59–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 110–261 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2419) TO PROVIDE 

FOR THE CONTINUATION OF AGRICULTURAL PROGRAMS THROUGH FISCAL YEAR 2012, AND FOR OTHER PURPOSES 

JULY 26, 2007 (Legislative Day of July 25, 2007).—Referred to the House Calendar 

and ordered to be printed 

Mr. CARDOZA, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 574] 

The Committee on Rules, having had under consideration House 

Resolution 574, by a vote of 9–4, report the same to the House with 

the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 2419, the Farm, 

Nutrition, and Bioenergy Act of 2007, under a structured rule. The 

rule provides one hour of general debate equally divided and controlled by the chairman and ranking minority member of the Committee on Agriculture. The rule waives all points of order against 

consideration of the bill except clauses 9 and 10 of rule XXI. The 

rule provides that the amendment in the nature of a substitute recommended by the Committee on Agriculture now printed in the 

bill, modified by the amendments printed in Part A of the Rules 

Committee report, shall be considered as adopted in the House and 

in the Committee of the Whole. The bill as amended shall be considered as an original bill for the purpose of amendment and shall 

be considered as read. All points of order against provisions in the 

bill, as amended, are waived. 

The rule makes in order only those further amendments printed 

in part B of this report and amendments en bloc described in section 3 of the resolution. The amendments made in order may be offered only in the order printed in this report, may be offered only 

by a Member designated in this report, shall be considered as read, 

shall be debatable for the time specified in this report equally divided and controlled by the proponent and an opponent, shall not 

be subject to amendment, and shall not be subject to a demand for 

a division of the question in the House or in the Committee of the 

Whole. Section 3 of the rule allows the Chairman of the Committee 


rfrederick on PROD1PC67 with HEARING
2 

on Agriculture to offer amendments en bloc consisting of amendments printed in part B of this report not earlier disposed of or to 

offer germane modifications to such. All points of order against the 

amendments except for clauses 9 and 10 of rule XXI are waived. 

The rule provides one motion to recommit with or without instructions. Finally, the rule provides that the Chair may postpone further consideration of the bill to a time designated by the Speaker. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI) includes the following: a 

waiver of rule XIII, clause 4(a), requiring a three-day layover of the 

committee report; a waiver of rule XIII, clause 3(e), requiring the 

inclusion of a comparative print of any part of the bill or joint resolution proposing to amend the statute and of the statute or part 

thereof proposed to be amended; a waiver of section 306 of the Congressional Budget Act prohibiting consideration of legislation within the jurisdiction of the Committee on the Budget unless reported 

by the Budget Committee; and a waiver of section 401 of the Congressional Budget Act prohibiting consideration of legislation providing new entitlement authority which becomes effective during 

the current fiscal year. 

The waiver against provisions in the bill, as amended, includes 

the following: a waiver of rule XXI, clause 4 prohibiting appropriations in legislative bills; and a waiver of clause 5(a) of rule XXI prohibiting tax or tariff provisions in a bill not reported by a committee with jurisdiction over revenue measures. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 249 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Dreier. 

Summary of motion: To grant a modified open rule with a preprinting requirement. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 250 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Dreier. 

Summary of motion: To allow the Ways and Means Committee 

Ranking Member McCrery to offer a substitute to the tax provision, 

debatable for one hour. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 


rfrederick on PROD1PC67 with HEARING
3 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 251 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To allow the Chairman and the Ranking 

Member of the Committee on Natural Resources one hour to discuss revisions in the body of the last paragraph of the Manager’s 

amendment. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 252 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Dreier. 

Summary of motion: To allow for a division of the question to 

provide a separate vote on the Ways and Means offset provision 

contained in Part A of the report. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 253 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To strike the Rangel amendment from the 

rule. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 254 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To provide an open rule. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 255 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 


rfrederick on PROD1PC67 with HEARING
4 

Measure: H.R. 2419. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Fortun ̃ o (PR), #4, which would 

exempt all milk deficient states from paying the mandatory Dairy 

Promotion Assessment as determined by the Dairy Production Stabilization Act of 1983. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 256 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Berry (AR), #17, which strikes 

Title I of H.R. 2419 and replaces it with an extension of Title I of 

the Farm Security and Rural Investment Act of 2002 for five years, 

with certain exceptions. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—yea; Slaughter—Nay. 

Rules Committee record vote No. 257. 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Diaz-Balart. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Gerlach (PA), #62, which 

amends the bill to set aside 15% of farmland protection funds for 

cost-share grants (25% maximum Federal share) to support eligible 

State agencies, county, and one or more eligible entities (local government or private entities) to purchase conservation easements. 

Results: Defeated 4–9. 

Vote by Members: McGovern—nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 258. 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Blumenauer (OR)/Flake (AZ)/ 

Ryan, Paul (WI)/Kind (WI), #12, which provides for effective annual 

payment limits for farm commodity program payments and benefits. The effective limits are $40,000 for direct payments, $60,000 

for counter-cyclical payments, and $150,000 for marketing loan program payments and benefits. Overall, the amendment limits farm 


rfrederick on PROD1PC67 with HEARING
5 

commodity program payments and benefits to no more than 

$250,000 per year. The amendment provides for direct attribution 

of farm commodity program payments and tightens requirements 

for being considered actively engaged in farming. The amendment 

also increases funding for certain conservation and forestry programs. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 259 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Ellison (MN), #34, which would 

require states to ‘‘opt in’’ and pass legislation if they wish to deny 

food stamp benefits to drug felons who have been released from 

prison. If a state does not pass such legislation, these individuals 

would be eligible for food stamps. 

Results: Defeated 4–9. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 260 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Hastings (WA), #49, which 

would authorize USDA to make payments to asparagus producers 

that have suffered market losses due to increased imports of Peruvian asparagus under the Andean Trade Preferences Act (ATPA). 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea. 

Rules Committee record vote No. 261 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Boustany (LA)/Goodlatte (VA)/ 

Bonner (AL)/Buyer (IN)/Pence (IN)/Conaway (TX), #5, which strikes 

Section 4008 of the bill. That section prevents states from 

privatizing their food stamp eligibility determination system and 

other aspects of the Food Stamp Program. 

Results: Defeated 4–9. 


rfrederick on PROD1PC67 with HEARING
6 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Cardoza—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; 

Sutton—Nay; Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; 

Sessions—Yea; Slaughter—Nay. 

Rules Committee record vote No. 262 

Date: July 26, 2007 (Legislative Day of July 25, 2007). 

Measure: H.R. 2419. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 9–4. 

Vote by Members: McGovern—Yea; Hastings (FL)—Yea; Matsui—Yea; Cardoza—Yea; Welch—Yea; Castor—Yea; Arcuri—Yea; 

Sutton—Yea; Dreier—Nay; Diaz-Balart—Nay; Hastings (WA)—

Nay; Sessions—Nay; Slaughter—Yea. 

SUMMARY OF AMENDMENTS CONSIDERED AS ADOPTED

Summary of Reserve Fund en bloc 

Food Stamps: excludes combat-related military pay from countable income. Raises the standard deduction. Lifts cap on dependent 

care. Indexes for inflation the asset limits for food stamp households. Excludes qualified tuition programs, Coverdell Education 

Savings Accounts, and retirement accounts from countable financial resources. Increases the minimum benefit. Increases to $250 

million and indexes mandatory funding for TEFAP. 

Energy: Doubles funding for the biobased product designation 

program. Provides mandatory funding for up to $2 billion in loan 

guarantees for biorefineries and biofuel production plants. Adds 

mandatory funding for renewable energy systems and energy efficiency improvements. Increases mandatory funding for Biomass 

Research and Development. Increases funding for USDA bioenergy 

program. Reauthorizes and funds Biodiesel Fuel Education Program. Establishes Biomass Energy Reserve and Forest Biomass for 

Energy program. 

Summary of offset amendments 

The amendment revises an existing exception to the Right to Financial Privacy Act of 1979 so that improper electronic payments 

can be traced and recovered. Revising the exception would permit 

the Federal Government to verify that the correct party is making 

electronic payments to, or receiving electronic payments from, the 

government. (CBO estimates this provision would reduce direct 

spending by $118 million over five years and $283 million over ten 

years. 

The amendment will prevent foreign multinational corporations 

that are organized in countries without tax treaties (generally 

countries with little or no income taxes, including Caribbean tax 

havens) from manipulating the U.S. tax treaty system to avoid U.S. 

taxes. This will not affect any U.S. based multinational and it 

would have little or no impact on foreign multinationals organized 

in countries with tax treaties. (CBO estimates that this amendment would provide $4 billion in the first five years and a total of 

$7.5 billion over 10 years.) 


rfrederick on PROD1PC67 with HEARING
7 

Summary of manager’s amendment: 

Commodity programs: Makes technical changes to achieve full 

savings from elimination of advanced direct and partial counter-cyclical payments. Conservation: Establishes pilot conservation program to create incentives for peanut crop rotation. Includes the 

Sacramento River Watershed as a priority area for RWEP. Provides air quality funding under Conservation Innovation Grants. 

Provides that only land enrolled in general Conservation Reserve 

Program sign-ups is eligible for early termination. Trade: Adds reporting and study requirements. Establishes authorization of food 

aid programs at $2.5 billion annually. Increases authorization for 

Famine Prevention and Relief. Makes tobacco ineligible for MAP. 

Nutrition: Authorizes a competitive grants program to improve underserved communities access to healthy foods. Provides Sense of 

Congress on ‘‘food deserts’’. Establishes the Healthy Food Urban 

Enterprise Development Program. Encourages FAPRI-University 

partnerships related to specialty crop research. Credit: Authorizes 

the Secretary to make and insure loans to eligible purchasers of 

highly fractioned land. Meat and Poultry: Strikes Sense of Congress 

Regarding State Inspected Meat and Poultry Products. Pigford 

Claims: Would allow claimants who met the criteria of a civil action relating to racial discrimination by the USDA but were denied, 

a mechanism for redetermination based on the merits of their 

claims. Provides funding for claims. Cool: Provides that for perishable agricultural commodities and peanuts, such products may only 

be labeled as having a United States country of origin if the commodity is exclusively produced in the United States. APHIS: 

Strikes provision moving certain border inspection functions from 

the Department of Homeland Security to USDA. National Drought 

Preparedness Act of 2005: Establishes the National Drought Council. Crop Insurance: Provides for the Corporation to pay a portion 

of premiums for area revenue plans. Dairy: Provides for a refund 

of assessments on certain imported dairy products. Food Deserts: 

Expresses sense of Congress. Wastewater infrastructure: Requires 

GAO study of rural communities along U.S.-Mexico border. 

Adds new language which provides mandatory (as opposed to discretionary) spending for the McGovern-Dole International Food for 

Education and Child Nutrition Program and helps pay for the program through additional savings in the Federal crop insurance program; Imposes a ‘‘conservation of resources fee’’ on oil or gas produced from certain OCS deepwater leases unless contractual agreements require royalties to be paid when market prices exceed specified thresholds. This provision would apply to production by firms 

that would not, under current law, voluntarily revise the terms of 

leases issued in 1998 and 1999 that provide royalty relief regardless of the market price of oil and gas. The amendment would also 

repeal provisions of the Energy Policy Act of 2004 that preclude the 

Bureau of Land Management from collecting certain fees, provide 

additional royalty relief for oil and gas produced from the Outer 

Continental Shelf from ultra-deep wells, very deep waters and 

Alaska; and authorize the Secretary of the Interior to modify the 

terms of oil and gas leases in the National Petroleum Reserve in 

Alaska. (CBO estimates that these provisions would reduce direct 

spending by $2.435 billion over five years and $6.125 billion over 

ten years. 


rfrederick on PROD1PC67 with HEARING
8 

SUMMARY OF AMENDMENTS MADE IN ORDER

(Summaries derived from information provided by sponsors.) 

1. Kind (WI): The Fairness in Farm and Food Policy Amendment 

will reform the farmer safety net to work better for small farmers 

at lower cost, reallocate funding to nutrition, conservation, specialty crops and healthy foods, rural development, and programs 

that benefit socially disadvantaged farmers. (40 minutes) 

2. Frank (MA)/Bachus (AL): The amendment strikes five sections 

from Title V of the bill (Agribusiness loan eligibility, Loan-to-asset 

value requirements, Population limit for single-family housing 

loans, Majority farmer control requirement, and Borrower stock requirement), which expand the lending authority of the Farm Credit 

System. (10 minutes) 

3. Goodlatte (VA): The amendment streamlines and adopts one 

set of terms and conditions of easements for the Wetlands Reserve 

Program (WRP), Grasslands Reserve Program (GRP), Farmland 

and Ranchland Protection Program (FRPP), and Healthy Forest 

Reserve Program (HFRP). (10 minutes) 

4. Lucas (OK): The amendment would make livestock producers 

eligible for livestock assistance programs regardless of whether 

they had Noninsured Crop Disaster Assistance (NAP) coverage. (10 

minutes) 

5. Cardoza (CA): The amendment requires USDA to transition 

Animal and Plant Health Inspection Service (APHIS) employees responsible for plant pest inspection duties back to USDA from the 

Department of Homeland Security in order to better serve the 

needs of American agriculture. (10 minutes) 

6. Boustany (LA)/Alexander (LA): The amendment states that 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. 

(10 minutes) 

7. Jackson-Lee (TX): The amendment is intended to express the 

sense of Congress that the food available to schoolchildren under 

the school breakfast and lunch program should be selected so as to 

reduce the incidence of juvenile obesity and to maximize nutritional 

value. (10 minutes) 

8. Hastings (FL): The amendment adds a new section for ‘‘Pollinator Protection’’ that authorizes research funding to reduce North 

American pollinator decline and understand Colony Collapse Disorder. This amendment also adjusts USDA conservation programs 

to put a greater emphasis on increasing habitat and establishing 

cropping and integrated pest management practices to protect native and managed pollinators. (10 minutes) 

9. Arcuri (NY)/Welch (VT)/Gillibrand (NY): The amendment expresses the Sense of Congress that the Secretary of Agriculture 

should use existing authority when determining the Class I milk 

price mover to take into account the increased cost of production, 

including energy and feed. (10 minutes) 

10. Welch (VT): The amendment encourages schools to submit 

plans for implementation to the Secretary that include locally 

grown foods, in areas where geographically available. (10 minutes) 

11. Welch (VT)/Arcuri (NY): The amendment adds a provision to 

the review process for the Federal Milk Marketing Order Review 


rfrederick on PROD1PC67 with HEARING
9 

Commission to include an evaluation of cost of production variables, including cost of feed and cost of fuel. Additionally, it encourages the Commission to be regionally diverse, and moves up the 

date from 24 months to 18 months after the enactment of this bill. 

(10 minutes) 

12. Rangel (NY): The amendment removes certain banking restrictions related to Cuba’s payment for agricultural purchases 

from U.S. producers. It also authorizes direct transfers between 

Cuban banks and U.S. banks and allows visas to be issued to conduct activities related to purchasing U.S. agricultural goods. (10 

minutes) 

13. Boehner (OH): The amendment would replace the current 

daily posted county prices (PCPs) used for determining loan deficiency payment rates and repayment rates for marketing assistance loans with a monthly PCP for each crop. It would revise requirements for establishing a producer’s loan deficiency payment 

(LDP) and loan repayment rate to be based on the month that beneficial interest is lost. The amendment aims to address farmers 

taking advantage of short-term market events to lock in artificially 

high loan deficiency payments, while actually selling the commodity later at prices well above the loan rate. (10 minutes) 

14. Johnson, Eddie Bernice (TX): The amendment adds the additional point to Subtitle B of the research title that emphasis should 

be placed on proposals that examine the efficacy of current agriculture policies in promoting the health and welfare of economically 

disadvantaged populations (in addition to supporting research/ 

health promotion to ‘‘solve the problems of nutritional inadequacy). 

(10 minutes) 

15. Manzullo (IL): The amendment exempts the Environmental 

Quality Incentives Program (EQIP) from the $60,000 and $125,000 

payment limitations, resetting it to the $450,000 limitation that is 

in the current law. (10 minutes) 

16. Blumenauer (OR): The amendment would make conservation 

easements purchased through a transferable development rights 

program eligible for grants under the Farm and Ranchland Protection Program. Transferable Development Rights (TDR) programs 

are a voluntary, market-based tool used by states and cities to protect farmland, private property rights, and taxpayer dollars by allowing the transfer of development rights from one parcel of land 

to another. (10 minutes) 

17. Latham (IA): The amendment amends the Household Water 

Well System Program, which makes grants to non-profit 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, to allow the use of inkind contributions to meet the required federal funding match of 

10%. The amendment also clarifies that in-kind contributions used 

to meet the match can be for no purpose other than to administer 

the water well grant program. (10 minutes) 

18. Berry (AR): The amendment will prohibit non-profit organizations with more than $50 million in direct public support from receiving conservation payments. (10 minutes) 

19. Davis, Danny (IL)/Kirk (IL): The amendment strikes the 

sugar sections in the commodity title as well as the feedstock flexiVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
10 

bility program for bioenergy producers, extending current programs 

until 2012. (10 minutes) 

20. Terry (NE): The amendment creates a competitive demonstration project designed to provide proof of concept in 

supplementing corn with sweet sorghum as an ethanol feedstock. 

(10 minutes) 

21. Udall, Mark (CO): The amendment reduces the direct payment rate for cotton by 2⁄3 of a cent. The resulting savings would 

be used to fund enrollment of 224,000 additional acres in the 

Grasslands Reserve Program. (10 minutes) 

22. Wu (OR): The amendment broadens the eligible universities 

by adding that universities that do work in alternative energy related fields, such as agriculture, chemistry, environmental sciences, 

bioengineering, biochemistry, natural resources and public policy 

are eligible for the biofuels from biomass internship program. (10 

minutes) 

23. Clay (MO): The amendment would make grants to eligible entities to assist in purchasing operating organic gardens or greenhouses in urban areas for growing fruits and vegetables. (10 minutes) 

24. Israel (NY)/Doyle (PA): The amendment would eliminate the 

sale of random source animals for research and will prohibit the 

marketing of medical devices by using live animals in demonstrations to market such devices. (10 minutes) 

25. Putnam (FL): The amendment prohibits individuals from receiving farm conservation payments if their income exceeds $1 million, unless 75% of the income comes from farm income. (10 minutes) 

26. Bordallo (GU): The amendment authorizes a grants program 

to assist the land grant institutions in the U.S. territories in upgrading facilities and equipment in the agricultural and food 

sciences. It authorizes appropriations for five years in the amount 

of $8 million per year. It authorizes USDA to vary award amounts 

and to establish competitive criteria for the program. (10 minutes) 

17. Cooper (TN): The amendment will comprehensively reform 

the federal crop insurance program, including the Administration’s 

farm bill crop insurance proposals. This amendment saves approximately $4 billion while adding resources to the Grassland Reserve 

Program. (10 minutes) 

28. Emanuel (IL): The amendment directs the USDA to investigate which estates have been receiving payments in the name of 

dead farmers and recoup payments made in the name of deceased 

individuals. (10 minutes) 

29. Hall, John (NY): The amendment would establish a program 

to encourage environmentally responsible practices on actively 

farmed muck soil land. (10 minutes) 

30. Hodes (NH)/Arcuri (NY): The amendment authorizes a grant 

program for state and local communities and governments known 

as the Community Wood Energy Program to use low-grade wood 

biomass in community wood energy systems for state and locally 

owned businesses such as schools, town halls, and courthouses. (10 

minutes) 

31. Shuler (NC): The amendment allows non-industrial private 

forest lands to be eligible for emergency restoration funds if the 


rfrederick on PROD1PC67 with HEARING
11 

Secretary determines that insect or disease poses an imminent 

threat of loss or damage to those lands. (10 minutes) 

PART A 

TEXT OF AMENDMENTS TO BE CONSIDERED AS ADOPTED

After section 4004 of the bill, insert the following (and make such 

technical and conforming changes as may be appropriate): 

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.—


rfrederick on PROD1PC67 with HEARING
12 

‘‘(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. 


rfrederick on PROD1PC67 with HEARING
13 

‘‘(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.’’. 

After section 4006 of the bill, insert the following (and make such 

technical and conforming changes as may be appropriate): 

SEC. 4014. 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)’’. 

Strike section 4021 of the bill, insert the following (and make 

such technical and conforming changes as may be appropriate): 

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.’’. 

[ENERGY TITLE] 

Section 9002 of the bill is amended by adding at the end the following new paragraph: 

(3) by striking subsection (k)(2)(A) and inserting the following: 

‘‘(A) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use $2,000,000 for each of 

fiscal years 2008 through 2012 for bio-product testing and 

support ongoing operations of the Designation Program, 

the Voluntary Labeling Program, procurement program 

models, procurement research, promotion, education, and 

awareness of the BioPreferred Program.’’. 

Section 9003(3) of the bill is amended by striking ‘‘subsections (d) 

through (h) as subsections (e) through (i), respectively’’ and insertVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
14 

ing ‘‘subsection (h) as subsection (j) and subsections (d) through (g) 

as subsections (e) through (h), respectively,’’. Section 9003 of the bill is amended by striking paragraph (5) and 

adding at the end the following new paragraphs: 

(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 section 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 F. R. 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.’’. Section 9005(5) of the bill is amended by striking ‘‘redesignating 

subsections (e) and (f) as subsections (g) and (h), respectively’’ and 

inserting ‘‘redesignating subsection (e) as subsection (g) and striking subsection (f)’’. 

Section 9005 of the bill is amended by adding at the end the following new paragraph: 

(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.’’. Section 9007 of the bill is amended by adding at the end the following new paragraph: 

(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 


rfrederick on PROD1PC67 with HEARING
15 

‘‘(5) $350,000,000 for fiscal year 2012.’’. 

Section 9008(j) of the Farm Security and Rural Investment Act 

of 2002, as added by section 9006 of the bill, is amended to read 

as follows: 

‘‘(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.’’. 

At the end of title IX of the bill, add the following new sections: 

SEC. 9018. 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. 9019. 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)). 


rfrederick on PROD1PC67 with HEARING
16 

‘‘(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—


rfrederick on PROD1PC67 with HEARING
17 

‘‘(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 


rfrederick on PROD1PC67 with HEARING
18 

‘‘(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—


rfrederick on PROD1PC67 with HEARING
19 

‘‘(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 paraVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
20 

graph (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 thirdparties. ‘‘(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 


rfrederick on PROD1PC67 with HEARING
21 

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; 


rfrederick on PROD1PC67 with HEARING
22 

‘‘(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 AG- RICULTURAL 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—


rfrederick on PROD1PC67 with HEARING
23 

‘‘(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. 9020. 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.’’. 

At the end of the bill, add the following: 


rfrederick on PROD1PC67 with HEARING
24 

TITLE XII—PREVENTION OF TAX TREATY EXPLOITATION TO EVADE UNITED 

STATES TAXATION 

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 


rfrederick on PROD1PC67 with HEARING
25 

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. 

At the end of title XI, add the following new section: 

SEC. 1331l. 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.’’. 

[COMMODITY TITLE] 

In section 1103(f)(3), strike subparagraph (B) and insert the following new subparagraph: 

(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. 


rfrederick on PROD1PC67 with HEARING
26 

In section 1104(h)(3), strike subparagraph (B) and insert the following new subparagraph: 

(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. 

At the end of section 1407, add the following new subsection: 

(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.’’. 

Page 116, line 25, strike ‘‘16’’ and insert ‘‘18’’. 

Page 117, line 19, strike ‘‘(2)(E)’’ and insert ‘‘(2)(C)’’. 

Page 117, line 24, strike ‘‘institution’’ and ‘‘institutions’’. 

Page 150, line 18, strike ‘‘2012’’ and insert ‘‘2011’’. 

[CONSERVATION TITLE] 

Page 157, beginning line 22, strike subparagraph (C) relating to 

annual survey funding. 

In section 2101, add at the end the following new subsection: 

(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.’’. In section 2102(e), strike paragraph (3) and insert the following 

new paragraph: 

(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 

Page 194, line 10, strike ‘‘or’’. 

Page 194, line 11, strike the period and insert ‘‘; or’’. 


rfrederick on PROD1PC67 with HEARING
27 

Page 194, after line 11, insert the following new clause: ‘‘(iv) improve watershed health.’’. Page 206, after line 2, insert the following new subsection (and 

redesignate the subsequent subsection as subsection (e)): ‘‘(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.’’. Page 206, beginning line 24, strike paragraph (4). 

Page 209, line 17, insert after ‘‘the Everglades,’’ the following: ‘‘the Sacramento River watershed,’’. Page 219, line 23, strike ‘‘or organizational purpose’’. Page 220, line 2, strike ‘‘and technical ability’’. Page 220, beginning line 9, strike subparagraph (C). 

Page 221, beginning line 1, strike subparagraphs (F) and (G). 

Page 221, line 12, insert after ‘‘eligible entity,’’ the following: ‘‘other than a certified State,’’. Page 222, line 19, strike ‘‘preserve’’ and insert ‘‘enforce’’. Page 238, line 13, strike ‘‘$1,500,000,000’’ and insert ‘‘$1,250,000,000’’. Page 264, line 20, strike ‘‘section 501(c)(2)’’ and insert ‘‘section 

501(c)(3)’’. At the end of title II (page 272, after line 2), add the following 

new section: 

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. 

[TRADE TITLE] 

Page 274, strike line 1 and all that follows through line 4 and 

insert the following: 

(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.—


rfrederick on PROD1PC67 with HEARING
28 

‘‘(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’’. 

Page 275, line 14, insert ‘‘paragraph’’ before ‘‘(1)’’. 

Page 275, after line 14, insert the following new paragraph: 

‘‘(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.’’. 

Page 275, line 15, strike ‘‘(3)’’ and insert ‘‘(4)’’. 

Page 275, line 21, strike ‘‘(4)’’ and insert ‘‘(5)’’. 

Page 276, line 3, strike the closing quotation marks and the period at the end. 

Page 276, after line 3, insert the following: 

‘‘(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.’’. 

Page 276, after line 12, insert the following: 

(1) by striking ‘‘Funds’’ and inserting ‘‘(A) IN GENERAL.—

Funds’’; 

Page 276, line 13, strike ‘‘(1)’’ and insert ‘‘(2)’’. 

Page 276, line 14, strike ‘‘and’’. 

Page 276, line 15, strike ‘‘(2)’’ and insert ‘‘(3)’’. 

Page 276, line 16, strike the period at the end and insert ‘‘; and’’. 

Page 276, after line 16, insert the following: 

(4) by adding at the end the following new subparagraph: 

‘‘(B) ADDITIONAL PREPOSITIONING SITES.—


rfrederick on PROD1PC67 with HEARING
29 

‘‘(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.’’. 

Page 277, after line 16, insert the following: 

(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 nonemergency 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.’’. 

Page 277, strike line 17 and all that follows through line 20 and 

insert the following: 

(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’’. Page 277, line 21, strike ‘‘(m)’’ and insert ‘‘(n)’’. Page 278, line 19, strike ‘‘(n)’’ and insert ‘‘(o)’’. 


rfrederick on PROD1PC67 with HEARING
30 

Page 279, after line 10, insert the following new clause (and redesignate the subsequent clause as clause (iii)): 

(ii) in paragraph (1), by striking ‘‘3-year period’’ and 

inserting ‘‘6-month period’’. 

Page 281, beginning line 9, strike subsection (c). 

Page 284, strike line 6 and all that follows through line 10 and 

insert the following: 

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’’. 

Page 285, line 14, strike ‘‘International Relations’’ and insert 

‘‘Foreign Affairs’’. 

Page 287, after line 7, insert the following: 

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. 

[NUTRITION TITLE] 


rfrederick on PROD1PC67 with HEARING
31 

Page 301, beginning on line 18, strike ‘‘and Nutrition Act’’ and 

insert ‘‘Stamp’’. Page 303, line 14, insert ‘‘a’’ after ‘‘in the event of’’. Page 306, line 10, insert ‘‘(or fails to address)’’ after ‘‘addresses’’. Page 310, line 25, strike ‘‘after paragraph’’ and insert ‘‘inserting 

after subsection’’. Page 312, line 12, strike ‘‘redeem,’’ and insert ‘‘redeem’’. Page 319, line 17, strike ‘‘verification of’’ and insert ‘‘verification 

or’’. 

Page 323, strike lines 4 and 5, and insert the following: 

(ii) by striking ‘‘finding of a violation and the’’ and 

inserting ‘‘finding of a violation,’’. Page 323, line 22, strike ‘‘years.’’ and insert ‘‘years’’. Page 324, line 21, strike lines 19 through 21, and insert the following: ‘‘(c) TREATMENT OF DISQUALIFICATION AND PENALTY DETERMINA- TIONS.—The action’’. Page 325, line 24, insert ‘‘is’’ before ‘‘not upheld’’. Page 330, line 19, strike ‘‘low income’’ and insert ‘‘low-income’’. Page 332, line 14, insert ‘‘and particularly children, as well as 

the feasibility of replicating these programs in other locations’’ after ‘‘ persons’’. Page 333, after line 22, insert the following: ‘‘(iv) strategies to improve the nutritional value of 

food served during school hours and during afterschool hours; ‘‘(v) innovative ways to provide significant improvement to the health and wellness of children;’’. Page 333, line 23, strike ‘‘(iv)’’ and insert ‘‘(vi)’’. Page 336, line 16, strike ‘‘paragraph’’ and insert ‘‘subsection’’. Page 340, line 16, strike ‘‘Action’’ and insert ‘‘Act’’. Page 345, line 22, strike ‘‘(a) AMENDMENT.—’’. [CREDIT TITLE] 

In section 304(c)(2)(B) of the Consolidated Farm and Rural Development Act, as proposed to be added by section 5001 of the bill, 

strike ‘‘$1,000,000’’ and insert ‘‘$1,000,000,000’’. In section 310F(b)(1)(C) of the Consolidated Farm and Rural Development Act, as proposed to be added by section 5004 of the bill, 

strike ‘‘be at’’ and insert ‘‘be, at’’. At the end of subtitle A of title V, insert the following: 

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.’’. 

In section 1.9(4) of the Farm Credit Act of 1971, as proposed to 

be added by section 5031(a)(1)(C) of the bill, strike ‘‘under this title 

to a person’’ and insert ‘‘to a person made eligible under this paragraph if the person is’’. 

In section 2.4(a)(4) of the Farm Credit Act of 1971, as proposed 

to be added by section 5031(b)(3) of the bill, strike ‘‘under this title 


rfrederick on PROD1PC67 with HEARING
32 

to a person’’ and insert ‘‘to a person made eligible under this paragraph if the person is’’. Strike section 5040. 

[RURAL DEVELOPMENT TITLE] 

In section 6009(a)(3), strike ‘‘subparagraphs (D) and (F)’’ and insert ‘‘subparagraph (D)’’, and strike ‘‘and’’ after the semicolon. 

In section 6009(a)(4), strike ‘‘adding at the end’’ and insert ‘‘inserting after subparagraph (D) (as so redesignated)’’, and strike the 

period after the subparagraph (E) proposed to be added and insert 

‘‘; and’’. In subparagraph (E) of section 310B(e)(5) of the Consolidated 

Farm and Rural Development Act, as proposed to be added by section 6009(a)(4) of the bill, strike the period and insert ‘‘; and’’. At the end of section 6009(a), insert the following: 

(5) in subparagraph (F), by striking ‘‘greater than’’ the 1st 

place it appears. 

In section 310B(i)(2) of the Consolidated Farm and Rural Development Act, as proposed to be added by section 6011 of the bill, 

strike ‘‘the’’ after ‘‘help’’. In section 601(c)(3)(A)(ii) of the Rural Electrification Act of 1936, 

as proposed to be added by section 6023(b)(2) of the bill, strike 

‘‘services’’ and insert ‘‘service’’. In section 601(l)(4)(A) of the Rural Electrification Act of 1936, as 

proposed to be added by section 6023(i) of the bill, strike ‘‘(b)’’ each 

place it appears and insert ‘‘(d)’’. [RESEARCH TITLE] 

Page 456, line 10, strike ‘‘(c)’’ and insert ‘‘(e)’’. Page 456, lines 14 and 15, strike ‘‘or otherwise administered’’. Page 456, lines 17 and 18, strike ‘‘except as provided under subsection (a)(14)’’. Page 458, line 7, insert ‘‘and universities’’ after ‘‘colleges’’. Page 459, line 2, insert ‘‘AND UNIVERSITY’’ before the period. 

Page 459, line 3, insert ‘‘and university’’ before the quotation 

marks. 

Page 459, line 4, strike ‘‘a’’ and insert ‘‘an’’. Page 459, line 5, strike ‘‘as defined’’ and all that follows through 

line 7 and insert ‘‘; and’’. Page 459, strike lines 8 through 10, and insert the following: 

(b) offers associate, bachelor’s, or other accredited degree 

programs in agricultural related fields, as determined by 

the Secretary. 

Page 470, lines 9 and 10, strike ‘‘(8) and (12)’’ and insert ‘‘(7) and 

(11)’’. Page 474, line 17, insert ‘‘for Research, Education, and Economics’’ after ‘‘Secretary’’. Page 477, line 21, insert ‘‘, except that section 401(b)(3) of such 

Act shall not be repealed and shall remain in effect’’ before the period. 

Page 477, line 24, strike ‘‘(c)’’ and insert ‘‘(d)’’. Page 495, line 10, insert ‘‘to’’ before ‘‘acquire’’. 

Page 497, line 10, strike ‘‘as defined’’ and all that follows through 

line 12, and insert ‘‘; and’’. 

Page 497, line 15, insert ‘‘, as determined by the Secretary’’ before the period. 

Page 498, line 17, strike ‘‘of Agriculture’’. 


rfrederick on PROD1PC67 with HEARING
33 

Page 499, lines 13 and 14, strike ‘‘of the Treasury’’. 

Page 500, line 7, strike ‘‘section’’ and insert ‘‘paragraph’’. 

Page 501, line 24, strike ‘‘of Agriculture’’. 

Page 502, line 4, strike ‘‘of Agriculture’’. 

Page 502, line 12, insert ‘‘EXTENSION’’ after ‘‘(b)’’. 

Page 502, line 18, strike ‘‘section 4’’ and insert ‘‘subparagraph 

(D)’’. 

Page 504, line 3, insert ‘‘, as defined in section 1456 of the National Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3289)’’ after ‘‘universities’’. 

Page 504, line 7, insert ‘‘, as defined in section 1456 of the National Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3289)’’ after ‘‘universities’’. 

Page 504, line 11, insert ‘‘, as defined in section 1456 of the National Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3289)’’ after ‘‘universities’’. 

Page 506, line 1, strike ‘‘RESEARCH FACILITIES’’ and insert 

‘‘ASSISTANCE PROGRAMS’’. 

Page 507, after line 6, insert the following new sections: 

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 farmlevel perspective; and 

‘‘(B) produce and disseminate an annual review of the 

economic state of the specialty crop industry nationally, regionally, and by-state. 


rfrederick on PROD1PC67 with HEARING
34 

‘‘(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.’’. 

Page 521, line 12, insert ‘‘section 103 of the Agricultural Research, Extension, and Education Reform Act of 1998’’ after ‘‘with’’. 

Page 522, line 19, insert ‘‘note’’ after ‘‘1621’’. 

Page 523, line 13, strike ‘‘and’’. 

Page 523, after line 14, insert the following: 

(G) policy and marketing; and 

(H) specialty crop pollination; 

Page 531, line 12, strike ‘‘and’’. 

Page 531, line 14, strike the period and insert ‘‘; and’’. 

Page 531, after line 14, insert the following: 

(3) in subsection (c), by striking ‘‘such sums may be used to 

pay’’ and all that follows through ‘‘work.’’. 

Page 531, strike lines 15 through 25. 

Page 533, strike ‘‘1444 and’’. 

Page 541, strike lines 11 through 17. 

[FORESTRY TITLE] 

Page 548, beginning line 4, strike subparagraph (E). 

Page 549, beginning line 1, strike clause (viii) and insert the following new clause: 

‘‘(viii) A representative from a State Technical Committee established under section 1261 of the Food Security Act of 1985 (16 U.S.C. 3861).’’. 

Page 549, line 24, strike ‘‘sections 8005 and 8006’’ and insert 

‘‘sections 8006 and 8007’’. 

Page 551, line 14, strike ‘‘three’’ and insert ‘‘3’’. 

Page 553, line 12, strike ‘‘$17,000,000’’ and insert ‘‘$10,000,000’’. 

Page 557, after line 2, insert the following new subsection (and 

redesignate the subsequent subsection as subsection (d)): 

(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)). 

[ENERGY TITLE] 

Page 564, after line 19 insert the following new paragraph: 

(5) 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.’’. 

Page 597, after line 25 insert the following new paragraph: 

(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.’’. 


rfrederick on PROD1PC67 with HEARING
35 

In section 9002, strike subsection (d) and insert the following 

new subsection: 

(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.’’. 

In section 9002(f), strike paragraph (3). 

Page 598, line 4, strike ‘‘Section’’ and insert: 

(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 

Strike section 9014. 

[HORTICULTURE TITLE] 

Section 10102 is amended by adding at the end the following new 

subsection: 

(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’’. 

In section 209(e)(2) of the Agricultural Marketing Act of 1946, as 

proposed to be added by section 10108 of the bill, strike ‘‘authorized’’ and insert ‘‘authorize’’. 

In section 10201(j), strike ‘‘fo’’ and insert ‘‘of’’. 

In section 7407(b) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 5925c(b)), as amended by section 10302 of the 

bill, strike ‘‘of funds of the Commodity’’ and insert ‘‘of the funds of 

the Commodity’’. 

In the heading of section 10404, strike ‘‘FARMERS’ MARKET 

PROMOTION PROGRAM’’ and insert ‘‘FARMER MARKETING 

ASSISTANCE PROGRAM’’. 

Section 6(f)(1) of the Farmer-to-Consumer Direct Marketing Act 

of 1976, as added by section 10404 of the bill, is amended by striking ‘‘Secretary of Agriculture use’’ and inserting ‘‘Secretary of Agriculture shall use’’. 

Section 6(f)(1)(A) of the Farmer-to-Consumer Direct Marketing 

Act of 1976, as added by section 10404 of the bill, is amended by 

striking ‘‘fiscals year’’ and inserting ‘‘fiscal years’’. 

At the end of subtitle E of title X add the following new section: 


rfrederick on PROD1PC67 with HEARING
36 

SEC. ll. 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 coordiVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
37 

nate, 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; 


rfrederick on PROD1PC67 with HEARING
38 

(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). 

Strike section 10401. 

[MISCELLANEOUS TITLE] 

Strike section 11105. 

Page 683, line 23, strike ‘‘production’’ and insert ‘‘production.’’. 

Page 684, strike line 5 through page 685, line 9 and insert the 

following: 

‘‘(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.’’. 

Page 685, line 20: strike ‘‘that’’ and insert ‘‘than’’. 

At the end of subtitle A of title XI (page 687, after line 19), add 

the following new sections: 


rfrederick on PROD1PC67 with HEARING
39 

SEC. 11013. 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 


rfrederick on PROD1PC67 with HEARING
40 

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.—


rfrederick on PROD1PC67 with HEARING
41 

(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; 


rfrederick on PROD1PC67 with HEARING
42 

(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. 


rfrederick on PROD1PC67 with HEARING
43 

(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.—


rfrederick on PROD1PC67 with HEARING
44 

(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: 


rfrederick on PROD1PC67 with HEARING
45 

(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 


rfrederick on PROD1PC67 with HEARING
46 

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. 


rfrederick on PROD1PC67 with HEARING
47 

(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. 


rfrederick on PROD1PC67 with HEARING
48 

(2) FUND.—There are authorized to be appropriated to the 

Fund such sums as are necessary to carry out subsection (i). 

SEC. 11014. 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 


rfrederick on PROD1PC67 with HEARING
49 

‘‘(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.’’. 

Page 715, strike lines 13 through 25 and insert the following: 

‘‘(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.’’. Page 718, strike lines 16 through 22 and insert the following: 


rfrederick on PROD1PC67 with HEARING
50 

‘‘(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 

Page 720, line 22 strike ‘‘; and’’ and insert ‘‘.’’. 

Page 720, strike line 23 and all that follows through page 721, 

line 9. 

Page 724, line 11, strike ‘‘farmers and rancher’’ and insert ‘‘farmers and ranchers’’. 

Page 725, beginning line 8, strike clause (ii) regarding matching 

funds. 

Page 727, beginning line 8, strike subsection (b). 

Page 733, line 22, strike ‘‘and’’. 

Page 734, line 2, strike the period and insert ‘‘; and’’. 

Page 734, after line 2, insert the following: 

(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. 

Page 734, line 23, strike ‘‘and’’. 

Page 735, line 2, strike the period and insert ‘‘; and’’. 

Page 735, beginning line 2, insert the following new paragraph: 

(7) review ongoing efforts toward outreach in the agencies 

and programs of the Department. 

Redesignate sections 11308, 11309, and 11310 as sections 11307, 

11308, and 11309, respectively. 

Page 739, line 24, strike ‘‘teach’’ and insert ‘‘each’’. 

At the end of title XI, add the following new sections: 

SEC. 11310. 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 majorchain grocery stores; and 

(2) develop recommendations for eliminating food deserts. 


rfrederick on PROD1PC67 with HEARING
51 

SEC. 11311. 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. 


rfrederick on PROD1PC67 with HEARING
52 

(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 Corpora- tion, 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. 11312. 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. 

Page 189, line 8, strike ‘‘1,000,000’’ and insert ‘‘1,340,000’’. Strike section 3005 (relating to McGovern-Dole International 

Food for Education and Child Nutrition Program) and insert the 

following: 

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; 


rfrederick on PROD1PC67 with HEARING
53 

‘‘(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’’. 

Strike section 11001. 

At the end of subtitle A of title XI add the following new section: 

SEC. 1101l. 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. 

At the end of title XI add the following new section: 

SEC. 113ll. 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. 

At the end of the bill add the following new title: 


rfrederick on PROD1PC67 with HEARING
54 

TITLE XII—ADDITIONAL OFFSETS 

Subtitle A—Conservation of Resources 

Fees and Repeal of Royalty Relief 

SEC. 12001. 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. 12002. 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 


rfrederick on PROD1PC67 with HEARING
55 

(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. 12003. 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. 12011. 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. 

Page 667, line 26, strike ‘‘2’’ and insert ‘‘2.9’’. 

PART B 

TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KIND OF

WISCONSIN, OR HIS DESIGNEE, DEBATABLE FOR 40 MINUTES

[COMMODITY TITLE] 

In section 1102, strike subsection (b) and insert the following 

new subsection: 

(b) PAYMENT RATE.—

(1) 2008 CROP YEAR.—The payment rates used to make direct 

payments with respect to covered commodities for the 2008 

crop year are as follows: 

(A) Wheat, $0.52 per bushel. 

(B) Corn, $0.14 per bushel. 

(C) Grain sorghum, $0.25 per bushel. 

(D) Barley, $0.17 per bushel. 

(E) Oats, $0.02 per bushel. 


rfrederick on PROD1PC67 with HEARING
56 

(F) Upland cotton, $0.05 per pound. 

(G) Rice, $1.65 per hundredweight. 

(H) Soybeans, $0.22 per bushel. 

(I) Other oilseeds, $0.01 per pound. 

(J) Peanuts, $25.20 per ton. 

(2) 2009 CROP YEAR.—The payment rates used to make direct 

payments with respect to covered commodities for the 2009 

crop year are as follows: (A) Wheat, $0.52 per bushel. 

(B) Corn, $0.13 per bushel. 

(C) Grain sorghum, $0.23 per bushel. 

(D) Barley, $0.16 per bushel. 

(E) Oats, $0.02 per bushel. 

(F) Upland cotton, $0.04 per pound. 

(G) Rice, $1.53 per hundredweight. 

(H) Soybeans, $0.20 per bushel. 

(I) Other oilseeds, $0.01 per pound. 

(J) Peanuts, $23.40 per ton. 

(3) 2010 CROP YEAR.—The payment rates used to make direct 

payments with respect to covered commodities for the 2010 

crop year are as follows: 

(A) Wheat, $0.52 per bushel. 

(B) Corn, $0.11 per bushel. 

(C) Grain sorghum, $0.21 per bushel. 

(D) Barley, $0.14 per bushel. 

(E) Oats, $0.02 per bushel. 

(F) Upland cotton, $0.04 per pound. 

(G) Rice, $1.41 per hundredweight. 

(H) Soybeans, $0.18 per bushel. 

(I) Other oilseeds, $0.01 per pound. 

(J) Peanuts, $21.60 per ton. 

(4) 2011 CROP YEAR.—The payment rates used to make direct 

payments with respect to covered commodities for the 2011 

crop year are as follows: (A) Wheat, $0.49 per bushel. 

(B) Corn, $0.10 per bushel. 

(C) Grain sorghum, $0.35 per bushel. 

(D) Barley, $0.13 per bushel. 

(E) Oats, $0.02 per bushel. 

(F) Upland cotton, $0.04 per pound. 

(G) Rice, $1.29 per hundredweight. 

(H) Soybeans, $0.15 per bushel. 

(I) Other oilseeds, $0.01 per pound. 

(J) Peanuts, $19.80 per ton. 

(5) 2012 CROP YEAR.—The payment rates used to make direct 

payments with respect to covered commodities for the 2012 

crop year are as follows: 

(A) Wheat, $0.47 per bushel. 

(B) Corn, $0.08 per bushel. 

(C) Grain sorghum, $0.18 per bushel. 

(D) Barley, $0.12 per bushel. 

(E) Oats, $0.02 per bushel. 

(F) Upland cotton, $0.03 per pound. 

(G) Rice, $1.18 per hundredweight. 

(H) Soybeans, $0.13 per bushel. 


rfrederick on PROD1PC67 with HEARING
57 

(I) Other oilseeds, $0.01 per pound. 

(J) Peanuts, $18.00 per ton. 

(6) LIMITED RESOURCE FARMERS.—Notwithstanding paragraphs (2), (3), (4), and (5), the payment rates specified in 

paragraph (1) shall be used for each of the 2008 through 2012 

crop years in the case of a limited resource farmer, as defined 

by the Secretary. 

Section 1102 is amended by adding at the end the following: 

‘‘(e) CONSERVATION ENHANCED PAYMENT OPTION.—

‘‘(1) IN GENERAL.—All producers on a farm that meet the eligibility requirements of paragraph (2) may, in lieu of direct 

payments otherwise provided in this section, make a one time 

election to receive enhanced direct payments through crop year 

2012 in accordance with this subsection. 

‘‘(2) ELIGIBILITY.—To be eligible to obtain an enhanced direct 

payment for a covered commodity for a crop year under this 

subsection, the producers on a farm shall enter into a contract 

with the secretary under which the producers of the farm 

agree, for each crop year—

‘‘(A) to forgo all counter-cyclical payments under this 

subtitle and all marketing assistance loans and all loan deficiency payments under subtitle B for the farm subject to 

a contract under this subsection; 

‘‘(B) to carry out conservation practices on the farm that 

are at least equivalent to the requirements for land enrolled under the a conservation security contract entered 

into under section 1238A of the Food Security Act of 1985 

(16 U.S.C. 3838a); and 

‘‘(C) to meet such other requirements as are established 

by the Secretary. 

‘‘(3) AMOUNT.—The amount of an enhanced direct payment 

to be paid to the producers on a farm for a covered commodity 

for a crop year that enter into a contract with the secretary 

under this subsection shall be equal to the product obtained by 

multiplying—

‘‘(A) the amount of the direct payment the producers on 

a farm would otherwise be eligible to receive under subsection (c); and 

‘‘(B) 110 

‘‘(4) ONE TIME ENROLLMENT.—Producers on a farm shall have 

one period of time (as determined by the Secretary) in which 

to enter into a contract for a conservation enhanced payment. ‘‘(5) DE MINIMIS PAYMENTS.—A payment under this section that is less than $25.00 in amount shall not be tendered to a 

producer on a farm’’. 

Section 1103 is amended to read as follows: 

SEC. 1103. COUNTER-CYCLICAL PAYMENTS. 

Section 1103 of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 7913) is amended to read as follows: 

‘‘SEC. 1103. COUNTER-CYCLICAL PAYMENTS. 

‘‘(a) PAYMENT REQUIRED.—The Secretary shall make counter-cyclical payments to producers on farms for which payment yields 

and base acres are established with respect to a covered commodity, if the Secretary determines that the national actual revVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00057 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
58 

enue per acre for the covered commodity (except for other oilseeds) 

is less than the national target revenue per acre for the covered 

commodity, as determined in this section. ‘‘(b) NATIONAL ACTUAL REVENUE PER ACRE.—For each covered 

commodity (except for other oilseeds) for the applicable year, 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 

during the 12-month marketing year established by the Secretary; or ‘‘(2) the loan rate. ‘‘(c) NATIONAL TARGET REVENUE PER ACRE.—The national target 

revenue per acre shall be, on a per acre basis, as follows: 

‘‘(1) Wheat, $140.42. 

‘‘(2) Corn, $344.12. 

‘‘(3) Grain Sorghum, $131.28. 

‘‘(4) Barley, $123.13. 

‘‘(5) Oats, $88.36. 

‘‘(6) Upland cotton, $516.86. 

‘‘(7) Rice, $548.06. 

‘‘(8) Soybeans, $219.58 . 

‘‘(9) Peanuts, $683.83. 

‘‘(d) NATIONAL PAYMENT YIELD.—The national payment yield 

shall be as follows: ‘‘(1) Wheat, 36.1 bushels per acre. 

‘‘(2) Corn, 114.2 bushels per acre. 

‘‘(3) Grain Sorghum, 58.1 bushels per acre. 

‘‘(4) Barley, 48.7 bushels per acre. 

‘‘(5) Oats, 49.8 bushels per acre. 

‘‘(6) Upland cotton, 636 pounds per acre. 

‘‘(7) Rice, 51.24 hundredweight per acre. 

‘‘(8) Soybeans, 34.1 bushels per acre. 

‘‘(9) Peanuts, 1.495 tons per acre. 

‘‘(e) NATIONAL PAYMENT RATE.—The national payment rate used 

to make 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. ‘‘(f) PAYMENT AMOUNT.—If 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. ‘‘(g) TIME FOR PAYMENTS.— ‘‘(1) GENERAL RULE.—If the Secretary determines that 

counter-cyclical payments are required to be made under this 

section for the crop of a covered commodity, the Secretary shall 


rfrederick on PROD1PC67 with HEARING
59 

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.—When the Secretary 

makes partial payments available under paragraph (2) for a 

covered commodity— ‘‘(A) the first partial payment for the crop year shall be 

made not earlier than October 1, and, to the maximum extent practicable, not later than October 31, of the calendar 

year in which the crop of the covered commodity is harvested; ‘‘(B) the second partial payment shall be made not earlier than February 1 of the next calendar year; and ‘‘(C) the final partial payment shall be made as soon as 

practicable after the end of the 12-month marketing year 

for the covered commodity. ‘‘(4) AMOUNT OF PARTIAL PAYMENTS.— ‘‘(A) FIRST PARTIAL PAYMENT.—The first partial payment 

under paragraph (3) to the producers on a farm may not 

exceed 35 percent of the projected counter-cyclical payment 

for the covered commodity for the crop year, as determined 

by the Secretary. ‘‘(B) SECOND PARTIAL PAYMENT.—The second partial payment under paragraph (3) for a covered commodity for a 

crop year may not exceed the difference between—

‘‘(i) 70 percent of the projected counter-cyclical payment (including any revision thereof) for the crop of 

the covered commodity; and ‘‘(ii) the amount of the payment made under subparagraph (A). ‘‘(C) FINAL PAYMENT.—The final payment for the crop 

year 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 payments made to the 

producers on a farm under subparagraphs (A) and (B) 

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 counter-cyclical payment to be 

made for the covered commodity for that crop year. ‘‘(h) DE MINIMIS PAYMENTS.—A payment under this section that is less than $25.00 in amount shall not be tendered to a producer 

on a farm.’’. In section 1105(a)(1)(D) insert ‘‘, residential’’ after ‘‘commercial’’ and after the period at the end insert the following: ‘‘In the case 


rfrederick on PROD1PC67 with HEARING
60 

of a parcel of land that at anytime subsequent to the enactment of 

the Federal Agriculture Improvement and Reform Act of 1996 is 

subdivided, transferred to a new owner and used for the construction of a new residence, the base acres for covered commodities for 

the farm shall be eliminated, unless the owner of such residence 

receives at least $10,000 of gross income from farming or ranching 

and the owner of such residence receives gross income from farming or ranching exceeding at least half of their adjusted gross income.’’ . Section 1201(a)(1) is amended by striking ‘‘For each of’’ and all 

that follows through ‘‘loan commodity, the’’ and inserting ‘‘The’’ Section 1201(b) is amended to read as follows: 

(b) ELIGIBLE PRODUCTION.— (1) IN GENERAL.—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. In addition, such producers must have beneficial interest, as determined under paragraph (2), in the commodity at the time the 

commodity is tendered as collateral for such loan. 

(2) BENEFICIAL INTEREST.—In order to have beneficial interest in a commodity, a producer shall: 

(A) be the producer of the commodity; 

(B) possess and maintain ownership and control of the 

commodity; 

(C) not have received any payment from any party with 

respect to the commodity; and 

(D) satisfy other criteria, as determined by the Secretary. 

(3) INELIGIBLE PRODUCTION.—A crop of a loan commodity 

shall be ineligible for a marketing assistance loan if the crop 

was produced on land of a farm that has been subject to a land 

transaction covered under section 1101(c). 

Section 1201(e) is amended to read as follows: 

(e) ADJUSTMENTS OF LOANS.— (1) ADJUSTMENT AUTHORITY.—The Secretary may make appropriate adjustments in the loan rates for any commodity for 

differences in grade, type, quality, location, and other factors. 

(2) MANNER OF ADJUSTMENT.—The adjustments under the 

authority of this section shall, to the maximum extent practicable, be made in such manner that the national average loan 

rate for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined as provided in this title. 

(f) HANDLING AND STORAGE CHARGES.—All payments for storage, 

handling or other charges associated with a loan commodity subject 

to a marketing assistance loan or loan deficiency payment under 

this subtitle are the responsibility of the producer and shall not be 

paid by the Secretary. 

Section 1202 is amended to read as follows: 

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 

LOANS. 

(a) IN GENERAL.—Except as provided in subsection (b), the loan 

rate for each crop of a loan commodity shall be equal to the amount 

determined by multiplying: 

(1) .85; and 


rfrederick on PROD1PC67 with HEARING
61 

(2) the average of the national average market price received 

by producers during the five preceding marketing years, excluding the highest and lowest prices determined for such 

years, as determined by the Secretary. 

(b) LOAN RATES.—The loan rate determined under (a) shall not 

exceed, in the case of— (1) wheat, $2.58 per bushel; 

(2) corn, $1.89 per bushel; 

(3) grain sorghum, $1.89 per bushel; 

(4) barley, $1.70 per bushel; 

(5) oats, $1.21 per bushel; 

(6) upland cotton, $0.5192 per pound; 

(7) extra long staple cotton, $0.7965 per pound; 

(8) rice, $6.50 per hundredweight; 

(9) soybeans, $4.92 per bushel; 

(10) other oilseeds, $0.087 per pound; 

(11) graded wool, $1.00 per pound; 

(12) nongraded wool, $0.40 per pound; 

(13) mohair, $4.20 per pound; 

(14) honey, $0.60 per pound; 

(15) dry peas, $6.22 per hundredweight; 

(16) lentils, $11.72 per hundredweight; 

(17) small chickpeas, $7.43 per hundredweight; and 

(18) peanuts, $350.00 per ton. 

Section 1204(a) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 7934) is amended to read as follows: 

(a) GENERAL RULE.— (1) REPAYMENT OF COMMODITY LOANS.—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, rice, extra long staple cotton, confectionary and 

each other kind of sunflower seed (other than oil sunflower 

seed)) at a rate that is the lesser of— (A) 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 

(B) a rate that the Secretary determines will—

(i) minimize potential loan forfeitures; 

(ii) minimize the accumulation of stocks of the commodity by the Federal Government; 

(iii) minimize the cost incurred by the Federal Government in storing the commodity; 

(iv) allow the commodity produced in the United 

States to be marketed freely and competitively, both 

domestically and internationally; and 

(v) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries. 

(2) RATE ADJUSTMENTS.— (A) IN GENERAL.—Subject to subparagraph (B) and except as provided in subsection (b), repayment rates established under this section shall be adjusted by the Secretary no more than once every month for all loan commodities. 


rfrederick on PROD1PC67 with HEARING
62 

(B) MONTHLY REPAYMENT RATE.—In establishing the 

monthly repayment rates with respect to wheat, corn, 

grain sorghum, barley, oats and soybeans, the rates shall 

be established by using the rates determined for five days 

in the previous month as determined in regulations issued 

by the Secretary, which shall— (i) exclude the rates for days that represent the 

highest and lowest rates for the 5 day period; and 

(ii) use the average of the three remaining rates to 

establish the monthly repayment rate. 

(3) DATE FOR DETERMINING REPAYMENT RATE.—With respect 

to the monthly repayment rates established under paragraph 

(2) and subsection (b) and (c), the rate shall be— (A) in the case of a producer who, as determined by the 

Secretary, loses beneficial interest immediately upon repayment of the loan, the monthly repayment rate determined under paragraph (2) and subsection (b) and (c) that 

is in effect on the date beneficial interest is lost; and 

(B) in the case of other producers who did not lose beneficial interest upon repayment of the loan, the repayment 

rate in effect on the earlier of: 

(i) the month in which the loan matures; or 

(ii) the last month of the marketing year established 

by the Secretary for the commodity. 

(4) REPAYMENT OF CONFECTIONARY AND OTHER KINDS OF SUN- FLOWER SEEDS LOANS.—The Secretary shall permit the producers on a farm to repay a marketing assistance loan under 

section 1201 for confectionary and each other kind of sunflower 

seed (other than oil sunflower seed) at a rate that is the lesser 

of— (A) 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 

(B) the repayment rate established for oil sunflower 

seed. 

(5) QUALITY GRADES FOR DRY PEAS, LENTILS, AND SMALL

CHICKPEAS.—The loan repayment rates for dry peas, lentils, 

and small chickpeas shall be based on the quality grades for 

the applicable commodity. 

Section 1204(e) is amended to read as follows: 

(e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON.—During the period beginning on the date of the enactment of this Act through July 31, 2012, the prevailing world 

market price for upland cotton (adjusted to United States quality 

and location) established under subsection (d) shall be further adjusted if—

(1) the adjusted prevailing world market price for upland cotton is less than 115 percent of the loan rate for upland cotton 

established under section 1202, as determined by the Secretary; and 

(2) 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.I.F. Northern Europe (referred to in this section as the ‘‘Northern Europe price’’). 


rfrederick on PROD1PC67 with HEARING
63 

Section 1204 is amended by striking subsections (f) through (h). 

Section 1205(a) is amended by inserting after paragraph (1) the 

following new paragraph (and redesignating succeeding paragraphs 

accordingly): 

(2) BENEFICIAL INTEREST.—At the time producers request 

payments under this section, the producers must have beneficial interest, as defined in section 1201(b)(2), in the commodity for which such payment is requested. 

Section 1205(c) is amended to read as follows: 

(c) PAYMENT RATE.—

(1) LOAN COMMODITIES.—

(A) IN GENERAL.—With respect to all loan commodities 

except extra long staple cotton, the payment rate shall be 

determined as of the day the producer loses beneficial interest in the commodity. 

(B) FORMULA.—The payment rate under subparagraph 

(A) shall be the amount that equals the difference between—

(i) the loan rate established under section 1202 for 

the loan commodity; and 

(ii) the monthly repayment rate determined for the 

commodity under section 1204. 

(2) UNSHORN PELTS.—-In the case of unshorn pelts, the payment rate shall be the amount that equals the difference between—

(A) the loan rate established under section 1202 for 

ungraded wool: and 

(B) the rate at which ungraded wool may be redeemed 

under section 1204. 

(3) HAY, SILAGE, FEED AND SIMILAR USES.—

(A) IN GENERAL.—In the case of a commodity that would 

otherwise be eligible to be pledged as collateral for a marketing assistance loan at the time of harvest of the commodity, but cannot be pledged due to the normal commercial state of the commodity, the payment rate shall be the 

average of the monthly repayment rates established for 

the first three months of the marketing year of the commodity, as determined by the Secretary. 

(B) INCLUSIONS.—Commodities covered by subparagraph 

(A) shall be determined by the Secretary, and shall include 

hay, silage, cracked corn, and corn stored in a commingled 

manner by feedlots. 

In section 1206(d) strike ‘‘A 2002 through 2007 crop of’’ and inserting ‘‘A crop of’’. 

In section 1207 strike subsection (b) and redesignate subsection 

(c) as subsection (b). 

Section 1208 of Farm Security and Rural Investment Act of 2002 

(7 U.S.C. 7938) is amended 

(1) by striking the section; 

(2) by redesignating section 1209 as section 1208; 

(3) in section 1208 (as redesignated in paragraph (2)) (A) in 

subsection (a)(1) by striking ‘‘For each of the 2002 through 

2007 crops of’’ and inserting ‘‘For each crop of’’ (B) in subsection (b) by striking ‘‘For each of the 2002 through 2007 


rfrederick on PROD1PC67 with HEARING
64 

crops of’’ and inserting ‘‘For each crop of’’; and (C) by striking 

subsection (d). 

In subtitle C strike sections 1301, 1302, and 1303 and insert the 

following: 

SEC. 1301. SUGAR PROGRAM. 

Section 156(j) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(j)) is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 1302. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR. 

Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 

U.S.C. 1359bb(a)(1)) is amended in the matter preceding subparagraph (A) by striking ‘‘2007’’ and inserting ‘‘2012’’. Section 1409 is amended to read as follows: 

SEC. 1409. FEDERAL DAIRY COMMISSION. 

(a) ESTABLISHMENT.—The secretary of agriculture shall establish 

a commission to be known as the ‘‘federal dairy commission’’, in 

this section referred to as the ‘‘commission’’, which shall conduct a 

comprehensive review and evaluation of— (1) the current Federal and non-Federal milk marketing 

order systems; 

(2) the milk income loss contracting program; 

(3) the forward contracting program; 

(4) the 9.90 dairy price support system; and 

(5) programs in the European Union and other major dairy 

exporting countries that may have a trade distorting effect. 

(b) ELEMENT OF REVIEW AND EVALUATION.—As part of the review 

and evaluation under this section, the commission shall evaluate 

how well the programs accomplish the following goals, providing 

legislative and regulatory recommendations for achieving these 

goals 

(1) ensuring the competitiveness of diary products; 

(2) enhancing the competitiveness of American diary products in world markets; 

(3) increasing the responsiveness of dairy programs to market forces; 

(4) ensuring an adequate safety net for dairy farmers; 

(5) streamlining, simplifying, and expediting the administration of these programs; and 

(6) continuing to serve the interest of the public, diary processors, and diary farmers; 

(7) operating in a manner to minimize costs to taxpayers; 

(8) ensuring that we meet our trade obligations; and 

(9) ensuring the safety of our dairy supply. 

(c) MEMBERSHIP.—

(1) COMPOSITION.—The commission shall consist of 16 members and shall include the following representation: 

(A) Geographical diversity. 

(B) Diversity in size of operation. 

(C) At least one State with a Federal marketing order. 

(D) At least one State with a state marketing order. 

(E) At least one State with no marketing order. 

(F) At least two dairy producers. 

(G) At least two dairy processors. 

(H) At least one trade experts. 


rfrederick on PROD1PC67 with HEARING
65 

(I) At least one State official. 

(J) At least one Federal official. 

(K) At least one nongovernmental organization. 

(L) At least one economist. 

(M) At least one representative of a land grant university. 

(2) APPOINTMENTS.—Within 3 months of the date of enactment, commission members shall be appointed as follows: 

(A) Two members appointed by the Majority Leader of 

the Senate, in consultation with the Chair and ranking 

member of the Committee on Agriculture of the House of 

Representatives. 

(B) Two members appointed by the Speaker of the House 

of Representatives, in consultation with the Chair and 

ranking member of the Senate Committee on Agriculture, 

Nutrition and Forestry of the Senate. 

(C) Fourteen members appointed by the Secretary of Agriculture. 

(3) CHAIR.—The commission shall elect one of its members to 

serve as chairperson during the duration of the commission’s 

proceedings. 

(4) VACANCY.—Any vacancy occurring before the termination 

of the commission shall be filled in the same manner as the 

original appointment. 

(5) COMPENSATION.—Members of the commission shall serve 

without compensation, but shall be reimbursed by the Secretary from existing budgetary resources for necessary and reasonable expenses incurred in the performance of the duties of 

the commission. 

(d) REPORT.—Not later than three years after the date of establishment of the commission, the commission shall submit to Congress and the Secretary of Agriculture a report setting forth the results of the review and evaluation conducted under this section, including recommendations regarding legislative and regulatory options for accomplishing the goals under subsection (ll). The report findings shall reflect, to the greatest extent possible, a consensus opinion of the commission members, but shall include majority and minority findings and their supporters regarding those 

matters for which consensus was not reached. 

(e) ADVISORY NATURE.—The commission is wholly advisory in nature and bound by the requirements of the FACA. 

(f) NO EFFECT ON EXISTING PROGRAMS.—The Secretary shall not 

allow the existence of the commission to impede, delay, or otherwise affect any regulatory decisionmaking. 

(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 60 days after 

submission of the report under subparagraph (D), during which 

time it will remain available to answer question of Congress and 

the Secretary regarding the report. 


rfrederick on PROD1PC67 with HEARING
66 

Strike sections 1503 and 1504 and insert the following: 

SEC. 1503. PAYMENT LIMITATIONS. 

Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is 

amended—

(1) in subsection (a) by striking paragraphs (1) and (2) and 

inserting the following: 

‘‘(1) ENTITY.—

‘‘(A) IN GENERAL.—THE TERM ‘ENTITY’ MEANS.—

‘‘(i) an organization that (subject to the requirements of this section and section 1001A) is eligible to 

receive a payment under a provision of law referred to 

in subsection (b) or (c); 

‘‘(ii) a corporation, joint stock company, association, 

limited partnership, limited liability company, limited 

liability partnership, charitable organization, estate, 

irrevocable trust, a grantor of a revocable trust, or 

other similar entity (as determined by the Secretary); 

and 

‘‘(iii) an organization that is participating in a farming operation as a partner in a general partnership or 

as a participant in a joint venture. 

‘‘(B) EXCLUSION.—Except in section 1001F, the term ‘entity’ does not include a general partnership or joint venture. 

‘‘(C) ESTATES.—In defining the term entities as it will 

apply to estates, the Secretary shall ensure that fair and 

equitable treatment is given to estates and the beneficiaries thereof. 

‘‘(D) IRREVOCABLE TRUSTS.—In defining the term entities 

as it will apply to irrevocable trusts, the Secretary shall 

ensure that irrevocable trusts are legitimate entities and 

have not been created for the purpose of avoiding the payment limitation. 

‘‘(2) INDIVIDUAL.—The term ‘individual’ means—

‘‘(A) a natural person, and any minor child of the natural 

person (as determined by the Secretary), who, subject to 

the requirements of this section and section 1001A, is eligible to receive a payment under a provision of law referred to in subsection (b), (c), or (d); and 

‘‘(B) a natural 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). 

‘‘(3) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Agriculture.’’. 

(2) by striking subsections (b) through (f) and inserting the 

following: 

‘‘(b) LIMITATION ON DIRECT PAYMENTS.—The total amount of direct payments that an individual or entity may receive, directly or 

indirectly, during any crop year under subtitle A or C of title I of 

the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 

7911 et seq.) for 1 or more covered commodities or peanuts shall 

not exceed $20,000. 


rfrederick on PROD1PC67 with HEARING
67 

‘‘(c) LIMITATION ON COUNTER-CYCLICAL PAYMENTS.—The total 

amount of counter-cyclical payments that an individual or entity 

may receive, directly or indirectly, during any crop year under subtitle A or C of title I of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 7911 et seq.) for 1 or more covered commodities or peanuts shall not exceed $30,000. 

‘‘(d) LIMITATIONS ON MARKETING LOAN GAINS, LOAN DEFICIENCY

PAYMENTS, AND COMMODITY CERTIFICATE TRANSACTIONS.—The 

total amount of the following gains and payments that an individual or entity may receive during any crop year may not exceed 

$75,000. 

‘‘(1)(A) Any gain realized by a producer from repaying a marketing assistance loan for 1 or more loan commodities or peanuts under subtitle B of title I of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 7931 et seq.) at a lower level 

than the original loan rate established for the loan commodity 

under that subtitle. 

‘‘(B) In the case of settlement of a marketing assistance loan 

for 1 or more loan commodities under that subtitle by forfeiture, the amount by which the loan amount exceeds the repayment amount for the loan if the loan had been settled by 

repayment instead of forfeiture. 

‘‘(2) Any loan deficiency payments received for 1 or more loan 

commodities under that subtitle. 

‘‘(3) Any gain realized from the use of a commodity certificate 

issued by the Commodity Credit Corporation for 1 or more loan 

commodities, as determined by the Secretary, including the use 

of a certificate for the settlement of a marketing assistance 

loan made under that subtitle or section 1307 of that Act (7 

U.S.C. 7957). 

‘‘(e) PAYMENT TO INDIVIDUALS AND ENTITIES.—Notwithstanding 

subsections (b) through (d), an individual or entity, directly or indirectly through all ownership interests of the individual or entity 

from all sources, may received payments for a fiscal or corresponding crop year up to but not exceeding twice the limitations 

established under subsections (b) through (d). 

‘‘(f) SINGLE FARMING OPERATION.—Notwithstanding subsections 

(b) through (d), subject to paragraph (2), an individual or entity 

that participates only in a single farming operation and receives, 

directly or indirectly, any payment or gain covered by this section 

through the farming operation, may receive payments for a fiscal 

or corresponding crop year up to but not exceeding twice the limitations established under subsections (b) through (d). 

‘‘(g) SPOUSAL EQUITY.—

‘‘(1) IN GENERAL.—Notwithstanding subsections (b), (c), (d), 

(e) and (f) except as provided in paragraph (2), if an individual 

and the spouse of the individual are covered by paragraph (2) 

and receive, directly or indirectly, any payment or gain covered 

by this section, the total amount of payments or gains (as applicable) covered by this section that the individual and spouse 

may jointly receive during any crop year may not exceed an 

amount equal to twice the applicable dollar amounts specified 

in subsections (b), (c), and (d). 

‘‘(2) EXCEPTIONS.—


rfrederick on PROD1PC67 with HEARING
68 

‘‘(A) SEPARATE FARMING OPERATIONS.—In the case of a 

married couple in which each spouse, before the marriage, 

was separately engaged in an unrelated farming operation, 

each spouse shall be treated as a separate individual with 

respect to a farming operation brought into the marriage 

by a spouse, subject to the condition that the farming operation shall remain a separate farming operation, as determined by the Secretary. 

‘‘(B) ELECTION TO RECEIVE SEPARATE PAYMENTS.—A married couple may elect to receive payments separately in the 

name of each spouse if the total amount of payments and 

benefits described in subsections (b), (c), and (d) that the 

married couple receives, directly or indirectly, does not exceed an amount equal to twice the applicable dollar 

amounts specified in those subsections. 

‘‘(h) PUBLIC SCHOOLS.—The provisions of this section that limit 

payments to any individual or entity shall not be applicable to land 

owned by a public school district or land owned by a State that is 

used to maintain a public school. 

‘‘(i) TIME LIMITS; RELIANCE.—Regulations of the Secretary shall 

establish time limits for the various steps involved with notice, 

hearing, decision, and the appeals procedure in order to ensure expeditious handling and settlement of payment limitation disputes. 

Notwithstanding any other provision of law, actions taken by an individual or other entity in good faith on action or advice of an authorized representative of the Secretary may be accepted as meeting the requirement under this section or section 1001A, to the extent the Secretary deems it desirable in order to provide fair and 

equitable treatment.’’. 

SEC. 1504. PAYMENTS LIMITED TO ACTIVE FARMERS. 

Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–

1) is amended—

(1) by striking the section designation and heading and all 

that follows through the end of subsection (a) and inserting the 

following: 

‘‘(a) SUBSTANTIVE CHANGE.—

‘‘(1) IN GENERAL.—For purposes of the application of limitations under this section, the Secretary shall not approve any 

change in a farming operation that otherwise would increase 

the number of individuals or entities (as defined in section 

1001(a)) to which the limitations under this section apply, unless the Secretary determines that the change is bona fide and 

substantive. 

‘‘(2) FAMILY MEMBERS.—For the purpose of paragraph (1), the 

addition of a family member (as defined in subsection (b)(2)(A)) 

to a farming operation under the criteria established under 

subsection (b)(3)(B) shall be considered to be a bona fide and 

substantive change in the farming operation. 

‘‘(3) PRIMARY CONTROL.—To prevent a farm from reorganizing in a manner that is inconsistent with the purposes of 

this Act, the Secretary shall promulgate such regulations as 

the Secretary determines to be necessary to simultaneously attribute payments for a farming operation to more than one individual or entity, including the individual or entity that exerVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00068 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
69 

cises primary control over the farming operation, including to 

respond to —

‘‘(A)(i) any instance in which ownership of a farming operation is transferred to an individual or entity under an 

arrangement that provides for the sale or exchange of any 

asset or ownership interest in 1 or more entities at less 

than fair market value; and 

‘‘(ii) the transferor is provided preferential rights to repurchase the asset or interest at less than fair market 

value; or 

‘‘(B) a sale or exchange of any asset or ownership interest in 1 or more entities under an arrangement under 

which rights to exercise control over the asset or interest 

are retained, directly or indirectly, by the transferor.’’

(2) in subsection (b)—

(A) by striking paragraph (1) and inserting the following: 

‘‘(1) IN GENERAL.—To be eligible to receive, directly or indirectly, payments or benefits described as being subject to limitation in subsection (b) or (c) of section 1001 with respect to 

a particular farming operation, an individual or entity (as defined in section 1001(a)) shall be actively engaged in farming 

with respect to the farming operation, in accordance with paragraphs (2), (3), and (4).’’; 

(B) in paragraph (2)—

(i) by striking subparagraphs (A), (B), and (C) and 

inserting the following: 

‘‘(A) DEFINITIONS.—In this paragraph: 

‘‘(i) ACTIVE PERSONAL MANAGEMENT.—The term ‘active personal management’ means with respect to an 

individual, administrative duties carried out by the individual for a farming operation—

‘‘(I) that are personally provided by the individual on a regular, substantial, and continuing 

basis; and 

‘‘(II) relating to the supervision and direction 

of—

‘‘(aa) activities and labor involved in the 

farming operation; and 

‘‘(bb) onsite services directly related and 

necessary to the farming operation. 

‘‘(ii) FAMILY MEMBER.—The term ‘family member’, 

with respect to an individual participating in a farming operation, means an individual who is related to 

the individual as a lineal ancestor, a lineal descendant, or a sibling (including a spouse of such and individual). 

‘‘(B) ACTIVE ENGAGEMENT.—Except as provided in paragraph (3), for purposes of paragraph (1), the following shall 

apply: 

‘‘(i) An individual shall be considered to be actively 

engaged in farming with respect to a farming operation if—

‘‘(I) the individual makes a significant contribution, as determined under subparagraph (E) 


rfrederick on PROD1PC67 with HEARING
70 

(based on the total value of the farming operation), to the farming operation of—

‘‘(aa) capital, equipment, or land; and 

‘‘(bb) personal labor and active personal 

management; 

‘‘(II) the share of the individual of the profits or 

losses from the farming operation is commensurate with the contributions of the individual to the 

operation; and 

‘‘(III) a contribution of the individual is at risk. 

‘‘(ii) An entity shall be considered to be actively engaged in farming with respect to a farming operation 

if—

‘‘(I) the entity makes a significant contribution, 

as determined under subparagraph (E) (based on 

the total value of the farming operation), to the 

farming operation of capital, equipment, or land; 

‘‘(II)(aa) the stockholders or members that collectively own at least 51 percent of the combined 

beneficial interest in the entity each make a significant contribution of personal labor and active 

personal management to the operation; or 

‘‘(bb) in the case of an entity in which all of the 

beneficial interests are held by family members, 

any stockholder or member (or household comprised of a stockholder or member and the spouse 

of the stockholder or member) who owns at least 

10 percent of the beneficial interest in the entity 

makes a significant contribution of personal labor 

or active personal management; and 

‘‘(III) the entity meets the requirements of subclauses (II) and (III) of clause (i). 

‘‘(C) ENTITIES MAKING SIGNIFICANT CONTRIBUTIONS.—If 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, the partners 

or members making a significant contribution of personal 

labor or active personal management and meeting the 

standards provided in subclauses (II) and (III) of subparagraph (B)(i), shall be considered to be actively engaged in 

farming with respect to the farming operation’’; and 

(ii) by adding at the end the following: 

‘‘(E) SIGNIFICANT CONTRIBUTION OF PERSONAL LABOR OR

ACTIVE PERSONAL MANAGEMENT.—

‘‘(i) IN GENERAL.—Subject to clause (ii), for purposes 

of subparagraph (B), an individual shall be considered 

to be providing, on behalf of the individual or an entity, a significant contribution of personal labor or active personal management, if the total contribution of 

personal labor and active personal management is at 

least equal to the lesser of—

‘‘(I) 1,000 hours; and 

‘‘(II) a period of time equal to—


rfrederick on PROD1PC67 with HEARING
71 

‘‘(aa) 50 percent of the commensurate share 

of the total number of hours of personal labor 

and active personal management required to 

conduct the farming operation; or ‘‘(bb) in the case of a stockholder or member 

(or household comprised of a stockholder or 

member and the spouse of the stockholder or 

member) that owns at least 10 percent of the 

beneficial interest in an entity in which all of 

the beneficial interests are held by family 

members, 50 percent of the commensurate 

share of hours of the personal labor and active personal management of all family members required to conduct the farming operation. ‘‘(ii) MINIMUM LABOR HOURS.—For the purpose of 

clause (i), the minimum number of labor hours required to produce a commodity shall be equal to the 

number of hours that would be necessary to conduct a 

farming operation for the production of each commodity that is comparable in size to the commensurate 

share of an individual or entity in the farming operation for the production of the commodity, based on 

the minimum number of hours per acre required to 

produce the commodity in the State in which the farming operation is located, as determined by the Secretary.’’

(C) in paragraph (3) by striking subparagraphs (A), (B), 

and (C) and inserting the following: 

‘‘(A) LANDOWNERS.—An individual or entity that is a 

landowner contributing owned land, and that meets the requirements of subclauses (II) and (III) of paragraph 

(2)(B)(i), if as determined by the Secretary — ‘‘(i) the landowner share-rents the land at a rate 

that is usual and customary; and ‘‘(ii) the share received by the landowner is commensurate with the share of the crop or income received 

as rent. ‘‘(B) FAMILY MEMBERS.—With respect to a farming operation conducted by individuals who are family members, or 

an entity the majority of whose stockholders or members 

are family members, an adult family member who makes 

a significant contribution (based on the total value of the 

farming operation) of active personal management or personal labor and, with respect to such contribution, who 

meets the requirements of subclauses (II) and (III) of paragraph (2)(B)(i). ‘‘(C) SHARECROPPERS.—A sharecropper who makes a significant contribution of personal labor to the farming operation and, with respect to such contribution, who meets 

the requirements of subclauses (II) and (III) of paragraph 

(2)(B)(i), and who was receiving payments from the landowner as a sharecropper prior to the effective date of this 

Act.’’

(D) in paragraph (4)—


rfrederick on PROD1PC67 with HEARING
72 

(i) in the paragraph heading, by striking ‘‘PERSONS’’ and inserting ‘‘INDIVIDUALS AND ENTITIES’’; 

(ii) in the matter preceding subparagraph (A), by 

striking ‘‘persons’’ and inserting ‘‘individuals and entities’’; and 

(iii) by striking subparagraph (B) and inserting the 

following: ‘‘(B) OTHER INDIVIDUALS AND ENTITIES.—Any other individual or entity, or class of individuals or entities, that 

fails to meet the requirements of paragraphs (2) and (3), 

as determined by the Secretary.’’ (E) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; 

(F) by inserting after paragraph (4) the following: ‘‘(5) PERSONAL LABOR AND ACTIVE PERSONAL MANAGEMENT.—

No stockholder or member may provide personal labor or active 

personal management to meet the requirements of this subsection for individuals or entities that collectively receive, directly or indirectly, an amount equal to more than twice the 

applicable limits under subsections (b), (c), and (d) of section 

1001.’’

(G) In paragraph (6) (as redesignated by subparagraph 

(e)) 

(i) in the first sentence—

(I) by striking ‘‘A person’’ and inserting ‘‘An individual or entity’’; and 

(II) by striking ‘‘such person’’ and inserting ‘‘the 

individual or entity’’; and 

(ii) by striking the second sentence; and 

(3) by adding at the end the following: 

‘‘(c) NOTIFICATION BY ENTITIES.—To facilitate the administration 

of this section, each entity that receives payments or benefits described as being subject to limitation in subsection (b), (c), or (d) 

of section 1001 with respect to a particular farming operation 

shall—

‘‘(1) notify each individual or other entity that acquires or 

holds a beneficial interest in the farming operation of the requirements and limitations under this section; and 

‘‘(2) provide to the Secretary, at such times and in such manner as the Secretary may require, the name and social security 

number of each individual, or the name and taxpayer identification number of each entity, that holds or acquires such a 

beneficial interest. 

‘‘(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 


rfrederick on PROD1PC67 with HEARING
73 

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.’’. 

SEC. 1505. SCHEMES OR DEVICES. 

Section 1001B of the Food Security Act of 1985 (7 U.S.C. 1308–

2) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘if’’; 

(2) in subsection (a) (as designated by paragraph (1)), by 

striking ‘‘person’’ each place it appears and inserting ‘‘individual or entity’’; and 

(3) by adding at the end the following: 

‘‘(b) FRAUD.—If fraud is committed by an individual or entity in 

connection with a scheme or device to evade, or that has the purpose of evading, section 1001, 1001A, or 1001C, the individual or 

entity shall be ineligible to receive farm program payments described as being subject to limitation in subsection (b), (c), or (d) 

of section 1001 for—

‘‘(1) the crop year for which the scheme or device is adopted; 

and 

‘‘(2) the succeeding 5 crop years. 

‘‘(c) JOINT AND SEVERAL LIABILITY.—All individuals and entities 

who participate in a scheme or device described in subsection (a) 

or (b) shall be jointly and severally liable for any and all overpayments resulting from the scheme or device, and subject to program 

ineligibility resulting from the scheme or device, regardless of 

whether a particular individual or entity was or was not a payment 

recipient. 

‘‘(d) WAIVER AUTHORITY.—The Secretary may fully or partially 

release an individual or entity from liability for repayment of program proceeds under subsection (a)(2) if the individual or entity cooperates with the Department of Agriculture by disclosing a 

scheme or device to evade section 1001, 1001A, or 1001C or any 

other provision of law administered by the Secretary that imposes 

a payment limitation. The decision of the Secretary under this subsection is vested in the sole discretion of the Secretary.’’. 

SEC. 1506. FOREIGN INDIVIDUALS AND ENTITIES MADE INELIGIBLE 

FOR PROGRAM BENEFITS. 

Section 1001C of the Food Security Act of 1985 (7 U.S.C. 1308–

3) is amended—

(1) in the section heading, by striking ‘‘persons’’ and inserting 

‘‘individuals and entities’’; 


rfrederick on PROD1PC67 with HEARING
74 

(2) in subsection (a), by striking ‘‘person’’ each place it appears and inserting ‘‘individual’’; and 

(3) in subsection (b)— (A) in the subsection heading, by striking ‘‘CORPORATION

OR OTHER’’; and 

(B) by striking ‘‘a corporation or other entity’’ and inserting ‘‘an entity’’. 

SEC. 1507. ADJUSTED GROSS INCOME LIMITATION. 

(a) EXTENSION OF ADJUSTED GROSS INCOME LIMITATION.— (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 and no benefits shall be provided on land owned by 

an individual or entity if the average adjusted gross income of the entity or individual combined with the income 

of the individual′′s spouse exceeds $250,000. ‘‘(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) and 

no benefits shall be provided on land owned by an individual or entity during a crop year if the average adjusted 

gross income of the entity or individual combined with the 

income of the individual’s spouse exceeds $125,000, unless 

not less than 66.66 percent of the average adjusted gross 

income of the entity or individual combined with the income of the individuals spouse is derived from farming, 

ranching, or forestry operations, as determined by the Secretary.’’; 

(2) in paragraph (2), by striking subparagraph (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. 


rfrederick on PROD1PC67 with HEARING
75 

‘‘(G) The sale of land that has been used for agriculture.’’. 

SEC. 1508. REGULATIONS. 

(a) IN GENERAL.—The Secretary of Agriculture may promulgate 

such regulations as are necessary to implement this Act and the 

amendment made to this Act. 

(b) PROCEDURE.—The promulgation of the regulations and administration of this Act and the amendments made by this Act 

shall be made without regard to 

(1) the notice and comment provisions of section 553 of title 

5, United States Code; 

(2) 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 

(3) chapter 35 of title 44, United States Code (commonly 

known as the ‘‘Paperwork Reduction Act’’). 

(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, 21 United States Code. 

Strike section 1512 (title I, page 109, beginning line 1), relating 

to mandatory reporting for peanuts 

At the end of title I insert the following: 

Subtitle F—Risk Management Accounts 

SEC. 1601. ESTABLISHMENT OF RISK MANAGEMENT ACCOUNTS. 

(a) IN GENERAL.—The Secretary shall establish optional Risk 

Management Accounts for all eligible farmers and offer incentives 

to encourage farmers to save money during years of high profits to 

use during years of low profits, and for retirement. 

(b) DEFINITIONS.—For purposes of this section— (1) OPERATOR.—The term ‘‘operator’’ means an individual or 

entity that—

(A) either—

(i) during each of the preceding 5 taxable years, filed 

a schedule F of the Federal income tax returns or a 

comparable tax form related to the agricultural operations of the individual or entity, as approved by the 

Secretary; or 

(ii) is a beginning farmer or rancher, as determined 

by the Secretary; and 

(B) earned—

(i) at least $10,000 in average adjusted gross revenue for the preceding 5 taxable years; 

(ii) less than such amount, but is a limited resource 

farmer or rancher, as determined by the Secretary; or 

(iii) at least $10,000 in estimated income from all 

agricultural operations for the applicable year, as determined by the Secretary, and is a beginning farmer 

or rancher under subparagraph (A)(ii). 

(2) FARM.—The term ‘‘farm’’ is land used for production of 

crops, livestock and other agricultural products of which the 

operator has more than de-minimis control or ownership. 


rfrederick on PROD1PC67 with HEARING
76 

(3) ADJUSTED GROSS REVENUE.—The term ‘‘adjusted gross 

revenue’’ means the adjusted gross income as determined by 

the Secretary, from the sale of agricultural crops grown, dairy 

products produced, and livestock raised as part of an agricultural operation— (A) by taking into account gross receipts from the sale 

of agricultural crops, eligible livestock and dairy products 

on the agricultural operation, including insurance indemnities; 

(B) by including all farm payments paid by the Secretary 

or any other government entity for the agricultural operation related to agricultural crops, eligible livestock and 

dairy products; 

(C) by deducting the cost or basis of livestock or other 

items purchased for resale, such as feeder livestock, on the 

agricultural operation; 

(D) by excluding revenues that do not arise from the sale 

of crops grown, dairy products produced or livestock raised 

on an agricultural operation, such as revenues associated 

with the packaging, merchandising, marketing and reprocessing of the agricultural product beyond that typically undertaken by a producer of the crop, dairy products or livestock as determined by the Secretary; 

(E) by using with such adjustments, additions and additional documentation as the Secretary determines is appropriate, information presented on— (i) a schedule F of the Federal income tax returns of 

the producer; or 

(ii) a comparable tax form related to the agricultural 

operations of the producer, as approved by the Secretary. 

(c) ESTABLISHMENT.—Any operator of a farm, including dairy 

farms and ‘‘specialty crop’’ farms, may establish a Risk Management Account in the name of the farm to be jointly administered 

by the Secretary and a private banking institution, credit union, or 

other approved lender. 

(d) VOLUNTARY CONTRIBUTIONS.—An operator of a farm may 

make voluntary contributions to their Risk Management Account 

up to the limits specified in section 219(b)(5)(A) of the Internal 

Revenue Code of 1986, as amended. 

(e) INCENTIVES FOR CONTRIBUTIONS.—For producers eligible for 

Direct Payments under Subtitle A of this Act, for each dollar contributed to the account by the producer, up to the full amount of 

the Direct Payment received in that year, the Secretary shall make 

a matching contribution of 5 percent. 

(f) WITHDRAWALS.—An operator who establishes an account may 

withdraw funds under the following conditions and amounts: 

(1) In a year when the farm’s adjusted gross revenue is less 

than 95 percent of the five-year average adjusted gross revenue, the producer may withdraw funds up to the amount of 

the difference. 

(2) Up to 10 percent of the account balance for investments 

in rural enterprises that contribute to the agricultural economy, as defined by the Secretary, no more than once in any 

five-year period. 


rfrederick on PROD1PC67 with HEARING
77 

(3) When withdrawals are necessary to protect the solvency 

of the farm, as determined by the Secretary. 

(4) To purchase revenue or crop insurance. 

(5) Without restriction once the farmer has retired from 

farming, as determined by the farmer′′s no longer filing a 

Schedule F Income Tax Return. 

(g) VIOLATIONS.—If an operator fails to meet the conditions established for a contribution to an account, the operator shall refund 

to the Secretary an amount equal to the contribution in any fiscal 

year in which a violation occurred. 

(h) SALE OR TRANSFER.—If an operator sells or transfers a farm, 

the operator may elect to— (1) transfer all or a portion of the account to another farm 

in which the operator has a controlling ownership interest or 

acquires a controlling ownership interest within two years of 

the sale or transfer of the original agricultural operation; 

(2) transfer the account to the purchaser of the farm if the 

operator is not already a holder of an account; or 

(3) rollover the account into an Individual Retirement Account pursuant to section 408 of the Internal Revenue Code of 

1986 of the operator, if the operator is a natural person, or, if 

the operator is an entity, into the accounts of any natural person who has a substantial beneficial interest in the farm that 

is the subject of the account. 

(i) CONSERVATION COMPLIANCE.—Any operator and any holder of 

a beneficial interest in a farm subject to an account shall— (1) 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 

(2) comply with applicable wetland conservation requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 

et seq.). 

[CONSERVATION TITLE] 

In the matter proposed to be inserted by section 2103 strike 

‘‘2012’’ and inserting ‘‘2009’’. 

[Section 2104 is amended in subsection (b) by striking ‘‘by striking paragraph (1)’’ and all that follows through ‘‘2012’’ and inserting in paragraph (1), by striking ‘‘2,000,000 acres’’ and inserting 

‘‘5,000,000 acres’’.] 

In section 2104 redesignate subsections (d) and (e) as subsections 

(e) and (f) and insert after subsection (c) the following: 

(d) GRASSLAND RESERVE PROGRAM.—Section 1241(a) of the Food 

Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 

paragraph (5) and inserting the following new paragraph: 

‘‘(5) For each of fiscal years 2008 through 2012, the grassland reserve program under subchapter C of chapter 2’’. 

Add at the end of section 2104 insert the following: 

(e) EXTENSION AND FUNDING.—Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (5) and inserting the following new paragraph: 

‘‘(5) For each of fiscal years 2008 through 2012, the grassland reserve program under subchapter C of chapter 2.’’. 

(f) ENROLLMENT GOALS.—Section 1238N(b) of such Act (16 U.S.C. 

3838N(b)) is amended in paragraph (1), by striking ‘‘2,000,000 

acres’’ and inserting ‘‘5,000,000 acres’’. 


rfrederick on PROD1PC67 with HEARING
78 

In the matter to be inserted by section 2301 strike subparagraphs (A) through (E) and insert the following: (A) $20,000,000. 

(B) $40,000,000. 

(C) $50,000,000. 

(D) $90,000,000. 

(E) ‘‘$100,000,000. 

At the end of subtitle C of title I insert the following: 

SEC. 2303. COMMUNITY FORESTS AND OPEN SPACE CONSERVATION 

PROGRAM. 

(a) FINDINGS.—Congress makes the following findings: 

(1) The United States Forest Service projects that 44 million 

acres of privately owned forested land will be developed in the 

United States by 2030, including many of the most important 

remaining forested parcels within and adjacent to communities. 

(2) There is an urgent need to assist local governments in 

raising the funds necessary to purchase the most important of 

these parcels of privately owned forested land as they come up 

for sale. 

(3) The breakup of forested land into smaller parcels has resulted in an increasing number of owners of privately owned 

forested land, but many of these owners have little or no experience in forest stewardship. 

(4) In fast growing communities of all sizes across the United 

States, the remaining parcels of privately owned forested land 

play an essential role in protecting public water supplies, 

which has lead many local governments to purchase these 

lands for municipal or county ownership. 

(5) Rising rates of obesity and other public health problems 

related to inactivity have been shown to be ameliorated by improving public access to safe and pleasing areas for outdoor 

recreation, which has lead many local governments to purchase 

lands for recreational purposes under municipal or county ownership. 

(6) Across the United States, many communities of diverse 

types and sizes are deriving significant financial benefit from 

owning and managing municipal or county forestlands as a 

source of local revenue that also contributes significantly to the 

health of the forest products economy at the local and national 

levels. 

(7) The access to privately owned forested land for hunting, 

fishing, and trapping has declined, and the number of persons 

participating in these activities has likewise declined, as these 

lands are divided into smaller parcels and more owners of privately owned forested land post their land against public use, 

which has lead many local governments to purchase 

forestlands to guarantee access for hunting, fishing, and trapping. 

(8) There is a national interest and an urgent need to assist 

local governments in raising the funds necessary to purchase 

important privately owned forested land that will maintain the 

diverse public benefits of forestlands close to or within all manner of communities nationwide, from close-knit rural communities to fast growing suburban and exurban areas. 


rfrederick on PROD1PC67 with HEARING
79 

(b) ESTABLISHMENT OF PROGRAM.—The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et seq.) is amended by adding 

at the end the following new section: 

‘‘SEC. 21. FORESTS AND OPEN SPACE CONSERVATION PROGRAM. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—The Secretary of Agriculture 

shall establish within the Forest Service a program to be known as 

the ‘Community Forests and Open Space Conservation Program’ (in 

this section referred to as the ‘Program’) for the purpose of assisting local governments in a State selected to participate in the Program to acquire forested land that—

‘‘(1) is economically, culturally, and environmentally important to the locality in which the land is located; 

‘‘(2) is threatened by conversion to non-forest uses; and 

‘‘(3) will conserve public access to and benefit from the land 

for a wide variety of public purposes, including model forest 

stewardship, sustainable timber production, forest-based educational and cultural activities, wildlife habitat protection, watershed protection, or outdoor recreation, including hunting 

and fishing. 

‘‘(b) SELECTION OF PARTICIPATING STATES.—

‘‘(1) SELECTION.—Not later than one year after the date of 

the enactment of this section, the Secretary shall select at least 

one State in each of the New England, Mid-Atlantic, Midwest, 

South, West, and Pacific Northwest regions of the United 

States to participate in the Program. The Secretary shall make 

the selections from among applications submitted by willing 

States. No State shall be compelled to participate in the Program. 

‘‘(2) IMPLEMENTATION.—Authority for implementation of the 

Program in a participating State shall lie with the State forester, equivalent State official, or other appropriate State natural resource management agency designated by the Governor 

of the State. 

‘‘(c) ELIGIBILITY AND RANKING CRITERIA.—

‘‘(1) STATE ASSESSMENT OF NEED.—Each participating State 

shall prepare an assessment of need that identifies the geographic areas within the State that will be the focus of land 

acquisition activities under the Program and priority objectives 

for conservation, based on conditions and public needs in the 

State. This requirement may be satisfied by inclusion of the assessment as part of an integrated State-wide forest planning 

process for application of Federal programs in the State. 

‘‘(2) ESTABLISHMENT OF CRITERIA.—Not later than one year 

after the date of the enactment of this section, the Secretary 

shall establish eligibility and ranking criteria for the selection 

of land acquisition proposals to receive funding under the Program. The Secretary shall establish the criteria in consultation 

with State Forest Stewardship Advisory Committees, State 

Urban and Community Forestry Advisory Committees, and 

similar organizations. 

‘‘(3) PRIORITIES.—In establishing the eligibility and ranking 

criteria under paragraph (2), the Secretary shall give priority 

to the acquisition of lands that—


rfrederick on PROD1PC67 with HEARING
80 

‘‘(A) meet identified local open space and natural resource needs, as expressed in town plans, regional plans, 

or other relevant local planning documents; ‘‘(B) can be effectively managed to model good forest 

stewardship for private landowners and support forestbased educational programs, including vocational education in forestry; ‘‘(C) provide significant protection of public water supplies or other waterways; ‘‘(D) can offer long-term economic benefit to communities 

through forestry; ‘‘(E) contain important wildlife habitat; 

‘‘(F) provide convenient public access for outdoor recreation, including hunting and fishing; and ‘‘(G) are most threatened with conversion to nonforest 

uses. ‘‘(d) APPLICATION AND RANKING OF PROPOSALS.—

‘‘(1) PREPARATION AND CONTENTS.—A local government in a 

participating State may prepare an application for assistance 

under the Program in the acquisition of forested land within 

the geographic program focus area in the State identified 

under subsection (c)(1). The application shall include certification by the appropriate unit or units of local government 

that the proposed land acquisition is consistent with any comprehensive plans for development adopted by the unit of local 

government and include such other information as the Secretary may prescribe. ‘‘(2) SUBMISSION.—Participating States shall rank all applications according to priority and submit the applications to the 

Secretary at such times and in such form as the Secretary may 

prescribe. ‘‘(3) NATIONAL LIST.—The Secretary shall maintain a national list of all submitted applications, ranked according to 

the criteria established pursuant to subsection (c). ‘‘(e) OWNERSHIP OF LAND.— ‘‘(1) GOVERNMENT OWNERSHIP.—Except as provided in paragraph (2), all land acquired in whole or in part using funds 

provided under the Program shall be owned in fee simple by 

a local government, such as a municipality or county. ‘‘(2) NONPROFIT ORGANIZATION OWNERSHIP.—Upon the request of a participating State, designated nonprofit organizations operating within that State may also own land acquired 

using funds provided under the Program, subject to the condition that the land is open for public access consistent with the 

purposes and criteria of the Program. 

‘‘(3) EFFECT OF VIOLATION.—If the owner of land acquired in 

whole or in part using funds provided under the Program sells 

the land, the owner shall reimburse the Secretary for the full 

amount of the funds provided under the Program, plus a penalty equal to 50 percent of the sale price or appraised value of 

the land at the time of the sale, whichever is greater. The local 

government or designated nonprofit organization that sold the 

land shall no longer be eligible for assistance under the Program. ‘‘(f) DUTIES OF OWNERS.—


rfrederick on PROD1PC67 with HEARING
81 

‘‘(1) USE AND PROHIBITION ON CONVERSION.—The owner of 

land acquired in whole or in part using funds provided under 

the Program shall manage the land in a manner that is consistent with the purposes for which the land was purchased 

under the Program and shall not convert the property to other 

nonforest uses. Public access for compatible recreational uses, 

as determined by the owner, shall be required. ‘‘(2) MANAGEMENT PLAN.—Not later than two years after the 

closing date on the purchase of land using funds under the 

Program, the owner of the land shall complete a management 

plan for the land, which shall be subject to the approval of the 

responsible State agency. Management plans shall be created 

through a public process that allows for community participation and input. ‘‘(g) COST SHARING REQUIREMENTS.—

‘‘(1) COST SHARING.—In accordance with such terms and conditions as the Secretary may prescribe, costs for the acquisition 

of land under the Program, and other costs associated with the 

Program, shall be shared among participating entities, including State, county, municipal, and other governmental units, 

landowners, corporations, or private organizations. Such costs 

may include costs associated with planning, administration, 

property acquisition, and property management. The Secretary 

may authorize in-kind contributions. 

‘‘(2) FEDERAL COST SHARE.—The Federal share of the cost to 

acquire land under the Program shall not exceed 50 percent of 

the total cost to acquire the land. Payments under this section 

shall be made in accordance with Federal appraisal and acquisition standards and procedures. ‘‘(3) ADMINISTRATION AND TECHNICAL ASSISTANCE.—In order 

to assist local governments in achieving model stewardship of 

land acquired under the Program, 10 percent of all funds appropriated for a fiscal year for the Program shall be allocated 

to the responsible State agencies in participating States to administer the Program and to provide technical assistance to 

local governments for forest stewardship, including development and implementation of management plans required by 

subsection (f)(2). ‘‘(h) PRIVATE PROPERTY PROTECTIONS.— ‘‘(1) ACCESS.—Nothing in this section—

‘‘(A) requires a private property owner to permit public 

access (including Federal, State, or local government access) to private property; or 

‘‘(B) modifies any provision of Federal, State, or local law 

with regard to public access to, or use of, private land. 

‘‘(2) LIABILITY.—Nothing in this section creates any liability, 

or has any effect on liability under any other law, of a private 

property owner with respect to any persons injured on the private property. ‘‘(3) RECOGNITION OF AUTHORITY TO CONTROL LAND USE.— Nothing in this section modifies any authority of Federal, 

State, or local governments to regulate land use. ‘‘(4) PARTICIPATION OF PRIVATE PROPERTY OWNERS.—Nothing 

in this section requires a private property owner to participate 

in the Program. 


rfrederick on PROD1PC67 with HEARING
82 

‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—Of the funds available 

through the Commodity Credit Corporation, The Secretary shall 

use to carry out the Program $10,000,000 for each of the fiscal 

years 2008 through 2012.’’. In the matter to be inserted by section 2401(b) strike ‘‘2011’’ and 

insert ‘‘2008’’ and before clause (i) insert the following (and redesignate subsequent clauses accordingly): ‘‘(i) $200,000,000 for fiscal year 2009; 

‘‘(ii) $350,000,000 for fiscal year 2010; 

‘‘(iii) $500,000,000 for fiscal year 2011;’’. In the matter to be inserted by section 2401(d) strike subparagraphs (A) through (D) and insert the following: ‘‘(A) $1,675,000,000 in fiscal year 2008; 

‘‘(B) $1,840,000,000 in fiscal year 2009; 

‘‘(C) $1,840,000,000 in fiscal year 2010; 

‘‘(D) $1,940,000,000 in fiscal year 2011; and’’. Section 2401(e) is amended to read as follows: 

(e) WILDLIFE HABITAT INCENTIVES PROGRAM.—Paragraph (7) of 

section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) 

is amended to read as follows: ‘‘(7) The wildlife habitat incentives program under section 

1240N, using, to the maximum extent practicable—

‘‘(A) $85,000,000 in fiscal year 2008; 

‘‘(B) $100,000,000 in fiscal year 2009; 

‘‘(C) $140,000,000 in fiscal year 2010; 

‘‘(D) $150,000,000 in fiscal years 2011 and 2012.’’. 

[TRADE TITLE] 

Strike section 3005 (relating to the McGovern-Dole International 

Food for Education and Child Nutrition Program) and insert the 

following: 

SEC. 3005. 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.—Subsection (1) of such section 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) $140,000,000 for fiscal year 2008; 

‘‘(B) $180,000,000 for fiscal year 2009; 

‘‘(C) $220,000,000 for fiscal year 2010; 

‘‘(D) $260,000,000 for fiscal year 2011; and 

‘‘(E) $300,000,000 for fiscal year 2012.’’; 


rfrederick on PROD1PC67 with HEARING
83 

(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 

department or agency assisting’’. 

[NUTRITION TITLE] 

In title IV of the bill, strike section 4008 (relating to Adjusting 

Countable Resources for Inflation), as added to the bill by the En 

Bloc Amendment adopted, and insert the following (and make such 

technical and conforming changes as may be appropriate). 

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 striking ‘‘$2,000’’ and inserting ‘‘$2,700 (as adjusted in accordance with subparagraph (B))’’; and 

(B) by striking ‘‘$3,000’’ and inserting ‘‘$3,900 (as adjusted in accordance with subparagraph (B)),’’; and 

(3) by adding at the end the following: 

‘‘(B) ADJUSTMENT FOR INFLATION.—

‘‘(i) IN GENERAL.—Beginning on October 1, 2008, 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.’’. 

At appropriate places throughout title IV, insert the following 

(and make such technical and conforming changes as may be appropriate): 

SEC. ll. 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.’’. 


rfrederick on PROD1PC67 with HEARING
84 

SEC. ll. 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 $156, $267, $220, and $137, 

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 $313. 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. ll. 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. ll. 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.’’. 


rfrederick on PROD1PC67 with HEARING
85 

SEC. ll. 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. ll. 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 the preceding section, 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. ll. 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)’’. 


rfrederick on PROD1PC67 with HEARING
86 

SEC. ll. 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.’’. 

SEC. ll. FRUIT AND VEGETABLE NUTRITION PROMOTION PROGRAM. 

(a) IN GENERAL.—The Secretary of Agriculture, acting through 

the Administrator of the Agricultural Marketing Service, shall establish and carry out a program to provide assistance to eligible 

trade organizations described in paragraph (3) to increase the consumption of fruits and vegetables in the United States to meet Federal health guidelines. 

(b) REQUIREMENTS FOR PARTICIPATION.—To be eligible for assistance under this section, an eligible trade organization shall—

(1) prepare and submit a plan to increase the consumption 

of fruits and vegetables in the United States to the Administrator of the Agricultural Marketing Service that meets any 

guidelines governing such plans established by the Administrator; and 

(2) meet any other requirements established by the Administrator. 

(c) ELIGIBLE TRADE ORGANIZATIONS.—An eligible trade organization referred to in paragraph (1) means any of the following: 

(1) A nonprofit fruit and vegetable trade organizations in the 

United States. 

(2) A nonprofit State or regional fruit and vegetable organization. 

(3) A fruit and vegetable agricultural cooperative in the 

United States. 

(4) A commodity board or commission in the United States. 

(5) A small business engaged in the fruit and vegetable industry in the United States. 

(d) MATCHING FUNDS.—Assistance provided under this section 

shall not exceed—

(1) in the case of an organization described in paragraphs (1) 

through (5) of subsection (c), 90 percent of the cost of the plan 

to increase the consumption of fruits and vegetables in the 

United States submitted under paragraph (b)(1); and 

(2) in the case of an organization described in paragraph 

(c)(5), 50 percent of the cost of the plan to increase the conVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00086 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
87 

sumption of fruits and vegetables in the United States submitted under paragraph (b)(1). 

(e) FUNDING.—Of the funds of the Commodity Credit Corporation, the Administrator of the Agricultural Marketing Service shall 

use $15,000,000 in each of fiscal years 2008 through 2012 to carry 

out this section. 

In section 4020(a), strike paragraph (4) and insert the following: 

(4) by inserting after subsection (f) the following: ‘‘(g) FUNDING.—For each of the fiscal years 2008 through 2012, the Secretary shall use $30 million of the funds, facilities and authorities of the Commodity Credit Corporation to carry out this section.’’. In section 4303(4)(A), strike clause (ii) and insert the following: 

(ii) by striking ‘‘$9,000,000’’ and inserting ‘‘$100,000,000’’. At the end of subtitle C of title IV, insert the following(and make 

such technical and conforming changes as may be appropriate): 

SEC. lll. HUNGER-FREE COMMUNITIES. 

(a) DEFINITIONS.—In this section: 

(1) DOMESTIC HUNGER GOAL.—The term ‘‘domestic hunger 

goal’’ means— (A) the goal of reducing hunger in the United States to 

at or below 2 percent by 2010; or 

(B) the goal of reducing food insecurity in the United 

States to at or below 6 percent by 2010. 

(2) EMERGENCY FEEDING ORGANIZATION.—The term ‘‘emergency feeding organization’’ has the meaning given the term in 

section 201A of the Emergency Food Assistance Act of 1983 (7 

U.S.C. 7501). 

(3) FOOD SECURITY.—The term ‘‘food security’’ means the 

state in which an individual has access to enough food for an 

active, healthy life. 

(4) HUNGER-FREE COMMUNITIES GOAL.—The term ‘‘hungerfree communities goal’’ means any of the 14 goals described in 

the H. Con. Res. 302 (102nd Congress). 

(b) HUNGER REPORTS.— (1) STUDY.— (A) TIMELINE.— (i) IN GENERAL.—Not later than 1 year after the 

date of enactment of this Act, the Secretary shall conduct a study of major matters relating to the problem 

of hunger in the United States, as determined by the 

Secretary. 

(ii) UPDATE.—Not later than 5 years after the date 

on which the study under clause (i) is conducted, the 

Secretary shall update the study. 

(B) MATTERS TO BE ASSESSED.—The matters to be assessed by the Secretary in the study and update under this 

paragraph shall include—

(i) data on hunger and food insecurity in the United 

States; 

(ii) measures carried out during the previous year 

by Federal, State, and local governments to achieve 

domestic hunger goals and hunger-free communities 

goals; 


rfrederick on PROD1PC67 with HEARING
88 

(iii) measures that could be carried out by Federal, 

State, and local governments to achieve domestic hunger goals and hunger-free communities goals; and 

(iv) the impact of hunger and household food insecurity on obesity, in the context of poverty and food assistance programs. 

(2) RECOMMENDATIONS.—The Secretary shall develop recommendations on— (A) removing obstacles to achieving domestic hunger 

goals and hunger-free communities goals; and 

(B) otherwise reducing domestic hunger. 

(3) REPORT.—The Secretary shall submit to the President 

and Congress—

(A) not later than 1 year after the date of enactment of 

this Act, a report that contains—

(i) a detailed statement of the results of the study, 

or the most recent update to the study, conducted 

under paragraph (1)(A); and 

(ii) the most recent recommendations of the Secretary under paragraph (2); and 

(B) not later than 5 years after the date of submission 

of the report under subparagraph (A), an update of the report. 

(c) HUNGER-FREE COMMUNITIES COLLABORATIVE GRANTS.— (1) DEFINITION OF ELIGIBLE ENTITY.—In this subsection, the 

term ‘‘eligible entity’’ means a public food program service provider or a nonprofit organization, including but not limited to 

an emergency feeding organization, that demonstrates the organization has collaborated, or will collaborate, with 1 or more 

local partner organizations to achieve at least 1 hunger-free 

communities goal. 

(2) PROGRAM AUTHORIZED.—

(A) IN GENERAL.—The Secretary shall use not more than 

55 percent of any funds made available under subsection 

(f) to make grants to eligible entities to pay the Federal 

share of the costs of an activity described in paragraph (4). 

(B) FEDERAL SHARE.—The Federal share of the cost of 

carrying out an activity under this subsection shall not exceed 80 percent. 

(C) NON-FEDERAL SHARE.—

(i) CALCULATION.—The non-Federal share of the cost 

of an activity under this subsection may be provided 

in cash or in kind, fairly evaluated, including facilities, 

equipment, or services. 

(ii) SOURCES.—Any entity may provide the non-Federal share of the cost of an activity under this subsection through a State government, a local government, or a private source. 

(3) APPLICATION.— (A) IN GENERAL.—To receive a grant under this subsection, an eligible entity shall submit an application to 

the Secretary at the time and in the manner and accompanied by any information the Secretary may require. 

(B) CONTENTS.—Each application submitted under subparagraph (A) shall—


rfrederick on PROD1PC67 with HEARING
89 

(i) identify any activity described in paragraph (4) 

that the grant will be used to fund; 

(ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity; 

(iii) list any partner organizations of the eligible entity that will participate in an activity funded by the 

grant; 

(iv) describe any agreement between a partner organization and the eligible entity necessary to carry out 

an activity funded by the grant; and 

(v) if an assessment described in paragraph (4)(A) 

has been performed, include— (I) a summary of that assessment; and 

(II) information regarding the means by which 

the grant will help reduce hunger in the community of the eligible entity. 

(C) PRIORITY.—In making grants under this subsection, 

the Secretary shall give priority to eligible entities that— (i) demonstrate in the application of the eligible entity that the eligible entity makes collaborative efforts 

to reduce hunger in the community of the eligible entity; and 

(ii)(I) serve a predominantly rural and geographically underserved area; 

(II) serve communities in which the rates of food insecurity, hunger, poverty, or unemployment are demonstrably higher than national average rates; 

(III) provide evidence of long-term efforts to reduce 

hunger in the community; 

(IV) provide evidence of public support for the efforts 

of the eligible entity; or 

(V) demonstrate in the application of the eligible entity a commitment to achieving more than 1 hungerfree communities goal. 

(4) USE OF FUNDS.— (A) ASSESSMENT OF HUNGER IN THE COMMUNITY.— (i) IN GENERAL.—An eligible entity in a community 

that has not performed an assessment described in 

clause (ii) may use a grant received under this subsection to perform the assessment for the community. 

(ii) ASSESSMENT.—The assessment referred to in 

clause (ii) shall include—

(I) an analysis of the problem of hunger in the 

community served by the eligible entity; 

(II) an evaluation of any facility and any equipment used to achieve a hunger-free communities 

goal in the community; 

(III) an analysis of the effectiveness and extent 

of service of existing nutrition programs and 

emergency feeding organizations; and 

(IV) a plan to achieve any other hunger-free 

communities goal in the community. 

(B) ACTIVITIES.—An eligible entity in a community that 

has submitted an assessment to the Secretary shall use a 


rfrederick on PROD1PC67 with HEARING
90 

grant received under this subsection for any fiscal year for 

activities of the eligible entity, including—

(i) meeting the immediate needs of people in the 

community served by the eligible entity who experience hunger by—

(I) distributing food; 

(II) providing community outreach; or 

(III) improving access to food as part of a comprehensive service; 

(ii) developing new resources and strategies to help 

reduce hunger in the community; 

(iii) establishing a program to achieve a hunger-free 

communities goal in the community, including—

(I) a program to prevent, monitor, and treat 

children in the community experiencing hunger or 

poor nutrition; or 

(II) a program to provide information to people 

in the community on hunger, domestic hunger 

goals, and hunger-free communities goals; and 

(iv) establishing a program to provide food and nutrition services as part of a coordinated communitybased comprehensive service. 

(d) HUNGER-FREE COMMUNITIES INFRASTRUCTURE GRANTS.—

(1) DEFINITION OF ELIGIBLE ENTITY.—In this subsection, the 

term ‘‘eligible entity’’ means an emergency feeding organization 

(as defined in section 201A(4) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501(4))). 

(2) PROGRAM AUTHORIZED.—

(A) IN GENERAL.—The Secretary shall use not more than 

45 percent of any funds made available under subsection 

(f) to make grants to eligible entities to pay the Federal 

share of the costs of an activity described in paragraph (4). 

(B) FEDERAL SHARE.—The Federal share of the cost of 

carrying out an activity under this subsection shall not exceed 80 percent. 

(3) APPLICATION.—

(A) IN GENERAL.—To receive a grant under this subsection, an eligible entity shall submit an application to 

the Secretary at the time and in the manner and accompanied by any information the Secretary may require. 

(B) CONTENTS.—Each application submitted under subparagraph (A) shall—

(i) identify any activity described in paragraph (4) 

that the grant will be used to fund; and 

(ii) describe the means by which an activity identified under clause (i) will reduce hunger in the community of the eligible entity. 

(C) PRIORITY.—In making grants under this subsection, 

the Secretary shall give priority to eligible entities the applications of which demonstrate 2 or more of the following: 

(i) The eligible entity serves a predominantly rural 

and geographically underserved area. 

(ii) The eligible entity serves a community in which 

the rates of food insecurity, hunger, poverty, or unemVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00090 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
91 

ployment are demonstrably higher than national average rates. 

(iii) The eligible entity serves a community that has 

carried out long-term efforts to reduce hunger in the 

community. 

(iv) The eligible entity serves a community that provides public support for the efforts of the eligible entity. 

(v) The eligible entity is committed to achieving 

more than 1 hunger-free communities goal. 

(4) USE OF FUNDS.—An eligible entity shall use a grant received under this subsection for any fiscal year to carry out activities of the eligible entity, including—

(A) constructing, expanding, or repairing a facility or 

equipment to support hunger relief agencies in the community; 

(B) assisting an emergency feeding organization in the 

community in obtaining locally-produced produce and protein products; and 

(C) assisting an emergency feeding organization in the 

community to process and serve wild game. 

(e) REPORT.—Not later than September 30, 2013, the Secretary 

shall submit to Congress a report describing—

(1) each grant made under this section, including—

(A) a description of any activity funded by such a grant; 

and 

(B) the degree of success of each activity funded by such 

a grant in achieving hunger-free communities goals; and 

(2) the degree of success of all activities funded by grants 

under this section in achieving domestic hunger goals. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $50,000,000 for each of fiscal years 2008 through 2013. 

In subsection (a)(1) of the amendment made by section 4401(a) 

of the bill, strike ‘‘$15,000,000’’ and insert ‘‘$45,000,000’’ . 

In subsection (a) of the amendment made by section 4401(a) of 

the bill, strike paragraph (2) and insert the following: 

(2) There is authorized to be appropriated $100,000,000 for 

each of fiscal years 2008 through 2012 to carry out and expand 

the senior farmers’ market nutrition programs. 

At the end of subtitle D of title IV, insert the following (and 

make such technical and conforming changes as may be appropriate): 

SEC. ll. GRANTS FOR LOCAL FARMERS AND COMMUNITY FARMING. 

(a) GRANTS TO ASSIST MUNICIPALITIES TO HELP LOCAL FARMERS

TO GROW FOOD TO BE SOLD LOCALLY.—

(1) IN GENERAL.—The Secretary of Agriculture may make a 

grant in accordance with this subsection to a municipality to 

enable the municipality to facilitate the ability of local farmers 

to grow food crops or raise beef, poultry, or other consumable 

agricultural products to be sold to the local community. 

(2) MAXIMUM AMOUNT OF GRANT.—The amount of a grant 

under this subsection shall not exceed $100,000. 

(3) USE OF GRANTS.—


rfrederick on PROD1PC67 with HEARING
92 

(A) IN GENERAL.—A municipality to which a grant is 

made under this subsection shall use the grant, subject to 

subparagraph (B), to establish a community supported agriculture project, by—

(i) leasing municipal land to a participating farmer; 

(ii) providing a loan guarantee for a loan made for 

the purchase or lease of equipment or facilities to be 

used by a participating farmer; 

(iii) establish a kitchen certified by relevant health 

authorities for use by the participating farmer and 

other farmers operating, as determined by the municipality, locally or regionally; or 

(iv) establish a beef, poultry or other agricultural 

product processing plant certified by relevant health 

authorities for use by the participating farmer or other 

farmers operating, a determined by the municipality, 

locally or regionally. 

(B) REQUIREMENTS RELATING TO MINIMUM OUTPUT, 

LOCAL SALE, AND UNDER-SERVED COMMUNITIES.—

(i) IN GENERAL.—A lease entered into or a loan guarantee provided pursuant to this subsection shall provide that the municipality may terminate the lease or 

rescind the loan guarantee, as the case may be, if, during each year for which the lease or loan guarantee is 

in effect—

(I) the total value of the crops, beef, poultry, or 

other consumable agricultural products produced 

from the land involved is less than $5,000; 

(II) at least 30 percent of the crops, beef, poultry, or other consumable agricultural products are 

not made available for sale in an under-served 

community; or 

(III) at least 70 percent of the crops, beef, poultry, or other consumable agricultural products are 

not made available for sale locally or regionally. 

(ii) LOCAL OR REGIONAL SALE.—An agricultural product shall be considered to be made available for sale 

locally or regionally for purposes of this subsection if 

the product is distributed within the locality or region 

where produced, in a manner which—

(I) ensures that information regarding the product origin, production practices, or other similar 

information which is a source of value to the enduse consumer is typically conveyed; 

(II) facilitates the likelihood that the income of 

the community supported agriculture operation is 

increased through maximization of the share of 

the retail food price retained by the producer; 

(III) ensures that consumers are provided with 

an affordable product produced, processed, and 

distributed in the locality or region where the enduse consumers acquire the product; and 

(IV) ensures that the product has traveled less 

than half of the current average distance of all 


rfrederick on PROD1PC67 with HEARING
93 

food produced and consumed in the United States, 

as determined by the Secretary. 

(C) PUBLIC BIDDING REQUIRED.—The municipality shall 

solicit bids from the general public for the leases and loan 

guarantees to be provided by the municipality pursuant to 

this subsection. The municipality shall conduct the bidding 

in a manner that creates a primary preference for minority 

and socially-disadvantaged farmers and ranchers (as defined in section 355(e) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 2003 (e))) and a secondary preference for participating farmers who will farm the land organically. 

(4) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For 

grants under this subsection, there are authorized to be appropriated to the Secretary not more than $40,000,000 for each of 

fiscal years 2008 through 2013. 

(b) GRANTS TO SUPPORT THE FORMATION OF COMMUNITY-SUPPORTED AGRICULTURAL PROJECTS.—

(1) IN GENERAL.—The Secretary of Agriculture may make a 

grant to enable a local nongovernmental farming association 

that promotes community-based farming or to a qualified farmer to provide technical, advisory, and other assistance to support the formation of a municipally-based community-supported agricultural project. 

(2) MAXIMUM AMOUNT OF GRANT.—The amount of a grant 

under this subsection shall not exceed $25,000. 

(3) USE OF GRANTS.—A grant recipient shall use the grant 

to—

(A) provide public information about the assistance 

available pursuant to this section; 

(B) provide technical and advisory assistance to participating farmers who enter into a lease or receive a loan 

guarantee from a municipality pursuant to section 1; or 

(C) conduct training sessions on subjects relevant to 

starting, operating, maintaining, or marketing crops produced by participating farmers. 

(4) DEFINITION.—In this subsection, the term ‘‘qualified 

farmer’’ means a farmer who demonstrated expertise in setting 

up a profit-making enterprise, such as a farm, a community 

supported agriculture operation, or a farmers market that has 

been in operation at least five years. 

(5) DISPUTE RESOLUTION.—In the event of a landlord-tenant 

dispute, dispute concerning ownership rights to improved infrastructure, or other dispute between a municipality and a 

participating farmer, the parties shall utilize the services of 

the Certified State Agricultural Mediation Program is administered by the Farm Service Agency. 

(6) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For 

grants under this subsection, there are authorized to be appropriated to the Secretary not more than $10,000,000 for each of 

fiscal years 2008 through 2013. 

(c) GRANTS TO PROVIDE START-UP FUNDS TO FARMERS WHO MUST

DIVERSIFY THEIR OPERATIONS IN ORDER TO PARTICIPATE IN COMMUNITY-SUPPORTED AGRICULTURAL PROJECTS.—


rfrederick on PROD1PC67 with HEARING
94 

(1) IN GENERAL.—The Secretary of Agriculture may make a 

one-time grant to provide start-up funding to an agricultural 

producer who must diversify the agricultural operations of the 

producer in order to participate in a community-supported agricultural project. 

(2) MAXIMUM AMOUNT OF GRANT.—The amount of a grant under this subsection shall not exceed $5,000. 

(3) USE OF GRANTS.—An agricultural producer to whom a 

grant is made under this subsection shall use the grant to 

begin a new agricultural operation. 

(4) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For 

grants under this subsection, there are authorized to be appropriated to the Secretary not more than $2,000,000 for each of 

fiscal years 2008 through 2013. 

(d) MARKETING ASSISTANCE FOR COMMUNITY SUPPORTED AGRICULTURE PROJECTS.—The Secretary of Agriculture shall provide 

marketing assistance to a participating farmer who has received a 

lease or loan guarantee under section 1 that has not been terminated, to assist the farmer in marketing to community institutions, 

including schools, child care centers, and senior centers. 

(e) DEFINITIONS.—In this section: 

(1) COMMUNITY-SUPPORTED AGRICULTURAL PROJECT.—The 

term ‘‘community-supported agricultural project’’ means a contract under which a group of consumers, a nonprofit organization, or a public agency which represents consumers is obligated to purchase a specified amount of 1 or more agricultural 

products directly from 1 or more agricultural producers during 

a specific period. 

(2) FARM VENDOR.—The term ‘farm vendor’ means a farmer, 

a member of the farmer’s family, or employee of the farmer, 

who sells their products at a farmers market. The farm vendor 

must offer for sale at the market only the food or other items 

that are grown or produced by that farm. 

(3) MARKETING ALLIANCE.—The term ‘‘marketing alliance’’

means a legally recognized entity, such as the National Farmers Market Coalition, from which growers and farmers market 

managers can obtain technical support on farmers market 

issues. 

(4) MUNICIPALITY.—The term ‘‘municipality’’ includes any 

city, town, borough, county, parish, district, transportation district, assessment jurisdiction, or other public body, or any 

other political subdivision within the territorial limits of the 

United States, created by or pursuant to State law or the law 

of an Indian tribe or tribal organization, with the authority to 

impose a tax, charge, or fee. 

(5) NONGOVERNMENTAL FARMING ASSOCIATION.—The term 

‘‘nongovernmental farming association’’ means any of the following entities that has legal standing: 

(A) A group of agricultural producers that operates as a 

marketing alliance. 

(B) A cooperative association, each of whose owners and 

members is an agricultural producer. 

(C) A group of 2 or more agricultural producers or farm 

vendors who sell an agricultural product through a common distribution channel. 


rfrederick on PROD1PC67 with HEARING
95 

(D) A nonprofit organization with expertise in farming. 

(E) A network or association of agricultural producers. 

(6) PARTICIPATING FARMER.—The term ‘‘participating farmer’’ means an agricultural producer who has made a binding commitment to participate in a community-supported agricultural 

project. 

(7) STATE.—The term ‘‘State’’ includes the several States, the 

District of Columbia, the Commonwealth of Puerto Rico, the 

Commonwealth of the Northern Mariana Islands, the United 

States Virgin Islands, Guam, and American Samoa. 

(8) UNDER-SERVED COMMUNITY.—The term ‘‘under-served 

community’’ means an urban, rural, or tribal community which 

has— (A) limited access to affordable, healthy foods, including 

fresh fruits and vegetables, in retail grocery stores or 

farmer-to-consumer direct markets; 

(B) a high incidence of diet-related diseases, including 

obesity; 

(C) a high rate of hunger or food insecurity; or 

(D) severe or persistent poverty. 

(f) REGULATIONS.—The Secretary of Agriculture shall prescribe 

such regulations as may be necessary to carry out this section. 

[RURAL DEVELOPMENT TITLE] 

Strike section 6013 and insert the following: 

SEC. 6013. RURAL ENTREPRENEUR AND MICROENTERPRISE ASSISTANCE PROGRAM. 

Subtitle D of the Consolidated Farm and Rural Development Act 

is amended by inserting after section 364 (7 U.S.C. 2006f) the following: 

‘‘SEC. 365. 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 involved. ‘‘(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 has a demonstrated capacity to provide 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 the greatest of—

‘‘(A) 80 percent of median income of the non-metropolitan statistical area in which the individual resides; 

‘‘(B) 80 percent of the statewide non-metropolitan area 

median income; or 

‘‘(C) 80 percent of the national median income. 


rfrederick on PROD1PC67 with HEARING
96 

‘‘(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 self-employed individual; or 

‘‘(B) a business entity with not more than 10 full-timeequivalent employees. ‘‘(7) MICROENTERPRISE DEVELOPMENT ORGANIZATION.—The 

term ‘microenterprise development organization’ means a private, nonprofit entity that— ‘‘(A) provides training and technical assistance to rural 

entrepreneurs; ‘‘(B) facilitates access to capital or another service described in subsection (b) for rural entrepreneurs; and ‘‘(C) has 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 an 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) an intermediary; 

‘‘(B) a microenterprise development organization or 

microenterprise development program that— ‘‘(i) has a demonstrated record of delivering microenterprise services to rural entrepreneurs; or 

‘‘(ii) has an effective plan to develop a program to 

deliver microenterprise services to rural entrepreneurs 

effectively, as determined by the Secretary; or 

‘‘(C) an Indian tribe, the tribal government of which certifies to the Secretary that no microenterprise development 

organization or microenterprise development program exists under the jurisdiction of the Indian tribe; 

‘‘(D) a group of 2 or more organizations or Indian tribes 

described in subparagraph (A) or (B) that agree to act 

jointly as a qualified organization under this section; or 

‘‘(E) for purposes of subsection (b), a public college or 

university. 

‘‘(12) 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. 


rfrederick on PROD1PC67 with HEARING
97 

‘‘(13) 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. ‘‘(14) SECRETARY.—The term ‘Secretary’ means the Secretary 

of Agriculture, acting through the Rural Business and Cooperative Development Service. ‘‘(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 microenterprises in rural areas; and ‘‘(B) continuing technical and financial assistance as individuals and business starting or operating microenterprises. ‘‘(3) GRANTS.— ‘‘(A) IN GENERAL.—The Secretary may make a grant 

under the Program to a qualified organization or intermediary—

‘‘(i) to provide training, operational support, or a 

rural capacity-building service to another qualified organization to assist the other organization in developing microenterprise training, technical assistance, 

market development assistance, and other related 

services, for microenterprise, with an emphasis on 

those that—

‘‘(I) have 5 or fewer full-time equivalent employees; 

‘‘(II) serve low income individuals; or 

‘‘(III) serve areas that have lost population; 

‘‘(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) SUBGRANTS.—Subject to such regulations as the 

Secretary may promulgate, a qualified organization that 

receives a grant under this paragraph may use the grant 

to provide assistance to other qualified organizations, such 

as small or emerging qualified organizations. ‘‘(C) DIVERSITY.—In making grants under this paragraph, the Secretary shall ensure, to the maximum extent 

practicable, that grant recipients include qualified organizations—


rfrederick on PROD1PC67 with HEARING
98 

‘‘(i) of varying sizes; and 

‘‘(ii) that serve racially and ethnically diverse populations. ‘‘(D) MATCHING REQUIREMENT.— ‘‘(i) IN GENERAL.—As a condition of any grant made 

under this paragraph, the Secretary shall require the 

grantee to expend for the project involved, from nonFederal sources, not less than 25 percent of the total 

amount of the grant. ‘‘(ii) FORM OF CONTRIBUTION.—The non-Federal 

share of the cost of a project described in clause (i) 

may be provided— ‘‘(I) in cash (including through fees, grants (including community development block grants), 

and gifts); or ‘‘(II) in-kind. ‘‘(4) RURAL MICROLOAN 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 

to microenterprises in rural areas and rural entrepreneurs, 

with an emphasis on those that—

‘‘(i) have 5 or fewer full-time equivalent employees; 

‘‘(ii) serve low income individuals; or 

‘‘(iii) serve areas that have lost population. 

‘‘(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 

microenterprises in rural areas; and ‘‘(ii) in conjunction with the loans, provide grants in 

accordance with subparagraph (E) to the qualified organizations for the purpose of providing intensive marketing, management, and technical assistance to 

microenterprises in rural areas that are borrowers 

under this subsection. 

‘‘(D) LOAN DURATION; INTEREST RATES; CONDITIONS.— ‘‘(i) LOAN DURATION.—A loan made by the Secretary 

under this paragraph shall be for a term not to exceed 

20 years. 

‘‘(ii) APPLICABLE INTEREST RATES.—A loan made by 

the Secretary under this paragraph shall bear an annual interest rate of at least 1 percent. 

‘‘(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 microenterprises in rural areas that 

are borrowers or potential borrowers under this subsection. ‘‘(ii) MAXIMUM AMOUNT OF GRANT FOR MICROENTERPRISE DEVELOPMENT ORGANIZATIONS.—The amount of 


rfrederick on PROD1PC67 with HEARING
99 

the grant referred to in clause (i) shall be not more 

than 25 percent of the total outstanding balance of 

loans made by the microenterprise development organization under this paragraph as of the date of provision of the grant, except that for the first loan made 

to a microenterprise development organization, the 

Secretary may make a grant not to exceed 25 percent 

of the outstanding balance of the loan. ‘‘(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 organization to expend for the grant project involved, 

from non-Federal sources, not less than 15 percent 

of the total amount of the grant. ‘‘(II) FORM OF NON-FEDERAL SHARE.—The nonFederal share of the cost of a project described in 

subclause (I) may be provided—

‘‘(aa) in cash; or 

‘‘(bb) in-kind. 

‘‘(c) ADMINISTRATIVE EXPENSES.—Not more than 10 percent of the 

assistance received by a qualified organization for a fiscal year 

under this section may be used to pay administrative expenses. ‘‘(d) FUNDING.— ‘‘(1) MANDATORY FUNDING.— ‘‘(A) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use to carry out this section $40,000,000 for each of fiscal years 2008 through 

2012, to remain available until expended. ‘‘(B) ALLOCATION OF FUNDS.—Of the amount made available by subparagraph (A) for each fiscal year—

‘‘(i) not less than $24,000,000 shall be available for 

use in carrying out subsection (b)(3); and ‘‘(ii) not less than $16,000,000 shall be available for 

use in carrying out subsection (b)(4), of which not 

more than $6,000,000 shall be used to support loans. ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

amounts made available under paragraph (1), there are authorized to be appropriated such sums as are necessary to 

carry out this section for each of fiscal years 2008 through 

2012.’’. In section 231(b)(5)(A) of the Agricultural Risk Protection Act of 

2000, as proposed to be added by section 6027(b)(1) of the bill— (1) strike ‘‘10’’ and insert ‘‘15’’; 

(2) insert ‘‘(i)’’ after ‘‘benefit’’; 

(3) strike ‘‘or socially’’ and insert ‘‘, (ii) socially’’; and 

(4) insert ‘‘, or (iii) an Indian tribe (as defined in section 4 

of the Indian Self-Determination and Education Assistance Act 

(25 U.S.C. 450b))’’ before the period. 

In section 6045(g)(1) of the Farm Security and Rural Investment 

Act of 2002, as proposed to be amended by section 6027(b) of the 

bill, strike ‘‘$30,000,000’’ and insert ‘‘$50,000,000’’. 

[RESEARCH TITLE] 

In section 7310, strike subsections (f) and (g) and insert the following: 


rfrederick on PROD1PC67 with HEARING
100 

(f) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture shall make available $25,000,000 for 

each of fiscal years 2008 through 2012. 

In section 7411, strike subsections (g) and (h) that appear within 

quotation marks and insert the following: ‘‘(g) FUNDING.—Of the funds of the Commodity Credit Corpora- tion, the Secretary shall make available $100,000,000 for each of 

fiscal years 2008 through 2012.’’. [ENERGY TITLE] 

Strike section 9013. 

At the end of title IX, add the following new section: 

SEC. ll. VOLUNTARY RENEWABLE FUELS CERTIFICATION PROGRAM. 

(a) ESTABLISHMENT.—The Secretary of Agriculture, in consultation with the Administrator of the Environmental Protection Agency, shall establish a program to certify biomass crops that meet 

sustainable growing standards designed to reduce greenhouse 

gases, protect wildlife habitat, and protect air, soil, and water quality. 

(b) CERTIFICATION REQUIREMENTS.—To qualify for certification 

under the program established under subsection (a), a biomass crop 

shall be inspected and certified as meeting the standards adopted 

under subsection (c) by an inspector referred to in subsection (d). 

(c) PRODUCTION STANDARDS.—The Secretary shall adopt standards for the certification of biomass crops under subsection (b) that 

provide measurement of a numerical reduction in greenhouse gases 

and soil and water pollutants, based upon the recommendations of 

an advisory committee jointly established by the Secretary and the 

Administrator. 

(d) INSPECTORS.—The Secretary shall designate inspectors that 

the Secretary determines are qualified to certify biomass crops 

under this section to carry out inspections under subsection (b). 

(e) DESIGNATION OF CERTIFIED PRODUCTS.—A product produced 

from a biomass crop that is certified under this section may be designated as having been produced from a certified biomass crop if 

the producer of the product verifies the product was produced from 

such crop and the verification includes a copy of the certification 

under subsection (b). 

[HORTICULTURE TITLE] 

At the end of subtitle C of title X, add the following new section: 

SEC. ll. PESTICIDES. 

(a) RECORDKEEPING AND REPORTING.—

(1) AMENDMENT.—Section 1491 of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 136i–1) is 

amended to read as follows: 

‘‘SEC. 1491. PESTICIDE RECORDKEEPING. 

‘‘(a) REQUIREMENTS.—

‘‘(1) IN GENERAL.—The Secretary of Agriculture, in consultation with the Administrator of the Environmental Protection 

Agency, shall require certified commercial applicators and private applicators of pesticides (whether for general use or restricted use) to maintain—

‘‘(A) records comparable to records maintained by commercial applicators of pesticides, as required by the State 

in which the pesticide is used, or 


rfrederick on PROD1PC67 with HEARING
101 

‘‘(B) if there is no State requirement for the maintenance 

of records, records that contain the product and chemical 

name, the registration number assigned to the pesticide 

under the Federal Insecticide, Fungicide, and Rodenticide 

Act, amount, date and time of application, and location of 

application of each such pesticide used in agricultural production, 

for a period of 20 years after the pesticide is used. ‘‘(2) PROVISION OF RECORDS TO CERTAIN PERSONS.—Within 30 

days of a pesticide application, a certified commercial applicator shall provide a copy of records maintained under paragraph (1) to the person for whom such application was provided. ‘‘(3) PROVISION OF RECORDS TO SECRETARY.—Within 30 days 

of a pesticide application, a certified commercial applicator or 

private applicator shall provide a copy of records maintained 

under paragraph (1) to—

‘‘(A) any State agency designated by the State for such 

purpose; and 

‘‘(B) the Secretary of Agriculture. 

‘‘(4) MAINTENANCE BY SECRETARY.— ‘‘(A) REQUIREMENT.—Subject to subparagraph (B), the 

Secretary of Agriculture shall maintain records submitted 

to the Secretary under paragraph (3) for a period of at 

least 20 years after the pesticide is used. ‘‘(B) EXCEPTION.—The Secretary of Agriculture is not required to maintain records pursuant to subparagraph (A) 

if the Secretary determines that the State in which the 

pesticide is used will maintain such records for a period of 

at least 20 years after such use. ‘‘(b) ACCESS TO RECORDS.— ‘‘(1) IN GENERAL.—Upon request, records maintained under 

subsection (a) shall be made available by applicators and by 

the Secretary of Agriculture to the following: ‘‘(A) A Federal or State agency that deals with pesticide 

use or any health, occupational safety, or environmental 

issue related to the use of pesticides. ‘‘(B) Health care professionals treating persons who reasonably believe that they have been exposed to pesticides. ‘‘(C) Agricultural workers who reasonably believe they 

have been exposed to pesticides, their immediate family 

members, and their representatives. ‘‘(D) Researchers conducting studies on pesticides, occupational safety or health, or environmental conditions. ‘‘(2) AGENCIES.—In the case of Federal agencies, such access 

to records maintained under subsection (a) shall be through 

the Secretary of Agriculture, or the Secretary’s designee. State 

agency requests for access to records maintained under subsection (a) shall be through the lead State agency so designated by the State. ‘‘(3) HEALTH CARE PERSONNEL.—When a health professional 

determines that pesticide information maintained under this 

section is necessary to provide medical treatment or first aid 

to an individual who may have been exposed to pesticides for 

which the information is maintained, upon request applicators 


rfrederick on PROD1PC67 with HEARING
102 

and the Secretary of Agriculture shall promptly provide applicable records maintained under subsection (a) and available 

label information to that health professional. In the case of an 

emergency, such records and information shall be provided immediately. ‘‘(4) AGRICULTURAL WORKERS.—When an agricultural worker 

reasonably believes he or she has been exposed to pesticides, 

upon request applicators and the Secretary of Agriculture shall 

provide applicable records maintained under subsection (a) to 

such worker, the worker’s family member, or the worker’s representative within 5 business days of the request. In the case 

of an emergency, such records shall be provided immediately. ‘‘(5) RESEARCHERS.—When a researcher is conducting a study 

on a pesticide, occupational safety or health, or environmental 

conditions, upon request applicators and the Secretary of Agriculture shall provide applicable records maintained under subsection (a) to such researcher within 30 days of the request. 

‘‘(c) ACCESS TO CONTACT INFORMATION.—Upon request, the person for whom a pesticide application was provided shall provide the 

name and contact information of the applicator to a health care 

professional described in subsection (b)(3) or an agricultural worker, family member, or representative described in subsection (b)(4). ‘‘(d) SURVEYS AND ANALYSES.—Each Federal agency described in 

subsection (b)(1)(A) shall conduct surveys and record the data from 

individual applicators to facilitate statistical analysis for environmental and agronomic purposes, but in reports based on survey 

data the Federal agency shall not release data, including the location from which the data was derived, that would directly or indirectly reveal the identity of individual producers. ‘‘(e) PENALTY.—The Secretary of Agriculture shall be responsible 

for the enforcement of subsections (a), (b), and (c). A violation of 

subsection (a) or (b) by an applicator, or a violation of subsection 

(c) by a person described in such subsection, shall— ‘‘(1) in the case of the first offense, be subject to a fine of not more than $ 1,000; and ‘‘(2) in the case of subsequent offenses, be subject to a fine of not less than $ 2,000 for each violation, except that the penalty shall be less than $1,000 if the Secretary determines that 

the applicator or person made a good faith effort to comply 

with such subsection. ‘‘(f) FEDERAL OR STATE PROVISIONS.—The requirements of this 

section shall not affect provisions of other Federal or State laws. 

‘‘(g) SURVEYS AND REPORTS.—The Secretary of Agriculture and 

the Administrator of the Environmental Protection Agency shall 

survey the records maintained under subsection (a) to develop and 

maintain a database that is sufficient to enable the Secretary and 

the Administrator to publish comprehensive reports, at least on an 

annual basis, concerning agricultural and nonagricultural pesticide 

use. The Secretary and Administrator shall enter into a memorandum of understanding to define their respective responsibilities 

under this subsection in order to avoid duplication of effort. Such 

reports shall be transmitted to Congress not later than April 1 of 

each year. ‘‘(h) REGULATIONS.—The Secretary of Agriculture and the Administrator of the Environmental Protection Agency shall promulgate 


rfrederick on PROD1PC67 with HEARING
103 

revised regulations on their respective areas of responsibility implementing this section not later than 180 days after the enactment of the NOURISH Act of 2007.’’. (2) EFFECTIVE DATE.—The amendment made by paragraph 

(1) takes effect on the date that is 180 days after the enactment of the NOURISH Act of 2007. 

(b) INCLUSION OF LONG-TERM ADVERSE HEALTH EFFECTS IN LA- BELING.—Paragraph (2) of section 2(q) of the Federal Insecticide, 

Fungicide, and Rodenticide Act (7 U.S.C. 136(q)) is amended— (1) in subparagraph (C), by striking ‘‘and’’ at the end; 

(2) in subparagraph (D)(iii), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: ‘‘(E) the pesticide is registered for an agricultural use 

and its labeling does not include information on long-term 

adverse health effects associated with exposure to the pesticide, such as cancer in individuals so exposed and their 

children, birth defects, adverse reproductive effects such as 

infertility or still births, and neurological damage.’’. (c) RESEARCH BY CDC.—

(1) INCREASED RISKS AMONG FARM WORKERS.— (A) IN GENERAL.—The Director of the Centers for Disease Control and Prevention shall conduct or support research on increased risks of cancer or birth defects among 

farm workers who have occupational exposure to pesticide 

and their children. 

(B) AUTHORIZATION OF APPROPRIATIONS.—To carry out 

this paragraph, there is authorized to be appropriated 

$5,000,000 for fiscal year 2008. 

(2) BIOLOGICAL INDICATORS AND CLINICAL TESTS.—

(A) IN GENERAL.—The Director of the Centers for Disease Control and Prevention shall conduct or support research to identify objective biological indicators, and to develop new and additional inexpensive clinical tests, to enable clinicians to diagnose overexposure to pesticides. 

(B) AUTHORIZATION OF APPROPRIATIONS.—To carry out 

this paragraph, there is authorized to be appropriated 

$5,000,000 for fiscal year 2008. 

(d) RESEARCH BY USDA.— (1) IN GENERAL.—The Secretary of Agriculture shall conduct 

or support research on alternatives to agricultural pesticides 

that have been associated with cancer, birth defects, adverse 

reproductive effects, or severe neurological disorders in animal 

studies or epidemiological research. 

(2) AUTHORIZATION OF APPROPRIATIONS.—To carry out this 

subsection, there is authorized to be appropriated $5,000,000 

for fiscal year 2008. 

(e) RESEARCH BY EPA.—

(1) IN GENERAL.—The Administrator of the Environmental 

Protection Agency shall conduct or support research to develop 

field level tests to determine when pesticide-treated fields are 

safe to reenter. 

(2) AUTHORIZATION OF APPROPRIATIONS.—To carry out this 

subsection, there is authorized to be appropriated $7,500,000 

for fiscal year 2008. 


rfrederick on PROD1PC67 with HEARING
104 

Section 10301(1) is amended by striking ‘‘$22,000,000’’ and inserting ‘‘$25,000,000’’. 

Section 10303(f) is amended by striking the text and inserting 

the following: ‘‘Of the funds of the Commodity Credit Corporation, 

the Secretary shall make available $50,000.000 for each of fiscal 

years 2008 through 2012 to carry out this section. Such funds shall 

remain available until expended.’’. 

Section 10102 is amended by striking subsection (b) and inserting the following new subsection: 

(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) $110,000,000 in fiscal year 2008; 

‘‘(2) $115,000,000 in fiscal year 2009; 

‘‘(3) $120,000,000 in fiscal year 2010; 

‘‘(4) $125,000,000 in fiscal year 2011; and 

‘‘(5) $145,000,000 in fiscal year 2012.’’. 

In section 6(f)(1) of the Farmer-to-Consumer Direct Marketing 

Act of 1976 (7 U.S.C. 3005), as added by section 10404(b)(4) of the 

bill, strike ‘‘Secretary of Agriculture use to carry out this section’’

and all that follows and insert ‘‘Secretary of Agriculture shall use 

to carry out this section $20,000,000 for each of fiscal years 2008 

through 2012.’’. 

[MISCELLANEOUS TITLE] 

At the end of subtitle A of title XI add the following new sections: 

SEC. ll. SHARE OF RISK. 

Section 508(k) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)) is amended by striking paragraph (3) and inserting the 

following: 

‘‘(3) SHARE OF RISK.—The reinsurance agreements of the Corporation with the reinsured companies shall require the reinsured companies to cede to the Corporation 30 percent of its 

cumulative underwriting gain or loss.’’

SEC. ll. 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: 

‘‘(ii) for each of the 2008 and subsequent reinsurance years, 15 

percent of the premium used to define loss ratio.’’. 

Subparagraph (D) of section 2501(a)(2) of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)(2)), as added 

by section 11201(a)(1)(B)(ii) of the bill, is amended to read as follows: 

‘‘(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.’’. 


rfrederick on PROD1PC67 with HEARING
105 

Section 2501(a)(4)(A) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279(a)(4)(A)), as amended by section 

11201(a)(1)(C)(i) of the bill, is amended by striking ‘‘$15,000,000’’

and inserting ‘‘$35,000,000’’. 

At the end of subtitle C of title XI add the following new section: 

SEC. ll. MORATORIUM ON FORECLOSURES. 

(a) MORATORIUM.—The Secretary of Agriculture shall, except for 

the purposes referred to in subsection (c), immediately issue a moratorium on all current, pending, and future foreclosures, loan accelerations, and adverse actions, with respect to Department of Agriculture loans to any farm or ranch owned or operated by a socially 

disadvantaged farmer or ranchers (as defined in section 355(e)(2) 

of the Consolidated Farm and Rural Development Act). The Secretary shall waive the accrual of interest and offsets on all loans 

affected by this section for the full period of the moratorium or review shall issue write offs of accrued interest and may take such 

additional actions as recommended by the Commission established 

in subsection (b). 

(a) SOCIALLY DISADVANTAGED FARMERS AND RANCHERS COMMISSION.—

(1) IN GENERAL.—The Secretary of shall establish in the Department of Agriculture a commission to be known as the 

‘‘USDA Socially Disadvantaged Farmers and Ranchers Commission’’ (in this section referred to as the ‘‘Commission’’). 

(2) DUTIES.—The Commission shall review all actions covered by the moratorium under subsection (a) to—

(A) determine whether Federal, State, or local government actions or inactions contributed to the conditions 

leading to foreclosure; 

(B) determine whether the acceleration of foreclosure by 

the Department of Agriculture of loans on farm land 

owned by socially disadvantaged farmers and ranchers was 

in accordance with applicable laws or regulations; 

(C) improve upon the credibility and accuracy of all Department of Agriculture programs land foreclosure process 

and procedures; 

(D) recommend to the Secretary actions for the fair resolution of cases reviewed; and 

(E) submit to the Committee on Agriculture and the 

Committee on Oversight and Government Reform of the 

House of Representatives and the Committee on Agriculture, Nutrition, and Forestry and the Committee on 

Government Reform and Homeland Security of the Senate 

a report on programmatic inefficiencies and possible remedies to address any land loss directly resulting from illegal or manifestly unfair acts of the Department of Agriculture. 

Strike section 10202 and add at the end of title XI the following: 

SEC. ll. 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. 


rfrederick on PROD1PC67 with HEARING
106 

(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. 

Strike section 11305. 

At the end of subtitle A of title XI add the following new section: 

SEC. ll. PARITY FOR ORGANIC CROP ACRES PRICE ELECTIONS, DOLLAR AMOUNTS OF INSURANCE, AND PREMIUM DETERMINATION. 

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) ORGANICS.—Notwithstanding any other provision of this 

title, the Secretary may not charge a premium, deductable, or 

other fee for an insurance policy or plan on crops that are certified organic or transitioning to organic production that is 

more than the premium, deductable, or other fee for an insurance policy or plan on crops that are not certified organic or 

transitioning to organic production.’’. At the end of subtitle C of title XI, add the following new sections: 

SEC. ll. MCINTIRE-STENNIS COOPERATIVE FORESTRY ACT. 

Section 2 of Public Law 87-788 (16 U.S.C. 582a-1) is amended— (1) by inserting ‘‘and 1890 Institutions,’’ before ‘‘and (b)’’; and 

(2) by adding at the end the following: ‘‘In States that have 

both 1862 Institutions and 1890 Institutions eligible for and receiving funds under this Act, the institutions shall, to the maximum extent practicable, develop complementary plans for forestry research in the State. In this section, the terms ‘1862 Institutions’ and ‘1890 Institutions’ have the same meanings as 

in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601(2)).’’. 

SEC. ll. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAM. 

Section 1434(b) of the National Agriculture Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3196(b)) is amended by 

inserting after ‘‘universities’’ the following: ‘‘(including 1890 Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601(2))).’’. 

SEC. ll. CHILDREN, YOUTH, AND FAMILIES EDUCATION AND RESEARCH NETWORK (CYFERNET) PROGRAM. 

(a) IN GENERAL.— In carrying out the Children, Youth, and Families Education and Research Network Program under section 3(d) 

of the Smith-Lever Act (7 U.S.C. 343(d)), the Secretary shall include 1890 Institutions as eligible program applicants and participants. 

(b) 1890 INSTITUTIONS DEFINED.—In this section, the term ‘‘1890 

Institutions’’ has the meaning given the term in section 2 of the 

Agricultural Research, Extension, and Education Reform Act of 

1998 (7 U.S.C. 7601(2)). 

SEC. ll. SOCIALLY DISADVANTAGED PRODUCERS ACCESS PROGRAM. 

(a) ESTABLISHMENT; PURPOSE.—


rfrederick on PROD1PC67 with HEARING
107 

(1) ESTABLISHMENT.—The Secretary of Agriculture shall establish and carry out, for each of fiscal years 2008 through 

2013, a program to enhance the viability of minority and socially disadvantaged farmer and ranchers who own or operate 

agricultural operations by assisting such farmer and ranchers 

to reduce their risks, improve their access to markets, and better utilize the programs and services of the Department of Agriculture. 

(2) IMPROVED ACCESS.—One of the purposes of the program 

shall be to ensure the viability and success of minority and socially disadvantaged farmers and ranchers by promoting the 

involvement of socially disadvantaged farmers and ranchers in 

the full range of services to ensure producer access to commodity, credit, risk management and disaster protection, conservation, marketing, nutrition, value-added, rural development, and other programs and services of the Department. 

(3) ACCURATE REFLECTION OF CONTRIBUTIONS.—Another of 

the purposes of the program shall be to assure that the number and economic contributions of socially disadvantaged farmers and ranchers are accurately reflected in the census of agriculture. 

(b) ELIGIBILITY.— (1) IN GENERAL.—To be eligible to participate in programs 

made available under this title, a producer shall— (A) be a socially disadvantaged farmer or rancher; 

(B) be a producer who, as an owner, operator, landlord, 

tenant, sharecropper or enrolled member of an Indian 

tribe—

(i) shares in the risk of producing any crop or livestock; and 

(ii) 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) or produces 

more than 50 percent of the food needed for family 

consumption; 

(C) enter into a risk management and marker access 

contract with the Secretary to carry out the risk management and market access plan. 

(2) DEFINITIONS.—In this section: 

(A) SOCIALLY DISADVANTAGED.—The term ‘‘socially disadvantaged’’ means, with respect to a farmer or rancher, 

that the farmer or rancher is a member of a socially disadvantage group. 

(B) SOCIALLY DISADVANTAGED GROUP DEFINED.—The 

term ‘‘socially disadvantaged group’’ means a group whose 

members have been subjected to racial or ethnic prejudice 

because of their identity as members of a group without 

regard to their individual qualities. 

(c) PRODUCER PAYMENT STRUCTURE.— (1) PRODUCER DEVELOPMENT PAYMENTS.—The Secretary is 

authorized to provide direct payments to the producers defined 

under subsection (b) if risk management and market access 

plans are implemented within any fiscal year pursuant to a 

plan developed in a fiscal year prior to payment by the Secretary. 


rfrederick on PROD1PC67 with HEARING
108 

(2) ENROLLMENT PROCEDURE.—To enroll in this program, an 

eligible producer must— (A) complete and maintain the practices in the qualification level in paragraph (3)(A)(i); 

(B) describe the tier of the risk management and market 

access plan, and the particular risk management and market access practices to be implemented in accordance with 

this subsection; and 

(C) identify the qualified technical assistance provider 

who will serve as a liaison to the Department and supply 

technical assistance to assure completion of the plan. 

(3) PAYMENT STRUCTURE.—The Secretary shall make annual 

producer payments under this title for participation at 1 of the 

following levels for a period not to exceed a total of 7 years, 

as follows: 

(A) USDA ACCESS PAYMENTS.—The qualification level 

payment shall be not more than $5,000 with up to $2,500 

paid up front if, within the first year, the producer—

(i) files an IRS schedule F or a qualified substitute 

for enrolled members of Indian Tribes; 

(ii) registers at the Farm Service Agency office as a 

farm or rancher, or informs the Secretary the reason 

for which registration was not allowed; 

(iii) signs up for any crop insurance or NAP programs for which the producer is qualified, or provides 

a plan to achieve qualification or inform the Secretary 

if no plan or program exists for the form of production 

on the farm or ranch; and 

(iv) receives technical assistance to be included in 

the Minority Farm Registry and complete the next 

Census of Agriculture. 

The Secretary shall provide to the National Agriculture 

Statistics Service information sufficient for inclusion of 

each producer who qualifies under this section in the next 

census of agriculture. 

(B) PROGRAM ACCESS PAYMENTS.—Program access pay- ments shall at least $5000 and not more than $10,000 annually for up to 3 years if the producer provides, develops, 

and implements a plan to complete at least two of following practices in each year: 

(i) a farm and home plan; 

(ii) an estate plan; 

(iii) a risk management plan, including accessing 

family health insurance; 

(iv) a conservation plan; 

(v) enters into a contract for purchase or sale of 

farm land; 

(vi) acquires a computer, high-speed internet access, 

and software, and training in the use of these tools; 

(vii) prepares a plan to transition to another crop or 

crops; 

(viii) applies for at least one farm program of the 

Department; or 

(ix) other practices as determined by the Secretary. 

(C) MARKET ACCESS AND RISK PROTECTION PAYMENTS.—


rfrederick on PROD1PC67 with HEARING
109 

(i) TIER ONE.—Market Access and Risk Protection 

Payments shall be at least $10,000 and not more than 

$25,000 annually for up to three years if the producer 

develops and implements at least two of the following 

practices in each year: 

(I) Mentor another farmer. 

(II) Seek nomination and election to a Conservation District Board or FSA County Committee. 

(III) Meet standards for Good Agricultural Practices, Organic Certification or other market certifications. 

(IV) Develop and implement a marketing plan 

or a business plan. 

(V) Access liability or other expanded insurance, 

including revenue insurance. 

(VI) Access farmers markets or improved marketing contracts. 

(VII) Participate in farmers market nutrition, 

school food or other nutrition programs. 

(VIII) Develop and implement plan to meet regulatory requirements, including labor, workers 

compensation, and pesticide health and safety 

standards, Livestock and Animal ID. 

(IX) Seek irrigation and other production assistance, Land or waste management. 

(X) Other practices as determined by the Secretary. 

(iii) TIER TWO.—Market Access and Risk Protection 

Payments shall be not more than to $35,000 annually 

for up to three years if the producer completes at least 

two of the following practices in each year: 

(I) Develop or participate in a cooperative or 

marketing association. 

(II) Develop a value-added enterprise. 

(III) Implements improve marketing strategies, 

including development of brands and innovative 

forms of marketing by web or other means. 

(IV) Develop infrastructure or processing capacity. 

(V) Enhance the participation of a cooperative 

or a group of farmers in nutrition and health programs. 

(VI) Construct or improve housing for farmworkers. 

(VII) Enter into direct contracts to secure adequate labor to meet production needs. 

(VIII) Protect of land use and development 

rights. 

(IX) Other practices as determined by the Secretary. 

(d) TECHNICAL ASSISTANCE.—

(1) IN GENERAL.—For each of fiscal years 2008 through 2013, 

the Secretary shall provide technical assistance through qualified technical assistance providers to producers for the developVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00109 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
110 

ment and implementation of a risk management and market 

access plans at each tier. 

(2) TECHNICAL ASSISTANCE PROVIDER.—In this section, the 

term ‘‘technical assistance provider’’ is an organization or educational institutions that qualifies as an eligible entity under 

section 2501(e)(5) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279(e)(5)). 

(3) QUALIFIED TECHNICAL ASSISTANCE PROVIDER.—In this section, the term ‘‘qualified technical assistance provider’’ means 

a technical assistance provider that has been recognized by the 

Risk Management Agency as qualified to provide the service in 

this program. 

(4) LIMITATIONS.—A qualified technical service provider shall 

not receive payment for services in excess of—

(A) $2,000, for services under subsection (c)(3)(A); 

(B) $3,000, for services under subsection (c)(3)(B); or 

(C) $4,000, for services under subsection (c)(3)(C). 

(f) DUTIES OF THE SECRETARY.—

(1) OFFICE OF SMALL FARMS COORDINATION.—The Secretary 

of Agriculture shall establish an office of Small Farm Coordination, which shall be led by the Small Farms Coordinator, who 

shall be a career employee. 

(2) DUTIES.—The Secretary may delegate to the Small Farms 

Coordinator responsibility for the following: 

(A) Administering the program established under subsection (a). 

(B) Administering the activities established under Departmental Regulation 9700-1 issued on August 3, 2006, in 

coordination with any other office, agency, or mission area 

as deemed necessary by the Secretary to facilitate the implementation of the programs under this section, and other 

such duties as assigned to assure the Department best understands, meets, and prioritizes the needs of small, socially disadvantaged, and beginning and new entry farmers. 

(C) Other duties deemed appropriate by the Secretary. 

(3) OUTREACH.—The Secretary shall use not less than 

$1,000,000 annually from funding under this section to support 

consultation, training, and liaison activities with qualified 

technical assistance providers under subsection (b). 

(4) STAFFING AND ADMINISTRATION.—The Secretary shall provide not less than 10 staff positions within the Office of Small 

Farms Coordination at headquarters in Washington and not 

less than 10 field staff for the Office as the Secretary deems 

necessary to implement this program, with additional field 

staff provided in States where the number of applicants exceeds 500 to conduct administration of this program. 

(5) REGULATIONS.—Not later than 270 days after the date of 

enactment of this Act, the Secretary of Agriculture shall promulgate regulations to carry out this subsection. 

(g) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available $80,000,000 to carry out 

this section for each of fiscal years 2008 through 2012. 

At the end of title XI, insert the following new section: 


rfrederick on PROD1PC67 with HEARING
111 

SEC. ll. SENSE OF CONGRESS ON USE OF SAVINGS FOR DEFICIT REDUCTION. 

It is the sense of the Congress that any budgetary savings created as a result of this Act will be used to reduce the Federal budget deficit and not used to offset other Federal spending. 

Strike the title of the bill entitled ‘‘PREVENTION OF TAX 

TREATY EXPLOITATION TO EVADE UNITED STATES TAXATION’’. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FRANK OF

MASSACHUSETTS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike sections 5031, 5032, 5033, 5035, and 5036. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GOODLATTE OF VIRGINIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle A of title II (conservation), add the following new section: 

SEC. 2409. COMMON EASEMENT AUTHORITIES. 

(a) IN GENERAL.—The Food Security Act of 1985 is amended by 

inserting after section 1230 (16 U.S.C. 3801) the following new section: 

‘‘SEC. 1230A. COMMON EASEMENT AUTHORITIES. 

‘‘(a) IN GENERAL.—

‘‘(1) PROGRAM.—In this section the term ‘program’ means the 

applicable program described in paragraph (2). 

‘‘(2) APPLICABILITY.—This section shall apply to the terms 

and conditions of all easements purchased under authorities of 

this subtitle: 

‘‘(A) The wetlands reserve program under subchapter C. 

‘‘(B) The farmland protection program under subchapter 

B of Chapter 2. 

‘‘(C) The grassland reserve program under subchapter C 

of Chapter 2. 

‘‘(D) The healthy forests reserve program, sections 501–

508 of the Healthy Forests Restoration Act of 2003 (16 

U.S.C. 6571–6578). 

‘‘(3) ENROLLMENT.—The Secretary may either directly, or 

through an eligible entity, obtain an interest in eligible land 

through—

‘‘(A) a 30-year or permanent easement; or 

‘‘(B) in a State that imposes a maximum duration for 

easements, an easement for the maximum duration allowed under State law. 

‘‘(4) HOLDER OF EASEMENT TITLE.—The title holder of an 

easement obtained under one of the programs described in 

paragraph (2), in addition to the Secretary, or in lieu of the 

Secretary, may be an eligible entity. 

‘‘(5) ESTABLISHING EASEMENT.—To become eligible to enroll 

land in the program through an easement, the landowner or eligible entity, as applicable, shall—


rfrederick on PROD1PC67 with HEARING
112 

‘‘(A) create and record an appropriate deed restriction in 

accordance with applicable State law; ‘‘(B) provide proof of unencumbered title to the underlying fee interest in the land that is subject of the easement; ‘‘(C) grant the easement to either the Secretary or an eligible entity; ‘‘(D) comply with the terms of the easement and any restoration agreement; and ‘‘(E) explicitly consent in writing to granting a security 

interest in the land to either the Secretary or an eligible 

entity. ‘‘(6) WETLANDS RESERVE PROGRAM DEEDS.—A deed used to 

record an easement under the wetlands reserve program in 

subchapter C shall provide for sufficient protection of the functions and values of the wetland or floodplain, as determined by 

the Secretary. 

‘‘(7) DEED FOR OTHER EASEMENT PROGRAMS.—A deed used to 

record an easement under all programs described in paragraph 

(2) other than the wetlands reserve program shall be in the 

form of a negative restrictive deed that— ‘‘(A) is in a format prescribed by the Secretary; 

‘‘(B) details the rights obtained by the easement; and 

‘‘(C) allows for specific uses of the land, if the use is consistent with the long-term protection of the purposes for 

which the easement was established. ‘‘(8) ACCEPTANCE OF CONTRIBUTIONS.—The Secretary may accept and use contributions of non-Federal funds to carry out 

the administration or purpose the program. ‘‘(9) MODIFICATION, TRANSFER, OR TERMINATION OF EASE- MENT.—

‘‘(A) MODIFICATION.—The Secretary may modify an easement acquired from, or a related agreement with, an 

owner or eligible entity under one of the programs described under paragraph (2) if— ‘‘(i) the parties involved with the easement on the 

land agree to such modification; and ‘‘(ii) the Secretary determines that such modification 

is desirable— ‘‘(I) to carry out the program; 

‘‘(II) to facilitate administration of the program; 

or ‘‘(III) to achieve such other goals as the Secretary determines are appropriate. ‘‘(B) TITLE TRANSFER.—The Secretary may transfer title 

of ownership of an easement to an eligible entity to hold 

and enforce, in lieu of the Secretary, subject to the right 

of the Secretary to conduct periodic inspections and enforce 

the easement, if— ‘‘(i) the Secretary determines that granting the 

transfer would promote the protection of eligible land; ‘‘(ii) the owner authorizes the eligible entity to hold 

and enforce the easement; ‘‘(iii) the eligible entity assuming the title agrees to 

assume the costs incurred in administering and enVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00112 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
113 

forcing the easement, including the costs of restoration 

or rehabilitation of the land as specified by the owner 

and the eligible entity; and 

‘‘(iv) the eligible entity, except for an eligible entity 

under section 1238H(a)(1), has a commitment to protect the conservation purpose of the easement and has 

the resources to enforce the easement. 

‘‘(C) TERMINATION.—The Secretary may terminate an 

easement if—

‘‘(i) the parties involved with such easement agree to 

such termination; and 

‘‘(ii) the Secretary determines that such termination 

would be in the public interest. 

‘‘(10) VIOLATION.—Upon the violation of the terms or conditions of an easement or other agreement entered into under 

this section—

‘‘(A) the easement shall remain in force; and 

‘‘(B) the Secretary may require the owner to refund all 

or part of any payments received by the owner under the 

program, with interest on the payments as determined appropriate by the Secretary. 

‘‘(b) EASEMENTS HELD BY SECRETARY.—

‘‘(1) PERMANENT EASEMENT VALUATION.—In return for the 

granting of a permanent easement or an easement for the maximum duration allowed under applicable State law by a landowner under one of the programs described in subsection (a)(2), 

the Secretary shall make payments to the landowner as authorized under subparagraphs (A) and (B). 

‘‘(A) VALUATION METHODS.—The method of valuation 

shall be determined under the specific program involved. 

‘‘(B) COST OF RESTORATION.—The Secretary shall tender 

a monetary amount to the landowner that is not greater 

than an amount corresponding to 100 percent of the eligible costs of restoration. 

‘‘(2) 30 YEAR EASEMENT VALUATION.—In return for granting 

a 30 year easement by a landowner, the Secretary shall make 

payments to the landowner in an amount equal to—

‘‘(A) not more than 75 percent of the amount that would 

apply in paragraph (1)(A); and 

‘‘(B) not more than 75 percent of the eligible costs of restoration. 

‘‘(3) MONETARY DONATION.—A private landowner may make 

a monetary donation equivalent to any amount of the actual 

value of the easement. 

‘‘(c) EASEMENTS ACQUIRED THROUGH ELIGIBLE ENTITIES.—

‘‘(1) EASEMENT HELD BY ELIGIBLE ENTITY.—The Secretary 

shall offer the opportunity to eligible entities to enter into 

agreements for the purposes of purchasing and holding easements for eligible lands in the program. 

‘‘(2) EASEMENT VALUATION.—When enrolling eligible land 

through an eligible entity, the share of the cost of the Secretary to purchase a conservation easement or other interest in 

eligible land shall not exceed 50 percent of the fair market 

value based on an appraisal of the conservation easement, 


rfrederick on PROD1PC67 with HEARING
114 

using an industry approved methodology determined by the entity. 

‘‘(3) PAYMENTS; DONATIONS.—

‘‘(A) LANDOWNER.—A private landowner may make a 

monetary donation of up to 25 percent of the appraised fair 

market value of the conservation easement or other interest in eligible land. 

‘‘(B) ELIGIBLE ENTITY.—An eligible entity shall make a 

monetary payment of at least 25 percent of the appraised 

fair market value of the conservation easement or other interest in eligible land. 

‘‘(4) TYPE OF DEED.—An eligible entity obtaining an easement under this subtitle shall use a negative restrictive deed 

that provides for—

‘‘(A) rights of all parties subject to the easement; 

‘‘(B) permissible uses of the land, if the use is consistent 

with the purposes for which the easement was established; 

and 

‘‘(C) terms and conditions of the eligible entity such as 

purposes and administration of the easement, if the Secretary finds that the terms and conditions are—

‘‘(i) consistent with the purposes of the program; and 

‘‘(ii) provide for effective enforcement of the conservation purposes of the conservation easement. 

‘‘(d) 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 preserve 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.’’. 

(b) CONFORMING AMENDMENTS.—The following provisions of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3801 

et seq.) are repealed: 

(1) Subsections (c) through (g) of section 1237A. 

(2) Section 1237C(b)(2). 

(3) Section 1237E. 

(4) Subsections (a)(1), (d), and (e) of section 1238O. 

(5) Subsections (a)(2), (b)(1), and (c) of section 1238P. 

(6) Section 1238Q. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE LUCAS OF

OKLAHOMA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle A of title XI, insert the following new section: 

SEC. 11013. 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. 


rfrederick on PROD1PC67 with HEARING
115 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CARDOZA

OF CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle E of title X add the following new section: 

SEC. ll. RESTORATION OF IMPORT AND ENTRY AGRICULTURAL INSPECTION FUNCTIONS TO THE DEPARTMENT OF AGRICULTURE. 

(a) REPEAL OF TRANSFER OF FUNCTIONS.—Section 421 of the 

Homeland Security Act of 2002 (6 U.S.C. 231) is repealed. 

(b) CONFORMING AMENDMENT TO FUNCTIONS OF SECRETARY OF

HOMELAND SECURITY.—Section 402 of the Homeland Security Act 

of 2002 (6 U.S.C. 202) is amended—

(1) by striking paragraph (7); and 

(2) by redesignating paragraph (8) as paragraph (7). 

(c) TRANSFER AGREEMENT.—

(1) IN GENERAL.—Not later than the effective date specified 

in subsection (g), the Secretary of Agriculture and the Secretary of Homeland Security shall enter into an agreement to 

effectuate the return of functions required by the amendments 

made by this section. 

(2) USE OF CERTAIN EMPLOYEES.—The agreement may include authority for the Secretary of Agriculture to use employees of the Department of Homeland Security to carry out authorities delegated to the Animal and Plant Health Inspection 

Service regarding the protection of domestic livestock and 

plants. 

(d) RESTORATION OF DEPARTMENT OF AGRICULTURE EMPLOYEES.—Not later than the effective date specified in subsection (g), 

all full-time equivalent positions of the Department of Agriculture 

transferred to the Department of Homeland Security under section 

421(g) of the Homeland Security Act of 2002 (6 U.S.C. 231(g)) (as 

in effect on the day before such effective date) shall be restored to 

the Department of Agriculture. 

(e) AUTHORITY OF APHIS.—

(1) ESTABLISHMENT OF PROGRAM.—The Secretary of Agriculture shall establish within the Animal and Plant Health Inspection Service a program, to be known as the ‘‘International 

Agricultural Inspection Program’’, under which the Administrator of the Animal and Plant Health Inspection Service (referred to in this subsection as the ‘‘Administrator’’) shall carry 

out import and entry agricultural inspections. 

(2) INFORMATION GATHERING AND INSPECTIONS.—In carrying 

out the program under paragraph (1), the Administrator shall 

have full access to—

(A) each secure area of any terminal for screening passengers or cargo under the control of the Department of 

Homeland Security on the day before the date of enactment of this Act for purposes of carrying out inspections 

and gathering information; and 

(B) each database (including any database relating to 

cargo manifests or employee and business records) under 

the control of the Department of Homeland Security on the 

day before the date of enactment of this Act for purposes 

of gathering information. 


rfrederick on PROD1PC67 with HEARING
116 

(3) INSPECTION ALERTS.—The Administrator may issue inspection alerts, including by indicating cargo to be held for immediate inspection. 

(4) INSPECTION USER FEES.—The Administrator may, as applicable—

(A) continue to collect any agricultural quarantine inspection user fee; and 

(B) administer any reserve account for the fees. 

(5) CAREER TRACK PROGRAM.— (A) IN GENERAL.—The Administrator shall establish a 

program, to be known as the ‘‘import and entry agriculture 

inspector career track program’’, to support the development of long-term career professionals with expertise in 

import and entry agriculture inspection. 

(B) STRATEGIC PLAN AND TRAINING.—In carrying out the 

program under this paragraph, the Administrator, in coordination with the Secretary of Agriculture, shall—

(i) develop a strategic plan to incorporate import and 

entry agricultural inspectors into the infrastructure 

protecting food, fiber, forests, bioenergy, and the environment of the United States from animal and plant 

pests, diseases, and noxious weeds; and 

(ii) as part of the plan under clause (i), provide 

training for import and entry agricultural inspectors 

participating in the program not less frequently than 

once each year to improve inspection skills. 

(f) DUTIES OF SECRETARY OF AGRICULTURE.— (1) OPERATING PROCEDURES AND TRACKING SYSTEM.—The 

Secretary of Agriculture shall— (A) develop standard operating procedures for inspection, 

monitoring, and auditing relating to import and entry agricultural inspections, in accordance with recommendations 

from the Comptroller General of the United States and reports of interagency advisory groups, as applicable; and 

(B) ensure that the Animal and Plant Health Inspection 

Service has a national electronic system with real-time 

tracking capability for monitoring, tracking, and reporting 

inspection activities of the Service. 

(2) FEDERAL AND STATE COOPERATION.— (A) COMMUNICATION SYSTEM.—The Secretary of Agriculture shall develop and maintain an integrated, realtime communication system with respect to import and 

entry agricultural inspections to alert State departments of 

agriculture of significant inspection findings of the Animal 

and Plant Health Inspection Service. 

(3) FUNDING.—The Secretary of Agriculture shall pay the 

costs of each import and entry agricultural inspector employed 

by the Animal and Plant Health Inspection Service from 

amounts made available to the Department of Agriculture for 

the applicable fiscal year. 

(g) REPORT.—Not later than one year after the date of the enactment of this Act, and at least annually thereafter, the Secretary 

shall submit to Congress a report containing an assessment of— (1) the resource needs for import and entry agricultural inspection, including the number of inspectors required; 


rfrederick on PROD1PC67 with HEARING
117 

(2) the adequacy of—

(A) inspection and monitoring procedures and facilities 

in the United States; and 

(B) the strategic plan developed under subsection 

(e)(5)(B)(i); and 

(3) new and potential technologies and practices, including 

recommendations regarding the technologies and practices, to 

improve import and entry agricultural inspection. 

(h) EFFECTIVE DATE.—The amendments made by this section 

take effect on the date that is 180 days after the date of enactment 

of this Act. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BOUSTANY

OF LOUISIANA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle A of title XI, add the following new section: 

SEC. 11013. 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. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSONLEE OF TEXAS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

At an appropriate place in title IV, insert the following (and 

make such technical and conforming changes as may be appropriate): 

SEC. lll 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. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HASTINGS

OF FLORIDA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title XI add the following new section: 

SEC. ll. 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; 


rfrederick on PROD1PC67 with HEARING
118 

(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 


rfrederick on PROD1PC67 with HEARING
119 

(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.’’. 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ARCURI OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR lll MINUTES

At the end of subtitle D of title I, add the following new section: 

SEC. 2410. ADJUSTMENT OF CLASS I MILK PRICE MOVER TO REFLECT 

ENERGY AND ANIMAL FEED COST INCREASES. 

It is the sense of Congress that the Secretary of Agriculture 

should use existing authority when determining the Class I milk 

price mover to take into account the increased cost of production, 

including energy and feed. 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WELCH

OF VERMONT, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Section 4303 is further amended by striking paragraph (2) and 

inserting the following: 

(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).’’. 


rfrederick on PROD1PC67 with HEARING
120 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WELCH

OF VERMONT, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 1409(b), insert after paragraph (6) the following new 

paragraph (and redesignate subsequent paragraphs): 

(7) evaluating cost of production variables, including cost of 

feed and cost of fuel; 

In section 1409(c)(3)(D), insert before the period at the end the 

following: ‘‘, including the Northeast, Southeast, Midwest, and 

Western regions of the country’’. 

In section 1409(d), strike ‘‘Not later than two years after the date 

of the first meeting of the commission,’’ and insert ‘‘Not later than 

18 months after the date of the enactment of this Act,’’. 

12. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE RANGEL

OF NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the appropriate place in the bill, insert the following new sections: 

SEC. ll. CLARIFICATION OF PAYMENT TERMS UNDER THE TRADE 

SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT 

OF 2000. 

Section 908(b)(4) of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7207(b)(4)) is amended—

(1) in subparagraph (B), by striking ‘‘and’’ at the end; 

(2) in subparagraph (C), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(D) the term ‘payment of cash in advance’ means, notwithstanding any other provision of law, the payment by 

the purchaser of an agricultural commodity or product and 

the receipt of such payment by the seller prior to—

‘‘(i) the transfer of title of such commodity or product to the purchaser; and 

‘‘(ii) the release of control of such commodity or 

product to the purchaser.’’. 

SEC. ll. AUTHORIZATION OF DIRECT TRANSFERS BETWEEN CUBAN 

AND UNITED STATES FINANCIAL INSTITUTIONS UNDER 

THE TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF 2000. 

(a) IN GENERAL.—Notwithstanding any other provision of law, 

the President may not restrict direct transfers from a Cuban depository institution to a United States depository institution executed 

in payment for a product authorized for sale under the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 7201 

et seq.). 

(b) DEPOSITORY INSTITUTION DEFINED.—In this section, the term 

‘‘depository institution’’ means any entity that is engaged primarily 

in the business of banking (including a bank, savings bank, savings 

association, credit union, trust company, or bank holding company). 

SEC. ll. ISSUANCE OF VISAS TO CONDUCT ACTIVITIES IN ACCORDANCE WITH THE TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF 2000. 

Notwithstanding any other provision of law, in the case of a 

Cuban national whose itinerary documents an intent to conduct acVerDate Aug 31 2005 08:35 Jul 27, 2007 Jkt 059008 PO 00000 Frm 00120 Fmt 6659 Sfmt 6602 E:\HR\OC\HR261.XXX HR261

rfrederick on PROD1PC67 with HEARING
121 

tivities, including phytosanitary inspections, related to purchasing 

United States agricultural goods under the provisions of the Trade 

Sanctions Reform and Export Enhancement Act of 2000, a consular 

officer (as defined in section 101(a)(9) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(9))) may issue a nonimmigrant visa 

under section 101(a)(15)(B) of such Act (8 U.S.C. 1101(a)(15)(B)) to 

the national, if the national is not inadmissible to the United 

States under section 212 of such Act (8 U.S.C. 1182). 

13. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BOEHNER

OF OHIO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 1204, add at the end the following new subsection: 

(i) RATE ADJUSTMENTS; DATE FOR DETERMINING REPAYMENT

RATE.—

(1) NO MORE THAN MONTHLY RATE ADJUSTMENTS.—Repayment rates established under this section shall be adjusted by 

the Secretary no more than once every month for all loan commodities. 

(2) DATE FOR DETERMINING REPAYMENT RATE.—With respect 

to the monthly repayment rates established under this section, 

the rate shall be—

(A) in the case of a producer who, as determined by the 

Secretary, loses beneficial interest immediately upon repayment of the loan, the monthly repayment rate that is 

in effect on the date beneficial interest is lost; and 

(B) in the case of other producers who did not lose beneficial interest upon repayment of the loan, the repayment 

rate in effect on the earlier of—

(i) the month in which the loan matures; or 

(ii) the last month of the marketing year established 

by the Secretary for the commodity. 

In section 1205(e), add at the end the following new sentence: 

‘‘However, the producers must have beneficial interest in the commodity for which a payment is requested under this section as of 

the date on which the producers request the payment.’’. 

14. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BERNICEJOHNSON OF TEXAS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle B of title VII, insert the following: 

SEC. 7234. 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,’’. 


rfrederick on PROD1PC67 with HEARING
122 

15. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MANZULLO OF ILLINOIS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike subsection (a) of section 1246 of the Food Security Act of 

1985, as added by section 2409(a) of the bill, and insert the following: 

‘‘(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 (other 

than the environmental quality incentives program) or as agricultural management assistance under section 524(b) of the 

Federal Crop Insurance Act (7 U.S.C. 524(b)); 

‘‘(2) $125,000 from more than one program under this title 

(other than the environmental quality incentives program) or 

as agricultural management assistance under section 524(b) of 

the Federal Crop Insurance Act; or 

‘‘(3) $450,000 from the environmental quality incentives program. 

16. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

BLUMENAUER OF OREGON, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

In section 1238I of the Food Security Act of 1985, as amended 

by section 2110, insert at the end of subsection (b) the following 

new sentence: ‘‘Grants may also be made for purchase of conservation easements or other interests in land pursuant to a transferable 

development rights program in which the entity acquiring the interests sells them for development in an urban area consistent with 

local land use plans, but grant funds may not be used to reduce 

the cost of development rights.’’. 

17. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE LATHUM

OF IOWA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 6008—

(1) insert ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—’’ before 

‘‘Section’’ ; and 

(2) add at the end the following: 

(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 individuallyowned 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 


rfrederick on PROD1PC67 with HEARING
123 

considered the provision of matching funds by the grantee for 

purposes of this section’’ before the period. 

18. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BERRY OF

ARKANSAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title II, add the following new section: 

SEC. 25ll. PROHIBITION ON CERTAIN NONPROFIT ORGANIZATIONS 

RECEIVING GOVERNMENT CONSERVATION PAYMENTS. 

A non-profit organization with more than $50,000,000 in direct 

public support (as listed on IRS form 990) may not receive any 

Government conservation payments under title XII of the Food Security Act 0f 1985, this Act, or any other conservation program of 

the Department of Agriculture. 

19. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE DAVIS OF

ILLINOIS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike the three sections in subtitle C of title I, and insert the 

following new sections: 

SEC. 1301. SUGAR PROGRAM. 

(a) FORFEITURE PENALTY.—Section 156(g) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(g)) is 

amended by adding at the end the following new paragraph: 

‘‘(3) FORFEITURE PENALTY.—The Secretary shall assess a penalty on the forfeiture of sugar pledged as collateral for a nonrecourse loan under this section. The penalty shall be 1 cent 

per pound for raw cane sugar and an equivalent amount, as 

determined by the Secretary, for refined beet sugar.’’. 

(b) EFFECTIVE PERIOD.—Section 156(j) of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7272(j)) is amended 

by striking ‘‘2007’’ and inserting ‘‘2012’’. 

SEC. 1302. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR. 

Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 

U.S.C. 1359bb(a)(1)) is amended in the matter preceding subparagraph (A) by striking ‘‘2007’’ and inserting ‘‘2012’’. 

Strike section 9013. 

20. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TERRY OF

NEBRASKA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title IX, add the following new section: 

SEC. ll. 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 10 universities for a 3-year 

program of demonstration of supplementing corn as an ethanol 

feedstock with sweet sorghum. 

(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—


rfrederick on PROD1PC67 with HEARING
124 

(A) developing best management practices for maintaining high sorghum 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 sweet sorghum 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 

$10,000,000. 

21. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE UDALL OF

COLORADO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 1102(b)(6), strike ‘‘$0.0667’’ and insert ‘‘$0.06’’. 

In section 2104 strike subsection (b) and insert the following new 

subsection: 

(b) ENROLLMENT OF ACREAGE.—Subsection (b)(1) of section 

1238N of the Food Security Act of 1985 (16 U.S.C. 3838n(1)) is 

amended by striking ‘‘2,000,000 acres’’ and inserting ‘‘2,224,000 

acres’’. In section 2401, insert after subsection (c) the following new subsection (and redesignate subsequent subsections accordingly): 

(d) GRASSLAND RESERVE PROGRAM.—Section 1241(a) of the Food 

Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 

paragraph (5) and inserting the following new paragraph: 


rfrederick on PROD1PC67 with HEARING
125 

‘‘(5) For each of fiscal years 2008 through 2012, the grassland reserve program under subchapter C of chapter 2.’’. 

22. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WU OF

OREGON, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 603, line 18, insert after ‘‘economies’’ the following: ‘‘or universities with fields of study capable of developing renewable energy technology or policy’’. 

Page 604, line 7, insert after ‘‘economy’’ the following: ‘‘, 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),’’. 

23. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CLAY OF

MISSOURI, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In subtitle B of title X, insert after section 10103 the following 

new section 10103A (and amend the tables of content accordingly): 

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) FUNDING.—The Secretary shall award such grants using, of 

the funds made available under section 32 of the Act of August 24, 

1935 (7 U.S.C. 612c), $20,000,000 in fiscal year 2008 and each fiscal year thereafter. 

24. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ISRAEL OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title XI add the following new sections: 


rfrederick on PROD1PC67 with HEARING
126 

SEC. ll. 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 


rfrederick on PROD1PC67 with HEARING
127 

‘‘(5) recommendations and conclusions concerning the aircraft environment as it relates to the carriage of live animals 

in air transportation.’’. 

SEC. ll. 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: 


rfrederick on PROD1PC67 with HEARING
128 

‘‘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. 

25. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PUTNAM

OF FLORIDA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the appropriate place in the conservation title, add the following new section: 

SEC. 2ll. ADJUSTED GROSS INCOME LIMITATION REGARDING PAYMENTS UNDER CONSERVATION PROGRAMS. 

Section 1001D(b)(1) of the Food Security Act of 1985 (7 U.S.C. 

1308–3a(b)(1)), as amended by section 1504 øand the manager’s 

amendment, pages 34 and 35¿, is further amended by adding at 

the end the following new subparagraph: 

‘‘(C) SPECIAL RULE FOR CONSERVATION PROGRAMS.—Notwithstanding subparagraphs (A) and (B), in the case of 

covered benefits described in paragraph (2)(C), an individual or entity shall not be eligible to receive any benefit 

described in such paragraph (2) during a crop year if the 

average adjusted gross income of the individual or entity 

exceeds $1,000,000, unless not less than 75 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.’’. 

26. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

BORDALLO OF GUAM, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

After section 7233, insert the following new section (and conform 

the table of contents accordingly): 

SEC. 7234. 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 


rfrederick on PROD1PC67 with HEARING
129 

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.’’. 

27. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE COOPER

OF TENNESSEE, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill, insert the following new title: 

TITLE XII—CROP INSURANCE 

SEC. 1201. CONTROLLING CROP INSURANCE PROGRAM COSTS. 

(a) ADMINISTRATIVE FEE FOR CATASTROPHIC RISK PROTECTION.—

Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 

1508(b)(5)) is amended by striking subparagraph (A) and inserting 

the following: 

‘‘(A) BASIC FEE.— ‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

each producer shall pay an administrative fee for catastrophic risk protection in an amount which is, as determined by the Corporation, equal to 25 percent of 

the premium amount for catastrophic risk protection 

established under subsection (d)(2)(A) per crop per 

county. ‘‘(ii) MAXIMUM AMOUNT.—The total amount of administrative fees for catastrophic risk protection payable by a producer under clause (i) shall not exceed 

$5,000 for all crops in all counties.’’. (b) PAYMENT OF PORTION OF PREMIUM BY CORPORATION.—Section 

508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is 

amended— (1) in subparagraph (B)(i), by striking ‘‘67 percent’’ and inserting ‘‘62 percent’’; 

(2) in subparagraph (C)(i), by striking ‘‘64 percent’’ and inserting ‘‘59 percent’’; 

(3) in subparagraph (D)(i), by striking ‘‘59 percent’’ and inserting ‘‘54 percent’’; 

(4) in subparagraph (E)(i), by striking ‘‘55 percent’’ and inserting ‘‘53 percent’’; 

(5) in subparagraph (F)(i), by striking ‘‘48 percent’’ and inserting ‘‘46 percent’’; and 

(6) in subparagraph (G)(i), by striking ‘‘38 percent’’ and inserting ‘‘36 percent’’. 

(c) REDUCTION IN PORTION OF THE PREMIUM PAID BY THE COR- PORATION.—Section 508(e) of the Federal Crop Insurance Act (7 

U.S.C. 1508(k)(3)) is amended by adding at the end the following: ‘‘(6) PREMIUM PAYMENT INCENTIVE.—The Corporation may increase payment of a part of the premium from the amounts 


rfrederick on PROD1PC67 with HEARING
130 

provided under subsection (e)(2) by not more than 5 percent for 

a policy or plan of insurance that is not based on individual 

yield to provide an additional incentive to create broader use 

of such policies.’’. 

(d) SHARE OF RISK.—Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(3)) is amended by striking paragraph (3) 

and inserting the following: 

‘‘(3) SHARE OF RISK.—The reinsurance agreements of the Corporation with the reinsured companies shall require the reinsured companies to cede to the Corporation 22 percent of its 

cumulative underwriting gain or loss.’’

SEC. 1202. CROP INSURANCE PROGRAM COMPLIANCE. 

(a) USE OF UNUSED FUNDING TO IMPROVE PROGRAM INTEGRITY.—

Section 522(e)(3) of the Federal Crop Insurance Act (7 U.S.C. 

1522(e)(3)) is amended by striking ‘‘the Corporation may use’’

through the end of the paragraph and inserting the following: ‘‘the 

Corporation may use—’’

‘‘(A) not more than $10,000,000 for each fiscal year to 

improve program integrity, such as 

‘‘(i) increasing the number of compliance personnel; 

‘‘(ii) increasing compliance related training; 

‘‘(iii) improving analysis tools and technology related 

to compliance; 

‘‘(iv) identifying, utilizing, and expanding innovative 

compliance strategies and technology; and 

‘‘(v) developing and maintaining the information 

management system developed pursuant to section 

10706(b) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 8002(b)); and 

‘‘(B) any excess amounts to carry out other activities authorized under this section.’’. 

(b) CONFORMING AMENDMENT REGARDING VIOLATION OF HIGHLY

ERODIBLE LAND CONSERVATION REQUIREMENTS.—Section 1211(a)(1) 

of the Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) is amended—

(1) by striking ‘‘or’’ at the end of subparagraph (C); 

(2) by inserting ‘‘or’’ at the end of subparagraph (D); and 

(3) by adding at the end the following new subparagraph: 

SEC. 1203. REAUTHORIZATION OF, AND INCREASED ENROLLMENT AUTHORITY FOR GRASSLAND RESERVE PROGRAM. 

(a) EXTENSION AND FUNDING.—Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking paragraph (5) and inserting the following new paragraph: 

‘‘(5) For each of fiscal years 2002 through 2013, the grassland reserve program under sub chapter C of chapter 2.’’. 

(b) ENROLLMENT GOALS.—Section 1238N(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3838N(b)(1)) is amended by striking 

‘‘2,000,000 acres’’ and inserting ‘‘5,000,000 acres’’. 

28. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE EMANUEL

OF ILLINOIS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle E of title I, add the following new section: 


rfrederick on PROD1PC67 with HEARING
131 

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. 

29. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HALL OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle C of title II, add the following new 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. 


rfrederick on PROD1PC67 with HEARING
132 

(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. 

30. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HODES OF

NEW HAMPSHIRE, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title IX add the following new section: 

SEC. ll. 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 


rfrederick on PROD1PC67 with HEARING
133 

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. 

31. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SHULER

OF NORTH CAROLINA, OR HIS DESIGNEE, DEBATABLE FOR 10 MIN- UTES

In section 404 of the Agricultural Credit Act of 1978, as added 

by section 8102, insert after subsection (c) the following new subsection (and redesignate subsequent subsections): ‘‘(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. 

Æ 


rfrederick on PROD1PC67 with HEARING