.''.

SEC. 7510. PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY IN PRODUCING 
              FOOD FOR HUMAN CONSUMPTION.

    Section 10802(b) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 5921a(b))is amended by striking ``2007'' and inserting 
``2012''.

SEC. 7511. FRESH CUT PRODUCE SAFETY GRANTS.

    (a) In General.--The Secretary may award competitive research and 
extension grants to eligible entities to enable such entities to 
design, implement, and evaluate innovative, cost-effective programs to 
improve and enhance the safety of fresh cut produce.
    (b) Eligible Entities.--To be eligible to receive a grant under 
subsection (a) an entity shall--
            (1) be a university, college, or other entity designated by 
        the Secretary; and
            (2) have developed partnerships with producers of fresh cut 
        produce.
    (c) Use of Funds.--An entity shall use funds received under a grant 
under this section to--
            (1) improve sanitation and food safety practices in the 
        processing of fresh cut produce;
            (2) develop improved techniques to monitor and inspect 
        fresh cut produce;
            (3) develop efficient, rapid and sensitive methods to 
        detect contaminants in fresh cut produce;
            (4) determine the sources of contamination in fresh cut 
        produce;
            (5) develop methods to reduce or destroy harmful pathogens 
        before, during, and after processing of fresh cut produce; and
            (6) conduct other research as determined appropriate by the 
        Secretary.
    (d) Matching Funds Required.--The Secretary shall require the 
recipient of a grant under this section to provide funds or in-kind 
support from non-Federal sources in an amount at least equal to the 
amount provided by the Federal Government.
    (e) Coordination.--In carrying out this section, the Secretary 
shall ensure that the Director of the applicable Program Office 
established under section 7104(a) coordinates projects and activities 
carried out under this section to ensure, to the maximum extent 
practicable, that duplication of effort is eliminated or minimized.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.
    (g) Additional Funding.--In addition to funds made available under 
subsection (f), of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section a total of 
$25,000,000 for fiscal years 2008 through 2012.

SEC. 7512. UDC/EFNEP ELIGIBILITY.

    Section 208 of the District of Columbia Public Postsecondary 
Education Reorganization Act (Public Law 93-471) is amended--
            (1) in subsection (b)(2), by striking ``, except'' and all 
        that follows through the period and inserting a period;
            (2) in subsection (c), by striking ``section 3'' each place 
        it appears and inserting ``section 3(c)''; and
            (3) in subsection (c), by striking ``such sums may be used 
        to pay'' and all that follows through ``work.''.

SEC. 7513. HATCH ACT OF 1987.

    Section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 351c(d)(4)) is 
amended--
            (1) in the paragraph heading, by inserting ``and the 
        district of columbia'' after ``areas'';
            (2) in subparagraph (A), by inserting `` and the District 
        of Columbia'' after ``United States'';
            (3) in subparagraph (A), by inserting ``and the District of 
        Columbia'' after ``respectively,''; and
            (4) in subparagraph (B), by inserting ``or the District of 
        Columbia'' after ``area''.

                   Subtitle F--Additional Provisions

SEC. 7601. MERIT REVIEW OF EXTENSION AND EDUCATIONAL GRANTS.

    Section 103 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7613) is amended in subsection (a)(2)(A), 
by striking ``Cooperative State Research, Education, and Extension 
Service of the Department'' and inserting ``the National Institute for 
Food and Agriculture.''.

SEC. 7602. REVIEW OF PLAN OF WORK REQUIREMENTS.

    (a) Review.--The Secretary shall work with university partners in 
extension and research to review and identify measures to streamline 
the submission, reporting under, and implementation of plan of work 
requirements including those under--
            (1) section 1444(d) and 1445(c) of the National 
        Agricultural Research, Extension, and Teaching Policy Act of 
        1977 (7 U.S.C. 3221(d) and 3222(c), respectively);
            (2) section 7 of the Hatch Act of 1887 (7 U.S.C. 361g); and
            (3) section 4 of the Smith-Lever Act (7 U.S.C. 344).
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall provide to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report regarding 
the review carried out under subsection (a). The report shall include 
recommendations--
            (1) to reduce the administrative burden and workload upon 
        institutions associated with plan of work compliance while 
        meeting Department reporting needs for inputs, outputs, and 
        outcome indicators;
            (2) to streamline the submission and reporting requirements 
        of the plan of work such that it is of practical utility to 
        both the department and the institution; and
            (3) for any legislative changes necessary to carry out the 
        plan of work improvements.
    (c) Consultation.--In carrying out the review and formulating and 
compiling the recommendations, the Secretary shall consult with the 
land grant institutions.

SEC. 7603. MULTISTATE AND INTEGRATION FUNDING.

    (a) Funds Expended on Integration of Research and Extension.--
Section 3 of the Hatch Act of 1887 (7 U.S.C. 361c) is amended--
            (1) in subsection (i)(2)(B), by striking ``the lesser of'' 
        and inserting ``25 percent''; and
            (2) by striking clauses (i) and (ii).
    (b) Funds Expended on Multistate Cooperative Extension 
Activities.--Section 3 of the Smith Lever Act (7 U.S.C. 343) is 
amended--
            (1) in subsection (h)(2)(B), by striking ``the lesser of'' 
        and inserting ``25 percent''; and
            (2) by striking clauses (i) and (ii).

SEC. 7604. EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM.

    (a) Funding to 1862, 1890, and Insular Area Institutions.--Section 
1425(c)(2)(B) of the National Agriculture Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3175(c)(2)(B)) is amended--
            (1) in the prefatory material, by striking ``among the 
        States'';
            (2) by striking clause (i) and inserting the following:
                            ``(i) $100,000 shall be distributed to each 
                        of the land grant colleges and universities;'';
            (3) by redesignating clause (ii) as clause (iii);
            (4) by inserting after clause (i) the following:
                            ``(ii) subject to subsection (d), of the 
                        remainder, 10 percent in fiscal year 2008, 11 
                        percent in fiscal year 2009, 12 percent in 
                        fiscal year 2010, 13 percent in fiscal year 
                        2011, 14 percent in fiscal year 2012, and 15 
                        percent in fiscal year 2013 and each fiscal 
                        year thereafter, shall be allocated to each 
                        1890 Institution (as defined in section 2 of 
                        the Agricultural Research, Extension, and 
                        Education Reform Act of 1998) in an amount that 
                        bears the same ratio to the total amount to be 
                        allocated under this clause as the population 
                        of the State living at or below 125 percent of 
                        the income poverty guidelines prescribed by the 
                        Office of Management and Budget (adjusted 
                        pursuant to section 673(2) of the Omnibus 
                        Budget Reconciliation Act of 1981 (42 U.S.C. 
                        9902)), bears to the total population of all 
                        the States that have 1890 Institutions living 
                        at or below 125 percent of the income poverty 
                        guidelines, as determined by the last preceding 
                        decennial census at the time each such 
                        additional amount is first appropriated: 
                        Provided, That the total allocated under this 
                        clause shall not exceed: (I) the amount of the 
                        funds appropriated for the conduct of the 
                        expanded food and nutrition education program 
                        for the fiscal year that are in excess of the 
                        amount appropriated for the conduct of the 
                        program for the fiscal year ending September 
                        30, 2007, reduced by (II) any amounts expended 
                        pursuant to any adjustment under subsection 
                        (d); and''; and
            (5) by amending clause (iii), as redesignated--
                    (A) by striking ``allocated to each State'' and 
                inserting ``allocated to the institution eligible to 
                receive funds under the Act of July 2, 1862 (and 
                including the appropriate insular area institution) in 
                each State (and the University of the District of 
                Columbia, notwithstanding section 208(c) of Public Law 
                93-471)''; and
                    (B) by striking ``subparagraph.'' and inserting 
                ``subparagraph: Provided, That the total allocated 
                under this clause to the University of the District of 
                Columbia shall not exceed: (I) the amount described in 
                the proviso to clause (ii), reduced further by (II) the 
                amount allocated under clause (ii).''.
    (b) Authorization.--Section 1425(c)(3) of the National Agriculture 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3175(c)(3)) is amended by striking ``$83,000,000 for each of fiscal 
years 1996 though 2007'' and inserting ``$90,000,000 for each of fiscal 
years 2008 through 2014''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2007.

SEC. 7605. GRANTS TO 1890 SCHOOLS TO EXPAND EXTENSION CAPACITY.

    Section 1417(b)(4) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(b)(4)) is 
amended by striking ``teaching and research'' and inserting ``teaching, 
research, and extension''.

SEC. 7606. BORLAUG INTERNATIONAL AGRICULTURAL SCIENCE AND TECHNOLOGY 
              FELLOWSHIP PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary of Agriculture shall 
        establish a fellowship program to be known as the ``Borlaug 
        International Agricultural Science and Technology Fellowship 
        Program,'' to provide fellowships for scientific training to 
        individuals from eligible countries (as described under 
        subsection (b)) who specialize in agricultural education, 
        research, and extension for study in the United States.
            (2) Programs.--The Secretary shall carry out the program 
        established under paragraph (1) through 3 programs designed to 
        assist individual fellowship recipients as follows:
                    (A) A Graduate Studies Program in Agriculture to 
                assist individuals who participate in graduate 
                agricultural degree training at a United States 
                institution.
                    (B) An Individual Career Improvement Program to 
                assist agricultural scientists from developing 
                countries to upgrade skills and understanding in 
                agricultural science and technology.
                    (C) The Borlaug Agricultural Policy Executive 
                Leadership Course to assist senior agricultural policy 
                makers from eligible countries with an initial focus on 
                sub-Saharan Africa and from the newly independent 
                states of the former Soviet Union.
    (b) Eligible Countries.--Developing countries, as determined by the 
Secretary using a gross national income per capita test, shall be 
eligible to participate in the program established under this section.
    (c) Purpose of Fellowships.--Fellowships under this section shall 
promote food security and economic growth in eligible countries by 
educating a new generation of agricultural scientists, increasing 
scientific knowledge and collaborative research to improve agricultural 
productivity, and extending this knowledge to users and their 
intermediaries in the market place. Fellowships shall support--
            (1) training and collaborative research opportunities 
        through exchanges for entry-level international agricultural 
        research scientists, faculty, and policymakers from eligible 
        countries;
            (2) collaborative research to improve agricultural 
        productivity;
            (3) the transfer of new science and agricultural 
        technologies to strengthen agricultural practice; and
            (4) the reduction of barriers to technology adoption.
    (d) Fellowship Recipients.--
            (1) Eligible candidates.--The Secretary may provide 
        fellowships under the program authorized by this section to 
        individuals from eligible countries who specialize in or have 
        experience in agricultural education, research, extension, or 
        related fields, including individuals from the public and 
        private sectors, and private agricultural producers.
            (2) Candidate identification.--The Secretary shall utilize 
        the expertise of United States land-grant and similar 
        universities, international organizations working in 
        agricultural research and outreach, and national agricultural 
        research organizations to help identify program candidates for 
        fellowships under this section from both the public and private 
        sectors of eligible countries.
    (e) Use of Fellowships.--Fellowships shall promote collaborative 
programs between agricultural professionals of eligible countries with 
those of the United States and the international agricultural research 
system and, as appropriate, with United States entities conducting 
research. They will be used to support fellowship recipients through 
the Graduate Studies Program in Agriculture established under 
subsection (a)(2)(A).
    (f) Program Implementation.--The Secretary shall provide for the 
management, coordination, evaluation and monitoring of the overall 
Borlaug International Agricultural Science and Technology Fellowship 
Program and for the individual programs described in subsection (a)(2), 
except that the Secretary may contract out to one or more collaborating 
universities the management of one or more of the fellowship programs.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated without fiscal year limitation such sums as may be 
necessary to carry out the program established under this section.

SEC. 7607. COST RECOVERY.

    Section 1473A of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3319a) is amended by striking 
``not exceeding 10 percent of the direct cost'' and inserting ``not 
exceeding 19 percent of the direct cost''.

SEC. 7608. ORGANIC FOOD AND AGRICULTURAL SYSTEMS FUNDING.

    It is the sense of Congress that the Secretary of Agriculture 
should use a share of Agricultural Research Service's total annual 
funding for research specific to organic food and agricultural systems 
that is at least commensurate with the organic sector's market, in 
order to facilitate the development of this growing sector.   A portion 
of these funds should be used to disseminate research results through 
the National Agriculture Library's Alternative Farming Systems 
Information Center.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. National priorities for private forest conservation.
Sec. 8002. Long-term, State-wide assessments and strategies for forest 
                            resources.
Sec. 8003. Assistance to the Federated States of Micronesia, the 
                            Republic of the Marshall Islands, and the 
                            Republic of Palau.
Sec. 8004. Changes to Forest Resource Coordinating Committee.
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees.
Sec. 8006. Competition in programs under Cooperative Forestry 
                            Assistance Act of 1978.
Sec. 8007. Cooperative forest innovation partnership projects.
                  Subtitle B--Amendments to Other Laws

Sec. 8101. Healthy forest reserve program.
Sec. 8102. Emergency forest restoration program.
Sec. 8103. Office of International Forestry.
Sec. 8104. Rural revitalization technologies.
                  Subtitle C--Miscellaneous Provisions

Sec. 8201. Hispanic-serving institution agricultural land national 
                            resources leadership program.

        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST CONSERVATION.

    Section 2 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2101) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Priorities.--In allocating funds appropriated or otherwise 
made available under this Act, the Secretary shall focus on the 
following national private forest conservation priorities, 
notwithstanding other priorities specified elsewhere in this Act:
            ``(1) Conserving and managing working forest landscapes for 
        multiple values and uses.
            ``(2) Protecting forests from threats, including wildfire, 
        hurricane, tornado, windstorm, snow or ice storm, flooding, 
        drought, invasive species, or insect or disease outbreak, and 
        restoring appropriate forest types in response to such threats.
            ``(3) Enhancing public benefits from private forests, 
        including air and water quality, soil conservation, biological 
        diversity, carbon storage, forest products, forestry-related 
        jobs, production of renewable energy, wildlife and wildlife 
        habitat, and recreation.
    ``(d) Reporting Requirement.--Not later than September 30, 2011, 
the Secretary shall submit to Congress a report describing how funding 
was used under this Act and through other programs administered by the 
Secretary to address the national priorities specified in subsection 
(c) and the outcomes achieved in meeting the national priorities.''.

SEC. 8002. LONG-TERM, STATE-WIDE ASSESSMENTS AND STRATEGIES FOR FOREST 
              RESOURCES.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 2 (16 U.S.C. 2101) the following new section:

``SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST RESOURCES.

    ``(a) Assessment and Strategies for Forest Resources.--For a State 
to be eligible to receive funds under the authorities of this Act, the 
State forester of the State or equivalent State official shall develop 
and submit to the Secretary, not later than two years after the date of 
the enactment of the Farm, Nutrition, and Bioenergy Act of 2007, the 
following:
            ``(1) A State-wide assessment of forest resource 
        conditions, including--
                    ``(A) the conditions and trends of forest resources 
                in that State;
                    ``(B) the threats to forest lands and resources in 
                that State consistent with the national priorities 
                specified in section 2(c);
                    ``(C) any areas or regions of that State that are 
                of priority; and
                    ``(D) any areas, known as multi-State areas, that 
                are of priority to more than just that State.
            ``(2) A State-wide forest resource strategy, including--
                    ``(A) strategies for addressing threats to forest 
                resources in the State outlined in the assessment 
                required by paragraph (1); and
                    ``(B) a description of the resources available to 
                the State forester or equivalent State official from 
                all sources to address the State-wide strategy required 
                by subparagraph (A).
    ``(b) Updating.--The State forester or equivalent State official 
shall submit the State-wide strategy required by subsection (a)(2) on 
an annual basis. The State-wide assessment of forest resource 
conditions required by subsection (a)(1) shall be updated as the 
Secretary or State Forester or equivalent State official determines to 
be necessary.
    ``(c) Coordination.--In developing the State-wide assessment and 
annual strategy under subsection (a), the State forester or equivalent 
State official shall coordinate with--
            ``(1) the State Forest Stewardship Coordinating Committee 
        established for the State under section 19(b);
            ``(2) the State wildlife agency to incorporate any 
        overlapping priorities included in State wildlife action plans; 
        and
            ``(3) the State Technical Committee.
    ``(d) Funding.--Of the funds available under this Act for a fiscal 
year, the Secretary may not use more than $10,000,000 to implement this 
section for that fiscal year. Use of funds for implementing this 
section shall be consistent with the original authorities for such 
funds.''.

SEC. 8003. ASSISTANCE TO THE FEDERATED STATES OF MICRONESIA, THE 
              REPUBLIC OF THE MARSHALL ISLANDS, AND THE REPUBLIC OF 
              PALAU.

    Section 13(d)(1) of the Cooperative Forestry Act of 1978 (16 U.S.C. 
2109(d)(1)) is amended by striking ``the Trust Territory of the Pacific 
Islands,'' and inserting ``the Federated States of Micronesia, the 
Republic of the Marshall Islands, the Republic of Palau,''.

SEC. 8004. CHANGES TO FOREST RESOURCE COORDINATING COMMITTEE.

    Section 19 of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2113) is amended by striking subsection (a) and inserting the 
following new subsection:
    ``(a) Forest Resource Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish a 
        committee, to be known as the `Forest Resource Coordinating 
        Committee' (in this section referred to as the `Coordinating 
        Committee'), to coordinate private non-industrial forestry 
        activities within the Department of Agriculture and with the 
        private sector.
            ``(2) Composition.--The Coordinating Committee shall be 
        composed of the following:
                    ``(A) The Chief of the Forest Service.
                    ``(B) The Chief of the Natural Resources 
                Conservation Service.
                    ``(C) The Director of the Farm Service Agency.
                    ``(D) The Administrator of the Cooperative State 
                Research, Education, and Extension Service.
                    ``(E) Non-Federal representatives appointed by the 
                Secretary to 3 year terms, although initial appointees 
                shall have staggered terms, including the following 
                persons:
                            ``(i) At least three State foresters or 
                        equivalent State officials from geographically 
                        diverse regions of the United States.
                            ``(ii) A representative of a State fish and 
                        wildlife agency.
                            ``(iii) A private non-industrial forest 
                        landowner.
                            ``(iv) A forest industry representative.
                            ``(v) A conservation organization 
                        representative.
                            ``(vi) A land-grant university or college 
                        representative.
                            ``(vii) A private forestry consultant.
                            ``(viii) A representative from a State 
                        Technical Committee established under section 
                        1261 of the Food Security Act of 1985 (16 
                        U.S.C. 3861).
                            ``(ix) Such other persons as determined by 
                        the Secretary to be appropriate.
            ``(3) Chairperson.--The Chief of the Forest Service shall 
        serve as chairperson of the Coordinating Committee.
            ``(4) Duties.--The Coordinating Committee shall--
                    ``(A) provide direction and coordination of actions 
                within the Department of Agriculture, and coordination 
                with State agencies and the private sector, to 
                effectively address the national priorities specified 
                in section 2(c), with specific focus on private non-
                industrial forest landowners;
                    ``(B) clarify individual agency responsibilities of 
                each agency represented on the Coordinating Committee 
                concerning the national priorities specified in section 
                2(c), with specific focus on private non-industrial 
                forested land;
                    ``(C) provide advice on the allocation of funds, 
                including the competitive funds set-aside by sections 
                8006 and 8007 of the Farm, Nutrition, and Bioenergy Act 
                of 2007; and
                    ``(D) assist the Secretary in developing and 
                reviewing the report required by section 2(d).
            ``(5) Meeting.--The Coordinating Committee shall meet 
        biannually to discuss progress in addressing the national 
        priorities specified in section 2(c) and issues regarding non-
        industrial private forest land.
            ``(6) Compensation.--
                    ``(A) Federal members.--Members of the Coordinating 
                Committee who are full-time officers or employees of 
                the United States shall receive no additional pay, 
                allowances, or benefits by reason of their service on 
                the Committee.
                    ``(B) Non-federal members.--Non-federal members of 
                the Coordinating Committee shall serve without pay, but 
                may be reimbursed for reasonable costs incurred while 
                performing their duties on behalf of the Committee.''.

SEC. 8005. CHANGES TO STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

    Section 19(b) of the Cooperative Forestry Assistance Act of 1978 
(16 U.S.C. 2113(b)) is amended--
            (1) in paragraph (1)(B)(ii)--
                    (A) by striking ``and'' at the end of subclause 
                (VII); and
                    (B) by adding at the end the following new 
                subclause:
                                    ``(IX) the State Technical 
                                Committee.''.
            (2) in paragraph (2)(C), by striking ``a Forest Stewardship 
        Plan under paragraph (3)'' and inserting ``the State-wide 
        assessment and strategy regarding forest resource conditions 
        under section 2A'';
            (3) by striking paragraphs (3) and (4); and
            (4) by redesignating paragraphs (5) and (6) as paragraphs 
        (3) and (4), respectively.

SEC. 8006. COMPETITION IN PROGRAMS UNDER COOPERATIVE FORESTRY 
              ASSISTANCE ACT OF 1978.

    (a) Competition.--Beginning not later than 3 years after the date 
of the enactment of this Act, the Secretary of Agriculture shall 
competitively allocate a portion, to be determined by the Secretary, of 
the funds available under the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2101 et seq.) to State foresters or equivalent State 
officials.
    (b) Determination.--In determining the competitive allocation of 
funds under subsection (a), the Secretary shall consult with the Forest 
Resource Coordinating Committee established by section 19(a) of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2113(a)).
    (c) Priority.--The Secretary shall give priority for funding to 
States for which the strategies submitted under section 2A(a)(2) of the 
Cooperative Forestry Assistance Act of 1978 will best promote the 
national priorities specified in section 2(c) of such Act.

SEC. 8007. COOPERATIVE FOREST INNOVATION PARTNERSHIP PROJECTS.

     (a) Cooperative Forest Innovation Partnership Projects.--The 
Secretary of Agriculture may competitively allocate not more than 5 
percent of funding available under the Cooperative Forestry Assistance 
Act of 1978 (16 U.S.C. 2101 et seq.) to support innovative national, 
regional, or local education, outreach, or technology transfer projects 
that the Secretary determines would substantially increase the ability 
of the Department of Agriculture to address the national priorities 
specified in section 2(c) of such Act.
    (b) Eligibility.--Notwithstanding the eligibility limitations 
contained within the Cooperative Forestry Assistance Act of 1978, any 
State or local government, Indian tribe, land-grant college or 
university, or private entity shall be eligible for funds under 
subsection (a).
    (c) Cost-Share Requirement.--In carrying out subsection (a), the 
Secretary shall not cover more than 50 percent of the total cost of a 
project under such subsection. In calculating the total cost of a 
project and contributions made with regard to the project, the 
Secretary shall include in-kind contributions.

                  Subtitle B--Amendments to Other Laws

SEC. 8101. HEALTHY FOREST RESERVE PROGRAM.

    Section 508 of the Healthy Forests Restoration Act of 2003 (16 
U.S.C. 6578) is amended to read as follows:

``SEC. 508. FUNDING.

    ``Notwithstanding any other provision of law, of the funds of the 
Commodity Credit Corporation, the Secretary shall make available to 
carry out this title $10,000,000 for each of fiscal years 2008 through 
2012. Such funds shall remain available until expended.''.

SEC. 8102. EMERGENCY FOREST RESTORATION PROGRAM.

    (a) Establishment.--Title IV of the Agricultural Credit Act of 1978 
(16 U.S.C. 2201-2205) is amended--
            (1) by redesignating sections 404, 405, and 406 as sections 
        405, 406, and 407, respectively; and
            (2) by inserting after section 403 the following new 
        section:

``SEC. 404. EMERGENCY FOREST RESTORATION PROGRAM.

    ``(a) Availability of Assistance.--The Secretary of Agriculture is 
authorized to provide financial and technical assistance to an owner of 
non-industrial private forest lands to assist with developing and 
implementing an approved plan in accordance with subsection (c)(2).
    ``(b) Amount of Assistance.--
            ``(1) Cost share.--Payments under subsection (a) may not 
        cover more than 75 percent of the total cost of measures 
        implemented pursuant to an approved plan in accordance with 
        subsection (c)(2).
            ``(2) Annual limit.--An owner of non-industrial private 
        forest lands may not receive more than $50,000 per year under 
        this section.
    ``(c) Eligibility.--To be eligible for assistance under this 
section, a landowner must--
            ``(1) have suffered a loss of, or damage to, non-industrial 
        private forest land due to events, including wildfires, 
        hurricanes, drought, windstorms, insect and disease, ice 
        storms, or invasive species, as determined by the Secretary; 
        and
            ``(2) develop a plan, in cooperation with the Secretary, 
        and agree to implement the plan during the 10-year period 
        beginning on the date of the loss, that--
                    ``(A) provides for reforestation, rehabilitation, 
                and related measures for the non-industrial private 
                forest land;
                    ``(B) restores the land and related natural 
                resources;
                    ``(C) uses best management practices on the forest 
                land, in accordance with the best management practices 
                as determined by the Secretary; and
                    ``(D) incorporates good stewardship and 
                conservation practices on the land, while maintaining 
                the land in a forested state.
    ``(d) Insect and Disease Threats.--Notwithstanding subsection 
(c)(1), non-industrial private forest lands are eligible under this 
section if the Secretary determines that the lands are under an 
imminent threat of loss or damage by insect or disease and immediate 
action would help to avoid the loss or damage.
    ``(e) Non-Industrial Private Forest Land Defined.--In this section, 
the term `non-industrial private forest land' means rural lands, as 
determined by the Secretary, that--
            ``(1) have existing tree cover or had tree cover within the 
        preceding 10 years; and
            ``(2) are owned by any non-industrial private individual, 
        group, association, corporation, Indian tribe, or other private 
        legal entity so long as the individual, group, association, 
        corporation, tribe, or entity has definitive decision-making 
        authority over the lands.''.
    (b) Regulations.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out section 404 of the Agricultural Credit Act of 
1978, as added by subsection (a).

SEC. 8103. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act of 1990 
(7 U.S.C. 6704(d)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 8104. RURAL REVITALIZATION TECHNOLOGIES.

    Section 2371(d)(2) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking ``2004 
through 2008'' and inserting ``2008 through 2012''.

                  Subtitle C--Miscellaneous Provisions

SEC. 8201. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL 
              RESOURCES LEADERSHIP PROGRAM.

    (a) Grant Authority.--The Secretary of Agriculture may make grants, 
on a competitive basis, to Hispanic-serving institutions for the 
purpose of establishing an undergraduate scholarship program to assist 
in the recruitment, retention, and training of Hispanics and other 
under-represented groups in forestry and related fields.
    (b) Use of Grant Funds.--Grants made under this section shall be 
used to recruit, retain, train, and develop professionals to work in 
forestry and related fields with Federal agencies, such as the Forest 
Service, State agencies, and private-sector entities.
    (c) Definition of Hispanic-Serving Institution.--In this section, 
the term ``Hispanic-serving institution'' has the meaning given that 
term in section 502(a)(5) of the Higher Education Act of 1965 (20 
U.S.C. 1101a(a)(5)).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for each of fiscal years 2008 through 
2012 such sums as may be necessary to carry out this section.

                            TITLE IX--ENERGY

Sec. 9001. Table of contents.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Loan guarantees for biorefineries and biofuel production 
                            plants.
Sec. 9004. Energy audit and renewable energy development program.
Sec. 9005. Renewable energy systems and energy efficiency improvements.
Sec. 9006. Biomass Research and Development Act of 2000.
Sec. 9007. Adjustments to the bioenergy program.
Sec. 9008. Research, extension, and educational programs on biobased 
                            energy technologies and products.
Sec. 9009. Energy Council of the Department of Agriculture.
Sec. 9010. Farm energy production pilot program.
Sec. 9011. Rural energy self-sufficiency initiative.
Sec. 9012. Agricultural biofuels from biomass internship pilot program.
Sec. 9013. Feedstock flexibility program for bioenergy producers.
Sec. 9014. Biomass inventory report.
Sec. 9015. Future farmsteads program.
Sec. 9016. Sense of Congress on renewable energy.

SEC. 9001. TABLE OF CONTENTS.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by inserting before section 9001 the 
following new section:

``SEC. 9000. TABLE OF CONTENTS.

    ``The table of contents of this title is as follows:

                           ``TITLE IX--ENERGY

``Sec. 9000. Short title; table of contents.
``Sec. 9001. Definitions.
``Sec. 9002. Federal procurement of biobased products.
``Sec. 9003. Biorefinery development grants.
``Sec. 9004. Biodiesel fuel education program.
``Sec. 9005. Energy audit and renewable energy development program.
``Sec. 9006. Rural energy for America program.
``Sec. 9007. Hydrogen and fuel cell technologies.
``Sec. 9008. Biomass Research and Development Act of 2000.
``Sec. 9009. Cooperative research and extension projects.
``Sec. 9010. Continuation of bioenergy program.
``Sec. 9011. Research, extension, and educational programs on biobased 
                            energy technologies and products.
``Sec. 9012. Energy Council of the Department of Agriculture.
``Sec. 9013. Farm energy production pilot program.
``Sec. 9014. Rural energy self-sufficiency initiative.
``Sec. 9015. Agricultural Biofuels from Biomass Internship Pilot 
                            Program.
``Sec. 9016. Feedstock flexibility program for bioenergy producers.''.

SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Composition of Biobased Products.--Section 9002(c)(1) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is 
amended by inserting ``, composed of at least five percent of 
intermediate ingredients and feedstocks (such as biopolymers, methyl 
soyate, and soy polyols) as designated by the Secretary,'' after 
``highest percentage of biobased products practicable''.
    (b) Procurement Guideline Considerations.--Section 9002(e)(2)(B) of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8102(e)(2)(B)) is amended by striking ``life cycle costs'' and 
inserting ``information on life cycle costs if such information is 
appropriate and available''.
    (c) Labeling Requirements and Revised Deadline.--Section 9002(h) of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(h)) 
is amended--
            (1) in paragraph (2)--
                    (A) by striking ``Within one year after the date of 
                enactment of this Act'' and inserting ``Not later than 
                90 days after the date of enactment of the (Farm, 
                Nutrition, and Bioenergy Act of 2007),''; and
                    (B) by adding at the end the following: ``Criteria 
                shall be issued for finished products and intermediate 
                ingredients and feedstocks.'';
            (2) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively, and inserting after paragraph (2) 
        the following:
            ``(3) Consultation.--In developing the eligibility criteria 
        for the labeling program under this section, the Secretary 
        shall consult with other Federal agencies and with non-
        governmental groups with an interest in biobased products 
        including small and large producers of biobased materials and 
        products, industry, trade organizations, academia, consumer 
        organizations, and environmental organizations.''.
    (d) Authorization of Appropriations.--Paragraph (1) of section 
9002(k) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8102(k)) is amended to read as follows:
            ``(1) Authorization of appropriations.--
                    ``(A) Federal procurement.--There are authorized to 
                be appropriated $1,000,000 for each of fiscal years 
                2008 through 2013 to implement the provisions of this 
                section other than subsection (h).
                    ``(B) Labeling.--There are authorized to be 
                appropriated $1,000,000 for each of fiscal years 2008 
                through 2013 to implement subsection (h) of this 
                section.''.
    (e) Report Requirements.--
            (1) Report by agencies to administrator for federal 
        procurement policy.--Subsection (f) of section 9002 of the Farm 
        Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is 
        amended--
                    (A) by striking ``The Office of'' and inserting 
                ``(1) The Administrator for''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) To assist the Administrator for Federal Procurement Policy in 
preparing the report to Congress required under paragraph (1), each 
procuring agency each year shall submit to the Administrator a report 
covering the following:
            ``(A) Actions taken to implement subsections (c), (d), and 
        (g) of this section.
            ``(B) The results of the annual review and monitoring 
        program established under subsection (g)(2)(C).
            ``(C) The number of contracts entered into by the agency 
        during the year covered by the report that include the 
        procurement of biobased products.
            ``(D) A list of the biobased products procured by the 
        agency during the year covered by the report.''.
            (2) Report by secretary to congress on implementation of 
        section.--Section 9002 of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 8102) is amended by adding at 
        the end the following new subsection:
    ``(l) Report by Secretary to Congress on Implementation of 
Section.--Not later than six months after the date of the enactment of 
the Farm, Nutrition, and Bioenergy Act of 2007, and each year 
thereafter, the Secretary shall submit to Congress a report on the 
implementation of this section. The report shall include the following:
            ``(1) A comprehensive management plan defining tasks, 
        milestones, and funding allocations for fully implementing this 
        section.
            ``(2) A list of items designated under subsection (e)(1)(A) 
        whose procurement will carry out the objectives of this 
        section, with associated cost and performance data.
            ``(3) Information on the current status of implementation 
        of the procurement preference under this section, including the 
        procurement program of each Federal agency under subsection 
        (g), and the voluntary labeling program under subsection 
        (h).''.
    (f) Repeal of Subsection.--Subsection (b) of section 9002 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102(b)) is 
hereby repealed.

SEC. 9003. LOAN GUARANTEES FOR BIOREFINERIES AND BIOFUEL PRODUCTION 
              PLANTS.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended--
            (1) in the section heading, by inserting ``; loan 
        guarantees for biorefineries and biofuel production plants'' 
        after ``grants'';
            (2) in subsection (b)(2)(A), by striking ``and'' the 1st 
        place it appears and inserting ``or'';
            (3) in subsection (c), by redesignating subsection (h) as 
        subsection (j) and subsections (d) through (g) as subsections 
        (e) through (h), respectively, and inserting after subsection 
        (c) the following:
    ``(d) Loan Guarantees.--
            ``(1) In general.--The Secretary shall make loan guarantees 
        to eligible entities to assist in paying the cost of 
        development and construction of biorefineries and biofuel 
        production plants (including retrofitting) to carry out 
        projects to demonstrate the commercial viability of 1 or more 
        processes for converting biomass to fuels or chemicals.
            ``(2) Limitations.--
                    ``(A) Maximum percentage of loan guaranteed.--A 
                loan guarantee under paragraph (1) shall be for not 
                more than 90 percent of the principal and interest due 
                on the loan.
                    ``(B) Total amounts guaranteed.--The total amount 
                of principal and interest guaranteed under paragraph 
                (1) shall not exceed--
                            ``(i) $1,000,000,000, in the case of loans 
                        valued at not more than $100,000,000; or
                            ``(ii) $1,000,000,000, in the case of loans 
                        valued at more than $100,000,000 but not more 
                        than $250,000,000.
                    ``(C) Maximum term of loan guaranteed.--The 
                Secretary shall determine the maximum term of a loan 
                guarantee provided under paragraph (1).'';
            (4) in subsection (f) (as so redesignated)--
                    (A) in paragraph (2)(B)--
                            (i) by striking ``and'' at the end of 
                        clause (viii);
                            (ii) by striking the period at the end of 
                        clause (ix) and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(x) The level of local ownership.''; and
                    (B) by adding at the end the following:
            ``(3) Priority in awarding loan guarantees.--In selecting 
        projects to receive loan guarantees under subsection (d), the 
        Secretary shall give priority to projects based on the criteria 
        set forth in paragraph (2)(B) of this subsection.''; and
            (5) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Condition of Provision of Assistance.--As a condition of 
receiving a grant or loan guarantee under this section, the eligible 
entity shall ensure that all laborers and mechanics employed by 
contractors or subcontractors in the performance of construction work 
financed in whole or in part with the grant or loan guarantee, as the 
case may be, shall be paid wages at rates not less than those 
prevailing on similar construction in the locality, as determined by 
the Secretary of Labor in accordance with sections 3141 through 3144, 
3146, and 3147 of title 40, United States Code. The Secretary of Labor 
shall have, with respect to such labor standards, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed. 
Reg. 3176; 64 Stat. 1267) and section 3145 of such title.'';
            (6) in subsection (j) (as so redesignated), by striking 
        ``2007'' and inserting ``2012''; and
            (7) by adding at the end the following new subsection:
    ``(k) Additional Funding for Loan Guarantees.--Of the funds of the 
Commodity Credit Corporation, the Secretary shall use to carry out this 
section--
            ``(1) $75,000,000 for fiscal year 2008;
            ``(2) $100,000,000 for fiscal year 2009;
            ``(3) $125,000,000 for fiscal year 2010;
            ``(4) $200,000,000 for fiscal year 2011; and
            ``(5) $300,000,000 for fiscal year 2012.''.
            (8) in paragraph (2)(B) of subsection (f) (as so 
        redesignated)--
                    (A) in clause (viii), by striking ``and'' at the 
                end;
                    (B) in clause ix, by striking ``approaches.'' and 
                inserting ``approaches; and''; and
                    (C) by adding at the end the following new clause:
                            ``(x) whether the impact the distribution 
                        of funds would have on existing manufacturing 
                        and other facilities that utilize similar 
                        feedstocks would be minimal.''.

SEC. 9004. 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) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 9005. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.'';

            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``, other agricultural producer'' after 
                ``rancher'';
                    (B) in paragraph (1), by striking ``and'' at the 
                end;
                    (C) in paragraph (2), by striking the period and 
                inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(3) produce and sell electricity generated by new 
        renewable energy systems.'';
            (3) in subsection (b), by inserting ``, other agricultural 
        producer'' after ``rancher'';
            (4) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking ``50 
                        percent'' and inserting ``75 percent''; and
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C) and inserting after 
                        subparagraph (A) the following:
                    ``(B) Loan guarantees.--
                            ``(i) Maximum amount.--The amount of a loan 
                        guaranteed under this section shall not exceed 
                        $25,000,000.
                            ``(ii) Maximum percentage.--A loan 
                        guaranteed under this section shall not exceed 
                        75 percent of the cost of the activity funded 
                        under subsection (a).''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) Prioritization.--The Secretary shall give the 
        greatest priority for grants under subsection (a) to activities 
        for which the least percentage of the total cost of such 
        activities is requested by the farmer, rancher, other 
        agricultural producer, or rural small business.''.
            (5) by redesignating subsection (e) as subsection (g) and 
        striking subsection (f); and
            (6) by inserting after subsection (d) the following new 
        subsections:
    ``(e) Feasibility Studies.--
            ``(1) In general.--The Secretary may provide assistance to 
        a farmer, rancher, other agricultural producer, or rural small 
        business to conduct a feasibility study of a project for which 
        assistance may be provided under this section.
            ``(2) Limitation.--The Secretary shall use not more than 10 
        percent of the funds made available to carry out this section 
        to provide assistance described in paragraph (1).
            ``(3) Criteria.--The Secretary shall issue regulations 
        establishing criteria for the receipt of assistance under this 
        subsection.
            ``(4) Avoidance of duplicative assistance.--An farmer, 
        rancher, other agricultural producer, or rural small business 
        that receives assistance to carry out a feasibility study for a 
        project under this subsection shall not be eligible for 
        assistance to carry out a feasibility study for the project 
        under any other provision of law.
    ``(f) Small Activities.--
            ``(1) Limitation on use of funds.--The Secretary shall use 
        not less than 15 percent of the funds made available under 
        subsection (h) to provide grants for activities that have a 
        cost of $50,000 or less.
            ``(2) Exception.--Beginning on the first day of the third 
        quarter of a fiscal year, the limitation on the use of funds 
        under paragraph (1) shall not apply to funds made available 
        under subsection (h) for such fiscal year.''.
            (7) by adding at the end the following new subsection:
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make available to carry out this 
section--
            ``(1) $50,000,000 for fiscal year 2008;
            ``(2) $75,000,000 for fiscal year 2009;
            ``(3) $100,000,000 for fiscal year 2010;
            ``(4) $125,000,000 for fiscal year 2011; and
            ``(5) $150,000,000 for fiscal year 2012.''.

SEC. 9006. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    (a) Restatement of Act.--Section 9008 of the Farm Security and 
Rural Investment Act of 2002 (116 Stat. 486) is amended to read as 
follows:

``SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

    ``(a) Short Title.--This section may be cited as the `Biomass 
Research and Development Act of 2000'.
    ``(b) Findings.--Congress finds that--
            ``(1) conversion of biomass into biobased industrial 
        products offers outstanding potential for benefit to the 
        national interest through--
                    ``(A) improved strategic security and balance of 
                payments;
                    ``(B) healthier rural economies;
                    ``(C) improved environmental quality;
                    ``(D) near-zero net greenhouse gas emissions;
                    ``(E) technology export; and
                    ``(F) sustainable resource supply;
            ``(2) the key technical challenges to be overcome in order 
        for biobased industrial products to be cost-competitive are 
        finding new technology and reducing the cost of technology for 
        converting biomass into desired biobased industrial products;
            ``(3) biobased fuels have the clear potential to be 
        sustainable, low cost, and high performance fuels that are 
        compatible with both current and future transportation systems 
        and provide near-zero net greenhouse gas emissions;
            ``(4) biobased chemicals have the clear potential for 
        environmentally benign product life cycles;
            ``(5) biobased power can--
                    ``(A) provide environmental benefits;
                    ``(B) promote rural economic development; and
                    ``(C) diversify energy resource options;
            ``(6) many biomass feedstocks suitable for industrial 
        processing show the clear potential for sustainable production, 
        in some cases resulting in improved soil fertility and carbon 
        sequestration;
            ``(7)(A) grain processing mills are biorefineries that 
        produce a diversity of useful food, chemical, feed, and fuel 
        products; and
            ``(B) technologies that result in further diversification 
        of the range of value-added biobased industrial products can 
        meet a key need for the grain processing industry;
            ``(8)(A) cellulosic feedstocks are attractive because of 
        their low cost and widespread availability; and
            ``(B) research resulting in cost-effective technology to 
        overcome the recalcitrance of cellulosic biomass would allow 
        biorefineries to produce fuels and bulk chemicals on a very 
        large scale, with a commensurately large realization of the 
        benefit described in paragraph (1);
            ``(9) research into the fundamentals to understand 
        important mechanisms of biomass conversion can be expected to 
        accelerate the application and advancement of biomass 
        processing technology by--
                    ``(A) increasing the confidence and speed with 
                which new technologies can be scaled up; and
                    ``(B) giving rise to processing innovations based 
                on new knowledge;
            ``(10) the added utility of biobased industrial products 
        developed through improvements in processing technology would 
        encourage the design of feedstocks that would meet future needs 
        more effectively;
            ``(11) the creation of value-added biobased industrial 
        products would create new jobs in construction, manufacturing, 
        and distribution, as well as new higher-valued exports of 
        products and technology;
            ``(12)(A) because of the relatively short-term time horizon 
        characteristic of private sector investments, and because many 
        benefits of biomass processing are in the national interest, it 
        is appropriate for the Federal Government to provide 
        precommercial investment in fundamental research and research-
        driven innovation in the biomass processing area; and
            ``(B) such an investment would provide a valuable 
        complement to ongoing and past governmental support in the 
        biomass processing area; and
            ``(13) several prominent studies, including studies by the 
        President's Committee of Advisors on Science and Technology and 
        the National Research Council--
                    ``(A) support the potential for large research-
                driven advances in technologies for production of 
                biobased industrial products as well as associated 
                benefits; and
                    ``(B) document the need for a focused, integrated, 
                and innovation-driven research effort to provide the 
                appropriate progress in a timely manner.
    ``(c) Definitions.--In this section:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Biomass Research and Development Technical Advisory 
        Committee established by this section.
            ``(2) Biobased fuel.--The term `biobased fuel' means any 
        transportation or heating fuel produced from biomass.
            ``(3) Biobased product.--The term `biobased product' means 
        an industrial product (including chemicals, materials, and 
        polymers) produced from biomass, or a commercial or industrial 
        product (including animal feed and electric power) derived in 
        connection with the conversion of biomass to fuel.
            ``(4) Biomass.--The term `biomass' means any organic matter 
        that is available on a renewable or recurring basis, including 
        agricultural crops and trees, wood and wood wastes and 
        residues, plants (including aquatic plants), grasses, residues, 
        fibers, and animal wastes, municipal wastes, and other waste 
        materials.
            ``(5) Board.--The term `Board' means the Biomass Research 
        and Development Board established by this section.
            ``(6) Demonstration.--The term `demonstration' means 
        demonstration of technology in a pilot plant or semi-works 
        scale facility.
            ``(7) Initiative.--The term `Initiative' means the Biomass 
        Research and Development Initiative established under this 
        section.
            ``(8) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1002(a)).
            ``(9) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in section 2 of the Energy 
        Policy Act of 2005.
            ``(10) Point of contact.--The term `point of contact' means 
        a point of contact designated under this section.
    ``(d) Cooperation and Coordination in Biomass Research and 
Development.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy shall cooperate with respect to, and 
        coordinate, policies and procedures that promote research and 
        development leading to the production of biobased fuels and 
        biobased products.
            ``(2) Points of contact.--
                    ``(A) In general.--To coordinate research and 
                development programs and activities relating to 
                biobased fuels and biobased products that are carried 
                out by their respective Departments--
                            ``(i) the Secretary of Agriculture shall 
                        designate, as the point of contact for the 
                        Department of Agriculture, an officer of the 
                        Department of Agriculture appointed by the 
                        President to a position in the Department 
                        before the date of the designation, by and with 
                        the advice and consent of the Senate; and
                            ``(ii) the Secretary of Energy shall 
                        designate, as the point of contact for the 
                        Department of Energy, an officer of the 
                        Department of Energy appointed by the President 
                        to a position in the Department before the date 
                        of the designation, by and with the advice and 
                        consent of the Senate.
                    ``(B) Duties.--The points of contact shall 
                jointly--
                            ``(i) assist in arranging interlaboratory 
                        and site-specific supplemental agreements for 
                        research and development projects relating to 
                        biobased fuels and biobased products;
                            ``(ii) serve as cochairpersons of the 
                        Board;
                            ``(iii) administer the Initiative; and
                            ``(iv) respond in writing to each 
                        recommendation of the Advisory Committee made 
                        under subsection (f).
    ``(e) Biomass Research and Development Board.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Board, which shall supersede the 
        Interagency Council on Biobased Products and Bioenergy 
        established by Executive Order No. 13134, to coordinate 
        programs within and among departments and agencies of the 
        Federal Government for the purpose of promoting the use of 
        biobased fuels and biobased products by--
                    ``(A) maximizing the benefits deriving from Federal 
                grants and assistance; and
                    ``(B) bringing coherence to Federal strategic 
                planning.
            ``(2) Membership.--The Board shall consist of--
                    ``(A) the point of contact of the Department of 
                Energy designated under subsection (d), who shall serve 
                as cochairperson of the Board;
                    ``(B) the point of contact of the Department of 
                Agriculture designated under subsection (d), who shall 
                serve as cochairperson of the Board;
                    ``(C) a senior officer of each of the Department of 
                the Interior, the Environmental Protection Agency, the 
                National Science Foundation, and the Office of Science 
                and Technology Policy, each of whom shall--
                            ``(i) be appointed by the head of the 
                        respective agency; and
                            ``(ii) have a rank that is equivalent to 
                        the rank of the points of contact; and
                    ``(D) at the option of the Secretary of Agriculture 
                and the Secretary of Energy, other members appointed by 
                the Secretaries (after consultation with the members 
                described in subparagraphs (A) through (C)).
            ``(3) Duties.--The Board shall--
                    ``(A) coordinate research and development 
                activities relating to biobased fuels and biobased 
                products--
                            ``(i) between the Department of Agriculture 
                        and the Department of Energy; and
                            ``(ii) with other departments and agencies 
                        of the Federal Government;
                    ``(B) provide recommendations to the points of 
                contact concerning administration of this title;
                    ``(C) ensure that--
                            ``(i) solicitations are open and 
                        competitive with awards made annually; and
                            ``(ii) objectives and evaluation criteria 
                        of the solicitations are clearly stated and 
                        minimally prescriptive, with no areas of 
                        special interest; and
                    ``(D) ensure that the panel of scientific and 
                technical peers assembled under subsection (g) to 
                review proposals is composed predominantly of 
                independent experts selected from outside the 
                Departments of Agriculture and Energy.
            ``(4) Funding.--Each agency represented on the Board is 
        encouraged to provide funds for any purpose under this section.
            ``(5) Meetings.--The Board shall meet at least quarterly to 
        enable the Board to carry out the duties of the Board under 
        paragraph (3).
    ``(f) Biomass Research and Development Technical Advisory 
Committee.--
            ``(1) Establishment.--There is established the Biomass 
        Research and Development Technical Advisory Committee, which 
        shall supersede the Advisory Committee on Biobased Products and 
        Bioenergy established by Executive Order No. 13134--
                    ``(A) to advise the Secretary of Energy, the 
                Secretary of Agriculture, and the points of contact 
                concerning--
                            ``(i) the technical focus and direction of 
                        requests for proposals issued under the 
                        Initiative; and
                            ``(ii) procedures for reviewing and 
                        evaluating the proposals;
                    ``(B) to facilitate consultations and partnerships 
                among Federal and State agencies, agricultural 
                producers, industry, consumers, the research community, 
                and other interested groups to carry out program 
                activities relating to the Initiative; and
                    ``(C) to evaluate and perform strategic planning on 
                program activities relating to the Initiative.
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Committee shall 
                consist of--
                            ``(i) an individual affiliated with the 
                        biofuels industry;
                            ``(ii) an individual affiliated with the 
                        biobased industrial and commercial products 
                        industry;
                            ``(iii) an individual affiliated with an 
                        institution of higher education who has 
                        expertise in biobased fuels and biobased 
                        products;
                            ``(iv) two prominent engineers or 
                        scientists from government or academia who have 
                        expertise in biobased fuels and biobased 
                        products;
                            ``(v) an individual affiliated with a 
                        commodity trade association;
                            ``(vi) 2 individuals affiliated with an 
                        environmental or conservation organization;
                            ``(vii) an individual associated with State 
                        government who has expertise in biobased fuels 
                        and biobased products;
                            ``(viii) an individual with expertise in 
                        energy and environmental analysis;
                            ``(ix) an individual with expertise in the 
                        economics of biobased fuels and biobased 
                        products;
                            ``(x) an individual with expertise in 
                        agricultural economics;
                            ``(xi) an individual with expertise in 
                        agronomy, crop science, or soil science; and
                            ``(xii) at the option of the points of 
                        contact, other members.
                    ``(B) Appointment.--The members of the Advisory 
                Committee shall be appointed by the points of contact.
            ``(3) Duties.--The Advisory Committee shall--
                    ``(A) advise the points of contact with respect to 
                the Initiative; and
                    ``(B) evaluate whether, and make recommendations in 
                writing to the Board to ensure that--
                            ``(i) funds authorized for the Initiative 
                        are distributed and used in a manner that is 
                        consistent with the objectives, purposes, and 
                        considerations of the Initiative;
                            ``(ii) solicitations are open and 
                        competitive with awards made annually and that 
                        objectives and evaluation criteria of the 
                        solicitations are clearly stated and minimally 
                        prescriptive, with no areas of special 
                        interest;
                            ``(iii) the points of contact are funding 
                        proposals under this title that are selected on 
                        the basis of merit, as determined by an 
                        independent panel of scientific and technical 
                        peers predominantly from outside the 
                        Departments of Agriculture and Energy; and
                            ``(iv) activities under this section are 
                        carried out in accordance with this section.
            ``(4) Coordination.--To avoid duplication of effort, the 
        Advisory Committee shall coordinate its activities with those 
        of other Federal advisory committees working in related areas.
            ``(5) Meetings.--The Advisory Committee shall meet at least 
        quarterly to enable the Advisory Committee to carry out the 
        duties of the Advisory Committee.
            ``(6) Terms.--Members of the Advisory Committee shall be 
        appointed for a term of 3 years, except that--
                    ``(A) one-third of the members initially appointed 
                shall be appointed for a term of 1 year; and
                    ``(B) one-third of the members initially appointed 
                shall be appointed for a term of 2 years.
    ``(g) Biomass Research and Development Initiative.--
            ``(1) In general.--The Secretary of Agriculture and the 
        Secretary of Energy, acting through their respective points of 
        contact and in consultation with the Board, shall establish and 
        carry out a Biomass Research and Development Initiative under 
        which competitively awarded grants, contracts, and financial 
        assistance are provided to, or entered into with, eligible 
        entities to carry out research on, and development and 
        demonstration of, biobased fuels and biobased products, and the 
        methods, practices and technologies, for their production.
            ``(2) Objectives.--The objectives of the Initiative are to 
        develop--
                    ``(A) technologies and processes necessary for 
                abundant commercial production of biobased fuels at 
                prices competitive with fossil fuels;
                    ``(B) high-value biobased products--
                            ``(i) to enhance the economic viability of 
                        biobased fuels and power;
                            ``(ii) as substitutes for petroleum-based 
                        feedstocks and products; and
                            ``(iii) to enhance the value of coproducts 
                        arise from such technologies and processes; and
                    ``(C) a diversity of sustainable domestic sources 
                of biomass for conversion to biobased fuels and 
                biobased products.
            ``(3) Purposes.--The purposes of the Initiative are--
                    ``(A) to increase the energy security of the United 
                States;
                    ``(B) to create jobs and enhance the economic 
                development of the rural economy;
                    ``(C) to enhance the environment and public health; 
                and
                    ``(D) to diversify markets for raw agricultural and 
                forestry products.
            ``(4) Technical areas.--To advance the objectives and 
        purposes of the Initiative, the Secretary of Agriculture and 
        the Secretary of Energy, in consultation with the Administrator 
        of the Environmental Protection Agency and heads of other 
        appropriate departments and agencies (referred to in this 
        subsection as the `Secretaries'), shall direct research, 
        development, and commercial applications toward--
                    ``(A) feedstocks and feedstock systems relevant to 
                production of raw materials for conversion to biobased 
                fuels and biobased products, including--
                            ``(i) development of advanced and dedicated 
                        crops and other biomass sources with desired 
                        features, including enhanced productivity, 
                        broader site range, low requirements for 
                        chemical inputs, and enhanced processing;
                            ``(ii) advanced crop production methods to 
                        achieve the features described in clause (i);
                            ``(iii) feedstock harvest, handling, 
                        transport, and storage;
                            ``(iv) strategies for integrating feedstock 
                        production into existing managed land; and
                            ``(v) improving the value and quality of 
                        coproducts, including materials used for animal 
                        feeding;
                    ``(B) overcoming recalcitrance of cellulosic 
                biomass through developing technologies for converting 
                cellulosic biomass into intermediates that can 
                subsequently be converted into biobased fuels and 
                biobased products, including--
                            ``(i) pretreatment in combination with 
                        enzymatic or microbial hydrolysis;
                            ``(ii) thermochemical approaches, including 
                        gasification and pyrolysis; and
                            ``(iii) self-processing crops that express 
                        enzymes capable of degrading cellulosic 
                        biomass;
                    ``(C) product diversification through technologies 
                relevant to production of a range of biobased products 
                (including chemicals, animal feeds, and cogenerated 
                power) that eventually can increase the feasibility of 
                fuel production in a biorefinery, including--
                            ``(i) catalytic processing, including 
                        thermochemical fuel production;
                            ``(ii) metabolic engineering, enzyme 
                        engineering, and fermentation systems for 
                        biological production of desired products, 
                        coproducts, or cogeneration of power;
                            ``(iii) product recovery;
                            ``(iv) power production technologies;
                            ``(v) integration into existing biomass 
                        processing facilities, including starch ethanol 
                        plants, sugar processing or refining plants, 
                        paper mills, and power plants; and
                            ``(vi) enhancement of products and 
                        coproducts, including dried distillers grains 
                        (including substantially elevated starch 
                        content, increased oil content, improved fatty 
                        acid profiles, and improved resistance to mold 
                        and mycotoxins; and
                    ``(D) analysis that provides strategic guidance for 
                the application of biomass technologies in accordance 
                with realization of improved sustainability and 
                environmental quality, cost effectiveness, security, 
                and rural economic development, usually featuring 
                system-wide approaches.
            ``(5) Additional considerations.--Within the technical 
        areas described in paragraph (4), and in addition to advancing 
        the purposes described in paragraph (3) and the objectives 
        described in paragraph (2), the Secretaries shall support 
        research and development--
                    ``(A) to create continuously expanding 
                opportunities for participants in existing biofuels 
                production by seeking synergies and continuity with 
                current technologies and practices, such as 
                improvements in dried distillers grains as a bridge 
                feedstock;
                    ``(B) to maximize the environmental, economic, and 
                social benefits of production of biobased fuels and 
                biobased products on a large scale through life-cycle 
                economic and environmental analysis and other means; 
                and
                    ``(C) to assess the potential of Federal land and 
                land management programs as feedstock resources for 
                biobased fuels and biobased products, consistent with 
                the integrity of soil and water resources and with 
                other environmental considerations.
            ``(6) Eligible entities.--To be eligible for a grant, 
        contract, or assistance under this subsection, an applicant 
        shall be--
                    ``(A) an institution of higher education;
                    ``(B) a National Laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity;
                    ``(F) a nonprofit organization; or
                    ``(G) a consortium of two or more entities 
                described in subparagraphs (A) through (F).
            ``(7) Administration.--
                    ``(A) In general.--After consultation with the 
                Board, the points of contact shall--
                            ``(i) publish annually one or more joint 
                        requests for proposals for grants, contracts, 
                        and assistance under this subsection;
                            ``(ii) require that grants, contracts, and 
                        assistance under this section be awarded 
                        competitively, on the basis of merit, after the 
                        establishment of procedures that provide for 
                        scientific peer review by an independent panel 
                        of scientific and technical peers; and
                            ``(iii) give some preference to 
                        applications that--
                                    ``(I) involve a consortia of 
                                experts from multiple institutions;
                                    ``(II) encourage the integration of 
                                disciplines and application of the best 
                                technical resources; and
                                    ``(III) increase the geographic 
                                diversity of demonstration projects.
                    ``(B) Distribution of funding by technical area.--
                Of the funds authorized to be appropriated for 
                activities described in this subsection, funds shall be 
                distributed for each of fiscal years 2007 through 2012 
                so as to achieve an approximate distribution of--
                            ``(i) 20 percent of the funds to carry out 
                        activities for feedstock production under 
                        paragraph (4)(A);
                            ``(ii) 45 percent of the funds to carry out 
                        activities for overcoming recalcitrance of 
                        cellulosic biomass under paragraph (4)(B), of 
                        which not less than 10 percent shall be used 
                        for activities referred to in each clause of 
                        paragraph (4)(B);
                            ``(iii) 30 percent of the funds to carry 
                        out activities for product diversification 
                        under paragraph (4)(C); and
                            ``(iv) 5 percent of the funds to carry out 
                        activities for strategic guidance under 
                        paragraph (4)(D).
                    ``(C) Distribution of funding within each technical 
                area.--Within each technical area described in 
                subparagraphs (A) through (C) of paragraph (4), funds 
                shall be distributed for each of fiscal years 2007 
                through 2012 so as to achieve an approximate 
                distribution of--
                            ``(i) 15 percent of the funds for applied 
                        fundamentals;
                            ``(ii) 35 percent of the funds for 
                        innovation; and
                            ``(iii) 50 percent of the funds for 
                        demonstration and commercial applications.
                    ``(D) Matching funds.--
                            ``(i) In general.--A minimum 20 percent 
                        funding match shall be required for 
                        demonstration projects under this section.
                            ``(ii) Commercial applications.--A minimum 
                        of 50 percent funding match shall be required 
                        for commercial application projects under this 
                        section.
                    ``(E) Technology and information transfer to 
                agricultural users.--The Administrator of the 
                Cooperative State Research, Education, and Extension 
                Service and the Chief of the Natural Resources 
                Conservation Service shall ensure that applicable 
                research results and technologies from the Initiative 
                are adapted, made available, and disseminated through 
                those services, as appropriate.
    ``(h) Administrative Support and Funds.--
            ``(1) In general.--To the extent administrative support and 
        funds are not provided by other agencies under paragraph 
        (2)(b), the Secretary of Energy and the Secretary of 
        Agriculture may provide such administrative support and funds 
        of the Department of Energy and the Department of Agriculture 
        to the Board and the Advisory Committee as are necessary to 
        enable the Board and the Advisory Committee to carry out their 
        duties under this section.
            ``(2) Other agencies.--The heads of the agencies referred 
        to in subsection (e)(2)(C), and the other members appointed 
        under subsection (e)(2)(D), may, and are encouraged to, provide 
        administrative support and funds of their respective agencies 
        to the Board and the Advisory Committee.
            ``(3) Limitation.--Not more than 4 percent of the amount 
        appropriated for each fiscal year under subsection (g)(6) may 
        be used to pay the administrative costs of carrying out this 
        section.
    ``(i) Reports.--
            ``(1) Annual reports.--For each fiscal year for which funds 
        are made available to carry out this section, the Secretary of 
        Energy and the Secretary of Agriculture shall jointly submit to 
        Congress a detailed report on--
                    ``(A) the status and progress of the Initiative, 
                including a report from the Advisory Committee on 
                whether funds appropriated for the Initiative have been 
                distributed and used in a manner that--
                            ``(i) is consistent with the objectives, 
                        purposes, and additional considerations 
                        described in paragraphs (2) through (5) of 
                        subsection (g);
                            ``(ii) uses the set of criteria established 
                        in the initial report submitted under title III 
                        of the Agricultural Risk Protection Act of 
                        2000;
                            ``(iii) achieves the distribution of funds 
                        described in subparagraphs (B) and (C) of 
                        subsection (g)(7); and
                            ``(iv) takes into account any 
                        recommendations that have been made by the 
                        Advisory Committee;
                    ``(B) the general status of cooperation and 
                research and development efforts carried out at each 
                agency with respect to biobased fuels and biobased 
                products, including a report from the Advisory 
                Committee on whether the points of contact are funding 
                proposals that are selected under subsection 
                (g)(3)(B)(iii); and
                    ``(C) the plans of the Secretary of Energy and the 
                Secretary of Agriculture for addressing concerns raised 
                in the report, including concerns raised by the 
                Advisory Committee.
            ``(2) Updates.--The Secretary and the Secretary of Energy 
        shall update the Vision and Roadmap documents prepared for 
        Federal biomass research and development activities.
            ``(3) Management plan.--The Secretary shall every five 
        years, in consultation with the Secretary of Energy, submit to 
        Congress a detailed management plan for the implementation of 
        this section. The management plan shall include--
                    ``(A) consideration of the contribution of the 
                section towards achieving the objectives referred to in 
                paragraphs (2) and (3) of subsection (g) and in 
                achieving the goals of the biomass program of the 
                Department of Energy;
                    ``(B) consideration of input solicited from the 
                Advisory Committee, State, and private sources; and
                    ``(C) specific and quantifiable near and long-term 
                goals.
    ``(j) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall make available 
        to carry out this section--
                    ``(A) $35,000,000 for fiscal year 2008;
                    ``(B) $60,000,000 for fiscal year 2009;
                    ``(C) $75,000,000 for fiscal year 2010;
                    ``(D) $100,000,000 for fiscal year 2011; and
                    ``(E) $150,000,000 for fiscal year 2012.
            ``(2) Additional funding.--In addition to amounts 
        transferred under paragraph (1), there are authorized to be 
        appropriated to carry out this section $200,000,000 for each of 
        fiscal years 2006 through 2015.''.
    (b) Repeal.--Title III of the Agricultural Risk Protection Act of 
2000 (Public Law 106-224) is hereby repealed.
    (c) Management Plan Submission Date.--The first management plan 
required to be submitted under section 9008(i)(3) of the Biomass 
Research and Development Act of 2000, as added by subsection (a), shall 
be submitted not later than 180 days after the date of the enactment of 
this Act.

SEC. 9007. ADJUSTMENTS TO THE BIOENERGY PROGRAM.

    Section 9010 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'';
                            (ii) in subparagraph (B), by striking the 
                        final period and inserting a semicolon; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
                    ``(C) production of heat and power at a biofuels 
                plant;
                    ``(D) biomass gasification;
                    ``(E) hydrogen made from cellulosic commodities for 
                fuel cells;
                    ``(F) renewable diesel;
                    ``(G) such other items as the Secretary considers 
                appropriate.'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Eligible feedstock.--
                    ``(A) In general.--The term `eligible feedstock' 
                means--
                            ``(i) any plant material grown or collected 
                        for the purpose of being converted to energy 
                        (including aquatic plants);
                            ``(ii) any organic byproduct or residue 
                        from agriculture and forestry, including mill 
                        residues and pulping residues that can be 
                        converted into energy;
                            ``(iii) any waste material that can be 
                        converted to energy and is derived from plant 
                        material, including--
                                    ``(I) wood waste and residue;
                                    ``(II) specialty crop waste, 
                                including waste derived from orchard 
                                trees, vineyard crops, and nut crops; 
                                or
                                    ``(III) other fruit and vegetable 
                                byproducts or residues; or
                            ``(iv) animal waste and byproducts.
                    ``(B) Exclusion.--The term `eligible feedstock' 
                does not include corn starch.'';
                    (C) in paragraph (4), by striking ``an eligible 
                commodity'' and inserting ``eligible feedstock''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(5) Renewable diesel.--The term `renewable diesel' means 
        any type of biobased renewable fuel derived from plant or 
        animal matter that may be used as a substitute for standard 
        diesel fuel and meets the requirements of an appropriate 
        American Society for Testing and Material standard. Such term 
        does not include any fuel derived from coprocessing an eligible 
        feedstock with a feedstock that is not biomass.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``The Secretary shall 
                        continue'' and all that follows through ``the 
                        Secretary makes'' and inserting ``The Secretary 
                        shall make''; and
                            (ii) by striking ``eligible commodities'' 
                        and inserting ``eligible feedstock'';
                    (B) in paragraph (2)(B), by striking ``eligible 
                commodities'' and inserting ``eligible feedstock'';
                    (C) in paragraph (3), by striking subparagraphs (B) 
                and (C) and inserting the following:
                    ``(B) Priority.--In making payments under this 
                paragraph, the Secretary shall give priority to 
                contracts by considering the factors referred to in 
                section 9003(e)(2)(B).'';
                    (D) by striking paragraph (6) and inserting the 
                following:
            ``(6) Limitation.--The Secretary may limit the amount of 
        payments that may be received by an eligible producer under 
        this section as the Secretary considers appropriate.''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(8) Renewal of contracts.--When considering the renewal 
        of a contract under this section, the Secretary shall review 
        such contract to determine whether the production of bioenergy 
        at the facility under contract is economically viable and 
        reconsider the need for the contract based on that 
        determination.''; and
            (3) by striking subsection (c) and inserting the following:
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall use to carry out this section--
            ``(1) $225,000,000 for fiscal year 2008;
            ``(2) $250,000,000 for fiscal year 2009;
            ``(3) $275,000,000 for fiscal year 2010;
            ``(4) $300,000,000 for fiscal year 2011; and
            ``(5) $350,000,000 for fiscal year 2012.''.

SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
              ENERGY TECHNOLOGIES AND PRODUCTS.

    (a) Western Insular Pacific Center.--Section 9011(d) is amended by 
adding at the end the following new paragraph:
            ``(6) Western insular pacific center.--A western insular 
        pacific center at the University of Hawaii for the region of 
        Alaska, Hawaii, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Federated States of Micronesia, 
        the Republic of the Marshall Islands, and the Republic of 
        Palau.''.
    (b) Authorization of Appropriations.--Section 9011(j)(1)(C) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(j)(1)(C)) 
is amended by striking ``2010'' and inserting ``2012''.

SEC. 9009. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AGRICULTURE.

    ``(a) In General.--The Secretary of Agriculture shall establish an 
energy council in the Office of the Secretary (in this section referred 
to as the `Council') to coordinate the energy policy of the Department 
of Agriculture and consult with other departments and agencies of the 
Federal Government.
    ``(b) Membership.--
            ``(1) In general.--The Secretary shall appoint the members 
        of the Council from among the staff of the agencies and mission 
        areas of the Department of Agriculture with responsibilities 
        relating to energy programs or policies.
            ``(2) Chair.--The chief economist and the Under Secretary 
        for Rural Development of the Department of Agriculture shall 
        serve as the Chairs of the Council.
    ``(c) Duties of Office of Energy Policy and New Uses.--The Office 
of Energy Policy and New Uses of the Department of Agriculture shall 
support the activities of the Council.''.

SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM.

    ``(a) Program.--The Secretary of Agriculture shall establish a 
pilot program to provide grants to farmers for the purpose of 
demonstrating the feasibility of making a farm energy neutral using 
existing technologies.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for fiscal years 2008 
through 2012.''.

SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

    ``(a) Grant Authority.--
            ``(1) In general.--The Secretary of Agriculture (in this 
        section referred to as the `Secretary') may make grants in 
        accordance with this section to enable eligible rural 
        communities to substantially increase their energy self-
        sufficiency.
            ``(2) Eligible rural community defined.--In this section, 
        the term `eligible rural community' means a community that has 
        a population of fewer than 25,000 individuals, and is not 
        located in a metropolitan statistical area (as defined by the 
        Bureau of the Census).
    ``(b) Applications.--
            ``(1) In general.--A community desiring to receive a grant 
        under this section shall submit to the Secretary an application 
        for the grant, which contains a description of how the 
        community would use the grant to develop an integrated 
        renewable energy system to substantially increase its energy 
        self-sufficiency.
            ``(2) Integrated renewable energy system.--In paragraph 
        (1), the term `integrated renewable energy system' includes--
                    ``(A) the use of biofuels;
                    ``(B) the use of biomass to produce electricity;
                    ``(C) the use of animal manure to produce biogas as 
                a substitute for natural gas;
                    ``(D) the use of new technologies to provide highly 
                energy efficient lighting, buildings, or vehicles;
                    ``(E) the use of wind power to produce electricity 
                and hydrogen; and
                    ``(F) the use of solar energy.
    ``(c) Consideration of Applications.--
            ``(1) Evaluation.--In making grants under this section, the 
        Secretary shall evaluate applications based on their ability to 
        demonstrate--
                    ``(A) integration of different renewable energy 
                sources at lowest total cost;
                    ``(B) integration of different renewable energy 
                sources with greatest potential for commercialization; 
                and
                    ``(C) development of best practices, and models for 
                viable rural energy self-sufficiency.
            ``(2) Preference.--In making grants under this section, the 
        Secretary shall give preference to those which propose a 
        project developed or carried out in coordination with--
                    ``(A) universities or their non-profit foundations;
                    ``(B) Federal, State, or local government agencies;
                    ``(C) public or private power generation entities; 
                or
                    ``(D) government entities with responsibility for 
                water or natural resources.
    ``(d) Grants.--
            ``(1) Cost-sharing.--The amount of a grant under this 
        section with respect to an application shall not exceed 75 
        percent of the cost of the activities described in the 
        application.
            ``(2) Number of grants per year.--The Secretary may make 
        not more than 5 grants under this section in each fiscal year.
    ``(e) Use of Grants.--A community to which a grant is made under 
this section shall use the grant to develop an integrated renewable 
energy system to improve the energy efficiency of the community, and 
shall document any energy savings resulting from the use of the grant.
    ``(f) Report to the Congress.--The Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report that document the best practices and approaches used by grantees 
receiving funds under this section.
    ``(g) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary not more than $5,000,000 for fiscal year 2008, and such sums 
as may be necessary for fiscal years 2009 through 2012.''.

SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP PILOT PROGRAM.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9015. AGRICULTURAL BIOFUELS FROM BIOMASS INTERNSHIP PILOT 
              PROGRAM.

    ``(a) Establishment.--The Secretary of Agriculture shall establish 
a structured, academically-oriented internship pilot program (in this 
section referred to as the `Program') to provide students from 
universities in California, Iowa, Missouri, Georgia, Minnesota, and 
other states with substantial farm-based economies or universities with 
fields of study capable of developing renewable energy technology or 
policy with the opportunity to work within the Department of 
Agriculture, Congress and legislative branch agencies, other Federal 
departments and agencies, corporations, and nonprofit institutions on 
matters pertaining to policies regarding renewable energy, including 
the conversion of biomass and other agricultural products to produce 
ethanol and other biofuels.
    ``(b) Eligibility.--To be eligible for an internship under 
subsection (a) a student shall--
            ``(1) be a third or fourth year undergraduate student or a 
        graduate student at an accredited college or university in 
        California, Iowa, Missouri, Georgia, Minnesota, or another 
        State with a substantial farm-based economy, or at a university 
        with fields of study capable of developing renewable energy 
        technology or policy (including agriculture-related studies, 
        chemistry, environmental sciences, bioengineering, 
        biochemistry, natural resources, and public policy), that 
        commits matching funds in accordance with subsection (g);
            ``(2) be a United States citizen;
            ``(3) be pursuing an undergraduate or graduate program in 
        agriculture and related supporting subjects with direct 
        relevance to the subject of biorefinery, biofuels, and 
        renewable energy; and
            ``(4) meet any other conditions or requirements that the 
        Secretary considers necessary.
    ``(c) Priorities of Internship Pilot Program.--In administering the 
Program (including in the selection of students to participate in the 
Program), the Secretary shall prioritize the following activities and 
placements:
            ``(1) Structured internship experiences that feature 
        direct, hands-on assistance to policy makers engaged in the 
        development and implementation of agriculture and related 
        supporting policies and legislation, with direct relevance to 
        the subject of biorefinery, biofuels, and renewable energy.
            ``(2) Internship and academic seminar programs that provide 
        a combination of workforce training, experiential education, 
        and leadership development designed specifically for the 
        Department of Agriculture and Congress, with regard to 
        agriculture-based biorefinery, biofuels, and related renewable 
        energy policies.
            ``(3) Establishment of regional and state networks that 
        partner with the agricultural business, government and academic 
        communities to enhance the prospects for providing financial 
        assistance to students, particularly minority students, from 
        colleges and universities in each participating State who are 
        from economically disadvantaged backgrounds.
            ``(4) Internship and academic seminar programs that focus 
        on agriculture-based research, development, and policies 
        addressing new technologies to enhance agriculture production 
        and enhanced economic development in the agriculture sector of 
        the United States.
    ``(d) Administration of the Pilot Program.--The Secretary, in 
consultation with other executive and legislative branch officials, 
shall administer the Program. The Secretary may engage the services of 
an experienced, nonprofit, nonpartisan professional internship and 
academic seminar organization with extensive experience in developing 
and carrying out Washington-based or other State-based internship 
programs and State-based financial assistance initiatives for interns 
to assist in carrying out the Program.
    ``(e) Scholarships and Other Assistance for Internships.--The 
Secretary may make available to undergraduate and graduate students 
participating in the Program scholarships or other types of financial 
assistance, including funds to cover the cost of housing, per diem 
living expenses, transportation, tuition and other educational 
expenses, and related costs, that would allow participation by eligible 
undergraduate and graduate students from economically-disadvantaged 
backgrounds within the Program States.
    ``(f) Longitudinal Studies and Reporting Requirements.--
            ``(1) Longitudinal studies and evaluation of internship 
        program.--In developing and implementing the Program, the 
        Secretary shall carry out such longitudinal studies and program 
        evaluations as he or she deems appropriate to ensure that the 
        program is administered in a cost-effective manner and has 
        specific milestones, objectives, and results quantified with 
        regard to such Program.
            ``(2) Reporting requirements.--The Secretary shall submit 
        to the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate periodic reports regarding the development and 
        implementation of the Program, including the longitudinal 
        studies and evaluations required under paragraph (1).
    ``(g) State Matching Requirement.--As a condition of receiving an 
internship under the Program, the State in which the student receiving 
the internship is pursuing an undergraduate or graduate degree shall 
provide matching funds in the amount of one dollar for every two 
dollars provided by the Secretary under the Program.
    ``(h) Federal Contribution Limit.--The Secretary may not expend 
more than $200,000 in any fiscal year to provide internships to 
students pursuing an undergraduate or graduate degree in any particular 
State.
    ``(i) Application of Funds.--The Secretary shall, to the maximum 
extent practicable, use funds made available under subsection (j) to 
provide scholarships and the other forms of financial assistance 
described in subsection (e) directly attributable to the participation 
in the Program by students from rural, economically-disadvantaged 
backgrounds.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this 
section.''.

SEC. 9013. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9016. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS.

    ``(a) Definitions.--In this section:
            ``(1) Bioenergy.--The term `bioenergy' means fuel grade 
        ethanol and other biofuel.
            ``(2) Bioenergy producer.--The term `bioenergy producer' 
        means a producer of bioenergy that uses an eligible commodity 
        to produce bioenergy under this section.
            ``(3) Eligible commodity.--The term `eligible commodity' 
        means a form of raw or refined sugar or in-process sugar that 
        is eligible to be marketed in the United States for human 
        consumption or to be used for the extraction of sugar for human 
        consumption.
            ``(4) Eligible entity.--The term `eligible entity' means an 
        entity located in the United States that markets an eligible 
        commodity in the United States.
    ``(b) Feedstock Flexibility Program.--
            ``(1) In general.--
                    ``(A) Purchases and sales.--For each of fiscal 
                years 2008 through 2012, the Secretary shall purchase 
                eligible commodities from eligible entities and sell 
                such commodities to bioenergy producers for the purpose 
                of producing bioenergy in a manner that ensures that 
                156 of the Federal Agricultural Improvement and Reform 
                Act (7 U.S.C. 7272) is operated at no cost to the 
                Federal Government by avoiding forfeitures to the 
                Commodity Credit Corporation.
                    ``(B) Competitive procedures.--In carrying out the 
                purchases and sales required under subparagraph (A), 
                the Secretary shall, to the maximum extent practicable, 
                use competitive procedures, including the receiving, 
                offering, and accepting of bids, when entering into 
                contracts with eligible entities and bioenergy 
                producers, provided that such procedures are consistent 
                with the purposes of subparagraph (A).
                    ``(C) Limitation.--The purchase and sale of 
                eligible commodities under subparagraph (A) shall only 
                be made in fiscal years in which such purchases and 
                sales are necessary to ensure that the program 
                authorized under section 156 of the Federal Agriculture 
                Improvement and Reform Act (7 U.S.C. 7272) is operated 
                at no cost to the Federal Government by avoiding 
                forfeitures to the Commodity Credit Corporation.
            ``(2) Notice.--
                    ``(A) In general.--Not later than September 1, 
                2007, and each September 1 thereafter through fiscal 
                year 2011, the Secretary shall provide notice to 
                eligible entities and bioenergy producers of the 
                quantity of eligible commodities that shall be made 
                available for purchase and sale for the subsequent 
                fiscal year under this section.
                    ``(B) Reestimates.--Not later than the first day of 
                each of the second through fourth quarters of each of 
                fiscal years 2008 through 2012, the Secretary shall 
                reestimate the quantity of eligible commodities 
                determined under subparagraph (A), and provide notice 
                and make purchases and sales based on such reestimates.
            ``(3) Commodity credit corporation inventory.--To the 
        extent that an eligible commodity is owned and held in 
        inventory by the Commodity Credit Corporation (accumulated 
        pursuant to the program authorized under section 156 of the 
        Federal Agriculture Improvement and Reform Act (7 U.S.C. 
        7272)), the Secretary shall sell such commodity to bioenergy 
        producers under this section.
            ``(4) Transfer rule; storage fees.--
                    ``(A) General transfer rule.--Except as provided in 
                subparagraph (C), the Secretary shall ensure that 
                bioenergy producers that purchase eligible commodities 
                pursuant to this subsection take possession of such 
                commodities within 30 calendar days of the date of such 
                purchase from the Commodity Credit Corporation.
                    ``(B) Payment of storage fees prohibited.--
                            ``(i) In general.--The Secretary shall, to 
                        the greatest extent practicable, carry out this 
                        subsection in a manner that ensures no storage 
                        fees are paid by the Commodity Credit 
                        Corporation in the administration of this 
                        subsection.
                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to any commodities owned and 
                        held in inventory by the Commodity Credit 
                        Corporation (accumulated pursuant to the 
                        program authorized under section 156 of the 
                        Federal Agriculture Improvement and Reform Act 
                        (7 U.S.C. 7272)).
                    ``(C) Option to prevent storage fees.--
                            ``(i) In general.--The Secretary may enter 
                        into contracts with bioenergy producers to sell 
                        eligible commodities to such producers prior in 
                        time to entering into contracts with eligible 
                        entities to purchase such commodities to be 
                        used to satisfy the contracts entered into with 
                        the bioenergy producers.
                            ``(ii) Special transfer rule.--If the 
                        Secretary makes a sale and purchase referred to 
                        in clause (i), the Secretary shall ensure that 
                        the bioenergy producer that purchased eligible 
                        commodities takes possession of such 
                        commodities within 30 calendar days of the date 
                        the Commodity Credit Corporation purchases such 
                        commodities.
            ``(5) Relation to other laws.--If sugar that is subject to 
        a marketing allotment under part VII of subtitle B of title III 
        of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et 
        seq.) is the subject of a payment under this section, such 
        sugar shall be considered marketed and shall count against a 
        processor's allocation of an allotment under such part, as 
        applicable.
            ``(6) Funding.--The Secretary shall use the funds, 
        facilities, and authorities of the Commodity Credit 
        Corporation, including the use of such sums as are necessary, 
        to carry out this section.''.

SEC. 9014. BIOMASS INVENTORY REPORT.

    (a) Inventory Required.--The Secretary of Agriculture shall conduct 
an inventory of biomass resources on a county-by-county basis.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report 
containing--
            (1) the results of the inventory conducted under subsection 
        (a); and
            (2) an estimate of the amount of unused crop land in the 
        United States that could be used for dedicated energy crops.
    (c) Biomass Resources Defined.--In this section, the term ``biomass 
resource'' has the meaning given the term ``eligible commodity'' in 
section 9010(a)(3) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8108(a)(3)).

SEC. 9015. FUTURE FARMSTEADS PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
program to equip, in each of 5 regions of the country chosen to 
represent different farming practices, a farm house and its surrounding 
fields, facilities, and forested areas with technologies to--
            (1) improve farm energy production and energy use 
        efficiencies;
            (2) provide working examples to farmers; and
            (3) serve as an education, demonstration, and research 
        facility that will teach graduate students whose focus of 
        research is related to either renewable energy or energy 
        conservation technologies.
    (b) Goals.--The goals of the program established under subsection 
(a) shall be to--
            (1) advance farm energy use efficiencies and the on-farm 
        production of renewable energies, along with advanced 
        communication and control technologies with the latest in 
        energy capture and conversion techniques, thereby enhancing 
        rural energy independence and creating new revenues for rural 
        economies;
            (2) accelerate private sector and university research into 
        the efficient on-farm production of renewable fuels and help 
        educate the farming industry, students, and the general public; 
        and
            (3) accelerate energy independence, including the 
        production and the conservation of renewable energies on farms.
    (c) Collaboration Partners.--The program under this section shall 
be carried out in partnership with regional land grant institutions, 
agricultural commodity commissions, biofuels companies, sensor and 
controls companies, and internet technology companies.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 9016. SENSE OF CONGRESS ON RENEWABLE ENERGY.

    It is the sense of Congress that--
            (1) energy demand in the United States is projected to 
        increase by more than 30 percent over the next two decades;
            (2) increased production of renewable energy and growth of 
        its infrastructure would assist the United States in meeting 
        the growing energy demand;
            (3) continued, and even accelerated, development of 
        renewable energy inputs and technologies provide numerous 
        benefits to the United States, including improved national 
        security and economic growth;
            (4) while it should be a priority of the Federal Government 
        to continue to promote policies and incentives to stimulate 
        growth and development of renewable energy infrastructure, it 
        should be recognized that the marketplace is also an important 
        instrument to determine which renewable energy sources and 
        technologies will provide the most efficient and effective 
        energy production;
            (5) renewable energy inputs and technology must be 
        available in abundant quantities and provide energy at 
        competitive prices in a reliable manner for the American 
        consumer; and
            (6) it is in the interest of the United States to diversify 
        its energy portfolio and increase the energy independence of 
        the United States by further developing alternative forms of 
        energy.

SEC. 9017. BIODIESEL FUEL EDUCATION PROGRAM.

    Section 9004(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8104(d)) is amended to read as follows:
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section $2,000,000 
for each of fiscal years 2008 through 2012.''.

SEC. 9018. BIOMASS ENERGY RESERVE.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by adding at the end the following new 
section:

``SEC. 9017. BIOMASS ENERGY RESERVE.

    ``(a) Purpose.--The purpose of this section is to establish a 
biomass energy reserve--
            ``(1) to encourage production of dedicated energy crops in 
        a sustainable manner that protects the soil, air, water, and 
        wildlife of the United States; and
            ``(2) to provide financial and technical assistance to 
        owners and operators of eligible cropland to produce dedicated 
        energy crops and crop mixes of suitable quality and in 
        sufficient quantities to support and induce development and 
        expansion of the use of the crop for--
                    ``(A) bioenergy;
                    ``(B) power or heat generation to supplement or 
                replace nonbiobased energy sources; or
                    ``(C) biobased products to supplement or replace 
                non biobased products;
            ``(3) to establish biomass energy reserve project areas; 
        and
            ``(4) to provide financial and technical assistance to 
        owners and operators for harvesting, storing, and transporting 
        cellulosic material.
    ``(b) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term in section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
            ``(2) BER.--The term `BER' means the biomass energy reserve 
        established under this section.
            ``(3) BER project area.--The term `BER project area' means 
        an area that--
                    ``(A) has eligible cropland that--
                            ``(i) is owned or operated by eligible 
                        participants; and
                            ``(ii) has specified boundaries that are 
                        submitted to the Secretary by eligible 
                        participants and subsequently approved by the 
                        Secretary; and
                    ``(B) is physically located within a 50-mile radius 
                of a bioenergy facility.
            ``(4) Conservation reserve program.--The term `conservation 
        reserve program' means the conservation reserve program 
        established under subchapter B of chapter 1 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
        seq.).
            ``(5) Contract acreage.--The term `contract acreage' means 
        eligible cropland that is covered by a BER contract entered 
        into with the Secretary.
            ``(6) Eligible applicant.--The term `eligible applicant' 
        means--
                    ``(A) a collective group of owners and operators 
                producing or proposing to produce eligible dedicated 
                energy crops;
                    ``(B) an energy or agricultural company or 
                refinery; and
                    ``(C) an Agricultural Innovation Center established 
                pursuant to section 6402 of the Farm Security and Rural 
                Investment Act of 2002 (Public Law 107-171; 116 Stat. 
                426; 7 U.S.C. 1621 note).
            ``(7) Eligible cropland.--
                    ``(A) In general.--The term `eligible cropland' 
                means land that the applicable county committee of the 
                Farm Service Agency determines--
                            ``(i) is currently being tilled for the 
                        production of a crop for harvest; or
                            ``(ii) is not currently being tilled but 
                        has been tilled in a prior crop year and is 
                        suitable for production of an eligible 
                        dedicated energy crop.
                    ``(B) Exclusions.--The term `eligible cropland' 
                does not include--
                            ``(i) Federally-owned land;
                            ``(ii) land enrolled in--
                                    ``(I) the conservation reserve 
                                program;
                                    ``(II) the grassland reserve 
                                program; or
                                    ``(III) the wetlands reserve 
                                program; and
                            ``(iii) land with greater than 50 percent 
                        cover of native nonwoody vegetation or forest 
                        land, as of the date of enactment of this 
                        section.
            ``(8) Eligible dedicated energy crop.--
                    ``(A) In general.--The term `eligible dedicated 
                energy crop' means any crop native to the United 
                States, or another crop, as determined by the 
                Secretary, grown specifically to provide raw materials 
                for--
                            ``(i) conversion to liquid transportation 
                        fuels or chemicals through biochemical or 
                        thermochemical processes; or
                            ``(ii) energy generation through 
                        combustion, pyrolysis, gasification, cofiring, 
                        or other technologies, as determined by the 
                        Secretary.
                    ``(B) Exclusions.--The term `eligible dedicated 
                energy crop' does not include--
                            ``(i) any crop that is eligible for 
                        payments under title I or a successor title; or
                            ``(ii) any plant that is invasive or 
                        noxious or has the potential to become invasive 
                        or noxious, as determined by the Secretary, in 
                        consultation with other appropriate Federal or 
                        State departments and agencies.
            ``(9) Eligible participant.--The term `eligible 
        participant' means an owner or operator of contract acreage 
        that is physically located within a BER project area.
            ``(10) Federally-owned land.--The term `Federally-owned 
        land' means land owned by--
                    ``(A) the Federal Government (including any 
                department, instrumentality, bureau, or agency of the 
                Federal Government); or
                    ``(B) any corporation whose stock is wholly owned 
                by the Federal Government.
            ``(11) Forest land.--The term `forest land' means an 
        ecosystem that is at least 1 acre in size (including timberland 
        and woodland) and that (as determined by the Secretary)--
                    ``(A) is characterized by dense and extensive tree 
                cover;
                    ``(B) contains, or once contained, at least 10 
                percent tree crown cover; and
                    ``(C) is not developed and planned for exclusive 
                nonforest resource use.
            ``(12) Grassland reserve program.--The term `grassland 
        reserve program' means the grassland reserve program 
        established under subchapter C of chapter 2 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et 
        seq.).
            ``(13) Operator.--The term `operator' means an individual, 
        entity, or joint operation that is in control of the farming 
        operations on a farm during the applicable crop year.
            ``(14) Owner.--
                    ``(A) In general.--The term `owner' means a person 
                that has legal ownership of eligible cropland.
                    ``(B) Inclusion.--The term `owner' includes--
                            ``(i) a person that is buying eligible 
                        cropland under a contract for deed; and
                            ``(ii) a person that has a life estate in 
                        eligible cropland.
            ``(15) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) an Agricultural Innovation Center established 
                pursuant to section 6402 of the Farm Security and Rural 
                Investment Act of 2002 (Public Law 107-171; 116 Stat. 
                426; 7 U.S.C. 1621 note) with significant experience in 
                the field of renewable energy, as determined by the 
                Secretary; or
                    ``(B) in a region not served by a center referred 
                to in subparagraph (A)--
                            ``(i) an entity with significant experience 
                        in the field of renewable energy that is 
                        geographically located in such region, as 
                        determined by the Secretary; or
                            ``(ii) an accredited college or university 
                        with experience providing technical assistance 
                        in the field of renewable energy that is 
                        geographically located in such region, as 
                        determined by the Secretary.
            ``(16) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(17) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' means a farmer or 
        rancher who is a member of a socially disadvantaged group (as 
        defined in section 355(e) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2003(e))).
            ``(18) Wetlands reserve program.--The term `wetlands 
        reserve program' means the wetlands reserve program established 
        under subchapter C of chapter 1 of subtitle D of title XII of 
        the Food Security Act of 1985 (16 U.S.C. 3837 et seq.).
    ``(c) Establishment.--Not later than 90 days after the date of 
enactment of this section, the Secretary shall establish a biomass 
energy reserve in accordance with this section. The Secretary shall 
ensure the purposes in subsection (a) are met by including in the 
reserve projects that include a variety of harvest and post-harvest 
practices, including stubble height, unharvested strips (including 
strips for wildlife habitat), and varying harvest dates and a variety 
of monoculture and polyculture crop mixes, as appropriate, by project 
area.
    ``(d) Proposals for BER Project Areas.--
            ``(1) Selection of qualified organizations.--
                    ``(A) In general.--The Secretary shall select not 
                more than 10 qualified organizations to assist--
                            ``(i) eligible applicants in submitting 
                        proposals under paragraph (2); and
                            ``(ii) the Secretary in selecting BER 
                        project areas.
                    ``(B) Region.--The Secretary shall select not more 
                than 1 qualified organization to assist eligible 
                applicants and the Secretary in any particular region 
                of the United States, as determined by the Secretary.
                    ``(C) Funding.--The Secretary shall provide each 
                qualified organization selected under paragraph (1) not 
                more than $300,000 to carry out this paragraph.
            ``(2) Consultation with qualified organization.--An 
        eligible applicant may consult with and submit to a qualified 
        organization a written proposal that--
                    ``(A) identifies the eligible cropland that will be 
                a part of the proposed BER project area; and
                    ``(B) indicates a strong likelihood that the 
                proposed BER project area will generate a sufficient 
                quantity of biomass from eligible dedicated energy 
                crops and acres or other sources to supply an existing 
                bioenergy facility.
            ``(3) Minimum requirements.--The written proposal for a 
        proposed BER project area shall include--
                    ``(A) a description of the eligible cropland of 
                each eligible participant that will participate in the 
                proposed BER project area, including--
                            ``(i) the quantity of eligible cropland of 
                        each eligible participant;
                            ``(ii) the physical location of the 
                        eligible cropland;
                            ``(iii) the 1 or more eligible dedicated 
                        energy crops that will be produced on the 
                        eligible cropland; and
                            ``(iv) the type of land use or crop that 
                        will be displaced by the eligible dedicated 
                        energy crop;
                    ``(B)(i) the name, if available, and type, 
                location, and description of the bioenergy facility 
                that will use the eligible dedicated energy crops to be 
                produced in the proposed BER project area; and
                    ``(ii) a letter of commitment from a bioenergy 
                facility that the facility will use the eligible 
                dedicated energy crops intended to be produced in the 
                proposed BER project area;
                    ``(C) a general analysis of the anticipated local 
                economic impact of the proposed BER project; and
                    ``(D) any additional information needed to 
                determine the eligibility for, and ranking of, the 
                proposal, as determined by the Secretary.
            ``(4) Individual owners and operators.--A project area 
        proposal may not submit an individual proposal to participate 
        in the BER.
            ``(5) Eligibility criteria for ber project areas.--The 
        Secretary shall establish a system for ranking BER project 
        areas based on the following criteria:
                    ``(A) The probability that the eligible dedicated 
                energy crops proposed to be produced in the proposed 
                BER project area will be used for the purposes of the 
                BER.
                    ``(B) The inclusion of adequate potential 
                feedstocks and suitable placement with respect to the 
                bioenergy facility.
                    ``(C) The potential for a positive economic impact 
                in the proposed BER project area.
                    ``(D) The availability of the ownership of the 
                bioenergy facility in the proposed BER project area to 
                producers and local investors.
                    ``(E) The participation rate by beginning farmers 
                or ranchers or socially disadvantaged farmers or 
                ranchers.
                    ``(F) The potential to improve soil conservation 
                and water quality, and enhance wildlife habitat, when 
                compared to existing land uses.
                    ``(G) The variety of agronomic conditions the 
                proposed eligible dedicated energy crops will be grown 
                within a project area.
                    ``(H) The variety of harvest and post harvest 
                practices, including stubble height, unharvested strips 
                (including strips for wildlife habitat), and varying 
                harvest dates.
                    ``(I) The variety of monoculture and polyculture 
                crop mixes, as appropriate, by project area.
            ``(6) Selection of projects.--
                    ``(A) Ranking; submission to secretary.--Each 
                qualified organization selected by the Secretary under 
                paragraph (1) shall rank proposals submitted to such 
                qualified organization under paragraph (2) using the 
                system for ranking established by the Secretary under 
                paragraph (6) and shall submit to the Secretary up to 
                five of the highest ranked applications.
                    ``(B) Secretary selection.--The Secretary shall 
                authorize not less than one proposal submitted to the 
                Secretary from each qualified organization under 
                subparagraph (A).
    ``(e) Forest Biomass Planning Grants.--
            ``(1) In general.--The Secretary shall provide forest 
        biomass planning assistance grants to private landowners to 
        develop forest stewardship plans that involve sustainable 
        management of biomass from forest land of the private 
        landowners that will preserve diversity, soil, water, or 
        wildlife values of the land, while ensuring a steady supply of 
        biomass material, through--
                    ``(A) State forestry agencies, in consultation with 
                State wildlife agencies; and
                    ``(B) technical service provider arrangements with 
                third-parties.
            ``(2) Limitation.--The total amount of funds used to carry 
        out this subsection shall not exceed $5,000,000.
    ``(f) Duration of Contract.--
            ``(1) In general.--Subject to paragraph (2), for purposes 
        of carrying out the BER, the Secretary shall enter into 
        contracts of 5 years.
            ``(2) Early termination.--The Secretary may terminate a 
        contract early if the Secretary determines that--
                    ``(A) contract acreage will not be used to produce 
                an eligible dedicated energy crop;
                    ``(B) a material breach of the contract has 
                occurred;
                    ``(C) the owner or operator has died; or
                    ``(D) continuation of the contract will cause undue 
                economic hardship.
    ``(g) Contract Acreage Requirements.--
            ``(1) In general.--On approval of a BER project area by the 
        Secretary, each eligible participant in the BER project area 
        shall enter into a contract with the Secretary that is 
        consistent with the BER.
            ``(2) Additional eligible participants.--The Secretary may 
        add eligible participants to a BER project area after approval 
        of the BER project area.
            ``(3) Conservation practices.--To ensure the sustainability 
        of farm operations and the protection of soil, air, water and 
        wildlife, the Secretary shall include such terms and conditions 
        in a contract entered into under paragraph (1) as the Secretary 
        considers necessary.
            ``(4) Purposes.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible to participate in the 
                BER, an eligible participant may use eligible dedicated 
                energy crops produced on contract acreage only for the 
                purposes described in subsection (a).
                    ``(B) Personal use.--During the period before the 
                commercial viability of a bioenergy facility, an 
                eligible participant may use eligible dedicated energy 
                crops produced by the eligible participant on contract 
                acreage for personal use.
                    ``(C) Seed production.--During the period before 
                the commercial viability of a bioenergy facility, an 
                eligible participant may harvest and sell seed produced 
                on contract acreage.
            ``(5) Requirements.--To be eligible to participate in the 
        BER, during the term of the BER contract, an eligible 
        participant shall comply with--
                    ``(A) the highly erodible land conservation 
                requirements of subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.); and
                    ``(B) the wetland conservation requirements of 
                subtitle C of title XII of that Act (16 U.S.C. 3821 et 
                seq.).
    ``(h) Additional Eligible Biomass.--
            ``(1) In general.--The Secretary may allow on land that is 
        enrolled in the conservation reserve program and located within 
        the BER project area the harvesting of biomass--
                    ``(A) in exchange for a reduction of an applicable 
                annual payment in an amount to be determined by the 
                Secretary;
                    ``(B) in accordance with an approved conservation 
                reserve program plan, including mid-contract management 
                and forestry maintenance activities; and
                    ``(C) in a manner that ensures that biomass harvest 
                activities occur outside the official nesting and brood 
                rearing season for those plans.
    ``(i) Duties of Secretary.--The Secretary shall--
            ``(1) establish and administer the BER;
            ``(2) authorize establishment of BER project areas for the 
        purposes of the BER described in subsection (a);
            ``(3) develop procedures--
                    ``(A) to monitor the compliance of eligible 
                participants that have land enrolled in the BER with 
                the requirements of the BER;
                    ``(B) to measure the performance of the BER; and
                    ``(C) to demonstrate whether the long-term eligible 
                dedicated energy crop production goals are being 
                achieved.
            ``(4) enter into a written contract with each eligible 
        participant that elects to participate in the BER in a BER 
        project area;
            ``(5) not enter into a contract under the BER with an 
        individual owner or operator unless the land of the eligible 
        participant is physically located in an approved BER project 
        area; and
            ``(6) provide all payments under the contract directly to 
        the eligible participant.
    ``(j) Contracts.--A contract entered into between the Secretary and 
an eligible participant under the BER shall include, at a minimum, 
terms that cover--
            ``(1) requirements for the eligible participant in carrying 
        out the contract, including requirements described in 
        subsections (f), (g), and (l);
            ``(2) termination provisions;
            ``(3) payment terms and amounts to be provided on an annual 
        basis;
            ``(4) the sales or transfer of contract acreage;
            ``(5) the modification of the contract;
            ``(6) the maximum quantity of contract acreage and an 
        estimated schedule for how much eligible cropland will be 
        enrolled each contract year; and
            ``(7) any additional terms the Secretary considers 
        appropriate.
    ``(k) Payments.--
            ``(1) In general.--The Secretary shall provide payments 
        directly to eligible participants who enter into contracts 
        described in subsection (j) in accordance with such subsection.
            ``(2) Establishment payments.--
                    ``(A) In general.--The Secretary shall provide to 
                an eligible participant who enters into a BER contract 
                an establishment payment in an amount equal to the 
                costs of establishing an eligible dedicated energy crop 
                on the contract acreage covered by the contract.
                    ``(B) Eligible establishment payments.--The costs 
                for which an eligible owner may receive an 
                establishment payment under this paragraph include--
                            ``(i) the cost of seeds and stock; and
                            ``(ii) the cost of planting the crop.
            ``(3) Rental payments.--
                    ``(A) In general.--The Secretary shall make annual 
                rental payments to an eligible participant who enters 
                into a BER contract.
                    ``(B) Period.--An eligible participant shall 
                receive rental payments for a period of not more than 5 
                years after entering into a BER contract with the 
                Secretary on contract acreage.
                    ``(C) Reduction.--The Secretary shall reduce rental 
                payments under (A) by an amount determined to be 
                appropriate by the Secretary, if an eligible dedicated 
                energy crop is harvested in accordance with subsection 
                (g)(4).
    ``(l) Information Sharing.--
            ``(1) In general.--Owners and operators of a farm entering 
        into a contract with the Secretary under this section shall 
        agree to make available to the Secretary, or to an institution 
        of higher education or other entity designated by the 
        Secretary, such information as the Secretary considers to be 
        appropriate to promote the production of bioenergy crops and 
        the development of biorefinery technology; and
            ``(2) Best practices database.--Subject to section 1770 of 
        the Food Security Act of 1985 (7 U.S.C. 2276), the Secretary 
        shall make available to the public in a database format the 
        best practices information developed by the Secretary in 
        providing bioenergy assistance under this section.
    ``(m) Payments for Collecting, Harvesting, Storing, and 
Transporting Biomass Produced on BER Contract Acreage, Agricultural 
Waste Biomass, and Sustainably-Harvested Agricultural and Forest 
Residues.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may provide matching payments at a rate of $1 for every $1 per 
        ton provided by the bioenergy facility, in an amount equal to 
        not more than $45 per ton for a period of two years--
                    ``(A) to eligible participants for biomass produced 
                on BER contract acreage in exchange for a reduction of 
                the annual payment issued under subsection (k)(3), as 
                determined by the Secretary;
                    ``(B) to any producer of agricultural waste biomass 
                or sustainably-harvested agricultural and forest 
                residues in the United States for the agricultural 
                waste or residue; and
                    ``(C) for residue collected as a result of the 
                removal of noxious and invasive species, in accordance 
                with methods approved by the Secretary.
            ``(2) Forest land owner eligibility.--Owners of forest land 
        shall be eligible to receive payments under this subsection 
        only if such owners are acting pursuant to a forest stewardship 
        plan.
    ``(n) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012.''.

SEC. 9019. FOREST BIOMASS FOR ENERGY.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is further amended by adding at the end the 
following new section:

``SEC. 9018. FOREST BIOMASS FOR ENERGY.

    ``(a) In General.--The Secretary of Agriculture, through the Forest 
Service, shall conduct a competitive research and development program 
to encourage use of forest biomass for energy.
    ``(b) Eligible Entities.--Entities eligible to compete under this 
program include the Forest Service (through Research and Development), 
other Federal agencies, State and local governments, federally 
recognized Indian tribes, land grant colleges and universities, and 
private entities.
    ``(c) Priority for Project Selection.--The Secretary shall give 
priority to projects that--
            ``(1) develop technology and techniques to use low value 
        forest biomass, such as byproducts of forest health treatments 
        and hazardous fuels reduction, for the production of energy;
            ``(2) develop processes that integrate production of energy 
        from forest biomass into biorefineries or other existing 
        manufacturing streams;
            ``(3) develop new transportation fuels from forest biomass; 
        and
            ``(4) improve the growth and yield of trees intended for 
        renewable energy production.
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section 
$15,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 9019. COMMUNITY WOOD ENERGY PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the United States' over-reliance on fossil fuel energy 
        has placed undue strain on the nation by compromising our 
        economy and national security;
            (2) the United States' over-reliance on fossil fuel energy 
        has also created new strains on our natural systems, including 
        carbon emissions that contribute to climate change;
            (3) transportation of energy, such as heating oil, adds to 
        carbon emissions associated with meeting our community energy 
        needs and therefore further feeds climate change;
            (4) it is in the national interest to conserve energy and 
        support adoption of new local, sustainable, efficient, and 
        carbon neutral energy sources, such as wood energy, for 
        community energy needs;
            (5) communities can save as much as 50 percent over natural 
        gas, 80 percent over propane, 80 percent over electric heat, 
        and 50 percent over oil heat by switching to wood energy for 
        heating schools and other public buildings;
            (6) in fast growing communities of all sizes across the 
        United States, municipal and country-owned forest land is 
        playing an essential role in meeting many public needs and 
        could also be used to help support sustainable forestry and 
        local wood energy applications; and
            (7) the rapidly expanding base of private forest land 
        owners nationwide includes many individuals with no experience 
        in forest stewardship who could be given technical assistance 
        to provide locally sourced wood supply through sustainable 
        forest management for local wood energy applications.
    (b) Purpose.--The purpose of this section is to provide grants for 
community wood energy systems that are intended to--
            (1) meet community energy needs with reduced carbon 
        intensity versus fossil fuel systems;
            (2) promote energy conservation and development of new 
        renewable energy sources;
            (3) aid local budgets by reducing municipal and county 
        energy costs;
            (4) increase utilization of low value wood supplies and 
        waste, thereby strengthening the forest products economy for 
        the benefit of forest workers and private forest land owners; 
        and
            (5) increase awareness of energy conservation and 
        consumption and the multiple-use values of forests among 
        community members, especially young people.
    (c) Grant Program.--The Secretary of Agriculture, acting through 
the Forest Service, shall establish a program to be known as the 
Community Wood Energy Program to provide grants to State and local 
governments to acquire community wood energy systems for public 
buildings and to implement a community wood energy plan.
    (d) Use in Public Buildings.--A State or local government receiving 
a grant under subsection (c) shall use a community wood energy system 
acquired in whole or in part with the use of grant funds for primary 
use in a public facility owned by such State or local government.
    (e) Limitation.--A community wood energy system acquired with grant 
funds provided under subsection (c) shall not exceed an output of--
            (1) 50,000,000 BTU per hour for heating; and
            (2) 2 megawatts for electric power production.
    (f) Community Wood Energy Plan.--Within 18 months of receiving 
assistance under this section, communities shall utilize the technical 
assistance of the State forester to create a community wood energy plan 
identifying how local forests can be accessed in a sustainable manner 
to help meet the wood supply needs of systems purchased under this 
section.
    (g) Matching Funds.--A State or local government receiving a grant 
under subsection (c) shall contribute an amount of non-Federal funds 
towards the acquisition of community wood energy systems that is at 
least equal to the amount of grant funds received by such State or 
local government.
    (h) Community Wood Energy System Defined.--The term ``community 
wood energy system'' includes single facility central heating, district 
heating, combined heat and energy systems, and other related biomass 
energy systems that service schools, town halls, libraries, and other 
public buildings.
    (i) Appropriation.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.

SEC. 9020. SUPPLEMENTING CORN AS AN ETHANOL FEEDSTOCK.

    (a) Research and Development Program.--The Secretary of Agriculture 
shall establish a program to make grants of not to exceed $1,000,000 
each to no more than 20 universities for a 3-year program of 
demonstration of supplementing corn as an ethanol feedstock with sweet 
sorghum and switchgrass.
    (b) Program Goals.--The goals of the program under this section 
shall be to--
            (1) enhance agronomic efficiency of the crop on marginal 
        lands by--
                    (A) developing best management practices for 
                maintaining high yields while using less water and 
                nitrogen than corn;
                    (B) identifying and selecting plants with a high 
                sugar content; and
                    (C) developing cold-tolerant sweet sorghum 
                varieties to enable two crops to be grown per season;
            (2) enhance ethanol processing potential in the crop by--
                    (A) developing a robust technology for centralized 
                ethanol production facilities that pair high-performing 
                sweet sorghum lines with different yeasts to produce 
                the best process for converting sweet sorghum juice 
                into ethanol;
                    (B) conducting process and chemical analyses of 
                sweet sorghum sap fermentation;
                    (C) introducing cellulosic hydrolyzing enzymes into 
                sweet sorghum to promote biomass conversion; and
                    (D) performing life-cycle analysis of sweet sorghum 
                ethanol, including analysis of energy yield, 
                efficiency, and greenhouse gas reduction;
            (3) establish a production system optimized for the region 
        of the university conducting the research;
            (4) improve sweet sorghum lines with higher sugar 
        production and performance with minimal agricultural inputs;
            (5) optimize sugar fermentation using selected yeast 
        strains;
            (6) develop sweet sorghum lines with improved cold 
        tolerance and cellulosic degradation; and
            (7) develop agricultural models for predicting agricultural 
        performance and ethanol yield under various growing conditions.
    (c) Award Criteria.--The Secretary shall award grants under this 
section only to universities that--
            (1) have access to multiple lines of sweet sorghum for 
        research; and
            (2) are located in a State where sweet sorghum is 
        anticipated to grow well on marginal lands.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out this section 
$20,000,000.

             TITLE X--HORTICULTURE AND ORGANIC AGRICULTURE

                       Subtitle A--Honey and Bees

Sec. 10001. Annual report on response to honey bee colony collapse 
                            disorder.
                  Subtitle B--Horticulture Provisions

Sec. 10101. Tree assistance program.
Sec. 10102. Specialty crop block grants.
Sec. 10103. Additional section 32 funds for purchase of fruits, 
                            vegetables, and nuts to support domestic 
                            nutrition assistance programs.
Sec. 10103A Additional section 32 funds to provide grants for the 
                            purchase and operation of urban gardens 
                            growing organic fruits and vegetables for 
                            the local population.
Sec. 10104. Independent evaluation of Department of Agriculture 
                            commodity purchase process.
Sec. 10105. Quality requirements for clementines.
Sec. 10106. Implementation of food safety programs under marketing 
                            orders.
Sec. 10107. Inclusion of specialty crops in census of agriculture.
Sec. 10108. Maturity requirements for Hass avocados.
Sec. 10109. Mushroom promotion, research, and consumer information.
Sec. 10110. Fresh produce education initiative.
                Subtitle C--Pest and Disease Management

Sec. 10201. Pest and disease program.
Sec. 10202. Multi-species fruit fly research and sterile fly 
                            production.
                    Subtitle D--Organic Agriculture

Sec. 10301. National organic certification cost-share program.
Sec. 10302. Organic production and market data.
Sec. 10303. Organic conversion, technical, and educational assistance.
                  Subtitle E--Miscellaneous Provisions

Sec. 10401. Grant program to improve movement of specialty crops.
Sec. 10402. Authorization of appropriations for market news activities 
                            regarding specialty crops.
Sec. 10403. Farmer marketing program.
Sec. 10404. National Clean Plant Network.

                       Subtitle A--Honey and Bees

SEC. 10001. ANNUAL REPORT ON RESPONSE TO HONEY BEE COLONY COLLAPSE 
              DISORDER.

    The Secretary of Agriculture shall submit to Congress an annual 
report describing the progress made by the Department of Agriculture in 
investigating the cause or causes of honey bee colony collapse and in 
finding appropriate strategies to reduce colony loss.

                  Subtitle B--Horticulture Provisions

SEC. 10101. TREE ASSISTANCE PROGRAM.

    (a) Inclusion of Nursery Tree Growers.--
            (1) Eligibility.--Section 10201 of the Farm Security and 
        Rural Investment Act of 2002 (7 U.S.C. 8201) is amended--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) Nursery tree grower.--The term `nursery tree grower' 
        means a person who produces nursery, ornamental, fruit, nut, or 
        Christmas trees for commercial sale, as determined by the 
        Secretary.''.
            (2) Conforming amendments.--Subtitle C of title X of the 
        Farm Security and Rural Investment Act of 2002 is amended--
                    (A) in section 10202 (7 U.S.C. 8202)--
                            (i) in subsection (a), by inserting ``and 
                        nursery tree growers'' after ``eligible 
                        orchardists''; and
                            (ii) in subsection (b), by inserting ``or 
                        nursery tree grower'' after ``eligible 
                        orchardist''; and
                    (B) in section 10203 (7 U.S.C. 8203), by inserting 
                ``and nursery tree growers'' after ``eligible 
                orchardists''.
    (b) Annual Payment Limitation.--Section 10204(a) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8204(a)) is amended 
by striking ``$75,000'' and inserting ``$150,000 per year''.
    (c) Applicability.--The amendments made by this section shall apply 
with respect to any natural disaster occurring after the date of the 
enactment of this Act for which assistance is provided by the Secretary 
of Agriculture under the tree assistance program.

SEC. 10102. SPECIALTY CROP BLOCK GRANTS.

    (a) Extension of Program.--Subsection (a) of section 101 of the 
Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 7 
U.S.C. 1621 note) is amended by striking ``2009'' and inserting 
``2012''.
    (b) Availability of Funds.--Subsection (i) of section 101 of the 
Specialty Crops Competitiveness Act of 2004 is amended to read as 
follows:
    ``(i) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall make grants under this section, 
using--
            ``(1) $60,000,000 in fiscal year 2008;
            ``(2) $65,000,000 in fiscal year 2009;
            ``(3) $70,000,000 in fiscal year 2010;
            ``(4) $75,000,000 in fiscal year 2011; and
            ``(5) $95,000,000 in fiscal year 2012.''.
    (c) Conforming Amendments.--Section 101 of the Specialty Crops 
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is 
further amended--
            (1) in subsection (a), by striking ``Subject to the 
        appropriation of funds to carry out this section'' and 
        inserting ``Using the funds made available under subsection 
        (i)'';
            (2) in subsection (b), by striking ``appropriated pursuant 
        to the authorization of appropriations in'' and inserting 
        ``made available under''; and
            (3) in subsection (c), by striking ``Subject to the 
        appropriation of sufficient funds to carry out this subsection, 
        each'' and inserting ``Each''.
    (d) Definition of Specialty Crop.--Section 3(1) of the Specialty 
Crops Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 
note) is amended by inserting ``horticulture and'' before ``nursery''.
    (e) Definition of State.--Section 3(2) of the Specialty Crops 
Competitiveness Act of 2004 (Public Law 108-465; 7 U.S.C. 1621 note) is 
amended by striking ``and the Commonwealth of Puerto Rico'' and 
inserting ``the Commonwealth of Puerto Rico, Guam, American Samoa, the 
United States Virgin Islands, and the Commonwealth of the Northern 
Mariana Islands''.

SEC. 10103. ADDITIONAL SECTION 32 FUNDS FOR PURCHASE OF FRUITS, 
              VEGETABLES, AND NUTS TO SUPPORT DOMESTIC NUTRITION 
              ASSISTANCE PROGRAMS.

    (a) Funding for Additional Purchases of Fruits, Vegetables, and 
Nuts.--In addition to the purchases of fruits, vegetables, and nuts 
required by section 10603 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 612c-4), the Secretary of Agriculture shall purchase 
fruits, vegetables, and nuts for the purpose of providing nutritious 
foods for use in domestic nutrition assistance programs, using, of the 
funds made available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), the following amounts:
            (1) $190,000,000 in fiscal year 2008.
            (2) $193,000,000 in fiscal year 2009.
            (3) $199,000,000 in fiscal year 2010.
            (4) $203,000,000 in fiscal year 2011.
            (5) $206,000,000 in fiscal year 2012 and each fiscal year 
        thereafter.
    (b) Form of Purchases.--Fruits, vegetables, and nuts may be 
purchased under this section in the form of frozen, canned, dried, or 
fresh fruits, vegetables, and nuts.
    (c) Value Added Products.--The Secretary may consider offering 
value-added products containing fruits, vegetables or nuts under this 
section, taking into account--
            (1) whether demand exists for the value-added product; and
            (2) the interests of entities that receive fruits, 
        vegetables, and nuts under this section.

SEC. 10103A. ADDITIONAL SECTION 32 FUNDS TO PROVIDE GRANTS FOR THE 
              PURCHASE AND OPERATION OF URBAN GARDENS GROWING ORGANIC 
              FRUITS AND VEGETABLES FOR THE LOCAL POPULATION.

    (a) Grants.--The Secretary of Agriculture may make grants to 
eligible entities to assist in purchasing and operating organic gardens 
or greenhouses in urban areas for growing fruits and vegetables. In 
making such grants, the Secretary will ensure such fruits and 
vegetables are sold to local grocery stores.
    (b) Limitations.--Grants provided to any eligible entity under this 
section may not exceed $25,000 for any given year.
    (c) Eligible Entities.--
            (1) Individuals.--An individual shall be eligible to 
        receive a grant under subsection (a) if the individual is a 
        resident of the neighborhood in which the urban garden or 
        greenhouse is located, or will be located.
            (2) Cooperatives.--A cooperative shall be eligible to 
        receive a grant under subsection (a) if every individual member 
        or owner of the cooperative is a resident of the neighborhood 
        in which the urban garden or greenhouse is located, or will be 
        located.
    (d) Selection of Eligible Entities.--The Secretary shall develop 
criteria for the selection of eligible entities to receive grants under 
this section.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for fiscal year 2008 
and for each fiscal year thereafter.

SEC. 10104. 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 specialty crops.
    (b) Submission of Results.--Not later than one 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. 10105. QUALITY REQUIREMENTS FOR CLEMENTINES.

    Section 8e(a) of the Agricultural Adjustment Act (7 U.S.C. 608e-
1(a)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended in the first sentence by inserting 
after ``nectarines,'' the following: ``clementines,''.

SEC. 10106. IMPLEMENTATION OF FOOD SAFETY PROGRAMS UNDER MARKETING 
              ORDERS.

    Section 8c(6) of the Agricultural Adjustment Act (7 U.S.C. 
608c(6)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended by adding at the end the following:
    ``(K) In the case of an order related to a specialty crop (as such 
term is defined in section 3(1) of the Specialty Crops Competitiveness 
Act of 2004 (Public Law 108-465; 118 Stat. 3883)), authorizing the 
implementation of quality-related food safety programs designed to 
enhance the safety of the specialty crop and products derived from 
specialty crops.''.

SEC. 10107. INCLUSION OF SPECIALTY CROPS IN CENSUS OF AGRICULTURE.

    Section 2(a) of the Census of Agriculture Act of 1997 (7 U.S.C. 
2204g(a) is amended by adding at the end the following new sentence: 
``Beginning with the census of agriculture required to be conducted in 
2008, the Secretary shall conduct as part of each census of agriculture 
a census of specialty crops (as such term is defined in section 3(1) of 
the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 
118 Stat. 3883)).''.

SEC. 10108. MATURITY REQUIREMENTS FOR HASS AVOCADOS.

    Subtitle A of the Agricultural Marketing Act of 1946 is amended by 
adding at the end the following new section:

``SEC. 209. MATURITY REQUIREMENTS FOR HASS AVOCADOS.

    ``(a) Minimum Percentage of Dry Matter.--Not later than 180 days 
after the date of the enactment of the Farm, Nutrition, and Bioenergy 
Act of 2007, the Secretary of Agriculture shall issue final regulations 
to require that all Hass avocados sold to consumers in the United 
States meet the minimum maturity standard of not less than 20.8 percent 
dry matter.
    ``(b) Exceptions.--Subsection (a) and the regulations issued 
pursuant to such subsection shall not apply to Hass avocados--
            ``(1) intended for consumption by charitable institutions;
            ``(2) intended for distribution by relief agencies;
            ``(3) intended for commercial processing into products; or
            ``(4) that the Secretary determines should not be subject 
        to such subsection or such regulations.
    ``(c) Use of Existing Inspectors.--The Secretary shall, to the 
greatest extent practicable, use inspectors that inspect avocados for 
compliance with section 8e of the Agricultural Adjustment Act (7 U.S.C. 
608e-1), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, to conduct inspections under this section.
    ``(d) Civil Penalties.--The Secretary may require any person who 
violates this section or the regulations issued pursuant to this 
section to--
            ``(1) forfeit to the United States a sum equal to the value 
        of the commodity at the time of violation, which forfeiture 
        shall be recoverable in a civil suit bought in the name of the 
        United States; or
            ``(2) on conviction, be fined not less than $50 or more 
        than $5,000 for each violation.
    ``(e) Diversion.--In the case of any Hass avocados that do not meet 
the requirements of this section or the regulations issued pursuant to 
this section, the Secretary may--
            ``(1) provide for the reinspection of the Hass avocados; or
            ``(2) authorize the diversion, export, or repacking of the 
        Hass avocados.
    ``(f) Fees.--The Secretary may prescribe and collect fees to cover 
the costs of providing for the inspection of Hass avocados under this 
section. All fees and penalties collected shall be credited to the 
accounts that incur such costs and shall remain available until 
expended without fiscal year limitation.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this 
section.''.

SEC. 10109. MUSHROOM PROMOTION, RESEARCH, AND CONSUMER INFORMATION.

    (a) Regions and Members.--Section 1925(b)(2) of the Mushroom 
Promotion, Research, and Consumer Information Act of 1990 (subtitle B 
of title XIX of Public Law 101-624; 7 U.S.C. 6104(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``4 regions'' and 
        inserting ``3 regions'';
            (2) in subparagraph (D), by striking ``35,000,000 pounds'' 
        and inserting ``50,000,000 pounds''; and
            (3) by striking subparagraph (E), and inserting the 
        following new subparagraph:
                    ``(E) Additional members.--In addition to the 
                members appointed pursuant to paragraph (1), and 
                subject to the nine-member limit of members on the 
                council provided in such paragraph, the Secretary shall 
                appoint additional members to the council from a region 
                which attains additional pounds of production as 
                follows:
                            ``(i) If a region's annual production is 
                        greater than 110,000,000 pounds, but less than 
                        or equal to 180,000,000 pounds, the region 
                        shall be represented by one additional member.
                            ``(ii) If a region's annual production is 
                        greater than 180,000,000 pounds, but less than 
                        or equal to 260,000,000 pounds, the region 
                        shall be represented by two additional members.
                            ``(iii) If a region's annual production is 
                        greater than 260,000,000 pounds, the region 
                        shall be represented by three additional 
                        members.''.
    (b) Powers and Duties of Council.--Section 1925(c) of the Mushroom 
Promotion, Research, and Consumer Information Act of 1990 (subtitle B 
of title XIX of Public Law 101-624; 7 U.S.C. 6104(c)) is amended--
            (1) by redesignating paragraphs (6), (7), and (8) as 
        paragraphs (7), (8), and (9), respectively; and
            (2) by inserting after paragraph (5), the following new 
        paragraph (6):
            ``(6) to develop a program for good agricultural practices 
        and good handling practices for mushrooms;''.

SEC. 10110. FRESH PRODUCE EDUCATION INITIATIVE.

    (a) Initiative Authorized.--The Secretary of Agriculture may carry 
out a program to educate persons involved in the fresh produce industry 
and the public about--
            (1) scientifically proven practices for reducing 
        microbiological pathogens on fresh produce; and
            (2) methods of reducing the threat of cross-contamination 
        of fresh produce through unsanitary handling practices.
    (b) Cooperation.--The Secretary may carry out the program in 
cooperation with public or private partners.
    (c) Funding.--There are authorized to be appropriated such sums as 
are necessary for each of fiscal years 2008 through 2012 to carry out 
this section.

                Subtitle C--Pest and Disease Management

SEC. 10201. PEST AND DISEASE PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
program to--
            (1) conduct early pest detection and surveillance 
        activities in cooperation with state departments of 
        agriculture;
            (2) determine and prioritize pest and disease threats to 
        domestic production of specialty crops; and
            (3) create an audit-based certification approach to protect 
        against the spread of plant pests and to facilitate the 
        interstate movement of plants and plant products.
    (b) Early Pest Detection and Surveillance Improvement Program.--
            (1) Cooperative agreements.--The Secretary of Agriculture 
        shall enter into cooperative agreements with State departments 
        of agriculture to provide grants to such State departments of 
        agriculture for early pest detection and surveillance 
        activities.
            (2) Application.--A State department of agriculture seeking 
        to enter into a cooperative agreement under this subsection 
        shall submit to the Secretary an application containing such 
        information as the Secretary may require. The Secretary shall 
        notify applicants of the following:
                    (A) The requirements to be imposed on a department 
                of agriculture for auditing of, and reporting on, the 
                use of any funds provided by the Secretary under the 
                cooperative agreement.
                    (B) The criteria to be used to ensure that early 
                pest detection and surveillance activities supported 
                under the cooperative agreement are based on sound 
                scientific data or thorough risk assessments.
                    (C) The means of identifying pathways of pest 
                introductions.
            (3) Use of funds.--
                    (A) 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 
                approved by the Secretary to prevent the introduction 
                or spread of a pest.
                    (B) Subagreements.--A State department of 
                agriculture may use funds received under this section 
                to enter into subagreements with political subdivisions 
                in such State that have legal responsibilities relating 
                to agricultural pest and disease surveillance.
            (4) Special funding considerations.--The Secretary shall 
        provide, subject to the availability of funds under subsection 
        (j), 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:
                    (A) The number of international airports and 
                maritime facilities in that State.
                    (B) The volume of international passenger and cargo 
                entry into that State.
                    (C) 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.
                    (D) The types of agricultural commodities or plants 
                produced in that State and if the commodities or plants 
                produced are conducive to agricultural pest and disease 
                establishment due to the climate or crop diversity of 
                that State.
                    (E) 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.
                    (F) Such other factors as the Secretary considers 
                appropriate.
            (5) Cost-share.--
                    (A) Federal cost share; form of non-federal cost 
                share.--Except as provided in subparagraph (B), a 
                cooperative agreement entered into under paragraph (1) 
                shall provide that--
                            (i) the Federal share of carrying out the 
                        cooperative agreement shall not exceed 75 
                        percent of the total cost;
                            (ii) the non-Federal share of the cost of 
                        carrying out the agreement may be provided in-
                        kind; and
                            (iii) in-kind costs may include indirect 
                        costs as considered appropriate by the 
                        Secretary.
                    (B) Ability to provide funds.--The Secretary shall 
                not take the ability to provide non-Federal costs to 
                carry out a cooperative agreement entered into under 
                paragraph (1) into consideration when deciding whether 
                to enter into a cooperative agreement with a State 
                department of agriculture.
                    (C) Special funding considerations.--The non-
                federal share of carrying out paragraph (4) shall not 
                exceed 40 percent of the total costs of carrying out 
                such paragraph.
            (6) Reporting requirement.--Not later than 180 days after 
        the date of completion of an early pest detection and 
        surveillance activity conducted by a State department of 
        agriculture using funds provided under this section, the 
        department of agriculture shall submit to the Secretary a 
        report that describes the purposes and results of the 
        activities, including any activities conducted pursuant to a 
        subagreement referred to in paragraph (3)(B).
    (c) Threat Identification and Mitigation Program.--
            (1) In general.--In conducting the program established 
        under subsection (a), the Secretary shall--
                    (A) develop risk assessments of the existing and 
                potential threat to the specialty crop industry in the 
                United States from pests and disease;
                    (B) prepare a list prioritizing pest and disease 
                threats to the specialty crop industry;
                    (C) develop action plans, in consultation with 
                State departments of agriculture and other State or 
                regional resource partnerships, that effectively 
                address pest and disease threats to the specialty crop 
                industry, including pathway analysis, domestic and 
                offshore mitigation measures, and comprehensive 
                exclusion measures at ports of entry and other key 
                distribution centers, in addition to strategies to 
                employ if a pest or disease is introduced;
                    (D) implement such action plans as soon as they are 
                developed to test the effectiveness of such action 
                plans and help prevent new foreign and domestic pest 
                and disease threats from being introduced or widely 
                disseminated in the United States; and
                    (E) collaborate with the nursery industry, research 
                institutions, and other appropriate entities to develop 
                a nursery pest risk management system to identify 
                nursery pests and diseases, prevent the introduction, 
                establishment, and spread of such pests and diseases, 
                and reduce the risk of, prioritize, mitigate, and 
                eradicate such pests and diseases.
            (2) Reports.--Not later than one year after the date of the 
        enactment of this Act, and annually thereafter, the Secretary 
        shall update and submit to Congress the priority list and 
        action plans described in paragraph (1), including an 
        accounting of funds expended on the action plans.
    (d) Audit-Based Approach to Specialty Crop Phytosanitary 
Certification.--In conducting the program established under subsection 
(a), the Secretary shall provide funds and technical assistance to 
specialty crop growers, organizations representing such growers, and 
State and local agencies working with such growers and organizations 
for the development and implementation of certification systems based 
on audit-based approaches, such as best management practices or nursery 
pest risk management systems, to address plant pests and to mitigate 
the risk of plant pests in the movement of plants and plant products.
    (e) Cooperative Agreements.--The Secretary may enter into 
cooperative agreements with other Federal departments or agencies, 
States or political subdivisions of States, national governments, local 
governments of other nations, domestic or international organizations, 
domestic or international associations, and other persons to carry out 
this section.
    (f) Consultation.--The Secretary shall consult with the National 
Plant Board, State departments of agriculture, and specialty crop 
grower organizations to establish funding priorities under this section 
for each fiscal year.
    (g) Administrative Costs.--Not more than 5 percent of the funds 
provided under this section may be used for administrative costs.
    (h) Definitions.--In this section:
            (1) 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 established, or before 
        pest infestations become too large and costly to eradicate or 
        control.
            (2) 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)).
            (3) Specialty crop.--The term ``specialty crop'' has the 
        meaning given the term in section 3(1) of the Specialty Crop 
        Competitiveness Act of 2004 (Public Law 108-465; 118 Stat. 
        3883; 7 U.S.C. 1621 note).
            (4) 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.
    (i) Secretarial Discretion.--Section 442(c) of the Plant Protection 
Act (7 U.S.C. 7772(c)) is amended by striking ``of longer than 60 
days''.
    (j) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available to carry out this section--
            (1) $10,000,000 for fiscal year 2008;
            (2) $25,000,000 for fiscal year 2009;
            (3) $40,000,000 for fiscal year 2010;
            (4) $55,000,000 for fiscal year 2011; and
            (5) $70,000,000 for fiscal year 2012.

SEC. 10202. MULTI-SPECIES FRUIT FLY RESEARCH AND STERILE FLY 
              PRODUCTION.

    (a) Construction.--The Secretary of Agriculture shall construct a 
warehouse and irradiation containment facility in Waimanalo, Hawaii, to 
support fruit fly rearing and sterilization activities.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated--
            (1) $15,000,000 for the construction of a warehouse and 
        irradiation containment facility pursuant to subsection (a); 
        and
            (2) $1,000,000 for fiscal year 2008 and each subsequent 
        fiscal year for maintenance to the facilities constructed 
        pursuant to this section.

                    Subtitle D--Organic Agriculture

SEC. 10301. 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--
            (1) in subsection (a), by striking ``$5,000,000 for fiscal 
        year 2002'' and inserting ``$22,000,000 for fiscal year 2008''; 
        and
            (2) in subsection (b)(2), by striking ``$500'' and 
        inserting ``$750''.

SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA.

    (a) New Data Requirements.--Section 7407 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 5925c) is amended to read as 
follows:

``SEC. 7407. ORGANIC DATA COLLECTION AND PUBLICATION.

    ``(a) Data Collection and Publication.--To assist organic farmers 
in making informed production and marketing decisions, the Secretary of 
Agriculture shall collect and publish segregated data and survey 
information about the price, production, and marketing of major 
organically produced commodities, as determined by the Secretary.
    ``(b) Funding.--The Secretary of Agriculture shall use $3,000,000 
of the funds of the Commodity Credit Corporation to carry out this 
section during fiscal year 2008, and such funds shall remain available 
until expended.''.
    (b) Implementation Report.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Agriculture shall submit 
to Congress a report regarding the progress made in implementing the 
amendment made by subsection (a).

SEC. 10303. ORGANIC CONVERSION, TECHNICAL, AND EDUCATIONAL ASSISTANCE.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall establish a program to 
provide cost share and incentive payments and technical and educational 
assistance to producers to promote conservation practices and 
activities for production systems undergoing transition, in whole or in 
part, to organic production in accordance with the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et seq.).
    (b) Organic Transition Cost Share and Incentive Payments.--
            (1) In general.--The Secretary shall enter into contracts 
        with eligible producers referred to in paragraph (2) to provide 
        cost-share and incentive payments to assist in the transition 
        to organic production systems.
            (2) Eligible producers.--A producer is an eligible producer 
        under this paragraph if such producer agrees to--
                    (A) develop and carry out environmental and 
                conservation activities consistent with an organic plan 
                that protect soil, water, wildlife, air, and other 
                natural resources as defined by the Secretary;
                    (B) receive technical and education assistance from 
                the Secretary, or from organizations, institutions, and 
                consultants with cooperative agreements with the 
                Secretary, relating to--
                            (i) the development and implementation of 
                        conservation practices and activities that are 
                        part of an organic plan; or
                            (ii) other aspects of transition to organic 
                        production, including marketing, credit, 
                        business, and risk management plans;
                    (C) submit to annual verification by a certifying 
                agent accredited by the Department of Agriculture under 
                section 2115 of the Organic Foods Production Act of 
                1990 (7 U.S.C. 6514) to determine compliance of the 
                producer with organic certification requirements; and
                    (D) develop marketing, credit, business, and risk 
                management plans, as appropriate.
            (3) Contract.--A contract entered into under paragraph (1) 
        shall provide that--
                    (A) payments provided to a producer under the 
                contract shall only be used for--
                            (i) conservation management and vegetative 
                        and structural practices and activities during 
                        transition to certified organic production 
                        that--
                                    (I) are consistent with an organic 
                                plan; and
                                    (II) protect soil, water, wildlife, 
                                air, and other natural resources, as 
                                required under the Organic Foods 
                                Production Act of 1990 (7 U.S.C. 6501 
                                et seq.);
                            (ii) animal production measures consistent 
                        with an organic plan; and
                            (iii) such other measures as the Secretary 
                        determines are appropriate and consistent with 
                        an organic plan;
                    (B) subject to subparagraph (C), the contract shall 
                terminate after a period of not more than three years;
                    (C) the Secretary may terminate the contract if the 
                Secretary determines the eligible producer is not 
                pursuing organic certification under the Organic Foods 
                Production Act of 1990 (7 U.S.C. 6501 et seq.); and
                    (D) the Secretary may require repayment in whole of 
                payments already received if the Secretary determines 
                the eligible producer is not pursuing organic 
                certification under the Organic Foods Production Act of 
                1990 (7 U.S.C. 6501 et seq.).
            (4) Limitations on payments.--An eligible producer may not 
        receive payments under paragraph (1)--
                    (A) for a total period of more than three years;
                    (B) an amount not to exceed $50 per acre for crop 
                land, or $25 per acre for grazing land; and
                    (C) in an amount more than $10,000 in a fiscal 
                year.
    (c) Technical and Educational Assistance.--The Secretary shall 
provide producers with technical and educational assistance, including 
through the use of competitive cooperative agreements with non-profit 
organizations, non-governmental organizations, institutes of higher 
education, or consultants with expertise in advisory services for 
organic producers on organic production systems, and the planning for 
and marketing of organic products.
    (d) Use of Funds.--The Secretary shall use 50 percent of the funds 
made available pursuant to the authorization of appropriations under 
subsection (f) to provide technical and educational assistance under 
subsection (c).
    (e) Definitions.--In this section:
            (1) Organic plan.--The term ``organic plan'' means an 
        organic plan submitted under section 2114(a) of the Organic 
        Foods Production Act of 1990 (7 U.S.C. 6513(a)) and agreed to 
        by the producer and handler of a product and a certifying agent 
        under such section.
            (2) Technical and educational assistance.--The term 
        ``technical and educational assistance'' means the conveyance 
        of information and counsel regarding economic and business 
        planning, marketing, and organic practices, such as 
        entomological practices and pest and weed control and 
        prevention that satisfy organic practices.
    (f) Funding.--There is authorized to be appropriated to carry out 
this section $50,000,000, which shall remain available until expended.

                  Subtitle E--Miscellaneous Provisions

SEC. 10401. GRANT PROGRAM TO IMPROVE MOVEMENT OF SPECIALTY CROPS.

    (a) Grants Authorized.--The Secretary of Agriculture may make 
grants under this section to an eligible entity described in subsection 
(b)--
            (1) to improve the cost-effective movement of specialty 
        crops to local, regional, national, and international markets; 
        and
            (2) to address regional intermodal transportation 
        deficiencies that adversely affect the movement of specialty 
        crops to markets inside or outside the United States.
    (b) Eligible Grant Recipients.--Grants may be made under this 
section to any of the following (or a combination thereof):
            (1) State and local governments.
            (2) Grower cooperatives.
            (3) State or regional producer and shipper organizations.
            (4) Other entities as determined to be appropriate by the 
        Secretary.
    (c) Matching Funds.--The recipient of a grant under this section 
shall contribute an amount of non-Federal funds toward the project for 
which the grant is provided that is at least equal to the amount of 
grant funds received by the recipient under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
2008 through 2012 to carry out this section.

SEC. 10402. AUTHORIZATION OF APPROPRIATIONS FOR MARKET NEWS ACTIVITIES 
              REGARDING SPECIALTY CROPS.

    There are authorized to be appropriated to the Secretary of 
Agriculture such sums as may be necessary for each of the fiscal years 
2008 through 2012 to support the market news activities regarding 
specialty crops (as such term is defined in section 3(1) of the 
Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 118 
Stat. 3883)).

SEC. 10403. FARMER MARKETING ASSISTANCE PROGRAM.

    (a) Findings.--Congress finds that--
            (1) agricultural direct farmer-to-consumer marketing 
        activities, including farmers' markets, roadside stands, 
        community supported agriculture, internet, mail-order, and 
        other similar direct order marketing activities, significantly 
        enhance the ability of agricultural producers to retain a 
        greater share of their products' retail value;
            (2) direct farmer-to-consumer marketing activities are a 
        crucial component of the current and future viability of small 
        and mid-sized farms and ranches and beginning and socially 
        disadvantaged farmers and ranchers; and
            (3) agricultural direct marketing activities contribute to 
        the health and well-being of consumers in rural, urban, and 
        tribal communities by providing access to healthy, fresh, and 
        affordable food.
    (b) Program.--Section 6 of the Farmer-to-Consumer Direct Marketing 
Act of 1976 (7 U.S.C. 3005) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Farmers' Market Promotion 
                Program'' and inserting ``Farmer Marketing Assistance 
                Program''; and
                    (B) by striking ``promote farmers' markets'' and 
                inserting ``direct producer to consumer marketing'';
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``, domestic 
                farmers' markets, roadside stands, community-supported 
                agriculture programs, and other''; and
                    (B) in subparagraph (B), by striking ``farmers' 
                markets, roadside stands, community-supported 
                agriculture programs, and other direct producer-to-
                consumer infrastructure'' and inserting ``direct 
                producer-to-consumer marketing and infrastructure 
                opportunities'';
            (3) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (7) as 
                paragraphs (2) through (8), respectively;
                    (B) by inserting before paragraph (2) the following 
                new paragraph:
            ``(1) two or more farmers or farm vendors who sell products 
        through a common channel of distribution;''; and
                    (C) in paragraph (2) (as so redesignated) by 
                striking ``an agricultural cooperative'' and inserting 
                ``an agricultural cooperative or producer network or 
                association'';
            (4) by striking subsection (e) and inserting the following 
        new subsections:
    ``(e) Eligible Activities.--A recipient of a grant under this 
section may use the funds for the following activities:
            ``(1) Farmers markets.
            ``(2) Roadside stands.
            ``(3) Community supported agriculture operations, through 
        which a farmer agrees to deliver a certain quantity of 
        agricultural products to consumers at a set price.
            ``(4) The purchase of equipment or other activities 
        supporting the use of electronic benefit transfer systems at 
        farmers markets.
            ``(5) Agritourism activities facilitating the direct sale 
        of agricultural products, including operations where the 
        consumer picks their own agricultural products.
            ``(6) Other activities as determined appropriate by the 
        Secretary.
    ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary of Agriculture shall use to carry 
        out this section--
                    ``(A) $5,000,000 in each of fiscal year 2008, 2009, 
                and 2010; and
                    ``(B) $10,000,000 in each of fiscal years 2011 and 
                2012.
            ``(2) Use of funds.--Not less than 10 percent of the funds 
        used to carry out this section in a fiscal year under paragraph 
        (1) shall be used to support the use of electronic benefits 
        transfers at farmers' markets.''.

SEC. 10404. NATIONAL CLEAN PLANT NETWORK.

    (a) Establishment.--There is established in the Department of 
Agriculture a program to be known as the ``National Clean Plant 
Network''.
    (b) Network.--The Secretary of Agriculture shall use the network--
            (1) 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; and
            (2) to enter into cooperative agreements to entities that 
        have the expertise, facilities, and climate necessary to 
        efficiently produce, maintain, and distribute healthy planting 
        stock for specialty crops.
    (c) Funding.--
            (1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall make 
        available to carry out this section $20,000,000 for fiscal 
        years 2008 through 2012.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary for each of 
        fiscal years 2008 through 2012 to carry out this section.

SEC. 10405. HEALTHY FOOD URBAN ENTERPRISE DEVELOPMENT PROGRAM.

    (a) Purpose.--The purpose of this section is to support farm and 
ranch income by significantly enhancing a producer's share of the final 
retail product price through improved access to competitive processing 
and distribution systems which deliver affordable, locally and 
regionally produced foods to consumers, and improve food access in 
underserved communities.
    (b) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' 
        includes--
                    (A) a small or midsized processor, distributor, 
                wholesaler, or retail food outlet;
                    (B) a group of producers operating as a legally 
                recognized marketing alliance;
                    (C) a producer-owned cooperative;
                    (D) a nonprofit organization;
                    (E) an economic development or community 
                development corporation;
                    (F) a unit of State or local government; and
                    (G) an academic institution.
            (2) 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).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (4) Socially disadvantaged farmer or rancher.--The term 
        ``socially disadvantaged farmer or rancher'' has the meaning 
        given the term in section 355(e) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 2003(e)).
            (5) Underserved community.--The term ``underserved 
        community'' includes any community that may have, as determined 
        by the Secretary--
                    (A) limited access to affordable, healthy foods, 
                including fresh fruits and vegetables, in grocery 
                retail stores or farmer-to-consumer direct markets;
                    (B) high incidences of diet-related diseases, 
                including obesity;
                    (C) high rates of hunger or food insecurity; or
                    (D) severe or persistent poverty in urban or rural 
                communities, including Indian tribal communities.
    (c) Grant Program.--
            (1) Establishment.--The Secretary, acting through the head 
        of the market services branch of the Agricultural Marketing 
        Service, shall establish a program under which the Secretary 
        shall provide grants, on a competitive basis, to eligible 
        entities to conduct enterprise feasibility studies (including 
        studies of consumer preference), in accordance with the purpose 
        of this section.
            (2) Application.--To be eligible to receive a grant under 
        this subsection, an eligible entity shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (3) Coordination with other agencies.--In carrying out the 
        program under this subsection, the Secretary shall coordinate, 
        with respect to the development of the program and reviews of 
        grant applications, with--
                    (A) the Cooperative State Research, Education, and 
                Extension Service; and
                    (B) the Rural Business Cooperative Service.
            (4) Priority.--In providing grants under this subsection, 
        the Secretary shall give priority to applications with proposed 
        projects that--
                    (A) include features effectively targeting 
                participation by socially disadvantaged farmers or 
                ranchers or beginning farmers or ranchers;
                    (B) increase employment opportunities in 
                underserved communities;
                    (C) support small and mid-sized farm viability and 
                increase farming opportunities; or
                    (D) establish and maintain satisfactory 
                environmental and labor standards, including worker 
                protection.
            (5) Maximum amount.--The amount of a grant provided under 
        this subsection shall not exceed $250,000.
            (6) Term.--A grant provided under this subsection shall 
        have a term of not more than 3 years.
            (7) Reports.--
                    (A) In general.--Each eligible entity that receives 
                a grant under this subsection shall submit to the 
                Secretary an annual report describing the results and 
                progress of each feasibility study to ensure sufficient 
                progress is achieved with respect to the goals of the 
                projects carried out by the eligible entity.
                    (B) Public availability.--The Secretary shall 
                ensure that any information contained in a report under 
                subparagraph (A) relating to consumer preference or 
                producer availability is made available to the public.
            (8) Funding.--There are authorized to be appropriated such 
        sums as are necessary for each of fiscal years 2008 through 
        2012 to carry out this section.
    (d) Grant Program Requirements.--
            (1) Technical assistance and outreach.--
                    (A) In general.--The Secretary shall--
                            (i) provide to the public information 
                        relating to the grant programs under this 
                        section; and
                            (ii) provide technical assistance to--
                                    (I) socially disadvantaged farmers 
                                or ranchers;
                                    (II) Indian tribal organizations;
                                    (III) low-income populations; and
                                    (IV) other underserved communities 
                                and producers.
                    (B) Service providers.--In carrying out 
                subparagraph (A), the Secretary may enter into 
                contracts, on a competitive basis, with entities that, 
                as determined by the Secretary--
                            (i) demonstrate experience in serving 
                        socially disadvantaged farmers or ranchers and 
                        other underserved communities and producers;
                            (ii) include, in the governance structure 
                        of the entity, 2 or more members representing 
                        the targeted communities served by the entity; 
                        and
                            (iii) will share information developed or 
                        used by the entity with--
                                    (I) researchers;
                                    (II) practitioners; and
                                    (III) other interested parties.
            (2) Limitations.--For purposes of the programs under this 
        section, the Secretary--
                    (A) shall not give preference to any entity based 
                on an agricultural commodity produced or supported by 
                the entity; and
                    (B) shall encourage, to the maximum extent 
                practicable, projects that use infrastructure 
                efficiently for more than 1 agricultural product.
            (3) Report.--Not less frequently than once each year, the 
        Secretary shall submit to Congress a report that describes the 
        programs (including the level of participation in each program) 
        under this section, including information relating to--
                    (A) projects carried out under this section;
                    (B) characteristics of the agricultural producers 
                and communities served by the projects;
                    (C) the benefits of the projects;
                    (D) data necessary to comply with--
                            (i) section 2501A of the Food, Agriculture, 
                        Conservation, and Trade Act of 1990 (7 U.S.C. 
                        2279-1); or
                            (ii) section 8(b)(5)(B) of the Soil 
                        Conservation and Domestic Allotment Act (16 
                        U.S.C. 590h(b)(5)); and
                    (E) outreach and technical assistance activities 
                carried out by the Secretary under paragraph (1).

                   TITLE XI--MISCELLANEOUS PROVISIONS

                   Subtitle A--Federal Crop Insurance

Sec. 11001. Premiums and reinsurance requirements.
Sec. 11002. Catastrophic risk protection administrative fee.
Sec. 11003. Funding for reimbursements, contracting, risk management 
                            education, and information technology.
Sec. 11004. Reimbursement of research and development costs related to 
                            new crop insurance products.
Sec. 11005. Research and development contracts for organic production 
                            coverage improvements.
Sec. 11006. Targeting risk management education for beginning farmers 
                            and ranchers and certain other farmers and 
                            ranchers.
Sec. 11007. Crop insurance ineligibility related to crop production on 
                            noncropland.
Sec. 11008. Funds for data mining.
Sec. 11009. Noninsured crop assistance program.
Sec. 11010. Change in due date for Corporation payments for 
                            underwriting gains.
Sec. 11011. Sesame insurance pilot program.
Sec. 11012. National Drought Council and drought preparedness plans.
Sec. 11013. Payment of portion of premium for area revenue plans.
Sec. 11014. Share of risk.
Sec. 11015. Livestock Assistance.
Sec. 11016. Determination of certain sweet potato production.
                   Subtitle B--Livestock and Poultry

Sec. 11101. Sense of Congress regarding pseudorabies eradication 
                            program.
Sec. 11102. Arbitration of livestock and poultry contracts.
Sec. 11103. State-inspected meat and poultry.
Sec. 11104. Country of origin labeling.
Sec. 11105. Sense of Congress regarding the voluntary control program 
                            for low pathogenic avian influenza.
Sec. 11106. Sense of Congress regarding the cattle fever tick 
                            eradication program.
   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

Sec. 11201. Outreach and technical assistance for socially 
                            disadvantaged farmers and ranchers and 
                            limited resource farmers and ranchers.
Sec. 11202. Improved program delivery by Department of Agriculture on 
                            Indian reservations.
Sec. 11203. Transparency and accountability for socially disadvantaged 
                            farmers and ranchers.
Sec. 11204. Beginning farmer and rancher development program.
Sec. 11205. Provision of receipt for service or denial of service.
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and 
                            limited resource farmers and ranchers in 
                            Census of Agriculture and certain studies.
Sec. 11207. Farmworker coordinator.
Sec. 11208. Office of Outreach relocation.
Sec. 11209. Minority farmer advisory committee.
Sec. 11210. Coordinator for chronically underserved rural areas.
               Subtitle D--Other Miscellaneous Provisions

Sec. 11301. Designation of separate cotton-producing States under 
                            Cotton Research and Promotion Act.
Sec. 11302. Cotton classification services.
Sec. 11303. Availability of excess and surplus computers in rural 
                            areas.
Sec. 11304. Permanent debarment from participation in Department of 
                            Agriculture programs for fraud.
Sec. 11305. No discrimination against use of registered pesticide 
                            products or classes of pesticide products.
Sec. 11306. Prohibition on closure or relocation of county offices for 
                            the Farm Service Agency, Rural Development 
                            Agency, and Natural Resources Conservation 
                            Service.
Sec. 11307. Regulation of exports of plants, plant products, biological 
                            control organisms, and noxious weeds.
Sec. 11308. Grants to reduce production of methamphetamines from 
                            anhydrous ammonia.
Sec. 11309. USDA Graduate School.
Sec. 11310. Prevention and investigation of payment and fraud and 
                            error.
Sec. 11311. Sense of Congress regarding food deserts, geographically 
                            isolated neighborhoods and communities with 
                            limited or no access to major chain grocery 
                            stores.
Sec. 11312. Pigford claims.
Sec. 11313. Comptroller general study of wastewater infrastructure near 
                            United States-Mexico border.
Sec. 11314. Elimination of statute of limitations applicable to 
                            collection of debt by administrative 
                            offset.
Sec. 11315. Pollinator protection.
Sec. 11316. Prohibition on use of live animals for marketing medical 
                            devices; fines under the Animal Welfare 
                            Act.
Sec. 11317. Protection of pets.

                   Subtitle A--Federal Crop Insurance

SEC. 11001. PREMIUMS AND REINSURANCE REQUIREMENTS.

    (a) Premium Adjustments.--Section 508(a) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(a)) is amended by adding at the end the 
following new paragraph:
            ``(9) Premium adjustments.--
                    ``(A) Prohibition.--Except as provided in 
                subparagraph (B), the paying, allowing, or giving, or 
                offering to pay, allow, or give, directly or 
                indirectly, either as an inducement to procure 
                insurance or after insurance has been procured, any 
                rebate, discount, abatement, credit, or reduction of 
                the premium named in an insurance policy or any other 
                valuable consideration or inducement whatsoever not 
                specified in the policy, is strictly prohibited under 
                this title.
                    ``(B) Exceptions.--Subparagraph (A) does not apply 
                with respect to the following:
                            ``(i) A rebate authorized under subsection 
                        (b)(5)(B).
                            ``(ii) A performance-based discount 
                        authorized under subsection (d)(3).''.
    (b) Payment of Catastrophic Risk Protection Fee on Behalf of 
Producers.--Section 508(b)(5)(B) of the Federal Crop Insurance Act (7 
U.S.C. 1508(b)(5)(B)) is amended--
            (1) in the subparagraph heading, by inserting ``of 
        catastrophic risk protection fee'' after ``Payment'';
            (2) in clause (i)--
                    (A) by striking ``or other payment''; and
                    (B) by striking ``with catastrophic risk protection 
                or additional coverage''; and inserting ``through the 
                payment of all or a portion of catastrophic risk 
                protection administrative fees'';
            (3) in clause (ii)--
                    (A) by striking ``or other payment made by an 
                insurance provider'' and inserting ``payment made 
                pursuant to clause (i) by an insurance provider'';
                    (B) by striking ``issuance of catastrophic risk 
                protection or additional coverage to'' and inserting 
                ``payment of catastrophic risk protection 
                administrative fees on behalf of''; and
                    (C) by striking ``or other payment'' the second 
                place it appears;
            (4) in clause (iv), by striking ``A policy or plan of 
        insurance'' and inserting ``Catastrophic risk protection 
        coverage'';
            (5) in clause (v)--
                    (A) by striking ``licensing fee or other 
                arrangement under this subparagraph'' and inserting 
                ``licensing fee arrangement''; and
                    (B) by striking ``levels of additional coverage'' 
                and inserting ``levels of coverage''; and
            (6) by striking clause (vi).
    (c) Change in Due Date for Policyholder Premiums.--Section 508 of 
the Federal Crop Insurance Act (7 U.S.C. 1508) is amended--
            (1) in subsection (b)(5)(C), by striking ``the date that 
        premium'' and inserting ``the same date on which the premium'';
            (2) in subsection (c)(10)(B)--
                    (A) by inserting ``; time for payment'' after 
                ``waiver''; and
                    (B) by adding at the end the following new 
                sentence: ``Subparagraph (C) of such subsection shall 
                apply with respect to the collection date for policy 
                premiums.''; and
            (3) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(4) Billing date for premiums.--Beginning with the 2012 
        reinsurance year, the Corporation shall establish August 1 as 
        the billing date for premiums.''.
    (d) Reinsurance.--
            (1) Reimbursement rate.--Section 508(k)(4)(A) of the 
        Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)) is amended 
        by striking clause (ii) and inserting the following new clause:
                            ``(ii) for the 2009 and subsequent 
                        reinsurance years, 2.9 percentage points below 
                        the rates, in effect as of the date of the 
                        enactment of this Act of the Farm, Nutrition, 
                        and Bioenergy Act of 2007, for all crop 
                        insurance policies used to define loss 
                        ratio.''.
            (2) Renegotiation of standard reinsurance agreement.--
        Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 
        1508(k)) is amended by adding at the end the following new 
        paragraph:
            ``(8) Renegotiation of standard reinsurance agreement.--
                    ``(A) Periodic renegotiation.--Following the 
                reinsurance year ending June 30, 2012, the Corporation 
                may renegotiate the financial terms of the standard 
                reinsurance agreement during the next reinsurance year 
                and once during each period of five reinsurance years 
                thereafter.
                    ``(B) Effect of federal law changes.--If changes in 
                Federal law are enacted that require revisions in the 
                financial terms of the standard reinsurance agreement, 
                and such changes in the agreement are made on a 
                mandatory basis by the Corporation, such changes will 
                not be deemed to be a renegotiation of the agreement 
                for purposes of subparagraph (A).
                    ``(C) Consultation.--Approved insurance providers 
                and their representatives may confer with each other, 
                and collectively with the Corporation, during the 
                renegotiation process under subparagraph (A).''.
            (3) Treatment of 2008 reinsurance year.--Clause (ii) of 
        section 508(k)(4)(A) of the Federal Crop Insurance Act (7 
        U.S.C. 1508(k)(4)(A)), as in effect on the day before the date 
        of the enactment of this Act, shall continue to apply with 
        respect to the 2008 reinsurance year.
    (e) Change in Due Date for Administrative and Operating Expense 
Payment.--Section 516(b) of the Federal Crop Insurance Act (7 U.S.C. 
1516(b)) is amended by adding at the end the following new paragraph:
            ``(3) Due date for administrative and operating expense 
        payment.--Beginning with the 2012 reinsurance year, the 
        Corporation shall make payments pursuant to paragraph (1)(B) 
        during October 2012, and for subsequent reinsurance years, 
        every October thereafter.''.
    (f) Conforming Amendments.--
            (1) Premium reduction authority.--Subsection 508(e) of the 
        Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended--
                    (A) in paragraph (2) by striking ``paragraph (4)'' 
                and inserting ``paragraph (3)'';
                    (B) by striking paragraph (3); and
                    (C) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
            (2) Premium rate reduction pilot program.--Section 523 of 
        the Federal Crop Insurance Act (7 U.S.C. 1523) is amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d).
            (3) Submission of policies and materials.--Section 
        508(h)(1)(A) of the Federal Crop Insurance Act (7 U.S.C. 
        1508(h)(1)(A)) is amended by striking ``; and'' and inserting 
        ``; or''.

SEC. 11002. CATASTROPHIC RISK PROTECTION ADMINISTRATIVE FEE.

    Section 508(b)(5)(A) of the Federal Crop Insurance Act (7 U.S.C. 
1508(b)(5)(A)) is amended by striking ``$100 per crop per county'' and 
inserting in its place ``$200 per crop per county''.

SEC. 11003. FUNDING FOR REIMBURSEMENTS, CONTRACTING, RISK MANAGEMENT 
              EDUCATION, AND INFORMATION TECHNOLOGY.

    (a) Funding.--Section 516 of the Federal Crop Insurance Act (7 
U.S.C. 1516) is amended by adding at the end the following new 
subsections:
    ``(d) Funding for Reimbursements, Contracting, Risk Management 
Education, and Information Technology.--Of the amounts made available 
from the insurance fund established under subsection (c), the 
Corporation shall use not more than $30,000,000 in each fiscal year to 
carry out the following:
            ``(1) Reimbursement of research and development and 
        maintenance costs described under section 522(b).
            ``(2) Research and development contracting described under 
        section 522(c).
            ``(3) Partnerships for risk management and implementation 
        described under section 522(d).
            ``(4) Education and information programs described in 
        section 524(a)(2).
            ``(5) Partnerships for risk management education program 
        described in section 524(a)(3).
            ``(6) Information technology, as determined by the 
        Corporation.
    ``(e) Underserved States.--Of the amount made available under 
subsection (d), the Corporation shall use not more than $5,000,000 in 
each fiscal year to carry out contracting for research and development 
described in section 522(c)(1)(A).''.
    (b) Conforming Amendments.--
            (1) Former funding provision.--Section 522 of the Federal 
        Crop Insurance Act (7 U.S.C. 1522) is amended by striking 
        subsection (e) and inserting the following new subsection:
    ``(e) Prohibited Research and Development by Corporation.--
            ``(1) New policies.--Notwithstanding subsection (d), the 
        Corporation shall not conduct research and development for any 
        new policy for an agricultural commodity offered under this 
        title.
            ``(2) Existing policies.--Any policy developed by the 
        Corporation under this title before October 1, 2000, may 
        continue to be offered for sale to producers.''.
            (2) Cross reference.--Section 523(c)(1) of the Federal Crop 
        Insurance Act (7 U.S.C. 1523(c)(1)) is amended by striking 
        ``section 522(e)(4)'' and inserting ``section 522(e)''.
            (3) Education assistance funding.--Section 524(a) of the 
        Federal Crop Insurance Act (7 U.S.C. 1524(a)) is amended as 
        follows:
                    (A) in paragraph (1), by striking ``paragraph (4)'' 
                and inserting ``section 516(d)''; and
                    (B) by striking paragraph (4).

SEC. 11004. REIMBURSEMENT OF RESEARCH AND DEVELOPMENT COSTS RELATED TO 
              NEW CROP INSURANCE PRODUCTS.

    (a) Reimbursement Authorized.--Paragraph (1) of section 522(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended to read as 
follows:
            ``(1) Research and development reimbursement.--The 
        Corporation shall provide a payment to reimburse an applicant 
        for research and development costs directly related to a policy 
        that--
                    ``(A) is submitted to the Board pursuant to an FCIC 
                Reimbursement Grant under paragraph (7); or
                    ``(B) is submitted to the Board and approved by the 
                Board under section 508(h) for reinsurance and, if 
                applicable, offered for sale to producers.''.
    (b) FCIC Reimbursement Grants.--Section 522(b) of the Federal Crop 
Insurance Act (7 U.S.C. 1522(b)) is amended by adding at the end the 
following new paragraph:
            ``(7) FCIC reimbursement grants.--
                    ``(A) Grants authorized.--The Corporation shall 
                provide FCIC Reimbursement Grants to persons proposing 
                to prepare for submission to the Board crop insurance 
                policies and provisions under subparagraphs (A) and (B) 
                of section 508(h)(1), who apply and are approved for 
                such FCIC Reimbursement Grants under the terms and 
                conditions of this paragraph.
                    ``(B) Submission of application.--The Board shall 
                receive and consider applications for FCIC 
                Reimbursement Grants at least once annually. An 
                application to receive an FCIC Reimbursement Grant from 
                the Corporation shall consist of such materials as the 
                Board may require, including--
                            ``(i) a concept paper that describes the 
                        proposal in sufficient detail for the Board to 
                        determine whether it satisfies the requirements 
                        of subparagraph (C);
                            ``(ii) a summary of --
                                    ``(I) the need for the product, 
                                including an assessment of 
                                marketability and expected demand among 
                                affected producers;
                                    ``(II) support from producers, 
                                producer organizations, lenders, or 
                                other interested parties;
                                    ``(III) the impact the product 
                                would have on producers and on the crop 
                                insurance delivery system; and
                                    ``(IV) that no products are offered 
                                by the private sector providing the 
                                same benefits and risk management 
                                services as the proposal.
                            ``(iii) a summary of data sources available 
                        demonstrating that the product can reasonably 
                        be developed and properly rated; and
                            ``(iv) identification of the risks the 
                        proposed product will cover and that the risks 
                        are insurable under the Act.
                    ``(C) Approval conditions.--Approval of an 
                application for a FCIC Reimbursement Grant shall be by 
                majority vote of the Board. The Board shall approve the 
                application only if the Board finds that--
                            ``(i) the proposal contained in the 
                        application--
                                    ``(I) provides coverage to a crop 
                                or region not traditionally served by 
                                the Federal crop insurance program;
                                    ``(II) provides crop insurance 
                                coverage in a significantly improved 
                                form;
                                    ``(III) addresses a recognized flaw 
                                or problem in the program;
                                    ``(IV) introduces a significant new 
                                concept or innovation to the program; 
                                or
                                    ``(V) provides coverage, benefits, 
                                or risk management services not 
                                available from the private sector;
                            ``(ii) the applicant demonstrates the 
                        necessary qualifications to complete the 
                        project successfully in a timely manner with 
                        high quality;
                            ``(iii) the proposal is in the interests of 
                        producers and can reasonably be expected to be 
                        actuarially appropriate;
                            ``(iv) the Board determines that the 
                        Corporation has sufficient available funding to 
                        award the FCIC Reimbursement Grant; and
                            ``(v) the proposed budget and timetable are 
                        reasonable.
                    ``(D) Participation.--In reviewing proposals under 
                this paragraph, the Board may use the services of 
                persons it deems appropriate for expert review. All 
                proposals submitted under this paragraph will be 
                treated as confidential in accordance with section 
                508(h)(4).
                    ``(E) Entering into agreement.--Upon approval of 
                the application, the Board shall enter into an 
                agreement with the person for the development of a 
                formal submission meeting the requirements for a 
                complete submission established by the Board under 
                section 508(h).
                    ``(F) Feasibility studies.--In appropriate cases, 
                the Corporation may structure the FCIC Reimbursement 
                Grant to require, as an initial step within the overall 
                process, the submitter to complete a feasibility study 
                and report the results of such study to the Corporation 
                prior to proceeding with further development. The 
                Corporation may require such other reports as necessary 
                to monitor the development efforts.
                    ``(G) Rates.--Payment for work performed under this 
                paragraph shall be based on rates determined by the 
                Corporation for products submitted under section 508(h) 
                of the Act or for those contracted by the Corporation 
                under section 522(c) of the Act.
                    ``(H) Termination.--The Corporation or the 
                submitter may terminate any FCIC Reimbursement Grant to 
                reimburse expenses at any time for just cause. If the 
                Corporation or the submitter terminates the FCIC 
                Reimbursement Grant before final approval of the 
                product covered thereby, the submitter shall be 
                entitled to reimbursement of all costs incurred to that 
                point, or, in the case of a fixed rate agreement, to 
                payment of an appropriate percentage. If the submitter 
                terminates development without just cause, the 
                Corporation may deny reimbursement.
                    ``(I) Consideration of products.--The Board shall 
                consider any product submitted to it developed under 
                this paragraph under the rules it has established for 
                products submitted under section 508(h) of this Act.''.

SEC. 11005. RESEARCH AND DEVELOPMENT CONTRACTS FOR ORGANIC PRODUCTION 
              COVERAGE IMPROVEMENTS.

    Section 522(c) of the Federal Crop Insurance Act (7 U.S.C. 1522(c)) 
is amended--
            (1) by redesignating paragraph (10) as paragraph (11); and
            (2) by inserting after paragraph (9) the following new 
        paragraph:
            ``(10) Contracts for organic production coverage 
        improvements.--
                    ``(A) Contract required.--Not later than 180 days 
                after the date of the enactment of the Farm, Nutrition, 
                and Bioenergy Act of 2007, the Corporation shall enter 
                into one or more contracts for the development of 
                improvements in Federal crop insurance policies 
                covering crops produced in compliance with standards 
                issued by the Department of Agriculture under the 
                National Organic Program.
                    ``(B) Review of underwriting, risk, and loss 
                experience.--
                            ``(i) Review required.--A contract under 
                        subparagraph (A) shall include a review of the 
                        underwriting, risk, and loss experience of 
                        organic crops covered by the Corporation, as 
                        compared with the same crops produced in the 
                        same counties and during the same time periods 
                        using non-organic methods. The review should be 
                        designed to allow the Corporation to determine 
                        whether significant, consistent, or systemic 
                        variations in loss history exist between 
                        organic and non-organic production, and shall 
                        include the widest available range of data, 
                        including loss history under existing crop 
                        insurance policies, collected by the National 
                        Agricultural Statistics Service, and other 
                        sources of information.
                            ``(ii) Effect on premium surcharge.--Unless 
                        the review under this subparagraph documents 
                        the existence of such significant, consistent, 
                        and systemic variations in loss history between 
                        organic and non-organic crops, either 
                        collectively or on an individual basis, the 
                        Corporation shall eliminate or reduce the 
                        premium surcharge that the Corporation charges 
                        for coverage for organic crops.
                    ``(C) Additional price election.--A contract under 
                subparagraph (A) shall include the development of a 
                procedure, including any associated changes in policy 
                terms or materials required for implementation of the 
                procedure, to offer producers of organic crops an 
                additional price election that would reflect the actual 
                retail or wholesale prices, as appropriate, received by 
                organic producers for their crops, as established using 
                data collected and maintained by the Agricultural 
                Marketing Service or other sources. The development of 
                the procedure shall be completed in a timely manner to 
                allow the Corporation to begin offering the additional 
                price election for organic crops with sufficient data 
                for the 2009 crop year, and expand it thereafter as the 
                Agricultural Marketing Service expands its data 
                collection and availability for prices of organic 
                crops.
                    ``(D) Reporting requirements.--The Corporation 
                shall submit to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate an 
                annual report on the progress made in developing and 
                improving Federal crop insurance for organic crops, 
                including the numbers and varieties of organic crops 
                insured, the development of new insurance approaches, 
                and the progress of the initiatives mandated under this 
                paragraph. The report shall also include such 
                recommendations as the Corporation considers 
                appropriate regarding additional opportunities to 
                improve Federal crop insurance coverage for such 
                crops.''.

SEC. 11006. TARGETING RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS 
              AND RANCHERS AND CERTAIN OTHER FARMERS AND RANCHERS.

    Section 524(a) of the Federal Crop Insurance Act (7 U.S.C. 1524(a)) 
is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Targeting risk management education for certain 
        farmers and ranchers.--
                    ``(A) In general.--In carrying out the education 
                and information program established under paragraph (2) 
                and the partnerships for risk management education 
                program under paragraph (3), the Secretary shall 
                include a special emphasis on risk management 
                strategies and education and outreach specifically 
                targeted at farmers and ranchers described in 
                subparagraph (B).
                    ``(B) Covered farmers and ranchers.--Subparagraph 
                (A) applies with respect to the following:
                            ``(i) Beginning farmers and ranchers.
                            ``(ii) Immigrant farmers and ranchers who 
                        are attempting to become established producers 
                        in the United States.
                            ``(iii) Socially disadvantaged farmers and 
                        ranchers.
                            ``(iv) Farmers and ranchers who are 
                        preparing to retire and are using transition 
                        strategies to help new farmers and ranchers get 
                        started.
                            ``(v) Farmers and ranchers who are 
                        converting their current production and 
                        marketing systems to pursue new markets.''.

SEC. 11007. CROP INSURANCE INELIGIBILITY RELATED TO CROP PRODUCTION ON 
              NONCROPLAND.

    Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is 
amended by adding at the end the following new subsection:
    ``(e) Crop Insurance Ineligibility Related to Crop Production on 
Noncropland.--
            ``(1) Noncropland defined.--In this subsection, the term 
        `noncropland' means native grassland and pasture the Secretary 
        determines has never been used for crop production.
            ``(2) Ineligibility.--Noncropland acreage on which an 
        agricultural commodity for which a policy or plan of insurance 
        is available under this title is planted shall be ineligible 
        for crop insurance under this title for the first 4 years of 
        planting, as determined by the Secretary.
            ``(3) Yield determination based on county actual production 
        history.--If an agricultural commodity ineligible for insurance 
        as described in paragraph (2) is planted for 4 years, beginning 
        with the fifth year in which the commodity is planted, the 
        producer of the commodity may procure crop insurance for the 
        commodity under this title. The yield for such crop insurance 
        shall be determined only--
                    ``(A) by using the actual production history for 
                the farm; and
                    ``(B) for each year in which the farm does not have 
                an actual production history, by using the average 
                actual production history for the commodity in the 
                county in which the farm is located.
            ``(4) Effective date.--This subsection shall apply to crop 
        years following the 2007 crop year.''.

SEC. 11008. FUNDS FOR DATA MINING.

    Section 515(k) of the Federal Crop Insurance Act (7 U.S.C. 1515(k)) 
is amended by striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) Available funds.--To carry out this section, the 
        Corporation may use, from amounts made available from the 
        insurance fund established under section 516(c)--
                    ``(A) not more than $11,000,000 during fiscal year 
                2008; and
                    ``(B) not more than $7,000,000 during fiscal year 
                2009 and each subsequent year thereafter.''.

SEC. 11009. NONINSURED CROP ASSISTANCE PROGRAM.

    Section 196(k)(1) of the Agricultural Market Transition Act (7 
U.S.C. 7333(k)(1)) is amended by striking subparagraphs (A) and (B) and 
inserting the following new subparagraphs:
                    ``(A) $200 per crop per county; or
                    ``(B) $600 per producer per county, but not to 
                exceed a total of $1,800 per producer.''.

SEC. 11010. CHANGE IN DUE DATE FOR CORPORATION PAYMENTS FOR 
              UNDERWRITING GAINS.

    Effective beginning with the 2011 reinsurance year, the Federal 
Crop Insurance Corporation shall make payments for underwriting gains 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)--
            (1) for the 2011 reinsurance year on October 1, 2012; and
            (2) for each reinsurance year thereafter on the October 1 
        of the next calendar year.

SEC. 11011. SESAME INSURANCE PILOT PROGRAM.

    (a) Pilot Program Required.--The Secretary of Agriculture shall 
establish and carry out a pilot program under which a producer of non-
dehiscent sesame under contract may elect to obtain multi-peril crop 
insurance, as determined by the Secretary.
    (b) Terms and Conditions.--The multi-peril crop insurance offered 
under the sesame insurance pilot program shall--
            (1) be offered through reinsurance arrangements with 
        private insurance companies;
            (2) be actuarially sound; and
            (3) require the payment of premiums and administrative fees 
        by a producer obtaining the insurance.
    (c) Location.--The sesame insurance pilot program shall be carried 
out only in the State of Texas.
    (d) Relation to Prohibition on Research and Development by 
Corporation.--Section 522(e)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1522(e)(4)) shall apply with respect to the sesame insurance 
pilot program.
    (e) Duration.--The Secretary shall commence the sesame insurance 
pilot program as soon as practicable after the date of the enactment of 
this Act and continue the program through the 2012 crop year.

SEC. 11012. NATIONAL DROUGHT COUNCIL AND DROUGHT PREPAREDNESS PLANS.

    (a) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the National 
        Drought Council established by this section.
            (2) Critical service provider.--The term ``critical service 
        provider'' means an entity that provides power, water 
        (including water provided by an irrigation organization or 
        facility), sewer services, or wastewater treatment.
            (3) Drought.--The term ``drought'' means a natural disaster 
        that is caused by a deficiency in precipitation--
                    (A) that may lead to a deficiency in surface and 
                subsurface water supplies (including rivers, streams, 
                wetlands, ground water, soil moisture, reservoir 
                supplies, lake levels, and snow pack); and
                    (B) that causes or may cause--
                            (i) substantial economic or social impacts; 
                        or
                            (ii) physical damage or injury to 
                        individuals, property, or the environment.
            (4) Fund.--The term ``Fund'' means the Drought Assistance 
        Fund established by this section.
            (5) 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).
            (6) Interstate watershed.--The term ``interstate 
        watershed'' means a watershed that transcends State or Tribal 
        boundaries, or both.
            (7) Member.--The term ``member'', with respect to the 
        National Drought Council, means a member of the Council 
        specified or appointed under this section or, in the absence of 
        the member, the member's designee.
            (8) Mitigation.--The term ``mitigation'' means a short- or 
        long-term action, program, or policy that is implemented in 
        advance of or during a drought to minimize any risks and 
        impacts of drought.
            (9) Neighboring country.--The term ``neighboring country'' 
        means Canada and Mexico.
            (10) Office.--The term ``Office'' means the National Office 
        of Drought Preparedness established under this section.
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (12) State.--The term ``State'' means the several States, 
        the District of Columbia, American Samoa, Guam, the 
        Commonwealth of the Northern Mariana Islands, the Commonwealth 
        of Puerto Rico, and the United States Virgin Islands.
            (13) Trigger.--The term ``trigger'' means the thresholds or 
        criteria that must be satisfied before mitigation or emergency 
        assistance may be provided to an area--
                    (A) in which drought is emerging; or
                    (B) that is experiencing a drought.
            (14) Under secretary.--The term ``Under Secretary'' means 
        the Under Secretary of Agriculture for Natural Resources and 
        Environment.
            (15) Watershed.--The term ``watershed'' means a region or 
        area with common hydrology, an area drained by a waterway that 
        drains into a lake or reservoir, the total area above a given 
        point on a stream that contributes water to the flow at that 
        point, or the topographic dividing line from which surface 
        streams flow in two different directions. In no case shall a 
        watershed be larger than a river basin.
            (16) Watershed group.--The term ``watershed group'' means a 
        group of individuals, formally recognized by the appropriate 
        State or States, who represent the broad scope of relevant 
        interests within a watershed and who work together in a 
        collaborative manner to jointly plan the management of the 
        natural resources contained within the watershed.
    (b) Effect of Section.--This section does not affect--
            (1) the authority of a State to allocate quantities of 
        water under the jurisdiction of the State; or
            (2) any State water rights established as of the date of 
        enactment of this Act.
    (c) National Drought Council.--
            (1) Establishment.--There is established in the Office of 
        the Secretary of Agriculture a council to be known as the 
        ``National Drought Council''.
            (2) Membership.--
                    (A) Composition.--The Council shall be composed 
                of--
                            (i) the Secretary (or the designee of the 
                        Secretary);
                            (ii) the Secretary of Commerce (or the 
                        designee of the Secretary of Commerce);
                            (iii) the Secretary of the Army (or the 
                        designee of the Secretary of the Army);
                            (iv) the Secretary of the Interior (or the 
                        designee of the Secretary of the Interior);
                            (v) the Director of the Federal Emergency 
                        Management Agency (or the designee of the 
                        Director);
                            (vi) the Administrator of the Environmental 
                        Protection Agency (or the designee of the 
                        Administrator);
                            (vii) 4 members appointed by the Secretary, 
                        in coordination with the National Governors 
                        Association, each of whom shall be the Governor 
                        of a State (or the designee of the Governor) 
                        and who collectively shall represent the 
                        geographic diversity of the Nation;
                            (viii) 1 member appointed by the Secretary, 
                        in coordination with the National Association 
                        of Counties;
                            (ix) 1 member appointed by the Secretary, 
                        in coordination with the United States 
                        Conference of Mayors;
                            (x) 1 member appointed by the Secretary of 
                        the Interior, in coordination with Indian 
                        tribes, to represent the interests of tribal 
                        governments; and
                            (xi) 1 member appointed by the Secretary, 
                        in coordination with the National Association 
                        of Conservation Districts, to represent local 
                        soil and water conservation districts.
                    (B) Date of appointment.--The appointment of each 
                member of the Council shall be made not later than 120 
                days after the date of enactment of this Act.
            (3) Term; vacancies.--
                    (A) Term.--A non-Federal member of the Council 
                appointed under paragraph (2) shall be appointed for a 
                term of two years.
                    (B) Vacancies.--A vacancy on the Council--
                            (i) shall not affect the powers of the 
                        Council; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
                    (C) Terms of members filling vacancies.--Any member 
                appointed to fill a vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term.
            (4) Meetings.--
                    (A) In general.--The Council shall meet at the call 
                of the co-chairs.
                    (B) Frequency.--The Council shall meet at least 
                semiannually.
            (5) Quorum.--A majority of the members of the Council shall 
        constitute a quorum, but a lesser number may hold hearings or 
        conduct other business.
            (6) Council leadership.--
                    (A) In general.--There shall be a Federal co-chair 
                and non-Federal co-chair of the Council.
                    (B) Appointment.--
                            (i) Federal co-chair.--The Secretary shall 
                        be Federal co-chair.
                            (ii) Non-federal co-chair.--The non-Federal 
                        members of the Council shall select, on a 
                        biannual basis, a non-Federal co-chair of the 
                        Council from among the members appointed under 
                        paragraph (2).
            (7) Director of the office.--
                    (A) In general.--The Director of the Office shall 
                serve as Secretary of the Council.
                    (B) Duties.--The Director of the Office shall serve 
                the interests of all members of the Council.
    (d) Duties of the Council.--
            (1) In general.--The Council shall--
                    (A) not later than one year after the date of the 
                first meeting of the Council, develop a comprehensive 
                National Drought Policy Action Plan that--
                            (i)(I) delineates and integrates 
                        responsibilities for activities relating to 
                        drought (including drought preparedness, 
                        mitigation, research, risk management, 
                        training, and emergency relief) among Federal 
                        agencies; and
                            (II) ensures that those activities are 
                        coordinated with the activities of the States, 
                        local governments, Indian tribes, and 
                        neighboring countries;
                            (ii) is consistent with--
                                    (I) this Act and other applicable 
                                Federal laws; and
                                    (II) the laws and policies of the 
                                States for water management;
                            (iii) is integrated with drought management 
                        programs of the States, Indian tribes, local 
                        governments, watershed groups, and private 
                        entities; and
                            (iv) avoids duplicating Federal, State, 
                        tribal, local, watershed, and private drought 
                        preparedness and monitoring programs in 
                        existence on the date of enactment of this Act;
                    (B) evaluate Federal drought-related programs in 
                existence on the date of enactment of this Act and make 
                recommendations to Congress and the President on means 
                of eliminating--
                            (i) discrepancies between the goals of the 
                        programs and actual service delivery;
                            (ii) duplication among programs; and
                            (iii) any other circumstances that 
                        interfere with the effective operation of the 
                        programs;
                    (C) make recommendations to the President, 
                Congress, and appropriate Federal Agencies on--
                            (i) the establishment of common interagency 
                        triggers for authorizing Federal drought 
                        mitigation programs; and
                            (ii) improving the consistency and fairness 
                        of assistance among Federal drought relief 
                        programs;
                    (D) encourage and facilitate the development of 
                drought preparedness plans under subtitle C, including 
                establishing the guidelines under this section;
                    (E) based on a review of drought preparedness 
                plans, develop and make available to the public drought 
                planning models to reduce water resource conflicts 
                relating to water conservation and droughts;
                    (F) develop and coordinate public awareness 
                activities to provide the public with access to 
                understandable, and informative materials on drought, 
                including--
                            (i) explanations of the causes of drought, 
                        the impacts of drought, and the damages from 
                        drought;
                            (ii) descriptions of the value and benefits 
                        of land stewardship to reduce the impacts of 
                        drought and to protect the environment;
                            (iii) clear instructions for appropriate 
                        responses to drought, including water 
                        conservation, water reuse, and detection and 
                        elimination of water leaks;
                            (iv) information on State and local laws 
                        applicable to drought; and
                            (v) opportunities for assistance to 
                        resource-dependent businesses and industries in 
                        times of drought; and
                    (G) establish operating procedures for the Council.
            (2) Consultation.--In carrying out this subsection, the 
        Council shall consult with groups affected by drought 
        emergencies.
            (3) Reports to congress.--
                    (A) Annual report.--
                            (i) In general.--Not later than one year 
                        after the date of the first meeting of the 
                        Council, and annually thereafter, the Council 
                        shall submit to Congress a report on the 
                        activities carried out under this section.
                            (ii) Inclusions.--
                                    (I) In general.--The annual report 
                                shall include a summary of drought 
                                preparedness plans.
                                    (II) Initial report.--The initial 
                                report submitted under subparagraph (A) 
                                shall include any recommendations of 
                                the Council.
                    (B) Final report.--Not later than seven years after 
                the date of enactment of this Act, the Council shall 
                submit to Congress a report that recommends--
                            (i) amendments to this section; and
                            (ii) whether the Council should continue.
    (e) Powers of the Council.--
            (1) Hearings.--The Council may hold hearings, meet and act 
        at any time and place, take any testimony and receive any 
        evidence that the Council considers advisable to carry out this 
        section.
            (2) Information from federal agencies.--
                    (A) In general.--The Council may obtain directly 
                from any Federal agency any information that the 
                Council considers necessary to carry out this section.
                    (B) Provision of information.--
                            (i) In general.--Except as provided in 
                        clause (ii), on request of the Secretary or the 
                        non-Federal co-chair of the Council, the head 
                        of a Federal agency may provide information to 
                        the Council.
                            (ii) Limitation.--The head of a Federal 
                        agency shall not provide any information to the 
                        Council that the Federal agency head determines 
                        the disclosure of which may cause harm to 
                        national security interests.
            (3) Postal services.--The Council may use the United States 
        mail in the same manner and under the same conditions as other 
        agencies of the Federal Government.
            (4) Gifts.--The Council may accept, use, and dispose of 
        gifts or donations of services or property.
    (f) Council Personnel Matters.--
            (1) Compensation of members.--
                    (A) Non-federal employees.--A member of the Council 
                who is not an officer or employee of the Federal 
                Government shall serve without compensation.
                    (B) Federal employees.--A member of the Council who 
                is an officer or employee of the United States shall 
                serve without compensation in addition to the 
                compensation received for services of the member as an 
                officer or employee of the Federal Government.
            (2) Travel expenses.--A member of the Council shall be 
        allowed travel expenses at rates authorized for an employee of 
        an agency under subchapter I of chapter 57 of title 5, United 
        States Code, while away from the home or regular place of 
        business of the member in the performance of the duties of the 
        Council.
    (g) Termination of Council.--The Council shall terminate at the end 
of the eighth fiscal year beginning on or after the date of the 
enactment of this Act.
    (h) National Office of Drought Preparedness.--
            (1) Establishment.--The Secretary shall establish an office 
        to be known as the ``National Office of Drought Preparedness'' 
        to provide assistance to the Council.
            (2) Director of the office.--
                    (A) Appointment.--
                            (i) In general.--The Under Secretary shall 
                        appoint a Director of the Office under sections 
                        3371 through 3375 of title 5, United States 
                        Code.
                            (ii) Qualifications.--The Director of the 
                        Office shall be a person who has experience 
                        in--
                                    (I) public administration; and
                                    (II) drought mitigation or drought 
                                management.
                    (B) Powers.--The Director of the Office may hire 
                such other additional personnel or contract for 
                services with other entities as necessary to carry out 
                the duties of the Office.
            (3) Detail of government employees.--
                    (A) In general.--Except for the requirements of 
                section 204, an employee of the Federal Government may 
                be detailed to the Office without reimbursement, unless 
                the Secretary, on the recommendation of the Director of 
                the Office, determines that reimbursement is 
                appropriate.
                    (B) Civil service status.--The detail of an 
                employee shall be without interruption or loss of civil 
                service status or privilege.
    (i) Drought Assistance Fund.--
            (1) Establishment.--There is established within the 
        Department of Agriculture a fund to be known as the ``Drought 
        Assistance Fund''.
            (2) Purpose.--The Fund shall be used to pay the costs of--
                    (A) providing technical and financial assistance 
                (including grants and cooperative assistance) to 
                States, Indian tribes, local governments, watershed 
                groups, and critical service providers for the 
                development and implementation of drought preparedness 
                plans;
                    (B) providing to States, Indian tribes, local 
                governments, watershed groups, and critical service 
                providers the Federal share, as determined by the 
                Secretary, in consultation with the other members of 
                the Council, of the cost of mitigating the overall risk 
                and impacts of droughts;
                    (C) assisting States, Indian tribes, local 
                governments, watershed groups, and critical service 
                providers in the development of mitigation measures to 
                address environmental, economic, and human health and 
                safety issues relating to drought; and
                    (D) expanding the technology transfer of drought 
                and water conservation strategies and innovative water 
                supply techniques.
            (3) Guidelines.--
                    (A) In general.--The Secretary, in consultation 
                with the non-Federal co-chair of the Council and with 
                the concurrence of the Council, shall develop and 
                promulgate guidelines to implement this subsection.
                    (B) Requirements.--The guidelines shall address the 
                following:
                            (i) Ensure the distribution of amounts from 
                        the Fund within a reasonable period of time.
                            (ii) Take into consideration regional 
                        differences.
                            (iii) Take into consideration all impacts 
                        of drought in a balanced manner.
                            (iv) Prohibit the use of amounts from the 
                        Fund for Federal salaries that are not directly 
                        related to the provision of drought assistance.
                            (v) Require that distribution of amounts 
                        from the Fund granted to States, local 
                        governments, watershed groups, and critical 
                        service providers to meet the requirements of 
                        this subsection be coordinated with and managed 
                        by the State in which such local government or 
                        critical service provider is located, 
                        consistent with the drought preparedness 
                        priorities and relevant water management plans 
                        within the State.
                            (vi) Require that distribution of amounts 
                        from the Fund granted to Indian tribes to meet 
                        the requirements of this subsection be used to 
                        implement plans that are, to the extent 
                        practicable, in coordination with each State in 
                        which lands of the Indian tribe are located and 
                        consistent with existing drought preparedness 
                        and water management plans of such States.
                            (vii) Require that a State, Indian tribe, 
                        local government, watershed group, or critical 
                        service provider that receives Federal funds 
                        under paragraph (2) or (3) of subsection (b) 
                        cover not less than 25 percent of the overall 
                        cost incurred in carrying out the project for 
                        which the Federal funds are provided. This cost 
                        sharing requirement may be satisfied using non-
                        Federal grants or cash donations made by non-
                        Federal third parties.
            (4) Special requirement for interstate watersheds.--
                    (A) Development of drought preparedness plans.--In 
                order to receive funds under this subsection to develop 
                drought preparedness plans for interstate watersheds, 
                the guidelines shall also require the relevant States, 
                Indian tribes, or both, in which the watershed is 
                located, to coordinate in the development of the 
                drought preparedness plan. The development of such 
                plans shall--
                            (i) be consistent with the relevant States' 
                        and Tribal water laws, policies, and 
                        agreements;
                            (ii) be consistent and coordinated with any 
                        existing interstate stream compacts;
                            (iii) include the participation of any 
                        relevant watershed groups located in the 
                        relevant States, Indian tribes, or both; and
                            (iv) recognize that implementation of the 
                        interstate drought preparedness plan will 
                        involve further coordination among the relevant 
                        States, Indian tribes, or both, except that 
                        each State and Indian tribe has sole 
                        jurisdiction over implementation of that 
                        portion of the watershed that exists within 
                        their boundaries.
                    (B) Implementation of drought preparedness plans.--
                In order to receive funds under this subsection to 
                implement drought preparedness plans for interstate 
                watersheds, the guidelines shall also require, to the 
                extent practicable, the relevant States, Indian tribes, 
                or both, in which the watershed is located, to 
                coordinate in the implementation of the drought 
                preparedness plan, recognizing the sovereignty of the 
                States and Indian tribes. Implementation of interstate 
                drought preparedness plans shall--
                            (i) be contingent upon the existence of a 
                        drought preparedness plan, but not require the 
                        distribution of funds to all States and Indian 
                        tribes in which the watershed is located;
                            (ii) consider the level of impact within 
                        the watershed on each of the relevant States, 
                        Indian tribes, or both; and
                            (iii) not impede on State water rights 
                        established as of the date of enactment of this 
                        Act.
    (j) Drought Preparedness Plans.--
            (1) In general.--The Secretary shall--
                    (A) with the concurrence of the Council, jointly 
                develop guidelines for administering a national program 
                to provide technical and financial assistance to 
                States, Indian tribes, local governments, watershed 
                groups, and critical service providers for the 
                development, maintenance, and implementation of drought 
                preparedness plans; and
                    (B) promulgate the guidelines developed under 
                subparagraph (A).
            (2) Requirements.--To build on the experience and avoid 
        duplication of efforts of Federal, State, local, tribal, and 
        regional drought plans in existence on the date of enactment of 
        this Act, the guidelines may recognize and incorporate those 
        plans.
            (3) Federal plans.--
                    (A) In general.--The Secretary and other 
                appropriate Federal agency heads shall develop and 
                implement Federal drought preparedness plans for 
                agencies under the jurisdiction of the appropriate 
                Federal agency head.
                    (B) Requirements.--The Federal plans--
                            (i) shall be integrated with each other;
                            (ii) may be included as components of other 
                        Federal planning requirements;
                            (iii) shall be integrated with drought 
                        preparedness plans of State, tribal, and local 
                        governments that are affected by Federal 
                        projects and programs; and
                            (iv) shall be completed not later than two 
                        years after the date of the enactment of this 
                        Act.
            (4) State and tribal plans.--States and Indian tribes may 
        develop and implement State and tribal drought preparedness 
        plans that--
                    (A) address monitoring of resource conditions that 
                are related to drought;
                    (B) identify areas that are at a high risk for 
                drought;
                    (C) describes mitigation strategies to address and 
                reduce the vulnerability of an area to drought; and
                    (D) are integrated with State, tribal, and local 
                water plans in existence on the date of enactment of 
                this Act.
            (5) Regional and local plans.--Local governments, watershed 
        groups, and regional water providers may develop and implement 
        drought preparedness plans that--
                    (A) address monitoring of resource conditions that 
                are related to drought;
                    (B) identify areas that are at a high risk for 
                drought;
                    (C) describe mitigation strategies to address and 
                reduce the vulnerability of an area to drought; and
                    (D) are integrated with corresponding State plans.
            (6) Plan elements.--A drought preparedness plan--
                    (A) shall be consistent with Federal and State 
                laws, contracts, and policies;
                    (B) shall allow each State to continue to manage 
                water and wildlife in the State;
                    (C) shall address the health, safety, and economic 
                interests of those persons directly affected by 
                drought;
                    (D) shall address the economic impact on resource-
                dependent businesses and industries, including regional 
                tourism;
                    (E) may include--
                            (i) provisions for water management 
                        strategies to be used during various drought or 
                        water shortage thresholds, consistent with 
                        State water law;
                            (ii) provisions to address key issues 
                        relating to drought (including public health, 
                        safety, economic factors, and environmental 
                        issues such as water quality, water quantity, 
                        protection of threatened and endangered 
                        species, and fire management);
                            (iii) provisions that allow for public 
                        participation in the development, adoption, and 
                        implementation of drought plans;
                            (iv) provisions for periodic drought 
                        exercises, revisions, and updates;
                            (v) a hydrologic characterization study to 
                        determine how water is being used during times 
                        of normal water supply availability to 
                        anticipate the types of drought mitigation 
                        actions that would most effectively improve 
                        water management during a drought;
                            (vi) drought triggers;
                            (vii) specific implementation actions for 
                        droughts;
                            (viii) a water shortage allocation plan, 
                        consistent with State water law; and
                            (ix) comprehensive insurance and financial 
                        strategies to manage the risks and financial 
                        impacts of droughts; and
                    (F) shall take into consideration--
                            (i) the financial impact of the plan on the 
                        ability of the utilities to ensure rate 
                        stability and revenue stream; and
                            (ii) economic impacts from water shortages.
    (k) Authorization of Appropriations.--
            (1) Council.--There is authorized to be appropriated to 
        carry out the activities of the Council $2,000,000 for fiscal 
        year 2008 and for each of the subsequent seven fiscal years.
            (2) Fund.--There are authorized to be appropriated to the 
        Fund such sums as are necessary to carry out subsection (i).

SEC. 11013. PAYMENT OF PORTION OF PREMIUM FOR AREA REVENUE PLANS.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``paragraph (4)'' and inserting ``paragraphs 
        (4), (6), and (7)''; and
            (2) by adding at the end the following:
            ``(6) Premium subsidy for area revenue plans.--Subject to 
        paragraph (4), in the case of a policy or plan of insurance 
        that covers losses due to a reduction in revenue in an area, 
        the amount of the premium paid by the Corporation shall be as 
        follows:
                    ``(A) In the case of additional area coverage equal 
                to or greater than 70 percent, but less than 75 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(B) In the case of additional area coverage equal 
                to or greater than 75 percent, but less than 85 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(C) In the case of additional area coverage equal 
                to or greater than 85 percent, but less than 90 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 49 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(D) In the case of additional area coverage equal 
                to or greater than 90 percent of the recorded county 
                yield indemnified at not greater than 100 percent of 
                the expected market price, the amount shall be equal to 
                the sum of--
                            ``(i) 44 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
            ``(7) Premium subsidy for area yield plans.--Subject to 
        paragraph (4), in the case of a policy or plan of insurance 
        that covers losses due to a loss of yield or prevented planting 
        in an area, the amount of the premium paid by the Corporation 
        shall be as follows:
                    ``(A) In the case of additional area coverage equal 
                to or greater than 70 percent, but less than 80 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 59 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(B) In the case of additional area coverage equal 
                to or greater than 80 percent, but less than 90 
                percent, of the recorded county yield indemnified at 
                not greater than 100 percent of the expected market 
                price, the amount shall be equal to the sum of--
                            ``(i) 55 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.
                    ``(C) In the case of additional area coverage equal 
                to or greater than 90 percent, of the recorded county 
                yield indemnified at not greater than 100 percent of 
                the expected market price, the amount shall be equal to 
                the sum of--
                            ``(i) 51 percent of the amount of the 
                        premium established under subsection 
                        (d)(2)(B)(i) for the coverage level selected; 
                        and
                            ``(ii) the amount determined under 
                        subsection (d)(2)(B)(ii) for the coverage level 
                        selected to cover operating and administrative 
                        expenses.''.

SEC. 11014. SHARE OF RISK.

    (a) In General.--Section 508(k)(3) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(k)(3)) is amended--
            (1) by striking ``require the'' and inserting ``require--
            ``(A) the'';
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding at the end the following:
                    ``(B)(i) the cumulative underwriting gain or loss, 
                and the associated premium and losses with such amount, 
                calculated under any reinsurance agreement (except 
                livestock) ceded to the Corporation by each approved 
                insurance provider to be not less than 12.5 percent; 
                and
                    ``(ii) the Corporation to pay a ceding commission 
                to reinsured companies of 2 percent of the premium used 
                to define the loss ratio for the approved insurance 
                provider's book of business that is described in clause 
                (i).''.
    (b) Conforming Amendments.--Section 516(a)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1516(a)(2)) is amended by adding at the end the 
following new subparagraph:
                    ``(E) Costs associated with the ceding commissions 
                described in section 508(k)(3)(B)(ii).''.
    (c) Effective Date.--This section shall take effect on the first 
June 30th after the date of the enactment of this Act.

SEC. 11015. LIVESTOCK ASSISTANCE.

    Notwithstanding any other provision of law, the purchase of a Non-
insured Assistance Program policy shall not be a requirement to receive 
any Federal livestock disaster assistance.

SEC. 11016. DETERMINATION OF CERTAIN SWEET POTATO PRODUCTION.

    In the case of sweet potatoes, Risk Management Agency Pilot Program 
data shall not be considered for purposes of determining production for 
the 2005-2006 Farm Service Agency Crop Disaster Program.

                   Subtitle B--Livestock and Poultry

SEC. 11101. SENSE OF CONGRESS REGARDING PSEUDORABIES ERADICATION 
              PROGRAM.

    It is the sense of Congress that--
            (1) the Secretary should recognize the threat feral swine 
        pose to the domestic swine population;
            (2) keeping the United States commercial swine herd free of 
        pseudorabies is essential to maintaining and growing pork 
        export markets;
            (3) the establishment of a swine surveillance system will 
        assist the swine industry in the monitoring, surveillance, and 
        eradication of pseudorabies; and
            (4) pseudorabies eradication is a high priority that the 
        Secretary should carry out under the authorities of the Animal 
        Health Protection Act.

SEC. 11102. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.

    The Packers and Stockyards Act, 1921 (7 U.S.C. 181 et seq.) is 
amended--
            (1) by redesignating section 416 as section 417; and
            (2) by inserting after section 415 the following new 
        section:

``SEC. 416. ARBITRATION OF LIVESTOCK AND POULTRY CONTRACTS.

    ``(a) Issuance of Regulations.--The Secretary of Agriculture shall 
promulgate regulations to establish standards related to the inclusion 
of arbitration provisions in livestock and poultry production 
contracts.
    ``(b) Content.--Such regulations shall--
            ``(1) establish permissible agreements with respect to 
        venue of arbitration, allocation of arbitration costs, number 
        and appointment of arbitrators, and any other element of an 
        arbitration agreement that the Secretary determines to be 
        necessary;
            ``(2) permit a producer to seek relief in a small claims 
        court in lieu of arbitration for disputes or claims within the 
        jurisdiction of a small claims court, despite the existence of 
        an arbitration agreement; and
            ``(3) require any person appointed or to be appointed as an 
        arbitrator to disclose any circumstance likely to raise doubt 
        as to the arbitrator's impartiality.''.

SEC. 11103. STATE-INSPECTED MEAT AND POULTRY.

    (a) Review of State Meat and Poultry Inspection Programs.--
            (1) Report.--Not later than 30 days after the date of the 
        enactment of this Act, the Secretary of Agriculture shall 
        submit to Congress a report containing the results of a review 
        by the Secretary of each State meat and poultry inspection 
        program. Such report shall include--
                    (A) a determination of the effectiveness of each 
                State meat and poultry inspection program; and
                    (B) an identification of changes that are necessary 
                to enable future transition to a State program of 
                enforcing Federal inspection requirements as described 
                in the amendments made by subsections (b) and (c).
            (2) Authorization of appropriations.--
                    (A) In general.--There are authorized to be 
                appropriated such sums as are necessary to carry out 
                this section.
                    (B) Available funds.--Notwithstanding any other 
                provision of law, only funds specifically appropriated 
                under subparagraph (A) may be used to carry out this 
                subsection.
    (b) State Meat Inspection Programs.--
            (1) In general.--Title III of the Federal Meat Inspection 
        Act (21 U.S.C. 661 et seq.) is amended to read as follows:

              ``TITLE III--STATE MEAT INSPECTION PROGRAMS

``SEC. 301. POLICY AND FINDINGS.

    ``(a) Policy.--It is the policy of Congress to protect the public 
from meat and meat food products that are adulterated or misbranded and 
to assist in efforts by State and other government agencies to 
accomplish that policy.
    ``(b) Findings.--Congress finds that--
            ``(1) the goal of a safe and wholesome supply of meat and 
        meat food products throughout the United States would be better 
        served if a consistent set of requirements, established by the 
        Federal Government, were applied to all meat and meat food 
        products, whether produced under State inspection or Federal 
        inspection;
            ``(2) under such a system, State and Federal meat 
        inspection programs would function together to create a 
        seamless inspection system to ensure food safety and inspire 
        consumer confidence in the food supply in interstate commerce; 
        and
            ``(3) such a system would ensure the viability of State 
        meat inspection programs, which should help to foster the 
        viability of small establishments.

``SEC. 302. APPROVAL OF STATE MEAT INSPECTION PROGRAMS.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
the Secretary may approve a State meat inspection program and allow the 
shipment in commerce of carcasses, parts of carcasses, meat, and meat 
food products inspected under the State meat inspection program in 
accordance with this title.
    ``(b) Eligibility.--
            ``(1) In general.--To receive or maintain approval from the 
        Secretary for a State meat inspection program in accordance 
        with subsection (a), a State shall--
                    ``(A) implement a State meat inspection program 
                that enforces the mandatory antemortem and postmortem 
                inspection, reinspection, sanitation, and related 
                Federal requirements of titles I, II, and IV (including 
                the regulations, directives, notices, policy memoranda, 
                and other regulatory requirements issued under those 
                titles); and
                    ``(B) enter into a cooperative agreement with the 
                Secretary in accordance with subsection (c).
            ``(2) Additional requirements.--
                    ``(A) In general.--In addition to the requirements 
                described in paragraph (1), a State meat inspection 
                program reviewed in accordance with section 11103(a) of 
                the Farm, Nutrition, and Bioenergy Act of 2007 shall 
                implement, not later than 180 days after the date on 
                which the report is submitted under subsection (b) of 
                such section, all recommendations from the review, in a 
                manner approved by the Secretary.
                    ``(B) Review of new state meat inspection 
                programs.--
                            ``(i) Review requirement.--Not later than 
                        one year after the date on which the Secretary 
                        approves a new State meat inspection program, 
                        the Secretary shall conduct a review of the new 
                        State meat inspection program, which shall 
                        include--
                                    ``(I) a determination of the 
                                effectiveness of the new State meat 
                                inspection program; and
                                    ``(II) identification of changes 
                                necessary to ensure enforcement of 
                                Federal inspection requirements.
                            ``(ii) Implementation requirements.--In 
                        addition to the requirements described in 
                        paragraph (1), to continue to be an approved 
                        State meat inspection program, a new State meat 
                        inspection program shall implement all 
                        recommendations from the review conducted in 
                        accordance with this subparagraph, in a manner 
                        approved by the Secretary.
                            ``(iii) Definition of new state meat 
                        inspection program.--In this subparagraph, the 
                        term `new State meat inspection program' means 
                        a State meat inspection program that is not 
                        approved in accordance with subsection (a) 
                        between the effective date of the Farm, 
                        Nutrition, and Bioenergy Act of 2007 and the 
                        date that is one year after the effective date 
                        of such Act.
    ``(c) Cooperative Agreement.--Notwithstanding chapter 63 of title 
31, United States Code, the Secretary may enter into a cooperative 
agreement with a State that--
            ``(1) establishes the terms governing the relationship 
        between the Secretary and the State meat inspection program;
            ``(2) provides that the State will adopt (including 
        adoption by reference) provisions identical to titles I, II, 
        and IV (including the regulations, directives, notices, policy 
        memoranda, and other regulatory requirements issued under those 
        titles);
            ``(3) provides that State-inspected and passed meat and 
        meat food products shall be marked with a mark of State 
        inspection, which shall be deemed to be an official mark, in 
        accordance with requirements issued by the Secretary;
            ``(4) provides that the State will comply with all labeling 
        requirements issued by the Secretary governing meat and meat 
        food products inspected under the State meat inspection 
        program;
            ``(5) provides that the Secretary shall have authority--
                    ``(A) to detain and seize livestock, carcasses, 
                parts of carcasses, meat, and meat food products under 
                the State meat inspection program;
                    ``(B) to obtain access to facilities, records, 
                livestock, carcasses, parts of carcasses, meat, and 
                meat food products of any person, firm, or corporation 
                that slaughters, processes, handles, stores, 
                transports, or sells meat or meat food products 
                inspected under the State meat inspection program to 
                determine compliance with this Act (including the 
                regulations issued under this Act); and
                    ``(C) to direct the State to conduct any activity 
                authorized to be conducted by the Secretary under this 
                Act (including the regulations issued under this Act); 
                and
            ``(6) includes such other terms as the Secretary determines 
        to be necessary to ensure that the actions of the State and the 
        State meat inspection program are consistent with this Act 
        (including the regulations, directives, notices, policy 
        memoranda, and other regulatory requirements issued under this 
        Act).
    ``(d) Restriction on Establishment Size.--After the date that is 90 
days after the effective date of the Farm, Nutrition, and Bioenergy Act 
of 2007, establishments with more than 50 employees may not be accepted 
into a State meat inspection program. Any establishment that is subject 
to state inspection on such date, may remain subject to State 
inspection.
    ``(e) Reimbursement of State Costs.--The Secretary may reimburse a 
State for not more than 50 percent of the State's costs of meeting the 
Federal requirements for the State meat inspection program.
    ``(f) Sampling.--A duly authorized representative of the Secretary 
shall be afforded access to State inspected establishments to take 
reasonable samples of the inventory of such establishments upon payment 
of the fair market value therefor.
    ``(g) Noncompliance.--If the Secretary determines that a State meat 
inspection program does not comply with this title or the cooperative 
agreement under subsection (c), the Secretary shall take such action as 
the Secretary determines to be necessary to ensure that the carcasses, 
parts of carcasses, meat, and meat food products in the State are 
inspected in a manner that effectuates this Act (including the 
regulations, directives, notices, policy memoranda, and other 
regulatory requirements issued under this Act).

``SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPECTION PROGRAMS.

    ``(a) Notification.--If the Secretary has reason to believe that a 
State is not in compliance with this Act (including the regulations, 
directives, notices, policy memoranda, and other regulatory 
requirements issued under this Act) or the cooperative agreement under 
section 302(c) and is considering the revocation or temporary 
suspension of the approval of the State meat inspection program, the 
Secretary shall promptly notify and consult with the Governor of the 
State.
    ``(b) Suspension and Revocation.--
            ``(1) In general.--The Secretary may revoke or temporarily 
        suspend the approval of a State meat inspection program and 
        take over a State meat inspection program if the Secretary 
        determines that the State meat inspection program is not in 
        compliance with this Act (including the regulations, 
        directives, notices, policy memoranda, and other regulatory 
        requirements issued under this Act) or the cooperative 
        agreement under section 302(c).
            ``(2) Procedures for reinstatement.--A State meat 
        inspection program that has been the subject of a revocation 
        may be reinstated as an approved State meat inspection program 
        under this Act only in accordance with the procedures under 
        section 302(b)(2)(B).
    ``(c) Publication.--If the Secretary revokes or temporarily 
suspends the approval of a State meat inspection program in accordance 
with subsection (b), the Secretary shall publish notice of the 
revocation or temporary suspension under that subsection in the Federal 
Register.
    ``(d) Inspection of Establishments.--Not later than 30 days after 
the date of publication of a determination under subsection (c), an 
establishment subject to a State meat inspection program with respect 
to which the Secretary makes a determination under subsection (b) shall 
be inspected by the Secretary.

``SEC. 304. EXPEDITED AUTHORITY TO TAKE OVER INSPECTION OF STATE-
              INSPECTED ESTABLISHMENTS.

    ``Notwithstanding any other provision of this title, if the 
Secretary determines that an establishment operating under a State meat 
inspection program is not operating in accordance with this Act 
(including the regulations, directives, notices, policy memoranda, and 
other regulatory requirements issued under this Act) or the cooperative 
agreement under section 302(c), and the State, after notification by 
the Secretary to the Governor, has not taken appropriate action within 
a reasonable time as determined by the Secretary, the Secretary may 
immediately determine that the establishment is an establishment that 
shall be inspected by the Secretary, until such time as the Secretary 
determines that the State will meet the requirements of this Act 
(including the regulations, directives, notices, policy memoranda, and 
other regulatory requirements) and the cooperative agreement with 
respect to the establishment.

``SEC. 305. ANNUAL REVIEW.

    ``(a) In General.--The Secretary shall develop and implement a 
process to annually review each State meat inspection program approved 
under this title and to certify the State meat inspection programs that 
comply with the cooperative agreement entered into with the State under 
section 302(c).
    ``(b) Comment From Interested Parties.--In developing the review 
process described in subsection (a), the Secretary shall solicit 
comment from interested parties.

``SEC. 306. FEDERAL INSPECTION OPTION.

    ``(a) In General.--An establishment that operates in a State with 
an approved State meat inspection program may apply for inspection 
under the State meat inspection program or for Federal inspection.
    ``(b) Limitation.--An establishment shall not make an application 
under subsection (a) more than once every four years.''.
            (2) Restaurants and retail stores.--Title IV of the Federal 
        Meat Inspection Act is amended--
                    (A) by redesignating section 411 (21 U.S.C. 681) as 
                section 414; and
                    (B) by inserting after section 410 (21 U.S.C. 680) 
                the following:

``SEC. 411. RESTAURANTS AND RETAIL STORES.

    ``(a) Limitation on Applicability of Inspection Requirements.--The 
provisions of this Act requiring inspection of the slaughter of animals 
and the preparation of carcasses, parts of carcasses, meat, and meat 
food products shall not apply to operations of types traditionally and 
usually conducted at retail stores and restaurants, as determined by 
the Secretary, if the operations are conducted at a retail store, 
restaurant, or similar retail establishment for sale of such prepared 
articles in normal retail quantities or for service of the articles to 
consumers at such an establishment.
    ``(b) Central Kitchen Facilities.--
            ``(1) In general.--For the purposes of this section, 
        operations conducted at a central kitchen facility of a 
        restaurant shall be considered to be conducted at a restaurant 
        if the central kitchen of the restaurant prepares meat or meat 
        food products that are ready to eat when they leave the 
        facility and are served in meals or as entrees only to 
        customers at restaurants owned or operated by the same person, 
        firm, or corporation that owns or operates the facility.
            ``(2) Exception.--A facility described in paragraph (1) 
        shall be subject to section 202 and may be subject to the 
        inspection requirements of title I for as long as the Secretary 
        determines to be necessary, if the Secretary determines that 
        the sanitary conditions or practices of the facility or the 
        processing procedures or methods at the facility are such that 
        any of the meat or meat food products of the facility are 
        rendered adulterated.

``SEC. 412. ACCEPTANCE OF INTERSTATE SHIPMENTS OF MEAT AND MEAT FOOD 
              PRODUCTS.

    ``Notwithstanding any provision of State law, a State or local 
government shall not prohibit or restrict the movement or sale of meat 
or meat food products that have been inspected and passed in accordance 
with this Act for interstate commerce.

``SEC. 413. ADVISORY COMMITTEES FOR FEDERAL AND STATE PROGRAMS.

    ``The Secretary may appoint advisory committees consisting of such 
representatives of appropriate State agencies as the Secretary and the 
State agencies may designate to consult with the Secretary concerning 
State and Federal programs with respect to meat inspection and other 
matters within the scope of this Act.''.
    (c) State Poultry Inspection Programs.--
            (1) In general.--The Poultry Products Inspection Act (21 
        U.S.C. 451 et seq.) is amended by striking section 5 and 
        inserting the following:

``SEC. 5. STATE POULTRY INSPECTION PROGRAMS.

    ``(a) Policy.--It is the policy of Congress to protect the public 
from poultry products that are adulterated or misbranded and to assist 
in efforts by State and other government agencies to accomplish that 
policy.
    ``(b) Findings.--Congress finds that--
            ``(1) the goal of a safe and wholesome supply of poultry 
        products throughout the United States would be better served if 
        a consistent set of requirements, established by the Federal 
        Government, were applied to all poultry products, whether 
        produced under State inspection or Federal inspection;
            ``(2) under such a system, State and Federal poultry 
        inspection programs would function together to create a 
        seamless inspection system to ensure food safety and inspire 
        consumer confidence in the food supply in interstate commerce; 
        and
            ``(3) such a system would ensure the viability of State 
        poultry inspection programs, which should help to foster the 
        viability of small official establishments.
    ``(c) Approval of State Poultry Inspection Programs.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, the Secretary may approve a State poultry inspection 
        program and allow the shipment in commerce of poultry products 
        inspected under the State poultry inspection program in 
        accordance with this section and section 5A.
            ``(2) Eligibility.--
                    ``(A) In general.--To receive or maintain approval 
                from the Secretary for a State poultry inspection 
                program in accordance with paragraph (1), a State 
                shall--
                            ``(i) implement a State poultry inspection 
                        program that enforces the mandatory antemortem 
                        and postmortem inspection, reinspection, 
                        sanitation, and related Federal requirements of 
                        sections 1 through 4 and 6 through 33 
                        (including the regulations, directives, 
                        notices, policy memoranda, and other regulatory 
                        requirements issued under those sections); and
                            ``(ii) enter into a cooperative agreement 
                        with the Secretary in accordance with paragraph 
                        (3).
                    ``(B) Additional requirements.--
                            ``(i) In general.--In addition to the 
                        requirements described in subparagraph (A), a 
                        State poultry inspection program reviewed in 
                        accordance with section 11103(a) of the Farm, 
                        Nutrition, and Bioenergy Act of 2007 shall 
                        implement, not later 180 days after the date on 
                        which the report is submitted under subsection 
                        (b) of such section, all recommendations from 
                        the review, in a manner approved by the 
                        Secretary.
                            ``(ii) Review of new state poultry 
                        inspection programs.--
                                    ``(I) Review requirement.--Not 
                                later than one year after the date on 
                                which the Secretary approves a new 
                                State poultry inspection program, the 
                                Secretary shall conduct a review of the 
                                new State poultry inspection program, 
                                which shall include--
                                            ``(aa) a determination of 
                                        the effectiveness of the new 
                                        State poultry inspection 
                                        program; and
                                            ``(bb) identification of 
                                        changes necessary to ensure 
                                        enforcement of Federal 
                                        inspection requirements.
                                    ``(II) Implementation 
                                requirements.--In addition to the 
                                requirements described in subparagraph 
                                (A), to continue to be an approved 
                                State poultry inspection program, a new 
                                State poultry inspection program shall 
                                implement all recommendations from the 
                                review conducted in accordance with 
                                this clause, in a manner approved by 
                                the Secretary.
                                    ``(III) Definition of new state 
                                poultry inspection program.--In this 
                                clause, the term `new State poultry 
                                inspection program' means a State 
                                poultry inspection program that is not 
                                approved in accordance with paragraph 
                                (1) between the effective date of the 
                                Farm, Nutrition, and Bioenergy Act of 
                                2007 and the date that is one year 
                                after the effective date of such Act.
            ``(3) Cooperative agreement.--Notwithstanding chapter 63 of 
        title 31, United States Code, the Secretary may enter into a 
        cooperative agreement with a State that--
                    ``(A) establishes the terms governing the 
                relationship between the Secretary and the State 
                poultry inspection program;
                    ``(B) provides that the State will adopt (including 
                adoption by reference) provisions identical to sections 
                1 through 4 and 6 through 33 (including the 
                regulations, directives, notices, policy memoranda, and 
                other regulatory requirements issued under those 
                sections);
                    ``(C) provides that State-inspected and passed 
                poultry products may be marked with the mark of State 
                inspection, which shall be deemed to be an official 
                mark, in accordance with requirements issued by the 
                Secretary;
                    ``(D) provides that the State will comply with all 
                labeling requirements issued by the Secretary governing 
                poultry products inspected under the State poultry 
                inspection program;
                    ``(E) provides that the Secretary shall have 
                authority--
                            ``(i) to detain and seize poultry and 
                        poultry products under the State poultry 
                        inspection program;
                            ``(ii) to obtain access to facilities, 
                        records, and poultry products of any person 
                        that slaughters, processes, handles, stores, 
                        transports, or sells poultry products inspected 
                        under the State poultry inspection program to 
                        determine compliance with this Act (including 
                        the regulations issued under this Act); and
                            ``(iii) to direct the State to conduct any 
                        activity authorized to be conducted by the 
                        Secretary under this Act (including the 
                        regulations issued under this Act); and
                    ``(F) includes such other terms as the Secretary 
                determines to be necessary to ensure that the actions 
                of the State and the State poultry inspection program 
                are consistent with this Act (including the 
                regulations, directives, notices, policy memoranda, and 
                other regulatory requirements issued under this Act).
            ``(4) Restriction on establishment size.--After the date 
        that is 90 days after the effective date of the Farm, 
        Nutrition, and Bioenergy Act of 2007, establishments with more 
        than 50 employees may not be accepted into a State meat 
        inspection program. Any establishment that is subject to state 
        inspection on such date may remain subject to state inspection.
            ``(5) Reimbursement of state costs.--The Secretary may 
        reimburse a State for not more than 60 percent of the State's 
        costs of meeting the Federal requirements for the State poultry 
        inspection program.
            ``(6) Sampling.--A duly authorized representative of the 
        Secretary shall be afforded access to State inspected 
        establishments to take reasonable samples of their inventory 
        upon payment of the fair market value therefor.
            ``(7) Noncompliance.--If the Secretary determines that a 
        State poultry inspection program does not comply with this 
        section, section 5A, or the cooperative agreement under 
        paragraph (3), the Secretary shall take such action as the 
        Secretary determines to be necessary to ensure that the poultry 
        products in the State are inspected in a manner that 
        effectuates this Act (including the regulations, directives, 
        notices, policy memoranda, and other regulatory requirements 
        issued under this Act).
    ``(d) Annual Review.--
            ``(1) In general.--The Secretary shall develop and 
        implement a process to annually review each State poultry 
        inspection program approved under this section and to certify 
        the State poultry inspection programs that comply with the 
        cooperative agreement entered into with the State under 
        subsection (c)(3).
            ``(2) Comment from interested parties.--In developing the 
        review process described in paragraph (1), the Secretary shall 
        solicit comment from interested parties.
    ``(e) Federal Inspection Option.--
            ``(1) In general.--An official establishment that operates 
        in a State with an approved State poultry inspection program 
        may apply for inspection under the State poultry inspection 
        program or for Federal inspection.
            ``(2) Limitation.--An official establishment shall not make 
        an application under paragraph (1) more than once every 4 
        years.

``SEC. 5A. AUTHORITY TO TAKE OVER STATE POULTRY INSPECTION ACTIVITIES.

    ``(a) Authority To Take Over State Poultry Inspection Programs.--
            ``(1) Notification.--If the Secretary has reason to believe 
        that a State is not in compliance with this Act (including the 
        regulations, directives, notices, policy memoranda, and other 
        regulatory requirements issued under this Act) or the 
        cooperative agreement under section 5(c)(3) and is considering 
        the revocation or temporary suspension of the approval of the 
        State poultry inspection program, the Secretary shall promptly 
        notify and consult with the Governor of the State.
            ``(2) Suspension and revocation.--
                    ``(A) In general.--The Secretary may revoke or 
                temporarily suspend the approval of a State poultry 
                inspection program and take over a State poultry 
                inspection program if the Secretary determines that the 
                State poultry inspection program is not in compliance 
                with this Act (including the regulations, directives, 
                notices, policy memoranda, and other regulatory 
                requirements issued under this Act) or the cooperative 
                agreement.
                    ``(B) Procedures for reinstatement.--A State 
                poultry inspection program that has been the subject of 
                a revocation may be reinstated as an approved State 
                poultry inspection program under this Act only in 
                accordance with the procedures under section 
                5(c)(2)(B)(ii).
            ``(3) Publication.--If the Secretary revokes or temporarily 
        suspends the approval of a State poultry inspection program in 
        accordance with paragraph (2), the Secretary shall publish 
        notice of the revocation or temporary suspension under that 
        paragraph in the Federal Register.
            ``(4) Inspection of establishments.--Not later than 30 days 
        after the date of publication of a determination under 
        paragraph (3), an official establishment subject to a State 
        poultry inspection program with respect to which the Secretary 
        makes a determination under paragraph (2) shall be inspected by 
        the Secretary.
    ``(b) Expedited Authority To Take Over Inspection of State-
Inspected Official Establishments.--Notwithstanding any other provision 
of this title, if the Secretary determines that an official 
establishment operating under a State poultry inspection program is not 
operating in accordance with this Act (including the regulations, 
directives, notices, policy memoranda, and other regulatory 
requirements issued under this Act) or the cooperative agreement under 
section 5(c)(3), and the State, after notification by the Secretary to 
the Governor, has not taken appropriate action within a reasonable time 
as determined by the Secretary, the Secretary may immediately determine 
that the official establishment is an establishment that shall be 
inspected by the Secretary, until such time as the Secretary determines 
that the State will meet the requirements of this Act (including the 
regulations, directives, notices, policy memoranda, and other 
regulatory requirements) and the cooperative agreement with respect to 
the official establishment.''.
            (2) Restaurants and retail stores, acceptance of interstate 
        shipments of poultry products, and advisory committees for 
        federal and state programs.--The Poultry Products Inspection 
        Act (21 U.S.C. 451 et seq.) is amended by inserting after 
        section 30 the following:

``SEC. 31. RESTAURANTS AND RETAIL STORES.

    ``(a) Limitation on Applicability of Inspection Requirements.--The 
provisions of this Act requiring inspection of the slaughter of poultry 
and the processing of poultry products shall not apply to operations of 
types traditionally and usually conducted at retail stores and 
restaurants, if the operations are conducted at a retail store, 
restaurant, or similar retail establishment for sale of such prepared 
articles in normal retail quantities or for service of the articles to 
consumers at such an establishment.
    ``(b) Central Kitchen Facilities.--
            ``(1) In general.--For the purposes of this section, 
        operations conducted at a central kitchen facility of a 
        restaurant shall be considered to be conducted at a restaurant 
        if the central kitchen of the restaurant prepares poultry 
        products that are ready to eat when they leave the facility and 
        are served in meals or as entrees only to customers at 
        restaurants owned or operated by the same person that owns or 
        operates the facility.
            ``(2) Exception.--A facility described in paragraph (1) 
        shall be subject to section 11(b) and may be subject to the 
        inspection requirements of this Act for as long as the 
        Secretary determines to be necessary, if the Secretary 
        determines that the sanitary conditions or practices of the 
        facility or the processing procedures or methods at the 
        facility are such that any of the poultry products of the 
        facility are rendered adulterated.

``SEC. 32. ACCEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY PRODUCTS.

    ``Notwithstanding any provision of State law, a State or local 
government shall not prohibit or restrict the movement or sale of 
poultry products that have been inspected and passed in accordance with 
this Act for interstate commerce.

``SEC. 33. ADVISORY COMMITTEES FOR FEDERAL AND STATE PROGRAMS.

    ``The Secretary may appoint advisory committees consisting of such 
representatives of appropriate State agencies as the Secretary and the 
State agencies may designate to consult with the Secretary concerning 
State and Federal programs with respect to poultry product inspection 
and other matters within the scope of this Act.''.
    (d) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Agriculture shall promulgate 
such regulations as are necessary to implement the amendments made by 
subsections (b) and (c).
    (e) Effective Date.--The amendments made by subsections (b) and (c) 
of this Act shall take effect on the date that is 180 days after the 
date of the enactment of this Act.

SEC. 11104. COUNTRY OF ORIGIN LABELING.

    Subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 1638 
et seq.) is amended--
            (1) in section 281(2)(A)--
                    (A) in clause (v) by striking ``and'';
                    (B) in clause (vi), by striking ``peanuts.'' and 
                inserting ``peanuts; and''; and
                    (C) by adding at the end the following new clause:
                            ``(vii) meat produced from goats.'';
            (2) in section 282--
                    (A) in subsection (a), by striking paragraphs (2) 
                and (3) and inserting the following:
            ``(2) Designation of country of origin for beef, lamb, 
        pork, and goat.--
                    ``(A) United states country of origin.--A retailer 
                of a covered commodity that is beef, lamb, pork, or 
                goat may designate the covered commodity as exclusively 
                having a United States country of origin only if the 
                covered commodity is derived from an animal that was--
                            ``(i) exclusively born, raised, and 
                        slaughtered in the United States;
                            ``(ii) born and raised in Alaska or Hawaii 
                        and transported for a period of not more than 
                        60 days through Canada to the United States and 
                        slaughtered in the United States; or
                            ``(iii) present in the United States on or 
                        before January 1, 2008.
                    ``(B) Multiple countries of origin.--A retailer of 
                a covered commodity that is beef, lamb, pork, or goat 
                that is derived from an animal that is--
                            ``(i) not exclusively born, raised, and 
                        slaughtered in the United States,
                            ``(ii) born, raised, or slaughtered in the 
                        United States, and
                            ``(iii) not imported into the United States 
                        for immediate slaughter,
                may designate the country of origin of such covered 
                commodity as all of the countries in which the animal 
                may have been born, raised, or slaughtered.
                    ``(C) Imported for immediate slaughter.--A retailer 
                of a covered commodity that is beef, lamb, pork, or 
                goat that is derived from an animal that is imported 
                into the United States for immediate slaughter must 
                designate the origin of such covered commodity as--
                            ``(i) the country from which the animal was 
                        imported; and
                            ``(ii) the United States.
                    ``(D) Foreign country of origin.--A retailer of a 
                covered commodity that is beef, lamb, pork, or goat 
                that is derived from an animal that is not born, 
                raised, or slaughtered in the United States must 
                designate a country other than the United States as the 
                country of origin of such commodity.
                    ``(E) Ground beef, pork, and lamb.--The notice of 
                country of origin for ground beef, ground pork, or 
                ground lamb shall include--
                            ``(i) a list of all countries of origin of 
                        such ground beef, ground pork, or ground lamb; 
                        or
                            ``(ii) a list of all reasonably possible 
                        countries of origin of such ground beef, ground 
                        pork, or ground lamb.
            ``(3) Designation of country of origin for fish.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is farm-raised fish or wild fish may 
                designate the covered commodity as having a United 
                States country of origin only if the covered 
                commodity--
                            ``(i) in the case of farm-raised fish, is 
                        hatched, raised, harvested, and processed in 
                        the United States; and
                            ``(ii) in the case of wild fish, is--
                                    ``(I) harvested in the United 
                                States, a territory of the United 
                                States, or a State, or by a vessel that 
                                is documented under chapter 121 of 
                                title 46, United States Code, or 
                                registered in the United States; and
                                    ``(II) processed in the United 
                                States, a territory of the United 
                                States, or a State, including the 
                                waters thereof.
                    ``(B) Designation of wild fish and farm-raised 
                fish.--The notice of country of origin for wild fish 
                and farm-raised fish shall distinguish between wild 
                fish and farm-raised fish.
            ``(4) Designation of country of origin for perishable 
        agricultural commodities and peanuts.--
                    ``(A) In general.--A retailer of a covered 
                commodity that is a perishable agricultural commodity 
                or peanut may designate the covered commodity as having 
                a United States country of origin only if the covered 
                commodity is exclusively produced in the United States.
                    ``(B) State, region, locality of the united 
                states.--With respect to a covered commodity that is a 
                perishable agricultural commodity produced exclusively 
                in the United States, designation by a retailer of the 
                State, region, or locality of the United States where 
                such commodity was produced shall be sufficient to 
                identify the United States as the country of origin.''; 
                and
                    (B) by striking subsection (d) and inserting the 
                following:
    ``(d) Audit Verification System.--
            ``(1) In general.--The Secretary may conduct an audit of 
        any person that prepares, stores, handles, or distributes a 
        covered commodity for retail sale to verify compliance with 
        this subtitle (including the regulations promulgated under 
        section 284(b)).
            ``(2) Record requirements.--
                    ``(A) In general.--A person subject to an audit 
                under paragraph (1) shall provide the Secretary with 
                verification of the country of origin of covered 
                commodities. Records maintained in the course of the 
                normal conduct of the business of such person, 
                including animal health papers, import or customs 
                documents, or producer affidavits, may serve as such 
                verification.
                    ``(B) Prohibition on requirement of additional 
                records.--The Secretary may not require a person that 
                prepares, stores, handles, or distributes a covered 
                commodity to maintain a record of the country of origin 
                of a covered commodity other than those maintained in 
                the course of the normal conduct of the business of 
                such person.'';
            (3) in section 283--
                    (A) by striking subsections (a) and (c);
                    (B) by redesignating subsection (b) subsection (a);
                    (C) in subsection (a) (as so redesignated), by 
                striking ``retailer'' and inserting ``retailer or 
                person engaged in the business of supplying a covered 
                commodity to a retailer''; and
                    (D) by adding at the end the following new 
                subsection:
    ``(b) Fines.--If, on completion of the 30-day period described in 
subsection (a)(2), the Secretary determines that the retailer or person 
engaged in the business of supplying a covered commodity to a retailer 
has--
            ``(1) not made a good faith effort to comply with section 
        282, and
            ``(2) continues to willfully violate section 282 with 
        respect to the violation about which the retailer or person 
        received notification under subsection (a)(1),
after providing notice and an opportunity for a hearing before the 
Secretary with respect to the violation, the Secretary may fine the 
retailer or person in an amount of not more than $1,000 for each 
violation.''.

SEC. 11105. SENSE OF CONGRESS REGARDING THE VOLUNTARY CONTROL PROGRAM 
              FOR LOW PATHOGENIC AVIAN INFLUENZA.

    It is the sense of Congress that--
            (1) the voluntary control program for low pathogenic avian 
        influenza is a critical component of the animal health 
        protection system of the United States, as well as a safeguard 
        against highly pathogenic avian influenza; and
            (2) the Secretary of Agriculture has appropriately provided 
        for the payment of compensation to owners of poultry and 
        cooperating State agencies of 100 percent of eligible costs, 
        and the Secretary should continue to provide such payments at 
        100 percent of such costs.

SEC. 11106. SENSE OF CONGRESS REGARDING THE CATTLE FEVER TICK 
              ERADICATION PROGRAM.

    It is the sense of Congress that--
            (1) the cattle fever tick and the southern cattle tick are 
        vectors of the causal agent of babesiosis, a severe and often 
        fatal disease of cattle; and
            (2) implementing a national strategic plan for the cattle 
        fever tick eradication program is a high priority that the 
        secretary should carry out in order to--
                    (A) prevent the entry of cattle fever ticks into 
                the United States;
                    (B) enhance and maintain an effective surveillance 
                program to rapidly detect any cattle fever tick 
                incursions; and
                    (C) research, identify, and procure the tools and 
                knowledge necessary to prevent and eradicate cattle 
                fever ticks in the United States.

   Subtitle C--Socially Disadvantaged Producers and Limited Resource 
                               Producers

SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR SOCIALLY 
              DISADVANTAGED FARMERS AND RANCHERS AND LIMITED RESOURCE 
              FARMERS AND RANCHERS.

    Section 2501 of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2) and inserting the 
                following new paragraph:
            ``(2) Requirements.--The outreach and technical assistance 
        program under paragraph (1) shall be used--
                    ``(A) to enhance coordination of the outreach, 
                technical assistance, and education efforts authorized 
                under agriculture programs; and
                    ``(B) to assist the Secretary in--
                            ``(i) reaching socially disadvantaged or 
                        limited resource farmers and ranchers and 
                        prospective socially disadvantaged or limited 
                        resource farmers and ranchers in an appropriate 
                        manner; and
                            ``(ii) improving the participation of those 
                        farmers and ranchers in Department programs, as 
                        determined under section 2501A.'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``entity to provide information'' and inserting 
                        ``entity that has demonstrated an ability to 
                        carry out the requirements described in 
                        paragraph (2) to provide outreach''; and
                            (ii) by adding at the end the following new 
                        subparagraphs:
                    ``(D) Additional contracting authority.--Any agency 
                of the Department of Agriculture may make grants and 
                enter into contracts and cooperative agreements with a 
                community-based organization that meets the definition 
                of an eligible entity under subsection (e) in order to 
                utilize the community-based organization to provide 
                outreach and technical assistance.
                    ``(E) Report.--The Secretary shall submit to the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate, and make 
                publicly available, an annual report that includes a 
                list of the following:
                            ``(i) The recipients of funds made 
                        available under the program.
                            ``(ii) The activities undertaken and 
                        services provided.
                            ``(iii) The number of producers served and 
                        outcomes of such service.
                            ``(iv) The problems and barriers identified 
                        by entities in trying to increase participation 
                        by socially disadvantaged farmers and 
                        ranchers.''; and
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (A), and 
                        inserting the following new subparagraph:
                    ``(A) Availability of funds.--Of the funds of the 
                Commodity Credit Corporation, the Secretary shall make 
                available $15,000,000 for each of the fiscal years 2008 
                through 2012 to carry out this subsection.'';
                            (ii) in subparagraph (B), by striking 
                        ``authorized to be appropriated under 
                        subparagraph (A)'' and inserting ``made 
                        available under subparagraph (A)''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(C) Limitation on use of funds for administrative 
                expenses.--Not more than 5 percent of the amounts made 
                available under subparagraph (A) for a fiscal year may 
                be used for expenses related to administering the 
                program under this section.''; and
            (2) in subsection (e)(5)(A)(ii)--
                    (A) by inserting ``and on behalf of'' before 
                ``socially''; and
                    (B) by striking ``2-year'' and inserting ``3-
                year''.

SEC. 11202. IMPROVED PROGRAM DELIVERY BY DEPARTMENT OF AGRICULTURE ON 
              INDIAN RESERVATIONS.

    Section 2501(g)(1) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2279(g)(1)) is amended--
            (1) in the first sentence, by striking ``where there is a 
        demonstrated demand for service'' after ``offices''; and
            (2) by striking the second sentence.

SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED 
              FARMERS AND RANCHERS.

    Section 2501A of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 2279-1) is amended by striking subsection (c) and 
inserting the following new subsections:
    ``(c) Compilation of Program Participation Data.--
            ``(1) Annual requirement.--For each county and State in the 
        United States, the Secretary of Agriculture (referred to in 
        this section as the `Secretary') shall annually compile program 
        application and participation rate data regarding socially 
        disadvantaged farmers and ranchers by computing for each 
        program of the Department of Agriculture that serves 
        agricultural producers and landowners--
                    ``(A) raw numbers of applicants and participants by 
                race, ethnicity, and gender, subject to appropriate 
                privacy protections, as determined by the Secretary; 
                and
                    ``(B) the application and participation rate, by 
                race, ethnicity, and gender, as a percentage of the 
                total participation rate of all agricultural producers 
                and landowners.
            ``(2) Authority to collect data.--The heads of the agencies 
        of the Department of Agriculture shall collect and transmit to 
        the Secretary any data, including data on race, gender, and 
        ethnicity, that the Secretary determines to be necessary to 
        carry out paragraph (1).
            ``(3) Report.--Using the technologies and systems of the 
        National Agricultural Statistics Service, the Secretary shall 
        compile and present the data compiled under paragraph (1) for 
        each program described in that paragraph in a manner that 
        includes the raw numbers and participation rates for--
                    ``(A) the entire United States;
                    ``(B) each State; and
                    ``(C) each county in each State.
            ``(4) Public availability of report.--The Secretary shall 
        maintain and make readily available to the public, via website 
        and otherwise in electronic and paper form, the report 
        described in paragraph (3).
    ``(d) Limitations on Use of Data.--
            ``(1) Privacy protections.--In carrying out this section, 
        the Secretary shall not disclose the names or individual data 
        of any program participant.
            ``(2) Authorized uses.--The data under this section shall 
        be used exclusively for the purposes described in subsection 
        (a).
            ``(3) Limitation.--Except as otherwise provided, the data 
        under this section shall not be used for the evaluation of 
        individual applications for assistance.''.

SEC. 11204. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    Section 7405 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3319f) is amended by striking subsection (h) and inserting 
the following new subsection:
    ``(h) Availability of Funds.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available $15,000,000 for each of 
the fiscal years 2008 through 2012 to carry out this section.''.

SEC. 11205. PROVISION OF RECEIPT FOR SERVICE OR DENIAL OF SERVICE.

    In any case in which a producer or landowner, or prospective 
producer or landowner, requests from the Department of Agriculture any 
benefit or service offered by the Department to agricultural producers 
or landowners, the Secretary of Agriculture shall provide for the 
issuance, on the date on which the producer or landowner, or 
prospective producer or landowner, makes the request, a receipt 
containing--
            (1) the date, place, and subject of the request; and
            (2) the action taken, not taken, or recommendations made in 
        response to the request.

SEC. 11206. TRACKING OF SOCIALLY DISADVANTAGED FARMERS AND RANCHERS AND 
              LIMITED RESOURCE FARMERS AND RANCHERS IN CENSUS OF 
              AGRICULTURE AND CERTAIN STUDIES.

    The Secretary of Agriculture shall ensure, to the maximum extent 
practicable, that the Census of Agriculture and studies carried out by 
the Economic Research Service accurately document the number, location, 
and economic contributions of socially disadvantaged farmers and 
ranchers and limited resource farmers and ranchers in agricultural 
production.

SEC. 11207. FARMWORKER COORDINATOR.

    (a) Establishment.--The Secretary of Agriculture shall establish 
the position of Farmworker Coordinator (in this section referred to as 
the ``Coordinator''), which shall be located in the Office of Outreach 
of the Department of Agriculture.
    (b) Duties.--The Secretary may delegate to the Coordinator 
responsibility for any or all of the following:
            (1) Assisting in administering the program established by 
        section 2281 of the Food, Agriculture, Conservation, and Trade 
        Act of 1990 (42 U.S.C. 5177a).
            (2) Serving as a liaison to community-based non-profit 
        organizations that represent, and have demonstrated experience 
        serving, low-income migrant and seasonal farmworkers.
            (3) Coordinating with the Department of Agriculture and 
        State and local governments to assure that farmworker needs are 
        assessed and met during declared disasters and other 
        emergencies.
            (4) Consulting with the Office of Small Farm Coordination, 
        Office of Outreach, Outreach Coordinators, and other entities 
        to better integrate farmworker perspectives, concerns, and 
        interests into the ongoing programs of the Department.
            (5) Consulting with Hispanic-serving institutions on 
        research, program improvements, or agricultural education 
        opportunities that assist low-income and migrant seasonal 
        farmworkers.
            (6) Assuring that farmworkers have access to services and 
        support to enter agriculture as producers.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as necessary to carry out this 
section for fiscal years 2008 through 2012.

SEC. 11208. OFFICE OF OUTREACH RELOCATION.

    (a) Relocation Proposal.--Not more than 18 months after the date of 
enactment of the Act, the Secretary shall develop a proposal to 
relocate the Office of Outreach of the Department of Agriculture.
    (b) Administration.--The Office of Outreach shall be responsible 
for the administration of--
            (1) the outreach and technical assistance program 
        established under section 2501 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2279);
            (2) the beginning farmer and rancher development program 
        established under section 7405 of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 3319f); and
            (3) the coordination of the outreach activities among the 
        various agencies within the Department.
    (c) Report.--After the relocation described in this section is 
completed, the Secretary shall submit to Congress a report that 
includes information describing the new location of the program.

SEC. 11209. MINORITY FARMER ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of Agriculture shall establish an 
advisory committee, to be known as the ``Advisory Committee on Minority 
Farmers'' (in this section referred to as the ``Committee''), which 
shall be overseen by the Office of Outreach of the Department of 
Agriculture.
    (b) Duties.--The Committee shall--
            (1) review all civil rights cases to ensure that they are 
        processed in a timely manner;
            (2) ensure that the processing of civil rights cases 
        complies with applicable laws;
            (3) report quarterly to the Secretary of Agriculture on 
        civil rights enforcement and outreach;
            (4) monitor and annually report to Congress on compliance 
        with all civil rights and related laws by all agencies and 
        under all programs of the Department;
            (5) recommend to the Secretary corrective actions to 
        prevent civil rights violations;
            (6) review the operations of the outreach and technical 
        assistance program established under section 2501 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
        2279); and
            (7) review ongoing efforts toward outreach in the agencies 
        and programs of the Department.
    (c) Membership of Committee.--The Committee shall be composed of 
the following:
            (1) Three members appointed by the Secretary.
            (2) Two members appointed by the chairman of the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate, in 
        consultation with the ranking member of the Committee.
            (3) Two members appointed by the chairman of the Committee 
        on Agriculture of the House of Representatives, in consultation 
        with the ranking member of the Committee.
            (4) A civil rights professional.
            (5) A socially disadvantaged farmer or rancher.
            (6) Such other persons or professionals as determined by 
        the Secretary to be appropriate.

SEC. 11210. COORDINATOR FOR CHRONICALLY UNDERSERVED RURAL AREAS.

    (a) Establishment.--The Secretary of Agriculture shall establish a 
Coordinator for Chronically Underserved Rural Areas (in this section 
referred to as the ``Coordinator''), to be located in the Office of 
Outreach of the Department of Agriculture.
    (b) Mission.--The mission of the Coordinator shall be to direct 
Department of Agriculture resources to high need, high poverty rural 
areas.
    (c) Duties.--The Coordinator shall consult with other offices in 
directing technical assistance, strategic regional planning, at the 
State and local level, for developing rural economic development that 
leverages the resources of State and local governments and non-profit 
and community development organizations.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as necessary to carry out this 
section for fiscal years 2008 through 2012.

               Subtitle D--Other Miscellaneous Provisions

SEC. 11301. DESIGNATION OF SEPARATE COTTON-PRODUCING STATES UNDER 
              COTTON RESEARCH AND PROMOTION ACT.

    Section 17(f) of the Cotton Research and Promotion Act (7 U.S.C. 
2116(f)) is amended by adding at the end the following new sentence: 
``Notwithstanding the preceding sentence, effective beginning with the 
2008 crop of cotton, the States of Kansas, Virginia, and Florida shall 
each be deemed to be a separate cotton-producing State for the purposes 
of this Act.''.

SEC. 11302. COTTON CLASSIFICATION SERVICES.

    (a) Extension.--The first sentence of section 3a of the Act of 
March 3, 1927 (commonly known as the Cotton Statistics and Estimates 
Act; 7 U.S.C. 473a), is amended by striking ``2007'' and inserting 
``2012''.
    (b) Establishment of Offices.--The second sentence of section 3a of 
the Act of March 3, 1927, is amended in the proviso--
            (1) by striking ``and'' at the end of clause (6);
            (2) by striking the period at the end of clause (7) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause: ``(8) 
        the Secretary may enter into long-term lease agreements that 
        exceed five years or may take title to property, including 
        through purchase agreements, for the purposes of obtaining 
        offices to be used for the classification of cotton in 
        accordance with this Act if the Secretary determines such 
        action would best effectuate the purposes of this Act.''.

SEC. 11303. AVAILABILITY OF EXCESS AND SURPLUS COMPUTERS IN RURAL 
              AREAS.

    The Secretary of Agriculture may make available to any city or town 
located in a rural area (as defined in section 343(a)(13)(A) of the 
Consolidated Farm and Rural Development Act) excess or surplus 
computers or other technical equipment of the Department of 
Agriculture.

SEC. 11304. PERMANENT DEBARMENT FROM PARTICIPATION IN DEPARTMENT OF 
              AGRICULTURE PROGRAMS FOR FRAUD.

    The Secretary of Agriculture is hereby granted the authority to 
permanently debar an individual, organization, corporation, or other 
entity convicted of knowingly defrauding the United States in 
connection with any program administered by the Department of 
Agriculture from any subsequent participation in Department of 
Agriculture programs.

SEC. 11305. NO DISCRIMINATION AGAINST USE OF REGISTERED PESTICIDE 
              PRODUCTS OR CLASSES OF PESTICIDE PRODUCTS.

    In establishing priorities and evaluation criteria for the approval 
of plans, contracts, and agreements under title II, the Secretary of 
Agriculture shall not discriminate against the use of specific 
registered pesticide products or classes of pesticide products.

SEC. 11306. PROHIBITION ON CLOSURE OR RELOCATION OF COUNTY OFFICES FOR 
              THE FARM SERVICE AGENCY, RURAL DEVELOPMENT AGENCY, AND 
              NATURAL RESOURCES CONSERVATION SERVICE.

    Until the date that is one year after the date of the enactment of 
this Act, the Secretary of Agriculture may not close or relocate a 
county or field office of the Farm Service Agency, Rural Development 
Agency, or Natural Resources Conservation Service of the Department of 
Agriculture.

SEC. 11307. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, BIOLOGICAL 
              CONTROL ORGANISMS, AND NOXIOUS WEEDS.

    (a) In General.--Subtitle A of title IV of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 7701 et seq.) is amended by adding at 
the end the following new section:

``SEC. 420. REGULATION OF EXPORTS OF PLANTS, PLANT PRODUCTS, BIOLOGICAL 
              CONTROL ORGANISMS, AND NOXIOUS WEEDS.

    ``(a) In General.--The Secretary may regulate plants, plant 
products, biological control organisms, and noxious weeds for export 
purposes.
    ``(b) Duties.--The Secretary shall--
            ``(1) coordinate fruit and vegetable market analyses with 
        the private sector and the Administrator of Foreign 
        Agricultural Service; and
            ``(2) make publicly available on an Internet website--
                    ``(A) the status of all export petitions;
                    ``(B) to the greatest extent possible, an 
                explanation of the sanitary or phytosanitary issues 
                associated with each pending export petition; and
                    ``(C) to the greatest extent possible, information 
                on the import requirements of foreign countries for 
                fruits and vegetables.
    ``(c) Regulations.--The Secretary may issue regulations to 
implement this section.''.
    (b) Table of Contents.--The table of contents in section 1(b) of 
such Act (7 U.S.C. 1501 note) is amended by inserting after the item 
relating to section 419 the following new item:

``Sec. 420. Regulation of exports of plants, plant products, biological 
                            control organisms, and noxious weeds.''.

SEC. 11308. GRANTS TO REDUCE PRODUCTION OF METHAMPHETAMINES FROM 
              ANHYDROUS AMMONIA.

    (a) Grant Authority.--The Secretary of Agriculture may make a grant 
to an eligible entity to enable the entity to obtain and add to an 
anhydrous ammonia fertilizer nurse tank a substance which will reduce 
the amount of methamphetamine which can be produced from any anhydrous 
ammonia removed from the tank.
    (b) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a producer of agricultural commodities;
                    (B) a cooperative association a majority of the 
                members of which produce or process agricultural 
                commodities, and
                    (C) a person in the trade or business of--
                            (i) selling an agricultural product, 
                        including an agricultural chemical, at retail, 
                        predominantly to farmers and ranchers; or
                            (ii) aerial and ground application of an 
                        agricultural chemical.
            (2) Nurse tank.--The term ``nurse tank'' shall have the 
        meaning set forth in section 173.315(m) of title 49, Code of 
        Federal Regulations, as in effect as of the date of the 
        enactment of this Act.
    (c) Grant Amount.--The amount of a grant made under this section to 
an entity shall be not less than $40 and not more than $60, multiplied 
by the number of fertilizer nurse tanks of the entity.
    (d) Limitations on Authorization of Appropriations.--For grants 
under this section, there are authorized to be appropriated to the 
Secretary a total of not more than $15,000,000 for fiscal years 2008 
through 2012.

SEC. 11309. USDA GRADUATE SCHOOL.

    (a) Section 921 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 2279b) is amended by striking subsections (a) 
through (k) and inserting the following: ``The Department of 
Agriculture shall not establish, maintain, or otherwise operate a 
nonappropriated fund instrumentality of the United States to develop, 
administer, or provide educational training and professional 
development activities, including educational activities for Federal 
agencies, Federal employees, nonprofit organizations, other entities, 
and members of the general public.''.
    (b) Effective Date.--The amendment made in subsection (a) apply 
beginning October 1, 2008.

SEC. 11310. PREVENTION AND INVESTIGATION OF PAYMENT AND FRAUD AND 
              ERROR.

    Section 1113(k) of the Right to Financial Privacy Act of 1978 (12 
U.S.C. 3413(k)) is amended to read as follows:
    ``(k) Disclosure Necessary for Proper Administration of Programs of 
Certain Government Authorities.--
            ``(1) Disclosure to government authorities.--Nothing in 
        this title shall apply to the disclosure by the financial 
        institution of the financial records of any customer to the 
        Department of the Treasury, the Social Security Administration, 
        the Railroad Retirement Board, or any other Government 
        authority that certifies, disburses, or collects payments, when 
        the disclosure of such information is necessary to, and such 
        information is used solely for the purposes of--
                    ``(A) the proper administration of section 1441 of 
                the Internal Revenue Code of 1986 (26 U.S.C. 1441);
                    ``(B) the proper administration of title II of the 
                Social Security Act (42 U.S.C. 401 et seq.);
                    ``(C) the proper administration of the Railroad 
                Retirement Act of 1974 (45 U.S.C. 231 et seq.);
                    ``(D) the verification of the identify of any 
                person in connection with the issuance of a Federal 
                payment or collection of funds by a Government 
                authority; or
                    ``(E) the investigation or recovery of an improper 
                Federal payment or collection of funds, or an 
                improperly negotiated Treasury check.
            ``(2) Limitations on subsequent disclosure.--
        Notwithstanding any other provision of law, any request 
        authorized by paragraph (1), and the information contained 
        therein, may be used by the financial institution and its 
        agents solely for the purpose of providing the customer's 
        financial records to the Government authority requesting the 
        information and shall be barred from redisclosure by the 
        financial institution or its agents. Any Government authority 
        receiving information pursuant to paragraph (1) may not 
        disclose or use the information except for the purposes set 
        forth in such paragraph.''.

SEC. 11311. SENSE OF CONGRESS REGARDING FOOD DESERTS, GEOGRAPHICALLY 
              ISOLATED NEIGHBORHOODS AND COMMUNITIES WITH LIMITED OR NO 
              ACCESS TO MAJOR CHAIN GROCERY STORES.

    It is the sense of Congress that the Secretary of Agriculture, in 
conjunction with the National Institutes of Health, the Centers for 
Disease Control, the Institute of Medicine and faith-based 
organizations, should--
            (1) conduct a national assessment of food deserts in the 
        United States, namely those geographically isolated 
        neighborhoods and communities with limited or no access to 
        major-chain grocery stores; and
            (2) develop recommendations for eliminating food deserts.

SEC. 11312. PIGFORD CLAIMS.

    (a) In General.--Any Pigford claimant who has not previously 
obtained a determination on the merits of a Pigford claim may, in a 
civil action, obtain that determination.
    (b) Limitation.--Notwithstanding any other provision of law--
            (1) all payments or debt relief (including any limitation 
        on foreclosure under subsection (f)) made pursuant to an action 
        commenced under subsection (a) shall be made exclusively from 
        funds made available pursuant to subsection (h), Provided that 
        the total amount of payments and debt relief pursuant to an 
        action commenced under subsection (a) shall not exceed 
        $100,000,000; and
            (2) in no event may such payments or debt relief be made 
        from the Judgement Fund established by 31 U.S.C. 1304.
    (c) Intent of Congress as to Remedial Nature of Section.--It is the 
intent of Congress that this section be liberally construed so as to 
effectuate its remedial purpose of giving a full determination on the 
merits for each Pigford claim denied that determination.
    (d) Loan Data.--
            (1) Report to person submitting petition.--Not later than 
        60 days after the Secretary of Agriculture receives notice of a 
        complaint filed by a claimant under subsection (a), the 
        Secretary shall provide to the claimant a report on farm credit 
        loans made within the claimant's county or adjacent county by 
        the Department during the period beginning on January 1 of the 
        year preceding the year or years covered by the complaint and 
        ending on December 31 of year following such year or years. 
        Such report shall contain information on all persons whose 
        application for a loan was accepted, including--
                    (A) the race of the applicant;
                    (B) the date of application;
                    (C) the date of the loan decision;
                    (D) the location of the office making the loan 
                decision; and
                    (E) all data relevant to the process of deciding on 
                the loan.
            (2) No personally identifiable information.--The reports 
        provided pursuant to paragraph (1) shall not contain any 
        information that would identify any person that applied for a 
        loan from the Department of Agriculture.
    (e) Expedited Resolutions Authorized.--Any person filing a 
complaint under this Act for discrimination in the application for, or 
making or servicing of, a farm loan, at his or her discretion, may seek 
liquidated damages of $50,000, discharge of the debt that was incurred 
under, or affected by, the discrimination that is the subject of the 
person's complaint, and a tax payment in the amount equal to 25 percent 
of the liquidated damages and loan principal discharged, in which 
case--
            (1) if only such damages, debt discharge, and tax payment 
        are sought, the complainant shall be able to prove his or her 
        case by substantial evidence; and
            (2) the court shall decide the case based on a review of 
        documents submitted by the complainant and defendant relevant 
        to the issues of liability and damages.
    (f) Limitation on Foreclosures.--The Secretary of Agriculture may 
not begin acceleration on or foreclosure of a loan if a borrower is a 
Pigford claimant and, in an appropriate administrative proceeding, 
makes a prima facie case that the foreclosure is related to a Pigford 
claim.
    (g) Definitions.--In this Act--
            (1) the term ``Pigford claimant'' means an individual who 
        previously submitted a late-filing request under section 5(g) 
        of the consent decree in the case of Pigford v. Glickman, 
        approved by the United States District Court for the District 
        of Columbia on April 14, 1999; and
            (2) the term ``Pigford claim'' means a discrimination 
        complaint, as defined by section 1(h) of that consent decree 
        and documented under section 5(b) of that consent decree.
    (h) Funding.--Of the funds of the Commodity Credit Corporation, the 
Secretary shall make available $100,000,000 for fiscal year 2008, to 
remain available until expended, for payments and debt relief in 
satisfaction of claims against the United States under subsection (a), 
and for any actions made pursuant to subsection (f).

SEC. 11313. COMPTROLLER GENERAL STUDY OF WASTEWATER INFRASTRUCTURE NEAR 
              UNITED STATES-MEXICO BORDER.

    The Comptroller General shall conduct a study of the state of 
wastewater infrastructure in rural communities within 150 miles of the 
United States-Mexico border to determine what the Federal Government 
can do to assist border rural communities in bringing wastewater 
infrastructure up to date.

SEC. 11314. ELIMINATION OF STATUTE OF LIMITATIONS APPLICABLE TO 
              COLLECTION OF DEBT BY ADMINISTRATIVE OFFSET.

    (a) Elimination.--Section 3716(e) of title 31, United States Code, 
is amended to read as follows:
    ``(e)(1) Notwithstanding any other provision of law, regulation, or 
administrative limitation, no limitation on the period within which an 
offset may be initiated or taken pursuant to this section shall be 
effective.
    ``(2) This section does not apply when a statute explicitly 
prohibits using administrative offset or setoff to collect the claim or 
type of claim involved.''.
    (b) Application of Amendment.--The amendment made by subsection (a) 
shall apply to any debt outstanding on or after the date of the 
enactment of this Act.

SEC. 11315. POLLINATOR PROTECTION.

    (a) Short Title.--This section may be cited as the ``Pollinator 
Protection Act of 2007''.
    (b) Findings.--Congress finds that--
            (1) many of the crops that humans and livestock consume 
        rely on pollinators for healthy growth;
            (2) pollination by honey and native bees adds more than 
        $18,000,000,000 annually to the value of United States crops;
            (3) \1/3\ of the food supply of the United States depends 
        on bee pollination, which makes the management and protection 
        of pollinators an issue of paramount importance to the security 
        of the United States food supply system;
            (4) colony collapse disorder is the name that has been 
        given to the latest die-off of honey bee colonies, exacerbating 
        the continual decline of pollinators in North America;
            (5) honey bee colonies in more than 23 states have been 
        affected by colony collapse disorder;
            (6) if the current rate of decline continues, the United 
        States will be forced to rely more heavily on imported foods, 
        which will destabilize the food security of the United States 
        through adverse affects on the availability, price, and quality 
        of the many fruits, vegetables, and other products that depend 
        on animal pollination; and
            (7) enhanced funding for research on honey bees, native 
        bees, parasites, pathogens, toxins, and other environmental 
        factors affecting bees and pollination of cultivated and wild 
        plants will result in methods of response to colony collapse 
        disorder and other factors causing the decline of pollinators 
        in North America.
    (c) Authorizations of Appropriations.--
            (1) Agricultural research service.--There is authorized to 
        be appropriated to the Secretary of Agriculture, acting through 
        the Agricultural Research Service--
                    (A) $3,000,000 for each of fiscal years 2008 
                through 2012, to be used for new personnel, facilities 
                improvement, and additional research at Department of 
                Agriculture Bee Research Laboratories;
                    (B) $2,500,000 for each of fiscal years 2008 and 
                2009, to be used for research on honey and native bee 
                physiology, insect pathology, insect chemical ecology, 
                and honey and native bee toxicology at other Department 
                of Agriculture facilities in New York, Florida, 
                California, Utah, and Texas; and
                    (C) $1,750,000 for each of fiscal years 2008 
                through 2010, to be used for an area-wide research 
                program to identify causes and solutions for colony 
                collapse disorder in affected States.
            (2) Cooperative state research, education, and extension 
        service.--There is authorized to be appropriated to the 
        Secretary of Agriculture, acting through the Cooperative State 
        Research, Education, and Extension Service, $10,000,000 for 
        each of fiscal years 2008 through 2012 to be used to fund 
        Department of Agriculture extension and research grants to 
        investigate--
                    (A) honey bee biology, immunology, and ecology;
                    (B) honey bee genomics;
                    (C) honey bee bioinformatics;
                    (D) native bee crop pollination and habitat 
                conservation;
                    (E) native bee taxonomy and ecology;
                    (F) pollination biology;
                    (G) sublethal effects of insecticides, herbicides, 
                and fungicides on honey bees, native pollinators, and 
                other beneficial insects;
                    (H) the effects of genetically-modified crops, 
                including the interaction of genetically-modified crops 
                with honey bees and other native pollinators; and
                    (I) honey, bumble, and other native bee parasites 
                and pathogens and effects on other native pollinators.
            (3) Animal and plant health inspection service.--There is 
        authorized to be appropriated to the Secretary of Agriculture, 
        acting through the Animal and Plant Health Inspection Service, 
        $2,250,000 for each of fiscal years 2008 through 2012 to 
        conduct a nationwide honey bee pest and pathogen surveillance 
        program.
    (d) Annual Reports.--The Secretary of Agriculture, acting through 
the Agricultural Research Service and the Cooperative State Research, 
Education, and Extension Service, shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a report on the 
status and progress of bee research projects that are carried out by 
the Secretary.
    (e) Giving Pollinator Habitat and Protection a Priority in 
Conservation Programs.--Section 1244 of the Food Security Act of 1985 
(16 U.S.C. 3844) is amended by adding at the end the following new 
subsection:
    ``(c) Native and Managed Pollinators.--In carrying out any 
conservation program administered by the Secretary, except the farmland 
protection program, the Secretary shall establish a priority and 
provide incentives for--
            ``(1) increasing habitat for native and managed 
        pollinators, especially native habitat; and
            ``(2) establishing cropping systems, integrated pest 
        management regimes, and other practices to protect native and 
        managed pollinators.''.

SEC. 11316. PROHIBITION ON USE OF LIVE ANIMALS FOR MARKETING MEDICAL 
              DEVICES; FINES UNDER THE ANIMAL WELFARE ACT.

    (a) Prohibition on Use of Animals for Marketing of Medical 
Devices.--The Animal Welfare Act (7 U.S.C. 2131 et seq.) is amended by 
inserting after section 17 the following new section:

   ``prohibition on use of live animals for marketing medical devices

    ``Sec. 18.  (a) In General.--No person may use a live animal to--
            ``(1) demonstrate a medical device or product to a sales 
        representative for the purpose of marketing such medical device 
        or product;
            ``(2) train a sales representative to use a medical device 
        or product;
            ``(3) demonstrate a medical device or product in a workshop 
        or training session for the purpose of marketing a medical 
        device or product; or
            ``(4) create a multimedia recording (including a video 
        recording) for the purpose of marketing a medical device or 
        product.
    ``(b) Exception.--Subsection (a) shall not apply to the training of 
medical personnel for a purpose other than marketing a medical device 
or product.
    ``(c) Device Defined.--In this section, the term `device' has the 
meaning given the term in section 201(h) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321(h)).''.
    (b) Fines for Violations of the Animal Welfare Act.--Section 19(b) 
of the Animal Welfare Act (7 U.S.C. 2149(b)) is amended--
            (1) in the first sentence by striking ``not more than 
        $2,500 for each such violation'' and inserting ``not more than 
        $10,000 for each such violation''; and
            (2) by striking the second sentence and inserting the 
        following: ``Each violation, each day during which a violation 
        continues, and, in the case of a violation with respect to 
        animals, each animal that is the subject of such a violation 
        shall be a separate offense.''.
    (c) Reports on Activities Under the Animal Welfare Act.--The Animal 
Welfare Act (7 U.S.C. 2131 et seq.) is further amended by striking 
section 25 and inserting the following new section:

                            ``annual report

    ``Sec. 25.  Not later than March 1 of each year, the Secretary 
shall submit to Congress a report containing--
            ``(1) an identification of all research facilities, 
        exhibitors, and other persons and establishments licensed by 
        the Secretary under section 3 and section 12;
            ``(2) an identification of all research facilities, 
        intermediate handlers, carriers, and exhibitors registered 
        under section 6;
            ``(3) the nature and place of all investigations and 
        inspections conducted by the Secretary under section 16, and 
        all reports received by the Secretary under section 13;
            ``(4) recommendations for legislation to improve the 
        administration of this Act or any provisions of this Act; and
            ``(5) recommendations and conclusions concerning the 
        aircraft environment as it relates to the carriage of live 
        animals in air transportation.''.

SEC. 11317. PROTECTION OF PETS.

    (a) Short Title.--This section may be cited as the ``Pet Safety and 
Protection Act of 2007''.
    (b) Research Facilities.--Section 7 of the Animal Welfare Act (7 
U.S.C. 2137) is amended to read as follows:

``SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FACILITIES.

    ``(a) Definition of Person.--In this section, the term `person' 
means any individual, partnership, firm, joint stock company, 
corporation, association, trust, estate, pound, shelter, or other legal 
entity.
    ``(b) Use of Dogs and Cats.--No research facility or Federal 
research facility may use a dog or cat for research or educational 
purposes if the dog or cat was obtained from a person other than a 
person described in subsection (d).
    ``(c) Selling, Donating, or Offering Dogs and Cats.--No person, 
other than a person described in subsection (d), may sell, donate, or 
offer a dog or cat to any research facility or Federal research 
facility.
    ``(d) Permissible Sources.--A person from whom a research facility 
or a Federal research facility may obtain a dog or cat for research or 
educational purposes under subsection (b), and a person who may sell, 
donate, or offer a dog or cat to a research facility or a Federal 
research facility under subsection (c), shall be--
            ``(1) a dealer licensed under section 3 that has bred and 
        raised the dog or cat;
            ``(2) a publicly owned and operated pound or shelter that--
                    ``(A) is registered with the Secretary;
                    ``(B) is in compliance with section 28(a)(1) and 
                with the requirements for dealers in subsections (b) 
                and (c) of section 28; and
                    ``(C) obtained the dog or cat from its legal owner, 
                other than a pound or shelter;
            ``(3) a person that is donating the dog or cat and that--
                    ``(A) bred and raised the dog or cat; or
                    ``(B) owned the dog or cat for not less than 1 year 
                immediately preceding the donation;
            ``(4) a research facility licensed by the Secretary; and
            ``(5) a Federal research facility licensed by the 
        Secretary.
    ``(e) Penalties.--
            ``(1) In general.--A person that violates this section 
        shall be fined $1,000 for each violation.
            ``(2) Additional penalty.--A penalty under this subsection 
        shall be in addition to any other applicable penalty.
    ``(f) No Required Sale or Donation.--Nothing in this section 
requires a pound or shelter to sell, donate, or offer a dog or cat to a 
research facility or Federal research facility.''.
    (c) Federal Research Facilities.--Section 8 of the Animal Welfare 
Act (7 U.S.C. 2138) is amended--
            (1) by striking ``Sec. 8. No department'' and inserting the 
        following:

``SEC. 8. FEDERAL RESEARCH FACILITIES.

    ``Except as provided in section 7, no department'';
            (2) by striking ``research or experimentation or''; and
            (3) by striking ``such purposes'' and inserting ``that 
        purpose''.
    (d) Certification.--Section 28(b)(1) of the Animal Welfare Act (7 
U.S.C. 2158(b)(1)) is amended by striking ``individual or entity'' and 
inserting ``research facility or Federal research facility''.
    (e) Effective Date.--The amendments made by subsections (b), (c), 
and (d) take effect on the date that is 90 days after the date of the 
enactment of this Act.

TITLE XII--PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED STATES 
                                TAXATION

Sec. 12001. Limitation on treaty benefits for certain deductible 
                            payments.

SEC. 12001. LIMITATION ON TREATY BENEFITS FOR CERTAIN DEDUCTIBLE 
              PAYMENTS.

    (a) In General.--Section 894 of the Internal Revenue Code of 1986 
(relating to income affected by treaty) is amended by adding at the end 
the following new subsection:
    ``(d) Limitation on Treaty Benefits for Certain Deductible 
Payments.--
            ``(1) In general.--In the case of any deductible related-
        party payment, the amount of any withholding tax imposed under 
        chapter 3 (and any tax imposed under subpart A or B of this 
        part) with respect to such payment shall not be less than the 
        amount which would be imposed if the payment were made directly 
        to the foreign parent corporation (taking into account any 
        income tax treaty between the United States and the country in 
        which the foreign parent corporation is resident).
            ``(2) Deductible related-party payment.--For purposes of 
        this subsection, the term `deductible related-party payment' 
        means any payment made, directly or indirectly, by any person 
        to any other person if the payment is allowable as a deduction 
        under this chapter and both persons are members of the same 
        foreign controlled group of entities.
            ``(3) Foreign controlled group of entities.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `foreign controlled 
                group of entities' means a controlled group of entities 
                the common parent of which is a foreign corporation.
                    ``(B) Controlled group of entities.--The term 
                `controlled group of entities' means a controlled group 
                of corporations as defined in section 1563(a)(1), 
                except that--
                            ``(i) `more than 50 percent' shall be 
                        substituted for `at least 80 percent' each 
                        place it appears therein, and
                            ``(ii) the determination shall be made 
                        without regard to subsections (a)(4) and (b)(2) 
                        of section 1563.
                A partnership or any other entity (other than a 
                corporation) shall be treated as a member of a 
                controlled group of entities if such entity is 
                controlled (within the meaning of section 954(d)(3)) by 
                members of such group (including any entity treated as 
                a member of such group by reason of this sentence).
            ``(4) Foreign parent corporation.--For purposes of this 
        subsection, the term `foreign parent corporation' means, with 
        respect to any deductible related-party payment, the common 
        parent of the foreign controlled group of entities referred to 
        in paragraph (3)(A).
            ``(5) Regulations.--The Secretary may prescribe such 
        regulations or other guidance as are necessary or appropriate 
        to carry out the purposes of this subsection, including 
        regulations or other guidance which provide for--
                    ``(A) the treatment of two or more persons as 
                members of a foreign controlled group of entities if 
                such persons would be the common parent of such group 
                if treated as one corporation, and
                    ``(B) the treatment of any member of a foreign 
                controlled group of entities as the common parent of 
                such group if such treatment is appropriate taking into 
                account the economic relationships among such 
                entities.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after the date of the enactment of this Act.

                     TITLE XIII--ADDITIONAL OFFSETS

Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief

Sec. 13001. Conservation of resources fees.
Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for 
                            the oil and gas industry.
Sec. 13003. Time for payment of corporate estimated taxes.
                   Subtitle B--Allocation of Offsets

Sec. 13011. Report on funds; rate of federal crop insurance.

Subtitle A--Conservation of Resources Fees and Repeal of Royalty Relief

SEC. 13001. CONSERVATION OF RESOURCES FEES.

    (a) Conservation of Resources Fees.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary of the Interior by 
        regulation shall establish a conservation of resources fee for 
        producing Federal oil and gas leases in the Gulf of Mexico.
            (2) Fee terms.--The fee under paragraph (1)--
                    (A) subject to subparagraph (C), shall apply to 
                covered leases that are producing leases;
                    (B) shall be set at $9 per barrel for oil and $1.25 
                per million Btu for gas, respectively, in 2005 dollars; 
                and
                    (C) shall apply only to production of oil or gas 
                occurring--
                            (i) in any calendar year in which the 
                        arithmetic average of the daily closing prices 
                        for light sweet crude oil on the New York 
                        Mercantile Exchange (NYMEX) exceeds $34.73 per 
                        barrel for oil and $4.34 per million Btu for 
                        gas in 2005 dollars; and
                            (ii) on or after October 1, 2006.
            (3) Treatment of receipts.--Amounts received by the United 
        States as fees under this subsection shall be treated as 
        offsetting receipts.
    (b) Covered Lease Defined.--In this section the term ``covered 
lease'' means a lease for oil or gas production in the Gulf of Mexico 
that is--
            (1) in existence on the date of enactment of this Act;
            (2) issued by the Department of the Interior under section 
        304 of the Outer Continental Shelf Deep Water Royalty Relief 
        Act (43 U.S.C. 1337 note; Public Law 104-58); and
            (3) not subject to limitations on royalty relief based on 
        market price that are equal to or less than the price 
        thresholds described in clauses (v) through (vii) of section 
        8(a)(3)(C) of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1337(a)(3)(C)).

SEC. 13002. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED ROYALTY RELIEF FOR 
              THE OIL AND GAS INDUSTRY.

    (a) Repeal of Provisions of Energy Policy Act of 2005.--The 
following provisions of the Energy Policy Act of 2005 (Public Law 109-
58) are repealed:
            (1) Section 344 (42 U.S.C. 15904; relating to incentives 
        for natural gas production from deep wells in shallow waters of 
        the Gulf of Mexico).
            (2) Section 345 (42 U.S.C. 15905; relating to royalty 
        relief for deep water production in the Gulf of Mexico).
            (3) Subsection (i) of section 365 (42 U.S.C. 15924; 
        relating to the prohibition on drilling-related permit 
        application cost recovery fees).
    (b) Provisions Relating to Planning Areas Offshore Alaska.--Section 
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas 
offshore Alaska'' after ``West longitude''.
    (c) Provisions Relating to Naval Petroleum Reserve in Alaska.--
Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as 
transferred, redesignated, moved, and amended by section 347 of the 
Energy Policy Act of 2005 (119 Stat. 704)) is amended--
            (1) in subsection (i) by striking paragraphs (2) through 
        (6); and
            (2) by striking subsection (k).

SEC. 13003. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

    Subparagraph (B) of section 401(1) of the Tax Increase Prevention 
and Reconciliation Act of 2005 is amended by striking ``114.50 
percent'' and inserting ``115.75 percent''.

                   Subtitle B--Allocation of Offsets

SEC. 13011. REPORT ON FUNDS; RATE OF FEDERAL CROP INSURANCE.

    (a) Report.--Not later than the September 15 preceding each fiscal 
year, the Secretary of the Interior shall report to the Secretary of 
Agriculture the total amount expected to be received in the fiscal year 
as a result of the changes in subtitle A.
    (b) Rate.--Notwithstanding section 508(k)(4)(A)(ii) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)(ii)), the reimbursement rate 
established for each of the reinsurance years 2012 through 2017 shall 
be the lesser of--
            (1) the rate established in such section; and
            (2) the product of--
                    (A) the rate established in such section; and
                    (B) the factor calculated in subsection (c).
    (c) Calculation.--In carrying out subsection (b), the Secretary of 
the Interior shall calculate the appropriate factor by dividing the 
amount calculated under subsection (a) for the fiscal year by the 
amount calculated under subsection (a) for fiscal year 2012.

            Passed the House of Representatives July 27, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

                               By Jorge E. Sorensen,

                                                          Deputy Clerk.
                                                       Calendar No. 339

110th CONGRESS

  1st Session

                               H. R. 2419

_______________________________________________________________________

                                 AN ACT

To provide for the continuation of agricultural programs through fiscal 
                   year 2012, and for other purposes.

_______________________________________________________________________

                           September 5, 2007

            Read the second time and placed on the calendar
```