U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

86–435 

" ! HOUSE OF REPRESENTATIVES 113TH CONGRESS

2d Session 

REPORT

2014

113–333 

AGRICULTURAL ACT OF 2014 

CONFERENCE REPORT 

TO ACCOMPANY

H.R. 2642 

JANUARY 27, 2014.—Ordered to be printed 


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AGRICULTURAL ACT OF 2014 


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" ! HOUSE OF REPRESENTATIVES 113TH CONGRESS

2d Session 

REPORT

113–333 

AGRICULTURAL ACT OF 2014 

CONFERENCE REPORT 

TO ACCOMPANY

H.R. 2642 

JANUARY 27, 2014.—Ordered to be printed 


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86–435 

113TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 113–333 

AGRICULTURAL ACT OF 2014 

JANUARY 27, 2014.—Ordered to be printed 

Mr. LUCAS, from the committee on conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 2642] 

The committee of conference on the disagreeing votes of the 

two Houses on the amendment of the House to the amendment of 

the Senate to the bill (H.R. 2642), to provide for the reform and 

continuation of agricultural and other programs of the Department 

of Agriculture through fiscal year 2018, and for other purposes, 

having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: 

That the House recede from its amendment to the amendment 

of the Senate and agree to the same with an amendment as follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Agricultural 

Act of 2014’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act is 

as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary of Agriculture. 

TITLE I—COMMODITIES 

Subtitle A—Repeals and Reforms 

PART I—REPEALS

Sec. 1101. Repeal of direct payments. 

Sec. 1102. Repeal of counter-cyclical payments. 

Sec. 1103. Repeal of average crop revenue election program. 

PART II—COMMODITY POLICY

Sec. 1111. Definitions. 

Sec. 1112. Base acres. 

Sec. 1113. Payment yields. 


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Sec. 1114. Payment acres. 

Sec. 1115. Producer election. 

Sec. 1116. Price loss coverage. 

Sec. 1117. Agriculture risk coverage. 

Sec. 1118. Producer agreements. 

Sec. 1119. Transition assistance for producers of upland cotton. 

Subtitle B—Marketing Loans 

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities. 

Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 

Sec. 1203. Term of loans. 

Sec. 1204. Repayment of loans. 

Sec. 1205. Loan deficiency payments. 

Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 

Sec. 1207. Special marketing loan provisions for upland cotton. 

Sec. 1208. Special competitive provisions for extra long staple cotton. 

Sec. 1209. Availability of recourse loans for high moisture feed grains and seed cotton. 

Sec. 1210. Adjustments of loans. 

Subtitle C—Sugar 

Sec. 1301. Sugar policy. 

Subtitle D—Dairy 

PART I—MARGIN PROTECTION PROGRAM FOR DAIRY PRODUCERS

Sec. 1401. Definitions. 

Sec. 1402. Calculation of average feed cost and actual dairy production margins. 

Sec. 1403. Establishment of margin protection program for dairy producers. 

Sec. 1404. Participation of dairy operations in margin protection program. 

Sec. 1405. Production history of participating dairy operations. 

Sec. 1406. Margin protection payments. 

Sec. 1407. Premiums for margin protection program. 

Sec. 1408. Effect of failure to pay administrative fees or premiums. 

Sec. 1409. Duration. 

Sec. 1410. Administration and enforcement. 

PART II—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED PROVISIONS

Sec. 1421. Repeal of dairy product price support program. 

Sec. 1422. Temporary continuation and eventual repeal of milk income loss contract program. 

Sec. 1423. Repeal of dairy export incentive program. 

Sec. 1424. Extension of dairy forward pricing program. 

Sec. 1425. Extension of dairy indemnity program. 

Sec. 1426. Extension of dairy promotion and research program. 

Sec. 1427. Repeal of Federal Milk Marketing Order Review Commission. 

PART III—DAIRY PRODUCT DONATION PROGRAM

Sec. 1431. Dairy product donation program. 

Subtitle E—Supplemental Agricultural Disaster Assistance Programs 

Sec. 1501. Supplemental agricultural disaster assistance. 

Subtitle F—Administration 

Sec. 1601. Administration generally. 

Sec. 1602. Suspension of permanent price support authority. 

Sec. 1603. Payment limitations. 

Sec. 1604. Rulemaking related to significant contribution for active personal management. 

Sec. 1605. Adjusted gross income limitation. 

Sec. 1606. Geographically disadvantaged farmers and ranchers. 

Sec. 1607. Personal liability of producers for deficiencies. 

Sec. 1608. Prevention of deceased individuals receiving payments under farm commodity programs. 

Sec. 1609. Technical corrections. 

Sec. 1610. Appeals. 

Sec. 1611. Assignment of payments. 


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Sec. 1612. Tracking of benefits. 

Sec. 1613. Signature authority. 

Sec. 1614. Implementation. 

Sec. 1615. Research option. 

TITLE II—CONSERVATION 

Subtitle A—Conservation Reserve Program 

Sec. 2001. Extension and enrollment requirements of conservation reserve program. 

Sec. 2002. Farmable wetland program. 

Sec. 2003. Duties of owners and operators. 

Sec. 2004. Duties of the Secretary. 

Sec. 2005. Payments. 

Sec. 2006. Contract requirements. 

Sec. 2007. Conversion of land subject to contract to other conserving uses. 

Sec. 2008. Effect on existing contracts. 

Subtitle B—Conservation Stewardship Program 

Sec. 2101. Conservation stewardship program. 

Subtitle C—Environmental Quality Incentives Program 

Sec. 2201. Purposes. 

Sec. 2202. Definitions. 

Sec. 2203. Establishment and administration. 

Sec. 2204. Evaluation of applications. 

Sec. 2205. Duties of producers. 

Sec. 2206. Limitation on payments. 

Sec. 2207. Conservation innovation grants and payments. 

Sec. 2208. Effect on existing contracts. 

Subtitle D—Agricultural Conservation Easement Program 

Sec. 2301. Agricultural conservation easement program. 

Subtitle E—Regional Conservation Partnership Program 

Sec. 2401. Regional conservation partnership program. 

Subtitle F—Other Conservation Programs 

Sec. 2501. Conservation of private grazing land. 

Sec. 2502. Grassroots source water protection program. 

Sec. 2503. Voluntary public access and habitat incentive program. 

Sec. 2504. Agriculture conservation experienced services program. 

Sec. 2505. Small watershed rehabilitation program. 

Sec. 2506. Emergency watershed protection program. 

Sec. 2507. Terminal Lakes. 

Sec. 2508. Soil and Water Resources Conservation. 

Subtitle G—Funding and Administration 

Sec. 2601. Funding. 

Sec. 2602. Technical assistance. 

Sec. 2603. Regional equity. 

Sec. 2604. Reservation of funds to provide assistance to certain farmers or ranchers 

for conservation access. 

Sec. 2605. Annual report on program enrollments and assistance. 

Sec. 2606. Administrative requirements applicable to all conservation programs. 

Sec. 2607. Standards for State technical committees. 

Sec. 2608. Rulemaking authority. 

Sec. 2609. Wetlands mitigation. 

Sec. 2610. Lesser prairie-chicken conservation report. 

Sec. 2611. Highly erodible land and wetland conservation for crop insurance. 

Subtitle H—Repeal of Superseded Program Authorities and Transitional Provisions; 

Technical Amendments 

Sec. 2701. Comprehensive conservation enhancement program. 

Sec. 2702. Emergency forestry conservation reserve program. 

Sec. 2703. Wetlands reserve program. 

Sec. 2704. Farmland protection program and farm viability program. 


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Sec. 2705. Grassland reserve program. 

Sec. 2706. Agricultural water enhancement program. 

Sec. 2707. Wildlife habitat incentive program. 

Sec. 2708. Great Lakes basin program. 

Sec. 2709. Chesapeake Bay watershed program. 

Sec. 2710. Cooperative conservation partnership initiative. 

Sec. 2711. Environmental easement program. 

Sec. 2712. Temporary administration of conservation programs. 

Sec. 2713. Technical amendments. 

TITLE III—TRADE 

Subtitle A—Food for Peace Act 

Sec. 3001. General authority. 

Sec. 3002. Set-aside for support for organizations through which nonemergency assistance is provided. 

Sec. 3003. Food aid quality. 

Sec. 3004. Minimum levels of assistance. 

Sec. 3005. Food Aid Consultative Group. 

Sec. 3006. Oversight, monitoring, and evaluation. 

Sec. 3007. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods. 

Sec. 3008. Impact on local farmers and economy and report on use of funds. 

Sec. 3009. Prepositioning of agricultural commodities. 

Sec. 3010. Annual report regarding food aid programs and activities. 

Sec. 3011. Deadline for agreements to finance sales or to provide other assistance. 

Sec. 3012. Minimum level of nonemergency food assistance. 

Sec. 3013. Micronutrient fortification programs. 

Sec. 3014. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 

Sec. 3015. Coordination of foreign assistance programs report. 

Subtitle B—Agricultural Trade Act of 1978 

Sec. 3101. Export credit guarantee program. 

Sec. 3102. Funding for market access program. 

Sec. 3103. Foreign market development cooperator program. 

Subtitle C—Other Agricultural Trade Laws 

Sec. 3201. Food for Progress Act of 1985. 

Sec. 3202. Bill Emerson Humanitarian Trust Act. 

Sec. 3203. Promotion of agricultural exports to emerging markets. 

Sec. 3204. McGovern-Dole International Food for Education and Child Nutrition 

Program. 

Sec. 3205. Technical assistance for specialty crops. 

Sec. 3206. Global Crop Diversity Trust. 

Sec. 3207. Local and regional food aid procurement projects. 

Sec. 3208. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. 

TITLE IV—NUTRITION 

Subtitle A—Supplemental Nutrition Assistance Program 

Sec. 4001. Preventing payment of cash to recipients of supplemental nutrition assistance benefits for the return of empty bottles and cans used to contain food purchased with benefits provided under the program. 

Sec. 4002. Retail food stores. 

Sec. 4003. Enhancing services to elderly and disabled supplemental nutrition assistance program participants. 

Sec. 4004. Food distribution program on Indian reservations. 

Sec. 4005. Exclusion of medical marijuana from excess medical expense deduction. 

Sec. 4006. Standard utility allowances based on the receipt of energy assistance 

payments. 

Sec. 4007. Eligibility disqualifications. 

Sec. 4008. Eligibility disqualifications for certain convicted felons. 

Sec. 4009. Ending supplemental nutrition assistance program benefits for lottery or 

gambling winners. 

Sec. 4010. Improving security of food assistance. 

Sec. 4011. Technology modernization for retail food stores. 

Sec. 4012. Use of benefits for purchase of community-supported agriculture share. 

Sec. 4013. Improved wage verification using the National Directory of New Hires. 


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Sec. 4014. Restaurant meals program. 

Sec. 4015. Mandating State immigration verification. 

Sec. 4016. Data exchange standardization for improved interoperability. 

Sec. 4017. Pilot projects to improve Federal-State cooperation in identifying and reducing fraud in the supplemental nutrition assistance program. 

Sec. 4018. Prohibiting government-sponsored recruitment activities. 

Sec. 4019. Tolerance level for excluding small errors. 

Sec. 4020. Quality control standards. 

Sec. 4021. Performance bonus payments. 

Sec. 4022. Pilot projects to reduce dependency and increase work requirements and 

work effort under supplemental nutrition assistance program. 

Sec. 4023. Cooperation with program research and evaluation. 

Sec. 4024. Authorization of appropriations. 

Sec. 4025. Review, report, and regulation of cash nutrition assistance program benefits provided in Puerto Rico. 

Sec. 4026. Assistance for community food projects. 

Sec. 4027. Emergency food assistance. 

Sec. 4028. Nutrition education. 

Sec. 4029. Retail food store and recipient trafficking. 

Sec. 4030. Technical and conforming amendments. 

Sec. 4031. Commonwealth of the Northern Mariana Islands pilot program. 

Sec. 4032. Annual State report on verification of SNAP participation. 

Sec. 4033. Service of traditional foods in public facilities. 

Subtitle B—Commodity Distribution Programs 

Sec. 4101. Commodity distribution program. 

Sec. 4102. Commodity supplemental food program. 

Sec. 4103. Distribution of surplus commodities to special nutrition projects. 

Sec. 4104. Processing of commodities. 

Subtitle C—Miscellaneous 

Sec. 4201. Purchase of fresh fruits and vegetables for distribution to schools and 

service institutions. 

Sec. 4202. Pilot project for procurement of unprocessed fruits and vegetables. 

Sec. 4203. Seniors farmers’ market nutrition program. 

Sec. 4204. Dietary Guidelines for Americans. 

Sec. 4205. Multiagency task force. 

Sec. 4206. Healthy Food Financing Initiative. 

Sec. 4207. Purchase of Halal and Kosher food for emergency food assistance program. 

Sec. 4208. Food insecurity nutrition incentive. 

Sec. 4209. Food and agriculture service learning program. 

Sec. 4210. Nutrition information and awareness pilot program. 

Sec. 4211. Termination of existing agreement. 

Sec. 4212. Review of sole-source contracts in Federal nutrition programs. 

Sec. 4213. Pulse crop products. 

Sec. 4214. Pilot project for canned, frozen, or dried fruits and vegetables. 

TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

Sec. 5001. Eligibility for farm ownership loans. 

Sec. 5002. Conservation loan and loan guarantee program. 

Sec. 5003. Joint financing arrangements. 

Sec. 5004. Elimination of mineral rights appraisal requirement. 

Sec. 5005. Down payment loan program. 

Subtitle B—Operating Loans 

Sec. 5101. Eligibility for farm operating loans. 

Sec. 5102. Elimination of rural residency requirement for operating loans to youth. 

Sec. 5103. Defaults by youth loan borrowers. 

Sec. 5104. Term limits on direct operating loans. 

Sec. 5105. Valuation of local or regional crops. 

Sec. 5106. Microloans. 

Sec. 5107. Term limits on guaranteed operating loans. 

Subtitle C—Emergency Loans 

Sec. 5201. Eligibility for emergency loans. 


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Subtitle D—Administrative Provisions 

Sec. 5301. Beginning farmer and rancher individual development accounts pilot 

program. 

Sec. 5302. Farmer loan pilot projects. 

Sec. 5303. Definition of qualified beginning farmer or rancher. 

Sec. 5304. Loan authorization levels. 

Sec. 5305. Loan fund set-asides. 

Sec. 5306. Borrower training. 

Subtitle E—Miscellaneous 

Sec. 5401. State agricultural mediation programs. 

Sec. 5402. Loans to purchasers of highly fractionated land. 

Sec. 5403. Removal of duplicative appraisals. 

Sec. 5404. Compensation disclosure by Farm Credit System institutions. 

TITLE VI—RURAL DEVELOPMENT 

Subtitle A—Consolidated Farm and Rural Development Act 

Sec. 6001. Water, waste disposal, and wastewater facility grants. 

Sec. 6002. Elimination of reservation of community facilities grant program funds. 

Sec. 6003. Rural water and wastewater circuit rider program. 

Sec. 6004. Use of loan guarantees for community facilities. 

Sec. 6005. Tribal college and university essential community facilities. 

Sec. 6006. Essential community facilities technical assistance and training. 

Sec. 6007. Emergency and imminent community water assistance grant program. 

Sec. 6008. Water systems for rural and native villages in Alaska. 

Sec. 6009. Household water well systems. 

Sec. 6010. Rural business and industry loan program. 

Sec. 6011. Solid waste management grants. 

Sec. 6012. Rural business development grants. 

Sec. 6013. Rural cooperative development grants. 

Sec. 6014. Locally or regionally produced agricultural food products. 

Sec. 6015. Appropriate technology transfer for rural areas program. 

Sec. 6016. Rural economic area partnership zones. 

Sec. 6017. Intermediary relending program. 

Sec. 6018. Rural college coordinated strategy. 

Sec. 6019. Rural water and waste disposal infrastructure. 

Sec. 6020. Simplified applications. 

Sec. 6021. National Rural Development Partnership. 

Sec. 6022. Grants for NOAA weather radio transmitters. 

Sec. 6023. Rural microentrepreneur assistance program. 

Sec. 6024. Health care services. 

Sec. 6025. Strategic economic and community development. 

Sec. 6026. Delta Regional Authority. 

Sec. 6027. Northern Great Plains Regional Authority. 

Sec. 6028. Rural business investment program. 

Subtitle B—Rural Electrification Act of 1936 

Sec. 6101. Fees for certain loan guarantees. 

Sec. 6102. Guarantees for bonds and notes issued for electrification or telephone 

purposes. 

Sec. 6103. Expansion of 911 access. 

Sec. 6104. Access to broadband telecommunications services in rural areas. 

Sec. 6105. Rural Gigabit Network Pilot Program. 

Subtitle C—Miscellaneous 

Sec. 6201. Distance learning and telemedicine. 

Sec. 6202. Agricultural transportation. 

Sec. 6203. Value-added agricultural product market development grants. 

Sec. 6204. Agriculture innovation center demonstration program. 

Sec. 6205. Rural energy savings program. 

Sec. 6206. Study of rural transportation issues. 

Sec. 6207. Regional economic and infrastructure development. 

Sec. 6208. Definition of rural area for purposes of the Housing Act of 1949. 

Sec. 6209. Program metrics. 

Sec. 6210. Funding of pending rural development loan and grant applications. 


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TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 

Subtitle A—National Agricultural Research, Extension, and Teaching Policy Act of 

1977 

Sec. 7101. Option to be included as non-land-grant college of agriculture. 

Sec. 7102. National Agricultural Research, Extension, Education, and Economics 

Advisory Board. 

Sec. 7103. Specialty crop committee. 

Sec. 7104. Veterinary services grant program. 

Sec. 7105. Grants and fellowships for food and agriculture sciences education. 

Sec. 7106. Agricultural and food policy research centers. 

Sec. 7107. Education grants to Alaska Native serving institutions and Native Hawaiian serving institutions. 

Sec. 7108. Repeal of human nutrition intervention and health promotion research 

program. 

Sec. 7109. Repeal of pilot research program to combine medical and agricultural research. 

Sec. 7110. Nutrition education program. 

Sec. 7111. Continuing animal health and disease research programs. 

Sec. 7112. Grants to upgrade agricultural and food sciences facilities at 1890 landgrant colleges, including Tuskegee University. 

Sec. 7113. Grants to upgrade agriculture and food science facilities and equipment 

at insular area land-grant institutions. 

Sec. 7114. Repeal of national research and training virtual centers. 

Sec. 7115. Hispanic-serving institutions. 

Sec. 7116. Competitive Grants Program for Hispanic Agricultural Workers and 

Youth. 

Sec. 7117. Competitive grants for international agricultural science and education 

programs. 

Sec. 7118. Repeal of research equipment grants. 

Sec. 7119. University research. 

Sec. 7120. Extension service. 

Sec. 7121. Auditing, reporting, bookkeeping, and administrative requirements. 

Sec. 7122. Supplemental and alternative crops. 

Sec. 7123. Capacity building grants for NLGCA institutions. 

Sec. 7124. Aquaculture assistance programs. 

Sec. 7125. Rangeland research programs. 

Sec. 7126. Special authorization for biosecurity planning and response. 

Sec. 7127. Distance education and resident instruction grants program for insular 

area institutions of higher education. 

Sec. 7128. Matching funds requirement. 

Sec. 7129. Designation of Central State University as 1890 institution. 

Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 

Sec. 7201. Best utilization of biological applications. 

Sec. 7202. Integrated management systems. 

Sec. 7203. Sustainable agriculture technology development and transfer program. 

Sec. 7204. National training program. 

Sec. 7205. National Genetics Resources Program. 

Sec. 7206. National Agricultural Weather Information System. 

Sec. 7207. Repeal of rural electronic commerce extension program. 

Sec. 7208. Agricultural Genome Initiative. 

Sec. 7209. High-priority research and extension initiatives. 

Sec. 7210. Repeal of nutrient management research and extension initiative. 

Sec. 7211. Organic agriculture research and extension initiative. 

Sec. 7212. Repeal of agricultural bioenergy feedstock and energy efficiency research 

and extension initiative. 

Sec. 7213. Farm business management. 

Sec. 7214. Centers of excellence. 

Sec. 7215. Repeal of red meat safety research center. 

Sec. 7216. Assistive technology program for farmers with disabilities. 

Sec. 7217. National rural information center clearinghouse. 

Subtitle C—Agricultural Research, Extension, and Education Reform Act of 1998 

Sec. 7301. Relevance and merit of agricultural research, extension, and education 

funded by the Department. 

Sec. 7302. Integrated research, education, and extension competitive grants program. 


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Sec. 7303. Support for research regarding diseases of wheat, triticale, and barley 

caused by Fusarium graminearum or by Tilletia indica. 

Sec. 7304. Repeal of Bovine Johne’s disease control program. 

Sec. 7305. Grants for youth organizations. 

Sec. 7306. Specialty crop research initiative. 

Sec. 7307. [H7308] Food animal residue avoidance database program. 

Sec. 7308. Repeal of national swine research center. 

Sec. 7309. Office of pest management policy. 

Sec. 7310. Forestry products advanced utilization research. 

Sec. 7311. Repeal of studies of agricultural research, extension, and education. 

Subtitle D—Other Laws 

Sec. 7401. Critical Agricultural Materials Act. 

Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. 

Sec. 7403. Research Facilities Act. 

Sec. 7404. Competitive, Special, and Facilities Research Grant Act. 

Sec. 7405. Renewable Resources Extension Act of 1978. 

Sec. 7406. National Aquaculture Act of 1980. 

Sec. 7407. Repeal of use of remote sensing data. 

Sec. 7408. Repeal of reports under Farm Security and Rural Investment Act of 

2002. 

Sec. 7409. Beginning farmer and rancher development program. 

Sec. 7410. National Agricultural Research, Extension, and Teaching Policy Act 

Amendments of 1985. 

Subtitle E—Food, Conservation, and Energy Act of 2008 

PART I—AGRICULTURAL SECURITY

Sec. 7501. Agricultural biosecurity communication center. 

Sec. 7502. Assistance to build local capacity in agricultural biosecurity planning, 

preparation, and response. 

Sec. 7503. Research and development of agricultural countermeasures. 

Sec. 7504. Agricultural biosecurity grant program. 

PART II—MISCELLANEOUS PROVISIONS

Sec. 7511. Enhanced use lease authority pilot program. 

Sec. 7512. Grazinglands research laboratory. 

Sec. 7513. Budget submission and funding. 

Sec. 7514. Repeal of seed distribution. 

Sec. 7515. Natural products research program. 

Sec. 7516. Sun grant program. 

Sec. 7517. Repeal of study and report on food deserts. 

Sec. 7518. Repeal of agricultural and rural transportation research and education. 

Subtitle F—Miscellaneous Provisions 

Sec. 7601. Foundation for Food and Agriculture Research. 

Sec. 7602. Concessions and agreements with nonprofit organizations for National 

Arboretum. 

Sec. 7603. Agricultural and food law research, legal tools, and information. 

Sec. 7604. Cotton Disease Research Report. 

Sec. 7605. Miscellaneous technical corrections. 

Sec. 7606. Legitimacy of industrial hemp research. 

TITLE VIII—FORESTRY 

Subtitle A—Repeal of Certain Forestry Programs 

Sec. 8001. Forest land enhancement program. 

Sec. 8002. Watershed forestry assistance program. 

Sec. 8003. Expired cooperative national forest products marketing program. 

Sec. 8004. Hispanic-serving institution agricultural land national resources leadership program. 

Sec. 8005. Tribal watershed forestry assistance program. 

Sec. 8006. Separate Forest Service decisionmaking and appeals process. 

Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 

Programs 

Sec. 8101. State-wide assessment and strategies for forest resources. 


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Subtitle C—Reauthorization of Other Forestry-related Laws 

Sec. 8201. Rural revitalization technologies. 

Sec. 8202. Office of International Forestry. 

Sec. 8203. Healthy forests reserve program. 

Sec. 8204. Insect and disease infestation. 

Sec. 8205. Stewardship end result contracting projects. 

Sec. 8206. Good neighbor authority. 

Subtitle D—Miscellaneous Provisions 

Sec. 8301. Revision of strategic plan for forest inventory and analysis. 

Sec. 8302. Forest service participation in ACES program. 

Sec. 8303. Extension of stewardship contracts authority regarding use of designation by prescription to all thinning sales under National Forest Management Act of 1976. 

Sec. 8304. Reimbursement of fire funds. 

Sec. 8305. Forest Service large airtanker and aerial asset firefighting recapitalization pilot program. 

Sec. 8306. Land conveyance, Jefferson National Forest in Wise County, Virginia. 

TITLE IX—ENERGY 

Sec. 9001. Definitions. 

Sec. 9002. Biobased markets program. 

Sec. 9003. Biorefinery assistance. 

Sec. 9004. Repowering assistance program. 

Sec. 9005. Bioenergy program for advanced biofuels. 

Sec. 9006. Biodiesel fuel education program. 

Sec. 9007. Rural Energy for America Program. 

Sec. 9008. Biomass research and development. 

Sec. 9009. Feedstock Flexibility Program for Bioenergy Producers. 

Sec. 9010. Biomass Crop Assistance Program. 

Sec. 9011. Repeal of forest biomass for energy. 

Sec. 9012. Community wood energy program. 

Sec. 9013. Repeal of biofuels infrastructure study. 

Sec. 9014. Repeal of renewable fertilizer study. 

Sec. 9015. Energy efficiency report for USDA facilities. 

TITLE X—HORTICULTURE 

Sec. 10001. Specialty crops market news allocation. 

Sec. 10002. Repeal of grant program to improve movement of specialty crops. 

Sec. 10003. Farmers’ market and local food promotion program. 

Sec. 10004. Organic agriculture. 

Sec. 10005. Investigations and enforcement of the Organic Foods Production Act of 

1990. 

Sec. 10006. Food safety education initiatives. 

Sec. 10007. Consolidation of plant pest and disease management and disaster prevention programs. 

Sec. 10008. Importation of seed. 

Sec. 10009. Bulk shipments of apples to Canada. 

Sec. 10010. Specialty crop block grants. 

Sec. 10011. Department of Agriculture consultation regarding enforcement of certain labor law provisions. 

Sec. 10012. Report on honey. 

Sec. 10013. Reports to Congress. 

Sec. 10014. Stay of regulations. 

Sec. 10015. Regulation of sulfuryl fluoride. 

Sec. 10016. Local food production and program evaluation. 

Sec. 10017. Clarification of use of funds for technical assistance. 

TITLE XI—CROP INSURANCE 

Sec. 11001. Information sharing. 

Sec. 11002. Publication of information on violations of prohibition on premium adjustments. 

Sec. 11003. Supplemental coverage option. 

Sec. 11004. Crop margin coverage option. 

Sec. 11005. Premium amounts for catastrophic risk protection. 

Sec. 11006. Permanent enterprise unit subsidy. 

Sec. 11007. Enterprise units for irrigated and nonirrigated crops. 

Sec. 11008. Data collection. 


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Sec. 11009. Adjustment in actual production history to establish insurable yields. 

Sec. 11010. Submission of policies and Board review and approval. 

Sec. 11011. Consultation. 

Sec. 11012. Budget limitations on renegotiation of the standard reinsurance agreement. 

Sec. 11013. Test weight for corn. 

Sec. 11014. Crop production on native sod. 

Sec. 11015. Coverage levels by practice. 

Sec. 11016. Beginning farmer and rancher provisions. 

Sec. 11017. Stacked income protection plan for producers of upland cotton. 

Sec. 11018. Peanut revenue crop insurance. 

Sec. 11019. Authority to correct errors. 

Sec. 11020. Implementation. 

Sec. 11021. Crop insurance fraud. 

Sec. 11022. Research and development priorities. 

Sec. 11023. Crop insurance for organic crops. 

Sec. 11024. Program compliance partnerships. 

Sec. 11025. Pilot programs. 

Sec. 11026. Index-based weather insurance pilot program. 

Sec. 11027. Enhancing producer self-help through farm financial benchmarking. 

Sec. 11028. Technical amendments. 

TITLE XII—MISCELLANEOUS 

Subtitle A—Livestock 

Sec. 12101. Trichinae certification program. 

Sec. 12102. Sheep production and marketing grant program. 

Sec. 12103. National Aquatic Animal Health Plan. 

Sec. 12104. Country of origin labeling. 

Sec. 12105. National animal health laboratory network. 

Sec. 12106. Food safety inspection. 

Sec. 12107. National Poultry Improvement Plan. 

Sec. 12108. Sense of Congress regarding feral swine eradication. 

Subtitle B—Socially Disadvantaged Producers and Limited Resource Producers 

Sec. 12201. Outreach and assistance for socially disadvantaged farmers and ranchers and veteran farmers and ranchers. 

Sec. 12202. Office of Advocacy and Outreach. 

Sec. 12203. Socially Disadvantaged Farmers and Ranchers Policy Research Center. 

Sec. 12204. Receipt for service or denial of service from certain department of agriculture agencies. 

Subtitle C—Other Miscellaneous Provisions 

Sec. 12301. Grants to improve supply, stability, safety, and training of agricultural 

labor force. 

Sec. 12302. Program benefit eligibility status for participants in high plains water 

study. 

Sec. 12303. Office of Tribal Relations. 

Sec. 12304. Military Veterans Agricultural Liaison. 

Sec. 12305. Noninsured crop assistance program. 

Sec. 12306. Acer access and development program. 

Sec. 12307. Science Advisory Board. 

Sec. 12308. Amendments to Animal Welfare Act. 

Sec. 12309. Produce represented as grown in the United States when it is not in 

fact grown in the United States. 

Sec. 12310. Report on water sharing. 

Sec. 12311. Scientific and economic analysis of the FDA Food Safety Modernization 

Act. 

Sec. 12312. Payment in lieu of taxes. 

Sec. 12313. Silvicultural activities. 

Sec. 12314. Pima agriculture cotton trust fund. 

Sec. 12315. Agriculture Wool Apparel Manufacturers Trust Fund. 

Sec. 12316. Wool research and promotion. 

Subtitle D—Oilheat Efficiency, Renewable Fuel Research and Jobs Training 

Sec. 12401. Short title. 

Sec. 12402. Findings and purposes. 

Sec. 12403. Definitions. 


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Sec. 12404. Membership. 

Sec. 12405. Functions. 

Sec. 12406. Assessments. 

Sec. 12407. Market survey and consumer protection. 

Sec. 12408. Lobbying restrictions. 

Sec. 12409. Noncompliance. 

Sec. 12410. Sunset. 

SEC. 2. DEFINITION OF SECRETARY OF AGRICULTURE. 

In this Act, the term ‘‘Secretary’’ means the Secretary of Agriculture. 

TITLE I—COMMODITIES 

Subtitle A—Repeals and Reforms 

PART I—REPEALS 

SEC. 1101. REPEAL OF DIRECT PAYMENTS. 

Sections 1103 and 1303 of the Food, Conservation, and Energy 

Act of 2008 (7 U.S.C. 8713, 8753) are repealed. 

SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS. 

(a) REPEAL.—Sections 1104 and 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754) are repealed. 

(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.—Sections 

1104 and 1304 of the Food, Conservation, and Energy Act of 2008 

(7 U.S.C. 8714, 8754), as in effect on the day before the date of enactment of this Act, shall continue to apply through the 2013 crop 

year with respect to all covered commodities (as defined in section 

1001 of that Act (7 U.S.C. 8702)) and peanuts on a farm. 

SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION PROGRAM. 

(a) REPEAL.—Section 1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8715) is repealed. 

(b) CONTINUED APPLICATION FOR 2013 CROP YEAR.—Section 

1105 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 

8715), as in effect on the day before the date of enactment of this 

Act, shall continue to apply through the 2013 crop year with respect to all covered commodities (as defined in section 1001 of that 

Act (7 U.S.C. 8702)) and peanuts on a farm for which the irrevocable election under section 1105 of that Act was made before the 

date of enactment of this Act. 

PART II—COMMODITY POLICY 

SEC. 1111. DEFINITIONS. 

In this subtitle and subtitle B: 

(1) ACTUAL CROP REVENUE.—The term ‘‘actual crop revenue’’, with respect to a covered commodity for a crop year, 

means the amount determined by the Secretary under section 

1117(b). 

(2) AGRICULTURE RISK COVERAGE.—The term ‘‘agriculture 

risk coverage’’ means coverage provided under section 1117. 

(3) AGRICULTURE RISK COVERAGE GUARANTEE.—The term 

‘‘agriculture risk coverage guarantee’’, with respect to a covered 


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commodity for a crop year, means the amount determined by 

the Secretary under section 1117(c). 

(4) BASE ACRES.— 

(A) IN GENERAL.—The term ‘‘base acres’’, with respect 

to a covered commodity on a farm, means the number of 

acres in effect under sections 1001 and 1301 of the Food, 

Conservation, and Energy Act of 2008 (7 U.S.C. 8702, 

8751), as adjusted pursuant to sections 1101, 1108, and 

1302 of such Act (7 U.S.C. 8711, 8718, 8752), as in effect 

on September 30, 2013, subject to any reallocation, adjustment, or reduction under section 1112 of this Act. 

(B) INCLUSION OF GENERIC BASE ACRES.—The term 

‘‘base acres’’ includes any generic base acres planted to a 

covered commodity as determined in section 1114(b). 

(5) COUNTY COVERAGE.—The term ‘‘county coverage’’ 

means agriculture risk coverage selected under section 

1115(b)(1) to be obtained at the county level. 

(6) COVERED COMMODITY.—The term ‘‘covered commodity’’ 

means wheat, oats, and barley (including wheat, oats, and barley used for haying and grazing), corn, grain sorghum, long 

grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts. 

(7) EFFECTIVE PRICE.—The term ‘‘effective price’’, with respect to a covered commodity for a crop year, means the price 

calculated by the Secretary under section 1116(b) to determine 

whether price loss coverage payments are required to be provided for that crop year. 

(8) EXTRA LONG STAPLE COTTON.—The term ‘‘extra long 

staple cotton’’ means cotton that— 

(A) is produced from pure strain varieties of the 

Barbadense species or any hybrid of the species, or other 

similar types of extra long staple cotton, designated by the 

Secretary, having characteristics needed for various end 

uses for which United States upland cotton is not suitable 

and grown in irrigated cotton-growing regions of the 

United States designated by the Secretary or other areas 

designated by the Secretary as suitable for the production 

of the varieties or types; and 

(B) is ginned on a roller-type gin or, if authorized by 

the Secretary, ginned on another type gin for experimental 

purposes. 

(9) GENERIC BASE ACRES.—The term ‘‘generic base acres’’ 

means the number of base acres for cotton in effect under section 1001 of the Food, Conservation, and Energy Act of 2008 

(7 U.S.C. 8702), as adjusted pursuant to section 1101 of such 

Act (7 U.S.C. 8711), as in effect on September 30, 2013, subject 

to any adjustment or reduction under section 1112 of this Act. 

(10) INDIVIDUAL COVERAGE.—The term ‘‘individual coverage’’ means agriculture risk coverage selected under section 

1115(b)(2) to be obtained at the farm level. 

(11) MEDIUM GRAIN RICE.—The term ‘‘medium grain rice’’ 

includes short grain rice and temperate japonica rice. 

(12) OTHER OILSEED.—The term ‘‘other oilseed’’ means a 

crop of sunflower seed, rapeseed, canola, safflower, flaxseed, 


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mustard seed, crambe, sesame seed, or any oilseed designated 

by the Secretary. 

(13) PAYMENT ACRES.—The term ‘‘payment acres’’, with respect to the provision of price loss coverage payments and agriculture risk coverage payments, means the number of acres determined for a farm under section 1114. 

(14) PAYMENT YIELD.—The term ‘‘payment yield’’, for a 

farm for a covered commodity— 

(A) means the yield used to make payments pursuant 

to section 1104 or 1304 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on September 30, 2013; or 

(B) means the yield established under section 1113 of 

this Act. 

(15) PRICE LOSS COVERAGE.—The term ‘‘price loss coverage’’ means coverage provided under section 1116. 

(16) PRODUCER.— 

(A) IN GENERAL.—The term ‘‘producer’’ means an 

owner, operator, landlord, tenant, or sharecropper that 

shares in the risk of producing a crop and is entitled to 

share in the crop available for marketing from the farm, 

or would have shared had the crop been produced. 

(B) HYBRID SEED.—In determining whether a grower 

of hybrid seed is a producer, the Secretary shall— 

(i) not take into consideration the existence of a 

hybrid seed contract; and 

(ii) ensure that program requirements do not adversely affect the ability of the grower to receive a 

payment under this title. 

(17) PULSE CROP.—The term ‘‘pulse crop’’ means dry peas, 

lentils, small chickpeas, and large chickpeas. 

(18) REFERENCE PRICE.—The term ‘‘reference price’’, with 

respect to a covered commodity for a crop year, means the following: 

(A) For wheat, $5.50 per bushel. 

(B) For corn, $3.70 per bushel. 

(C) For grain sorghum, $3.95 per bushel. 

(D) For barley, $4.95 per bushel. 

(E) For oats, $2.40 per bushel. 

(F) For long grain rice, $14.00 per hundredweight. 

(G) For medium grain rice, $14.00 per hundredweight. 

(H) For soybeans, $8.40 per bushel. 

(I) For other oilseeds, $20.15 per hundredweight. 

(J) For peanuts, $535.00 per ton. 

(K) For dry peas, $11.00 per hundredweight. 

(L) For lentils, $19.97 per hundredweight. 

(M) For small chickpeas, $19.04 per hundredweight. 

(N) For large chickpeas, $21.54 per hundredweight. 

(19) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture. 

(20) STATE.—The term ‘‘State’’ means— 

(A) a State; 

(B) the District of Columbia; 

(C) the Commonwealth of Puerto Rico; and 


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(D) any other territory or possession of the United 

States. 

(21) TEMPERATE JAPONICA RICE.—The term ‘‘temperate japonica rice’’ means rice that is grown in high altitudes or temperate regions of high latitudes with cooler climate conditions, 

in the Western United States, as determined by the Secretary, 

for the purpose of— 

(A) the reallocation of base acres under section 1112; 

(B) the establishment of a reference price (as required 

under section 1116(g)) and an effective price pursuant to 

section 1116; and 

(C) the determination of the actual crop revenue and 

agriculture risk coverage guarantee pursuant to section 

1117. 

(22) TRANSITIONAL YIELD.—The term ‘‘transitional yield’’ 

has the meaning given the term in section 502(b) of the Federal Crop Insurance Act (7 U.S.C. 1502(b)). 

(23) UNITED STATES.—The term ‘‘United States’’, when 

used in a geographical sense, means all of the States. 

(24) UNITED STATES PREMIUM FACTOR.—The term ‘‘United 

States Premium Factor’’ means the percentage by which the 

difference in the United States loan schedule premiums for 

Strict Middling (SM) 11⁄8-inch upland cotton and for Middling 

(M) 13⁄32-inch upland cotton exceeds the difference in the applicable premiums for comparable international qualities. 

SEC. 1112. BASE ACRES. 

(a) RETENTION OR 1-TIME REALLOCATION OF BASE ACRES.— (1) ELECTION REQUIRED.— (A) NOTICE OF ELECTION OPPORTUNITY.—As soon as 

practicable after the date of enactment of this Act, the Secretary shall provide notice to the owners of a farm regarding their opportunity to make an election, in the manner 

provided in this subsection— 

(i) to retain base acres, including any generic base 

acres, as provided in paragraph (2); or 

(ii) in lieu of retaining base acres, to reallocate 

base acres, other than any generic base acres, as provided in paragraph (3). 

(B) CONTENT OF NOTICE.—The notice under subparagraph (A) shall include the following: 

(i) Information that the opportunity of an owner to 

make the election is being provided only once. 

(ii) Information regarding the manner in which 

the owner must make the election and the manner of 

notifying the Secretary of the election. 

(iii) Information regarding the deadline before 

which the owner must notify the Secretary of the election to be in effect beginning with the 2014 crop year. 

(C) EFFECT OF FAILURE TO MAKE ELECTION.—If the 

owner of a farm fails to make the election under this subsection, or fails to timely notify the Secretary of the election as required by subparagraph (B)(iii), the owner shall 

be deemed to have elected to retain base acres, including 

generic base acres, as provided in paragraph (2). 

(2) RETENTION OF BASE ACRES.— 


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(A) ELECTION TO RETAIN.—For the purpose of applying 

this part to a covered commodity, the Secretary shall give 

an owner of a farm an opportunity to elect to retain all of 

the base acres for each covered commodity on the farm. 

(B) TREATMENT OF GENERIC BASE ACRES.—Generic 

base acres are automatically retained. 

(3) REALLOCATION OF BASE ACRES.— (A) ELECTION TO REALLOCATE.—For the purpose of applying this part to covered commodities, the Secretary 

shall give an owner of a farm an opportunity to elect to reallocate all of the base acres for covered commodities on 

the farm, as in effect on September 30, 2013, among those 

covered commodities planted on the farm at any time during the 2009 through 2012 crop years. 

(B) REALLOCATION FORMULA.—The reallocation of base 

acres among covered commodities on a farm shall be in 

proportion to the ratio of— 

(i) the 4-year average of— 

(I) the acreage planted on the farm to each 

covered commodity for harvest, grazing, haying, 

silage, or other similar purposes for the 2009 

through 2012 crop years; and 

(II) any acreage on the farm that the producers were prevented from planting during the 

2009 through 2012 crop years to that covered commodity because of drought, flood, or other natural 

disaster, or other condition beyond the control of 

the producers, as determined by the Secretary; to 

(ii) the 4-year average of— 

(I) the acreage planted on the farm to all covered commodities for harvest, grazing, haying, silage, or other similar purposes for such crop years; 

and 

(II) any acreage on the farm that the producers were prevented from planting during such 

crop years to covered commodities because of 

drought, flood, or other natural disaster, or other 

condition beyond the control of the producers, as 

determined by the Secretary. 

(C) TREATMENT OF GENERIC BASE ACRES.—Generic 

base acres are retained and may not be reallocated under 

this paragraph. 

(D) INCLUSION OF ALL 4 YEARS IN AVERAGE.—For the 

purpose of determining a 4-year acreage average under 

subparagraph (B) for a farm, the Secretary shall not exclude any crop year in which a covered commodity was not 

planted. 

(E) TREATMENT OF MULTIPLE PLANTING OR PREVENTED

PLANTING.—For the purpose of determining under subparagraph (B) the acreage on a farm that producers planted or were prevented from planting during the 2009 

through 2012 crop years to covered commodities, if the 

acreage that was planted or prevented from being planted 

was devoted to another covered commodity in the same 

crop year (other than a covered commodity produced under 


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an established practice of double cropping), the owner may 

elect the commodity to be used for that crop year in determining the 4-year average, but may not include both the 

initial commodity and the subsequent commodity. 

(F) LIMITATION.—The reallocation of base acres among 

covered commodities on a farm under this paragraph may 

not result in a total number of base acres (including generic base acres) for the farm in excess of the number of 

base acres in effect for the farm on September 30, 2013. 

(4) APPLICATION OF ELECTION TO ALL COVERED COMMOD- ITIES.—The election made under this subsection, or deemed to 

be made under paragraph (1)(C), with respect to a farm shall 

apply to all of the covered commodities on the farm. 

(b) ADJUSTMENT OF BASE ACRES.— 

(1) IN GENERAL.—Notwithstanding the election made 

under subsection (a), the Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm and any generic base acres for the farm whenever any of the following circumstances occur: 

(A) A conservation reserve contract entered into under 

section 1231 of the Food Security Act of 1985 (16 U.S.C. 

3831) with respect to the farm expires or is voluntarily terminated. 

(B) Cropland is released from coverage under a conservation reserve contract by the Secretary. 

(C) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which 

shall be determined in the same manner as eligible oilseed 

acreage under section 1101(a)(1)(D) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8711(a)(1)(D)). 

(2) SPECIAL CONSERVATION RESERVE ACREAGE PAYMENT

RULES.—For the crop year in which a base acres adjustment 

under subparagraph (A) or (B) of paragraph (1) is first made, 

the owner of the farm shall elect to receive price loss coverage 

or agriculture risk coverage with respect to the acreage added 

to the farm under this subsection or a prorated payment under 

the conservation reserve contract, but not both. 

(c) PREVENTION OF EXCESS BASE ACRES.— (1) REQUIRED REDUCTION.—Notwithstanding the election 

made under subsection (a), if the sum of the base acres for a 

farm, including generic base acres, and the acreage described 

in paragraph (2) exceeds the actual cropland acreage of the 

farm, the Secretary shall reduce the base acres for 1 or more 

covered commodities or generic base acres for the farm so that 

the sum of the base acres, including generic base acres, and 

the acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm. 

(2) OTHER ACREAGE.—For purposes of paragraph (1), the 

Secretary shall include the following: 

(A) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program (or successor programs) under chapter 1 of subtitle D of title XII 

of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.). 

(B) Any other acreage on the farm enrolled in a Federal conservation program for which payments are made in 


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exchange for not producing an agricultural commodity on 

the acreage. 

(C) If the Secretary designates additional oilseeds, any 

eligible oilseed acreage, which shall be determined in the 

same manner as eligible oilseed acreage under subsection 

(b)(1)(C). 

(3) SELECTION OF ACRES.—The Secretary shall give the 

owner of the farm the opportunity to select the base acres for 

a covered commodity or generic base acres for the farm against 

which the reduction required by paragraph (1) will be made. 

(4) EXCEPTION FOR DOUBLE-CROPPED ACREAGE.—In applying paragraph (1), the Secretary shall make an exception in 

the case of double cropping, as determined by the Secretary. 

(d) REDUCTION IN BASE ACRES.— (1) REDUCTION AT OPTION OF OWNER.— (A) IN GENERAL.—The owner of a farm may reduce, at 

any time, the base acres for any covered commodity or generic base acres for the farm. 

(B) EFFECT OF REDUCTION.—A reduction under subparagraph (A) shall be permanent and made in a manner 

prescribed by the Secretary. 

(2) REQUIRED ACTION BY SECRETARY.— (A) IN GENERAL.—The Secretary shall proportionately 

reduce base acres, including any generic base acres, on a 

farm for land that has been subdivided and developed for 

multiple residential units or other nonfarming uses if the 

size of the tracts and the density of the subdivision is such 

that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate 

that the land— 

(i) remains devoted to commercial agricultural 

production; or 

(ii) is likely to be returned to the previous agricultural use. 

(B) REQUIREMENT.—The Secretary shall establish procedures to identify land described in subparagraph (A). 

SEC. 1113. PAYMENT YIELDS. 

(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making 

price loss coverage payments under section 1116, the Secretary 

shall provide for the establishment of a yield for each farm for any 

designated oilseed for which a payment yield was not established 

under section 1102 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8712) in accordance with this section. 

(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS.— 

(1) DETERMINATION OF AVERAGE YIELD.—In the case of designated oilseeds, the Secretary shall determine the average 

yield per planted acre for the designated oilseed on a farm for 

the 1998 through 2001 crop years, excluding any crop year in 

which the acreage planted to the designated oilseed was zero. 

(2) ADJUSTMENT FOR PAYMENT YIELD.— 

(A) IN GENERAL.—The payment yield for a farm for a 

designated oilseed shall be equal to the product of the following: 

(i) The average yield for the designated oilseed determined under paragraph (1). 


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(ii) The ratio resulting from dividing the national 

average yield for the designated oilseed for the 1981 

through 1985 crops by the national average yield for 

the designated oilseed for the 1998 through 2001 

crops. 

(B) NO NATIONAL AVERAGE YIELD INFORMATION AVAIL- ABLE.—To the extent that national average yield information for a designated oilseed is not available, the Secretary 

shall use such information as the Secretary determines to 

be fair and equitable to establish a national average yield 

under this section. 

(3) USE OF COUNTY AVERAGE YIELD.—If the yield per planted acre for a crop of a designated oilseed for a farm for any 

of the 1998 through 2001 crop years was less than 75 percent 

of the county yield for that designated oilseed, the Secretary 

shall assign a yield for that crop year equal to 75 percent of 

the county yield for the purpose of determining the average 

under paragraph (1). 

(c) EFFECT OF LACK OF PAYMENT YIELD.— 

(1) ESTABLISHMENT BY SECRETARY.—In the case of a covered commodity on a farm for which base acres have been established or that is planted on generic base acres, if no payment yield is otherwise established for the covered commodity 

on the farm, the Secretary shall establish an appropriate payment yield for the covered commodity on the farm under paragraph (2). 

(2) USE OF SIMILARLY SITUATED FARMS.—To establish an 

appropriate payment yield for a covered commodity on a farm 

as required by paragraph (1), the Secretary shall take into consideration the farm program payment yields applicable to that 

covered commodity for similarly situated farms. The use of 

such data in an appeal, by the Secretary or by the producer, 

shall not be subject to any other provision of law. 

(d) SINGLE OPPORTUNITY TO UPDATE YIELDS USED TO DETERMINE PRICE LOSS COVERAGE PAYMENTS.— (1) ELECTION TO UPDATE.—At the sole discretion of the 

owner of a farm, the owner of a farm shall have a 1-time opportunity to update, on a covered commodity-by-covered-commodity basis, the payment yield that would otherwise be used 

in calculating any price loss coverage payment for each covered 

commodity on the farm for which the election is made. 

(2) TIME FOR ELECTION.—The election under paragraph (1) 

shall be made at a time and manner to be in effect beginning 

with the 2014 crop year as determined by the Secretary. 

(3) METHOD OF UPDATING YIELDS.—If the owner of a farm 

elects to update yields under this subsection, the payment 

yield for a covered commodity on the farm, for the purpose of 

calculating price loss coverage payments only, shall be equal to 

90 percent of the average of the yield per planted acre for the 

crop of the covered commodity on the farm for the 2008 

through 2012 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the crop 

of the covered commodity was zero. 

(4) USE OF COUNTY AVERAGE YIELD.—If the yield per planted acre for a crop of the covered commodity for a farm for any 


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of the 2008 through 2012 crop years was less than 75 percent 

of the average of the 2008 through 2012 county yield for that 

commodity, the Secretary shall assign a yield for that crop year 

equal to 75 percent of the average of the 2008 through 2012 

county yield for the purposes of determining the average yield 

under paragraph (3). 

SEC. 1114. PAYMENT ACRES. 

(a) DETERMINATION OF PAYMENT ACRES.— (1) GENERAL RULE.—For the purpose of price loss coverage 

and agriculture risk coverage when county coverage has been 

selected under section 1115(b)(1), but subject to subsection (e), 

the payment acres for each covered commodity on a farm shall 

be equal to 85 percent of the base acres for the covered commodity on the farm. 

(2) EFFECT OF INDIVIDUAL COVERAGE.—In the case of agriculture risk coverage when individual coverage has been selected under section 1115(b)(2), but subject to subsection (e), 

the payment acres for a farm shall be equal to 65 percent of 

the base acres for all of the covered commodities on the farm. 

(b) TREATMENT OF GENERIC BASE ACRES.— (1) IN GENERAL.—In the case of generic base acres, price 

loss coverage payments and agriculture risk coverage payments are made only with respect to generic base acres planted 

to a covered commodity for the crop year. 

(2) ATTRIBUTION.—With respect to a farm containing generic base acres, for the purpose of applying paragraphs (1)(B) 

and (2)(B) of subsection (a), generic base acres on the farm are 

attributed to a covered commodity in the following manner: 

(A) If a single covered commodity is planted and the 

total acreage planted exceeds the generic base acres on the 

farm, the generic base acres are attributed to that covered 

commodity in an amount equal to the total number of generic base acres. 

(B) If multiple covered commodities are planted and 

the total number of acres planted to all covered commodities on the farm exceeds the generic base acres on the 

farm, the generic base acres are attributed to each of the 

covered commodities on the farm on a pro rata basis to reflect the ratio of— 

(i) the acreage planted to a covered commodity on 

the farm; to 

(ii) the total acreage planted to all covered commodities on the farm. 

(C) If the total number of acres planted to all covered 

commodities on the farm does not exceed the generic base 

acres on the farm, the number of acres planted to a covered commodity is attributed to that covered commodity. 

(3) TREATED AS ADDITIONAL ACREAGE.—When generic base 

acres are planted to a covered commodity or acreage planted 

to a covered commodity is attributed to generic base acres, the 

generic base acres are in addition to other base acres on the 

farm. 

(c) EXCLUSION.—The quantity of payment acres determined 

under subsection (a) may not include any crop subsequently planted during the same crop year on the same land for which the first 


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crop is eligible for price loss coverage payments or agriculture risk 

coverage payments, unless the crop was approved for double cropping in the county, as determined by the Secretary. 

(d) EFFECT OF MINIMAL PAYMENT ACRES.— 

(1) PROHIBITION ON PAYMENTS.—Notwithstanding any 

other provision of this title, a producer on a farm may not receive price loss coverage payments or agriculture risk coverage 

payments if the sum of the base acres on the farm is 10 acres 

or less, as determined by the Secretary. 

(2) EXCEPTIONS.—Paragraph (1) does not apply to a producer that is— 

(A) a socially disadvantaged farmer or rancher (as defined in section 355(e) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 2003(e))); or 

(B) a limited resource farmer or rancher, as defined by 

the Secretary. 

(e) EFFECT OF PLANTING FRUITS AND VEGETABLES.— 

(1) REDUCTION REQUIRED.—In the manner provided in this 

subsection, payment acres on a farm shall be reduced in any 

crop year in which fruits, vegetables (other than mung beans 

and pulse crops), or wild rice have been planted on base acres 

on a farm. 

(2) PRICE LOSS COVERAGE AND COUNTY COVERAGE.—In the 

case of price loss coverage payments and agricultural risk coverage payments using county coverage, the reduction under 

paragraph (1) shall be the amount equal to the base acres 

planted to crops referred to in such paragraph in excess of 15 

percent of base acres. 

(3) INDIVIDUAL COVERAGE.—In the case of agricultural risk 

coverage payments using individual coverage, the reduction 

under paragraph (1) shall be the amount equal to the base 

acres planted to crops referred to in such paragraph in excess 

of 35 percent of base acres. 

(4) REDUCTION EXCEPTIONS.—No reduction to payment 

acres shall be made under this subsection if— 

(A) cover crops or crops referred to in paragraph (1) 

are grown solely for conservation purposes and not harvested for use or sale, as determined by the Secretary; or 

(B) in any region in which there is a history of doublecropping covered commodities with crops referred to in 

paragraph (1) and such crops were so double-cropped on 

the base acres, as determined by the Secretary. 

SEC. 1115. PRODUCER ELECTION. 

(a) ELECTION REQUIRED.—For the 2014 through 2018 crop 

years, all of the producers on a farm shall make a 1-time, irrevocable election to obtain— 

(1) price loss coverage under section 1116 on a covered 

commodity-by-covered-commodity basis; or 

(2) agriculture risk coverage under section 1117. 

(b) COVERAGE OPTIONS.—In the election under subsection (a), 

the producers on a farm that elect under paragraph (2) of such subsection to obtain agriculture risk coverage under section 1117 shall 

unanimously select whether to receive agriculture risk coverage 

payments based on— 


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(1) county coverage applicable on a covered commodity-bycovered-commodity basis; or 

(2) individual coverage applicable to all of the covered commodities on the farm. 

(c) EFFECT OF FAILURE TO MAKE UNANIMOUS ELECTION.—If all 

the producers on a farm fail to make a unanimous election under 

subsection (a) for the 2014 crop year— 

(1) the Secretary shall not make any payments with respect to the farm for the 2014 crop year under section 1116 or 

1117; and 

(2) the producers on the farm shall be deemed to have 

elected price loss coverage under section 1116 for all covered 

commodities on the farm for the 2015 through 2018 crop years. 

(d) EFFECT OF SELECTION OF COUNTY COVERAGE.—If all the 

producers on a farm select county coverage for a covered commodity under subsection (b)(1), the Secretary may not make price 

loss coverage payments under section 1116 to the producers on the 

farm with respect to that covered commodity. 

(e) EFFECT OF SELECTION OF INDIVIDUAL COVERAGE.—If all the 

producers on a farm select individual coverage under subsection 

(b)(2), in addition to the selection and election under this section 

applying to each producer on the farm, the Secretary shall consider, for purposes of making the calculations required by subsections (b)(2) and (c)(3) of section 1117, the producer’s share of all 

farms in the same State— 

(1) in which the producer has an interest; and 

(2) for which individual coverage has been selected. 

(f) PROHIBITION ON RECONSTITUTION.—The Secretary shall ensure that producers on a farm do not reconstitute the farm to void 

or change an election or selection made under this section. 

SEC. 1116. PRICE LOSS COVERAGE. 

(a) PRICE LOSS COVERAGE PAYMENTS.—If all of the producers 

on a farm make the election under subsection (a) of section 1115 

to obtain price loss coverage or, subject to subsection (c)(1) of such 

section, are deemed to have made such election under subsection 

(c)(2) of such section, the Secretary shall make price loss coverage 

payments to producers on the farm on a covered commodity-by-covered-commodity basis if the Secretary determines that, for any of 

the 2014 through 2018 crop years— 

(1) the effective price for the covered commodity for the 

crop year; is less than 

(2) the reference price for the covered commodity for the 

crop year. 

(b) EFFECTIVE PRICE.—The effective price for a covered commodity for a crop year shall be the higher of— 

(1) the national average market price received by producers during the 12-month marketing year for the covered 

commodity, as determined by the Secretary; or 

(2) the national average loan rate for a marketing assistance loan for the covered commodity in effect for such crop 

year under subtitle B. 

(c) PAYMENT RATE.—The payment rate shall be equal to the 

difference between— 

(1) the reference price for the covered commodity; and 


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(2) the effective price determined under subsection (b) for 

the covered commodity. 

(d) PAYMENT AMOUNT.—If price loss coverage payments are required to be provided under this section for any of the 2014 

through 2018 crop years for a covered commodity, the amount of 

the price loss coverage payment to be paid to the producers on a 

farm for the crop year shall be equal to the product obtained by 

multiplying— 

(1) the payment rate for the covered commodity under subsection (c); 

(2) the payment yield for the covered commodity; and 

(3) the payment acres for the covered commodity. 

(e) TIME FOR PAYMENTS.—If the Secretary determines under 

this section that price loss coverage payments are required to be 

provided for the covered commodity, the payments shall be made 

beginning October 1, or as soon as practicable thereafter, after the 

end of the applicable marketing year for the covered commodity. 

(f) EFFECTIVE PRICE FOR BARLEY.—In determining the effective 

price for barley under subsection (b), the Secretary shall use the 

all-barley price. 

(g) REFERENCE PRICE FOR TEMPERATE JAPONICA RICE.—The 

Secretary shall provide a reference price with respect to temperate 

japonica rice in an amount equal to 115 percent of the amount established in subparagraphs (F) and (G) of section 1111(18) in order 

to reflect price premiums. 

SEC. 1117. AGRICULTURE RISK COVERAGE. 

(a) AGRICULTURE RISK COVERAGE PAYMENTS.—If all of the producers on a farm make the election under section 1115(a) to obtain 

agriculture risk coverage, the Secretary shall make agriculture risk 

coverage payments to producers on the farm if the Secretary determines that, for any of the 2014 through 2018 crop years— 

(1) the actual crop revenue determined under subsection 

(b) for the crop year; is less than 

(2) the agriculture risk coverage guarantee determined 

under subsection (c) for the crop year. 

(b) ACTUAL CROP REVENUE.— 

(1) COUNTY COVERAGE.—In the case of county coverage, the 

amount of the actual crop revenue for a county for a crop year 

of a covered commodity shall be equal to the product obtained 

by multiplying— 

(A) the actual average county yield per planted acre 

for the covered commodity, as determined by the Secretary; and 

(B) the higher of— 

(i) the national average market price received by 

producers during the 12-month marketing year for the 

covered commodity, as determined by the Secretary; or 

(ii) the national average loan rate for a marketing 

assistance loan for the covered commodity in effect for 

such crop year under subtitle B. 

(2) INDIVIDUAL COVERAGE.—In the case of individual coverage, the amount of the actual crop revenue for a producer on 

a farm for a crop year shall be based on the producer’s share 

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vidual coverage has been selected and in which the producer 

has an interest, to be determined by the Secretary as follows: 

(A) For each covered commodity, the product obtained 

by multiplying— 

(i) the total production of the covered commodity 

on such farms, as determined by the Secretary; and 

(ii) the higher of— 

(I) the national average market price received 

by producers during the 12-month marketing 

year, as determined by the Secretary; or 

(II) the national average loan rate for a marketing assistance loan for the covered commodity 

in effect for such crop year under subtitle B. 

(B) The sum of the amounts determined under subparagraph (A) for all covered commodities on such farms. 

(C) The quotient obtained by dividing the amount determined under subparagraph (B) by the total planted 

acres of all covered commodities on such farms. 

(c) AGRICULTURE RISK COVERAGE GUARANTEE.— 

(1) IN GENERAL.—The agriculture risk coverage guarantee 

for a crop year for a covered commodity shall equal 86 percent 

of the benchmark revenue. 

(2) BENCHMARK REVENUE FOR COUNTY COVERAGE.—In the 

case of county coverage, the benchmark revenue shall be the 

product obtained by multiplying— 

(A) subject to paragraph (4), the average historical 

county yield as determined by the Secretary for the most 

recent 5 crop years, excluding each of the crop years with 

the highest and lowest yields; and 

(B) subject to paragraph (5), the national average market price received by producers during the 12-month marketing year for the most recent 5 crop years, excluding 

each of the crop years with the highest and lowest prices. 

(3) BENCHMARK REVENUE FOR INDIVIDUAL COVERAGE.—In 

the case of individual coverage, the benchmark revenue for a 

producer on a farm for a crop year shall be based on the producer’s share of all covered commodities planted on all farms 

for which individual coverage has been selected and in which 

the producer has an interest, to be determined by the Secretary as follows: 

(A) For each covered commodity for each of the most 

recent 5 crop years, the product obtained by multiplying— 

(i) subject to paragraph (4), the yield per planted 

acre for the covered commodity on such farms, as determined by the Secretary; by 

(ii) subject to paragraph (5), the national average 

market price received by producers during the 12- 

month marketing year. 

(B) For each covered commodity, the average of the 

revenues determined under subparagraph (A) for the most 

recent 5 crop years, excluding each of the crop years with 

the highest and lowest revenues. 

(C) For each of the 2014 through 2018 crop years, the 

sum of the amounts determined under subparagraph (B) 

for all covered commodities on such farms, but adjusted to 


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reflect the ratio between the total number of acres planted 

on such farms to a covered commodity and the total acres 

of all covered commodities planted on such farms. 

(4) YIELD CONDITIONS.—If the yield per planted acre for 

the covered commodity or historical county yield per planted 

acre for the covered commodity for any of the 5 most recent 

crop years, as determined by the Secretary, is less than 70 percent of the transitional yield, as determined by the Secretary, 

the amounts used for any of those years in paragraph (2)(A) or 

(3)(A)(i) shall be 70 percent of the transitional yield. 

(5) REFERENCE PRICE.—If the national average market 

price received by producers during the 12-month marketing 

year for any of the 5 most recent crop years is lower than the 

reference price for the covered commodity, the Secretary shall 

use the reference price for any of those years for the amounts 

in paragraph (2)(B) or (3)(A)(ii). 

(d) PAYMENT RATE.—The payment rate for a covered commodity, in the case of county coverage, or a farm, in the case of individual coverage, shall be equal to the lesser of— 

(1) the amount that— 

(A) the agriculture risk coverage guarantee for the 

crop year applicable under subsection (c); exceeds 

(B) the actual crop revenue for the crop year applicable under subsection (b); or 

(2) 10 percent of the benchmark revenue for the crop year 

applicable under subsection (c). 

(e) PAYMENT AMOUNT.—If agriculture risk coverage payments 

are required to be paid for any of the 2014 through 2018 crop 

years, the amount of the agriculture risk coverage payment for the 

crop year shall be determined by multiplying— 

(1) the payment rate determined under subsection (d); and 

(2) the payment acres determined under section 1114. 

(f) TIME FOR PAYMENTS.—If the Secretary determines that agriculture risk coverage payments are required to be provided for 

the covered commodity, payments shall be made beginning October 

1, or as soon as practicable thereafter, after the end of the applicable marketing year for the covered commodity. 

(g) ADDITIONAL DUTIES OF THE SECRETARY.—In providing agriculture risk coverage, the Secretary shall— 

(1) to the maximum extent practicable, use all available information and analysis, including data mining, to check for 

anomalies in the determination of agriculture risk coverage 

payments; 

(2) to the maximum extent practicable, calculate a separate actual crop revenue and agriculture risk coverage guarantee for irrigated and nonirrigated covered commodities; 

(3) in the case of individual coverage, assign an average 

yield for a farm on the basis of the yield history of representative farms in the State, region, or crop reporting district, as determined by the Secretary, if the Secretary determines that the 

farm has planted acreage in a quantity that is insufficient to 

calculate a representative average yield for the farm; and 

(4) in the case of county coverage, assign an actual or 

benchmark county yield for each planted acre for the crop year 

for the covered commodity on the basis of the yield history of 


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representative farms in the State, region, or crop reporting district, as determined by the Secretary, if— 

(A) the Secretary cannot establish the actual or benchmark county yield for each planted acre for a crop year for 

a covered commodity in the county in accordance with subsection (b)(1) or (c)(2); or 

(B) the yield determined under subsection (b)(1) or 

(c)(2) is an unrepresentative average yield for the county, 

as determined by the Secretary. 

SEC. 1118. PRODUCER AGREEMENTS. 

(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

(1) REQUIREMENTS.—Before the producers on a farm may 

receive payments under this subtitle with respect to the farm, 

the producers shall agree, during the crop year for which the 

payments are made and in exchange for the payments— 

(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act 

of 1985 (16 U.S.C. 3811 et seq.); 

(B) to comply with applicable wetland protection requirements under subtitle C of title XII of that Act (16 

U.S.C. 3821 et seq.); 

(C) to effectively control noxious weeds and otherwise 

maintain the land in accordance with sound agricultural 

practices, as determined by the Secretary; and 

(D) to use the land on the farm, in a quantity equal 

to the attributable base acres for the farm and any base 

acres for an agricultural or conserving use, and not for a 

nonagricultural commercial, industrial, or residential use, 

as determined by the Secretary. 

(2) COMPLIANCE.—The Secretary may issue such rules as 

the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1). 

(3) MODIFICATION.—At the request of the transferee or 

owner, the Secretary may modify the requirements of this subsection if the modifications are consistent with the objectives 

of this subsection, as determined by the Secretary. 

(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 

(1) TERMINATION.— 

(A) IN GENERAL.—Except as provided in paragraph (2), 

a transfer of (or change in) the interest of the producers 

on a farm for which payments under this subtitle are provided shall result in the termination of the payments, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). 

(B) EFFECTIVE DATE.—The termination shall take effect on the date determined by the Secretary. 

(2) EXCEPTION.—If a producer entitled to a payment under 

this subtitle dies, becomes incompetent, or is otherwise unable 

to receive the payment, the Secretary shall make the payment 

in accordance with rules issued by the Secretary. 

(c) ACREAGE REPORTS.—As a condition on the receipt of any 

benefits under this subtitle or subtitle B, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm. 


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(d) PRODUCTION REPORTS.—As an additional condition on receiving agriculture risk coverage payments for individual coverage, 

the Secretary shall require a producer on a farm to submit to the 

Secretary annual production reports with respect to all covered 

commodities produced on all farms in the same State— 

(1) in which the producer has an interest; and 

(2) for which individual coverage has been selected. 

(e) EFFECT OF INACCURATE REPORTS.—No penalty with respect 

to benefits under this subtitle or subtitle B shall be assessed 

against a producer on a farm for an inaccurate acreage or production report unless the Secretary determines that the producer on 

the farm knowingly and willfully falsified the acreage or production 

report. 

(f) TENANTS AND SHARECROPPERS.—In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the 

interests of tenants and sharecroppers. 

(g) SHARING OF PAYMENTS.—The Secretary shall provide for 

the sharing of payments made under this subtitle among the producers on a farm on a fair and equitable basis. 

SEC. 1119. TRANSITION ASSISTANCE FOR PRODUCERS OF UPLAND 

COTTON. 

(a) AVAILABILITY.— (1) PURPOSE.—It is the purpose of this section to provide 

transition assistance to producers of upland cotton in light of 

the repeal of section 1103 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713), the inapplicability of sections 

1116 and 1117 to upland cotton, and the delayed implementation of the Stacked Income Protection Plan required by section 

508B of the Federal Crop Insurance Act (7 U.S.C. 1508b), as 

added by section 11017 of this Act. 

(2) 2014 CROP YEAR.—For the 2014 crop of upland cotton, 

the Secretary shall provide transition assistance, pursuant to 

the terms and conditions of this section, to producers on a farm 

for which cotton base acres were in existence for the 2013 crop 

year. 

(3) 2015 CROP YEAR.—For the 2015 crop of upland cotton, 

the Secretary shall provide transition assistance, pursuant to 

the terms and conditions of this section, to producers on a 

farm— 

(A) for which cotton base acres were in existence for 

the 2013 crop year; and 

(B) that is located in a county in which the Stacked 

Income Protection Plan required by section 508B of the 

Federal Crop Insurance Act (7 U.S.C. 1508b) is not available to producers of upland cotton for the 2015 crop year. 

(b) TRANSITION ASSISTANCE RATE.—The transition assistance 

rate shall be equal to the product obtained by multiplying— 

(1) the June 12, 2013, midpoint estimate for the marketing 

year average price of upland cotton received by producers for 

the marketing year beginning August 1, 2013, minus the December 10, 2013, midpoint estimate for the marketing year average price of upland cotton received by producers for the marketing year beginning August 1, 2013, as contained in the applicable World Agricultural Supply and Demand Estimates report published by the Department of Agriculture; and 


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(2) the national program yield for upland cotton of 597 

pounds per acre. 

(c) CALCULATION OF TRANSITION ASSISTANCE AMOUNT.—The 

amount of transition assistance to be provided under this section 

to producers on a farm for a crop year shall be equal to the product 

obtained by multiplying— 

(1) for the 2014 crop year, 60 percent, and for the 2015 

crop year, 36.5 percent, of the cotton base acres referred to in 

subsection (a) for the farm, subject to adjustment or reduction 

for conservation measures as provided in subsections (b) and 

(c) of section 1112; 

(2) the transition assistance rate in effect for the crop year 

under subsection (b); and 

(3) the payment yield for upland cotton for the farm established for purposes of section 1103(c)(3) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8713(c)(3)), divided by 

the national program yield for upland cotton of 597 pounds per 

acre. 

(d) TIME FOR PAYMENT.—The Secretary may not make transition assistance payments for a crop year under this section before 

October 1 of the calendar year in which the crop of upland cotton 

is harvested. 

(e) PAYMENT LIMITATIONS.—Sections 1001 through 1001C of 

the Food Security Act of 1985 (7 U.S.C. 1308 through 1308C), as 

in effect on September 30, 2013, shall apply to the receipt of transition assistance under this section in the same manner as such sections applied to section 1103 of the Food, Conservation, and Energy 

Act of 2008 (7 U.S.C. 8713). 

Subtitle B—Marketing Loans 

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 

LOANS FOR LOAN COMMODITIES. 

(a) DEFINITION OF LOAN COMMODITY.—In this subtitle, the 

term ‘‘loan commodity’’ means wheat, corn, grain sorghum, barley, 

oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, 

nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, 

and large chickpeas. 

(b) NONRECOURSE LOANS AVAILABLE.— 

(1) IN GENERAL.—For each of the 2014 through 2018 crops 

of each loan commodity, the Secretary shall make available to 

producers on a farm nonrecourse marketing assistance loans 

for loan commodities produced on the farm. 

(2) TERMS AND CONDITIONS.—The marketing assistance 

loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under 

section 1202 for the loan commodity. 

(c) ELIGIBLE PRODUCTION.—The producers on a farm shall be 

eligible for a marketing assistance loan under subsection (b) for 

any quantity of a loan commodity produced on the farm. 

(d) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.—As a condition of the receipt of a marketing assistance 

loan under subsection (b), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the 

Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable 


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wetland protection requirements under subtitle C of title XII of 

that Act (16 U.S.C. 3821 et seq.) during the term of the loan. 

(e) SPECIAL RULES FOR PEANUTS.— (1) IN GENERAL.—This subsection shall apply only to producers of peanuts. 

(2) OPTIONS FOR OBTAINING LOAN.—A marketing assistance 

loan under this section, and loan deficiency payments under 

section 1205, may be obtained at the option of the producers 

on a farm through— 

(A) a designated marketing association or marketing 

cooperative of producers that is approved by the Secretary; 

or 

(B) the Farm Service Agency. 

(3) STORAGE OF LOAN PEANUTS.—As a condition on the approval by the Secretary of an individual or entity to provide 

storage for peanuts for which a marketing assistance loan is 

made under this section, the individual or entity shall agree— 

(A) to provide the storage on a nondiscriminatory 

basis; and 

(B) to comply with such additional requirements as 

the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section. 

(4) STORAGE, HANDLING, AND ASSOCIATED COSTS.— 

(A) IN GENERAL.—To ensure proper storage of peanuts 

for which a loan is made under this section, the Secretary 

shall pay handling and other associated costs (other than 

storage costs) incurred at the time at which the peanuts 

are placed under loan, as determined by the Secretary. 

(B) REDEMPTION AND FORFEITURE.—The Secretary 

shall— 

(i) require the repayment of handling and other 

associated costs paid under subparagraph (A) for all 

peanuts pledged as collateral for a loan that is redeemed under this section; and 

(ii) pay storage, handling, and other associated 

costs for all peanuts pledged as collateral that are forfeited under this section. 

(5) MARKETING.—A marketing association or cooperative 

may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including 

the separation of peanuts by type and quality. 

(6) REIMBURSABLE AGREEMENTS AND PAYMENT OF ADMINIS- TRATIVE EXPENSES.—The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is 

consistent with those activities in regard to other loan commodities. 

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 

LOANS. 

(a) IN GENERAL.—For purposes of each of the 2014 through 

2018 crop years, the loan rate for a marketing assistance loan 

under section 1201 for a loan commodity shall be equal to the following: (1) In the case of wheat, $2.94 per bushel. 


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(2) In the case of corn, $1.95 per bushel. 

(3) In the case of grain sorghum, $1.95 per bushel. 

(4) In the case of barley, $1.95 per bushel. 

(5) In the case of oats, $1.39 per bushel. 

(6) In the case of base quality of upland cotton, for each 

of the 2014 through 2018 crop years, the simple average of the 

adjusted prevailing world price for the 2 immediately preceding 

marketing years, as determined by the Secretary and announced October 1 preceding the next domestic plantings, but 

in no case less than $0.45 per pound or more than $0.52 per 

pound. 

(7) In the case of extra long staple cotton, $0.7977 per 

pound. 

(8) In the case of long grain rice, $6.50 per hundredweight. 

(9) In the case of medium grain rice, $6.50 per hundredweight. 

(10) In the case of soybeans, $5.00 per bushel. 

(11) In the case of other oilseeds, $10.09 per hundredweight for each of the following kinds of oilseeds: 

(A) Sunflower seed. 

(B) Rapeseed. 

(C) Canola. 

(D) Safflower. 

(E) Flaxseed. 

(F) Mustard seed. 

(G) Crambe. 

(H) Sesame seed. 

(I) Other oilseeds designated by the Secretary. 

(12) In the case of dry peas, $5.40 per hundredweight. 

(13) In the case of lentils, $11.28 per hundredweight. 

(14) In the case of small chickpeas, $7.43 per hundredweight. 

(15) In the case of large chickpeas, $11.28 per hundredweight. 

(16) In the case of graded wool, $1.15 per pound. 

(17) In the case of nongraded wool, $0.40 per pound. 

(18) In the case of mohair, $4.20 per pound. 

(19) In the case of honey, $0.69 per pound. 

(20) In the case of peanuts, $355 per ton. 

(b) SINGLE COUNTY LOAN RATE FOR OTHER OILSEEDS.—The 

Secretary shall establish a single loan rate in each county for each 

kind of other oilseeds described in subsection (a)(11). 

SEC. 1203. TERM OF LOANS. 

(a) TERM OF LOAN.—In the case of each loan commodity, a 

marketing assistance loan under section 1201 shall have a term of 

9 months beginning on the first day of the first month after the 

month in which the loan is made. 

(b) EXTENSIONS PROHIBITED.—The Secretary may not extend 

the term of a marketing assistance loan for any loan commodity. 

SEC. 1204. REPAYMENT OF LOANS. 

(a) GENERAL RULE.—The Secretary shall permit the producers 

on a farm to repay a marketing assistance loan under section 1201 

for a loan commodity (other than upland cotton, long grain rice, 

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tionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of— 

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 

163 of the Federal Agriculture Improvement and Reform Act of 

1996 (7 U.S.C. 7283)); 

(2) a rate (as determined by the Secretary) that— 

(A) is calculated based on average market prices for 

the loan commodity during the preceding 30-day period; 

and 

(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or 

(3) a rate that the Secretary may develop using alternative 

methods for calculating a repayment rate for a loan commodity 

that the Secretary determines will— 

(A) minimize potential loan forfeitures; 

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

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

(D) allow the commodity produced in the United 

States to be marketed freely and competitively, both domestically and internationally; and 

(E) minimize discrepancies in marketing loan benefits 

across State boundaries and across county boundaries. 

(b) REPAYMENT RATES FOR UPLAND COTTON, LONG GRAIN RICE, 

AND MEDIUM GRAIN RICE.—The Secretary shall permit producers to 

repay a marketing assistance loan under section 1201 for upland 

cotton, long grain rice, and medium grain rice at a rate that is the 

lesser of— 

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 

163 of the Federal Agriculture Improvement and Reform Act of 

1996 (7 U.S.C. 7283)); or 

(2) the prevailing world market price for the commodity, as 

determined and adjusted by the Secretary in accordance with 

this section. 

(c) REPAYMENT RATES FOR EXTRA LONG STAPLE COTTON.—Repayment of a marketing assistance loan for extra long staple cotton 

shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 

of the Federal Agriculture Improvement and Reform Act of 1996 (7 

U.S.C. 7283)). 

(d) PREVAILING WORLD MARKET PRICE.—For purposes of this 

section and section 1207, the Secretary shall prescribe by regulation— 

(1) a formula to determine the prevailing world market 

price for each of upland cotton, long grain rice, and medium 

grain rice; and 

(2) a mechanism by which the Secretary shall announce 

periodically those prevailing world market prices. 

(e) ADJUSTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.— 


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(1) RICE.—The prevailing world market price for long grain 

rice and medium grain rice determined under subsection (d) 

shall be adjusted to United States quality and location. 

(2) COTTON.—The prevailing world market price for upland 

cotton determined under subsection (d)— 

(A) shall be adjusted to United States quality and location, with the adjustment to include— 

(i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher 

than Middling (M) 13⁄32-inch; and 

(ii) the average costs to market the commodity, including average transportation costs, as determined by 

the Secretary; and 

(B) may be further adjusted, during the period beginning on the date of enactment of this Act and ending on 

July 31, 2019, if the Secretary determines the adjustment 

is necessary— 

(i) to minimize potential loan forfeitures; 

(ii) to minimize the accumulation of stocks of upland cotton by the Federal Government; 

(iii) to ensure that upland cotton produced in the 

United States can be marketed freely and competitively, both domestically and internationally; and 

(iv) to ensure an appropriate transition between 

current-crop and forward-crop price quotations, except 

that the Secretary may use forward-crop price 

quotations prior to July 31 of a marketing year only 

if— 

(I) there are insufficient current-crop price 

quotations; and 

(II) the forward-crop price quotation is the 

lowest such quotation available. 

(3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS.—In making 

adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States 

market. 

(f) REPAYMENT RATES FOR CONFECTIONERY AND OTHER KINDS

OF SUNFLOWER SEEDS.—The Secretary shall permit the producers 

on a farm to repay a marketing assistance loan under section 1201 

for confectionery and each other kind of sunflower seed (other than 

oil sunflower seed) at a rate that is the lesser of— 

(1) the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 

163 of the Federal Agriculture Improvement and Reform Act of 

1996 (7 U.S.C. 7283)); or 

(2) the repayment rate established for oil sunflower seed. 

(g) PAYMENT OF COTTON STORAGE COSTS.—Effective for each of 

the 2014 through 2018 crop years, the Secretary shall make cotton 

storage payments available in the same manner, and at the same 

rates as the Secretary provided storage payments for the 2006 crop 

of cotton, except that the rates shall be reduced by 10 percent. 

(h) REPAYMENT RATE FOR PEANUTS.—The Secretary shall permit producers on a farm to repay a marketing assistance loan for 

peanuts under section 1201 at a rate that is the lesser of— 


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(1) the loan rate established for peanuts under section 

1202(a)(20), plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform 

Act of 1996 (7 U.S.C. 7283)); or 

(2) a rate that the Secretary determines will— 

(A) minimize potential loan forfeitures; 

(B) minimize the accumulation of stocks of peanuts by 

the Federal Government; 

(C) minimize the cost incurred by the Federal Government in storing peanuts; and 

(D) allow peanuts produced in the United States to be 

marketed freely and competitively, both domestically and 

internationally. 

(i) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT RATES.— (1) ADJUSTMENT AUTHORITY.—In the event of a severe disruption to marketing, transportation, or related infrastructure, 

the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under 

section 1201 for a loan commodity. 

(2) DURATION.—Any adjustment made under paragraph (1) 

in the repayment rate for marketing assistance loans for a loan 

commodity shall be in effect on a short-term and temporary 

basis, as determined by the Secretary. 

SEC. 1205. LOAN DEFICIENCY PAYMENTS. 

(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— (1) IN GENERAL.—Except as provided in subsection (d), the 

Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing 

assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in 

return for loan deficiency payments under this section. 

(2) UNSHORN PELTS, HAY, AND SILAGE.— (A) MARKETING ASSISTANCE LOANS.—Subject to subparagraph (B), nongraded wool in the form of unshorn 

pelts and hay and silage derived from a loan commodity 

are not eligible for a marketing assistance loan under section 1201. 

(B) LOAN DEFICIENCY PAYMENT.—Effective for each of 

the 2014 through 2018 crop years, the Secretary may 

make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or 

hay and silage derived from a loan commodity. 

(b) COMPUTATION.—A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal 

to the product obtained by multiplying— 

(1) the payment rate determined under subsection (c) for 

the commodity; by 

(2) the quantity of the commodity produced by the eligible 

producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201. 

(c) PAYMENT RATE.— 

(1) IN GENERAL.—In the case of a loan commodity, the payment rate shall be the amount by which— 

(A) the loan rate established under section 1202 for 

the loan commodity; exceeds 


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(B) the rate at which a marketing assistance loan for 

the loan commodity may be repaid under section 1204. 

(2) UNSHORN PELTS.—In the case of unshorn pelts, the 

payment rate shall be the amount by which— 

(A) the loan rate established under section 1202 for 

ungraded wool; exceeds 

(B) the rate at which a marketing assistance loan for 

ungraded wool may be repaid under section 1204. 

(3) HAY AND SILAGE.—In the case of hay or silage derived 

from a loan commodity, the payment rate shall be the amount 

by which— 

(A) the loan rate established under section 1202 for 

the loan commodity from which the hay or silage is derived; exceeds 

(B) the rate at which a marketing assistance loan for 

the loan commodity may be repaid under section 1204. 

(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.—This section 

shall not apply with respect to extra long staple cotton. 

(e) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.—The 

Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm 

with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under 

subsection (c) as of the date the producers request the payment. 

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

GRAZED ACREAGE. 

(a) ELIGIBLE PRODUCERS.— (1) IN GENERAL.—Effective for each of the 2014 through 

2018 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 1205 for wheat, 

barley, or oats, but that elects to use acreage planted to the 

wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section 

if the producer enters into an agreement with the Secretary to 

forgo any other harvesting of the wheat, barley, or oats on that 

acreage. 

(2) GRAZING OF TRITICALE ACREAGE.—Effective for each of 

the 2014 through 2018 crop years, with respect to a producer 

on a farm that uses acreage planted to triticale for the grazing 

of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of 

triticale on that acreage. 

(b) PAYMENT AMOUNT.— 

(1) IN GENERAL.—The amount of a payment made under 

this section to a producer on a farm described in subsection 

(a)(1) shall be equal to the amount determined by multiplying— 

(A) the loan deficiency payment rate determined under 

section 1205(c) in effect, as of the date of the agreement, 

for the county in which the farm is located; by 

(B) the payment quantity determined by multiplying— 

(i) the quantity of the grazed acreage on the farm 

with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and 


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(ii)(I) the payment yield in effect for the calculation of price loss coverage under section 1115 with respect to that loan commodity on the farm; 

(II) in the case of a farm for which agriculture risk 

coverage is elected under section 1116(a), the payment 

yield that would otherwise be in effect with respect to 

that loan commodity on the farm in the absence of 

such election; or 

(III) in the case of a farm for which no payment 

yield is otherwise established for that loan commodity 

on the farm, an appropriate yield established by the 

Secretary in a manner consistent with section 1113(c). 

(2) GRAZING OF TRITICALE ACREAGE.—The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying— 

(A) the loan deficiency payment rate determined under 

section 1205(c) in effect for wheat, as of the date of the 

agreement, for the county in which the farm is located; by 

(B) the payment quantity determined by multiplying— 

(i) the quantity of the grazed acreage on the farm 

with respect to which the producer elects to forgo harvesting of triticale; and 

(ii)(I) the payment yield in effect for the calculation of price loss coverage under subtitle A with respect to wheat on the farm; 

(II) in the case of a farm for which agriculture risk 

coverage is elected under section 1116(a), the payment 

yield that would otherwise be in effect for wheat on 

the farm in the absence of such election; or 

(III) in the case of a farm for which no payment 

yield is otherwise established for wheat on the farm, 

an appropriate yield established by the Secretary in a 

manner consistent with section 1113(c). 

(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— (1) TIME AND MANNER.—A payment under this section 

shall be made at the same time and in the same manner as 

loan deficiency payments are made under section 1205. 

(2) AVAILABILITY.— (A) IN GENERAL.—The Secretary shall establish an 

availability period for the payments authorized by this section. 

(B) CERTAIN COMMODITIES.—In the case of wheat, barley, and oats, the availability period shall be consistent 

with the availability period for the commodity established 

by the Secretary for marketing assistance loans authorized 

by this subtitle. 

(d) PROHIBITION ON CROP INSURANCE INDEMNITY OR NONINSURED CROP ASSISTANCE.—A 2014 through 2018 crop of wheat, 

barley, oats, or triticale planted on acreage that a producer elects, 

in the agreement required by subsection (a), to use for the grazing 

of livestock in lieu of any other harvesting of the crop shall not be 

eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 et 

seq.) or noninsured crop assistance under section 196 of the FedVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00038 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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eral Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7333). 

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

(a) SPECIAL IMPORT QUOTA.— (1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this subsection, the term ‘‘special import quota’’ means a quantity of 

imports that is not subject to the over-quota tariff rate of a tariff-rate quota. 

(2) ESTABLISHMENT.— (A) IN GENERAL.—The President shall carry out an import quota program beginning on August 1, 2014, as provided in this subsection. 

(B) PROGRAM REQUIREMENTS.—Whenever the Secretary determines and announces that for any consecutive 

4-week period, the Friday through Thursday average price 

quotation for the lowest-priced United States growth, as 

quoted for Middling (M) 13⁄32-inch cotton, delivered to a definable and significant international market, as determined by the Secretary, exceeds the prevailing world market price, there shall immediately be in effect a special import quota. 

(3) QUANTITY.—The quota shall be equal to the consumption during a 1-week period of cotton by domestic mills at the 

seasonally adjusted average rate of the most recent 3 months 

for which official data of the Department of Agriculture are 

available or, in the absence of sufficient data, as estimated by 

the Secretary. 

(4) APPLICATION.—The quota shall apply to upland cotton 

purchased not later than 90 days after the date of the Secretary’s announcement under paragraph (2) and entered into 

the United States not later than 180 days after that date. 

(5) OVERLAP.—A special quota period may be established 

that overlaps any existing quota period if required by paragraph (2), except that a special quota period may not be established under this subsection if a quota period has been established under subsection (b). 

(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under 

a special import quota shall be considered to be an in-quota 

quantity for purposes of— 

(A) section 213(d) of the Caribbean Basin Economic 

Recovery Act (19 U.S.C. 2703(d)); 

(B) section 204 of the Andean Trade Preference Act 

(19 U.S.C. 3203); 

(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 

2463(d)); and 

(D) General Note 3(a)(iv) to the Harmonized Tariff 

Schedule. 

(7) LIMITATION.—The quantity of cotton entered into the 

United States during any marketing year under the special import quota established under this subsection may not exceed 

the equivalent of 10 weeks’ consumption of upland cotton by 

domestic mills at the seasonally adjusted average rate of the 

3 months immediately preceding the first special import quota 

established in any marketing year. 


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(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON.— (1) DEFINITIONS.—In this subsection: 

(A) DEMAND.—The term ‘‘demand’’ means— 

(i) the average seasonally adjusted annual rate of 

domestic mill consumption of cotton during the most 

recent 3 months for which official data of the Department of Agriculture are available or, in the absence of 

sufficient data, as estimated by the Secretary; and 

(ii) the larger of— 

(I) average exports of upland cotton during 

the preceding 6 marketing years; or 

(II) cumulative exports of upland cotton plus 

outstanding export sales for the marketing year in 

which the quota is established. 

(B) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited global import quota’’ means a quantity of imports that 

is not subject to the over-quota tariff rate of a tariff-rate 

quota. 

(C) SUPPLY.—The term ‘‘supply’’ means, using the latest official data of the Department of Agriculture— 

(i) the carry-over of upland cotton at the beginning 

of the marketing year (adjusted to 480-pound bales) in 

which the quota is established; 

(ii) production of the current crop; and 

(iii) imports to the latest date available during the 

marketing year. 

(2) PROGRAM.—The President shall carry out an import 

quota program that provides that whenever the Secretary determines and announces that the average price of the base 

quality of upland cotton, as determined by the Secretary, in 

the designated spot markets for a month exceeded 130 percent 

of the average price of the quality of cotton in the markets for 

the preceding 36 months, notwithstanding any other provision 

of law, there shall immediately be in effect a limited global import quota subject to the following conditions: 

(A) QUANTITY.—The quantity of the quota shall be 

equal to 21 days of domestic mill consumption of upland 

cotton at the seasonally adjusted average rate of the most 

recent 3 months for which official data of the Department 

of Agriculture are available or, in the absence of sufficient 

data, as estimated by the Secretary. 

(B) QUANTITY IF PRIOR QUOTA.—If a quota has been established under this subsection during the preceding 12 

months, the quantity of the quota next established under 

this subsection shall be the smaller of 21 days of domestic 

mill consumption calculated under subparagraph (A) or 

the quantity required to increase the supply to 130 percent 

of the demand. 

(C) PREFERENTIAL TARIFF TREATMENT.—The quantity 

under a limited global import quota shall be considered to 

be an in-quota quantity for purposes of— 

(i) section 213(d) of the Caribbean Basin Economic 

Recovery Act (19 U.S.C. 2703(d)); 

(ii) section 204 of the Andean Trade Preference 

Act (19 U.S.C. 3203); 


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(iii) section 503(d) of the Trade Act of 1974 (19 

U.S.C. 2463(d)); and 

(iv) General Note 3(a)(iv) to the Harmonized Tariff 

Schedule. 

(D) QUOTA ENTRY PERIOD.—When a quota is established under this subsection, cotton may be entered under 

the quota during the 90-day period beginning on the date 

the quota is established by the Secretary. 

(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota 

period may not be established that overlaps an existing quota 

period or a special quota period established under subsection 

(a). 

(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND

COTTON.— 

(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

shall, on a monthly basis, make economic adjustment assistance available to domestic users of upland cotton in the form 

of payments for all documented use of that upland cotton during the previous monthly period regardless of the origin of the 

upland cotton. 

(2) VALUE OF ASSISTANCE.—Effective beginning on August 

1, 2013, the value of the assistance provided under paragraph 

(1) shall be 3 cents per pound. 

(3) ALLOWABLE PURPOSES.—Economic adjustment assistance under this subsection shall be made available only to domestic users of upland cotton that certify that the assistance 

shall be used only to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery. 

(4) REVIEW OR AUDIT.—The Secretary may conduct such review or audit of the records of a domestic user under this subsection as the Secretary determines necessary to carry out this 

subsection. 

(5) IMPROPER USE OF ASSISTANCE.—If the Secretary determines, after a review or audit of the records of the domestic 

user, that economic adjustment assistance under this subsection was not used for the purposes specified in paragraph 

(3), the domestic user shall be— 

(A) liable for the repayment of the assistance to the 

Secretary, plus interest, as determined by the Secretary; 

and 

(B) ineligible to receive assistance under this subsection for a period of 1 year following the determination 

of the Secretary. 

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

(a) COMPETITIVENESS PROGRAM.—Notwithstanding any other 

provision of law, during the period beginning on the date of enactment of this Act through July 31, 2019, the Secretary shall carry 

out a program— 

(1) to maintain and expand the domestic use of extra long 

staple cotton produced in the United States; 

(2) to increase exports of extra long staple cotton produced 

in the United States; and 


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(3) to ensure that extra long staple cotton produced in the 

United States remains competitive in world markets. 

(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under the program, the Secretary shall make payments available under this section whenever— 

(1) for a consecutive 4-week period, the world market price 

for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for 

other factors affecting the competitiveness of such cotton), as 

determined by the Secretary, is below the prevailing United 

States price for a competing growth of extra long staple cotton; 

and 

(2) the lowest priced competing growth of extra long staple 

cotton (adjusted to United States quality and location and for 

other factors affecting the competitiveness of such cotton), as 

determined by the Secretary, is less than 134 percent of the 

loan rate for extra long staple cotton. 

(c) ELIGIBLE RECIPIENTS.—The Secretary shall make payments 

available under this section to domestic users of extra long staple 

cotton produced in the United States and exporters of extra long 

staple cotton produced in the United States that enter into an 

agreement with the Commodity Credit Corporation to participate 

in the program under this section. 

(d) PAYMENT AMOUNT.—Payments under this section shall be 

based on the amount of the difference in the prices referred to in 

subsection (b)(1) during the fourth week of the consecutive 4-week 

period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week 

following such a consecutive 4-week period. 

SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 

FEED GRAINS AND SEED COTTON. 

(a) HIGH MOISTURE FEED GRAINS.— (1) DEFINITION OF HIGH MOISTURE STATE.—In this subsection, the term ‘‘high moisture state’’ means corn or grain 

sorghum having a moisture content in excess of Commodity 

Credit Corporation standards for marketing assistance loans 

made by the Secretary under section 1201. 

(2) RECOURSE LOANS AVAILABLE.—For each of the 2014 

through 2018 crops of corn and grain sorghum, the Secretary 

shall make available recourse loans, as determined by the Secretary, to producers on a farm that— 

(A) normally harvest all or a portion of their crop of 

corn or grain sorghum in a high moisture state; 

(B) present— 

(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or 

(ii) field or other physical measurements of the 

standing or stored crop in regions of the United 

States, as determined by the Secretary, that do not 

have certified commercial scales from which certified 

scale tickets may be obtained within reasonable proximity of harvest operation; 


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(C) certify that the producers on the farm were the 

owners of the feed grain at the time of delivery to, and 

that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, 

a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the 

users of corn and grain sorghum in a high moisture state; 

and 

(D) comply with deadlines established by the Secretary 

for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary. 

(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under 

this subsection shall be made on a quantity of corn or grain 

sorghum of the same crop acquired by the producer equivalent 

to a quantity determined by multiplying— 

(A) the acreage of the corn or grain sorghum in a high 

moisture state harvested on the farm of the producer; by 

(B) the lower of— 

(i) the payment yield in effect for the calculation 

of price loss coverage under section 1115, or the payment yield deemed to be in effect or established under 

subclause (II) or (III) of section 1206(b)(1)(B)(ii), with 

respect to corn or grain sorghum on a field that is 

similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained; or 

(ii) the actual yield of corn or grain sorghum on a 

field, as determined by the Secretary, that is similar 

to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained. 

(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each 

of the 2014 through 2018 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton 

loans, as determined by the Secretary, on any production. 

(c) REPAYMENT RATES.—Repayment of a recourse loan made 

under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance 

with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)). 

SEC. 1210. ADJUSTMENTS OF LOANS. 

(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the 

Secretary may make appropriate adjustments in the loan rates for 

any loan commodity (other than cotton) for differences in grade, 

type, quality, location, and other factors. 

(b) MANNER OF ADJUSTMENT.—The adjustments under subsection (a) shall, to the maximum extent practicable, be made in 

such a manner that the average loan level for the commodity will, 

on the basis of the anticipated incidence of the factors, be equal to 

the level of support determined in accordance with this subtitle and 

subtitle C. 

(c) ADJUSTMENT ON COUNTY BASIS.— 

(1) IN GENERAL.—The Secretary may establish loan rates 

for a crop for producers in individual counties in a manner that 

results in the lowest loan rate being 95 percent of the national 


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average loan rate, if those loan rates do not result in an increase in outlays. 

(2) PROHIBITION.—Adjustments under this subsection shall 

not result in an increase in the national average loan rate for 

any year. 

(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

(1) IN GENERAL.—The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality 

factors. 

(2) TYPES OF ADJUSTMENTS.—Loan rate adjustments under 

paragraph (1) may include— 

(A) the use of non-spot market price data, in addition 

to spot market price data, that would enhance the accuracy of the price information used in determining quality 

adjustments under this subsection; 

(B) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above 

due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums 

or discounts; and 

(C) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3). 

(3) CONSULTATION WITH PRIVATE SECTOR.— 

(A) PRIOR TO REVISION.—In making adjustments to the 

loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall 

consult with representatives of the United States cotton industry. 

(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE

ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) 

shall not apply to consultations under this subsection. 

(4) REVIEW OF ADJUSTMENTS.—The Secretary may review 

the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further adjustments to the administration of the loan program for upland 

cotton, by revoking or revising any adjustment taken under 

paragraph (2). 

(e) RICE.—The Secretary shall not make adjustments in the 

loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields). 

Subtitle C—Sugar 

SEC. 1301. SUGAR POLICY. 

(a) CONTINUATION OF CURRENT PROGRAM AND LOAN RATES.— 

(1) SUGARCANE.—Section 156(a) of the Federal Agriculture 

Improvement and Reform Act of 1996 (7 U.S.C. 7272(a)) is 

amended— 

(A) by inserting ‘‘and’’ at the end of paragraph (3); 

(B) in paragraph (4), by striking ‘‘the 2011 crop year; 

and’’ and inserting ‘‘each of the 2011 through 2018 crop 

years.’’; and 

(C) by striking paragraph (5). 


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(2) SUGAR BEETS.—Section 156(b)(2) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7272(b)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(3) EFFECTIVE PERIOD.—Section 156(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) 

is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.— (1) SUGAR ESTIMATES.—Section 359b(a)(1) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(2) EFFECTIVE PERIOD.—Section 359l(a) of the Agricultural 

Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

Subtitle D—Dairy 

PART I—MARGIN PROTECTION PROGRAM FOR 

DAIRY PRODUCERS 

SEC. 1401. DEFINITIONS. 

In this part and part III: 

(1) ACTUAL DAIRY PRODUCTION MARGIN.—The term ‘‘actual 

dairy production margin’’ means the difference between the allmilk price and the average feed cost, as calculated under section 1402. 

(2) ALL-MILK PRICE.—The term ‘‘all-milk price’’ means the 

average price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United 

States, as determined by the Secretary. 

(3) AVERAGE FEED COST.—The term ‘‘average feed cost’’ 

means the average cost of feed used by a dairy operation to 

produce a hundredweight of milk, determined under section 

1402 using the sum of the following: 

(A) The product determined by multiplying 1.0728 by 

the price of corn per bushel. 

(B) The product determined by multiplying 0.00735 by 

the price of soybean meal per ton. 

(C) The product determined by multiplying 0.0137 by 

the price of alfalfa hay per ton. 

(4) CONSECUTIVE 2-MONTH PERIOD.—The term ‘‘consecutive 

2-month period’’ refers to the 2-month period consisting of the 

months of January and February, March and April, May and 

June, July and August, September and October, or November 

and December, respectively. 

(5) DAIRY OPERATION.— 

(A) IN GENERAL.—The term ‘‘dairy operation’’ means, 

as determined by the Secretary, 1 or more dairy producers 

that produce and market milk as a single dairy operation 

in which each dairy producer— 

(i) shares in the risk of producing milk; and 

(ii) makes contributions (including land, labor, 

management, equipment, or capital) to the dairy operation of the individual or entity, which are at least 

commensurate with the individual or entity’s share of 

the proceeds of the operation. 


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(B) ADDITIONAL OWNERSHIP STRUCTURES.—The Secretary shall determine additional ownership structures to 

be covered by the definition of dairy operation. 

(6) MARGIN PROTECTION PROGRAM.—The term ‘‘margin protection program’’ means the margin protection program required by section 1403. 

(7) MARGIN PROTECTION PROGRAM PAYMENT.—The term 

‘‘margin protection program payment’’ means a payment made 

to a participating dairy operation under the margin protection 

program pursuant to section 1406. 

(8) PARTICIPATING DAIRY OPERATION.—The term ‘‘participating dairy operation’’ means a dairy operation that registers 

under section 1404 to participate in the margin protection program. 

(9) PRODUCTION HISTORY.—The term ‘‘production history’’ 

means the production history determined for a participating 

dairy operation under subsection (a) or (b) of section 1405 

when the participating dairy operation first registers to participate in the margin protection program. 

(10) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture. 

(11) UNITED STATES.—The term ‘‘United States’’, in a geographical sense, means the 50 States, the District of Columbia, 

American Samoa, Guam, the Commonwealth of the Northern 

Mariana Islands, the Commonwealth of Puerto Rico, the Virgin 

Islands of the United States, and any other territory or possession of the United States. 

SEC. 1402. CALCULATION OF AVERAGE FEED COST AND ACTUAL 

DAIRY PRODUCTION MARGINS. 

(a) CALCULATION OF AVERAGE FEED COST.—The Secretary 

shall calculate the national average feed cost for each month using 

the following data: 

(1) The price of corn for a month shall be the price received during that month by farmers in the United States for 

corn, as reported in the monthly Agricultural Prices report by 

the Secretary. 

(2) The price of soybean meal for a month shall be the central Illinois price for soybean meal, as reported in the Market 

News–Monthly Soybean Meal Price Report by the Secretary. 

(3) The price of alfalfa hay for a month shall be the price 

received during that month by farmers in the United States for 

alfalfa hay, as reported in the monthly Agricultural Prices report by the Secretary. 

(b) CALCULATION OF ACTUAL DAIRY PRODUCTION MARGIN.— 

(1) IN GENERAL.—For use in the margin protection program, the Secretary shall calculate the actual dairy production 

margin for each consecutive 2-month period by subtracting— 

(A) the average feed cost for that consecutive 2-month 

period, determined in accordance with subsection (a); from 

(B) the all-milk price for that consecutive 2-month period. 

(2) TIME FOR CALCULATION.—The calculation required by 

this subsection shall be made as soon as practicable using the 

full-month price of the applicable reference month. 


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SEC. 1403. ESTABLISHMENT OF MARGIN PROTECTION PROGRAM FOR 

DAIRY PRODUCERS. 

Not later than September 1, 2014, the Secretary shall establish 

and administer a margin protection program for dairy producers 

under which participating dairy operations are paid a margin protection payment when actual dairy production margins are less 

than the threshold levels for a margin protection payment. 

SEC. 1404. PARTICIPATION OF DAIRY OPERATIONS IN MARGIN PROTECTION PROGRAM. 

(a) ELIGIBILITY.—All dairy operations in the United States 

shall be eligible to participate in the margin protection program to 

receive margin protection payments. 

(b) REGISTRATION PROCESS.— 

(1) IN GENERAL.—The Secretary shall specify the manner 

and form by which a participating dairy operation may register 

to participate in the margin protection program. 

(2) TREATMENT OF MULTIPRODUCER DAIRY OPERATIONS.—If 

a participating dairy operation is operated by more than 1 

dairy producer, all of the dairy producers of the participating 

dairy operation shall be treated as a single dairy operation for 

purposes of participating in the margin protection program. 

(3) TREATMENT OF PRODUCERS WITH MULTIPLE DAIRY OPERATIONS.—If a dairy producer operates 2 or more dairy operations, each dairy operation of the producer shall separately 

register to participate in the margin protection program. 

(c) ANNUAL ADMINISTRATIVE FEE.— 

(1) ADMINISTRATIVE FEE REQUIRED.—Each participating 

dairy operation shall— 

(A) pay an administrative fee to register to participate 

in the margin protection program; and 

(B) pay the administrative fee annually through the 

duration of the margin protection program specified in section 1409. 

(2) AMOUNT OF FEE.—The administrative fee for a partici- pating dairy operation shall be $100. 

(3) USE OF FEES.—The Secretary shall use administrative 

fees collected under this subsection to cover administrative 

costs incurred to carry out the margin protection program. 

(d) RELATION TO LIVESTOCK GROSS MARGIN FOR DAIRY PRO- GRAM.—A dairy operation may participate in the margin protection 

program or the livestock gross margin for dairy program under the 

Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both. 

SEC. 1405. PRODUCTION HISTORY OF PARTICIPATING DAIRY OPERATIONS. 

(a) PRODUCTION HISTORY.— 

(1) IN GENERAL.—Except as provided in subsection (b), 

when a dairy operation first registers to participate in the margin protection program, the production history of the dairy operation for the margin protection program is equal to the highest annual milk marketings of the participating dairy operation during any one of the 2011, 2012, or 2013 calendar years. 

(2) ADJUSTMENT.—In subsequent years, the Secretary shall 

adjust the production history of a participating dairy operation 

determined under paragraph (1) to reflect any increase in the 

national average milk production. 


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(b) ELECTION BY NEW DAIRY OPERATIONS.—In the case of a 

participating dairy operation that has been in operation for less 

than a year, the participating dairy operation shall elect 1 of the 

following methods for the Secretary to determine the production 

history of the participating dairy operation: 

(1) The volume of the actual milk marketings for the 

months the participating dairy operation has been in operation 

extrapolated to a yearly amount. 

(2) An estimate of the actual milk marketings of the participating dairy operation based on the herd size of the participating dairy operation relative to the national rolling herd average data published by the Secretary. 

(c) REQUIRED INFORMATION.—A participating dairy operation 

shall provide all information that the Secretary may require in 

order to establish the production history of the participating dairy 

operation for purposes of participating in the margin protection 

program. 

SEC. 1406. MARGIN PROTECTION PAYMENTS. 

(a) COVERAGE LEVEL THRESHOLD AND COVERAGE PERCENTAGE.—For purposes of receiving margin protection payments for a 

consecutive 2-month period, a participating dairy operation shall 

annually elect— 

(1) a coverage level threshold that is equal to $4.00, $4.50, 

$5.00, $5.50, $6.00, $6.50, $7.00, $7.50, or $8.00; and 

(2) a percentage of coverage, in 5-percent increments, beginning with 25 percent and not exceeding 90 percent of the 

production history of the participating dairy operation. 

(b) PAYMENT THRESHOLD.—A participating dairy operation 

shall receive a margin protection payment whenever the average 

actual dairy production margin for a consecutive 2-month period is 

less than the coverage level threshold selected by the participating 

dairy operation. 

(c) AMOUNT OF MARGIN PROTECTION PAYMENT.—The margin 

protection payment for the participating dairy operation shall be 

determined as follows: 

(1) The Secretary shall calculate the amount by which the 

coverage level threshold selected by the participating dairy operation exceeds the average actual dairy production margin for 

the consecutive 2-month period. 

(2) The amount determined under paragraph (1) shall be 

multiplied by— 

(A) the coverage percentage selected by the participating dairy operation; and 

(B) the production history of the participating dairy 

operation divided by 6. 

SEC. 1407. PREMIUMS FOR MARGIN PROTECTION PROGRAM. 

(a) CALCULATION OF PREMIUMS.—For purposes of participating 

in the margin protection program, a participating dairy operation 

shall pay an annual premium equal to the product obtained by 

multiplying— 

(1) the coverage percentage elected by the participating 

dairy operation under section 1406(a)(2); 

(2) the production history of the participating dairy operation; and 


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(3) the premium per hundredweight of milk imposed by 

this section for the coverage level selected. 

(b) PREMIUM PER HUNDREDWEIGHT FOR FIRST 4 MILLION

POUNDS OF PRODUCTION.— 

(1) IN GENERAL.—For the first 4,000,000 pounds of milk 

marketings included in the production history of a participating dairy operation, the premium per hundredweight for 

each coverage level is specified in the table contained in paragraph (2). 

(2) PRODUCER PREMIUMS.—Except as provided in paragraph (3), the following annual premiums apply: 

Coverage Level Premium per Cwt. 

$4.00 None 

$4.50 $0.010 

$5.00 $0.025 

$5.50 $0.040 

$6.00 $0.055 

$6.50 $0.090 

$7.00 $0.217 

$7.50 $0.300 

$8.00 $0.475 

(3) SPECIAL RULE.—The premium per hundredweight specified in the table contained in paragraph (2) for each coverage 

level (except the $8.00 coverage level) shall be reduced by 25 

percent for each of calendar years 2014 and 2015. 

(c) PREMIUM PER HUNDREDWEIGHT FOR PRODUCTION IN EXCESS

OF 4 MILLION POUNDS.— 

(1) IN GENERAL.—For milk marketings in excess of 

4,000,000 pounds included in the production history of a participating dairy operation, the premium per hundredweight for 

each coverage level is specified in the table contained in paragraph (2). 

(2) PRODUCER PREMIUMS.—The following annual premiums 

apply: 

Coverage Level Premium per Cwt. 

$4.00 None 

$4.50 $0.020 

$5.00 $0.040 

$5.50 $0.100 

$6.00 $0.155 

$6.50 $0.290 

$7.00 $0.830 

$7.50 $1.060 

$8.00 $1.360 

(d) TIME FOR PAYMENT OF PREMIUM.—The Secretary shall provide more than 1 method by which a participating dairy operation 

may pay the premium required under this section in any manner 

that maximizes participating dairy operation payment flexibility 

and program integrity. 

(e) PREMIUM OBLIGATIONS.— 

(1) PRO-RATION OF PREMIUM FOR NEW PARTICIPANTS.—In 

the case of a participating dairy operation that first registers 

to participate in the margin protection program for a calendar 


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year after the start of the calendar year, the participating 

dairy operation shall pay a pro-rated premium for that calendar year based on the portion of the calendar year for which 

the participating dairy operation purchases the coverage. 

(2) LEGAL OBLIGATION.—A participating dairy operation in 

the margin protection program for a calendar year shall be legally obligated to pay the applicable premium for that calendar 

year, except that the Secretary may waive that obligation, 

under terms and conditions determined by the Secretary, for 

any participating dairy operation in the case of death, retirement, permanent dissolution of a participating dairy operation, 

or other circumstances as the Secretary considers appropriate 

to ensure the integrity of the program. 

SEC. 1408. EFFECT OF FAILURE TO PAY ADMINISTRATIVE FEES OR 

PREMIUMS. 

(a) LOSS OF BENEFITS.—A participating dairy operation that 

fails to pay the required annual administrative fee under section 

1404 or is in arrears on premium payments under section 1407— 

(1) remains legally obligated to pay the administrative fee 

or premiums, as the case may be; and 

(2) may not receive margin protection payments until the 

fees or premiums are fully paid. 

(b) ENFORCEMENT.—The Secretary may take such action as 

necessary to collect administrative fees and premium payments for 

participation in the margin protection program. 

SEC. 1409. DURATION. 

The margin protection program shall end on December 31, 

2018. 

SEC. 1410. ADMINISTRATION AND ENFORCEMENT. 

(a) IN GENERAL.—The Secretary shall promulgate regulations 

to address administrative and enforcement issues involved in carrying out the margin protection program. 

(b) RECONSTITUTION.—The Secretary shall promulgate regulations to prohibit a dairy producer from reconstituting a dairy operation for the purpose of the dairy producer receiving margin protection payments. 

(c) ADMINISTRATIVE APPEALS.—Using authorities under section 

1001(h) of the Food Security Act of 1985 (7 U.S.C. 1308(h)) and 

subtitle H of the Department of Agriculture Reorganization Act (7 

U.S.C. 6991 et seq.), the Secretary shall promulgate regulations to 

provide for administrative appeals of decisions of the Secretary 

that are adverse to participants of the margin protection program. 

(d) INCLUSION OF ADDITIONAL ORDER.—Section 143(a)(2) of the 

Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 

7253(a)(2)) is amended by adding at the end the following new sentence: ‘‘Subsection (b) does not apply to the authority of the Secretary under this subsection.’’. 

PART II—REPEAL OR REAUTHORIZATION OF 

OTHER DAIRY-RELATED PROVISIONS 

SEC. 1421. REPEAL OF DAIRY PRODUCT PRICE SUPPORT PROGRAM. 

Section 1501 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8771) is repealed. 


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SEC. 1422. TEMPORARY CONTINUATION AND EVENTUAL REPEAL OF 

MILK INCOME LOSS CONTRACT PROGRAM. 

(a) TEMPORARY CONTINUATION OF PAYMENTS UNDER MILK INCOME LOSS CONTRACT PROGRAM.—Section 1506 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8773) is amended— 

(1) in subsection (a), by adding at the end the following 

new paragraph: 

‘‘(6) TERMINATION DATE.—The term ‘termination date’ 

means the earlier of the following: 

‘‘(A) The date on which the Secretary certifies to Congress that the margin protection program required by section 1403 of the Agricultural Act of 2014 is operational. 

‘‘(B) September 1, 2014.’’; 

(2) in subsection (c)(3)— 

(A) in subparagraph (B), by inserting after ‘‘August 31, 

2013,’’ the following: ‘‘and for the period beginning February 1, 2014, and ending on the termination date,’’; and 

(B) in subparagraph (C), by striking ‘‘and thereafter,’’ 

and inserting ‘‘and ending January 31, 2014,’’; 

(3) in subsection (d)— 

(A) in paragraph (2), by striking ‘‘For any month beginning on or after September 1, 2013,’’ and inserting 

‘‘During the period beginning on September 1, 2013, and 

ending on January 31, 2014,’’; 

(B) by redesignating paragraph (3) as paragraph (4); 

and 

(C) by inserting after paragraph (2) the following new 

paragraph (3): 

‘‘(3) FINAL ADJUSTMENT AUTHORITY.—During the period beginning on February 1, 2014, and ending on the termination 

date, if the National Average Dairy Feed Ration Cost for a 

month during that period is greater than $7.35 per hundredweight, the amount specified in subsection (c)(2)(A) used to determine the payment rate for that month shall be increased by 

45 percent of the percentage by which the National Average 

Dairy Feed Ration Cost exceeds $7.35 per hundredweight.’’; 

(4) in subsection (e)(2)(A)— 

(A) in clause (ii), by inserting after ‘‘August 31, 2013,’’ 

the following: ‘‘and for the period beginning February 1, 

2014, and ending on the termination date,’’; and 

(B) in clause (iii), by striking ‘‘effective beginning September 1, 2013,’’ and inserting ‘‘for the period beginning 

September 1, 2013, and ending January 31, 2014,’’; 

(5) in subsection (g), by striking ‘‘during the period beginning on the date that is 90 days after the date of enactment 

of this Act and ending on September 30, 2013’’ and inserting 

‘‘until the termination date’’; and 

(6) in subsection (h)(1), by striking ‘‘September 30, 2013’’ 

and inserting ‘‘the termination date’’. 

(b) REPEAL OF MILK INCOME LOSS CONTRACT PROGRAM.— 

(1) REPEAL.—Effective on the termination date, section 

1506 of the Food, Conservation, and Energy Act of 2008 (7 

U.S.C. 8773) is repealed. 

(2) TERMINATION DATE DEFINED.—In paragraph (1), the 

term ‘‘termination date’’ means the earlier of the following: 


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(A) The date on which the Secretary certifies to Congress that the margin protection program required by section 1403 is operational. 

(B) September 1, 2014. 

SEC. 1423. REPEAL OF DAIRY EXPORT INCENTIVE PROGRAM. 

(a) REPEAL.—Section 153 of the Food Security Act of 1985 (15 

U.S.C. 713a–14) is repealed. 

(b) CONFORMING AMENDMENTS.—Section 902(2) of the Trade 

Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 

7201(2)) is amended— 

(1) by striking subparagraph (D); and 

(2) by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively. 

SEC. 1424. EXTENSION OF DAIRY FORWARD PRICING PROGRAM. 

Section 1502(e) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8772(e)) is amended— 

(1) in paragraph (1), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) in paragraph (2), by striking ‘‘2015’’ and inserting 

‘‘2021’’. 

SEC. 1425. EXTENSION OF DAIRY INDEMNITY PROGRAM. 

Section 3 of Public Law 90–484 (7 U.S.C. 450l) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 1426. EXTENSION OF DAIRY PROMOTION AND RESEARCH PROGRAM. 

Section 113(e)(2) of the Dairy Production Stabilization Act of 

1983 (7 U.S.C. 4504(e)(2)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 1427. REPEAL OF FEDERAL MILK MARKETING ORDER REVIEW 

COMMISSION. 

Section 1509 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 1726) is repealed. 

PART III—DAIRY PRODUCT DONATION 

PROGRAM 

SEC. 1431. DAIRY PRODUCT DONATION PROGRAM. 

(a) PROGRAM REQUIRED; PURPOSE.—Not later than 120 days 

after the date on which the Secretary certifies to Congress that the 

margin protection program is operational, the Secretary shall establish and administer a dairy product donation program for the 

purposes of— 

(1) addressing low operating margins experienced by participating dairy operations; and 

(2) providing nutrition assistance to individuals in low-income groups. 

(b) PROGRAM TRIGGER.—The Secretary shall announce that the 

dairy product donation program is in effect for a month, and undertake activities under subsection (c) during the month, whenever the 

actual dairy production margin has been $4.00 or less per hundredweight of milk for each of the immediately preceding 2 months. 

(c) REQUIRED PROGRAM ACTIVITIES.— 


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(1) IN GENERAL.—Whenever the dairy product donation 

program is in effect under subsection (b), the Secretary shall 

immediately purchase dairy products, at prevailing market 

prices, until such time as one of the termination conditions 

specified in subsection (d)(1) is met. 

(2) CONSULTATION.—To determine the types and quantities 

of dairy products to purchase under the dairy product donation 

program, the Secretary shall consult with public and private 

nonprofit organizations organized to feed low-income populations 

(d) TERMINATION OF PROGRAM ACTIVITIES.— (1) TERMINATION THRESHOLDS.—The Secretary shall cease 

activities under the dairy product donation program, and shall 

not reinitiate activities under the program until the condition 

specified in subsection (b) is again met, whenever any one of 

the following occurs: 

(A) The Secretary has made purchases under the dairy 

product donation program for three consecutive months, 

even if the actual dairy production margin remains $4.00 

or less per hundredweight of milk. 

(B) The actual dairy production margin has been 

greater than $4.00 per hundredweight of milk for the immediately preceding month. 

(C) The actual dairy production margin has been $4.00 

or less, but more than $3.00, per hundredweight of milk 

for the immediately preceding month and during the same 

month— 

(i) the price in the United States for cheddar 

cheese was more than 5 percent above the world price; 

or 

(ii) the price in the United States for non-fat dry 

milk was more than 5 percent above the world price 

of skim milk powder. 

(D) The actual dairy production margin has been $3.00 

or less per hundredweight of milk for the immediately preceding month and during the same month— 

(i) the price in the United States for cheddar 

cheese was more than 7 percent above the world price; 

or 

(ii) the price in the United States for non-fat dry 

milk was more than 7 percent above the world price 

of skim milk powder. 

(2) DETERMINATIONS.—For purposes of this subsection, the 

Secretary shall determine the price in the United States for 

cheddar cheese and non-fat dry milk and the world price of 

cheddar cheese and skim milk powder. 

(e) DISTRIBUTION OF PURCHASED DAIRY PRODUCTS.— 

(1) IN GENERAL.—The Secretary of Agriculture shall distribute, but not store, the dairy products purchased under the 

dairy product donation program in a manner that encourages 

the domestic consumption of such dairy products by diverting 

them to persons in low-income groups, as determined by the 

Secretary. 

(2) USE OF PUBLIC OR PRIVATE NONPROFIT ORGANIZATIONS.—The Secretary shall utilize the services of public and 


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private nonprofit organizations for the distribution of dairy 

products purchased under the dairy product donation program. 

A public or private nonprofit organization that receives dairy 

products may transfer the products to another public or private 

nonprofit organization that agrees to use the dairy products to 

provide, without cost or waste, nutrition assistance to individuals in low-income groups. 

(f) PROHIBITION ON RESALE OF PRODUCTS.—A public or private 

nonprofit organization that receives dairy products under subsection (e) may not sell the products back into commercial markets. 

(g) USE OF COMMODITY CREDIT CORPORATION FUNDS.—As specified in section 1601(a), the funds, facilities, and authorities of the 

Commodity Credit Corporation shall be available to the Secretary 

for the purposes of implementing and administering the dairy product donation program. 

(h) DURATION.—In addition to the termination conditions specified in subsection (d)(1), the dairy product donation program shall 

end on December 31, 2018. 

Subtitle E—Supplemental Agricultural Disaster Assistance 

Programs 

SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER ASSISTANCE. 

(a) DEFINITIONS.—In this section: 

(1) ELIGIBLE PRODUCER ON A FARM.— (A) IN GENERAL.—The term ‘‘eligible producer on a 

farm’’ means an individual or entity described in subparagraph (B) that, as determined by the Secretary, assumes 

the production and market risks associated with the agricultural production of crops or livestock. 

(B) DESCRIPTION.—An individual or entity referred to 

in subparagraph (A) is— 

(i) a citizen of the United States; 

(ii) a resident alien; 

(iii) a partnership of citizens of the United States; 

or 

(iv) a corporation, limited liability corporation, or 

other farm organizational structure organized under 

State law. 

(2) FARM-RAISED FISH.—The term ‘‘farm-raised fish’’ means 

any aquatic species that is propagated and reared in a controlled environment. 

(3) LIVESTOCK.—The term ‘‘livestock’’ includes— 

(A) cattle (including dairy cattle); 

(B) bison; 

(C) poultry; 

(D) sheep; 

(E) swine; 

(F) horses; and 

(G) other livestock, as determined by the Secretary. 

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture. 

(b) LIVESTOCK INDEMNITY PAYMENTS.— 

(1) PAYMENTS.—For fiscal year 2012 and each succeeding 

fiscal year, the Secretary shall use such sums as are necessary 

of the funds of the Commodity Credit Corporation to make liveVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00054 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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stock indemnity payments to eligible producers on farms that 

have incurred livestock death losses in excess of the normal 

mortality, as determined by the Secretary, due to— 

(A) attacks by animals reintroduced into the wild by 

the Federal Government or protected by Federal law, including wolves and avian predators; or 

(B) adverse weather, as determined by the Secretary, 

during the calendar year, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat, 

and extreme cold. 

(2) PAYMENT RATES.—Indemnity payments to an eligible 

producer on a farm under paragraph (1) shall be made at a 

rate of 75 percent of the market value of the applicable livestock on the day before the date of death of the livestock, as 

determined by the Secretary. 

(3) SPECIAL RULE FOR PAYMENTS MADE DUE TO DISEASE.— 

The Secretary shall ensure that payments made to an eligible 

producer under paragraph (1) are not made for the same livestock losses for which compensation is provided pursuant to 

section 10407(d) of the Animal Health Protection Act (7 U.S.C. 

8306(d)). 

(c) LIVESTOCK FORAGE DISASTER PROGRAM.— 

(1) DEFINITIONS.—In this subsection: 

(A) COVERED LIVESTOCK.— 

(i) IN GENERAL.—Except as provided in clause (ii), 

the term ‘‘covered livestock’’ means livestock of an eligible livestock producer that, during the 60 days prior 

to the beginning date of a qualifying drought or fire 

condition, as determined by the Secretary, the eligible 

livestock producer— 

(I) owned; 

(II) leased; 

(III) purchased; 

(IV) entered into a contract to purchase; 

(V) is a contract grower; or 

(VI) sold or otherwise disposed of due to qualifying drought conditions during— 

(aa) the current production year; or 

(bb) subject to paragraph (3)(B)(ii), 1 or 

both of the 2 production years immediately 

preceding the current production year. 

(ii) EXCLUSION.—The term ‘‘covered livestock’’ does 

not include livestock that were or would have been in 

a feedlot, on the beginning date of the qualifying 

drought or fire condition, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary. 

(B) DROUGHT MONITOR.—The term ‘‘drought monitor’’ 

means a system for classifying drought severity according 

to a range of abnormally dry to exceptional drought, as defined by the Secretary. 

(C) ELIGIBLE LIVESTOCK PRODUCER.— 

(i) IN GENERAL.—The term ‘‘eligible livestock producer’’ means an eligible producer on a farm that— 


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(I) is an owner, cash or share lessee, or contract grower of covered livestock that provides the 

pastureland or grazing land, including cash-leased 

pastureland or grazing land, for the livestock; 

(II) provides the pastureland or grazing land 

for covered livestock, including cash-leased 

pastureland or grazing land that is physically located in a county affected by drought; 

(III) certifies grazing loss; and 

(IV) meets all other eligibility requirements 

established under this subsection. 

(ii) EXCLUSION.—The term ‘‘eligible livestock producer’’ does not include an owner, cash or share lessee, 

or contract grower of livestock that rents or leases 

pastureland or grazing land owned by another person 

on a rate-of-gain basis. 

(D) NORMAL CARRYING CAPACITY.—The term ‘‘normal 

carrying capacity’’, with respect to each type of grazing 

land or pastureland in a county, means the normal carrying capacity, as determined under paragraph (3)(D)(i), 

that would be expected from the grazing land or 

pastureland for livestock during the normal grazing period, in the absence of a drought or fire that diminishes 

the production of the grazing land or pastureland. 

(E) NORMAL GRAZING PERIOD.—The term ‘‘normal grazing period’’, with respect to a county, means the normal 

grazing period during the calendar year for the county, as 

determined under paragraph (3)(D)(i). 

(2) PROGRAM.—For fiscal year 2012 and each succeeding 

fiscal year, the Secretary shall use such sums as are necessary 

of the funds of the Commodity Credit Corporation to provide 

compensation for losses to eligible livestock producers due to 

grazing losses for covered livestock due to— 

(A) a drought condition, as described in paragraph (3); 

or 

(B) fire, as described in paragraph (4). 

(3) ASSISTANCE FOR LOSSES DUE TO DROUGHT CONDI- TIONS.— (A) ELIGIBLE LOSSES.— (i) IN GENERAL.—An eligible livestock producer 

may receive assistance under this subsection only for 

grazing losses for covered livestock that occur on land 

that— 

(I) is native or improved pastureland with 

permanent vegetative cover; or 

(II) is planted to a crop planted specifically for 

the purpose of providing grazing for covered livestock. 

(ii) EXCLUSIONS.—An eligible livestock producer 

may not receive assistance under this subsection for 

grazing losses that occur on land used for haying or 

grazing under 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.). 


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(B) MONTHLY PAYMENT RATE.— 

(i) IN GENERAL.—Except as provided in clause (ii), 

the payment rate for assistance under this paragraph 

for 1 month shall, in the case of drought, be equal to 

60 percent of the lesser of— 

(I) the monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as determined under subparagraph (C); or 

(II) the monthly feed cost calculated by using 

the normal carrying capacity of the eligible grazing land of the eligible livestock producer. 

(ii) PARTIAL COMPENSATION.—In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to drought conditions in 

1 or both of the 2 production years immediately preceding the current production year, as determined by 

the Secretary, the payment rate shall be 80 percent of 

the payment rate otherwise calculated in accordance 

with clause (i). 

(C) MONTHLY FEED COST.— 

(i) IN GENERAL.—The monthly feed cost shall 

equal the product obtained by multiplying— 

(I) 30 days; 

(II) a payment quantity that is equal to the 

feed grain equivalent, as determined under clause 

(ii); and 

(III) a payment rate that is equal to the corn 

price per pound, as determined under clause (iii). 

(ii) FEED GRAIN EQUIVALENT.—For purposes of 

clause (i)(II), the feed grain equivalent shall equal— 

(I) in the case of an adult beef cow, 15.7 

pounds of corn per day; or 

(II) in the case of any other type of weight of 

livestock, an amount determined by the Secretary 

that represents the average number of pounds of 

corn per day necessary to feed the livestock. 

(iii) CORN PRICE PER POUND.—For purposes of 

clause (i)(III), the corn price per pound shall equal the 

quotient obtained by dividing— 

(I) the higher of— 

(aa) the national average corn price per 

bushel for the 12-month period immediately 

preceding March 1 of the year for which the 

disaster assistance is calculated; or 

(bb) the national average corn price per 

bushel for the 24-month period immediately 

preceding that March 1; by 

(II) 56. 

(D) NORMAL GRAZING PERIOD AND DROUGHT MONITOR

INTENSITY.— 

(i) FSA COUNTY COMMITTEE DETERMINATIONS.— 

(I) IN GENERAL.—The Secretary shall determine the normal carrying capacity and normal 

grazing period for each type of grazing land or 


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pastureland in the county served by the applicable 

committee. 

(II) CHANGES.—No change to the normal carrying capacity or normal grazing period established for a county under subclause (I) shall be 

made unless the change is requested by the appropriate State and county Farm Service Agency 

committees. 

(ii) DROUGHT INTENSITY.— 

(I) D2.—An eligible livestock producer that 

owns or leases grazing land or pastureland that is 

physically located in a county that is rated by the 

U.S. Drought Monitor as having a D2 (severe 

drought) intensity in any area of the county for at 

least 8 consecutive weeks during the normal grazing period for the county, as determined by the 

Secretary, shall be eligible to receive assistance 

under this paragraph in an amount equal to 1 

monthly payment using the monthly payment rate 

determined under subparagraph (B). 

(II) D3.—An eligible livestock producer that 

owns or leases grazing land or pastureland that is 

physically located in a county that is rated by the 

U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county 

at any time during the normal grazing period for 

the county, as determined by the Secretary, shall 

be eligible to receive assistance under this paragraph— 

(aa) in an amount equal to 3 monthly 

payments using the monthly payment rate determined under subparagraph (B); 

(bb) if the county is rated as having a D3 

(extreme drought) intensity in any area of the 

county for at least 4 weeks during the normal 

grazing period for the county, or is rated as 

having a D4 (exceptional drought) intensity in 

any area of the county at any time during the 

normal grazing period, in an amount equal to 

4 monthly payments using the monthly payment rate determined under subparagraph 

(B); or 

(cc) if the county is rated as having a D4 

(exceptional drought) intensity in any area of 

the county for at least 4 weeks during the 

normal grazing period, in an amount equal to 

5 monthly payments using the monthly rate 

determined under subparagraph (B). 

(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON PUBLIC MANAGED LAND.— 

(A) IN GENERAL.—An eligible livestock producer may 

receive assistance under this paragraph only if— 

(i) the grazing losses occur on rangeland that is 

managed by a Federal agency; and 


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(ii) the eligible livestock producer is prohibited by 

the Federal agency from grazing the normal permitted 

livestock on the managed rangeland due to a fire. 

(B) PAYMENT RATE.—The payment rate for assistance 

under this paragraph shall be equal to 50 percent of the 

monthly feed cost for the total number of livestock covered 

by the Federal lease of the eligible livestock producer, as 

determined under paragraph (3)(C). 

(C) PAYMENT DURATION.— (i) IN GENERAL.—Subject to clause (ii), an eligible 

livestock producer shall be eligible to receive assistance under this paragraph for the period— 

(I) beginning on the date on which the Federal agency excludes the eligible livestock producer from using the managed rangeland for grazing; and 

(II) ending on the last day of the Federal 

lease of the eligible livestock producer. 

(ii) LIMITATION.—An eligible livestock producer 

may only receive assistance under this paragraph for 

losses that occur on not more than 180 days per year. 

(5) NO DUPLICATIVE PAYMENTS.—An eligible livestock producer may elect to receive assistance for grazing or pasture 

feed losses due to drought conditions under paragraph (3) or 

fire under paragraph (4), but not both for the same loss, as determined by the Secretary. 

(d) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY BEES, AND

FARM-RAISED FISH.— (1) IN GENERAL.—For fiscal year 2012 and each succeeding 

fiscal year, the Secretary shall use not more than $20,000,000 

of the funds of the Commodity Credit Corporation to provide 

emergency relief to eligible producers of livestock, honey bees, 

and farm-raised fish to aid in the reduction of losses due to disease (including cattle tick fever), adverse weather, or other 

conditions, such as blizzards and wildfires, as determined by 

the Secretary, that are not covered under subsection (b) or (c). 

(2) USE OF FUNDS.—Funds made available under this subsection shall be used to reduce losses caused by feed or water 

shortages, disease, or other factors as determined by the Secretary. 

(3) AVAILABILITY OF FUNDS.—Any funds made available 

under this subsection shall remain available until expended. 

(e) TREE ASSISTANCE PROGRAM.— 

(1) DEFINITIONS.—In this subsection: 

(A) ELIGIBLE ORCHARDIST.—The term ‘‘eligible orchardist’’ means a person that produces annual crops from trees 

for commercial purposes. 

(B) NATURAL DISASTER.—The term ‘‘natural disaster’’ 

means plant disease, insect infestation, drought, fire, 

freeze, flood, earthquake, lightning, or other occurrence, as 

determined by the Secretary. 

(C) NURSERY TREE GROWER.—The term ‘‘nursery tree 

grower’’ means a person who produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale, 

as determined by the Secretary. 


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(D) TREE.—The term ‘‘tree’’ includes a tree, bush, and 

vine. 

(2) ELIGIBILITY.— (A) LOSS.—Subject to subparagraph (B), for fiscal year 

2012 and each succeeding fiscal year, the Secretary shall 

use such sums as are necessary of the funds of the Commodity Credit Corporation to provide assistance— 

(i) under paragraph (3) to eligible orchardists and 

nursery tree growers that planted trees for commercial 

purposes but lost the trees as a result of a natural disaster, as determined by the Secretary; and 

(ii) under paragraph (3)(B) to eligible orchardists 

and nursery tree growers that have a production history for commercial purposes on planted or existing 

trees but lost the trees as a result of a natural disaster, as determined by the Secretary. 

(B) LIMITATION.—An eligible orchardist or nursery tree 

grower shall qualify for assistance under subparagraph (A) 

only if the tree mortality of the eligible orchardist or nursery tree grower, as a result of damaging weather or related 

condition, exceeds 15 percent (adjusted for normal mortality). 

(3) ASSISTANCE.—Subject to paragraph (4), the assistance 

provided by the Secretary to eligible orchardists and nursery 

tree growers for losses described in paragraph (2) shall consist 

of— 

(A)(i) reimbursement of 65 percent of the cost of replanting trees lost due to a natural disaster, as determined 

by the Secretary, in excess of 15 percent mortality (adjusted for normal mortality); or 

(ii) at the option of the Secretary, sufficient seedlings 

to reestablish a stand; and 

(B) reimbursement of 50 percent of the cost of pruning, removal, and other costs incurred by an eligible orchardist or nursery tree grower to salvage existing trees 

or, in the case of tree mortality, to prepare the land to replant trees as a result of damage or tree mortality due to 

a natural disaster, as determined by the Secretary, in excess of 15 percent damage or mortality (adjusted for normal tree damage and mortality). 

(4) LIMITATIONS ON ASSISTANCE.— 

(A) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In 

this paragraph, the terms ‘‘legal entity’’ and ‘‘person’’ have 

the meaning given those terms in section 1001(a) of the 

Food Security Act of 1985 (7 U.S.C. 1308(a)). 

(B) AMOUNT.—The total amount of payments received, 

directly or indirectly, by a person or legal entity (excluding 

a joint venture or general partnership) under this subsection may not exceed $125,000 for any crop year, or an 

equivalent value in tree seedlings. 

(C) ACRES.—The total quantity of acres planted to 

trees or tree seedlings for which a person or legal entity 

shall be entitled to receive payments under this subsection 

may not exceed 500 acres. 

(f) PAYMENT LIMITATIONS.— 


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(1) DEFINITIONS OF LEGAL ENTITY AND PERSON.—In this 

subsection, the terms ‘‘legal entity’’ and ‘‘person’’ have the 

meaning given those terms in section 1001(a) of the Food Security Act of 1985 (7 U.S.C. 1308(a)). 

(2) AMOUNT.—The total amount of disaster assistance payments received, directly or indirectly, by a person or legal entity (excluding a joint venture or general partnership) under this 

section (excluding payments received under subsection (e)) may 

not exceed $125,000 for any crop year. 

(3) DIRECT ATTRIBUTION.—Subsections (e) and (f) of section 

1001 of the Food Security Act of 1985 (7 U.S.C. 1308) or any 

successor provisions relating to direct attribution shall apply 

with respect to assistance provided under this section. 

Subtitle F—Administration 

SEC. 1601. ADMINISTRATION GENERALLY. 

(a) USE OF COMMODITY CREDIT CORPORATION.—The Secretary 

shall use the funds, facilities, and authorities of the Commodity 

Credit Corporation to carry out this title. 

(b) DETERMINATIONS BY SECRETARY.—A determination made by 

the Secretary under this title shall be final and conclusive. 

(c) REGULATIONS.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, not later than 90 days after the date of enactment of 

this Act, the Secretary and the Commodity Credit Corporation, 

as appropriate, shall promulgate such regulations as are necessary to implement this title and the amendments made by 

this title. 

(2) PROCEDURE.—The promulgation of the regulations and 

administration of this title and the amendments made by this 

title and sections 11003 and 11017 shall be made without regard to— 

(A) the notice and comment provisions of section 553 

of title 5, United States Code; 

(B) chapter 35 of title 44, United States Code (commonly known as the ‘‘Paperwork Reduction Act’’); and 

(C) 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. 

(3) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In 

carrying out this subsection, the Secretary shall use the authority provided under section 808 of title 5, United States 

Code. 

(d) ADJUSTMENT AUTHORITY RELATED TO TRADE AGREEMENTS

COMPLIANCE.— 

(1) REQUIRED DETERMINATION; ADJUSTMENT.—If the Secretary determines that expenditures under this title that are 

subject to the total allowable domestic support levels under the 

Uruguay Round Agreements (as defined in section 2 of the 

Uruguay Round Agreements Act (19 U.S.C. 3501)) will exceed 

such allowable levels for any applicable reporting period, the 

Secretary shall, to the maximum extent practicable, make adjustments in the amount of such expenditures during that peVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00061 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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riod to ensure that such expenditures do not exceed the allowable levels. 

(2) CONGRESSIONAL NOTIFICATION.—Before making any adjustment under paragraph (1), the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry of 

the Senate a report describing the determination made under 

that paragraph and the extent of the adjustment to be made. 

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY. 

(a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The following 

provisions of the Agricultural Adjustment Act of 1938 shall not be 

applicable to the 2014 through 2018 crops of covered commodities 

(as defined in section 1111), cotton, and sugar and shall not be applicable to milk during the period beginning on the date of enactment of this Act through December 31, 2018: 

(1) Parts II through V of subtitle B of title III (7 U.S.C. 

1326 et seq.). 

(2) In the case of upland cotton, section 377 (7 U.S.C. 

1377). 

(3) Subtitle D of title III (7 U.S.C. 1379a et seq.). 

(4) Title IV (7 U.S.C. 1401 et seq.). 

(b) AGRICULTURAL ACT OF 1949.—The following provisions of 

the Agricultural Act of 1949 shall not be applicable to the 2014 

through 2018 crops of covered commodities (as defined in section 

1111), cotton, and sugar and shall not be applicable to milk during 

the period beginning on the date of enactment of this Act and 

through December 31, 2018: 

(1) Section 101 (7 U.S.C. 1441). 

(2) Section 103(a) (7 U.S.C. 1444(a)). 

(3) Section 105 (7 U.S.C. 1444b). 

(4) Section 107 (7 U.S.C. 1445a). 

(5) Section 110 (7 U.S.C. 1445e). 

(6) Section 112 (7 U.S.C. 1445g). 

(7) Section 115 (7 U.S.C. 1445k). 

(8) Section 201 (7 U.S.C. 1446). 

(9) Title III (7 U.S.C. 1447 et seq.). 

(10) Title IV (7 U.S.C. 1421 et seq.), other than sections 

404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431). 

(11) Title V (7 U.S.C. 1461 et seq.). 

(12) Title VI (7 U.S.C. 1471 et seq.). 

(c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.—The joint resolution entitled ‘‘A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as 

amended’’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall 

not be applicable to the crops of wheat planted for harvest in the 

calendar years 2014 through 2018. 

SEC. 1603. PAYMENT LIMITATIONS. 

(a) IN GENERAL.—Section 1001 of the Food Security Act of 1985 

(7 U.S.C. 1308) is amended by striking subsections (b) and (c) and 

inserting the following: 

‘‘(b) LIMITATION ON PAYMENTS FOR COVERED COMMODITIES

(OTHER THAN PEANUTS).—The total amount of payments received, 

directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under sections 1116 


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and 1117 and as marketing loan gains or loan deficiency payments 

under subtitle B of title I of the Agricultural Act of 2014 (other 

than for peanuts) may not exceed $125,000. 

‘‘(c) LIMITATION ON PAYMENTS FOR PEANUTS.—The total 

amount of payments received, directly or indirectly, by a person or 

legal entity (except a joint venture or general partnership) for any 

crop year under sections 1116 and 1117 and as marketing loan 

gains or loan deficiency payments under subtitle B of title I of the 

Agricultural Act of 2014 for peanuts may not exceed $125,000.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) LIMITATION ON APPLICABILITY.—Section 1001(d) of the 

Food Security Act of 1985 (7 U.S.C. 1308(d)) is amended by 

striking ‘‘the marketing assistance loan program or the loan 

deficiency payment program under title I of the Food, Conservation, and Energy Act of 2008’’ and inserting ‘‘the forfeiture of a commodity pledged as collateral for a loan made 

available under subtitle B of title I of the Agricultural Act of 

2014’’. 

(2) TREATMENT OF FEDERAL AGENCIES AND STATE AND

LOCAL GOVERNMENTS.—Section 1001(f) of the Food Security Act 

of 1985 (7 U.S.C. 1308(f)) is amended— 

(A) in paragraph (5)(A), by striking ‘‘or title XII’’ and 

inserting ‘‘, title I of the Agricultural Act of 2014, or title 

XII’’; and 

(B) in paragraph (6)(A), by striking ‘‘or title XII’’ and 

inserting ‘‘, title I of the Agricultural Act of 2014, or title 

XII’’. 

(3) FOREIGN PERSONS INELIGIBLE.—Section 1001C(a) of the 

Food Security Act of 1985 (7 U.S.C. 1308–3(a)) is amended by 

inserting ‘‘title I of the Agricultural Act of 2014,’’ after ‘‘2008,’’. 

(c) APPLICATION.—The amendments made by this section shall 

apply beginning with the 2014 crop year. 

SEC. 1604. RULEMAKING RELATED TO SIGNIFICANT CONTRIBUTION 

FOR ACTIVE PERSONAL MANAGEMENT. 

(a) REGULATIONS REQUIRED.—Within 180 days after the date of 

the enactment of this Act, the Secretary shall promulgate, with an 

opportunity for notice and comment, regulations— 

(1) to define the term ‘‘significant contribution of active 

personal management’’ for purposes of section 1001A of the 

Food Security Act of 1985 (7 U.S.C. 1308–1); and 

(2) if the Secretary determines it is appropriate, to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when 

a significant contribution of active personal management is the 

basis used to meet the requirement of being actively engaged 

in farming under section 1001A of the Food Security Act of 

1985 (7 U.S.C. 1308–1) by an individual or entity. 

(b) CONSIDERATIONS.—In promulgating the regulations required under subsection (a), the Secretary shall consider— 

(1) the size, nature, and management requirements of each 

type of farming operation; 

(2) the changing nature of active personal management 

due to advancements of farming operations; and 


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(3) the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation. 

(c) FAMILY FARMS.—The Secretary shall not apply the regulations promulgated pursuant to subsection (a) to individuals or entities comprised solely of family members (as that term is defined in 

section 1001(a)(2) of the Food Security Act of 1985 (7 U.S.C. 

1308(a)(2))). 

(d) MONITORING.—The regulations promulgated pursuant to 

subsection (a) shall include a plan for monitoring the status of compliance reviews for whether a person or entity is in compliance 

with the regulations. 

(e) PAPERWORK REDUCTION.—In order to conserve Federal resources and prevent unnecessary paperwork burdens, the Secretary 

shall ensure that any additional paperwork required as a result of 

the regulations promulgated pursuant to subsection (a) be limited 

to those persons who are subject to such regulations. 

(f) RELATION TO OTHER REQUIREMENTS.—Nothing in this section may be construed to authorize the Secretary to alter, directly 

or indirectly, existing regulations for other requirements in section 

1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1). 

(g) EFFECTIVE DATE.—The requirements of any regulation promulgated pursuant to this section shall apply beginning with the 

2015 crop year. 

SEC. 1605. ADJUSTED GROSS INCOME LIMITATION. 

(a) LIMITATIONS AND COVERED BENEFITS.—Section 1001D(b) of 

the Food Security Act of 1985 (7 U.S.C. 1308–3a(b)) is amended— 

(1) in the subsection heading, by striking ‘‘LIMITATIONS’’ 

and inserting ‘‘LIMITATIONS ON COMMODITY AND CONSERVATION

PROGRAMS’’; 

(2) by striking paragraphs (1) and (2) and inserting the following new paragraphs: 

‘‘(1) LIMITATION.—Notwithstanding any other provision of 

law, a person or legal entity shall not be eligible to receive any 

benefit described in paragraph (2) during a crop, fiscal, or program year, as appropriate, if the average adjusted gross income of the person or legal entity exceeds $900,000. 

‘‘(2) COVERED BENEFITS.—Paragraph (1) applies with respect to the following: 

‘‘(A) A payment or benefit under subtitle A or E of title 

I of the Agricultural Act of 2014. 

‘‘(B) A marketing loan gain or loan deficiency payment 

under subtitle B of title I of the Agricultural Act of 2014. 

‘‘(C) Starting with fiscal year 2015, a payment or benefit under title II of the Agricultural Act of 2014, title II 

of the Farm Security and Rural Investment Act of 2002, 

title II of the Food, Conservation, and Energy Act of 2008, 

or title XII of the Food Security Act of 1985. 

‘‘(D) A payment or benefit under section 524(b) of the 

Federal Crop Insurance Act (7 U.S.C. 1524(b)). 

‘‘(E) A payment or benefit under section 196 of the 

Federal Agriculture Improvement and Reform Act of 1996 

(7 U.S.C. 7333).’’. 


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(b) UPDATING DEFINITIONS.—Paragraph (1) of section 1001D(a) 

of the Food Security Act of 1985 (7 U.S.C. 1308–3a(a)) is amended 

to read as follows: 

‘‘(1) AVERAGE ADJUSTED GROSS INCOME.—In this section, 

the term ‘average adjusted gross income’, with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over 

the 3 taxable years preceding the most immediately preceding 

complete taxable year, as determined by the Secretary.’’. 

(c) INCOME DETERMINATION.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended— 

(1) by striking subsection (c); and 

(2) by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. 

(d) CONFORMING AMENDMENTS.—Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended— 

(1) in subsection (a)(2)— 

(A) by striking ‘‘subparagraph (A) or (B) of’’; and 

(B) by striking ‘‘, the average adjusted gross farm income, and the average adjusted gross nonfarm income’’; 

(2) in subsection (a)(3), by striking ‘‘, average adjusted 

gross farm income, and average adjusted gross nonfarm income’’ both places it appears; 

(3) in subsection (c) (as redesignated by subsection (c)(2) of 

this section)— 

(A) in paragraph (1), by striking ‘‘, average adjusted 

gross farm income, and average adjusted gross nonfarm income’’ both places it appears; and 

(B) in paragraph (2), by striking ‘‘paragraphs (1)(C) 

and (2)(B) of subsection (b)’’ and inserting ‘‘subsection 

(b)(2)’’; and 

(4) in subsection (d) (as redesignated by subsection (c)(2) of 

this section)— 

(A) by striking ‘‘paragraphs (1)(C) and (2)(B) of subsection (b)’’ and inserting ‘‘subsection (b)(2)’’; and 

(B) by striking ‘‘, average adjusted gross farm income, 

or average adjusted gross nonfarm income’’. 

(e) EFFECTIVE PERIOD.—Subsection (e) of section 1001D of the 

Food Security Act of 1985 (7 U.S.C. 1308–3a), as redesignated by 

subsection (c)(2) of this section, is repealed. 

(f) LIMITATION ON APPLICABILITY.—Section 1001(d) of the Food 

Security Act of 1985 (7 U.S.C. 1308) is amended by inserting before 

the period at the end the following: ‘‘or title I of the Agricultural 

Act of 2014’’. 

(g) TRANSITION.—Section 1001D of the Food Security Act of 

1985 (7 U.S.C. 1308–3a), as in effect on the day before the date of 

the enactment of this Act, shall apply with respect to the 2013 

crop, fiscal, or program year, as appropriate, for each program described in paragraphs (1)(C) and (2)(B) of subsection (b) of that section (as so in effect on that day). 

SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS AND 

RANCHERS. 

Section 1621(d) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8792(d)) is amended by striking ‘‘each of fiscal years 


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2009 through 2012’’ and inserting ‘‘fiscal year 2009 and each succeeding fiscal year’’. 

SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES. 

Section 164 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284) is amended by striking ‘‘and title 

I of the Food, Conservation, and Energy Act of 2008’’ each place it 

appears and inserting ‘‘title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.), and title I of the Agricultural Act of 2014’’. 

SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RECEIVING PAYMENTS UNDER FARM COMMODITY PROGRAMS. 

(a) RECONCILIATION.—At least twice each year, the Secretary 

shall reconcile Social Security numbers of all individuals who receive payments under this title, whether directly or indirectly, with 

the Commissioner of Social Security to determine if the individuals 

are alive. 

(b) PRECLUSION.—The Secretary shall preclude the issuance of 

payments to, and on behalf of, deceased individuals that were not 

eligible for payments. 

SEC. 1609. TECHNICAL CORRECTIONS. 

(a) MISSING PUNCTUATION.—Section 359f(c)(1)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by adding a period at the end. 

(b) ERRONEOUS CROSS REFERENCE.— (1) AMENDMENT.—Section 1603(g) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 

1739) is amended in paragraphs (2) through (6) and the 

amendments made by those paragraphs by striking ‘‘1703(a)’’ 

each place it appears and inserting ‘‘1603(a)’’. 

(2) EFFECTIVE DATE.—This subsection and the amendments made by this subsection take effect as if included in the 

Food, Conservation, and Energy Act of 2008 (Public Law 110– 

246; 122 Stat. 1651). 

(c) CONTINUED APPLICABILITY OF APPROPRIATIONS GENERAL

PROVISION.—Section 767 of division A of Public Law 108–7 (7 

U.S.C. 7911 note; 117 Stat. 48) is amended— 

(1) by striking ‘‘(a)’’; 

(2) by striking ‘‘sections 1101 and 1102 of Public Law 107– 

171’’ and inserting ‘‘subtitle A of title I of the Agricultural Act 

of 2014’’; and 

(3) by striking ‘‘such section 1102’’ and inserting ‘‘such subtitle’’; and 

(4) by striking subsection (b). 

SEC. 1610. APPEALS. 

(a) DIRECTION, CONTROL, AND SUPPORT.—Section 272 of the 

Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 

6992) is amended by striking subsection (c) and inserting the following: 

‘‘(c) DIRECTION, CONTROL, AND SUPPORT.— 

‘‘(1) DIRECTION AND CONTROL.— 

‘‘(A) IN GENERAL.—Except as provided in paragraph 

(2), the Director shall be free from the direction and control of any person other than the Secretary or the Deputy 

Secretary of Agriculture. 


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‘‘(B) ADMINISTRATIVE SUPPORT.—The Division shall not 

receive administrative support (except on a reimbursable 

basis) from any agency other than the Office of the Secretary. 

‘‘(C) PROHIBITION ON DELEGATION.—The Secretary may 

not delegate to any other officer or employee of the Department, other than the Deputy Secretary of Agriculture or 

the Director, the authority of the Secretary with respect to 

the Division. 

‘‘(2) EXCEPTION.—The Assistant Secretary for Administration is authorized to investigate, enforce, and implement the 

provisions in law, Executive order, or regulations that relate in 

general to competitive and excepted service positions and employment within the Division, including the position of Director, and such authority may be further delegated to subordinate officials.’’. 

(b) CONFORMING AMENDMENT.—Section 296(b) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7014(b)) 

is amended— 

(1) in the matter preceding paragraph (1) by striking ‘‘affect—’’ and inserting ‘‘affect:’’; 

(2) by striking ‘‘the authority’’ each place it appears in 

paragraphs (1) through (7) and inserting ‘‘The authority’’; 

(3) by striking the semicolon at the end of each of paragraphs (1) through (5) and inserting a period; 

(4) in paragraph (6)(C), by striking ‘‘; or’’ at the end and 

inserting a period; and 

(5) by adding at the end the following: 

‘‘(8) The authority of the Secretary to carry out amendments made to this title by the Agricultural Act of 2014.’’. 

SEC. 1611. ASSIGNMENT OF PAYMENTS. 

(a) IN GENERAL.—The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), relating 

to assignment of payments, shall apply to payments made under 

this title. 

(b) NOTICE.—The producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as 

the Secretary may require, of any assignment made under this section. 

SEC. 1612. TRACKING OF BENEFITS. 

As soon as practicable after the date of enactment of this Act, 

the Secretary may track the benefits provided, directly or indirectly, to individuals and entities under titles I and II and the 

amendments made by those titles. 

SEC. 1613. SIGNATURE AUTHORITY. 

(a) IN GENERAL.—In carrying out this title and title II and 

amendments made by those titles, if the Secretary approves a document, the Secretary shall not subsequently determine the document is inadequate or invalid because of the lack of authority of 

any person signing the document on behalf of the applicant or any 

other individual, entity, general partnership, or joint venture, or 

the documents relied upon were determined inadequate or invalid, 

unless the person signing the program document knowingly and 


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willfully falsified the evidence of signature authority or a signature. 

(b) AFFIRMATION.— (1) IN GENERAL.—Nothing in this section prohibits the Secretary from asking a proper party to affirm any document that 

otherwise would be considered approved under subsection (a). 

(2) NO RETROACTIVE EFFECT.—A denial of benefits based 

on a lack of affirmation under paragraph (1) shall not be retroactive with respect to third-party producers who were not the 

subject of the erroneous representation of authority, if the 

third-party producers— 

(A) relied on the prior approval by the Secretary of the 

documents in good faith; and 

(B) substantively complied with all program requirements. 

SEC. 1614. IMPLEMENTATION. 

(a) MAINTENANCE OF BASE ACRES AND PAYMENT YIELDS.—The 

Secretary shall maintain, for each covered commodity and upland 

cotton, base acres and payment yields on a farm established under 

sections 1001 and 1301 of the Food, Conservation, and Energy Act 

of 2008 (7 U.S.C. 8702, 8751), as adjusted pursuant to sections 

1101, 1102, 1108, and 1302 of such Act (7 U.S.C. 8711, 8712, 8718, 

8752), as in effect on September 30, 2013. 

(b) STREAMLINING.—In implementing this title, the Secretary 

shall— 

(1) reduce administrative burdens and costs to producers 

by streamlining and reducing paperwork, forms, and other administrative requirements, including through the implementation of the Acreage Crop Reporting and Streamlining Initiative 

that, in part, shall ensure that— 

(A) a producer (or an agent of a producer) may report 

information, electronically (including geospatial data) or 

conventionally, to the Department; and 

(B) upon the request of the producer (or agent thereof) 

the Department of Agriculture electronically shares with 

the producer (or agent) in real time and without cost to the 

producer (or agent) the common land unit data, related 

farm level data, and other information of the producer; 

(2) improve coordination, information sharing, and administrative work with the Farm Service Agency, Risk Management Agency, and the Natural Resources Conservation Service; 

and 

(3) take advantage of new technologies to enhance efficiency and effectiveness of program delivery to producers. 

(c) IMPLEMENTATION.— 

(1) IN GENERAL.—The Secretary shall make available to 

the Farm Service Agency to carry out this title $100,000,000. 

(2) ADDITIONAL FUNDS.— 

(A) INITIAL DETERMINATION.—If, by September 30, 

2014, the Secretary notifies the Committee on Agriculture 

of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the 

Farm Service Agency has made substantial progress toward implementing the requirements of subsection (b)(1), 

the Secretary shall make available to the Farm Service 


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Agency to carry out this title $10,000,000 on October 1, 

2014. The amount made available under this subparagraph is in addition to the amount made available under 

paragraph (1). 

(B) SUBSEQUENT DETERMINATION.—If, by September 

30, 2015, the Secretary notifies the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that the requirements of subsection (b)(1) have been 

fully implemented and those Committees provide written 

concurrence to the Secretary, the Secretary shall make 

available to the Farm Service Agency to carry out this title 

$10,000,000 on the date the written concurrence is provided or October 1, 2015, whichever is later. The amount 

made available under this subparagraph is in addition to 

the amount made available under paragraph (1) and any 

amount made available under subparagraph (A). 

(3) PRODUCER EDUCATION.— (A) IN GENERAL.—Of the funds made available under 

paragraph (1), the Secretary shall provide $3,000,000 to 

State extension services for the purpose of educating farmers and ranchers on the options made available under subtitles A, D, and E of this title and under section 196 of the 

Federal Agriculture Improvement and Reform Act of 1996 

(7 U.S.C. 7333). 

(B) WEB-BASED DECISION AIDS.— (i) USE OF QUALIFIED UNIVERSITIES.—Of the funds 

made available under paragraph (1), the Secretary 

shall use $3,000,000 to support qualified universities 

(or university-based organizations) that represent a diversity of regions and commodities (including dairy), 

possess expertise regarding the programs authorized 

by this Act, have a history in the development of decision aids and producer outreach initiatives regarding 

farm risk management programs, and are able to meet 

the deadline established pursuant to clause (ii) to develop web-based decision aids to assist producers in 

understanding available options described in subparagraph (A) and to train producers to use these decision 

aids. 

(ii) DEADLINES.—To the maximum extent practicable, the Secretary shall— 

(I) obligate the funds made available under 

clause (i) within 30 days after the date of the enactment of this Act; and 

(II) require the products described in clause 

(i) to be made available to producers on the internet within a reasonable period of time, as determined by the Secretary, after the implementation 

of the first rule implementing programs required 

under subtitle A of this title. 

(d) LOAN IMPLEMENTATION.— (1) IN GENERAL.—In any crop year in which an order is 

issued pursuant 2 U.S.C. 901(a), the Secretary shall use such 

sums as necessary of the funds of the Commodity Credit CorVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00069 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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poration for such crop year to fully restore the support, loan, 

or assistance that is otherwise required under subtitles B or C 

of this title or under the amendments made by subtitles B or 

C, except with respect to the assistance provided under sections 1207(c) and 1208. 

(2) REPAYMENT.—In carrying out this subsection, the Secretary shall ensure that when a producer repays a loan at a 

rate equal to the loan rate plus interest in accordance with the 

repayment provisions of subtitles B or C that the repayment 

amount shall include the portion of the loan amount provided 

under paragraph (1), except that this paragraph shall not affect or reduce marketing loan gains, loan deficiency payments, 

or forfeiture benefits provided for under subtitles B or C and 

as supplemented in accordance with paragraph (1). 

SEC. 1615. RESEARCH OPTION. 

(a) IN GENERAL.—Notwithstanding section 4(m) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714b(m)), funds 

of the Commodity Credit Corporation disbursed pursuant to the 

memorandum of understanding between the Government of the 

United States of America and the Government of the Federative 

Republic of Brazil regarding a fund for technical assistance and capacity building with respect to dispute WT/DS 267 in the World 

Trade Organization may, upon resolution of the dispute, be used 

for research consistent with the conditions imposed by subsection 

(b). 

(b) CONDITIONS.—Research authorized by subsection (a) must 

be conducted in collaboration with research agencies of the United 

States Department of Agriculture or with a college, university, or 

research foundation located in the United States. Such research 

and collaboration shall be subject to the agreement of the parties 

to the resolved dispute described in subsection (a). 

TITLE II—CONSERVATION 

Subtitle A—Conservation Reserve Program 

SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS OF CONSERVATION RESERVE PROGRAM. 

(a) EXTENSION.—Section 1231(a) of the Food Security Act of 

1985 (16 U.S.C. 3831(a)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) ELIGIBLE LAND.—Section 1231(b) of the Food Security Act 

of 1985 (16 U.S.C. 3831(b)) is amended— 

(1) in paragraph (1)(B), by striking ‘‘the date of enactment 

of the Food, Conservation, and Energy Act of 2008’’ and inserting ‘‘the date of enactment of the Agricultural Act of 2014’’; 

(2) by striking paragraph (2) and redesignating paragraph 

(3) as paragraph (2); 

(3) by inserting before paragraph (4) the following new 

paragraph: 

‘‘(3) grasslands that— 

‘‘(A) contain forbs or shrubland (including improved 

rangeland and pastureland) for which grazing is the predominant use; 

‘‘(B) are located in an area historically dominated by 

grasslands; and 


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‘‘(C) could provide habitat for animal and plant populations of significant ecological value if the land is retained 

in its current use or restored to a natural condition;’’; 

(4) in paragraph (4)(C), by striking ‘‘filterstrips devoted to 

trees or shrubs’’ and inserting ‘‘filterstrips or riparian buffers 

devoted to trees, shrubs, or grasses’’; and 

(5) by striking paragraph (5) and inserting the following 

new paragraph: 

‘‘(5) the portion of land in a field not enrolled in the conservation reserve in a case in which— 

‘‘(A) more than 50 percent of the land in the field is 

enrolled as a buffer or filterstrip, or more than 75 percent 

of the land in the field is enrolled as a conservation practice other than as a buffer or filterstrip; and 

‘‘(B) the remainder of the field is— 

‘‘(i) infeasible to farm; and 

‘‘(ii) enrolled at regular rental rates.’’. 

(c) PLANTING STATUS OF CERTAIN LAND.—Section 1231(c) of the 

Food Security Act of 1985 (16 U.S.C. 3831(c)) is amended by striking ‘‘if’’ and all that follows through the period at the end and inserting ‘‘if, during the crop year, the land was devoted to a conserving use.’’. 

(d) ENROLLMENT.—Subsection (d) of section 1231 of the Food 

Security Act of 1985 (16 U.S.C. 3831) is amended to read as follows: 

‘‘(d) ENROLLMENT.— ‘‘(1) MAXIMUM ACREAGE ENROLLED.—The Secretary may 

maintain in the conservation reserve at any one time during— 

‘‘(A) fiscal year 2014, no more than 27,500,000 acres; 

‘‘(B) fiscal year 2015, no more than 26,000,000 acres; 

‘‘(C) fiscal year 2016, no more than 25,000,000 acres; 

‘‘(D) fiscal year 2017, no more than 24,000,000 acres; 

and 

‘‘(E) fiscal year 2018, no more than 24,000,000 acres. 

‘‘(2) GRASSLANDS.— ‘‘(A) LIMITATION.—For purposes of applying the limitations in paragraph (1), no more than 2,000,000 acres of the 

land described in subsection (b)(3) may be enrolled in the 

program at any one time during the 2014 through 2018 fiscal years. 

‘‘(B) PRIORITY.—In enrolling acres under subparagraph 

(A), the Secretary may give priority to land with expiring 

conservation reserve program contracts. 

‘‘(C) METHOD OF ENROLLMENT.—In enrolling acres 

under subparagraph (A), the Secretary shall make the program available to owners or operators of eligible land on 

a continuous enrollment basis with one or more ranking 

periods.’’. 

(e) DURATION OF CONTRACT.—Section 1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended by striking paragraphs (2) and (3) and inserting the following new paragraph: 

‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In the case of land 

devoted to hardwood trees, shelterbelts, windbreaks, or wildlife 

corridors under a contract entered into under this subchapter, 

the owner or operator of the land may, within the limitations 


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prescribed under paragraph (1), specify the duration of the contract.’’. 

(f) CONSERVATION PRIORITY AREAS.—Section 1231(f) of the 

Food Security Act of 1985 (16 U.S.C. 3831(f)) is amended— 

(1) in paragraph (1), by striking ‘‘watershed areas of the 

Chesapeake Bay Region, the Great Lakes Region, the Long Island Sound Region, and other’’; 

(2) in paragraph (2), by striking ‘‘WATERSHEDS.—Watersheds’’ and inserting ‘‘AREAS.—Areas’’; and 

(3) in paragraph (3), by striking ‘‘a watershed’s designation—’’ and all that follows through the period at the end and 

inserting ‘‘an area’s designation if the Secretary finds that the 

area no longer contains actual and significant adverse water 

quality or habitat impacts related to agricultural production 

activities.’’. 

SEC. 2002. FARMABLE WETLAND PROGRAM. 

(a) EXTENSION.—Section 1231B(a)(1) of the Food Security Act 

of 1985 (16 U.S.C. 3831b(a)(1)) is amended— 

(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 

(2) by striking ‘‘a program’’ and inserting ‘‘a farmable wetland program’’. 

(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) is amended by striking 

‘‘flow from a row crop agriculture drainage system’’ and inserting 

‘‘surface and subsurface flow from row crop agricultural production’’. 

(c) ACREAGE LIMITATION.—Section 1231B(c)(1)(B) of the Food 

Security Act of 1985 (16 U.S.C. 3831b(c)(1)(B)) is amended by striking ‘‘1,000,000’’ and inserting ‘‘750,000’’. 

(d) CLERICAL AMENDMENTS.—Section 1231B of the Food Security Act of 1985 (16 U.S.C. 3831b) is amended— 

(1) by striking the heading and inserting the following: 

‘‘FARMABLE WETLAND PROGRAM’’; and 

(2) in subsection (f)(2), by striking ‘‘section 1234(c)(2)(B)’’ 

and inserting ‘‘section 1234(d)(2)(A)(ii)’’. 

SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 

(a) LIMITATION ON HARVESTING, GRAZING, OR COMMERCIAL USE

OF FORAGE.—Section 1232(a)(8) of the Food Security Act of 1985 

(16 U.S.C. 3832(a)(8)) is amended by striking ‘‘except that’’ and all 

that follows through the semicolon at the end of the paragraph and 

inserting ‘‘except as provided in subsection (b) or (c) of section 

1233;’’. 

(b) CONSERVATION PLAN REQUIREMENTS.—Subsection (b) of section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 

amended to read as follows: 

‘‘(b) CONSERVATION PLANS.—The plan referred to in subsection 

(a)(1) shall set forth— 

‘‘(1) the conservation measures and practices to be carried 

out by the owner or operator during the term of the contract; 

and 

‘‘(2) the commercial use, if any, to be permitted on the land 

during the term.’’. 


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(c) RENTAL PAYMENT REDUCTION.—Section 1232 of the Food 

Security Act of 1985 (16 U.S.C. 3832) is amended by striking subsection (d). 

SEC. 2004. DUTIES OF THE SECRETARY. 

Section 1233 of the Food Security Act of 1985 (16 U.S.C. 3833) 

is amended to read as follows: 

‘‘SEC. 1233. DUTIES OF THE SECRETARY. 

‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In return for a contract entered into by an owner or operator under the conservation 

reserve program, the Secretary shall— 

‘‘(1) share the cost of carrying out the conservation measures and practices set forth in the contract for which the Secretary determines that cost sharing is appropriate and in the 

public interest; and 

‘‘(2) for a period of years not in excess of the term of the 

contract, pay an annual rental payment in an amount necessary to compensate for— 

‘‘(A) the conversion of highly erodible cropland or other 

eligible lands normally devoted to the production of an agricultural commodity on a farm or ranch to a less intensive 

use; 

‘‘(B) the retirement of any base history that the owner 

or operator agrees to retire permanently; and 

‘‘(C) the development and management of grasslands 

for multiple natural resource conservation benefits, including to soil, water, air, and wildlife. 

‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Secretary shall 

permit certain activities or commercial uses of land that is subject 

to a contract under the conservation reserve program if those activities or uses are consistent with a plan approved by the Secretary and include— 

‘‘(1) harvesting, grazing, or other commercial use of the forage in response to a drought, flooding, or other emergency, 

without any reduction in the rental rate; 

‘‘(2) consistent with the conservation of soil, water quality, 

and wildlife habitat (including habitat during primary nesting 

seasons for birds in the area), and in exchange for a reduction 

of not less than 25 percent in the annual rental rate for the 

acres covered by the authorized activity, managed harvesting 

and other commercial use (including the managed harvesting 

of biomass), except that in permitting those activities, the Secretary, in coordination with the State technical committee— 

‘‘(A) shall develop appropriate vegetation management 

requirements; and 

‘‘(B) shall identify periods during which the activities 

may be conducted, such that the frequency is at least 

every 5 but not more than once every 3 years; 

‘‘(3) subject to appropriate restrictions during the nesting 

season for birds in the local area that are economically significant, in significant decline, or conserved in accordance with 

Federal or State law, as determined by the Secretary in consultation with the State technical committee, and in exchange 

for a reduction of not less than 25 percent in the annual rental 

rate for the acres covered by the authorized activity— 


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‘‘(A) prescribed grazing for the control of invasive species, which may be conducted annually; 

‘‘(B) routine grazing, except that in permitting such 

routine grazing, the Secretary, in coordination with the 

State technical committee— 

‘‘(i) shall develop appropriate vegetation management requirements and stocking rates for the land 

that are suitable for continued routine grazing; and 

‘‘(ii) shall identify the periods during which routine grazing may be conducted, such that the frequency is not more than once every 2 years, taking 

into consideration regional differences such as— 

‘‘(I) climate, soil type, and natural resources; 

‘‘(II) the number of years that should be required between routine grazing activities; and 

‘‘(III) how often during a year in which routine grazing is permitted that routine grazing 

should be allowed to occur; and 

‘‘(C) the installation of wind turbines and associated 

access, except that in permitting the installation of wind 

turbines, the Secretary shall determine the number and location of wind turbines that may be installed, taking into 

account— 

‘‘(i) the location, size, and other physical characteristics of the land; 

‘‘(ii) the extent to which the land contains threatened or endangered wildlife and wildlife habitat; and 

‘‘(iii) the purposes of the conservation reserve program under this subchapter; 

‘‘(4) the intermittent and seasonal use of vegetative buffer 

practices incidental to agricultural production on lands adjacent to the buffer such that the permitted use does not destroy 

the permanent vegetative cover; and 

‘‘(5) grazing by livestock of a beginning farmer or rancher 

without any reduction in the rental rate, if the grazing is— 

‘‘(A) consistent with the conservation of soil, water 

quality, and wildlife habitat; 

‘‘(B) subject to appropriate restrictions during the 

nesting season for birds in the local area that are economically significant, in significant decline, or conserved in accordance with Federal or State law, as determined by the 

Secretary in consultation with the State technical committee; and 

‘‘(C) described in subparagraph (A) or (B) of paragraph 

(3). 

‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.—For eligible land 

described in section 1231(b)(3), the Secretary shall permit the following activities: 

‘‘(1) Common grazing practices, including maintenance and 

necessary cultural practices, on the land in a manner that is 

consistent with maintaining the viability of grassland, forb, 

and shrub species appropriate to that locality. 

‘‘(2) Haying, mowing, or harvesting for seed production, 

subject to appropriate restrictions during the nesting season 

for birds in the local area that are economically significant, in 


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significant decline, or conserved in accordance with Federal or 

State law, as determined by the Secretary in consultation with 

the State technical committee. 

‘‘(3) Fire presuppression, fire-related rehabilitation, and 

construction of fire breaks. 

‘‘(4) Grazing-related activities, such as fencing and livestock watering. 

‘‘(d) RESOURCE CONSERVING USE.— 

‘‘(1) IN GENERAL.—Beginning on the date that is 1 year before the date of termination of a contract under the program, 

the Secretary shall allow an owner or operator to make conservation and land improvements for economic use that facilitate maintaining protection of enrolled land after expiration of 

the contract. 

‘‘(2) CONSERVATION PLAN.—The Secretary shall require an 

owner or operator carrying out the activities described in paragraph (1) to develop and implement a conservation plan. 

‘‘(3) RE-ENROLLMENT PROHIBITED.—Land improved under 

paragraph (1) may not be re-enrolled in the conservation reserve program for 5 years after the date of termination of the 

contract. 

‘‘(4) PAYMENT REDUCTION.—In the case of an activity carried out under paragraph (1), the Secretary shall reduce the 

payment otherwise payable under the contract by an amount 

commensurate with the economic value of the activity.’’. 

SEC. 2005. PAYMENTS. 

(a) TREES, WINDBREAKS, SHELTERBELTS, AND WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the Food Security Act of 1985 (16 

U.S.C. 3834(b)(3)(A)) is amended to read as follows: 

‘‘(A) APPLICABILITY.—This paragraph applies to land 

devoted to the production of hardwood trees, windbreaks, 

shelterbelts, or wildlife corridors under a contract entered 

into under this subchapter after November 28, 1990.’’. 

(b) INCENTIVES FOR THINNING.—Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834) is amended— 

(1) in subsection (b)— 

(A) in the heading, by striking ‘‘FEDERAL PERCENTAGE

OF’’; and 

(B) in paragraph (3)(B)— 

(i) in clause (i), by striking ‘‘or thinning’’; and 

(ii) by amending clause (ii) to read as follows: 

‘‘(ii) DURATION.—The Secretary shall make payments as described in clause (i) for a period of not less 

than 2 years, but not more than 4 years, beginning on 

the date of the planting of the trees or shrubs.’’; 

(2) by redesignating subsections (c) through (g) as subsections (d) through (h), respectively; and 

(3) by inserting after subsection (b) the following: 

‘‘(c) INCENTIVE PAYMENTS.— 

‘‘(1) IN GENERAL.—The Secretary may make incentive payments to an owner or operator of eligible land in an amount 

sufficient to encourage proper thinning and other practices to 

improve the condition of resources, promote forest management, or enhance wildlife habitat on the land. 


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‘‘(2) LIMITATION.—A payment described in paragraph (1) 

may not exceed 150 percent of the total cost of thinning and 

other practices conducted by the owner or operator.’’. 

(c) ANNUAL RENTAL PAYMENTS.—Section 1234(d) of the Food 

Security Act of 1985 (as redesignated by subsection (b)(2)) is 

amended— 

(1) in paragraph (1), by inserting ‘‘or other eligible lands’’ 

after ‘‘highly erodible cropland’’ both places it appears; 

(2) by striking paragraph (2) and inserting the following 

new paragraph: 

‘‘(2) METHODS OF DETERMINATION.— 

‘‘(A) IN GENERAL.—The amounts payable to owners or 

operators in the form of rental payments under contracts 

entered into under this subchapter may be determined 

through— 

‘‘(i) the submission of bids for such contracts by 

owners and operators in such manner as the Secretary 

may prescribe; or 

‘‘(ii) such other means as the Secretary determines 

are appropriate. 

‘‘(B) GRASSLANDS.—In the case of eligible land described in section 1231(b)(3), the Secretary shall make annual payments in an amount that is not more than 75 percent of the grazing value of the land covered by the contract.’’; and 

(3) in paragraph (5)— 

(A) in subparagraph (A), by striking ‘‘conduct an annual survey’’ and inserting ‘‘, not less frequently than once 

every other year, conduct a survey’’; 

(B) in subparagraph (B), by striking ‘‘annual’’; and 

(C) by adding at the end the following: 

‘‘(C) USE.—The Secretary may use the estimates derived from the survey conducted under subparagraph (A) 

relating to dryland cash rental rates as a factor in determining rental rates under this section in a manner determined appropriate by the Secretary.’’. 

(d) PAYMENT SCHEDULE.—Subsection (e) of section 1234 of the 

Food Security Act of 1985 (as redesignated by subsection (b)(2)) is 

amended to read as follows: 

‘‘(e) PAYMENT SCHEDULE.— 

‘‘(1) IN GENERAL.—Except as otherwise provided in this 

section, payments under this subchapter shall be made in cash 

in such amount and on such time schedule as is agreed on and 

specified in the contract. 

‘‘(2) ADVANCE PAYMENT.—Payments under this subchapter 

may be made in advance of determination of performance.’’. 

(e) PAYMENT LIMITATION.—Section 1234(g) of the Food Security 

Act of 1985 (as redesignated by subsection (b)(2)) is amended— 

(1) in paragraph (1), by striking ‘‘, including rental payments made in the form of in-kind commodities,’’; 

(2) by striking paragraph (3); and 

(3) by redesignating paragraph (4) as paragraph (2). 


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SEC. 2006. CONTRACT REQUIREMENTS. 

(a) EARLY TERMINATION BY OWNER OR OPERATOR.—Section 

1235(e) of the Food Security Act of 1985 (16 U.S.C. 3835(e)) is 

amended— 

(1) in paragraph (1)(A)— 

(A) by striking ‘‘The Secretary’’ and inserting ‘‘During 

fiscal year 2015, the Secretary’’; and 

(B) by striking ‘‘before January 1, 1995,’’; 

(2) in paragraph (2), by striking subparagraph (C) and inserting the following: 

‘‘(C) Land devoted to hardwood trees. 

‘‘(D) Wildlife habitat, duck nesting habitat, pollinator 

habitat, upland bird habitat buffer, wildlife food plots, 

State acres for wildlife enhancement, shallow water areas 

for wildlife, and rare and declining habitat. 

‘‘(E) Farmable wetland and restored wetland. 

‘‘(F) Land that contains diversions, erosion control 

structures, flood control structures, contour grass strips, 

living snow fences, salinity reducing vegetation, cross wind 

trap strips, and sediment retention structures. 

‘‘(G) Land located within a federally designated wellhead protection area. 

‘‘(H) Land that is covered by an easement under the 

conservation reserve program. 

‘‘(I) Land located within an average width, according 

to the applicable Natural Resources Conservation Service 

field office technical guide, of a perennial stream or permanent water body. 

‘‘(J) Land enrolled under the conservation reserve enhancement program.’’; and 

(3) in paragraph (3), by striking ‘‘60 days after the date on 

which the owner or operator submits the notice required under 

paragraph (1)(C)’’ and inserting ‘‘upon approval by the Secretary’’. 

(b) TRANSITION OPTION FOR CERTAIN FARMERS OR RANCHERS.— 

Section 1235(f) of the Food Security Act of 1985 (16 U.S.C. 3835(f)) 

is amended— 

(1) in paragraph (1)— 

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

striking ‘‘DUTIES’’ and all that follows through ‘‘a beginning farmer or rancher or’’ and inserting ‘‘TRANSITION TO

COVERED FARMER OR RANCHER.—In the case of a contract 

modification approved in order to facilitate the transfer of 

land subject to a contract from a retired farmer or rancher 

to a beginning farmer or rancher, a veteran farmer or 

rancher (as defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e))), or a’’; 

(B) in subparagraph (A)(i), by inserting ‘‘, including 

preparing to plant an agricultural crop’’ after ‘‘improvements’’; 

(C) in subparagraph (D), by striking ‘‘the farmer or 

rancher’’ and inserting ‘‘the covered farmer or rancher’’; 

and 


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(D) in subparagraph (E), by striking ‘‘section 

1001A(b)(3)(B)’’ and inserting ‘‘section 1001’’; and 

(2) in paragraph (2), by striking ‘‘requirement of section 

1231(h)(4)(B)’’ and inserting ‘‘option pursuant to section 

1234(d)(2)(A)(ii)’’. 

(c) FINAL YEAR CONTRACT.—Section 1235 of the Food Security 

Act of 1985 (16 U.S.C. 3835) is amended by adding at the end the 

following new subsections: 

‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary shall not consider an owner or operator to be in violation of a term or condition 

of the conservation reserve contract if— 

‘‘(1) during the year prior to expiration of the contract, the 

land is enrolled in the conservation stewardship program; and 

‘‘(2) the activity required under the conservation stewardship program pursuant to such enrollment is consistent with 

this subchapter. 

‘‘(h) LAND ENROLLED IN AGRICULTURAL CONSERVATION EASEMENT PROGRAM.—The Secretary may terminate or modify a contract entered into under this subchapter if eligible land that is subject to such contract is transferred into the agricultural conservation easement program under subtitle H.’’. 

SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER 

CONSERVING USES. 

Section 1235A of the Food Security Act of 1985 (16 U.S.C. 

3835a) is repealed. 

SEC. 2008. EFFECT ON EXISTING CONTRACTS. 

(a) IN GENERAL.—Except as provided in paragraph (2), the 

amendments made by this subtitle shall not affect the validity or 

terms of any contract entered into by the Secretary of Agriculture 

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.) before the date 

of enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the contract. 

(b) UPDATING OF EXISTING CONTRACTS.—The Secretary shall 

permit an owner or operator of land subject to a contract entered 

into 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.) before the 

date of enactment of the Agricultural Act of 2014, to update the 

contract to reflect the activities and uses of land under contract 

permitted under the terms and conditions of section 1233(b) of that 

Act (as amended by section 2004), as determined appropriate by 

the Secretary. 

Subtitle B—Conservation Stewardship Program 

SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 

(a) REVISION OF CURRENT PROGRAM.—Subchapter B of chapter 

2 of subtitle D of title XII of the Food Security Act of 1985 (16 

U.S.C. 3838d et seq.) is amended to read as follows: 

‘‘Subchapter B—Conservation Stewardship Program 

‘‘SEC. 1238D. DEFINITIONS. 

‘‘In this subchapter: 


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‘‘(1) AGRICULTURAL OPERATION.—The term ‘agricultural operation’ means all eligible land, whether or not contiguous, 

that is— 

‘‘(A) under the effective control of a producer at the 

time the producer enters into a contract under the program; and 

‘‘(B) operated with equipment, labor, management, 

and production or cultivation practices that are substantially separate from other agricultural operations, as determined by the Secretary. 

‘‘(2) CONSERVATION ACTIVITIES.— 

‘‘(A) IN GENERAL.—The term ‘conservation activities’ 

means conservation systems, practices, or management 

measures. 

‘‘(B) INCLUSIONS.—The term ‘conservation activities’ 

includes— 

‘‘(i) structural measures, vegetative measures, and 

land management measures, including agriculture 

drainage management systems, as determined by the 

Secretary; and 

‘‘(ii) planning needed to address a priority resource concern. 

‘‘(3) CONSERVATION STEWARDSHIP PLAN.—The term ‘conservation stewardship plan’ means a plan that— 

‘‘(A) identifies and inventories priority resource concerns; 

‘‘(B) establishes benchmark data and conservation objectives; 

‘‘(C) describes conservation activities to be implemented, managed, or improved; and 

‘‘(D) includes a schedule and evaluation plan for the 

planning, installation, and management of the new and existing conservation activities. 

‘‘(4) ELIGIBLE LAND.— 

‘‘(A) IN GENERAL.—The term ‘eligible land’ means— 

‘‘(i) private or tribal land on which agricultural 

commodities, livestock, or forest-related products are 

produced; and 

‘‘(ii) lands associated with the land described in 

clause (i) on which priority resource concerns could be 

addressed through a contract under the program. 

‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes— 

‘‘(i) cropland; 

‘‘(ii) grassland; 

‘‘(iii) rangeland; 

‘‘(iv) pasture land; 

‘‘(v) nonindustrial private forest land; and 

‘‘(vi) other land in agricultural areas (including 

cropped woodland, marshes, and agricultural land 

used or capable of being used for the production of 

livestock), as determined by the Secretary. 

‘‘(5) PRIORITY RESOURCE CONCERN.—The term ‘priority resource concern’ means a natural resource concern or problem, 

as determined by the Secretary, that— 


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‘‘(A) is identified at the national, State, or local level 

as a priority for a particular area of a State; 

‘‘(B) represents a significant concern in a State or region; and 

‘‘(C) is likely to be addressed successfully through the 

implementation of conservation activities under this program. 

‘‘(6) PROGRAM.—The term ‘program’ means the conservation stewardship program established by this subchapter. 

‘‘(7) STEWARDSHIP THRESHOLD.—The term ‘stewardship 

threshold’ means the level of management required, as determined by the Secretary, to conserve and improve the quality 

and condition of a natural resource. 

‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 

‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of fiscal 

years 2014 through 2018, the Secretary shall carry out a conservation stewardship program to encourage producers to address priority resource concerns and improve and conserve the quality and 

condition of natural resources in a comprehensive manner— 

‘‘(1) by undertaking additional conservation activities; and 

‘‘(2) by improving, maintaining, and managing existing 

conservation activities. 

‘‘(b) EXCLUSIONS.— 

‘‘(1) LAND ENROLLED IN OTHER CONSERVATION PROGRAMS.— 

Subject to paragraph (2), the following land (even if covered by 

the definition of eligible land) is not eligible for enrollment in 

the program: 

‘‘(A) Land enrolled in the conservation reserve program, unless— 

‘‘(i) the conservation reserve contract will expire at 

the end of the fiscal year in which the land is to be 

enrolled in the program; and 

‘‘(ii) conservation reserve program payments for 

land enrolled in the program cease before the first program payment is made to the applicant under this 

subchapter. 

‘‘(B) Land enrolled in a wetland reserve easement 

through the agricultural conservation easement program. 

‘‘(C) Land enrolled in the conservation security program. 

‘‘(2) CONVERSION TO CROPLAND.—Eligible land used for 

crop production after the date of enactment of the Agricultural 

Act of 2014, that had not been planted, considered to be planted, or devoted to crop production for at least 4 of the 6 years 

preceding that date shall not be the basis for any payment 

under the program, unless the land does not meet such requirement because— 

‘‘(A) the land had previously been enrolled in the conservation reserve program; 

‘‘(B) the land has been maintained using long-term 

crop rotation practices, as determined by the Secretary; or 

‘‘(C) the land is incidental land needed for efficient operation of the farm or ranch, as determined by the Secretary. 


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‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 

‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligible to participate in the conservation stewardship program, a producer shall 

submit to the Secretary a contract offer for the agricultural operation that— 

‘‘(1) demonstrates to the satisfaction of the Secretary that 

the producer, at the time of the contract offer, meets or exceeds 

the stewardship threshold for at least 2 priority resource concerns; and 

‘‘(2) would, at a minimum, meet or exceed the stewardship 

threshold for at least 1 additional priority resource concern by 

the end of the stewardship contract by— 

‘‘(A) installing and adopting additional conservation 

activities; and 

‘‘(B) improving, maintaining, and managing existing 

conservation activities across the entire agricultural operation in a manner that increases or extends the conservation benefits in place at the time the contract offer is accepted by the Secretary. 

‘‘(b) EVALUATION OF CONTRACT OFFERS.— 

‘‘(1) RANKING OF APPLICATIONS.—In evaluating contract offers submitted under subsection (a), the Secretary shall rank 

applications based on— 

‘‘(A) the level of conservation treatment on all applicable priority resource concerns at the time of application; 

‘‘(B) the degree to which the proposed conservation activities effectively increase conservation performance; 

‘‘(C) the number of applicable priority resource concerns proposed to be treated to meet or exceed the stewardship threshold by the end of the contract; 

‘‘(D) the extent to which other priority resource concerns will be addressed to meet or exceed the stewardship 

threshold by the end of the contract period; 

‘‘(E) the extent to which the actual and anticipated 

conservation benefits from the contract are provided at the 

least cost relative to other similarly beneficial contract offers; and 

‘‘(F) the extent to which priority resource concerns will 

be addressed when transitioning from the conservation reserve program to agricultural production. 

‘‘(2) PROHIBITION.—The Secretary may not assign a higher 

priority to any application because the applicant is willing to 

accept a lower payment than the applicant would otherwise be 

eligible to receive. 

‘‘(3) ADDITIONAL CRITERIA.—The Secretary may develop 

and use such additional criteria that the Secretary determines 

are necessary to ensure that national, State, and local priority 

resource concerns are effectively addressed. 

‘‘(c) ENTERING INTO CONTRACTS.—After a determination that a 

producer is eligible for the program under subsection (a), and a determination that the contract offer ranks sufficiently high under 

the evaluation criteria under subsection (b), the Secretary shall 

enter into a conservation stewardship contract with the producer to 

enroll the eligible land to be covered by the contract. 

‘‘(d) CONTRACT PROVISIONS.— 


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‘‘(1) TERM.—A conservation stewardship contract shall be 

for a term of 5 years. 

‘‘(2) REQUIRED PROVISIONS.—The conservation stewardship 

contract of a producer shall— 

‘‘(A) state the amount of the payment the Secretary 

agrees to make to the producer for each year of the conservation stewardship contract under section 1238G(d); 

‘‘(B) require the producer— 

‘‘(i) to implement a conservation stewardship plan 

that describes the program purposes to be achieved 

through 1 or more conservation activities; 

‘‘(ii) to maintain and supply information as required by the Secretary to determine compliance with 

the conservation stewardship plan and any other requirements of the program; and 

‘‘(iii) not to conduct any activities on the agricultural operation that would tend to defeat the purposes 

of the program; 

‘‘(C) permit all economic uses of the eligible land 

that— 

‘‘(i) maintain the agricultural nature of the land; 

and 

‘‘(ii) are consistent with the conservation purposes 

of the conservation stewardship contract; 

‘‘(D) include a provision to ensure that a producer 

shall not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or related condition, as determined by the Secretary; 

‘‘(E) include provisions requiring that upon the violation of a term or condition of the contract at any time the 

producer has control of the land— 

‘‘(i) if the Secretary determines that the violation 

warrants termination of the contract— 

‘‘(I) the producer shall forfeit all rights to receive payments under the contract; and 

‘‘(II) the producer shall refund all or a portion 

of the payments received by the producer under 

the contract, including any interest on the payments, as determined by the Secretary; or 

‘‘(ii) if the Secretary determines that the violation 

does not warrant termination of the contract, the producer shall refund or accept adjustments to the payments provided to the producer, as the Secretary determines to be appropriate; 

‘‘(F) include provisions in accordance with paragraphs 

(3) and (4); and 

‘‘(G) include any additional provisions the Secretary 

determines are necessary to carry out the program. 

‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT TO A CON- TRACT.— ‘‘(A) IN GENERAL.—At the time of application, a producer shall have control of the eligible land to be enrolled 

in the program. Except as provided in subparagraph (B), 

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ered by a contract under the program shall result in the 

termination of the contract with regard to that land. 

‘‘(B) TRANSFER OF DUTIES AND RIGHTS.—Subparagraph 

(A) shall not apply if— 

‘‘(i) within a reasonable period of time (as determined by the Secretary) after the date of the change 

in the interest in eligible land covered by a contract 

under the program, the transferee of the land provides 

written notice to the Secretary that all duties and 

rights under the contract have been transferred to, 

and assumed by, the transferee for the portion of the 

land transferred; 

‘‘(ii) the transferee meets the eligibility requirements of the program; and 

‘‘(iii) the Secretary approves the transfer of all duties and rights under the contract. 

‘‘(4) MODIFICATION AND TERMINATION OF CONTRACTS.— ‘‘(A) VOLUNTARY MODIFICATION OR TERMINATION.—The 

Secretary may modify or terminate a contract with a producer if— 

‘‘(i) the producer agrees to the modification or termination; and 

‘‘(ii) the Secretary determines that the modification or termination is in the public interest. 

‘‘(B) INVOLUNTARY TERMINATION.—The Secretary may 

terminate a contract if the Secretary determines that the 

producer violated the contract. 

‘‘(5) REPAYMENT.—If a contract is terminated, the Secretary may, consistent with the purposes of the program— 

‘‘(A) allow the producer to retain payments already received under the contract; or 

‘‘(B) require repayment, in whole or in part, of payments received and assess liquidated damages. 

‘‘(e) CONTRACT RENEWAL.—At the end of the initial 5-year contract period, the Secretary may allow the producer to renew the 

contract for 1 additional 5-year period if the producer— 

‘‘(1) demonstrates compliance with the terms of the initial 

contract; 

‘‘(2) agrees to adopt and continue to integrate conservation 

activities across the entire agricultural operation, as determined by the Secretary; and 

‘‘(3) agrees, by the end of the contract period— 

‘‘(A) to meet the stewardship threshold of at least 2 

additional priority resource concerns on the agricultural 

operation; or 

‘‘(B) to exceed the stewardship threshold of 2 existing 

priority resource concerns that are specified by the Secretary in the initial contract. 

‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 

‘‘(a) IN GENERAL.—To achieve the conservation goals of a contract under the conservation stewardship program, the Secretary 

shall— 

‘‘(1) make the program available to eligible producers on a 

continuous enrollment basis with 1 or more ranking periods, 1 

of which shall occur in the first quarter of each fiscal year; 


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‘‘(2) identify not less than 5 priority resource concerns in 

a particular watershed or other appropriate region or area 

within a State; and 

‘‘(3) establish a science-based stewardship threshold for 

each priority resource concern identified under paragraph (2). 

‘‘(b) ALLOCATION TO STATES.—The Secretary shall allocate 

acres to States for enrollment, based— 

‘‘(1) primarily on each State’s proportion of eligible land to 

the total acreage of eligible land in all States; and 

‘‘(2) also on consideration of— 

‘‘(A) the extent and magnitude of the conservation 

needs associated with agricultural production in each 

State; 

‘‘(B) the degree to which implementation of the program in the State is, or will be, effective in helping producers address those needs; and 

‘‘(C) other considerations to achieve equitable geographic distribution of funds, as determined by the Secretary. 

‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During the period beginning on the date of enactment of the Agricultural Act of 2014, 

and ending on September 30, 2022, the Secretary shall, to the maximum extent practicable— 

‘‘(1) enroll in the program an additional 10,000,000 acres 

for each fiscal year; and 

‘‘(2) manage the program to achieve a national average 

rate of $18 per acre, which shall include the costs of all financial assistance, technical assistance, and any other expenses 

associated with enrollment or participation in the program. 

‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide annual payments under the program to compensate the 

producer for— 

‘‘(A) installing and adopting additional conservation 

activities; and 

‘‘(B) improving, maintaining, and managing conservation activities in place at the agricultural operation of the 

producer at the time the contract offer is accepted by the 

Secretary. 

‘‘(2) PAYMENT AMOUNT.—The amount of the annual payment shall be determined by the Secretary and based, to the 

maximum extent practicable, on the following factors: 

‘‘(A) Costs incurred by the producer associated with 

planning, design, materials, installation, labor, management, maintenance, or training. 

‘‘(B) Income forgone by the producer. 

‘‘(C) Expected conservation benefits. 

‘‘(D) The extent to which priority resource concerns 

will be addressed through the installation and adoption of 

conservation activities on the agricultural operation. 

‘‘(E) The level of stewardship in place at the time of 

application and maintained over the term of the contract. 

‘‘(F) The degree to which the conservation activities 

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for all applicable priority resource concerns over the term 

of the contract. 

‘‘(G) Such other factors as are determined appropriate 

by the Secretary. 

‘‘(3) EXCLUSIONS.—A payment to a producer under this 

subsection shall not be provided for— 

‘‘(A) the design, construction, or maintenance of animal waste storage or treatment facilities or associated 

waste transport or transfer devices for animal feeding operations; or 

‘‘(B) conservation activities for which there is no cost 

incurred or income forgone to the producer. 

‘‘(4) DELIVERY OF PAYMENTS.—In making payments under 

this subsection, the Secretary shall, to the extent practicable— 

‘‘(A) prorate conservation performance over the term of 

the contract so as to accommodate, to the extent practicable, producers earning equal annual payments in each 

fiscal year; and 

‘‘(B) make such payments as soon as practicable after 

October 1 of each fiscal year for activities carried out in 

the previous fiscal year. 

‘‘(e) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CONSERVING

CROP ROTATIONS.— 

‘‘(1) AVAILABILITY OF PAYMENTS.—The Secretary shall provide additional payments to producers that, in participating in 

the program, agree to adopt or improve resource-conserving 

crop rotations to achieve beneficial crop rotations as appropriate for the eligible land of the producers. 

‘‘(2) BENEFICIAL CROP ROTATIONS.—The Secretary shall determine whether a resource-conserving crop rotation is a beneficial crop rotation eligible for additional payments under paragraph (1) based on whether the resource-conserving crop rotation is designed to provide natural resource conservation and 

production benefits. 

‘‘(3) ELIGIBILITY.—To be eligible to receive a payment described in paragraph (1), a producer shall agree to adopt and 

maintain beneficial resource-conserving crop rotations for the 

term of the contract. 

‘‘(4) RESOURCE-CONSERVING CROP ROTATION.—In this subsection, the term ‘resource-conserving crop rotation’ means a 

crop rotation that— 

‘‘(A) includes at least 1 resource-conserving crop (as 

defined by the Secretary); 

‘‘(B) reduces erosion; 

‘‘(C) improves soil fertility and tilth; 

‘‘(D) interrupts pest cycles; and 

‘‘(E) in applicable areas, reduces depletion of soil moisture or otherwise reduces the need for irrigation. 

‘‘(f) PAYMENT LIMITATIONS.—A person or legal entity may not 

receive, directly or indirectly, payments under the program that, in 

the aggregate, exceed $200,000 under all contracts entered into 

during fiscal years 2014 through 2018, excluding funding arrangements with Indian tribes, regardless of the number of contracts entered into under the program by the person or legal entity. 


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‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.—The Secretary 

shall ensure that outreach and technical assistance are available, 

and program specifications are appropriate to enable specialty crop 

and organic producers to participate in the program. 

‘‘(h) COORDINATION WITH ORGANIC CERTIFICATION.—The Secretary shall establish a transparent means by which producers may 

initiate organic certification under the Organic Foods Production 

Act of 1990 (7 U.S.C. 6501 et seq.) while participating in a contract 

under the program. 

‘‘(i) REGULATIONS.—The Secretary shall promulgate regulations 

that— 

‘‘(1) prescribe such other rules as the Secretary determines 

to be necessary to ensure a fair and reasonable application of 

the limitations established under subsection (f); and 

‘‘(2) otherwise enable the Secretary to carry out the program.’’. 

(b) EFFECT ON EXISTING CONTRACTS.— 

(1) IN GENERAL.—The amendment made by this section 

shall not affect the validity or terms of any contract entered 

into by the Secretary of Agriculture under subchapter B of 

chapter 2 of subtitle D of title XII of the Food Security Act of 

1985 (16 U.S.C. 3838d et seq.) before the date of enactment of 

the Agricultural Act of 2014, or any payments required to be 

made in connection with the contract. 

(2) CONSERVATION STEWARDSHIP PROGRAM.—Funds made 

available under section 1241(a)(4) of the Food Security Act of 

1985 (16 U.S.C. 3841(a)(4)) (as amended by section 2601(a) of 

this title) may be used to administer and make payments to 

program participants that enrolled into contracts during any of 

fiscal years 2009 through 2013. 

Subtitle C—Environmental Quality Incentives Program 

SEC. 2201. PURPOSES. 

Section 1240 of the Food Security Act of 1985 (16 U.S.C. 

3839aa) is amended— 

(1) in paragraph (3)— 

(A) in subparagraph (A), by striking ‘‘and’’ at the end; 

(B) by redesignating subparagraph (B) as subparagraph (C) and, in such subparagraph, by inserting ‘‘and’’ 

after the semicolon; and 

(C) by inserting after subparagraph (A) the following 

new subparagraph: 

‘‘(B) developing and improving wildlife habitat; and’’; 

(2) in paragraph (4), by striking ‘‘; and’’ and inserting a period; and 

(3) by striking paragraph (5). 

SEC. 2202. DEFINITIONS. 

Section 1240A of the Food Security Act of 1985 (16 U.S.C. 

3839aa–1) is amended— 

(1) by striking paragraph (2) and redesignating paragraphs 

(3) through (6) as paragraphs (2) through (5), respectively; and 

(2) in paragraph (2) (as so redesignated), by inserting ‘‘established under the Organic Foods Production Act of 1990 (7 

U.S.C. 6501 et seq.)’’ after ‘‘national organic program’’. 


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SEC. 2203. ESTABLISHMENT AND ADMINISTRATION. 

Section 1240B of the Food Security Act of 1985 (16 U.S.C. 

3839aa–2) is amended— 

(1) in subsection (a), by striking ‘‘2014’’ and inserting 

‘‘2018’’; 

(2) in subsection (b), by striking paragraph (2) and inserting the following new paragraph: 

‘‘(2) TERM.—A contract under the program shall have a 

term that does not exceed 10 years.’’; 

(3) in subsection (d)— 

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

through (G) and inserting the following: 

‘‘(A) soil health; 

‘‘(B) water quality and quantity improvement; 

‘‘(C) nutrient management; 

‘‘(D) pest management; 

‘‘(E) air quality improvement; 

‘‘(F) wildlife habitat development, including pollinator 

habitat; or 

‘‘(G) invasive species management.’’; and 

(B) in paragraph (4)— 

(i) in subparagraph (A), in the matter preceding 

clause (i), by inserting ‘‘, a veteran farmer or rancher 

(as defined in section 2501(e) of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e))),’’ before ‘‘or a beginning farmer or rancher’’; 

and 

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

following new subparagraph: 

‘‘(B) ADVANCE PAYMENTS.— 

‘‘(i) IN GENERAL.—Not more than 50 percent of the 

amount determined under subparagraph (A) may be 

provided in advance for the purpose of purchasing materials or contracting. 

‘‘(ii) RETURN OF FUNDS.—If funds provided in advance are not expended during the 90-day period beginning on the date of receipt of the funds, the funds 

shall be returned within a reasonable timeframe, as 

determined by the Secretary.’’; 

(4) by striking subsection (f) and inserting the following 

new subsection: 

‘‘(f) ALLOCATION OF FUNDING.— ‘‘(1) LIVESTOCK.—For each of fiscal years 2014 through 

2018, at least 60 percent of the funds made available for payments under the program shall be targeted at practices relating to livestock production. 

‘‘(2) WILDLIFE HABITAT.—For each of fiscal years 2014 

through 2018, at least 5 percent of the funds made available 

for payments under the program shall be targeted at practices 

benefitting wildlife habitat under subsection (g).’’; and 

(5) by striking subsection (g) and inserting the following 

new subsection: 

‘‘(g) WILDLIFE HABITAT INCENTIVE PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall provide payments 

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servation practices that support the restoration, development, 

protection, and improvement of wildlife habitat on eligible 

land, including— 

‘‘(A) upland wildlife habitat; 

‘‘(B) wetland wildlife habitat; 

‘‘(C) habitat for threatened and endangered species; 

‘‘(D) fish habitat; 

‘‘(E) habitat on pivot corners and other irregular areas 

of a field; and 

‘‘(F) other types of wildlife habitat, as determined by 

the Secretary. 

‘‘(2) STATE TECHNICAL COMMITTEE.—In determining the 

practices eligible for payment under paragraph (1) and targeted for funding under subsection (f), the Secretary shall consult with the relevant State technical committee not less often 

than once each year.’’. 

SEC. 2204. EVALUATION OF APPLICATIONS. 

Section 1240C(b) of the Food Security Act of 1985 (16 U.S.C. 

3839aa–3(b)) is amended— 

(1) in paragraph (1), by striking ‘‘environmental’’ and inserting ‘‘conservation’’; and 

(2) in paragraph (3), by striking ‘‘purpose of the environmental quality incentives program specified in section 1240(1)’’ 

and inserting ‘‘purposes of the program’’. 

SEC. 2205. DUTIES OF PRODUCERS. 

Section 1240D(2) of the Food Security Act of 1985 (16 U.S.C. 

3839aa–4(2)) is amended by striking ‘‘farm, ranch, or forest’’ and 

inserting ‘‘enrolled’’. 

SEC. 2206. LIMITATION ON PAYMENTS. 

Section 1240G of the Food Security Act of 1985 (16 U.S.C. 

3839aa–7) is amended to read as follows: 

‘‘SEC. 1240G. LIMITATION ON PAYMENTS. 

‘‘A person or legal entity may not receive, directly or indirectly, 

cost-share or incentive payments under this chapter that, in aggregate, exceed $450,000 for all contracts entered into under this 

chapter by the person or legal entity during the period of fiscal 

years 2014 through 2018, regardless of the number of contracts entered into under this chapter by the person or legal entity.’’. 

SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAYMENTS. 

Section 1240H of the Food Security Act of 1985 (16 U.S.C. 

3839aa–8) is amended— 

(1) in subsection (a)(2)— 

(A) in subparagraph (C), by striking ‘‘; and’’ and inserting a semicolon; 

(B) in subparagraph (D), by striking the period and inserting a semicolon; and 

(C) by adding at the end the following new subparagraphs: 

‘‘(E) facilitate on-farm conservation research and demonstration activities; and 

‘‘(F) facilitate pilot testing of new technologies or innovative conservation practices.’’; 

(2) in subsection (b)(2)— 


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(A) by striking ‘‘$37,500,000’’ and inserting 

‘‘$25,000,000’’; and 

(B) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 

(3) by adding at the end the following new subsection: 

‘‘(c) REPORTING.—Not later than December 31, 2014, and every 

two years thereafter, the Secretary shall submit to the Committee 

on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report on 

the status of projects funded under this section, including— 

‘‘(1) funding awarded; 

‘‘(2) project results; and 

‘‘(3) incorporation of project findings, such as new technology and innovative approaches, into the conservation efforts 

implemented by the Secretary.’’. 

SEC. 2208. EFFECT ON EXISTING CONTRACTS. 

The amendments made by this subtitle shall not affect the validity or terms of any contract entered into by the Secretary of Agriculture under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) before the date of enactment of the Agricultural Act of 2014, or any payments required to 

be made in connection with the contract. 

Subtitle D—Agricultural Conservation Easement Program 

SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PROGRAM. 

(a) ESTABLISHMENT.—Title XII of the Food Security Act of 1985 

is amended by adding at the end the following new subtitle: 

‘‘Subtitle H—Agricultural Conservation Easement Program 

‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish an agricultural conservation easement program for the conservation of eligible land and natural resources through easements or other interests in land. 

‘‘(b) PURPOSES.—The purposes of the program are to— 

‘‘(1) combine the purposes and coordinate the functions of 

the wetlands reserve program established under section 1237, 

the grassland reserve program established under section 

1238N, and the farmland protection program established under 

section 1238I, as such sections were in effect on the day before 

the date of enactment of the Agricultural Act of 2014; 

‘‘(2) restore, protect, and enhance wetlands on eligible 

land; 

‘‘(3) protect the agricultural use and future viability, and 

related conservation values, of eligible land by limiting nonagricultural uses of that land; and 

‘‘(4) protect grazing uses and related conservation values 

by restoring and conserving eligible land. 

‘‘SEC. 1265A. DEFINITIONS. 

‘‘In this subtitle: 

‘‘(1) AGRICULTURAL LAND EASEMENT.—The term ‘agricultural land easement’ means an easement or other interest in 

eligible land that— 


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‘‘(A) is conveyed for the purpose of protecting natural 

resources and the agricultural nature of the land; and 

‘‘(B) permits the landowner the right to continue agricultural production and related uses subject to an agricultural land easement plan, as approved by the Secretary. 

‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible entity’ means— 

‘‘(A) an agency of State or local government or an Indian tribe (including a farmland protection board or land 

resource council established under State law); or 

‘‘(B) an organization that is— 

‘‘(i) organized for, and at all times since the formation of the organization has been operated principally 

for, 1 or more of the conservation purposes specified in 

clause (i), (ii), (iii), or (iv) of section 170(h)(4)(A) of the 

Internal Revenue Code of 1986; 

‘‘(ii) an organization described in section 501(c)(3) 

of that Code that is exempt from taxation under section 501(a) of that Code; or 

‘‘(iii) described in— 

‘‘(I) paragraph (1) or (2) of section 509(a) of 

that Code; or 

‘‘(II) section 509(a)(3) of that Code and is controlled by an organization described in section 

509(a)(2) of that Code. 

‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ means private or tribal land that is— 

‘‘(A) in the case of an agricultural land easement, agricultural land, including land on a farm or ranch— 

‘‘(i) that is subject to a pending offer for purchase 

of an agricultural land easement from an eligible entity; 

‘‘(ii)(I) that has prime, unique, or other productive 

soil; 

‘‘(II) that contains historical or archaeological resources; 

‘‘(III) the enrollment of which would protect grazing uses and related conservation values by restoring 

and conserving land; or 

‘‘(IV) the protection of which will further a State 

or local policy consistent with the purposes of the program; and 

‘‘(iii) that is— 

‘‘(I) cropland; 

‘‘(II) rangeland; 

‘‘(III) grassland or land that contains forbs, or 

shrubland for which grazing is the predominant 

use; 

‘‘(IV) located in an area that has been historically dominated by grassland, forbs, or shrubs and 

could provide habitat for animal or plant populations of significant ecological value; 

‘‘(V) pastureland; or 

‘‘(VI) nonindustrial private forest land that 

contributes to the economic viability of an offered 


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parcel or serves as a buffer to protect such land 

from development; 

‘‘(B) in the case of a wetland reserve easement, a wetland or related area, including— 

‘‘(i) farmed or converted wetlands, together with 

adjacent land that is functionally dependent on that 

land, if the Secretary determines it— 

‘‘(I) is likely to be successfully restored in a 

cost-effective manner; and 

‘‘(II) will maximize the wildlife benefits and 

wetland functions and values, as determined by 

the Secretary in consultation with the Secretary of 

the Interior at the local level; 

‘‘(ii) cropland or grassland that was used for agricultural production prior to flooding from the natural 

overflow of— 

‘‘(I) a closed basin lake and adjacent land that 

is functionally dependent upon it, if the State or 

other entity is willing to provide 50 percent share 

of the cost of an easement; or 

‘‘(II) a pothole and adjacent land that is functionally dependent on it; 

‘‘(iii) farmed wetlands and adjoining lands that— 

‘‘(I) are enrolled in the conservation reserve 

program; 

‘‘(II) have the highest wetland functions and 

values, as determined by the Secretary; and 

‘‘(III) are likely to return to production after 

they leave the conservation reserve program; 

‘‘(iv) riparian areas that link wetlands that are 

protected by easements or some other device that 

achieves the same purpose as an easement; or 

‘‘(v) other wetlands of an owner that would not 

otherwise be eligible, if the Secretary determines that 

the inclusion of such wetlands in a wetland reserve 

easement would significantly add to the functional 

value of the easement; or 

‘‘(C) in the case of either an agricultural land easement or a wetland reserve easement, other land that is incidental to land described in subparagraph (A) or (B), if 

the Secretary determines that it is necessary for the efficient administration of an easement under the program. 

‘‘(4) PROGRAM.—The term ‘program’ means the agricultural 

conservation easement program established by this subtitle. 

‘‘(5) WETLAND RESERVE EASEMENT.—The term ‘wetland reserve easement’ means a reserved interest in eligible land 

that— 

‘‘(A) is defined and delineated in a deed; and 

‘‘(B) stipulates— 

‘‘(i) the rights, title, and interests in land conveyed 

to the Secretary; and 

‘‘(ii) the rights, title, and interests in land that are 

reserved to the landowner. 


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‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 

‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary shall facilitate and provide funding for— 

‘‘(1) the purchase by eligible entities of agricultural land 

easements in eligible land; and 

‘‘(2) technical assistance to provide for the conservation of 

natural resources pursuant to an agricultural land easement 

plan. 

‘‘(b) COST-SHARE ASSISTANCE.— 

‘‘(1) IN GENERAL.—The Secretary shall protect the agricultural use, including grazing, and related conservation values of 

eligible land through cost-share assistance to eligible entities 

for purchasing agricultural land easements. 

‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 

‘‘(A) FEDERAL SHARE.—An agreement described in 

paragraph (4) shall provide for a Federal share determined 

by the Secretary of an amount not to exceed 50 percent of 

the fair market value of the agricultural land easement, as 

determined by the Secretary using— 

‘‘(i) the Uniform Standards of Professional Appraisal Practice; 

‘‘(ii) an areawide market analysis or survey; or 

‘‘(iii) another industry-approved method. 

‘‘(B) NON-FEDERAL SHARE.— 

‘‘(i) IN GENERAL.—Under the agreement, the eligible entity shall provide a share that is at least equivalent to that provided by the Secretary. 

‘‘(ii) SOURCE OF CONTRIBUTION.—An eligible entity 

may include as part of its share under clause (i) a 

charitable donation or qualified conservation contribution (as defined by section 170(h) of the Internal Revenue Code of 1986) from the private landowner if the 

eligible entity contributes its own cash resources in an 

amount that is at least 50 percent of the amount contributed by the Secretary. 

‘‘(C) EXCEPTION.— 

‘‘(i) GRASSLANDS.—In the case of grassland of special environmental significance, as determined by the 

Secretary, the Secretary may provide an amount not 

to exceed 75 percent of the fair market value of the agricultural land easement. 

‘‘(ii) CASH CONTRIBUTION.—For purposes of subparagraph (B)(ii), the Secretary may waive any portion 

of the eligible entity cash contribution requirement for 

projects of special significance, subject to an increase 

in the private landowner donation that is equal to the 

amount of the waiver, if the donation is voluntary and 

the property is in active agricultural production. 

‘‘(3) EVALUATION AND RANKING OF APPLICATIONS.— 

‘‘(A) CRITERIA.—The Secretary shall establish evaluation and ranking criteria to maximize the benefit of Federal investment under the program. 

‘‘(B) CONSIDERATIONS.—In establishing the criteria, 

the Secretary shall emphasize support for— 


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‘‘(i) protecting agricultural uses and related conservation values of the land; and 

‘‘(ii) maximizing the protection of areas devoted to 

agricultural use. 

‘‘(C) BIDDING DOWN.—If the Secretary determines that 

2 or more applications for cost-share assistance are comparable in achieving the purpose of the program, the Secretary shall not assign a higher priority to any of those applications solely on the basis of lesser cost to the program. 

‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 

‘‘(A) IN GENERAL.—The Secretary shall enter into 

agreements with eligible entities to stipulate the terms 

and conditions under which the eligible entity is permitted 

to use cost-share assistance provided under this section. 

‘‘(B) LENGTH OF AGREEMENTS.—An agreement shall be 

for a term that is— 

‘‘(i) in the case of an eligible entity certified under 

the process described in paragraph (5), a minimum of 

five years; and 

‘‘(ii) for all other eligible entities, at least three, 

but not more than five years. 

‘‘(C) MINIMUM TERMS AND CONDITIONS.—An eligible 

entity shall be authorized to use its own terms and conditions for agricultural land easements so long as the Secretary determines such terms and conditions— 

‘‘(i) are consistent with the purposes of the program; 

‘‘(ii) permit effective enforcement of the conservation purposes of such easements; 

‘‘(iii) include a right of enforcement for the Secretary, that may be used only if the terms of the easement are not enforced by the holder of the easement; 

‘‘(iv) subject the land in which an interest is purchased to an agricultural land easement plan that— 

‘‘(I) describes the activities which promote the 

long-term viability of the land to meet the purposes for which the easement was acquired; 

‘‘(II) requires the management of grasslands 

according to a grasslands management plan; and 

‘‘(III) includes a conservation plan, where appropriate, and requires, at the option of the Secretary, the conversion of highly erodible cropland 

to less intensive uses; and 

‘‘(v) include a limit on the impervious surfaces to 

be allowed that is consistent with the agricultural activities to be conducted. 

‘‘(D) SUBSTITUTION OF QUALIFIED PROJECTS.—An 

agreement shall allow, upon mutual agreement of the parties, substitution of qualified projects that are identified at 

the time of the proposed substitution. 

‘‘(E) EFFECT OF VIOLATION.—If a violation occurs of a 

term or condition of an agreement under this subsection— 

‘‘(i) the Secretary may terminate the agreement; 

and 


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‘‘(ii) the Secretary may require the eligible entity 

to refund all or part of any payments received by the 

entity under the program, with interest on the payments as determined appropriate by the Secretary. 

‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 

‘‘(A) CERTIFICATION PROCESS.—The Secretary shall establish a process under which the Secretary may— 

‘‘(i) directly certify eligible entities that meet established criteria; 

‘‘(ii) enter into long-term agreements with certified 

eligible entities; and 

‘‘(iii) accept proposals for cost-share assistance for 

the purchase of agricultural land easements throughout the duration of such agreements. 

‘‘(B) CERTIFICATION CRITERIA.—In order to be certified, 

an eligible entity shall demonstrate to the Secretary that 

the entity will maintain, at a minimum, for the duration 

of the agreement— 

‘‘(i) a plan for administering easements that is 

consistent with the purpose of the program; 

‘‘(ii) the capacity and resources to monitor and enforce agricultural land easements; and 

‘‘(iii) policies and procedures to ensure— 

‘‘(I) the long-term integrity of agricultural 

land easements on eligible land; 

‘‘(II) timely completion of acquisitions of such 

easements; and 

‘‘(III) timely and complete evaluation and reporting to the Secretary on the use of funds provided under the program. 

‘‘(C) REVIEW AND REVISION.— 

‘‘(i) REVIEW.—The Secretary shall conduct a review of eligible entities certified under subparagraph 

(A) every three years to ensure that such entities are 

meeting the criteria established under subparagraph 

(B). 

‘‘(ii) REVOCATION.—If the Secretary finds that a 

certified eligible entity no longer meets the criteria established under subparagraph (B), the Secretary 

may— 

‘‘(I) allow the certified eligible entity a specified period of time, at a minimum 180 days, in 

which to take such actions as may be necessary to 

meet the criteria; and 

‘‘(II) revoke the certification of the eligible entity, if, after the specified period of time, the certified eligible entity does not meet such criteria. 

‘‘(c) METHOD OF ENROLLMENT.—The Secretary shall enroll eligible land under this section through the use of— 

‘‘(1) permanent easements; or 

‘‘(2) easements for the maximum duration allowed under 

applicable State laws. 

‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may provide technical assistance, if requested, to assist in— 


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‘‘(1) compliance with the terms and conditions of easements; and 

‘‘(2) implementation of an agricultural land easement plan. 

‘‘SEC. 1265C. WETLAND RESERVE EASEMENTS. 

‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary shall provide 

assistance to owners of eligible land to restore, protect, and enhance wetlands through— 

‘‘(1) wetland reserve easements and related wetland reserve easement plans; and 

‘‘(2) technical assistance. 

‘‘(b) EASEMENTS.— ‘‘(1) METHOD OF ENROLLMENT.—The Secretary shall enroll 

eligible land under this section through the use of— 

‘‘(A) 30-year easements; 

‘‘(B) permanent easements; 

‘‘(C) easements for the maximum duration allowed 

under applicable State laws; or 

‘‘(D) as an option for Indian tribes only, 30-year contracts. 

‘‘(2) LIMITATIONS.— ‘‘(A) INELIGIBLE LAND.—The Secretary may not acquire 

easements on— 

‘‘(i) land established to trees under the conservation reserve program, except in cases where the Secretary determines it would further the purposes of this 

section; and 

‘‘(ii) farmed wetlands or converted wetlands where 

the conversion was not commenced prior to December 

23, 1985. 

‘‘(B) CHANGES IN OWNERSHIP.—No wetland reserve 

easement shall be created on land that has changed ownership during the preceding 24-month period unless— 

‘‘(i) the new ownership was acquired by will or 

succession as a result of the death of the previous 

owner; 

‘‘(ii)(I) the ownership change occurred because of 

foreclosure on the land; and 

‘‘(II) immediately before the foreclosure, the owner 

of the land exercises a right of redemption from the 

mortgage holder in accordance with State law; or 

‘‘(iii) the Secretary determines that the land was 

acquired under circumstances that give adequate assurances that such land was not acquired for the purposes of placing it in the program. 

‘‘(3) EVALUATION AND RANKING OF OFFERS.— 

‘‘(A) CRITERIA.—The Secretary shall establish evaluation and ranking criteria for offers from landowners under 

this section to maximize the benefit of Federal investment 

under the program. 

‘‘(B) CONSIDERATIONS.—When evaluating offers from 

landowners, the Secretary may consider— 

‘‘(i) the conservation benefits of obtaining a wetland reserve easement, including the potential environmental benefits if the land was removed from agricultural production; 


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‘‘(ii) the cost effectiveness of each wetland reserve 

easement, so as to maximize the environmental benefits per dollar expended; 

‘‘(iii) whether the landowner or another person is 

offering to contribute financially to the cost of the wetland reserve easement to leverage Federal funds; and 

‘‘(iv) such other factors as the Secretary determines are necessary to carry out the purposes of the 

program. 

‘‘(C) PRIORITY.—The Secretary shall give priority to acquiring wetland reserve easements based on the value of 

the wetland reserve easement for protecting and enhancing habitat for migratory birds and other wildlife. 

‘‘(4) AGREEMENT.—To be eligible to place eligible land into 

the program through a wetland reserve easement, the owner of 

such land shall enter into an agreement with the Secretary 

to— 

‘‘(A) grant an easement on such land to the Secretary; 

‘‘(B) authorize the implementation of a wetland reserve easement plan developed for the eligible land under 

subsection (f); 

‘‘(C) create and record an appropriate deed restriction 

in accordance with applicable State law to reflect the easement agreed to; 

‘‘(D) provide a written statement of consent to such 

easement signed by those holding a security interest in the 

land; 

‘‘(E) comply with the terms and conditions of the easement and any related agreements; and 

‘‘(F) permanently retire any existing base history for 

the land on which the easement has been obtained. 

‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— 

‘‘(A) IN GENERAL.—A wetland reserve easement shall 

include terms and conditions that— 

‘‘(i) permit— 

‘‘(I) repairs, improvements, and inspections on 

the land that are necessary to maintain existing 

public drainage systems; and 

‘‘(II) owners to control public access on the 

easement areas while identifying access routes to 

be used for restoration activities and management 

and easement monitoring; 

‘‘(ii) prohibit— 

‘‘(I) the alteration of wildlife habitat and other 

natural features of such land, unless specifically 

authorized by the Secretary; 

‘‘(II) the spraying of such land with chemicals 

or the mowing of such land, except where such 

spraying or mowing is authorized by the Secretary 

or is necessary— 

‘‘(aa) to comply with Federal or State noxious weed control laws; 

‘‘(bb) to comply with a Federal or State 

emergency pest treatment program; or 


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‘‘(cc) to meet habitat needs of specific 

wildlife species; 

‘‘(III) any activities to be carried out on the 

owner’s or successor’s land that is immediately adjacent to, and functionally related to, the land 

that is subject to the easement if such activities 

will alter, degrade, or otherwise diminish the 

functional value of the eligible land; and 

‘‘(IV) the adoption of any other practice that 

would tend to defeat the purposes of the program, 

as determined by the Secretary; 

‘‘(iii) provide for the efficient and effective establishment of wetland functions and values; and 

‘‘(iv) include such additional provisions as the Secretary determines are desirable to carry out the program or facilitate the practical administration thereof. 

‘‘(B) VIOLATION.—On the violation of a term or condition of a wetland reserve easement, the wetland reserve 

easement shall remain in force and 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. 

‘‘(C) COMPATIBLE USES.—Land subject to a wetland reserve easement may be used for compatible economic uses, 

including such activities as hunting and fishing, managed 

timber harvest, or periodic haying or grazing, if such use 

is specifically permitted by the wetland reserve easement 

plan developed for the land under subsection (f) and is consistent with the long-term protection and enhancement of 

the wetland resources for which the easement was established. 

‘‘(D) RESERVATION OF GRAZING RIGHTS.—The Secretary 

may include in the terms and conditions of a wetland reserve easement a provision under which the owner reserves grazing rights if— 

‘‘(i) the Secretary determines that the reservation 

and use of the grazing rights— 

‘‘(I) is compatible with the land subject to the 

easement; 

‘‘(II) is consistent with the historical natural 

uses of the land and the long-term protection and 

enhancement goals for which the easement was 

established; and 

‘‘(III) complies with the wetland reserve easement plan developed for the land under subsection 

(f); and 

‘‘(ii) the agreement provides for a commensurate 

reduction in the easement payment to account for the 

grazing value, as determined by the Secretary. 

‘‘(6) COMPENSATION.— 

‘‘(A) DETERMINATION.— 

‘‘(i) PERMANENT EASEMENTS.—The Secretary shall 

pay as compensation for a permanent wetland reserve 

easement acquired under the program an amount necVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00097 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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essary to encourage enrollment in the program, based 

on the lowest of— 

‘‘(I) the fair market value of the land, as determined by the Secretary, using the Uniform 

Standards of Professional Appraisal Practice or an 

areawide market analysis or survey; 

‘‘(II) the amount corresponding to a geographical cap, as determined by the Secretary in 

regulations; or 

‘‘(III) the offer made by the landowner. 

‘‘(ii) OTHER.—Compensation for a 30-year contract 

or 30-year wetland reserve easement shall be not less 

than 50 percent, but not more than 75 percent, of the 

compensation that would be paid for a permanent wetland reserve easement. 

‘‘(B) FORM OF PAYMENT.—Compensation for a wetland 

reserve easement shall be provided by the Secretary in the 

form of a cash payment, in an amount determined under 

subparagraph (A). 

‘‘(C) PAYMENT SCHEDULE.— 

‘‘(i) EASEMENTS VALUED AT $500,000 OR LESS.—For 

wetland reserve easements valued at $500,000 or less, 

the Secretary may provide payments in not more than 

10 annual payments. 

‘‘(ii) EASEMENTS VALUED AT MORE THAN $500,000.— For wetland reserve easements valued at more than 

$500,000, the Secretary may provide payments in at 

least 5, but not more than 10 annual payments, except 

that, if the Secretary determines it would further the 

purposes of the program, the Secretary may make a 

lump-sum payment for such an easement. 

‘‘(c) EASEMENT RESTORATION.— 

‘‘(1) IN GENERAL.—The Secretary shall provide financial assistance to owners of eligible land to carry out the establishment of conservation measures and practices and protect wetland functions and values, including necessary maintenance 

activities, as set forth in a wetland reserve easement plan developed for the eligible land under subsection (f). 

‘‘(2) PAYMENTS.—The Secretary shall— 

‘‘(A) in the case of a permanent wetland reserve easement, pay an amount that is not less than 75 percent, but 

not more than 100 percent, of the eligible costs, as determined by the Secretary; and 

‘‘(B) in the case of a 30-year contract or 30-year wetland reserve easement, pay an amount that is not less 

than 50 percent, but not more than 75 percent, of the eligible costs, as determined by the Secretary. 

‘‘(d) TECHNICAL ASSISTANCE.— 

‘‘(1) IN GENERAL.—The Secretary shall assist owners in 

complying with the terms and conditions of a wetland reserve 

easement. 

‘‘(2) CONTRACTS OR AGREEMENTS.—The Secretary may 

enter into 1 or more contracts with private entities or agreements with a State, nongovernmental organization, or Indian 

tribe to carry out necessary restoration, enhancement, or mainVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00098 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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tenance of a wetland reserve easement if the Secretary determines that the contract or agreement will advance the purposes of the program. 

‘‘(e) WETLAND RESERVE ENHANCEMENT OPTION.—The Secretary 

may enter into 1 or more agreements with a State (including a political subdivision or agency of a State), nongovernmental organization, or Indian tribe to carry out a special wetland reserve enhancement option that the Secretary determines would advance the purposes of program. 

‘‘(f) ADMINISTRATION.— ‘‘(1) WETLAND RESERVE EASEMENT PLAN.—The Secretary 

shall develop a wetland reserve easement plan for any eligible 

land subject to a wetland reserve easement, which shall include practices and activities necessary to restore, protect, enhance, and maintain the enrolled land. 

‘‘(2) DELEGATION OF EASEMENT ADMINISTRATION.— ‘‘(A) IN GENERAL.—The Secretary may delegate any of 

the management, monitoring, and enforcement responsibilities of the Secretary under this section to other Federal 

or State agencies that have the appropriate authority, expertise, and resources necessary to carry out such delegated responsibilities, or to conservation organizations if 

the Secretary determines the organization has similar expertise and resources. 

‘‘(B) LIMITATION.—The Secretary shall not delegate 

any of the monitoring or enforcement responsibilities 

under this section to conservation organizations. 

‘‘(3) PAYMENTS.— ‘‘(A) TIMING OF PAYMENTS.—The Secretary shall provide payment for obligations incurred by the Secretary 

under this section— 

‘‘(i) with respect to any easement restoration obligation under subsection (c), as soon as possible after 

the obligation is incurred; and 

‘‘(ii) with respect to any annual easement payment 

obligation incurred by the Secretary, as soon as possible after October 1 of each calendar year. 

‘‘(B) PAYMENTS TO OTHERS.—If an owner who is entitled to a payment under this section dies, becomes incompetent, is otherwise unable to receive such payment, or is 

succeeded by another person or entity who renders or completes the required performance, the Secretary shall make 

such payment, in accordance with regulations prescribed 

by the Secretary and without regard to any other provision 

of law, in such manner as the Secretary determines is fair 

and reasonable in light of all of the circumstances. 

‘‘(g) APPLICATION.—The relevant provisions of this section shall 

also apply to a 30-year contract. 

‘‘SEC. 1265D. ADMINISTRATION. 

‘‘(a) INELIGIBLE LAND.—The Secretary may not use program 

funds for the purposes of acquiring an easement on— 

‘‘(1) lands owned by an agency of the United States, other 

than land held in trust for Indian tribes; 

‘‘(2) lands owned in fee title by a State, including an agency or a subdivision of a State, or a unit of local government; 


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‘‘(3) land subject to an easement or deed restriction which, 

as determined by the Secretary, provides similar protection as 

would be provided by enrollment in the program; or 

‘‘(4) lands where the purposes of the program would be undermined due to on-site or off-site conditions, such as risk of 

hazardous substances, proposed or existing rights of way, infrastructure development, or adjacent land uses. 

‘‘(b) PRIORITY.—In evaluating applications under the program, 

the Secretary may give priority to land that is currently enrolled 

in the conservation reserve program in a contract that is set to expire within 1 year and— 

‘‘(1) in the case of an agricultural land easement, is grassland that would benefit from protection under a long-term 

easement; and 

‘‘(2) in the case of a wetland reserve easement, is a wetland or related area with the highest wetland functions and 

value and is likely to return to production after the land leaves 

the conservation reserve program. 

‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, AND TERMINATION.— 

‘‘(1) IN GENERAL.—The Secretary may subordinate, exchange, modify, or terminate any interest in land, or portion of 

such interest, administered by the Secretary, either directly or 

on behalf of the Commodity Credit Corporation under the program if the Secretary determines that— 

‘‘(A) it is in the Federal Government’s interest to subordinate, exchange, modify, or terminate the interest in 

land; 

‘‘(B) the subordination, exchange, modification, or termination action— 

‘‘(i) will address a compelling public need for 

which there is no practicable alternative; or 

‘‘(ii) such action will further the practical administration of the program; and 

‘‘(C) the subordination, exchange, modification, or termination action will result in comparable conservation 

value and equivalent or greater economic value to the 

United States. 

‘‘(2) CONSULTATION.—The Secretary shall work with the 

owner, and eligible entity if applicable, to address any subordination, exchange, modification, or termination of the interest, 

or portion of such interest, in land. 

‘‘(3) NOTICE.—At least 90 days before taking any termination action described in paragraph (1), the Secretary shall 

provide written notice of such action to the Committee on Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate. 

‘‘(d) LAND ENROLLED IN OTHER PROGRAMS.— 

‘‘(1) CONSERVATION RESERVE PROGRAM.—The Secretary 

may terminate or modify a contract entered into under section 

1231(a) if eligible land that is subject to such contract is transferred into the program. 

‘‘(2) OTHER.—In accordance with the provisions of subtitle 

H of title II of the Agricultural Act of 2014, land enrolled in 

the wetlands reserve program, grassland reserve program, or 


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farmland protection program on the day before the date of enactment of the Agricultural Act of 2014 shall be considered enrolled in the program. 

‘‘(e) COMPLIANCE WITH CERTAIN REQUIREMENTS.—The Secretary may not provide assistance under this subtitle to an eligible 

entity or owner of eligible land unless the eligible entity or owner 

agrees, during the crop year for which the assistance is provided— 

‘‘(1) to comply with applicable conservation requirements 

under subtitle B; and 

‘‘(2) to comply with applicable wetland protection requirements under subtitle C.’’. 

(b) CROSS REFERENCE; CALCULATION.—Section 1244 of the 

Food Security Act of 1985 (16 U.S.C. 3844) is amended— 

(1) in subsection (c)— 

(A) in paragraph (1)— 

(i) by inserting ‘‘and’’ at the end of subparagraph 

(A); 

(ii) by striking ‘‘and’’ at the end of subparagraph 

(B); and 

(iii) by striking subparagraph (C); 

(B) by redesignating paragraph (2) as paragraph (3); 

and 

(C) by inserting after paragraph (1) the following new 

paragraph: 

‘‘(2) the agricultural conservation easement program established under subtitle H; and’’; and 

(2) in subsection (f)— 

(A) in paragraph (1)— 

(i) in subparagraph (A), by striking ‘‘programs administered under subchapters B and C of chapter 1 of 

subtitle D’’ and inserting ‘‘conservation reserve program established under subchapter B of chapter 1 of 

subtitle D and wetland reserve easements under section 1265C’’; and 

(ii) in subparagraph (B), by striking ‘‘an easement 

acquired under subchapter C of chapter 1 of subtitle 

D’’ and inserting ‘‘a wetland reserve easement under 

section 1265C’’; 

(B) by striking paragraph (4) and inserting the following: 

‘‘(4) EXCLUSIONS.— 

‘‘(A) SHELTERBELTS AND WINDBREAKS.—The limitations 

established under paragraph (1) shall not apply to cropland that is subject to an easement under subchapter B of 

chapter 1 of subtitle D that is used for the establishment 

of shelterbelts and windbreaks. 

‘‘(B) WET AND SATURATED SOILS.—For the purposes of 

enrolling land in a wetland reserve easement under section 1265C, the limitations established under paragraph 

(1) shall not apply to cropland designated by the Secretary 

with subclass w in the land capability classes IV through 

VIII because of severe use limitations due to soil saturation or inundation.’’; and 

(C) by adding at the end the following new paragraph: 


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‘‘(5) CALCULATION.—In calculating the percentages described in paragraph (1), the Secretary shall include any acreage that was included in calculations of percentages made 

under such paragraph, as in effect on the day before the date 

of enactment of the Agricultural Act of 2014, and that remains 

enrolled when the calculation is made after that date under 

paragraph (1).’’. 

Subtitle E—Regional Conservation Partnership Program 

SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PROGRAM. 

Title XII of the Food Security Act of 1985 is amended by inserting after subtitle H, as added by section 2301, the following 

new subtitle: 

‘‘Subtitle I—Regional Conservation Partnership Program 

‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a regional 

conservation partnership program to implement eligible activities 

on eligible land through— 

‘‘(1) partnership agreements with eligible partners; and 

‘‘(2) contracts with producers. 

‘‘(b) PURPOSES.—The purposes of the program are as follows: 

‘‘(1) To use covered programs to accomplish purposes and 

functions similar to those of the following programs, as in effect on the day before the date of enactment of the Agricultural 

Act of 2014: 

‘‘(A) The agricultural water enhancement program established under section 1240I. 

‘‘(B) The Chesapeake Bay watershed program established under section 1240Q. 

‘‘(C) The cooperative conservation partnership initiative established under section 1243. 

‘‘(D) The Great Lakes basin program for soil erosion 

and sediment control established under section 1240P. 

‘‘(2) To further the conservation, restoration, and sustainable use of soil, water, wildlife, and related natural resources 

on eligible land on a regional or watershed scale. 

‘‘(3) To encourage eligible partners to cooperate with producers in— 

‘‘(A) meeting or avoiding the need for national, State, 

and local natural resource regulatory requirements related 

to production on eligible land; and 

‘‘(B) implementing projects that will result in the installation and maintenance of eligible activities that affect 

multiple agricultural or nonindustrial private forest operations on a local, regional, State, or multistate basis. 

‘‘SEC. 1271A. DEFINITIONS. 

‘‘In this subtitle: 

‘‘(1) COVERED PROGRAM.—The term ‘covered program’ 

means the following: 

‘‘(A) The agricultural conservation easement program. 

‘‘(B) The environmental quality incentives program. 

‘‘(C) The conservation stewardship program. 


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‘‘(D) The healthy forests reserve program established 

under section 501 of the Healthy Forests Restoration Act 

of 2003 (16 U.S.C. 6571). 

‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible activity’ means 

a conservation activity for any of the following: 

‘‘(A) Water quality restoration or enhancement 

projects, including nutrient management and sediment reduction. 

‘‘(B) Water quantity conservation, restoration, or enhancement projects relating to surface water and groundwater resources, including— 

‘‘(i) the conversion of irrigated cropland to the production of less water-intensive agricultural commodities or dryland farming; or 

‘‘(ii) irrigation system improvement and irrigation 

efficiency enhancement. 

‘‘(C) Drought mitigation. 

‘‘(D) Flood prevention. 

‘‘(E) Water retention. 

‘‘(F) Air quality improvement. 

‘‘(G) Habitat conservation, restoration, and enhancement. 

‘‘(H) Erosion control and sediment reduction. 

‘‘(I) Forest restoration. 

‘‘(J) Other related activities that the Secretary determines will help achieve conservation benefits. 

‘‘(3) ELIGIBLE LAND.— ‘‘(A) IN GENERAL.—The term ‘eligible land’ means— 

‘‘(i) land on which agricultural commodities, livestock, or forest-related products are produced; and 

‘‘(ii) lands associated with the lands described in 

clause (i). 

‘‘(B) INCLUSIONS.—The term ‘eligible land’ includes— 

‘‘(i) cropland; 

‘‘(ii) grassland; 

‘‘(iii) rangeland; 

‘‘(iv) pastureland; 

‘‘(v) nonindustrial private forest land; and 

‘‘(vi) other land incidental to agricultural production (including wetlands and riparian buffers) on 

which significant natural resource issues could be addressed under the program. 

‘‘(4) ELIGIBLE PARTNER.—The term ‘eligible partner’ means 

any of the following: 

‘‘(A) An agricultural or silvicultural producer association or other group of producers. 

‘‘(B) A State or unit of local government. 

‘‘(C) An Indian tribe. 

‘‘(D) A farmer cooperative. 

‘‘(E) A water district, irrigation district, rural water 

district or association, or other organization with specific 

water delivery authority to producers on agricultural land. 

‘‘(F) A municipal water or wastewater treatment entity. 

‘‘(G) An institution of higher education. 


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‘‘(H) An organization or entity with an established history of working cooperatively with producers on agricultural land, as determined by the Secretary, to address— 

‘‘(i) local conservation priorities related to agricultural production, wildlife habitat development, or nonindustrial private forest land management; or 

‘‘(ii) critical watershed-scale soil erosion, water 

quality, sediment reduction, or other natural resource 

issues. 

‘‘(5) PARTNERSHIP AGREEMENT.—The term ‘partnership 

agreement’ means an agreement entered into under section 

1271B between the Secretary and an eligible partner. 

‘‘(6) PROGRAM.—The term ‘program’ means the regional 

conservation partnership program established by this subtitle. 

‘‘SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS. 

‘‘(a) PARTNERSHIP AGREEMENTS AUTHORIZED.—The Secretary 

may enter into a partnership agreement with an eligible partner to 

implement a project that will assist producers with installing and 

maintaining an eligible activity on eligible land. 

‘‘(b) LENGTH.—A partnership agreement shall be for a period 

not to exceed 5 years, except that the Secretary may extend the 

agreement one time for up to 12 months when an extension is necessary to meet the objectives of the program. 

‘‘(c) DUTIES OF PARTNERS.— 

‘‘(1) IN GENERAL.—Under a partnership agreement, the eligible partner shall— 

‘‘(A) define the scope of a project, including— 

‘‘(i) the eligible activities to be implemented; 

‘‘(ii) the potential agricultural or nonindustrial private forest land operations affected; 

‘‘(iii) the local, State, multistate, or other geographic area covered; and 

‘‘(iv) the planning, outreach, implementation, and 

assessment to be conducted; 

‘‘(B) conduct outreach and education to producers for 

potential participation in the project; 

‘‘(C) at the request of a producer, act on behalf of a 

producer participating in the project in applying for assistance under section 1271C; 

‘‘(D) leverage financial or technical assistance provided 

by the Secretary with additional funds to help achieve the 

project objectives; 

‘‘(E) conduct an assessment of the project’s effects; and 

‘‘(F) at the conclusion of the project, report to the Secretary on its results and funds leveraged. 

‘‘(2) CONTRIBUTION.—An eligible partner shall provide a 

significant portion of the overall costs of the scope of the 

project that is the subject of the agreement entered into under 

subsection (a), as determined by the Secretary. 

‘‘(d) APPLICATIONS.— 

‘‘(1) COMPETITIVE PROCESS.—The Secretary shall conduct a 

competitive process to select applications for partnership agreements and may assess and rank applications with similar conservation purposes as a group. 


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‘‘(2) CRITERIA USED.—In carrying out the process described 

in paragraph (1), the Secretary shall make public the criteria 

used in evaluating applications. 

‘‘(3) CONTENT.—An application to the Secretary shall include a description of— 

‘‘(A) the scope of the project, as described in subsection 

(c)(1)(A); 

‘‘(B) the plan for monitoring, evaluating, and reporting 

on progress made toward achieving the project’s objectives; 

‘‘(C) the program resources requested for the project, 

including the covered programs to be used and estimated 

funding needed from the Secretary; 

‘‘(D) each eligible partner collaborating to achieve 

project objectives, including their roles, responsibilities, capabilities, and financial contribution; and 

‘‘(E) any other elements the Secretary considers necessary to adequately evaluate and competitively select applications for funding under the program. 

‘‘(4) PRIORITY TO CERTAIN APPLICATIONS.—The Secretary 

may give a higher priority to applications that— 

‘‘(A) assist producers in meeting or avoiding the need 

for a natural resource regulatory requirement; 

‘‘(B) have a high percentage of producers in the area 

to be covered by the agreement; 

‘‘(C) significantly leverage non-Federal financial and 

technical resources and coordinate with other local, State, 

or national efforts; 

‘‘(D) deliver high percentages of applied conservation 

to address conservation priorities or regional, State, or national conservation initiatives; 

‘‘(E) provide innovation in conservation methods and 

delivery, including outcome-based performance measures 

and methods; or 

‘‘(F) meet other factors that are important for achieving the purposes of the program, as determined by the Secretary. 

‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. 

‘‘(a) IN GENERAL.—The Secretary shall enter into contracts 

with producers to provide financial and technical assistance to— 

‘‘(1) producers participating in a project with an eligible 

partner; or 

‘‘(2) producers that fit within the scope of a project described in section 1271B or a critical conservation area designated under section 1271F, but who are seeking to implement an eligible activity on eligible land independent of an eligible partner. 

‘‘(b) TERMS AND CONDITIONS.— 

‘‘(1) CONSISTENCY WITH PROGRAM RULES.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B) and paragraph (2), the Secretary shall ensure 

that the terms and conditions of a contract under this section are consistent with the applicable rules of the covered 

programs to be used as part of the partnership agreement, 

as described in the application under section 

1271B(d)(3)(C). 


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‘‘(B) ADJUSTMENTS.— ‘‘(i) IN GENERAL.—The Secretary may adjust the 

rules of a covered program, including— 

‘‘(I) operational guidance and requirements for 

a covered program at the discretion of the Secretary so as to provide a simplified application 

and evaluation process; and 

‘‘(II) nonstatutory, regulatory rules or provisions to better reflect unique local circumstances 

and purposes if the Secretary determines such adjustments are necessary to achieve the purposes of 

the covered program. 

‘‘(ii) LIMITATION.—The Secretary shall not adjust 

the application of statutory requirements for a covered 

program, including requirements governing appeals, 

payment limits, and conservation compliance. 

‘‘(iii) IRRIGATION.—In States where irrigation has 

not been used significantly for agricultural purposes, 

as determined by the Secretary, the Secretary shall 

not limit eligibility under section 1271B or this section 

on the basis of prior irrigation history. 

‘‘(2) ALTERNATIVE FUNDING ARRANGEMENTS.— ‘‘(A) IN GENERAL.—For the purposes of providing assistance for land described in subsection (a) and section 

1271F, the Secretary may enter into alternative funding 

arrangements with a multistate water resource agency or 

authority if— 

‘‘(i) the Secretary determines that the goals and 

objectives of the program will be met by the alternative funding arrangements; 

‘‘(ii) the agency or authority certifies that the limitations established under this section on agreements 

with individual producers will not be exceeded; and 

‘‘(iii) all participating producers meet applicable 

payment eligibility provisions. 

‘‘(B) CONDITIONS.—As a condition of receiving funding 

under subparagraph (A), the multistate water resource 

agency or authority shall agree— 

‘‘(i) to submit an annual independent audit to the 

Secretary that describes the use of funds under this 

paragraph; 

‘‘(ii) to provide any data necessary for the Secretary to issue a report on the use of funds under this 

paragraph; and 

‘‘(iii) not to use any of the funds provided pursuant to subparagraph (A) for administration or to provide for administrative costs through contracts with 

another entity. 

‘‘(C) LIMITATION.—The Secretary may enter into not 

more than 20 alternative funding arrangements under this 

paragraph. 

‘‘(c) PAYMENTS.— ‘‘(1) IN GENERAL.—In accordance with statutory requirements of the covered programs involved, the Secretary may 

make payments to a producer in an amount determined by the 


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Secretary to be necessary to achieve the purposes of the program. 

‘‘(2) PAYMENTS TO CERTAIN PRODUCERS.—The Secretary 

may provide payments for a period of 5 years— 

‘‘(A) to producers participating in a project that addresses water quantity concerns and in an amount sufficient to encourage conversion from irrigated to dryland 

farming; and 

‘‘(B) to producers participating in a project that addresses water quality concerns and in an amount sufficient 

to encourage adoption of conservation practices and systems that improve nutrient management. 

‘‘(3) WAIVER AUTHORITY.—To assist in the implementation 

of the program, the Secretary may waive the applicability of 

the limitation in section 1001D(b)(2) of this Act for participating producers if the Secretary determines that the waiver 

is necessary to fulfill the objectives of the program. 

‘‘SEC. 1271D. FUNDING. 

‘‘(a) AVAILABILITY OF FUNDS.—The Secretary shall use 

$100,000,000 of the funds of the Commodity Credit Corporation for 

each of fiscal years 2014 through 2018 to carry out the program. 

‘‘(b) DURATION OF AVAILABILITY.—Funds made available under 

subsection (a) shall remain available until expended. 

‘‘(c) ADDITIONAL FUNDING AND ACRES.— 

‘‘(1) IN GENERAL.—In addition to the funds made available 

under subsection (a), the Secretary shall reserve 7 percent of 

the funds and acres made available for a covered program for 

each of fiscal years 2014 through 2018 in order to ensure additional resources are available to carry out this program. 

‘‘(2) UNUSED FUNDS AND ACRES.—Any funds or acres reserved under paragraph (1) for a fiscal year from a covered 

program that are not committed under this program by April 

1 of that fiscal year shall be returned for use under the covered 

program. 

‘‘(d) ALLOCATION OF FUNDING.—Of the funds and acres made 

available for the program under subsection (a) and reserved for the 

program under subsection (c), the Secretary shall allocate— 

‘‘(1) 25 percent of the funds and acres to projects based on 

a State competitive process administered by the State Conservationist, with the advice of the State technical committee 

established under subtitle G; 

‘‘(2) 40 percent of the funds and acres to projects based on 

a national competitive process to be established by the Secretary; and 

‘‘(3) 35 percent of the funds and acres to projects for critical conservation areas designated under section 1271F. 

‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.—None of the 

funds made available or reserved for the program may be used to 

pay for the administrative expenses of eligible partners. 

‘‘SEC. 1271E. ADMINISTRATION. 

‘‘(a) DISCLOSURE.—In addition to the criteria used in evaluating applications as described in section 1271B(d)(2), the Secretary shall make publicly available information on projects seVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00107 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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lected through the competitive process described in section 

1271B(d)(1). 

‘‘(b) REPORTING.—Not later than December 31, 2014, and every 

two years thereafter, the Secretary shall submit to the Committee 

on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report on 

the status of projects funded under the program, including— 

‘‘(1) the number and types of eligible partners and producers participating in the partnership agreements selected; 

‘‘(2) the number of producers receiving assistance; 

‘‘(3) total funding committed to projects, including from 

Federal and non-Federal resources; and 

‘‘(4) a description of how the funds under section 

1271C(b)(2) are being administered, including— 

‘‘(A) any oversight mechanisms that the Secretary has 

implemented; 

‘‘(B) the process through which the Secretary is resolving appeals by program participants; and 

‘‘(C) the means by which the Secretary is tracking adherence to any applicable provisions for payment eligibility. 

‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. 

‘‘(a) IN GENERAL.—In administering funds under section 

1271D(d)(3), the Secretary shall select applications for partnership 

agreements and producer contracts within critical conservation 

areas designated under this section. 

‘‘(b) CRITICAL CONSERVATION AREA DESIGNATIONS.— ‘‘(1) PRIORITY.—In designating critical conservation areas 

under this section, the Secretary shall give priority to geographical areas based on the degree to which the geographical 

area— 

‘‘(A) includes multiple States with significant agricultural production; 

‘‘(B) is covered by an existing regional, State, binational, or multistate agreement or plan that has established objectives, goals, and work plans and is adopted by 

a Federal, State, or regional authority; 

‘‘(C) would benefit from water quality improvement, 

including through reducing erosion, promoting sediment 

control, and addressing nutrient management activities affecting large bodies of water of regional, national, or international significance; 

‘‘(D) would benefit from water quantity improvement, 

including improvement relating to— 

‘‘(i) groundwater, surface water, aquifer, or other 

water sources; or 

‘‘(ii) a need to promote water retention and flood 

prevention; or 

‘‘(E) contains producers that need assistance in meeting or avoiding the need for a natural resource regulatory 

requirement that could have a negative impact on the economic scope of the agricultural operations within the area. 

‘‘(2) EXPIRATION.—Critical conservation area designations 

under this section shall expire after 5 years, subject to redesignation, except that the Secretary may withdraw designation 


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from an area if the Secretary finds the area no longer meets 

the conditions described in paragraph (1). 

‘‘(3) LIMITATION.—The Secretary may not designate more 

than 8 geographical areas as critical conservation areas under 

this section. 

‘‘(c) ADMINISTRATION.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the 

Secretary shall administer any partnership agreement or producer contract under this section in a manner that is consistent with the terms of the program. 

‘‘(2) RELATIONSHIP TO EXISTING ACTIVITY.—The Secretary 

shall, to the maximum extent practicable, ensure that eligible 

activities carried out in critical conservation areas designated 

under this section complement and are consistent with other 

Federal and State programs and water quality and quantity 

strategies. 

‘‘(3) ADDITIONAL AUTHORITY.—For a critical conservation 

area described in subsection (b)(1)(D), the Secretary may use 

authorities under the Watershed Protection and Flood Prevention Act (16 U.S.C. 1001 et seq.), other than section 14 of such 

Act (16 U.S.C. 1012), to carry out projects for the purposes of 

this section.’’. 

Subtitle F—Other Conservation Programs 

SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND. 

Section 1240M(e) of the Food Security Act of 1985 (16 U.S.C. 

3839bb(e)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PROGRAM. 

Section 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 

3839bb–2(b)) is amended to read as follows: 

‘‘(b) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $20,000,000 for 

each of fiscal years 2008 through 2018. 

‘‘(2) AVAILABILITY OF FUNDS.—In addition to funds made 

available under paragraph (1), of the funds of the Commodity 

Credit Corporation, the Secretary shall use $5,000,000, to remain available until expended.’’. 

SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT INCENTIVE 

PROGRAM. 

(a) FUNDING.—Section 1240R(f)(1) of the Food Security Act of 

1985 (16 U.S.C. 3839bb–5(f)(1)) is amended— 

(1) in the heading, by striking ‘‘FISCAL YEARS 2009

THROUGH 2012’’ and inserting ‘‘MANDATORY FUNDING’’; and 

(2) by inserting ‘‘and $40,000,000 for the period of fiscal 

years 2014 through 2018’’ before the period at the end. 

(b) REPORT ON PROGRAM EFFECTIVENESS.—Not later than 2 

years after the date of enactment of this Act, the Secretary of Agriculture shall submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report evaluating the effectiveness of 

the voluntary public access and habitat incentive program established by section 1240R of the Food Security Act of 1985 (16 U.S.C. 

3839bb–5), including— 


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(1) identifying cooperating agencies; 

(2) identifying the number of land holdings and total acres 

enrolled by State; 

(3) evaluating the extent of improved access on eligible 

land, improved wildlife habitat, and related economic benefits; 

and 

(4) any other relevant information and data relating to the 

program that would be helpful to such Committees. 

SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED SERVICES 

PROGRAM. 

Subsection (c)(2) of section 1252 of the Food Security Act of 

1985 (16 U.S.C. 3851) is amended to read as follows: 

‘‘(2) EXCLUSION.—Funds made available to carry out the 

conservation reserve program may not be used to carry out the 

ACES program.’’. 

SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM. 

(a) AVAILABILITY OF FUNDS.—Section 14(h)(1) of the Watershed 

Protection and Flood Prevention Act (16 U.S.C. 1012(h)(1)) is 

amended— 

(1) in subparagraph (E), by striking ‘‘; and’’ and inserting 

a semicolon; 

(2) in subparagraph (F), by striking the period and inserting a semicolon; 

(3) in subparagraph (G), by striking the period and inserting ‘‘; and’’; and 

(4) by adding at the end the following new subparagraph: ‘‘(H) $250,000,000 for fiscal year 2014, to remain available until expended.’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 14(h)(2)(E) of 

the Watershed Protection and Flood Prevention Act (16 U.S.C. 

1012(h)(2)(E)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 2506. EMERGENCY WATERSHED PROTECTION PROGRAM. 

Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 

2203) is amended— 

(1) by striking ‘‘Sec. 403. The Secretary’’ and inserting the 

following: 

‘‘SEC. 403. EMERGENCY MEASURES. 

‘‘(a) IN GENERAL.—The Secretary’’; and 

(2) by adding at the end the following: 

‘‘(b) FLOODPLAIN EASEMENTS.— ‘‘(1) MODIFICATION AND TERMINATION.—The Secretary may 

modify or terminate a floodplain easement administered by the 

Secretary under this section if— 

‘‘(A) the current owner agrees to the modification or 

termination; and 

‘‘(B) the Secretary determines that the modification or 

termination— 

‘‘(i) will address a compelling public need for 

which there is no practicable alternative; and 

‘‘(ii) is in the public interest. 

‘‘(2) CONSIDERATION.— 

‘‘(A) TERMINATION.—As consideration for termination 

of an easement and associated agreements under paragraph (1), the Secretary shall enter into compensatory arVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00110 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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rangements as determined to be appropriate by the Secretary. 

‘‘(B) MODIFICATION.—In the case of a modification 

under paragraph (1)— 

‘‘(i) as a condition of the modification, the current 

owner shall enter into a compensatory arrangement 

(as determined to be appropriate by the Secretary) to 

incur the costs of modification; and 

‘‘(ii) the Secretary shall ensure that— 

‘‘(I) the modification will not adversely affect 

the floodplain functions and values for which the 

easement was acquired; 

‘‘(II) any adverse impacts will be mitigated by 

enrollment and restoration of other land that provides greater floodplain functions and values at no 

additional cost to the Federal Government; and 

‘‘(III) the modification will result in equal or 

greater environmental and economic values to the 

United States.’’. 

SEC. 2507. TERMINAL LAKES. 

Section 2507 of the Farm Security and Rural Investment Act 

of 2002 (43 U.S.C. 2211 note; Public Law 107–171) is amended to 

read as follows: 

‘‘SEC. 2507. TERMINAL LAKES ASSISTANCE. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) ELIGIBLE LAND.—The term ‘eligible land’ means privately owned agricultural land (including land in which a State 

has a property interest as a result of State water law)— 

‘‘(A) that a landowner voluntarily agrees to sell to a 

State; and 

‘‘(B) which— 

‘‘(i)(I) is ineligible for enrollment as a wetland reserve easement established under the agricultural conservation easement program under subtitle H of the 

Food Security Act of 1985; 

‘‘(II) is flooded to— 

‘‘(aa) an average depth of at least 6.5 feet; or 

‘‘(bb) a level below which the State determines 

the management of the water level is beyond the 

control of the State or landowner; or 

‘‘(III) is inaccessible for agricultural use due to the 

flooding of adjoining property (such as islands of agricultural land created by flooding); 

‘‘(ii) is located within a watershed with water 

rights available for lease or purchase; and 

‘‘(iii) has been used during at least 5 of the immediately preceding 30 years— 

‘‘(I) to produce crops or hay; or 

‘‘(II) as livestock pasture or grazing. 

‘‘(2) PROGRAM.—The term ‘program’ means the voluntary 

land purchase program established under this section. 

‘‘(3) TERMINAL LAKE.—The term ‘terminal lake’ means a 

lake and its associated riparian and watershed resources that 

is— 


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‘‘(A) considered flooded because there is no natural 

outlet for water accumulating in the lake or the associated 

riparian area such that the watershed and surrounding 

land is consistently flooded; or 

‘‘(B) considered terminal because it has no natural outlet and is at risk due to a history of consistent Federal assistance to address critical resource conditions, including 

insufficient water available to meet the needs of the lake, 

general uses, and water rights. 

‘‘(b) ASSISTANCE.—The Secretary shall— 

‘‘(1) provide grants under subsection (c) for the purchase of 

eligible land impacted by a terminal lake described in subsection (a)(3)(A); and 

‘‘(2) provide funds to the Secretary of the Interior pursuant 

to subsection (e)(2) with assistance in accordance with subsection (d) for terminal lakes described in subsection (a)(3)(B). 

‘‘(c) LAND PURCHASE GRANTS.— 

‘‘(1) IN GENERAL.—Using funds provided under subsection 

(e)(1), the Secretary shall make available land purchase grants 

to States for the purchase of eligible land in accordance with 

this subsection. 

‘‘(2) IMPLEMENTATION.— ‘‘(A) AMOUNT.—A land purchase grant shall be in an 

amount not to exceed the lesser of— 

‘‘(i) 50 percent of the total purchase price per acre 

of the eligible land; or 

‘‘(ii)(I) in the case of eligible land that was used to produce crops or hay, $400 per acre; and 

‘‘(II) in the case of eligible land that was pasture or grazing land, $200 per acre. 

‘‘(B) DETERMINATION OF PURCHASE PRICE.—A State 

purchasing eligible land with a land purchase grant shall 

ensure, to the maximum extent practicable, that the purchase price of such land reflects the value, if any, of other 

encumbrances on the eligible land to be purchased, including easements and mineral rights. 

‘‘(C) COST-SHARE REQUIRED.—To be eligible to receive 

a land purchase grant, a State shall provide matching nonFederal funds in an amount equal to 50 percent of the 

amount described in subparagraph (A), including additional non-Federal funds. 

‘‘(D) CONDITIONS.—To receive a land purchase grant, a 

State shall agree— 

‘‘(i) to ensure that any eligible land purchased is— 

‘‘(I) conveyed in fee simple to the State; and 

‘‘(II) free from mortgages or other liens at the 

time title is transferred; 

‘‘(ii) to maintain ownership of the eligible land in 

perpetuity; 

‘‘(iii) to pay (from funds other than grant dollars 

awarded) any costs associated with the purchase of eligible land under this section, including surveys and 

legal fees; and 

‘‘(iv) to keep eligible land in a conserving use, as 

defined by the Secretary. 


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gible land under this section, including surveys and 

legal fees; and 

‘‘(iv) to keep eligible land in a conserving use, as 

defined by the Secretary. 

‘‘(E) LOSS OF FEDERAL BENEFITS.—Eligible land purchased with a grant under this section shall lose eligibility 

for any benefits under other Federal programs, including— 

‘‘(i) benefits under title XII of the Food Security 

Act of 1985 (16 U.S.C. 3801 et seq.); 

‘‘(ii) benefits under the Federal Crop Insurance 

Act (7 U.S.C. 1501 et seq.); and 

‘‘(iii) covered benefits described in section 

1001D(b) of the Food Security Act of 1985 (7 U.S.C. 

1308–3a). 

‘‘(F) PROHIBITION.—Any Federal rights or benefits associated with eligible land prior to purchase by a State 

may not be transferred to any other land or person in anticipation of or as a result of such purchase. 

‘‘(d) WATER ASSISTANCE.— 

‘‘(1) IN GENERAL.—The Secretary of the Interior, acting 

through the Commissioner of Reclamation, may use the funds 

described in subsection (e)(2) to administer and provide financial assistance to carry out this subsection to provide water 

and assistance to a terminal lake described in subsection 

(a)(3)(B) through willing sellers or willing participants only— 

‘‘(A) to lease water; 

‘‘(B) to purchase land, water appurtenant to the land, 

and related interests; and 

‘‘(C) to carry out research, support, and conservation 

activities for associated fish, wildlife, plant, and habitat resources. 

‘‘(2) EXCLUSIONS.—The Secretary of the Interior may not 

use this subsection to deliver assistance to the Great Salt Lake 

in Utah, lakes that are considered dry lakes, or other lakes 

that do not meet the purposes of this section, as determined by 

the Secretary of the Interior. 

‘‘(3) TRANSITIONAL PROVISION.— 

‘‘(A) IN GENERAL.—Notwithstanding any other provision of this section, any funds made available before the 

date of enactment of the Agricultural Act of 2014 under a 

provision of law described in subparagraph (B) shall remain available using the provisions of law (including regulations) in effect on the day before the date of enactment 

of that Act. 

‘‘(B) DESCRIBED LAWS.—The provisions of law described in this section are— 

‘‘(i) section 2507 of the Farm Security and Rural 

Investment Act of 2002 (43 U.S.C. 2211 note; Public 

Law 107–171) (as in effect on the day before the date 

of enactment of the Agricultural Act of 2014); 

‘‘(ii) section 207 of the Energy and Water Development Appropriations Act, 2003 (Public Law 108–7; 117 

Stat. 146); 


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‘‘(iii) section 208 of the Energy and Water Development Appropriations Act, 2006 (Public Law 109– 

103; 119 Stat. 2268, 123 Stat. 2856); and 

‘‘(iv) section 208 of the Energy and Water Development and Related Agencies Appropriations Act, 2010 

(Public Law 111–85; 123 Stat. 2858, 123 Stat. 2967, 

125 Stat. 867). 

‘‘(e) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to the Secretary to carry out subsection 

(c) $25,000,000, to remain available until expended. 

‘‘(2) COMMODITY CREDIT CORPORATION.—As soon as practicable after the date of enactment of the Agricultural Act of 

2014, the Secretary shall transfer to the ‘Bureau of Reclamation—Water and Related Resources’ account $150,000,000 from 

the funds of the Commodity Credit Corporation to carry out 

subsection (d), to remain available until expended.’’. 

SEC. 2508. SOIL AND WATER RESOURCES CONSERVATION. 

(a) CONGRESSIONAL POLICY AND DECLARATION OF PURPOSE.— 

Section 4 of the Soil and Water Resources Conservation Act of 1977 

(16 U.S.C. 2003) is amended— 

(1) in subsection (b), by inserting ‘‘and tribal’’ after ‘‘State’’ 

each place it appears; and 

(2) in subsection (c)(2), by inserting ‘‘, tribal,’’ after ‘‘State’’. 

(b) CONTINUING APPRAISAL OF SOIL, WATER, AND RELATED RESOURCES.—Section 5 of the Soil and Water Resources Conservation 

Act of 1977 (16 U.S.C. 2004) is amended— 

(1) in subsection (a)(4), by striking ‘‘and State’’ and inserting ‘‘, State, and tribal’’; 

(2) in subsection (b), by inserting ‘‘, tribal’’ after ‘‘State’’ 

each place it appears; and 

(3) in subsection (c)— 

(A) by striking ‘‘State soil’’ and inserting ‘‘State and 

tribal soil’’; and 

(B) by striking ‘‘local’’ and inserting ‘‘local, tribal,’’. 

(c) SOIL AND WATER CONSERVATION PROGRAM.—Section 6(a) of 

the Soil and Water Resources Conservation Act of 1977 (16 U.S.C. 

2005(a)) is amended— 

(1) by inserting ‘‘, tribal,’’ after ‘‘State’’ the first place it appears; 

(2) by inserting ‘‘, tribal’’ after ‘‘State’’ each other place it 

appears; and 

(3) by inserting ‘‘, tribal,’’ after ‘‘private’’. 

(d) UTILIZATION OF AVAILABLE INFORMATION AND DATA.—Section 9 of the Soil and Water Resources Conservation Act of 1977 

(16 U.S.C. 2008) is amended by inserting ‘‘, tribal’’ after ‘‘State’’. 

Subtitle G—Funding and Administration 

SEC. 2601. FUNDING. 

(a) IN GENERAL.—Section 1241 of the Food Security Act of 1985 

(16 U.S.C. 3841) is amended by striking subsection (a) and inserting the following: 

‘‘(a) ANNUAL FUNDING.—For each of fiscal years 2014 through 

2018, the Secretary shall use the funds, facilities, and authorities 


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of the Commodity Credit Corporation to carry out the following 

programs under this title (including the provision of technical assistance): 

‘‘(1) The conservation reserve program under subchapter B 

of chapter 1 of subtitle D, including, to the maximum extent 

practicable— 

‘‘(A) $10,000,000 for the period of fiscal years 2014 

through 2018 to provide payments under section 1234(c); 

and 

‘‘(B) $33,000,000 for the period of fiscal years 2014 

through 2018 to carry out section 1235(f) to facilitate the 

transfer of land subject to contracts from retired or retiring owners and operators to beginning farmers or ranchers 

and socially disadvantaged farmers or ranchers. 

‘‘(2) The agricultural conservation easement program 

under subtitle H using to the maximum extent practicable— 

‘‘(A) $400,000,000 for fiscal year 2014; 

‘‘(B) $425,000,000 for fiscal year 2015; 

‘‘(C) $450,000,000 for fiscal year 2016; 

‘‘(D) $500,000,000 for fiscal year 2017; and 

‘‘(E) $250,000,000 for fiscal year 2018. 

‘‘(3) The conservation security program under subchapter 

A of chapter 2 of subtitle D, using such sums as are necessary 

to administer contracts entered into before September 30, 

2008. 

‘‘(4) The conservation stewardship program under subchapter B of chapter 2 of subtitle D. 

‘‘(5) The environmental quality incentives program under 

chapter 4 of subtitle D, using, to the maximum extent practicable— 

‘‘(A) $1,350,000,000 for fiscal year 2014; 

‘‘(B) $1,600,000,000 for fiscal year 2015; 

‘‘(C) $1,650,000,000 for fiscal year 2016; 

‘‘(D) $1,650,000,000 for fiscal year 2017; and 

‘‘(E) $1,750,000,000 for fiscal year 2018.’’. 

(b) GUARANTEED AVAILABILITY OF FUNDS.—Section 1241 of the 

Food Security Act of 1985 (16 U.S.C. 3841) is amended— 

(1) by redesignating subsections (b) through (h) as subsections (c) through (i), respectively; 

(2) by inserting after subsection (a) the following: 

‘‘(b) AVAILABILITY OF FUNDS.—Amounts made available by subsection (a) for fiscal years 2014 through 2018 shall be used by the 

Secretary to carry out the programs specified in such subsection 

and shall remain available until expended.’’; and 

(3) in subsection (d) (as redesignated by paragraph (1)), by 

striking ‘‘subsection (b)’’ and inserting ‘‘subsection (c)’’. 

SEC. 2602. TECHNICAL ASSISTANCE. 

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

is amended by striking subsection (c) (as redesignated by section 

2601(b)(1)) and inserting the following: 

‘‘(c) TECHNICAL ASSISTANCE.— 

‘‘(1) AVAILABILITY.—Commodity Credit Corporation funds 

made available for a fiscal year for each of the programs specified in subsection (a)— 


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‘‘(A) shall be available for the provision of technical assistance for the programs for which funds are made available as necessary to implement the programs effectively; 

‘‘(B) except for technical assistance for the conservation reserve program under subchapter B of chapter 1 of 

subtitle D, shall be apportioned for the provision of technical assistance in the amount determined by the Secretary, at the sole discretion of the Secretary; and 

‘‘(C) shall not be available for the provision of technical assistance for conservation programs specified in subsection (a) other than the program for which the funds 

were made available. 

‘‘(2) PRIORITY.— 

‘‘(A) IN GENERAL.—In the delivery of technical assistance under the Soil Conservation and Domestic Allotment 

Act (16 U.S.C. 590a et seq.), the Secretary shall give priority to producers who request technical assistance from 

the Secretary in order to comply for the first time with the 

requirements of subtitle B and subtitle C of this title as a 

result of the amendments made by section 2611 of the Agricultural Act of 2014. 

‘‘(B) REPORT.—Not later than 270 days after the date 

of enactment of the Agricultural Act of 2014, the Secretary 

shall submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report regarding the 

extent to which the conservation compliance requirements 

contained in the amendments made by section 2611 of the 

Agricultural Act of 2014 apply to and impact specialty crop 

growers, including national analysis and surveys to determine the extent of specialty crop acreage that includes 

highly erodible land and wetlands. 

‘‘(3) REPORT.—Not later than December 31, 2014, the Secretary shall submit (and update as necessary in subsequent 

years) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and 

Forestry of the Senate a report— 

‘‘(A) detailing the amount of technical assistance funds 

requested and apportioned in each program specified in 

subsection (a) during the preceding fiscal year; and 

‘‘(B) any other data relating to this provision that 

would be helpful to such Committees. 

‘‘(4) COMPLIANCE REPORT.—Not later than November 1 of 

each year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report 

that includes— 

‘‘(A) a description of the extent to which the requests 

for highly erodible land conservation and wetland compliance determinations are being addressed in a timely manner; 

‘‘(B) the total number of requests completed in the previous fiscal year; 

‘‘(C) the incomplete determinations on record; and 


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‘‘(D) the number of requests that are still outstanding 

more than 1 year since the date on which the requests 

were received from the producer.’’. 

SEC. 2603. REGIONAL EQUITY. 

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

is amended by striking subsection (e) (as redesignated by section 

2601(b)(1)) and inserting the following: 

‘‘(e) REGIONAL EQUITY.— 

‘‘(1) EQUITABLE DISTRIBUTION.—When determining funding 

allocations each fiscal year, the Secretary shall, after considering available funding and program demand in each State, 

provide a distribution of funds for conservation programs 

under subtitle D (excluding the conservation reserve program 

under subchapter B of chapter 1), subtitle H, and subtitle I to 

ensure equitable program participation proportional to historical funding allocations and usage by all States. 

‘‘(2) MINIMUM PERCENTAGE.—In determining the specific 

funding allocations under paragraph (1), the Secretary shall— 

‘‘(A) ensure that during the first quarter of each fiscal 

year each State has the opportunity to establish that the 

State can use an aggregate allocation amount of at least 

0.6 percent of the funds made available for those conservation programs; and 

‘‘(B) for each State that can so establish, provide an 

aggregate amount of at least 0.6 percent of the funds made 

available for those conservation programs.’’. 

SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSISTANCE TO CERTAIN FARMERS OR RANCHERS FOR CONSERVATION ACCESS. 

Subsection (h) of section 1241 of the Food Security Act of 1985 

(16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended— 

(1) in paragraph (1) by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(4) PREFERENCE.—In providing assistance under paragraph (1), the Secretary shall give preference to a veteran 

farmer or rancher (as defined in section 2501(e) of the Food, 

Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

2279(e))) that qualifies under subparagraph (A) or (B) of paragraph (1).’’. 

SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS AND ASSISTANCE. 

Subsection (i) of section 1241 of the Food Security Act of 1985 

(16 U.S.C. 3841) (as redesignated by section 2601(b)(1)) is amended— 

(1) in paragraph (1), by striking ‘‘wetlands reserve program’’ and inserting ‘‘agricultural conservation easement program’’; 

(2) by striking paragraphs (2) and (3) and redesignating 

paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), respectively; 

(3) in paragraph (3) (as so redesignated)— 


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(A) by striking ‘‘agricultural water enhancement program’’ and inserting ‘‘regional conservation partnership 

program’’; and 

(B) by striking ‘‘1240I(g)’’ and inserting ‘‘1271C(c)(3)’’; 

and 

(4) by adding at the end the following: 

‘‘(5) Payments made under the conservation stewardship 

program. 

‘‘(6) Exceptions provided by the Secretary under section 

1265B(b)(2)(C).’’. 

SEC. 2606. ADMINISTRATIVE REQUIREMENTS APPLICABLE TO ALL 

CONSERVATION PROGRAMS. 

Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) 

is amended— 

(1) in subsection (a)(2), by adding at the end the following 

new subparagraph: 

‘‘(E) Veteran farmers or ranchers (as defined in section 

2501(e) of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279(e))).’’; 

(2) in subsection (d), by inserting ‘‘, H, and I’’ before the 

period at the end; 

(3) in subsection (f)— 

(A) in paragraph (1)(B), by striking ‘‘country’’ and inserting ‘‘county’’; and 

(B) in paragraph (3), by striking ‘‘subsection (c)(2)(B) 

or (f)(4)’’ and inserting ‘‘subsection (d)(2)(A)(ii) or (g)(2)’’; 

(4) in subsection (h)(2), by inserting ‘‘, including, to the extent practicable, practices that maximize benefits for honey 

bees’’ after ‘‘pollinators’’; and 

(5) by adding at the end the following new subsections: 

‘‘(j) IMPROVED ADMINISTRATIVE EFFICIENCY AND EFFECTIVE- NESS.—In administrating a conservation program under this title, 

the Secretary shall, to the maximum extent practicable— 

‘‘(1) seek to reduce administrative burdens and costs to 

producers by streamlining conservation planning and program 

resources; and 

‘‘(2) take advantage of new technologies to enhance efficiency and effectiveness. 

‘‘(k) RELATION TO OTHER PAYMENTS.—Any payment received by 

an owner or operator under this title, including an easement payment or rental payment, shall be in addition to, and not affect, the 

total amount of payments that the owner or operator is otherwise 

eligible to receive under any of the following: 

‘‘(1) This Act. 

‘‘(2) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). 

‘‘(3) The Agricultural Act of 2014. 

‘‘(4) Any law that succeeds a law specified in paragraph 

(1), (2), or (3). 

‘‘(l) FUNDING FOR INDIAN TRIBES.—In carrying out the conservation stewardship program under subchapter B of chapter 2 of 

subtitle D and the environmental quality incentives program under 

chapter 4 of subtitle D, the Secretary may enter into alternative 

funding arrangements with Indian tribes if the Secretary determines that the goals and objectives of the programs will be met by 

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tracts with individual producers will not be exceeded by any tribal 

member.’’. 

SEC. 2607. STANDARDS FOR STATE TECHNICAL COMMITTEES. 

Section 1261(b) of the Food Security Act of 1985 (16 U.S.C. 

3861(b)) is amended by striking ‘‘Not later than 180 days after the 

date of enactment of the Food, Conservation, and Energy Act of 

2008, the Secretary shall develop’’ and inserting ‘‘The Secretary 

shall review and update as necessary’’. 

SEC. 2608. RULEMAKING AUTHORITY. 

Subtitle E of title XII of the Food Security Act of 1985 (16 

U.S.C. 3841 et seq.) is amended by adding at the end the following 

new section: 

‘‘SEC. 1246. REGULATIONS. 

‘‘(a) IN GENERAL.—The Secretary shall promulgate such regulations as are necessary to implement programs under this title, including such regulations as the Secretary determines to be necessary to ensure a fair and reasonable application of the limitations 

established under section 1244(f). 

‘‘(b) RULEMAKING PROCEDURE.—The promulgation of regulations and administration of programs under this title— 

‘‘(1) shall be carried out without regard to chapter 35 of 

title 44, United States Code (commonly known as the Paperwork Reduction Act); and 

‘‘(2) shall be made as an interim rule effective on publication with an opportunity for notice and comment. 

‘‘(c) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.—In promulgating regulations under this section, the Secretary shall use 

the authority provided under section 808 of title 5, United States 

Code.’’. 

SEC. 2609. WETLANDS MITIGATION. 

Section 1222(k) of the Food Security Act of 1985 (16 U.S.C. 

3822(k)) is amended to read as follows: 

‘‘(k) MITIGATION BANKING.— 

‘‘(1) MITIGATION BANKING PROGRAM.— 

‘‘(A) IN GENERAL.—Using authorities available to the 

Secretary, the Secretary shall operate a program or work 

with third parties to establish mitigation banks to assist 

persons in complying with the provisions of this section 

while mitigating any loss of wetland values and functions. 

‘‘(B) FUNDING.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall use $10,000,000, to remain available until expended, to carry out this paragraph. 

‘‘(2) APPLICABILITY.—Subsection (f)(2)(C) shall not apply to 

this subsection. 

‘‘(3) POLICY AND CRITERIA.—The Secretary shall develop 

the appropriate policy and criteria that will allow willing persons to access existing mitigation banks, under this section or 

any other authority, that will serve the purposes of this section 

without requiring the Secretary to hold an easement, in whole 

or in part, in a mitigation bank.’’. 


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SEC. 2610. LESSER PRAIRIE-CHICKEN CONSERVATION REPORT. 

(a) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Secretary of Agriculture shall submit to 

the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the results of a review and analysis of each 

of the activities (including those administered by the Secretary) 

that pertain to the conservation of the lesser prairie-chicken, including the conservation reserve program, the environmental quality incentives program, the Lesser Prairie-Chicken Initiative, the 

Western Association of Fish and Wildlife Agencies Candidate Conservation Agreement with Assurances for Oil and Gas, and the 

Western Association of Fish and Wildlife Agencies Lesser PrairieChicken Range-Wide Conservation Plan. 

(b) CONTENTS.—The Secretary shall include in the report required by this section, at a minimum— 

(1) with respect to each activity described in subsection (a) 

as it relates to the conservation of the lesser prairie-chicken, 

findings regarding— 

(A) the cost of the activity to the Federal Government, 

impacted State governments, and the private sector; 

(B) the conservation effectiveness of the activity; and 

(C) the cost effectiveness of the activity; and 

(2) a ranking of the activities described in subsection (a) 

based on their relative cost effectiveness. 

SEC. 2611. HIGHLY ERODIBLE LAND AND WETLAND CONSERVATION 

FOR CROP INSURANCE. 

(a) HIGHLY ERODIBLE LAND PROGRAM INELIGIBILITY.— (1) IN GENERAL.—Section 1211(a)(1) of the Food Security 

Act of 1985 (16 U.S.C. 3811(a)(1)) is amended— 

(A) in subparagraph (C), by striking ‘‘or’’ at the end; 

(B) in subparagraph (D), by adding ‘‘or’’ at the end; 

and 

(C) by adding at the end the following: 

‘‘(E) any portion of the premium paid by the Federal 

Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 

et seq.), on the condition that if a person is determined to 

have committed a violation under this subsection during a 

crop year, ineligibility under this subparagraph shall— 

‘‘(i) only apply to reinsurance years subsequent to 

the date of final determination of a violation, including 

all administrative appeals; and 

‘‘(ii) not apply to the existing reinsurance year or 

any reinsurance year prior to the date of final determination;’’. 

(2) EXEMPTIONS.—Section 1212(a)(2) of the Food Security 

Act of 1985 (16 U.S.C. 3812(a)(2)) is amended— 

(A) in the first sentence, by striking ‘‘(2) If,’’ and inserting the following: 

‘‘(2) ELIGIBILITY BASED ON COMPLIANCE WITH CONSERVATION PLAN.— 

‘‘(A) IN GENERAL.—If,’’; 

(B) in the second sentence, by striking ‘‘In carrying’’ 

and inserting the following: 


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‘‘(B) MINIMIZATION OF DOCUMENTATION.—In carrying’’; 

and 

(C) by adding at the end the following: 

‘‘(C) CROP INSURANCE.— ‘‘(i) OPERATIONS NEW TO COMPLIANCE.—Notwithstanding section 1211(a), in the case of a person that 

is subject to section 1211 for the first time solely due 

to the amendment made by section 2611(a) of the Agricultural Act of 2014, any person who produces an agricultural commodity on the land that is the basis of 

the payments described in section 1211(a)(1)(E) shall 

have 5 reinsurance years after the date on which such 

payments become subject to section 1211 to develop 

and comply with an approved conservation plan so as 

to maintain eligibility for such payments. 

‘‘(ii) EXISTING OPERATIONS WITH PRIOR VIOLATIONS.—Notwithstanding section 1211(a), in the case 

of a person that the Secretary determines would have 

been in violation of section 1211(a) if the person had 

continued participation in the programs requiring 

compliance at any time after the date of enactment of 

the Agricultural Act of 2014 and is currently in violation of section 1211(a), the person shall have 2 reinsurance years after the date on which the payments 

described in section 1211(a)(1)(E) become subject to 

section 1211 to develop and comply with an approved 

conservation plan, as determined by the Secretary, so 

as to maintain eligibility for such payments. 

‘‘(iii) APPLICABLE REINSURANCE YEAR.—Ineligibility 

for the payment described in section 1211(a)(1)(E) for 

a violation under this subparagraph during a crop 

year shall— 

‘‘(I) only apply to reinsurance years subsequent to the date of a final determination of a violation, including all administrative appeals; and 

‘‘(II) not apply to the existing reinsurance 

year or any reinsurance year prior to the date of 

the final determination.’’. 

(3) CROP INSURANCE PREMIUM ASSISTANCE.—Section 

1213(d) of the Food Security Act of 1985 (16 U.S.C. 3812a(d)) 

is amended by adding at the end the following: 

‘‘(4) CROP INSURANCE PREMIUM ASSISTANCE.—For the purpose of determining the eligibility of a person for the payment 

described in section 1211(a)(1)(E), the Secretary shall apply the 

procedures described in section 1221(c)(3)(E) and coordinate 

the certification process so as to avoid duplication or unnecessary paperwork.’’. 

(b) WETLAND CONSERVATION PROGRAM INELIGIBILITY.—Section 

1221 of the Food Security Act of 1985 (16 U.S.C. 3821) is amended— 

(1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and 

(2) by inserting after subsection (b) the following: 

‘‘(c) INELIGIBILITY FOR CROP INSURANCE PREMIUM ASSISTANCE.— 


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‘‘(1) REQUIREMENTS.— ‘‘(A) IN GENERAL.—If a person is determined to have 

committed a violation under subsection (a) or (d) during a 

crop year, the person shall be ineligible to receive any payment of any portion of premium paid by the Federal Crop 

Insurance Corporation for a plan or policy of insurance 

under the Federal Crop Insurance Act (7 U.S.C. 1501 et 

seq.) pursuant to this subsection. 

‘‘(B) APPLICABILITY.—Ineligibility under this subsection shall— 

‘‘(i) only apply to reinsurance years subsequent to 

the date of a final determination of a violation, including all administrative appeals; and 

‘‘(ii) not apply to the existing reinsurance year or 

any reinsurance year prior to the date of the final determination. 

‘‘(2) CONVERSIONS.— 

‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), ineligibility for crop insurance premium assistance shall 

apply in accordance with this paragraph. 

‘‘(B) NEW CONVERSIONS.—In the case of a wetland that 

the Secretary determines was converted after the date of 

enactment of the Agricultural Act of 2014— 

‘‘(i) the person shall be ineligible to receive crop 

insurance premium subsidies in subsequent reinsurance years unless the Secretary determines that an 

exemption pursuant to section 1222 applies; or 

‘‘(ii) for any violation that the Secretary determines impacts less than 5 acres of an entire farm, the 

person may pay a contribution in an amount equal to 

150 percent of the cost of mitigation, as determined by 

the Secretary, to the fund described in section 1241(f) 

for wetland restoration in lieu of ineligibility to receive 

crop insurance premium assistance. 

‘‘(C) PRIOR CONVERSIONS.—In the case of a wetland 

that the Secretary determines was converted prior to the 

date of enactment of the Agricultural Act of 2014, ineligibility under this subsection shall not apply. 

‘‘(D) CONVERSIONS AND NEW POLICIES OR PLANS OF IN- SURANCE.—In the case of an agricultural commodity for 

which an individual policy or plan of insurance is available 

for the first time to the person after the date of enactment 

of the Agricultural Act of 2014— 

‘‘(i) ineligibility shall apply only to conversions 

that take place after the date on which the policy or 

plan of insurance first becomes available to the person; and 

‘‘(ii) the person shall take such steps as the Secretary determines appropriate to mitigate any prior 

conversion in a timely manner but not to exceed 2 reinsurance years. 

‘‘(3) LIMITATIONS.— ‘‘(A) MITIGATION REQUIRED.—Except as otherwise provided in this paragraph, a person subject to a final determination, including all administrative appeals, of a violaVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00122 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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tion described in subsection (d) shall have 1 reinsurance 

year to initiate a mitigation plan to remedy the violation, 

as determined by the Secretary, before becoming ineligible 

under this subsection in the following reinsurance year to 

receive any payment of any portion of the premium paid 

by the Federal Crop Insurance Corporation for a policy or 

plan of insurance under the Federal Crop Insurance Act (7 

U.S.C. 1501 et seq.). 

‘‘(B) PERSONS COVERED FOR THE FIRST TIME.—Notwithstanding the requirements of paragraph (1), in the case of 

a person that is subject to this subsection for the first time 

solely due to the amendment made by section 2611(b) of 

the Agricultural Act of 2014, the person shall have 2 reinsurance years after the reinsurance year in which a final 

determination is made, including all administrative appeals, of a violation described in this subsection to take 

such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with this subsection. 

‘‘(C) GOOD FAITH.—If the Secretary determines that a 

person subject to a final determination, including all administrative appeals, of a violation described in this subsection acted in good faith and without intent to commit 

a violation described in this subsection as described in section 1222(h), the person shall have 2 reinsurance years to 

take such steps as the Secretary determines appropriate to 

remedy or mitigate the violation in accordance with this 

subsection. 

‘‘(D) TENANT RELIEF.— 

‘‘(i) IN GENERAL.—If a tenant is determined to be 

ineligible for payments and other benefits under this 

subsection, the Secretary may limit the ineligibility 

only to the farm that is the basis for the ineligibility 

determination if the tenant has established, to the satisfaction of the Secretary that— 

‘‘(I) the tenant has made a good faith effort to 

meet the requirements of this section, including 

enlisting the assistance of the Secretary to obtain 

a reasonable plan for restoration or mitigation for 

the farm; 

‘‘(II) the landlord on the farm refuses to comply with the plan on the farm; and 

‘‘(III) the Secretary determines that the lack 

of compliance is not a part of a scheme or device 

to avoid the compliance. 

‘‘(ii) REPORT.—The Secretary shall submit to the 

Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate an annual report concerning the ineligibility determinations limited during 

the previous 12-month period under this subparagraph. 

‘‘(E) CERTIFICATE OF COMPLIANCE.— 

‘‘(i) IN GENERAL.—Beginning with the first full reinsurance year immediately following the date of enVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00123 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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actment of this paragraph, all persons seeking eligibility for the payment of a portion of the premium 

paid by the Federal Crop Insurance Corporation for a 

policy or plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) shall provide certification of compliance with this section as determined by the Secretary. 

‘‘(ii) TIMELY EVALUATION.—The Secretary shall 

evaluate the certification in a timely manner and— 

‘‘(I) a person who has properly complied with 

certification shall be held harmless with regard to 

eligibility during the period of evaluation; and 

‘‘(II) if the Secretary fails to evaluate the certification in a timely manner and the person is 

subsequently found to be in violation of this subsection, ineligibility shall not apply to the person 

for that violation. 

‘‘(iii) EQUITABLE CONTRIBUTION.— 

‘‘(I) IN GENERAL.—If a person fails to notify 

the Secretary as required and is subsequently 

found to be in violation of this subsection, the Secretary shall— 

‘‘(aa) determine the amount of an equitable contribution to conservation by the person for the violation; and 

‘‘(bb) deposit the contribution in the fund 

described in section 1241(f). 

‘‘(II) LIMITATION.—The contribution shall not 

exceed the total of the portion of the premium 

paid by the Federal Crop Insurance Corporation 

for a policy or plan of insurance for all years the 

person is determined to have been in violation 

subsequent to the date on which certification was 

first required under this subparagraph. 

‘‘(4) DUTIES OF THE SECRETARY.— 

‘‘(A) IN GENERAL.—In carrying out this subsection, the 

Secretary shall use existing processes and procedures for 

certifying compliance. 

‘‘(B) RESPONSIBILITY.—The Secretary, acting through 

the agencies of the Department of Agriculture, shall be 

solely responsible for determining whether a producer is 

eligible to receive crop insurance premium subsidies in accordance with this subsection. 

‘‘(C) LIMITATION.—The Secretary shall ensure that no 

agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears 

responsibility or liability for the eligibility of an insured 

producer under this subsection, other than in cases of misrepresentation, fraud, or scheme and device.’’. 


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Subtitle H—Repeal of Superseded Program Authorities and 

Transitional Provisions; Technical Amendments 

SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM. 

Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) 

is repealed. 

SEC. 2702. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), section 

1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) is repealed. 

(b) TRANSITIONAL PROVISIONS.— 

(1) EFFECT ON EXISTING CONTRACTS AND AGREEMENTS.— 

The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the 

Secretary of Agriculture under section 1231A of the Food Security Act of 1985 (16 U.S.C. 3831a) before the date of enactment 

of the Agricultural Act of 2014, or any payments required to 

be made in connection with the contract or agreement. 

(2) FUNDING.—The Secretary may use funds made available to carry out the conservation reserve program 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.) to continue to carry 

out contracts or agreements referred to in paragraph (1) using 

the provisions of law and regulation applicable to such contracts or agreements as in existence on the day before the date 

of enactment of the Agricultural Act of 2014. 

SEC. 2703. WETLANDS RESERVE PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), 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.) is repealed. 

(b) TRANSITIONAL PROVISIONS.— 

(1) EFFECT ON EXISTING CONTRACTS, AGREEMENTS, AND

EASEMENTS.—The amendment made by this section shall not 

affect the validity or terms of any contract, agreement, or easement entered into by the Secretary of Agriculture 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.) before the date of 

enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the contract, agreement, 

or easement. 

(2) FUNDING.— 

(A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of 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.), any funds made available from the Commodity Credit Corporation to carry out the wetlands reserve program 

under that subchapter for fiscal years 2009 through 2013 

shall be made available to carry out contracts, agreements, 

or easements referred to in paragraph (1) that were entered into prior to the date of enactment of the Agricultural Act of 2014 (including the provision of technical assistance), provided that no such contract, agreement, or 


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easement is modified so as to increase the amount of the 

payment received. 

(B) OTHER.—The Secretary may use funds made available to carry out the agricultural conservation easement 

program under subtitle H of title XII of the Food Security 

Act of 1985, as added by section 2301, to continue to carry 

out contracts, agreements, and easements referred to in 

paragraph (1) using the provisions of law and regulation 

applicable to such contracts, agreements, and easements 

as in existence on the day before the date of enactment of 

the Agricultural Act of 2014. 

SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM VIABILITY 

PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), subchapter 

C of chapter 2 of subtitle D of title XII of the Food Security Act 

of 1985 (16 U.S.C. 3838h et seq.) is repealed. 

(b) TRANSITIONAL PROVISIONS.— 

(1) EFFECT ON EXISTING AGREEMENTS AND EASEMENTS.— 

The amendment made by this section shall not affect the validity or terms of any agreement or easement entered into by the 

Secretary of Agriculture under subchapter C of chapter 2 of 

subtitle D of title XII of the Food Security Act of 1985 (16 

U.S.C. 3838h et seq.) before the date of enactment of the Agricultural Act of 2014, or any payments required to be made in 

connection with the agreement or easement. 

(2) FUNDING.— 

(A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of subchapter C of chapter 2 of subtitle D of title 

XII of the Food Security Act of 1985 (16 U.S.C. 3838h et 

seq.), any funds made available from the Commodity Credit Corporation to carry out the farmland protection program under that subchapter for fiscal years 2009 through 

2013 shall be made available to carry out agreements and 

easements referred to in paragraph (1) that were entered 

into prior to the date of enactment of the Agricultural Act 

of 2014 (including the provision of technical assistance). 

(B) OTHER.—On exhaustion of funds made available 

under subparagraph (A), the Secretary may use funds 

made available to carry out the agricultural conservation 

easement program under subtitle H of title XII of the Food 

Security Act of 1985, as added by section 2301, to continue 

to carry out agreements and easements referred to in paragraph (1) using the provisions of law and regulation applicable to such agreements and easements as in existence on 

the day before the date of enactment of the Agricultural 

Act of 2014. 

SEC. 2705. GRASSLAND RESERVE PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), subchapter 

D of chapter 2 of subtitle D of title XII of the Food Security Act 

of 1985 (16 U.S.C. 3838n et seq.) is repealed. 

(b) TRANSITIONAL PROVISIONS.— (1) EFFECT ON EXISTING CONTRACTS, AGREEMENTS, AND

EASEMENTS.—The amendment made by this section shall not 

affect the validity or terms of any contract, agreement, or easeVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00126 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ment entered into by the Secretary of Agriculture under subchapter D of chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et seq.) before the date of 

enactment of the Agricultural Act of 2014, or any payments required to be made in connection with the contract, agreement, 

or easement. 

(2) FUNDING.— (A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of subchapter D of chapter 2 of subtitle D of title 

XII of the Food Security Act of 1985 (16 U.S.C. 3838n et 

seq.), any funds made available from the Commodity Credit Corporation to carry out the grassland reserve program 

under that subchapter for fiscal years 2009 through 2013 

shall be made available to carry out contracts, agreements, 

or easements referred to in paragraph (1) that were entered into prior to the date of enactment of the Agricultural Act of 2014 (including the provision of technical assistance), provided that no such contract, agreement, or 

easement is modified so as to increase the amount of the 

payment received. 

(B) OTHER.—The Secretary may use funds made available to carry out the agricultural conservation easement 

program under subtitle H of title XII of the Food Security 

Act of 1985, as added by section 2301, to continue to carry 

out contracts, agreements, and easements referred to in 

paragraph (1) using the provisions of law and regulation 

applicable to such contracts, agreements, and easements 

as in existence on the day before the date of enactment of 

the Agricultural Act of 2014. 

SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), section 

1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) is repealed. 

(b) TRANSITIONAL PROVISIONS.— (1) EFFECT ON EXISTING CONTRACTS AND AGREEMENTS.— The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the 

Secretary of Agriculture under section 1240I of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) before the date of enactment of the Agricultural Act of 2014, or any payments required 

to be made in connection with the contract or agreement. 

(2) FUNDING.— 

(A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of section 1240I of the Food Security Act of 1985 (16 

U.S.C. 3839aa–9), any funds made available from the 

Commodity Credit Corporation to carry out the agricultural water enhancement program under that section for 

fiscal years 2009 through 2013 shall be made available to 

carry out contracts and agreements referred to in paragraph (1) that were entered into prior to the date of enactment of the Agricultural Act of 2014 (including the provision of technical assistance). 

(B) OTHER.—On exhaustion of funds made available 

under subparagraph (A), the Secretary may use funds 

made available to carry out the regional conservation partVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00127 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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nership program under subtitle I of title XII of the Food 

Security Act of 1985, as added by section 2401, to continue 

to carry out contracts and agreements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts and agreements as in existence on 

the day before the date of enactment of the Agricultural 

Act of 2014. 

SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), section 

1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) is repealed. 

(b) TRANSITIONAL PROVISIONS.— (1) EFFECT ON EXISTING CONTRACTS AND AGREEMENTS.— The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the 

Secretary of Agriculture under section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb–1) before the date of enactment of the Agricultural Act of 2014, or any payments required 

to be made in connection with the contract or agreement. 

(2) FUNDING.— (A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of section 1240N of the Food Security Act of 1985 

(16 U.S.C. 3839bb–1), any funds made available from the 

Commodity Credit Corporation to carry out the wildlife 

habitat incentive program under that section for fiscal 

years 2009 through 2013 shall be made available to carry 

out contracts or agreements referred to in paragraph (1) 

which were entered into prior to the date of enactment of 

the Agricultural Act of 2014 (including the provision of 

technical assistance). 

(B) OTHER.—On exhaustion of funds made available 

under subparagraph (A), the Secretary may use funds 

made available to carry out the environmental quality incentives program under chapter 4 of subtitle D of title XII 

of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 

to continue to carry out contracts or agreements referred 

to in paragraph (1) using the provisions of law and regulation applicable to such contracts or agreements as in existence on the day before the date of enactment of the Agricultural Act of 2014. 

SEC. 2708. GREAT LAKES BASIN PROGRAM. 

Section 1240P of the Food Security Act of 1985 (16 U.S.C. 

3839bb–3) is repealed. 

SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM. 

(a) REPEAL.—Except as provided in subsection (b), section 

1240Q of the Food Security Act of 1985 (16 U.S.C. 3839bb–4) is repealed. 

(b) TRANSITIONAL PROVISIONS.— 

(1) EFFECT ON EXISTING CONTRACTS, AGREEMENTS, AND

EASEMENTS.—The amendment made by this section shall not 

affect the validity or terms of any contract, agreement, or easement entered into by the Secretary of Agriculture under section 1240Q of the Food Security Act of 1985 (16 U.S.C. 

3839bb–4) before the date of enactment of the Agricultural Act 


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of 2014, or any payments required to be made in connection 

with the contract, agreement, or easement. 

(2) FUNDING.— 

(A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of section 1240Q of the Food Security Act of 1985 

(16 U.S.C. 3839bb–4), any funds made available from the 

Commodity Credit Corporation to carry out the Chesapeake Bay watershed program under that section for fiscal 

years 2009 through 2013 shall be made available to carry 

out contracts, agreements, and easements referred to in 

paragraph (1) that were entered into prior to the date of 

enactment of the Agricultural Act of 2014 (including the 

provision of technical assistance). 

(B) OTHER.—The Secretary may use funds made available to carry out the regional conservation partnership 

program under subtitle I of title XII of the Food Security 

Act of 1985, as added by section 2401, to continue to carry 

out contracts, agreements, and easements referred to in 

paragraph (1) using the provisions of law and regulation 

applicable to such contracts, agreements, and easements 

as in existence on the day before the date of enactment of 

the Agricultural Act of 2014. 

SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE. 

(a) REPEAL.—Except as provided in subsection (b), section 1243 

of the Food Security Act of 1985 (16 U.S.C. 3843) is repealed. 

(b) TRANSITIONAL PROVISIONS.— 

(1) EFFECT ON EXISTING CONTRACTS AND AGREEMENTS.— 

The amendment made by this section shall not affect the validity or terms of any contract or agreement entered into by the 

Secretary of Agriculture under section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) before the date of enactment 

of the Agricultural Act of 2014, or any payments required to 

be made in connection with the contract or agreement. 

(2) FUNDING.— 

(A) USE OF PRIOR YEAR FUNDS.—Notwithstanding the 

repeal of section 1243 of the Food Security Act of 1985 (16 

U.S.C. 3843), any funds made available from the Commodity Credit Corporation to carry out the cooperative conservation partnership initiative under that section for fiscal years 2009 through 2013 shall be made available to 

carry out contracts and agreements referred to in paragraph (1) that were entered into prior to the date of enactment of the Agricultural Act of 2014 (including the provision of technical assistance). 

(B) OTHER.—On exhaustion of funds made available 

under subparagraph (A), the Secretary may use funds 

made available to carry out the regional conservation partnership program under subtitle I of title XII of the Food 

Security Act of 1985, as added by section 2401, to continue 

to carry out contracts and agreements referred to in paragraph (1) using the provisions of law and regulation applicable to such contracts and agreements as in existence on 

the day before the date of enactment of the Agricultural 

Act of 2014. 


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SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM. 

Chapter 3 of subtitle D of title XII of the Food Security Act of 

1985 (16 U.S.C. 3839 et seq.) is repealed. 

SEC. 2712. TEMPORARY ADMINISTRATION OF CONSERVATION PROGRAMS. 

(a) APPLICABILITY.—This section is applicable to activities 

under— 

(1) the wetlands reserve program, the farmland protection 

program, and the farm viability program being merged into the 

agricultural conservation easement program under the amendment made by section 2301; 

(2) the wildlife habitat incentive program being merged 

into the environmental quality incentives program under the 

amendments made by subtitle C; 

(3) the agricultural water enhancement program, the 

Chesapeake Bay watershed program, the cooperative conservation partnership initiative, and the Great Lakes basin program 

being merged into the regional conservation partnership program under the amendment made by section 2401; and 

(4) the grassland reserve program being merged into the 

conservation reserve program under the amendments made by 

subtitle A and into the agricultural conservation easement program under the amendment made by section 2301. 

(b) INTERIM ADMINISTRATION.—Subject to subsection (d), with 

respect to the implementation of the agricultural conservation easement program under subtitle H of title XII of the Food Security Act 

of 1985, as added by section 2301, the amendments to the environmental quality incentives program made by subtitle C, the regional 

conservation partnership program under subtitle I of title XII of 

the Food Security Act of 1985, as added by section 2401, and the 

amendments to the conservation reserve program made by subtitle 

A, the Secretary shall use the regulations in existence as of the day 

before the date of enactment of this Act that are applicable to the 

wetlands reserve program, the grassland reserve program, the 

farmland protection program, the farm viability program, the wildlife habitat incentive program, the agricultural water enhancement 

program, the Chesapeake Bay watershed program, the cooperative 

conservation partnership initiative, and the Great Lakes basin program repealed by this subtitle, to the extent that the terms and 

conditions of such regulations are consistent with— 

(1) the provisions of the agricultural conservation easement program and the regional conservation partnership program; and 

(2) the amendments to the environmental quality incentives program and the conservation reserve program made by 

this title. 

(c) FUNDING.—The Secretary may only use funds authorized in 

this title or in the amendments made by this title for the specific 

programs listed in subsection (b), including any restrictions on the 

use of those funds, for the purposes identified in paragraphs (1) 

and (2) of subsection (b). 

(d) TERMINATION OF AUTHORITY.—The authority of the Secretary to carry out subsection (b) shall terminate on the date that 

is 270 days after the date of enactment of this Act. 


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(e) PERMANENT ADMINISTRATION.—Effective beginning on the 

termination date described in subsection (d), the Secretary shall 

provide technical assistance, financial assistance, and easement enrollment in accordance with any final regulations that the Secretary considers necessary to carry out this title and the amendments made by this title. 

SEC. 2713. TECHNICAL AMENDMENTS. 

(a) DEFINITIONS.—Section 1201(a) of the Food Security Act of 

1985 (16 U.S.C. 3801(a)) is amended in the matter preceding paragraph (1) by striking ‘‘E’’ and inserting ‘‘I’’. 

(b) PROGRAM INELIGIBILITY.—Section 1211(a) of the Food Security Act of 1985 (16 U.S.C. 3811(a)) is amended by striking ‘‘predominate’’ each place it appears and inserting ‘‘predominant’’. 

(c) SPECIALTY CROP PRODUCERS.—Section 1242(i) of the Food 

Security Act of 1985 (16 U.S.C. 3842(i)) is amended in the header 

by striking ‘‘SPECIALITY’’ and inserting ‘‘SPECIALTY’’. 

TITLE III—TRADE 

Subtitle A—Food for Peace Act 

SEC. 3001. GENERAL AUTHORITY. 

Section 201 of the Food for Peace Act (7 U.S.C. 1721) is amended— 

(1) in the matter preceding paragraph (1), by inserting ‘‘(to 

be implemented by the Administrator)’’ after ‘‘under this title’’; 

and 

(2) by striking paragraph (7) and the second sentence and 

inserting the following new paragraph: 

‘‘(7) build resilience to mitigate and prevent food crises and 

reduce the future need for emergency aid.’’. 

SEC. 3002. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS THROUGH 

WHICH NONEMERGENCY ASSISTANCE IS PROVIDED. 

Section 202(e) of the Food for Peace Act (7 U.S.C. 1722(e)) is 

amended— 

(1) in paragraph (1)— 

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

striking ‘‘13 percent’’ and inserting ‘‘20 percent’’; 

(B) in subparagraph (A), by striking ‘‘new’’ and inserting ‘‘and enhancing’’; 

(C) by striking subparagraph (B); 

(D) by redesignating subparagraph (C) as subparagraph (D); and 

(E) by inserting after subparagraph (A) the following 

new subparagraphs: 

‘‘(B) meeting specific administrative, management, 

personnel, transportation, storage, and distribution costs 

for carrying out programs in foreign countries under this 

title; 

‘‘(C) implementing income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within 1 or 

more recipient countries or within 1 or more countries in 

the same region; and’’; and 

(2) by adding at the end the following new paragraph: 


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‘‘(4) INVESTMENT AUTHORITY.—An eligible organization 

that receives funds made available under paragraph (1) may 

invest the funds pending the eligible organization’s use of the 

funds. Any interest earned on such investment may be used for 

the purposes for which the assistance was provided to the eligible organization without further appropriation by Congress.’’. 

SEC. 3003. FOOD AID QUALITY. 

Section 202(h) of the Food for Peace Act (7 U.S.C. 1722(h)) is 

amended— 

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

new paragraph: 

‘‘(1) IN GENERAL.—The Administrator shall use funds made 

available for fiscal year 2014 and subsequent fiscal years to 

carry out this title— 

‘‘(A) to assess the types and quality of agricultural 

commodities and products donated for food aid; 

‘‘(B) to adjust products and formulations, including potential introduction of new fortificants and products, as 

necessary to cost-effectively meet nutrient needs of target 

populations; 

‘‘(C) to test prototypes; 

‘‘(D) to adopt new specifications or improve existing 

specifications for micronutrient fortified food aid products, 

based on the latest developments in food and nutrition 

science, and in coordination with other international partners; 

‘‘(E) to develop new program guidance to facilitate improved matching of products to purposes having nutritional intent, in coordination with other international partners; 

‘‘(F) to develop improved guidance for implementing 

partners on how to address nutritional deficiencies that 

emerge among recipients for whom food assistance is the 

sole source of diet in emergency programs that extend beyond 1 year, in coordination with other international partners; and 

‘‘(G) to evaluate, in appropriate settings and as necessary, the performance and cost-effectiveness of new or 

modified specialized food products and program approaches designed to meet the nutritional needs of the 

most vulnerable groups, such as pregnant and lactating 

mothers, and children under the age of 5.’’; and 

(2) in paragraph (3), by striking ‘‘fiscal years 2009 through 

2011’’ and inserting ‘‘fiscal years 2014 through 2018’’. 

SEC. 3004. MINIMUM LEVELS OF ASSISTANCE. 

Section 204(a) of the Food for Peace Act (7 U.S.C. 1724(a)) is 

amended— 

(1) in paragraph (1), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) in paragraph (2), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 3005. FOOD AID CONSULTATIVE GROUP. 

(a) MEMBERSHIP.—Section 205(b) of the Food for Peace Act (7 

U.S.C. 1725(b)) is amended— 


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(1) by striking ‘‘and’’ at the end of paragraph (6); 

(2) by redesignating paragraph (7) as paragraph (8); and 

(3) by inserting after paragraph (6) the following new 

paragraph: 

‘‘(7) representatives from the United States agricultural 

processing sector involved in providing agricultural commodities for programs under this Act; and’’. 

(b) CONSULTATION.—Section 205(d) of the Food for Peace Act (7 

U.S.C. 1725(d)) is amended— 

(1) by striking the first sentence and inserting the following: 

‘‘(1) CONSULTATION IN ADVANCE OF ISSUANCE OF IMPLEMEN- TATION REGULATIONS, HANDBOOKS, AND GUIDELINES.—Not later 

than 45 days before a proposed regulation, handbook, or guideline implementing this title, or a proposed significant revision 

to a regulation, handbook, or guideline implementing this title, 

becomes final, the Administrator shall provide the proposal to 

the Group for review and comment.’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(2) CONSULTATION REGARDING FOOD AID QUALITY EF- FORTS.—The Administrator shall seek input from and consult 

with the Group on the implementation of section 202(h).’’. 

(c) REAUTHORIZATION.—Section 205(f) of the Food for Peace Act 

(7 U.S.C. 1725(f)) is amended by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 3006. OVERSIGHT, MONITORING, AND EVALUATION. 

(a) REGULATIONS AND GUIDANCE.—Section 207(c) of the Food 

for Peace Act (7 U.S.C. 1726a(c)) is amended— 

(1) in the subsection heading, by inserting ‘‘AND GUID- ANCE’’ after ‘‘REGULATIONS’’; 

(2) in paragraph (1), by adding at the end the following 

new sentence: ‘‘Not later than 270 days after the date of the 

enactment of the Agricultural Act of 2014, the Administrator 

shall issue all regulations and revisions to agency guidance 

necessary to implement the amendments made to this title by 

such Act.’’; and 

(3) in paragraph (2), by inserting ‘‘and guidance’’ after ‘‘develop regulations’’. 

(b) FUNDING.—Section 207(f) of the Food for Peace Act (7 

U.S.C. 1726a(f)) is amended— 

(1) in paragraph (2)(F), by striking ‘‘upgraded’’ and inserting ‘‘maintenance of’’; 

(2) by striking paragraphs (3) and (4); and 

(3) by redesignating paragraphs (5) and (6) as paragraphs 

(3) and (4), respectively; and 

(4) in paragraph (4) (as so redesignated)— 

(A) in subparagraph (A), by striking ‘‘$22,000,000’’ and 

all that follows through the period at the end and inserting 

‘‘$17,000,000 of the funds made available under this title 

for each of fiscal years 2014 through 2018, except for paragraph (2)(F), for which not more than $500,000 shall be 

made available for each of the fiscal years 2014 through 

2018.’’; and 

(B) in subparagraph (B)(i), by striking ‘‘2012’’ and inserting ‘‘2018’’. 


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(c) IMPLEMENTATION REPORTS.—Not later than 270 days after 

the date of the enactment of this Act, the Administrator of the 

Agency for International Development shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and 

the Committees on Agriculture and Foreign Affairs of the House of 

Representatives a report describing— 

(1) the implementation of section 207(c) of the Food for 

Peace Act (7 U.S.C. 1726a(c)); 

(2) the surveys, studies, monitoring, reporting, and audit 

requirements for programs conducted under title II of such Act 

(7 U.S.C. 1721 et seq.) by an eligible organization that is a 

nongovernmental organization (as such term is defined in section 402 of such Act (7 U.S.C. 1732)); and 

(3) the surveys, studies, monitoring, reporting, and audit 

requirements for such programs by an eligible organization 

that is an intergovernmental organization, such as the World 

Food Program or other multilateral organization. 

SEC. 3007. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED FOODS. 

Section 208(f) of the Food for Peace Act (7 U.S.C. 1726b(f)) is 

amended by striking ‘‘$8,000,000 for each of fiscal years 2001 

through 2012’’ and inserting ‘‘$10,000,000 for each of fiscal years 

2014 through 2018’’. 

SEC. 3008. IMPACT ON LOCAL FARMERS AND ECONOMY AND REPORT 

ON USE OF FUNDS. 

(a) IMPACT ON LOCAL FARMERS AND ECONOMY.—Section 403(b) 

of the Food for Peace Act (7 U.S.C. 1733(b)) is amended by adding 

at the end the following new sentence: ‘‘The Secretary or the Administrator, as appropriate, shall seek information, as part of the 

regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy of sales 

of agricultural commodities within the recipient country.’’. 

(b) REPORT ON USE OF FUNDS.—Section 403 of the Food for 

Peace Act (7 U.S.C. 1733) is amended by adding at the end the following new subsection: 

‘‘(m) REPORT ON USE OF FUNDS.— 

‘‘(1) REPORT REQUIRED.—Not later than 180 days after the 

date of the enactment of the Agricultural Act of 2014, and annually thereafter, the Administrator shall submit to Congress 

a report that— 

‘‘(A) specifies the amount of funds (including funds for 

administrative costs, indirect cost recovery, internal transportation, storage, and handling, and associated distribution costs) provided to each eligible organization that received assistance under this Act in the previous fiscal year; 

‘‘(B) describes how those funds were used by the eligible organization; 

‘‘(C) describes the actual rate of return for each commodity made available under this Act, including— 

‘‘(i) factors that influenced the rate of return; and 

‘‘(ii) for the commodity, the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any 


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other information that the Administrator determines 

to be necessary; and 

‘‘(D) for each instance in which a commodity was made 

available under this Act at a rate of return less than 70 

percent, describes the reasons for the rate of return realized. 

‘‘(2) RATE OF RETURN DESCRIBED.—For purposes of applying paragraph (1)(C), the rate of return for a commodity shall 

be equal to the proportion that— 

‘‘(A) the proceeds the implementing partners generate 

through monetization; bears to 

‘‘(B) the cost to the Federal Government to procure 

and ship the commodity to a recipient country for monetization.’’. 

SEC. 3009. PREPOSITIONING OF AGRICULTURAL COMMODITIES. 

Section 407(c)(4) of the Food for Peace Act (7 U.S.C. 

1736a(c)(4)) is amended— 

(1) in subparagraph (A)— 

(A) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 

(B) by striking ‘‘for each such fiscal year not more 

than $10,000,000 of such funds’’ and inserting ‘‘for each of 

fiscal years 2001 through 2013 not more than $10,000,000 

of such funds and for each of fiscal years 2014 through 

2018 not more than $15,000,000 of such funds’’; and 

(2) by striking subparagraph (B) and inserting the following new subparagraph: 

‘‘(B) ADDITIONAL PREPOSITIONING SITES.—The Administrator may establish additional sites for prepositioning in 

foreign countries or change the location of current sites for 

prepositioning in foreign countries after conducting, and 

based on the results of, assessments of need, the availability of appropriate technology for long-term storage, feasibility, and cost.’’. 

SEC. 3010. ANNUAL REPORT REGARDING FOOD AID PROGRAMS AND 

ACTIVITIES. 

Section 407(f)(1) of the Food for Peace Act (7 U.S.C. 

1736a(f)(1)) is amended— 

(1) in the paragraph heading, by striking ‘‘AGRICULTURAL

TRADE’’ and inserting ‘‘FOOD AID’’; 

(2) in subparagraph (B)(ii), by inserting before the semicolon at the end the following: ‘‘and the total number of beneficiaries of the project and the activities carried out through 

such project’’; and 

(3) in subparagraph (B)(iii)— 

(A) in the matter preceding subclause (I), by inserting 

‘‘, and the total number of beneficiaries in,’’ after ‘‘commodities made available to’’; 

(B) by striking ‘‘and’’ at the end of subclause (I); 

(C) by inserting ‘‘and’’ at the end of subclause (II); and 

(D) by inserting after subclause (II) the following new 

subclause: 

‘‘(III) the McGovern-Dole International Food 

for Education and Child Nutrition Program established by section 3107 of the Farm Security and 


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Rural Investment Act of 2002 (7 U.S.C. 1736o– 

1);’’. 

SEC. 3011. DEADLINE FOR AGREEMENTS TO FINANCE SALES OR TO 

PROVIDE OTHER ASSISTANCE. 

Section 408 of the Food for Peace Act (7 U.S.C. 1736b) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 3012. MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE. 

Subsection (e) of section 412 of the Food for Peace Act (7 

U.S.C. 1736f) is amended to read as follows: 

‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD ASSISTANCE.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), of the amounts 

made available to carry out emergency and nonemergency food 

assistance programs under title II, not less than 20 nor more 

than 30 percent for each of fiscal years 2014 through 2018 

shall be expended for nonemergency food assistance programs 

under title II. 

‘‘(2) MINIMUM LEVEL.—The amount made available to carry 

out nonemergency food assistance programs under title II shall 

not be less than $350,000,000 for any fiscal year.’’. 

SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS. 

(a) ELIMINATION OF OBSOLETE REFERENCE TO STUDY.—Section 

415(a)(2)(B) of the Food for Peace Act (7 U.S.C. 1736g–2(a)(2)(B)) 

is amended by striking ‘‘, using recommendations’’ and all that follows through ‘‘quality enhancements’’. 

(b) EXTENSION.—Section 415(c) of the Food for Peace Act (7 

U.S.C. 1736g–2(c)) is amended by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TOFARMER PROGRAM. 

(a) FUNDING AND REAUTHORIZATION OF PROGRAM.—Section 501 

of the Food for Peace Act (7 U.S.C. 1737) is amended— 

(1) in subsection (d), in the matter preceding paragraph 

(1), by striking ‘‘2012’’ and inserting ‘‘2013, and not less than 

the greater of $15,000,000 or 0.6 percent of the amounts made 

available for each of fiscal years 2014 through 2018,’’; and 

(2) in subsection (e)(1), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

(b) COMPTROLLER GENERAL REPORT.—Not later than 270 days 

after the date of enactment of this Act, the Comptroller General of 

the United States shall submit to Congress a report that contains— 

(1) a review of the John Ogonowski and Doug Bereuter 

Farmer-to-Farmer Program authorized by section 501 of the 

Food for Peace Act (7 U.S.C. 1737); and 

(2) recommendations relating to actions that the Comptroller General determines to be necessary to improve the monitoring and evaluation of assistance provided under such program. 

SEC. 3015. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS REPORT. 

Section 413 of the Food for Peace Act (7 U.S.C. 1736g) is 

amended— 

(1) by striking ‘‘(a) IN GENERAL.—To the maximum’’ and 

inserting ‘‘To the maximum’’; and 

(2) by striking subsection (b). 


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Subtitle B—Agricultural Trade Act of 1978 

SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAM. 

(a) SHORT-TERM CREDIT GUARANTEES.—Section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended— 

(1) in subsection (a), by striking ‘‘3-year’’ and inserting ‘‘24- 

month’’; 

(2) in subsection (d), by striking ‘‘country’’ and inserting 

‘‘obligor’’; 

(3) by striking subsection (i); 

(4) by redesignating subsections (j) and (k) as subsections 

(i) and (j), respectfully; and 

(5) in subsection (j)(2) (as so redesignated)— 

(A) by striking subparagraphs (A) and (B); 

(B) by redesignating subparagraphs (C) through (E) as 

subparagraphs (A) through (C), respectfully; 

(C) in subparagraph (B) (as so redesignated), by striking ‘‘and’’ at the end; 

(D) in subparagraph (C) (as so redesignated)— 

(i) by striking ‘‘, but do not exceed,’’; and 

(ii) by striking the period at the end and inserting 

‘‘; and’’; and 

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

‘‘(D) notwithstanding any other provision of this section, administer and carry out (only after consulting with 

the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition and 

Forestry of the Senate) the program pursuant to such 

terms as may be agreed between the parties to address the 

World Trade Organization dispute WTO/DS267 to the extent not superseded by any applicable international undertakings on officially supported export credits to which the 

United States is a party.’’. 

(b) FUNDING.—Subsection (b) of section 211 of the Agricultural 

Trade Act of 1978 (7 U.S.C. 5641) is amended to read as follows: 

‘‘(b) EXPORT CREDIT GUARANTEE PROGRAM.—The Commodity 

Credit Corporation shall make available for each fiscal year 

$5,500,000,000 of credit guarantees under section 202(a).’’. 

SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM. 

Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 

U.S.C. 5641(c)(1)(A)) is amended by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM. 

Section 703(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 

5723(a)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

Subtitle C—Other Agricultural Trade Laws 

SEC. 3201. FOOD FOR PROGRESS ACT OF 1985. 

(a) EXTENSION.—The Food for Progress Act of 1985 (7 U.S.C. 

1736o) is amended— 

(1) in subsection (f)(3), by striking ‘‘2012’’ and inserting 

‘‘2018’’; 


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(2) in subsection (g), by striking ‘‘2012’’ and inserting 

‘‘2018’’; 

(3) in subsection (k), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(4) in subsection (l)(1), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

(b) REPEAL OF COMPLETED PROJECT.—Subsection (f) of the 

Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended by striking paragraph (6). 

SEC. 3202. BILL EMERSON HUMANITARIAN TRUST ACT. 

Section 302 of the Bill Emerson Humanitarian Trust Act (7 

U.S.C. 1736f–1) is amended— 

(1) in subsection (b)(2)(B)(i), by striking ‘‘2012’’ both places 

it appears and inserting ‘‘2018’’; and 

(2) in subsection (h), by striking ‘‘2012’’ both places it appears and inserting ‘‘2018’’. 

SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING 

MARKETS. 

(a) DIRECT CREDITS OR EXPORT CREDIT GUARANTEES.—Section 

1542(a) of the Food, Agriculture, Conservation, and Trade Act of 

1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) DEVELOPMENT OF AGRICULTURAL SYSTEMS.—Section 

1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is amended 

by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION 

AND CHILD NUTRITION PROGRAM. 

(a) REAUTHORIZATION.—Section 3107(l)(2) of the Farm Security 

and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)(2)) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) TECHNICAL CORRECTION.—Section 3107(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(d)) is 

amended by striking ‘‘to’’ in the matter preceding paragraph (1). 

SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

(a) PURPOSE.—Section 3205(b) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 5680(b)) is amended by striking 

‘‘related barriers to trade’’ and inserting ‘‘technical barriers to 

trade’’. 

(b) FUNDING.—Section 3205(e)(2) of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 5680(e)(2)) is amended— 

(1) by inserting ‘‘and’’ at the end of subparagraph (C); and 

(2) by striking subparagraphs (D) and (E) and inserting 

the following new subparagraph: 

‘‘(D) $9,000,000 for each of fiscal years 2011 through 

2018.’’. 

(c) U.S. ATLANTIC SPINY DOGFISH STUDY.—Not later than 90 

days after the date of the enactment of this Act, the Secretary shall 

conduct an economic study on the existing market in the United 

States for U.S. Atlantic Spiny Dogfish. 


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SEC. 3206. GLOBAL CROP DIVERSITY TRUST. 

Section 3202(c) of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 22 U.S.C. 2220a note) is amended by 

striking ‘‘2008 through 2012’’ and inserting ‘‘2014 through 2018’’. 

SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT 

PROJECTS. 

Section 3206 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 1726c) is amended— 

(1) in subsection (b)— 

(A) by striking ‘‘(b) STUDY; FIELD-BASED PROJECTS.— 

’’ and all that follows through ‘‘(2) FIELD-BASED

PROJECTS.—’’ and inserting the following: 

‘‘(b) FIELD-BASED PROJECTS.—’’; 

(B) by redesignating subparagraphs (A) and (B) as 

paragraphs (1) and (2), respectively, and indenting appropriately; 

(C) in paragraph (1) (as so redesignated), by striking 

‘‘subparagraph (B)’’ and inserting ‘‘paragraph (2)’’; and 

(D) in paragraph (2) (as so redesignated), by striking 

‘‘subparagraph (A)’’ and inserting ‘‘paragraph (1)’’; 

(2) in subsection (c)(1), by striking ‘‘subsection (b)(2)’’ and 

inserting ‘‘subsection (b)’’; 

(3) by striking subsections (d), (f), and (g); 

(4) by redesignating subsection (e) as subsection (d); 

(5) in subsection (d) (as so redesignated)— 

(A) in paragraph (2)— 

(i) by striking subparagraph (B); and 

(ii) in subparagraph (A)— 

(I) by striking ‘‘(A) APPLICATION.—’’ and all 

that follows through ‘‘To be eligible’’ in clause (i) 

and inserting the following: 

‘‘(A) IN GENERAL.—To be eligible’’; 

(II) by redesignating clause (ii) as subparagraph (B) and indenting appropriately; and 

(III) in subparagraph (B) (as so redesignated), 

by striking ‘‘clause (i)’’ and inserting ‘‘subparagraph (A)’’; and 

(B) by striking paragraph (4); and 

(6) by adding at the end the following new subsection: 

‘‘(e) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $80,000,000 for 

each of fiscal years 2014 through 2018. 

‘‘(2) PREFERENCE.—In carrying out this section, the Secretary may give a preference to eligible organizations that 

have, or are working toward, projects under the McGovernDole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 1736o–1). 

‘‘(3) REPORTING.—Each year, the Secretary shall submit to 

the appropriate committees of Congress a report that describes 

the use of funds under this section, including— 

‘‘(A) the impact of procurements and projects on— 

‘‘(i) local and regional agricultural producers; and 


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‘‘(ii) markets and consumers, including low-income 

consumers; and 

‘‘(B) implementation time frames and costs.’’. 

SEC. 3208. UNDER SECRETARY OF AGRICULTURE FOR TRADE AND 

FOREIGN AGRICULTURAL AFFAIRS. 

(a) DEFINITION OF AGRICULTURE COMMITTEES AND SUBCOMMITTEES.—In this section, the term ‘‘agriculture committees and subcommittees’’ means— 

(1) the Committee on Agriculture of the House of Representatives; 

(2) the Committee on Agriculture, Nutrition, and Forestry 

of the Senate; and 

(3) the subcommittees on agriculture, rural development, 

food and drug administration, and related agencies of the Committees on Appropriations of the House of Representatives and 

the Senate. 

(b) PROPOSAL.— 

(1) IN GENERAL.—The Secretary, in consultation with the 

agriculture committees and subcommittees, shall propose a reorganization of international trade functions for imports and 

exports of the Department of Agriculture. 

(2) CONSIDERATIONS.—In producing the proposal under 

this section, the Secretary shall— 

(A) in recognition of the importance of agricultural exports to the farm economy and the economy as a whole, include a plan for the establishment of an Under Secretary 

of Agriculture for Trade and Foreign Agricultural Affairs; 

(B) take into consideration how the Under Secretary 

described in subparagraph (A) would serve as a multiagency coordinator of sanitary and phytosanitary issues 

and nontariff trade barriers in agriculture with respect to 

imports and exports of agricultural products; and 

(C) take into consideration all implications of a reorganization described in paragraph (1) on domestic programs 

and operations of the Department of Agriculture. 

(3) REPORT.—Not later than 180 days after the date of enactment of this Act and before the reorganization described in 

paragraph (1) can take effect, the Secretary shall submit to the 

agriculture committees and subcommittees a report that— 

(A) includes the results of the proposal under this section; and 

(B) provides a notice of the reorganization plan. 

(4) IMPLEMENTATION.—Not later than 1 year after the date 

of the submission of the report under paragraph (3), the Secretary shall implement a reorganization of international trade 

functions for imports and exports of the Department of Agriculture, including the establishment of an Under Secretary of 

Agriculture for Trade and Foreign Agricultural Affairs. 

(c) CONFIRMATION REQUIRED.—The position of Under Secretary 

of Agriculture for Trade and Foreign Agricultural Affairs established under subsection (b)(2)(A) shall be appointed by the President, by and with the advice and consent of the Senate. 


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TITLE IV—NUTRITION 

Subtitle A—Supplemental Nutrition Assistance Program 

SEC. 4001. PREVENTING PAYMENT OF CASH TO RECIPIENTS OF SUPPLEMENTAL NUTRITION ASSISTANCE BENEFITS FOR THE 

RETURN OF EMPTY BOTTLES AND CANS USED TO CONTAIN FOOD PURCHASED WITH BENEFITS PROVIDED 

UNDER THE PROGRAM. 

Section 3(k)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2012(k)(1)) is amended— 

(1) by striking ‘‘and hot foods’’ and inserting ‘‘hot foods’’; 

and 

(2) by adding at the end the following: ‘‘and any deposit fee 

in excess of the amount of the State fee reimbursement (if any) 

required to purchase any food or food product contained in a 

returnable bottle or can, regardless of whether the fee is included in the shelf price posted for the food or food product,’’. 

SEC. 4002. RETAIL FOOD STORES. 

(a) DEFINITION OF RETAIL FOOD STORE.—Section 3(p)(1)(A) of 

the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(1)(A)) is 

amended— 

(1) by inserting ‘‘at least 7’’ after ‘‘a variety of’’; and 

(2) by striking ‘‘at least 2’’ and inserting ‘‘at least 3’’. 

(b) ALTERNATIVE BENEFIT DELIVERY.—Section 7(f) of the Food 

and Nutrition Act of 2008 (7 U.S.C. 2016(f)) is amended— 

(1) by striking paragraph (2) and inserting the following: 

‘‘(2) IMPOSITION OF COSTS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the Secretary shall require participating retail 

food stores (including restaurants participating in a State 

option restaurant program intended to serve the elderly, 

disabled, and homeless) to pay 100 percent of the costs of 

acquiring, and arrange for the implementation of, electronic benefit transfer point-of-sale equipment and supplies, including related services. 

‘‘(B) EXEMPTIONS.—The Secretary may exempt from 

subparagraph (A)— 

‘‘(i) farmers’ markets and other direct-to-consumer 

markets, military commissaries, nonprofit food buying 

cooperatives, and establishments, organizations, programs, or group living arrangements described in 

paragraphs (5), (7), and (8) of section 3(k); and 

‘‘(ii) establishments described in paragraphs (3), 

(4), and (9) of section 3(k), other than restaurants participating in a State option restaurant program. 

‘‘(C) INTERCHANGE FEES.—Nothing in this paragraph 

permits the charging of fees relating to the redemption of 

supplemental nutrition assistance program benefits, in accordance with subsection (h)(13).’’; and 

(2) by adding at the end the following: 

‘‘(4) TERMINATION OF MANUAL VOUCHERS.— 

‘‘(A) IN GENERAL.—Effective beginning on the date of 

enactment of this paragraph, except as provided in subparagraph (B), no State shall issue manual vouchers to a 

household that receives supplemental nutrition assistance 


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under this Act or allow retail food stores to accept manual 

vouchers as payment, unless the Secretary determines 

that the manual vouchers are necessary, such as in the 

event of an electronic benefit transfer system failure or a 

disaster situation. 

‘‘(B) EXEMPTIONS.—The Secretary may exempt categories of retail food stores or individual retail food stores 

from subparagraph (A) based on criteria established by the 

Secretary. 

‘‘(5) UNIQUE IDENTIFICATION NUMBER REQUIRED.— 

‘‘(A) IN GENERAL.—To enhance the anti-fraud protections of the program, the Secretary shall require all parties providing electronic benefit transfer services to provide 

for and maintain unique terminal identification number 

information through the supplemental nutrition assistance 

program electronic benefit transfer transaction routing 

system. 

‘‘(B) REGULATIONS.— 

‘‘(i) IN GENERAL.—Not earlier than 2 years after 

the date of enactment of this paragraph, the Secretary 

shall issue proposed regulations to carry out this paragraph. 

‘‘(ii) COMMERCIAL PRACTICES.—In issuing regulations to carry out this paragraph, the Secretary shall 

consider existing commercial practices for other pointof-sale debit transactions.’’. 

(c) ELECTRONIC BENEFIT TRANSFER AUDITABILITY.—Section 

7(h)(2)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2016(h)(2)(C)) is amended by striking clause (ii) and inserting the 

following: 

‘‘(ii) unless determined by the Secretary to be located in an area with significantly limited access to 

food, measures that require an electronic benefit 

transfer system— 

‘‘(I) to set and enforce sales restrictions based 

on benefit transfer payment eligibility by using 

scanning or product lookup entry; and 

‘‘(II) to deny benefit tenders for manually entered sales of ineligible items.’’. 

(d) ELECTRONIC BENEFIT TRANSFERS.—Section 7(h)(3)(B) of the 

Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)(3)(B)) is amended 

by striking ‘‘is operational—’’ and all that follows through ‘‘(ii) in 

the case of other participating stores,’’ and inserting ‘‘is operational’’. 

(e) APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD

CONCERNS.—Section 9 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2018) is amended— 

(1) in subsection (a)(1), in the second sentence, by striking 

‘‘; and (C)’’ and inserting ‘‘; (C) whether the applicant is located 

in an area with significantly limited access to food; and (D)’’; 

(2) in subsection (c), in the first sentence, by inserting 

‘‘purchase invoices, or program-related records,’’ after ‘‘relevant 

income and sales tax filing documents,’’; and 

(3) by adding at the end the following: 


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‘‘(g) EBT SERVICE REQUIREMENT.—An approved retail food 

store shall provide adequate EBT service as described in section 

7(h)(3)(B).’’. 

SEC. 4003. ENHANCING SERVICES TO ELDERLY AND DISABLED SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM PARTICIPANTS. 

(a) ENHANCING SERVICES TO ELDERLY AND DISABLED PROGRAM

PARTICIPANTS.—Section 3(p) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2012(p)) is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by inserting after paragraph (4) the following: 

‘‘(5) a governmental or private nonprofit food purchasing 

and delivery service that— 

‘‘(A) purchases food for, and delivers the food to, individuals who are— 

‘‘(i) unable to shop for food; and 

‘‘(ii)(I) not less than 60 years of age; or 

‘‘(II) physically or mentally handicapped or otherwise disabled; 

‘‘(B) clearly notifies the participating household at the 

time the household places a food order— 

‘‘(i) of any delivery fee associated with the food 

purchase and delivery provided to the household by 

the service; and 

‘‘(ii) that a delivery fee cannot be paid with benefits provided under supplemental nutrition assistance 

program; and 

‘‘(C) sells food purchased for the household at the price 

paid by the service for the food and without any additional 

cost markup.’’. 

(b) IMPLEMENTATION.— 

(1) ISSUANCE OF RULES.—The Secretary shall issue regulations that— 

(A) establish criteria to identify a food purchasing and 

delivery service referred to in section 3(p)(5) of the Food 

and Nutrition Act of 2008 (7 U.S.C. 2012(p)(5)); and 

(B) establish procedures to ensure that the service— 

(i) does not charge more for a food item than the 

price paid by the service for the food item; 

(ii) offers food delivery service at no or low cost to 

households under that Act; 

(iii) ensures that benefits provided under the supplemental nutrition assistance program are used only 

to purchase food (as defined in section 3 of that Act (7 

U.S.C. 2012)); 

(iv) limits the purchase of food, and the delivery 

of the food, to households eligible to receive services 

described in section 3(p)(5) of that Act (7 U.S.C. 

2012(p)(5)); 

(v) has established adequate safeguards against 

fraudulent activities, including unauthorized use of 

electronic benefit cards issued under that Act; and 


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(vi) meets such other requirements as the Secretary determines to be appropriate. 

(2) LIMITATION.—Before the issuance of rules under paragraph (1), the Secretary may not approve more than 20 food 

purchasing and delivery services referred to in section 3(p)(5) 

of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(p)(5)) to 

participate as retail food stores under the supplemental nutrition assistance program. 

SEC. 4004. FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS. 

(a) IN GENERAL.—Section 4(b)(6)(F) of the Food and Nutrition 

Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2018’’. 

(b) FEASIBILITY STUDY, REPORT, AND DEMONSTRATION PROJECT

FOR INDIAN TRIBES.— (1) DEFINITIONS.—In this subsection: 

(A) INDIAN; INDIAN TRIBE.—The terms ‘‘Indian’’ and 

‘‘Indian tribe’’ have the meaning given the terms in section 

4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b). 

(B) TRIBAL ORGANIZATION.—The term ‘‘tribal organization’’ has the meaning given the term in section 4 of the 

Indian Self-Determination and Education Assistance Act 

(25 U.S.C. 450b). 

(2) STUDY.—The Secretary shall conduct a study to determine the feasibility of tribal administration of Federal food assistance programs, services, functions, and activities (or portions thereof), in lieu of State agencies or other administrating 

entities. 

(3) REPORT.—Not later than 18 months after the date of 

enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate a report that— 

(A) contains a list of programs, services, functions, and 

activities with respect to which it would be feasible to be 

administered by a tribal organization; 

(B) a description of whether that administration would 

necessitate a statutory or regulatory change; and 

(C) such other issues that may be determined by the 

Secretary and developed through consultation pursuant to 

paragraph (4). 

(4) CONSULTATION WITH INDIAN TRIBES.—In developing the 

report required by paragraph (3), the Secretary shall consult 

with tribal organizations. 

(5) FUNDING.—Out of any funds made available under section 18 for fiscal year 2014, the Secretary shall make available 

to carry out the study and report described in paragraphs (2) 

and (3) $1,000,000, to remain available until expended. 

(6) TRADITIONAL AND LOCAL FOODS DEMONSTRATION

PROJECT.— 

(A) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall pilot a demonstration project 

by awarding a grant to 1 or more tribal organizations authorized to administer the food distribution program on Indian reservations under section 4(b) of the Food and NutriVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00144 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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tion Act of 2008 (7 U.S.C. 2013(b)) for the purpose of purchasing nutritious and traditional foods, and when practicable, foods produced locally by Indian producers, for distribution to recipients of foods distributed under that program. 

(B) ADMINISTRATION.—The Secretary may award a 

grant on a noncompetitive basis to 1 or more tribal organizations that have the administrative and financial capability to conduct a demonstration project, as determined by 

the Secretary. 

(C) CONSULTATION, TECHNICAL ASSISTANCE, AND TRAINING.—During the implementation phase of the demonstration project, the Secretary shall consult with Indian tribes 

and provide outreach to Indian farmers, ranchers, and producers regarding the training and capacity to participate 

in the demonstration project. 

(D) FUNDING.— 

(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

authorized to be appropriated to carry out this section 

$2,000,000 for each of fiscal years 2014 through 2018. 

(ii) RELATIONSHIP TO OTHER AUTHORITIES.—The 

funds and authorities provided under this subparagraph are in addition to any other funds or authorities 

the Secretary may have to carry out activities described in this paragraph. 

SEC. 4005. EXCLUSION OF MEDICAL MARIJUANA FROM EXCESS MEDICAL EXPENSE DEDUCTION. 

Section 5(e)(5) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2014(e)(5)) is amended by adding at the end the following: 

‘‘(C) EXCLUSION OF MEDICAL MARIJUANA.—The Secretary shall promulgate rules to ensure that medical marijuana is not treated as a medical expense for purposes of 

this paragraph.’’. 

SEC. 4006. STANDARD UTILITY ALLOWANCES BASED ON THE RECEIPT 

OF ENERGY ASSISTANCE PAYMENTS. 

(a) STANDARD UTILITY ALLOWANCES IN THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—Section 5(e)(6)(C) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2014(e)(6)(C)) is amended— 

(1) in clause (i), by inserting ‘‘, subject to clause (iv)’’ after 

‘‘Secretary’’; and 

(2) in clause (iv), by striking subclause (I) and inserting 

the following: 

‘‘(I) IN GENERAL.—Subject to subclause (II), if 

a State agency elects to use a standard utility allowance that reflects heating and cooling costs, 

the standard utility allowance shall be made 

available to households that received a payment, 

or on behalf of which a payment was made, under 

the Low-Income Home Energy Assistance Act of 

1981 (42 U.S.C. 8621 et seq.) or other similar energy assistance program, if in the current month 

or in the immediately preceding 12 months, the 

household either received such a payment, or such 

a payment was made on behalf of the household, 


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that was greater than $20 annually, as determined by the Secretary.’’. 

(b) CONFORMING AMENDMENT.—Section 2605(f)(2)(A) of the 

Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 

8624(f)(2)(A)) is amended by inserting before the semicolon the following: ‘‘, except that, for purposes of the supplemental nutrition 

assistance program established under the Food and Nutrition Act 

of 2008 (7 U.S.C. 2011 et seq.), such payments or allowances were 

greater than $20 annually, consistent with section 5(e)(6)(C)(iv)(I) 

of that Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the Secretary of Agriculture’’. 

(c) APPLICATION AND IMPLEMENTATION.— 

(1) IN GENERAL.—Except as provided in paragraph (2), this 

section and the amendments made by this section shall— 

(A) take effect 30 days after the date of enactment of 

this Act; and 

(B) apply with respect to certification periods that 

begin after that date. 

(2) STATE OPTION TO DELAY IMPLEMENTATION FOR CURRENT

RECIPIENTS.—A State may, at the option of the State, implement a policy that eliminates or reduces the effect of the 

amendments made by this section on households that received 

a standard utility allowance as of the date of enactment of this 

Act, for not more than a 5-month period beginning on the date 

on which the amendments would otherwise apply to the respective household. 

SEC. 4007. ELIGIBILITY DISQUALIFICATIONS. 

Section 6(e)(3)(B) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2015(e)(3)(B)) is amended by striking ‘‘section;’’ and inserting the following: 

‘‘section, subject to the condition that the course or 

program of study— 

‘‘(i) is part of a program of career and technical 

education (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 

U.S.C. 2302)) that may be completed in not more than 

4 years at an institution of higher education (as defined in section 102 of the Higher Education Act of 

1965 (20 U.S.C. 1002)); or 

‘‘(ii) is limited to remedial courses, basic adult 

education, literacy, or English as a second language;’’. 

SEC. 4008. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN CONVICTED FELONS. 

(a) IN GENERAL.—Section 6 of the Food and Nutrition Act of 

2008 (7 U.S.C. 2015) is amended by adding at the end the following: 

‘‘(r) DISQUALIFICATION FOR CERTAIN CONVICTED FELONS.— 

‘‘(1) IN GENERAL.—An individual shall not be eligible for 

benefits under this Act if— 

‘‘(A) the individual is convicted of— 

‘‘(i) aggravated sexual abuse under section 2241 of 

title 18, United States Code; 

‘‘(ii) murder under section 1111 of title 18, United 

States Code; 


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‘‘(iii) an offense under chapter 110 of title 18, 

United States Code; 

‘‘(iv) a Federal or State offense involving sexual 

assault, as defined in 40002(a) of the Violence Against 

Women Act of 1994 (42 U.S.C. 13925(a)); or 

‘‘(v) an offense under State law determined by the 

Attorney General to be substantially similar to an offense described in clause (i), (ii), or (iii); and 

‘‘(B) the individual is not in compliance with the terms 

of the sentence of the individual or the restrictions under 

subsection (k). 

‘‘(2) EFFECTS ON ASSISTANCE AND BENEFITS FOR OTHERS.— 

The amount of benefits otherwise required to be provided to an 

eligible household under this Act shall be determined by considering the individual to whom paragraph (1) applies not to 

be a member of the household, except that the income and resources of the individual shall be considered to be income and 

resources of the household. 

‘‘(3) ENFORCEMENT.—Each State shall require each individual applying for benefits under this Act to attest to whether 

the individual, or any member of the household of the individual, has been convicted of a crime described in paragraph 

(1).’’. 

(b) CONFORMING AMENDMENT.—Section 5(a) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2014(a)) is amended in the second 

sentence by striking ‘‘sections 6(b), 6(d)(2), and 6(g)’’ and inserting 

‘‘subsections (b), (d)(2), (g), and (r) of section 6’’. 

(c) INAPPLICABILITY TO CONVICTIONS OCCURRING ON OR BEFORE

ENACTMENT.—The amendments made by this section shall not 

apply to a conviction if the conviction is for conduct occurring on 

or before the date of enactment of this Act. 

SEC. 4009. ENDING SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS FOR LOTTERY OR GAMBLING WINNERS. 

(a) IN GENERAL.—Section 6 of the Food and Nutrition Act of 

2008 (7 U.S.C. 2015) (as amended by section 4008) is amended by 

adding at the end the following: 

‘‘(s) INELIGIBILITY FOR BENEFITS DUE TO RECEIPT OF SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS.— 

‘‘(1) IN GENERAL.—Any household in which a member receives substantial lottery or gambling winnings, as determined 

by the Secretary, shall lose eligibility for benefits immediately 

upon receipt of the winnings. 

‘‘(2) DURATION OF INELIGIBILITY.—A household described in 

paragraph (1) shall remain ineligible for participation until the 

household meets the allowable financial resources and income 

eligibility requirements under subsections (c), (d), (e), (f), (g), 

(i), (k), (l), (m), and (n) of section 5. 

‘‘(3) AGREEMENTS.—As determined by the Secretary, each 

State agency, to the maximum extent practicable, shall establish agreements with entities responsible for the regulation or 

sponsorship of gaming in the State to determine whether individuals participating in the supplemental nutrition assistance 

program have received substantial lottery or gambling 

winnings.’’. 


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SEC. 4010. IMPROVING SECURITY OF FOOD ASSISTANCE. 

Section 7(h)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2016(h)(8)) is amended— 

(1) in the paragraph heading, by striking ‘‘CARD FEE’’ and 

inserting ‘‘OF CARDS’’; 

(2) by striking ‘‘A State’’ and inserting the following: 

‘‘(A) FEES.—A State’’; and 

(3) by adding after subparagraph (A) (as so designated) the 

following: 

‘‘(B) PURPOSEFUL LOSS OF CARDS.— ‘‘(i) IN GENERAL.—Subject to terms and conditions 

established by the Secretary in accordance with clause 

(ii), if a household makes excessive requests for replacement of the electronic benefit transfer card of the 

household, the Secretary may require a State agency 

to decline to issue a replacement card to the household 

unless the household, upon request of the State agency, provides an explanation for the loss of the card. 

‘‘(ii) REQUIREMENTS.—The terms and conditions 

established by the Secretary shall provide that— 

‘‘(I) the household be given the opportunity to 

provide the requested explanation and meet the 

requirements under this paragraph promptly; 

‘‘(II) after an excessive number of lost cards, 

the head of the household shall be required to review program rights and responsibilities with 

State agency personnel authorized to make determinations under section 5(a); and 

‘‘(III) any action taken, including actions required under section 6(b)(2), other than the withholding of the electronic benefit transfer card until 

an explanation described in subclause (I) is provided, shall be consistent with the due process 

protections under section 6(b) or 11(e)(10), as appropriate. 

‘‘(C) PROTECTING VULNERABLE PERSONS.—In implementing this paragraph, a State agency shall act to protect 

homeless persons, persons with disabilities, victims of 

crimes, and other vulnerable persons who lose electronic 

benefit transfer cards but are not intentionally committing 

fraud. 

‘‘(D) EFFECT ON ELIGIBILITY.—While a State may decline to issue an electronic benefits transfer card until a 

household satisfies the requirements under this paragraph, nothing in this paragraph shall be considered a denial of, or limitation on, the eligibility for benefits under 

section 5.’’. 

SEC. 4011. TECHNOLOGY MODERNIZATION FOR RETAIL FOOD STORES. 

(a) MOBILE TECHNOLOGIES.—Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended by section 

4030(e)) is amended by adding at the end the following: 

‘‘(14) MOBILE TECHNOLOGIES.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall approve retail food stores to redeem benefits through electronic means other than wired point of 


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sale devices for electronic benefit transfer transactions, if 

the retail food stores— 

‘‘(i) establish recipient protections regarding privacy, ease of use, access, and support similar to the 

protections provided for transactions made in retail 

food stores; 

‘‘(ii) bear the costs of obtaining, installing, and 

maintaining mobile technologies, including mechanisms needed to process EBT cards and transaction 

fees; 

‘‘(iii) demonstrate the foods purchased with benefits issued under this section through mobile technologies are purchased at a price not higher than the 

price of the same food purchased by other methods 

used by the retail food store, as determined by the 

Secretary; 

‘‘(iv) provide adequate documentation for each authorized transaction, as determined by the Secretary; 

and 

‘‘(v) meet other criteria as established by the Secretary. 

‘‘(B) DEMONSTRATION PROJECT ON ACCEPTANCE OF BEN- EFITS OF MOBILE TRANSACTIONS.— ‘‘(i) IN GENERAL.—Before authorizing implementation of subparagraph (A) in all States, the Secretary 

shall pilot the use of mobile technologies determined 

by the Secretary to be appropriate to test the feasibility and implications for program integrity, by allowing retail food stores to accept benefits from recipients 

of supplemental nutrition assistance through mobile 

transactions. 

‘‘(ii) DEMONSTRATION PROJECTS.—To be eligible to 

participate in a demonstration project under clause (i), 

a retail food store shall submit to the Secretary for approval a plan that includes— 

‘‘(I) a description of the technology; 

‘‘(II) the manner by which the retail food store 

will provide proof of the transaction to households; 

‘‘(III) the provision of data to the Secretary, 

consistent with requirements established by the 

Secretary, in a manner that allows the Secretary 

to evaluate the impact of the demonstration on 

participant access, ease of use, and program integrity; and 

‘‘(IV) such other criteria as the Secretary may 

require. 

‘‘(iii) DATE OF COMPLETION.—The demonstration 

projects under this subparagraph shall be completed 

and final reports submitted to the Secretary by not 

later than July 1, 2016. 

‘‘(C) REPORT TO CONGRESS.—The Secretary shall— 

‘‘(i) by not later than January 1, 2017, authorize 

implementation of subparagraph (A) in all States, unless the Secretary makes a finding, based on the data 

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tion in all States is not in the best interest of the supplemental nutrition assistance program; and 

‘‘(ii) if the determination made in clause (i) is not 

to implement subparagraph (A) in all States, submit a 

report to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate that includes the 

basis of the finding.’’. 

(b) ACCEPTANCE OF BENEFITS THROUGH ON-LINE TRANSACTIONS.— 

(1) IN GENERAL.—Section 7 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2016) is amended by adding at the end the 

following: 

‘‘(k) OPTION TO ACCEPT PROGRAM BENEFITS THROUGH ON-LINE

TRANSACTIONS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (4), the Secretary 

shall approve retail food stores to accept benefits from recipients of supplemental nutrition assistance through on-line 

transactions. 

‘‘(2) REQUIREMENTS TO ACCEPT BENEFITS.—A retail food 

store seeking to accept benefits from recipients of supplemental 

nutrition assistance through on-line transactions shall— 

‘‘(A) establish recipient protections regarding privacy, 

ease of use, access, and support similar to the protections 

provided for transactions made in retail food stores; 

‘‘(B) ensure benefits are not used to pay delivery, ordering, convenience, or other fees or charges; 

‘‘(C) clearly notify participating households at the time 

a food order is placed— 

‘‘(i) of any delivery, ordering, convenience, or other 

fee or charge associated with the food purchase; and 

‘‘(ii) that any such fee cannot be paid with benefits 

provided under this Act; 

‘‘(D) ensure the security of on-line transactions by 

using the most effective technology available that the Secretary considers appropriate and cost-effective and that is 

comparable to the security of transactions at retail food 

stores; and 

‘‘(E) meet other criteria as established by the Secretary. 

‘‘(3) STATE AGENCY ACTION.—Each State agency shall ensure that recipients of supplemental nutrition assistance can 

use benefits on-line as described in this subsection as appropriate. 

‘‘(4) DEMONSTRATION PROJECT ON ACCEPTANCE OF BENEFITS

THROUGH ON-LINE TRANSACTIONS.— 

‘‘(A) IN GENERAL.—Before the Secretary authorizes implementation of paragraph (1) in all States, the Secretary 

shall carry out a number of demonstration projects as determined by the Secretary to test the feasibility of allowing 

retail food stores to accept benefits through on-line transactions. 

‘‘(B) DEMONSTRATION PROJECTS.—To be eligible to participate in a demonstration project under subparagraph 


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(A), a retail food store shall submit to the Secretary for approval a plan that includes— 

‘‘(i) a method of ensuring that benefits may be 

used to purchase only eligible items under this Act; 

‘‘(ii) a description of the method of educating participant households about the availability and operation of on-line purchasing; 

‘‘(iii) adequate testing of the on-line purchasing 

option prior to implementation; 

‘‘(iv) the provision of data as requested by the Secretary for purposes of analyzing the impact of the 

project on participant access, ease of use, and program 

integrity; 

‘‘(v) reports on progress, challenges, and results, 

as determined by the Secretary; and 

‘‘(vi) such other criteria, including security criteria, as established by the Secretary. 

‘‘(C) DATE OF COMPLETION.—The demonstration 

projects under this paragraph shall be completed and final 

reports submitted to the Secretary by not later than July 

1, 2016. 

‘‘(5) REPORT TO CONGRESS.—The Secretary shall— 

‘‘(A) by not later than January 1, 2017, authorize implementation of paragraph (1) in all States, unless the Secretary makes a finding, based on the data provided under 

paragraph (4), that implementation in all States is not in 

the best interest of the supplemental nutrition assistance 

program; and 

‘‘(B) if the determination made in subparagraph (A) is 

not to implement in all States, submit a report to the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of 

the Senate that includes the basis of the finding.’’. 

(2) CONFORMING AMENDMENTS.— (A) Section 7(b) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2016(b)) is amended by striking ‘‘purchase food 

in retail food stores’’ and inserting ‘‘purchase food from retail food stores’’. 

(B) Section 10 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2019) is amended in the first sentence by inserting ‘‘retail food stores authorized to accept and redeem 

benefits through on-line transactions shall be authorized to 

accept benefits prior to the delivery of food if the delivery 

occurs within a reasonable time of the purchase, as determined by the Secretary,’’ after ‘‘food so purchased,’’. 

(c) SAVINGS CLAUSE.—Nothing in this section or an amendment made by this section alters any requirements of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) unless specifically authorized in this section or an amendment made by this section. 

SEC. 4012. USE OF BENEFITS FOR PURCHASE OF COMMUNITY-SUPPORTED AGRICULTURE SHARE. 

Subsection (o)(4) of section 3 of the Food and Nutrition Act of 

2008 (7 U.S.C. 2012) (as redesignated by section 4030(a)(4)) is 

amended by inserting ‘‘, or agricultural producers who market agricultural products directly to consumers’’ after ‘‘such food’’. 


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SEC. 4013. IMPROVED WAGE VERIFICATION USING THE NATIONAL DIRECTORY OF NEW HIRES. 

Section 11(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020(e)) is amended— 

(1) in paragraph (3), by inserting ‘‘and after compliance 

with the requirement specified in paragraph (24)’’ after ‘‘section 16(e) of this Act’’; 

(2) in paragraph (22), by striking ‘‘and’’ at the end; 

(3) in paragraph (23)(C), by striking the period at the end 

and inserting ‘‘; and’’; and 

(4) by adding at the end the following: 

‘‘(24) that the State agency shall request wage data directly from the National Directory of New Hires established 

under section 453(i) of the Social Security Act (42 U.S.C. 

653(i)) relevant to determining eligibility to receive supplemental nutrition assistance program benefits and determining 

the correct amount of those benefits at the time of certification.’’. 

SEC. 4014. RESTAURANT MEALS PROGRAM. 

(a) IN GENERAL.—Section 11(e) of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2020(e)) (as amended by section 4013) is amended— 

(1) in paragraph (23)(C), by striking ‘‘and’’ at the end; 

(2) in paragraph (24), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(25) if the State elects to carry out a program to contract 

with private establishments to offer meals at concessional 

prices, as described in paragraphs (3), (4), and (9) of section 

3(k)— 

‘‘(A) the plans of the State agency for operating the 

program, including— 

‘‘(i) documentation of a need that eligible homeless, elderly, and disabled clients are underserved in a 

particular geographic area; 

‘‘(ii) the manner by which the State agency will 

limit participation to only those private establishments that the State determines necessary to meet the 

need identified in clause (i); and 

‘‘(iii) any other conditions the Secretary may prescribe, such as the level of security necessary to ensure that only eligible recipients participate in the 

program; and 

‘‘(B) a report by the State agency to the Secretary annually, the schedule of which shall be established by the 

Secretary, that includes— 

‘‘(i) the number of households and individual recipients authorized to participate in the program, including any information on whether the individual recipient is elderly, disabled, or homeless; and 

‘‘(ii) an assessment of whether the program is 

meeting an established need, as documented under 

subparagraph (A)(i).’’. 

(b) APPROVAL OF RETAIL FOOD STORES AND WHOLESALE FOOD

CONCERNS.—Section 9 of the Food and Nutrition Act of 2008 (7 


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U.S.C. 2018) (as amended by section 4002(d)(2)) is amended by 

adding at the end the following: 

‘‘(h) PRIVATE ESTABLISHMENTS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), no private establishment that contracts with a State agency to offer meals 

at concessional prices as described in paragraphs (3), (4), and 

(9) of section 3(k) may be authorized to accept and redeem benefits unless the Secretary determines that the participation of 

the private establishment is required to meet a documented 

need in accordance with section 11(e)(25). 

‘‘(2) EXISTING CONTRACTS.— 

‘‘(A) IN GENERAL.—If, on the day before the date of enactment of this subsection, a State has entered into a contract with a private establishment described in paragraph 

(1) and the Secretary has not determined that the participation of the private establishment is necessary to meet a 

documented need in accordance with section 11(e)(25), the 

Secretary shall allow the operation of the private establishment to continue without that determination of need 

for a period not to exceed 180 days from the date on which 

the Secretary establishes determination criteria, by regulation, under section 11(e)(25). 

‘‘(B) JUSTIFICATION.—If the Secretary determines to 

terminate a contract with a private establishment that is 

in effect on the date of enactment of this subsection, the 

Secretary shall provide justification to the State in which 

the private establishment is located for that termination. 

‘‘(3) REPORT TO CONGRESS.—Not later than 90 days after 

September 30, 2014, and 90 days after the last day of each fiscal year thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the effectiveness of a program under this subsection using any information received from States under section 11(e)(25) as well as any other information the Secretary 

may have relating to the manner in which benefits are used.’’. 

(c) CONFORMING AMENDMENTS.—Section 3(k) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2012(k)) is amended by inserting 

‘‘subject to section 9(h)’’ after ‘‘concessional prices’’ each place it appears. 

SEC. 4015. MANDATING STATE IMMIGRATION VERIFICATION. 

Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2020) is amended by striking subsection (p) and inserting the following: 

‘‘(p) STATE VERIFICATION OPTION.—In carrying out the supplemental nutrition assistance program, a State agency shall be required to use an immigration status verification system established 

under section 1137 of the Social Security Act (42 U.S.C. 1320b–7), 

and an income and eligibility verification system, in accordance 

with standards set by the Secretary.’’. 


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SEC. 4016. DATA EXCHANGE STANDARDIZATION FOR IMPROVED 

INTEROPERABILITY. 

(a) DATA EXCHANGE STANDARDIZATION.—Section 11 of the Food 

and Nutrition Act of 2008 (7 U.S.C. 2020) is amended by adding 

at the end the following: 

‘‘(v) DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.— 

‘‘(1) DESIGNATION.—The Secretary shall, in consultation 

with an interagency work group established by the Office of 

Management and Budget, and considering State government 

perspectives, designate data exchange standards to govern, 

under this Act— 

‘‘(A) necessary categories of information that State 

agencies operating related programs are required under 

applicable law to electronically exchange with another 

State agency; and 

‘‘(B) Federal reporting and data exchange required 

under applicable law. 

‘‘(2) REQUIREMENTS.—The data exchange standards required by paragraph (1) shall, to the maximum extent practicable— 

‘‘(A) incorporate a widely accepted, nonproprietary, 

searchable, computer-readable format, such as the eXtensible Markup Language; 

‘‘(B) contain interoperable standards developed and 

maintained by intergovernmental partnerships, such as 

the National Information Exchange Model; 

‘‘(C) incorporate interoperable standards developed 

and maintained by Federal entities with authority over 

contracting and financial assistance; 

‘‘(D) be consistent with and implement applicable accounting principles; 

‘‘(E) be implemented in a manner that is cost-effective 

and improves program efficiency and effectiveness; and 

‘‘(F) be capable of being continually upgraded as necessary. 

‘‘(3) RULES OF CONSTRUCTION.—Nothing in this subsection 

requires a change to existing data exchange standards for Federal reporting found to be effective and efficient.’’. 

(b) APPLICATION DATE.— 

(1) IN GENERAL.—Not later than 2 years after the date of 

enactment of this Act, the Secretary shall issue a proposed rule 

to carry out the amendments made by this section. 

(2) REQUIREMENTS.—The rule shall— 

(A) identify federally required data exchanges; 

(B) include specification and timing of exchanges to be 

standardized; 

(C) address the factors used in determining whether 

and when to standardize data exchanges; 

(D) specify State implementation options; and 

(E) describe future milestones. 


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SEC. 4017. PILOT PROJECTS TO IMPROVE FEDERAL-STATE COOPERATION IN IDENTIFYING AND REDUCING FRAUD IN THE 

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM. 

Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2021) is amended by adding at the end the following: 

‘‘(i) PILOT PROJECTS TO IMPROVE FEDERAL-STATE COOPERATION

IN IDENTIFYING AND REDUCING FRAUD IN THE SUPPLEMENTAL NU- TRITION ASSISTANCE PROGRAM.— ‘‘(1) PILOT PROJECTS REQUIRED.— ‘‘(A) IN GENERAL.—The Secretary shall carry out, 

under such terms and conditions as are determined by the 

Secretary, pilot projects to test innovative Federal-State 

partnerships to identify, investigate, and reduce fraud by 

retail food stores and wholesale food concerns in the supplemental nutrition assistance program, including allowing 

States to operate programs to investigate that fraud. 

‘‘(B) REQUIREMENT.—At least 1 pilot project described 

in subparagraph (A) shall be carried out in an urban area 

that is among the 10 largest urban areas in the United 

States (based on population), if— 

‘‘(i) the supplemental nutrition assistance program 

is separately administered in the area; and 

‘‘(ii) if the administration of the supplemental nutrition assistance program in the area complies with 

the other applicable requirements of the program. 

‘‘(2) SELECTION CRITERIA.—Pilot projects shall be selected 

based on criteria the Secretary establishes, which shall include— 

‘‘(A) enhancing existing efforts by the Secretary to reduce fraud described in paragraph (1)(A); 

‘‘(B) requiring participant States to maintain the overall level of effort of the States at addressing recipient 

fraud, as determined by the Secretary, prior to participation in the pilot project; 

‘‘(C) collaborating with other law enforcement authorities as necessary to carry out an effective pilot project; 

‘‘(D) commitment of the participant State agency to 

follow Federal rules and procedures with respect to investigations described in paragraph (1)(A); and 

‘‘(E) the extent to which a State has committed resources to recipient fraud and the relative success of those 

efforts. 

‘‘(3) EVALUATION.— ‘‘(A) IN GENERAL.—The Secretary shall evaluate the 

pilot projects selected under this subsection to measure the 

impact of the pilot projects. 

‘‘(B) REQUIREMENTS.—The evaluation shall include— 

‘‘(i) the impact of each pilot project on increasing 

the capacity of the Secretary to address fraud described in paragraph (1)(A); 

‘‘(ii) the effectiveness of the pilot projects in identifying, preventing and reducing fraud described in 

paragraph (1)(A); and 

‘‘(iii) the cost effectiveness of the pilot projects. 

‘‘(4) REPORT TO CONGRESS.—Not later than September 30, 

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culture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate, a report 

that includes a description of the results of each pilot project, 

including— 

‘‘(A) an evaluation of the impact of the pilot project on 

fraud described in paragraph (1)(A); and 

‘‘(B) the costs associated with the pilot project. 

‘‘(5) FUNDING.—Any costs incurred by a State to operate 

pilot projects under this subsection that are in excess of the 

amount expended under this Act to identify, investigate, and 

reduce fraud described in paragraph (1)(A) in the respective 

State in the previous fiscal year shall not be eligible for Federal reimbursement under this Act.’’. 

SEC. 4018. PROHIBITING GOVERNMENT-SPONSORED RECRUITMENT 

ACTIVITIES. 

(a) ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL.— 

Section 16(a)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025(a)(4)) is amended by inserting after ‘‘recruitment activities’’ 

the following: ‘‘designed to persuade an individual to apply for program benefits or that promote the program through television, 

radio, or billboard advertisements’’. 

(b) LIMITATION ON USE OF FUNDS AUTHORIZED TO BE APPROPRIATED UNDER ACT.—Section 18 of the Food and Nutrition Act of 

2008 (7 U.S.C. 2027) is amended by adding at the end the following: 

‘‘(g) BAN ON RECRUITMENT AND PROMOTION ACTIVITIES.— 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), no 

funds authorized to be appropriated under this Act shall be 

used by the Secretary for— 

‘‘(A) recruitment activities designed to persuade an individual to apply for supplemental nutrition assistance 

program benefits; 

‘‘(B) television, radio, or billboard advertisements that 

are designed to promote supplemental nutrition assistance 

program benefits and enrollment; or 

‘‘(C) any agreements with foreign governments designed to promote supplemental nutrition assistance program benefits and enrollment. 

‘‘(2) LIMITATION.—Paragraph (1)(B) shall not apply to programmatic activities undertaken with respect to benefits made 

under section 5(h).’’. 

(c) BAN ON RECRUITMENT ACTIVITIES BY ENTITIES THAT RECEIVE FUNDS.—Section 18 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2027) (as amended by subsection (b)) is amended by adding 

at the end the following: 

‘‘(h) BAN ON RECRUITMENT BY ENTITIES THAT RECEIVE

FUNDS.—The Secretary shall issue regulations that prohibit entities that receive funds under this Act to compensate any person for 

conducting outreach activities relating to participation in, or for recruiting individuals to apply to receive benefits under, the supplemental nutrition assistance program, if the amount of the compensation would be based on the number of individuals who apply 

to receive the benefits.’’. 


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SEC. 4019. TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS. 

Section 16(c)(1)(A) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2025(c)(1)(A)) is amended— 

(1) by striking ‘‘In carrying’’ and inserting the following: 

‘‘(i) IN GENERAL.—In carrying’’; and 

(2) by adding at the end the following: 

‘‘(ii) TOLERANCE LEVEL FOR EXCLUDING SMALL ERRORS.—The Secretary shall set the tolerance level for 

excluding small errors for the purposes of this subsection— 

‘‘(I) for fiscal year 2014, at an amount not 

greater than $37; and 

‘‘(II) for each fiscal year thereafter, the 

amount specified in subclause (I) adjusted by the 

percentage by which the thrifty food plan is adjusted under section 3(u)(4) between June 30, 

2013, and June 30 of the immediately preceding 

fiscal year.’’. 

SEC. 4020. QUALITY CONTROL STANDARDS. 

(a) IN GENERAL.—Section 16(c)(1)(D)(i) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is amended by striking 

subclause (I). 

(b) CONFORMING AMENDMENTS.— 

(1) Section 13(a)(1) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2022(a)(1)) is amended in the first sentence by striking ‘‘section 16(c)(1)(D)(i)(III)’’ and inserting ‘‘section 

16(c)(1)(D)(i)(II)’’. 

(2) Section 16(c)(1) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2025(c)(1)) is amended— 

(A) in subparagraph (D)— 

(i) in clause (i)— 

(I) by redesignating subclauses (II) through 

(IV) as subclauses (I) through (III), respectively; 

and 

(II) in subclause (III) (as so redesignated), by 

striking ‘‘through (III)’’ and inserting ‘‘and (II)’’; 

and 

(ii) in clause (ii), by striking ‘‘waiver amount or’’; 

(B) in subparagraph (E)(i), by striking ‘‘(D)(i)(III)’’ and 

inserting ‘‘(D)(i)(II)’’; and 

(C) in subparagraph (F), by striking ‘‘(D)(i)(II)’’ each 

place it appears and inserting ‘‘(D)(i)(I)’’. 

SEC. 4021. PERFORMANCE BONUS PAYMENTS. 

Section 16(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2025(d)) is amended by adding at the end the following: 

‘‘(5) USE OF PERFORMANCE BONUS PAYMENTS.—A State 

agency may use a performance bonus payment received under 

this subsection only to carry out the program established under 

this Act, including investments in— 

‘‘(A) technology; 

‘‘(B) improvements in administration and distribution; 

and 

‘‘(C) actions to prevent fraud, waste, and abuse.’’. 


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SEC. 4022. PILOT PROJECTS TO REDUCE DEPENDENCY AND INCREASE 

WORK REQUIREMENTS AND WORK EFFORT UNDER SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM. 

(a) IN GENERAL.—Section 16(h) of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2025(h)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (A)— 

(i) by striking ‘‘15 months’’ and inserting ‘‘24 

months’’; and 

(ii) by striking ‘‘, except that for fiscal year 2013 

and fiscal year 2014, the amount shall be 

$79,000,000’’; 

(B) in subparagraph (C)— 

(i) by striking ‘‘If a State’’ and inserting the following: 

‘‘(i) IN GENERAL.—If a State’’; and 

(ii) by adding at the end the following: 

‘‘(ii) TIMING.—The Secretary shall collect such information as the Secretary determines to be necessary 

about the expenditures and anticipated expenditures 

by the State agencies of the funds initially allocated to 

the State agencies under subparagraph (A) to make 

reallocations of unexpended funds under clause (i) 

within a timeframe that allows each State agency to 

which funds are reallocated at least 270 days to expend the reallocated funds. 

‘‘(iii) OPPORTUNITY.—The Secretary shall ensure 

that all State agencies have an opportunity to obtain 

reallocated funds.’’; and 

(C) by adding at the end the following: 

‘‘(F) PILOT PROJECTS TO REDUCE DEPENDENCY AND IN- CREASE WORK REQUIREMENTS AND WORK EFFORT UNDER

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.— ‘‘(i) PILOT PROJECTS REQUIRED.— ‘‘(I) IN GENERAL.—The Secretary shall carry 

out pilot projects under which State agencies shall 

enter into cooperative agreements with the Secretary to develop and test methods, including operating work programs with certain features comparable to the program of block grants to States 

for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), for employment 

and training programs and services to raise the 

number of work registrants under section 6(d) of 

this Act who obtain unsubsidized employment, increase the earned income of the registrants, and 

reduce the reliance of the registrants on public assistance, so as to reduce the need for supplemental nutrition assistance benefits. 

‘‘(II) REQUIREMENTS.—Pilot projects shall— 

‘‘(aa) meet such terms and conditions as 

the Secretary considers to be appropriate; and 

‘‘(bb) except as otherwise provided in this 

subparagraph, be in accordance with the requirements of sections 6(d) and 20. 


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‘‘(ii) SELECTION CRITERIA.— ‘‘(I) IN GENERAL.—The Secretary shall select 

pilot projects under this subparagraph in accordance with the criteria established under this 

clause and additional criteria established by the 

Secretary. 

‘‘(II) QUALIFYING CRITERIA.—To be eligible to 

participate in a pilot project, a State agency 

shall— 

‘‘(aa) agree to participate in the evaluation described in clause (vii), including providing evidence that the State has a robust 

data collection system for program administration and cooperating to make available 

State data on the employment activities and 

post-participation employment, earnings, and 

public benefit receipt of participants to ensure 

proper and timely evaluation; 

‘‘(bb) commit to collaborate with the State 

workforce board and other job training programs in the State and local area; and 

‘‘(cc) commit to maintain at least the 

amount of State funding for employment and 

training programs and services under paragraphs (2) and (3) and under section 20 as the 

State expended for fiscal year 2013. 

‘‘(III) SELECTION CRITERIA.—In selecting pilot 

projects, the Secretary shall— 

‘‘(aa) consider the degree to which the 

pilot project would enhance existing employment and training programs in the State; 

‘‘(bb) consider the degree to which the 

pilot project would enhance the employment 

and earnings of program participants; 

‘‘(cc) consider whether there is evidence 

that the pilot project could be replicated easily 

by other States or political subdivisions; 

‘‘(dd) consider whether the State agency 

has a demonstrated capacity to operate high 

quality employment and training programs; 

and 

‘‘(ee) ensure the pilot projects, when considered as a group, test a range of strategies, 

including strategies that— 

‘‘(AA) target individuals with low skills or 

limited work experience, individuals subject to 

the requirements under section 6(o), and individuals who are working; 

‘‘(BB) are located in a range of geographic 

areas and States, including rural and urban 

areas; 

‘‘(CC) emphasize education and training, 

rehabilitative services for individuals with 

barriers to employment, rapid attachment to 

employment, and mixed strategies; and 


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‘‘(DD) test programs that assign work registrants to mandatory and voluntary participation in employment and training activities. 

‘‘(iii) ACCOUNTABILITY .— 

‘‘(I) IN GENERAL.—The Secretary shall establish and implement a process to terminate a pilot 

project for which the State has failed to meet the 

criteria described in clause (ii) or other criteria established by the Secretary. 

‘‘(II) TIMING.—The process shall include a reasonable time period, not to exceed 180 days, for 

State agencies found noncompliant to correct the 

noncompliance. 

‘‘(iv) EMPLOYMENT AND TRAINING ACTIVITIES.—Allowable programs and services carried out under this 

subparagraph shall include those programs and services authorized under this Act and employment and 

training activities authorized under the program of 

block grants to States for temporary assistance for 

needy families established under part A of title IV of 

the Social Security Act (42 U.S.C. 601 et seq.), including: 

‘‘(I) Employment in the public or private sector that is not subsidized by any public program. 

‘‘(II) Employment in the private sector for 

which the employer receives a subsidy from public 

funds to offset all or a part of the wages and costs 

of employing an adult. 

‘‘(III) Employment in the public sector for 

which the employer receives a subsidy from public 

funds to offset all or a part of the wages and costs 

of employing an adult. 

‘‘(IV) A work activity that— 

‘‘(aa) is performed in return for public 

benefits; 

‘‘(bb) provides an adult with an opportunity to acquire the general skills, knowledge, and work habits necessary to obtain employment; 

‘‘(cc) is designed to improve the employability of those who cannot find unsubsidized 

employment; and 

‘‘(dd) is supervised by an employer, work 

site sponsor, or other responsible party on an 

ongoing basis. 

‘‘(V) Training in the public or private sector 

that— 

‘‘(aa) is given to a paid employee while 

the employee is engaged in productive work; 

and 

‘‘(bb) provides knowledge and skills essential to the full and adequate performance of 

the job. 


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‘‘(VI) Job search, obtaining employment, or 

preparation to seek or obtain employment, including— 

‘‘(aa) life skills training; 

‘‘(bb) substance abuse treatment or mental health treatment, determined to be necessary and documented by a qualified medical, substance abuse, or mental health professional; and 

‘‘(cc) rehabilitation activities, supervised 

by a public agency or other responsible party 

on an ongoing basis. 

‘‘(VII) Structured programs and embedded activities— 

‘‘(aa) in which adults perform work for 

the direct benefit of the community under the 

auspices of public or nonprofit organizations; 

‘‘(bb) that are limited to projects that 

serve useful community purposes in fields 

such as health, social service, environmental 

protection, education, urban and rural redevelopment, welfare, recreation, public facilities, public safety, and child care; 

‘‘(cc) that are designed to improve the employability of adults not otherwise able to obtain unsubsidized employment; 

‘‘(dd) that are supervised on an ongoing 

basis; and 

‘‘(ee) with respect to which a State agency 

takes into account, to the maximum extent 

practicable, the prior training, experience, and 

skills of a recipient in making appropriate 

community service assignments. 

‘‘(VIII) Career and technical training programs that are— 

‘‘(aa) directly related to the preparation of 

adults for employment in current or emerging 

occupations; and 

‘‘(bb) supervised on an ongoing basis. 

‘‘(IX) Training or education for job skills that 

are— 

‘‘(aa) required by an employer to provide 

an adult with the ability to obtain employment or to advance or adapt to the changing 

demands of the workplace; and 

‘‘(bb) supervised on an ongoing basis. 

‘‘(X) Education that is— 

‘‘(aa) related to a specific occupation, job, 

or job offer; and 

‘‘(bb) supervised on an ongoing basis. 

‘‘(XI) In the case of an adult who has not completed secondary school or received a certificate of 

general equivalence, regular attendance that is— 

‘‘(aa) in accordance with the requirements 

of the secondary school or course of study, at 


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a secondary school or in a course of study 

leading to a certificate of general equivalence; 

and 

‘‘(bb) supervised on an ongoing basis. 

‘‘(XII) Providing child care to enable another 

recipient of public benefits to participate in a community service program that— 

‘‘(aa) does not provide compensation for 

the community service; 

‘‘(bb) is a structured program designed to 

improve the employability of adults who participate in the program; and 

‘‘(cc) is supervised on an ongoing basis. 

‘‘(v) SANCTIONS.—Subject to clause (vi), no work 

registrant shall be eligible to participate in the supplemental nutrition assistance program if the individual 

refuses without good cause to participate in an employment and training program under this subparagraph, to the extent required by the State agency. 

‘‘(vi) STANDARDS.— 

‘‘(I) IN GENERAL.—Employment and training 

activities under this subparagraph shall be considered to be carried out under section 6(d), including 

for the purpose of satisfying any conditions of participation and duration of ineligibility. 

‘‘(II) STANDARDS FOR CERTAIN EMPLOYMENT

ACTIVITIES.—The Secretary shall establish standards for employment activities described in subclauses (I), (II), and (III) of clause (iv) that ensure 

that failure to work for reasons beyond the control 

of an individual, such as involuntary reduction in 

hours of employment, shall not result in ineligibility. 

‘‘(III) PARTICIPATION IN OTHER PROGRAMS.— 

Before assigning a work registrant to mandatory 

employment and training activities, a State agency shall— 

‘‘(aa) assess whether the work registrant 

is participating in substantial employment 

and training activities outside of the pilot 

project that are expected to result in the work 

registrant gaining increased skills, training, 

work, or experience consistent with the objectives of the pilot project; and 

‘‘(bb) if determined to be acceptable, count 

hours engaged in the activities toward any 

minimum participation requirement. 

‘‘(vii) EVALUATION AND REPORTING.— 

‘‘(I) INDEPENDENT EVALUATION.— ‘‘(aa) IN GENERAL.—The Secretary shall, 

under such terms and conditions as the Secretary determines to be appropriate, conduct 

for each State agency that enters into a cooperative agreement under clause (i) an independent longitudinal evaluation of each pilot 


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project of the State agency under this subparagraph, with results reported not less frequently than in consecutive 12-month increments. 

‘‘(bb) PURPOSE.—The purpose of the independent evaluation shall be to measure the 

impact of employment and training programs 

and services provided by each State agency 

under the pilot projects on the ability of 

adults in each pilot project target population 

to find and retain employment that leads to 

increased household income and reduced reliance on public assistance, as well as other 

measures of household well-being, compared 

to what would have occurred in the absence of 

the pilot project. 

‘‘(cc) METHODOLOGY.—The independent 

evaluation shall use valid statistical methods 

that can determine, for each pilot project, the 

difference, if any, between supplemental nutrition assistance and other public benefit receipt expenditures, employment, earnings and 

other impacts as determined by the Secretary— 

‘‘(AA) as a result of the employment and 

training programs and services provided by 

the State agency under the pilot project; as 

compared to 

‘‘(BB) a control group that is not subject 

to the employment and training programs and 

services provided by the State agency under 

the pilot project. 

‘‘(II) REPORTING.—Not later than December 

31, 2015, and each December 31 thereafter until 

the completion of the last evaluation under subclause (I), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate and share broadly, including by posting on the Internet website of 

the Department of Agriculture, a report that includes a description of— 

‘‘(aa) the status of each pilot project carried out under this subparagraph; 

‘‘(bb) the results of the evaluation completed during the previous fiscal year; 

‘‘(cc) to the maximum extent practicable, 

baseline information relevant to the stated 

goals and desired outcomes of the pilot 

project; 

‘‘(dd) the employment and training programs and services each State tested under 

the pilot, including— 

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pate in and meet the requirements of employment and training activities and assigning 

work registrants to appropriate activities; and 

‘‘(BB) the employment and training activities and services provided under the pilot; 

‘‘(ee) the impact of the employment and 

training programs and services on appropriate 

employment, income, and public benefit receipt as well as other outcomes among households participating in the pilot project, relative to households not participating; and 

‘‘(ff) the steps and funding necessary to 

incorporate into State employment and training programs and services the components of 

the pilot projects that demonstrate increased 

employment and earnings. 

‘‘(viii) FUNDING.— 

‘‘(I) IN GENERAL.—Subject to subclause (II), 

from amounts made available under section 

18(a)(1), the Secretary shall use to carry out this 

subparagraph— ‘‘(aa) for fiscal year 2014, $10,000,000; 

and 

‘‘(bb) for fiscal year 2015, $190,000,000. 

‘‘(II) LIMITATIONS.— ‘‘(aa) IN GENERAL.—The Secretary shall 

not fund more than 10 pilot projects under 

this subparagraph. 

‘‘(bb) DURATION.—Each pilot project shall 

be in effect for not more than 3 years. 

‘‘(III) AVAILABILITY OF FUNDS.—Funds made 

available under subclause (I) shall remain available through September 30, 2018. 

‘‘(ix) USE OF FUNDS.— 

‘‘(I) IN GENERAL.—Funds made available 

under this subparagraph for pilot projects shall be 

used only for— 

‘‘(aa) pilot projects that comply with this 

Act; 

‘‘(bb) the program and administrative 

costs of carrying out the pilot projects; 

‘‘(cc) the costs incurred in developing systems and providing information and data for 

the independent evaluations under clause 

(vii); and 

‘‘(dd) the costs of the evaluations under 

clause (vii). 

‘‘(II) MAINTENANCE OF EFFORT.—Funds made 

available under this subparagraph shall be used 

only to supplement, not to supplant, non-Federal 

funds used for existing employment and training 

activities or services. 

‘‘(III) OTHER FUNDS.—In carrying out pilot 

projects, States may contribute additional funds 

obtained from other sources, including Federal, 


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State, or private funds, on the condition that the 

use of the contributions is permissible under Federal law.’’; and 

(2) by striking paragraph (5) and inserting the following: 

‘‘(5) MONITORING.— ‘‘(A) IN GENERAL.—The Secretary shall monitor the 

employment and training programs carried out by State 

agencies under section 6(d)(4) and assess the effectiveness 

of the programs in— 

‘‘(i) preparing members of households participating in the supplemental nutrition assistance program for employment, including the acquisition of 

basic skills necessary for employment; and 

‘‘(ii) increasing the number of household members 

who obtain and retain employment subsequent to participation in the employment and training programs. 

‘‘(B) REPORTING MEASURES.— 

‘‘(i) IN GENERAL.—The Secretary, in consultation 

with the Secretary of Labor, shall develop State reporting measures that identify improvements in the 

skills, training, education, or work experience of members of households participating in the supplemental 

nutrition assistance program. 

‘‘(ii) REQUIREMENTS.—Measures shall— 

‘‘(I) be based on common measures of performance for Federal workforce training programs; and 

‘‘(II) include additional indicators that reflect 

the challenges facing the types of members of 

households participating in the supplemental nutrition assistance program who participate in a 

specific employment and training component. 

‘‘(iii) STATE REQUIREMENTS.—The Secretary shall 

require that each State employment and training plan 

submitted under section 11(e)(19) identifies appropriate reporting measures for each proposed component that serves a threshold number of participants 

determined by the Secretary of at least 100 people a 

year. 

‘‘(iv) INCLUSIONS.—Reporting measures described 

in clause (iii) may include— 

‘‘(I) the percentage and number of program 

participants who received employment and training services and are in unsubsidized employment 

subsequent to the receipt of those services; 

‘‘(II) the percentage and number of program 

participants who obtain a recognized credential, 

including a registered apprenticeship, or a regular 

secondary school diploma or its recognized equivalent, while participating in, or within 1 year after 

receiving, employment and training services; 

‘‘(III) the percentage and number of program 

participants who are in an education or training 

program that is intended to lead to a recognized 

credential, including a registered apprenticeship 

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ondary school diploma or its recognized equivalent, or unsubsidized employment; 

‘‘(IV) subject to terms and conditions established by the Secretary, measures developed by 

each State agency to assess the skills acquisition 

of employment and training program participants 

that reflect the goals of the specific employment 

and training program components of the State 

agency, which may include, at a minimum— 

‘‘(aa) the percentage and number of program participants who are meeting program 

requirements in each component of the education and training program of the State 

agency; 

‘‘(bb) the percentage and number of program participants who are gaining skills likely to lead to employment as measured 

through testing, quantitative or qualitative 

assessment, or other method; and 

‘‘(cc) the percentage and number of program participants who do not comply with 

employment and training requirements and 

who are ineligible under section 6(b); and 

‘‘(V) other indicators approved by the Secretary. 

‘‘(C) OVERSIGHT OF STATE EMPLOYMENT AND TRAINING

ACTIVITIES.—The Secretary shall assess State employment 

and training programs on a periodic basis to ensure— 

‘‘(i) compliance with Federal employment and 

training program rules and regulations; 

‘‘(ii) that program activities are appropriate to 

meet the needs of the individuals referred by the State 

agency to an employment and training program component; 

‘‘(iii) that reporting measures are appropriate to 

identify improvements in skills, training, work and experience for participants in an employment and training program component; and 

‘‘(iv) for States receiving additional allocations 

under paragraph (1)(E), any information the Secretary 

may require to evaluate the compliance of the State 

agency with paragraph (1), which may include— 

‘‘(I) a report for each fiscal year of the number 

of individuals in the State who meet the conditions of paragraph (1)(E)(ii), the number of individuals the State agency offers a position in a program described in subparagraph (B) or (C) of section 6(o)(2), and the number who participate in 

such a program; 

‘‘(II) a description of the types of employment 

and training programs the State agency uses to 

comply with paragraph (1)(E) and the availability 

of those programs throughout the State; and 

‘‘(III) any additional information the Secretary 

determines to be appropriate. 


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‘‘(D) STATE REPORT.—Each State agency shall annually 

prepare and submit to the Secretary a report on the State 

employment and training program that includes, using 

measures identified under subparagraph (B), the numbers 

of supplemental nutrition assistance program participants 

who have gained skills, training, work, or experience that 

will increase the ability of the participants to obtain regular employment. 

‘‘(E) MODIFICATIONS TO THE STATE EMPLOYMENT AND

TRAINING PLAN.—Subject to terms and conditions established by the Secretary, if the Secretary determines that 

the performance of a State agency with respect to employment and training outcomes is inadequate, the Secretary 

may require the State agency to make modifications to the 

State employment and training plan to improve the outcomes. 

‘‘(F) PERIODIC EVALUATION.—Subject to terms and conditions established by the Secretary, not later than October 1, 2016, and not less frequently than once every 5 

years thereafter, the Secretary shall conduct a study to review existing practice and research to identify employment 

and training program components and practices that— 

‘‘(i) effectively assist members of households participating in the supplemental nutrition assistance 

program in gaining skills, training, work, or experience that will increase the ability of the participants 

to obtain regular employment; and 

‘‘(ii) are best integrated with statewide workforce 

development systems.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 5 of the Food and Nutrition Act of 2008 (7 

U.S.C. 2014) is amended— 

(A) in subsection (d)(14), by inserting ‘‘or a pilot 

project under section 16(h)(1)(F)’’ after ‘‘6(d)(4)(I)’’; 

(B) in subsection (e)(3)(B)(iii), by inserting ‘‘or a pilot 

project under section 16(h)(1)(F)’’ after ‘‘6(d)(4)’’; and 

(C) in subsection (g)(3), in the first sentence, by inserting ‘‘or a pilot project under section 16(h)(1)(F)’’ after 

‘‘6(d)’’. 

(2) Section 16(h) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2025(h)) is amended— 

(A) in paragraph (3), by inserting ‘‘or a pilot project 

under paragraph (1)(F)’’ after ‘‘6(d)(4)’’; and 

(B) in paragraph (4), by inserting ‘‘or a pilot project 

under paragraph (1)(F)’’ after ‘‘6(d)(4)’’. 

(3) Section 17(b)(1)(B)(iv)(III)(hh) of the Food and Nutrition Act of 2008 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(hh)) is amended 

by inserting ‘‘(h)(1)(F),’’ after ‘‘(g),’’. 

(c) APPLICATION DATE.— (1) IN GENERAL.—The amendments made by this section 

(other than the amendments made by subsection (a)(2)) shall 

apply beginning on the date of enactment of this Act. 

(2) PROCESS FOR SELECTING PILOT PROGRAMS.— 

(A) IN GENERAL.—Not later than 180 days after the 

date of enactment of this Act, the Secretary shall— 


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(i) develop and publish the process for selecting 

pilot projects under section 16(h)(1)(F) of the Food and 

Nutrition Act of 2008 (as added by subsection 

(a)(1)(C)); and 

(ii) issue such request for proposals for the independent evaluation as is determined appropriate by 

the Secretary. 

(B) APPLICATION.—The Secretary shall begin considering proposals not earlier than 90 days after the date on 

which the Secretary completes the actions described in 

subparagraph (A). 

(C) SELECTION.—Not later than 180 days after the 

date on which the Secretary completes the actions described in subparagraph (A), the Secretary shall select 

pilot projects from the applications submitted in response 

to the request for proposals issued under subparagraph 

(A). 

(3) MONITORING OF EMPLOYMENT AND TRAINING PROGRAMS.— 

(A) IN GENERAL.—Not later than 18 months after the 

date of enactment of this Act, the Secretary shall issue interim final regulations implementing the amendments 

made by subsection (a)(2). 

(B) STATE ACTION.—States shall include reporting 

measures required under section 16(h)(5) of the Food and 

Nutrition Act of 2008 (as amended by subsection (a)(2)) in 

the employment and training plans of the States for the 

first full fiscal year that begins not earlier than 180 days 

after the date that the regulations described in subparagraph (A) are published. 

SEC. 4023. COOPERATION WITH PROGRAM RESEARCH AND EVALUATION. 

Section 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2026) is amended by adding at the end the following: 

‘‘(l) COOPERATION WITH PROGRAM RESEARCH AND EVALUATION.—Subject to the requirements of this Act, including protections under section 11(e)(8), States, State agencies, local agencies, 

institutions, facilities such as data consortiums, and contractors 

participating in programs authorized under this Act shall— 

‘‘(1) cooperate with officials and contractors acting on behalf of the Secretary in the conduct of evaluations and studies 

under this Act; and 

‘‘(2) submit information at such time and in such manner 

as the Secretary may require.’’. 

SEC. 4024. AUTHORIZATION OF APPROPRIATIONS. 

Section 18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2027(a)(1)) is amended in the first sentence by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 

SEC. 4025. REVIEW, REPORT, AND REGULATION OF CASH NUTRITION 

ASSISTANCE PROGRAM BENEFITS PROVIDED IN PUERTO 

RICO. 

Section 19 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2028) is amended by adding at the end the following: 


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‘‘(e) REVIEW, REPORT, AND REGULATION OF CASH NUTRITION AS- SISTANCE PROGRAM BENEFITS PROVIDED IN PUERTO RICO.— ‘‘(1) REVIEW.—The Secretary, in consultation with the Secretary of Health and Human Services, shall carry out a review 

of the provision of nutrition assistance in Puerto Rico in the 

form of cash benefits under this section that shall include— 

‘‘(A) an examination of the history of and purpose for 

distribution of a portion of monthly benefits in the form of 

cash; 

‘‘(B) an examination of current barriers to the redemption of non-cash benefits by current program participants 

and retailers; 

‘‘(C) an examination of current usage of cash benefits 

for the purchase of non-food and other prohibited items; 

‘‘(D) an identification and assessment of potential adverse effects of the discontinuation of a portion of benefits 

in the form of cash for program participants and retailers; 

and 

‘‘(E) an examination of such other factors as the Secretary determines to be relevant. 

‘‘(2) REPORT.—Not later than 18 months after the date of 

enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate, a report that describes the results of the review conducted 

under this subsection. 

‘‘(3) REGULATION.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), and notwithstanding the second sentence of 

subsection (b)(1)(B)(i), the Secretary shall disapprove any 

plan submitted pursuant to subsection (b)(1)(A)— 

‘‘(i) for fiscal year 2017 that provides for the distribution of more than 20 percent of the nutrition assistance benefit of a participant in the form of cash; 

‘‘(ii) for fiscal year 2018 that provides for the distribution of more than 15 percent of the nutrition assistance benefit of a participant in the form of cash; 

‘‘(iii) for fiscal year 2019 that provides for the distribution of more than 10 percent of the nutrition assistance benefit of a participant in the form of cash; 

‘‘(iv) for fiscal year 2020 that provides for the distribution of more than 5 percent of the nutrition assistance benefit of a participant in the form of cash; 

and 

‘‘(v) for fiscal year 2021 that provides for the distribution of any portion of the nutrition assistance 

benefit of a participant in the form of cash. 

‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A), 

the Secretary, informed by the report required under paragraph (2), may approve a plan that exempts participants 

or categories of participants if the Secretary determines 

that discontinuation of benefits in the form of cash is likely 

to have significant adverse effects. 

‘‘(4) FUNDING.—Out of any funds made available under 

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able to carry out the review and report described in paragraphs (1) and (2) $1,000,000, to remain available until expended.’’. 

SEC. 4026. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

Section 25 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2034) is amended— 

(1) in subsection (a)— 

(A) in paragraph (1)(B)— 

(i) in clause (i)— 

(I) in subclause (I), by inserting after ‘‘individuals’’ the following: ‘‘through food distribution, 

community outreach to assist in participation in 

Federally assisted nutrition programs, or improving access to food as part of a comprehensive service;’’; and 

(II) in subclause (III), by inserting ‘‘food access,’’ after ‘‘food,’’; and 

(ii) in clause (ii), by striking subclause (I) and inserting the following: 

‘‘(I) equipment necessary for the efficient operation of a project;’’; and 

(B) by striking paragraphs (2) and (3) and inserting 

the following: 

‘‘(2) GLEANER.—The term ‘gleaner’ means an entity that— 

‘‘(A) collects edible, surplus food that would be thrown 

away and distributes the food to agencies or nonprofit organizations that feed the hungry; or 

‘‘(B) harvests for free distribution to the needy, or for 

donation to agencies or nonprofit organizations for ultimate distribution to the needy, an agricultural crop that 

has been donated by the owner of the crop. 

‘‘(3) HUNGER-FREE COMMUNITIES GOAL.—The term ‘hungerfree communities goal’ means any of the 14 goals described in 

House Concurrent Resolution 302, 102nd Congress, agreed to 

October 5, 1992.’’; 

(2) in subsection (b)(2)— 

(A) in subparagraph (A), by striking ‘‘and’’ at the end; 

(B) in subparagraph (B), by striking ‘‘fiscal year 2008 

and each fiscal year thereafter.’’ and inserting the following: ‘‘each of fiscal years 2008 through 2014; and 

‘‘(C) $9,000,000 for fiscal year 2015 and each fiscal 

year thereafter.’’; 

(3) in subsection (c)— 

(A) in the matter preceding paragraph (1), by striking 

‘‘private nonprofit entity’’ and inserting ‘‘public food program service provider, a tribal organization, or a private 

nonprofit entity, including gleaners,’’; 

(B) in paragraph (1)— 

(i) in subparagraph (A), by striking ‘‘or’’ after the 

semicolon at the end; 

(ii) in subparagraph (B), by inserting ‘‘or’’ after the 

semicolon at the end; and 

(iii) by adding at the end the following: 


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‘‘(C) efforts to reduce food insecurity in the community, 

including food distribution, improving access to services, or 

coordinating services and programs;’’; 

(C) in paragraph (2), by striking ‘‘and’’ after the semicolon at the end; 

(D) in paragraph (3), by striking the period at the end 

and inserting ‘‘; and’’; and 

(E) by adding at the end the following: 

‘‘(4) collaborate with 1 or more local partner organizations 

to achieve at least 1 hunger-free communities goal.’’; 

(4) in subsection (d)— 

(A) in paragraph (3), by striking ‘‘or’’ after the semicolon at the end; 

(B) in paragraph (4), by striking the period at the end 

and inserting ‘‘; or’’; and 

(C) by adding at the end the following: 

‘‘(5) develop new resources and strategies to help reduce 

food insecurity in the community and prevent food insecurity 

in the future by— 

‘‘(A) developing creative food resources; 

‘‘(B) coordinating food services with park and recreation programs and other community-based outlets to reduce barriers to access; or 

‘‘(C) creating nutrition education programs for at- risk 

populations to enhance food-purchasing and food- preparation skills and to heighten awareness of the connection between diet and health.’’; 

(5) in subsection (f)(2), by striking ‘‘3 years’’ and inserting 

‘‘5 years’’; and 

(6) by striking subsections (h) and (i) and inserting the following: 

‘‘(h) REPORTS TO CONGRESS.—Not later than September 30, 

2014, and each year thereafter, the Secretary shall submit to Congress a report that describes each grant made under this section, 

including— 

‘‘(1) a description of any activity funded; 

‘‘(2) the degree of success of each activity funded in achieving hunger-free community goals; and 

‘‘(3) the degree of success in improving the long-term capacity of a community to address food and agriculture problems related to hunger or access to healthy food.’’. 

SEC. 4027. EMERGENCY FOOD ASSISTANCE. 

(a) PURCHASE OF COMMODITIES.—Section 27(a) of the Food and 

Nutrition Act of 2008 (7 U.S.C. 2036(a)) is amended— 

(1) in paragraph (1), by striking ‘‘2008 through 2012’’ and 

inserting ‘‘2014 through 2018’’; 

(2) in paragraph (2)— 

(A) in subparagraph (B), by striking ‘‘and’’ at the end; 

(B) in subparagraph (C)— 

(i) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 

(ii) by striking the period at the end and inserting 

a semicolon; and 

(C) by adding at the end the following: 


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‘‘(D) for each of fiscal years 2015 through 2018, the 

sum obtained by adding the total dollar amount of commodities specified in subparagraph (C) and— ‘‘(i) for fiscal year 2015, $50,000,000; 

‘‘(ii) for fiscal year 2016, $40,000,000; 

‘‘(iii) for fiscal year 2017, $20,000,000; and 

‘‘(iv) for fiscal year 2018, $15,000,000; and 

‘‘(E) for fiscal year 2019 and each subsequent fiscal 

year, the total dollar amount of commodities specified in 

subparagraph (D)(iv) adjusted by the percentage by which 

the thrifty food plan has been adjusted under section 

3(u)(4) to reflect changes between June 30, 2017, and June 

30 of the immediately preceding fiscal year.’’; and 

(3) by adding at the end the following: 

‘‘(3) FUNDS AVAILABILITY.—For purposes of the funds described in this subsection, the Secretary shall— 

‘‘(A) make the funds available for 2 fiscal years; and 

‘‘(B) allow States to carry over unexpended balances to 

the next fiscal year pursuant to such terms and conditions 

as are determined by the Secretary.’’. 

(b) EMERGENCY FOOD PROGRAM INFRASTRUCTURE GRANTS.— 

Section 209(d) of the Emergency Food Assistance Act of 1983 (7 

U.S.C. 7511a(d)) is amended by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 4028. NUTRITION EDUCATION. 

Section 28(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2036a(b)) is amended by inserting ‘‘and physical activity’’ after 

‘‘healthy food choices’’. 

SEC. 4029. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING. 

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is 

amended by adding at the end the following: 

‘‘SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAFFICKING. 

‘‘(a) PURPOSE.—The purpose of this section is to provide the 

Department of Agriculture with additional resources to prevent 

trafficking in violation of this Act by strengthening recipient and 

retail food store program integrity. 

‘‘(b) USE OF FUNDS.— 

‘‘(1) IN GENERAL.—Additional funds are provided under 

this section to supplement the retail food store and recipient 

integrity activities of the Department. 

‘‘(2) INFORMATION TECHNOLOGIES.—The Secretary shall use 

an appropriate amount of the funds provided under this section 

to employ information technologies known as data mining and 

data warehousing and other available information technologies 

to administer the supplemental nutrition assistance program 

and enforce regulations promulgated under section 4(c). 

‘‘(c) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $5,000,000 for 

each of fiscal years 2014 through 2018. 

‘‘(2) MANDATORY FUNDING.— 

‘‘(A) IN GENERAL.—Out of any funds in the Treasury 

not otherwise appropriated, the Secretary of the Treasury 

shall transfer to the Secretary to carry out this section not 


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less than $15,000,000 for fiscal year 2014, to remain available until expended. 

‘‘(B) RECEIPT AND ACCEPTANCE.—The Secretary shall 

be entitled to receive, shall accept, and shall use to carry 

out this section the funds transferred under subparagraph 

(A), without further appropriation. 

‘‘(C) MAINTENANCE OF FUNDING.—The funding provided under subparagraph (A) shall supplement (and not 

supplant) other Federal funding for programs carried out 

under this Act.’’. 

SEC. 4030. TECHNICAL AND CONFORMING AMENDMENTS. 

(a) Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2012) is amended— 

(1) in subsection (g), by striking ‘‘coupon,’’ the last place it 

appears and inserting ‘‘coupon’’; 

(2) in subsection (k)(7), by striking ‘‘or are’’ and inserting 

‘‘and’’; 

(3) by striking subsection (l); 

(4) by redesignating subsections (m) through (t) as subsections (l) through (s), respectively; and 

(5) by inserting after subsection (s) (as so redesignated) the 

following: 

‘‘(t) ‘Supplemental nutrition assistance program’ means the 

program operated pursuant to this Act.’’. 

(b) Section 4(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2013(a)) is amended in the last sentence by striking ‘‘benefits’’ and 

inserting ‘‘Benefits’’. 

(c) Section 5 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2014) is amended— 

(1) in the last sentence of subsection (i)(2)(D), by striking 

‘‘section 13(b)(2)’’ and inserting ‘‘section 13(b)’’; and 

(2) in subsection (k)(4)(A), by striking ‘‘paragraph (2)(H)’’ 

and inserting ‘‘paragraph (2)(G)’’. 

(d) Section 6(d)(4) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2015(d)(4)) is amended in subparagraphs (B)(vii) and (F)(iii) 

by indenting both clauses appropriately. 

(e) Section 7(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2016(h)) is amended by redesignating the second paragraph (12) 

(relating to interchange fees) as paragraph (13). 

(f) Section 9(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2018(a)) is amended by indenting paragraph (3) appropriately. 

(g) Section 12 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2021) is amended— 

(1) in subsection (b)(3)(C), by striking ‘‘civil money penalties’’ and inserting ‘‘civil penalties’’; and 

(2) in subsection (g)(1), by striking ‘‘(7 U.S.C. 1786)’’ and 

inserting ‘‘(42 U.S.C. 1786)’’. 

(h) Section 15(b)(1) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2024(b)(1)) is amended in the first sentence by striking ‘‘an 

benefit’’ both places it appears and inserting ‘‘a benefit’’. 

(i) Section 16(a) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2025(a)) is amended in the proviso following paragraph (8) 

by striking ‘‘as amended.’’. 


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(j) Section 18(e) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2027(e)) is amended in the first sentence by striking ‘‘sections 7(f)’’ 

and inserting ‘‘section 7(f)’’. 

(k) Section 22(b)(10)(B)(i) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2031(b)(10)(B)(i)) is amended in the last sentence by 

striking ‘‘Food benefits’’ and inserting ‘‘Benefits’’. 

(l) Section 26(f)(3)(C) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2035(f)(3)(C)) is amended by striking ‘‘subsection’’ and inserting ‘‘subsections’’. 

(m) Section 27(a)(1) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2036(a)(1)) is amended by striking ‘‘(Public Law 98–8; 7 

U.S.C. 612c note)’’ and inserting ‘‘(7 U.S.C. 7515)’’. 

(n) Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (21 U.S.C. 862a) is amended— 

(1) in subsection (a)(2), by striking ‘‘food stamp program 

(as defined in section 3(l) of the Food Stamp Act of 1977) or 

any State program carried out under the Food Stamp Act of 

1977’’ and inserting ‘‘supplemental nutrition assistance program (as defined in section 3 of the Food and Nutrition Act of 

2008 (7 U.S.C. 2012)) or any State program carried out under 

that Act’’; 

(2) in subsection (b)(2)— 

(A) in the paragraph heading, by striking ‘‘THE FOOD

STAMP ACT OF 1977’’ and inserting ‘‘THE FOOD AND NUTRITION ACT OF 2008’’; and 

(B) by striking ‘‘food stamp program (as defined in section 3(l) of the Food Stamp Act of 1977), or any State program carried out under the Food Stamp Act of 1977’’ and 

inserting ‘‘supplemental nutrition assistance program (as 

defined in section 3 of the Food and Nutrition Act of 2008 

(7 U.S.C. 2012)), or any State program carried out under 

that Act’’; and 

(3) in subsection (e)(2), by striking ‘‘section 3(s) of the Food 

Stamp Act of 1977, when referring to the food stamp program 

(as defined in section 3(l) of the Food Stamp Act of 1977) or 

any State program carried out under the Food Stamp Act of 

1977’’ and inserting ‘‘section 3 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2012), when referring to the supplemental 

nutrition assistance program (as defined in that section) or any 

State program carried out under that Act’’. 

(o) Section 3803(c)(2)(C)(vii) of title 31 of the United States 

Code is amended by striking ‘‘section 3(l)’’ and inserting ‘‘section 3’’. 

(p) Section 453(j)(10) of the Social Security Act (42 U.S.C. 

653(j)(10)) is amended in the paragraph heading by striking ‘‘FOOD

STAMP PROGRAMS’’ and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS’’. 

(q) Section 1137 of the Social Security Act (42 U.S.C. 1320b– 

7)— 

(1) in subsection (a)(5)(B), by striking ‘‘food stamp’’ and inserting ‘‘supplemental nutrition assistance’’; and 

(2) in subsection (b)(4), by striking ‘‘food stamp program 

under the Food Stamp Act of 1977’’ and inserting ‘‘supplemental nutrition assistance program established under the 

Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.)’’. 


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(r) Section 1631(n) of the Social Security Act (42 U.S.C. 1383) 

is amended in the subsection heading by striking ‘‘FOOD STAMP’’ 

and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE’’. 

(s) Section 509 of the Older Americans Act of 1965 (42 U.S.C. 

3056g) is amended in the section heading by striking ‘‘FOOD STAMP

PROGRAMS’’ and inserting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAMS’’. 

(t) Section 4(a) of the Agriculture and Consumer Protection Act 

of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended by 

striking ‘‘Food Stamp Act of 1977’’ and inserting ‘‘Food and Nutrition Act of 2008’’. 

(u) Section 5 of the Agriculture and Consumer Protection Act 

of 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended— 

(1) in subsection (h)(1), by striking ‘‘food stamps’’ and inserting ‘‘the supplemental nutrition assistance program’’; 

(2) in subsection (i)(1), by striking ‘‘food stamps provided 

under the Food Stamp Act of 1977’’ and inserting ‘‘supplemental nutrition assistance benefits provided under the Food 

and Nutrition Act of 2008’’; and 

(3) in subsection (l)(2)(B), by striking ‘‘Food Stamp Act of 

1977’’ and inserting ‘‘Food and Nutrition Act of 2008’’. 

(v) Section 4115(c)(2)(H) of the Food, Conservation, and Energy 

Act of 2008 (Public Law 110–246; 122 Stat. 1871) is amended by 

striking ‘‘531’’ and inserting ‘‘454’’. 

SEC. 4031. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS 

PILOT PROGRAM. 

(a) STUDY.— 

(1) IN GENERAL.—Prior to establishing the pilot program 

under subsection (b), the Secretary shall conduct a study to be 

completed not later than 2 years after the date of enactment 

of this Act to assess— 

(A) the capabilities of the Commonwealth of the 

Northern Mariana Islands to operate the supplemental nutrition assistance program established under the Food and 

Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) in a similar 

manner as the program is operated in the States (as defined in section 3 of that Act (7 U.S.C. 2012)); and 

(B) alternative models of the supplemental nutrition 

assistance program operation and benefit delivery that 

best meet the nutrition assistance needs of the Commonwealth of the Northern Mariana Islands. 

(2) SCOPE.—The study conducted under paragraph (1)(A) 

shall assess the capability of the Commonwealth of the Northern Mariana Islands to fulfill the responsibilities of a State 

agency (as defined in section 3 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2012)), including— 

(A) extending and limiting participation to eligible 

households, as required by sections 5 and 6 of that Act (7 

U.S.C. 2014, 2015); 

(B) issuing benefits through EBT cards, as required by 

section 7 of that Act (7 U.S.C. 2016); 

(C) maintaining the integrity of the program, including operation of a quality control system, as required by 

section 16(c) of that Act (7 U.S.C. 2025(c)); 


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(D) implementing work requirements, including operating an employment and training program, as required by 

section 6(d) of that Act (7 U.S.C. 2015(d)); and 

(E) paying a share of administrative costs with nonFederal funds, as required by section 16(a) of that Act (7 

U.S.C. 2016(a)). 

(b) ESTABLISHMENT.—If the Secretary determines that a pilot 

program is feasible, the Secretary shall establish a pilot program 

for the Commonwealth of the Northern Mariana Islands to operate 

the supplemental nutrition assistance program in the same manner 

in which the program is operated in the States. 

(c) SCOPE.—The Secretary shall use the information obtained 

from the study conducted under subsection (a) to establish the 

scope of the pilot program established under subsection (b). 

(d) REPORT.—Not later than June 30, 2019, the Secretary shall 

submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry 

of the Senate a report on the pilot program carried out under this 

section, including an analysis of the feasibility of operating the supplemental nutrition assistance program in the Commonwealth of 

the Northern Mariana Islands in the same manner in which the 

program is operated in the States. 

(e) FUNDING.— 

(1) STUDY.—Of the funds made available under section 

18(a)(1) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2027(a)(1)), the Secretary may use to conduct the study described in subsection (a) not more than $1,000,000 for each of 

fiscal years 2014 and 2015. 

(2) PILOT PROGRAM.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), of the funds made available under section 18(a)(1) of 

the Food and Nutrition Act of 2008 (7 U.S.C. 2027(a)(1)), 

the Secretary may use to establish and carry out the pilot 

program under subsection (b), including the Federal costs 

for providing technical assistance to the Commonwealth of 

the Northern Mariana Islands, authorizing and monitoring 

retail food stores, and assessing pilot operations, not more 

than— 

(i) $13,500,000 for fiscal year 2016; and 

(ii) $8,500,000 for each of fiscal years 2017 and 

2018. 

(B) EXCEPTION.—If the Secretary determines that a 

pilot program described in subsection (b) is not feasible, 

the Secretary shall provide to the Commonwealth of the 

Northern Mariana Islands any unspent funds described in 

subparagraph (A), which shall— 

(i) be made available for obligation under the 

Commonwealth of the Northern Mariana Islands nutrition assistance program block grant in addition to 

any other funds made available for that grant; and 

(ii) remain available until expended. 

SEC. 4032. ANNUAL STATE REPORT ON VERIFICATION OF SNAP PARTICIPATION. 

(a) ANNUAL REPORT.—Not later than 1 year after the date 

specified by the Secretary during the 180-day period beginning on 


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the date of enactment of this Act, and annually thereafter, each 

State agency that carries out the supplemental nutrition assistance 

program established under the Food and Nutrition Act of 2008 (7 

U.S.C. 2011 et seq.) shall submit to the Secretary a report containing sufficient information for the Secretary to determine whether the State agency has, for the most recently concluded fiscal year 

preceding that annual date, verified that the State agency in that 

fiscal year— 

(1) did not issue benefits to a deceased individual; and 

(2) did not issue benefits to an individual who had been 

permanently disqualified from receiving benefits. 

(b) PENALTY FOR NONCOMPLIANCE.—For any fiscal year for 

which a State agency fails to comply with subsection (a), the Secretary shall impose a penalty that includes a reduction of up to 50 

percent of the amount that would be otherwise payable to the State 

agency under section 16(a) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2025(a)) with respect to that fiscal year. 

(c) REPORT OF PILOT PROGRAM TO TEST PREVENTION OF DUPLI- CATE PARTICIPATION.—Not later than 90 days after the completion 

in multiple States of a temporary pilot program to test the detection and prevention of duplicate participation by beneficiaries of 

the supplemental nutrition assistance program established under 

the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the Secretary shall submit to the Committee on Agriculture of the House 

of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report assessing the feasibility, effectiveness, and cost for the expansion of the pilot program nationwide. 

SEC. 4033. SERVICE OF TRADITIONAL FOODS IN PUBLIC FACILITIES. 

(a) PURPOSES.—The purposes of this section are— 

(1) to provide access to traditional foods in food service 

programs; 

(2) to encourage increased consumption of traditional foods 

to decrease health disparities among Indians, particularly 

Alaska Natives; and 

(3) to provide alternative food options for food service programs. 

(b) DEFINITIONS.—In this section: 

(1) ALASKA NATIVE.—The term ‘‘Alaska Native’’ means a 

person who is a member of any Native village, Village Corporation, or Regional Corporation (as those terms are defined in 

section 3 of the Alaska Native Claims Settlement Act (43 

U.S.C. 1602)). 

(2) COMMISSIONER.—The term ‘‘Commissioner’’ means the 

Commissioner of Food and Drugs. 

(3) FOOD SERVICE PROGRAM.—The term ‘‘food service program’’ includes— 

(A) food service at residential child care facilities that 

have a license from an appropriate State agency; 

(B) any child nutrition program (as that term is defined in section 25(b) of the Richard B. Russell National 

School Lunch Act (42 U.S.C. 1769f(b)); 

(C) food service at hospitals, clinics, and long-term 

care facilities; and 

(D) senior meal programs. 


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(4) INDIAN; INDIAN TRIBE.—The terms ‘‘Indian’’ and ‘‘Indian 

tribe’’ have the meanings given those terms in section 4 of the 

Indian Self-Determination and Education Assistance Act (25 

U.S.C. 450b). 

(5) TRADITIONAL FOOD.— (A) IN GENERAL.—The term ‘‘traditional food’’ means 

food that has traditionally been prepared and consumed by 

an Indian tribe. 

(B) INCLUSIONS.—The term ‘‘traditional food’’ includes— 

(i) wild game meat; 

(ii) fish; 

(iii) seafood; 

(iv) marine mammals; 

(v) plants; and 

(vi) berries. 

(6) TRIBAL ORGANIZATION.—The term ‘‘tribal organization’’ 

has the meaning given the term in section 4 of the Indian SelfDetermination and Education Assistance Act (25 U.S.C. 450b). 

(c) PROGRAM.—The Secretary and the Commissioner shall 

allow the donation to and serving of traditional food through food 

service programs at public facilities and nonprofit facilities, including facilities operated by Indian tribes and facilities operated by 

tribal organizations, that primarily serve Indians if the operator of 

the food service program— 

(1) ensures that the food is received whole, gutted, gilled, 

as quarters, or as a roast, without further processing; 

(2) makes a reasonable determination that— 

(A) the animal was not diseased; 

(B) the food was butchered, dressed, transported, and 

stored to prevent contamination, undesirable microbial 

growth, or deterioration; and 

(C) the food will not cause a significant health hazard 

or potential for human illness; 

(3) carries out any further preparation or processing of the 

food at a different time or in a different space from the preparation or processing of other food for the applicable program to 

prevent cross-contamination; 

(4) cleans and sanitizes food-contact surfaces of equipment 

and utensils after processing the traditional food; 

(5) labels donated traditional food with the name of the 

food; 

(6) stores the traditional food separately from other food 

for the applicable program, including through storage in a separate freezer or refrigerator or in a separate compartment or 

shelf in the freezer or refrigerator; 

(7) follows Federal, State, local, county, tribal, or other 

non-Federal law regarding the safe preparation and service of 

food in public or nonprofit facilities; and 

(8) follows other such criteria as established by the Secretary and Commissioner. 

(d) LIABILITY.— (1) IN GENERAL.—The United States, an Indian tribe, and 

a tribal organization shall not be liable in any civil action for 

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nation to or serving of traditional foods through food service 

programs. 

(2) RULE OF CONSTRUCTION.—Nothing in paragraph (1) alters any liability or other obligation of the United States under 

the Indian Self-Determination and Education Assistance Act 

(25 U.S.C. 1450 et seq.). 

Subtitle B—Commodity Distribution Programs 

SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. 

Section 4(a) of the Agriculture and Consumer Protection Act of 

1973 (7 U.S.C. 612c note; Public Law 93–86) is amended in the 

first sentence by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 

Section 5 of the Agriculture and Consumer Protection Act of 

1973 (7 U.S.C. 612c note; Public Law 93–86) is amended— 

(1) in paragraphs (1) and (2)(B) of subsection (a), by striking ‘‘2012’’ each place it appears and inserting ‘‘2018’’; 

(2) in the first sentence of subsection (d)(2), by striking 

‘‘2012’’ and inserting ‘‘2018’’; 

(3) by striking subsection (g) and inserting the following: 

‘‘(g) ELIGIBILITY.—Except as provided in subsection (m), the 

States shall only provide assistance under the commodity supplemental food program to low-income persons aged 60 and older.’’; 

and 

(4) by adding at the end the following: 

‘‘(m) PHASE-OUT.—Notwithstanding any other provision of law, 

an individual who receives assistance under the commodity supplemental food program on the day before the date of enactment of 

this subsection shall continue to receive that assistance until the 

date on which the individual is no longer eligible for assistance 

under the eligibility requirements for the program in effect on the 

day before the date of enactment of this subsection.’’. 

SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION PROJECTS. 

Section 1114(a)(2)(A) of the Agriculture and Food Act of 1981 

(7 U.S.C. 1431e(2)(A)) is amended in the first sentence by striking 

‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 4104. PROCESSING OF COMMODITIES. 

(a) IN GENERAL.—Section 17 of the Commodity Distribution 

Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; 

Public Law 100–237) is amended— 

(1) in the section heading, by inserting ‘‘AND PROCESSING’’ 

after ‘‘DONATIONS’’; and 

(2) by adding at the end the following: 

‘‘(c) PROCESSING.— 

‘‘(1) IN GENERAL.—For any program included under subsection (b), the Secretary may, notwithstanding any other provision of Federal or State law relating to the procurement of 

goods and services— 

‘‘(A) retain title to commodities delivered to a processor, on behalf of a State (including a State distributing 

agency and a recipient agency), until such time as end 

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ities as approved by the Secretary, are delivered to a State 

distributing agency or to a recipient agency; and 

‘‘(B) promulgate regulations to ensure accountability 

for commodities provided to a processor for processing into 

end products, and to facilitate processing of commodities 

into end products for use by recipient agencies. 

‘‘(2) REGULATIONS.—The regulations described in paragraph (1)(B) may provide that— 

‘‘(A) a processor that receives commodities for processing into end products, or provides a service with respect 

to the commodities or end products, in accordance with the 

agreement of the processor with a State distributing agency or a recipient agency, provide to the Secretary a bond 

or other means of financial assurance to protect the value 

of the commodities; and 

‘‘(B) in the event a processor fails to deliver to a State 

distributing agency or a recipient agency an end product 

in conformance with the processing agreement entered into 

under this Act, the Secretary— 

‘‘(i) take action with respect to the bond or other 

means of financial assurance pursuant to regulations 

promulgated under this subsection; and 

‘‘(ii) distribute any proceeds obtained by the Secretary to 1 or more State distributing agencies and recipient agencies, as determined appropriate by the 

Secretary.’’. 

(b) DEFINITIONS.—Section 18 of the Commodity Distribution 

Reform Act and WIC Amendments of 1987 (7 U.S.C. 612c note; 

Public Law 100–237) is amended by striking paragraphs (1) and (2) 

and inserting the following: 

‘‘(1) COMMODITIES.—The term ‘commodities’ means agricultural commodities and their products that are donated by the 

Secretary for use by recipient agencies. 

‘‘(2) END PRODUCT.—The term ‘end product’ means a food 

product that contains processed commodities.’’. 

(c) TECHNICAL AND CONFORMING AMENDMENTS.—Section 3 of 

the Commodity Distribution Reform Act and WIC Amendments of 

1987 (7 U.S.C. 612c note; Public Law 100–237) is amended— 

(1) in subsection (a)— 

(A) in paragraph (2), by striking subparagraph (B) and 

inserting the following: 

‘‘(B) the program established under section 4(b) of the 

Food and Nutrition Act of 2008 (7 U.S.C. 2013(b));’’; and 

(B) in paragraph (3)(D), by striking ‘‘the Committee on 

Education and Labor’’ and inserting ‘‘the Committee on 

Education and the Workforce’’; 

(2) in subsection (b)(1)(A)(ii), by striking ‘‘section 32 of the 

Agricultural Adjustment Act (7 U.S.C. 601 et seq.)’’ and inserting ‘‘section 32 of the Act of August 24, 1935 (7 U.S.C. 612c)’’; 

(3) in subsection (e)(1)(D)(iii), by striking subclause (II) 

and inserting the following: 

‘‘(II) the program established under section 

4(b) of the Food and Nutrition Act of 2008 (7 

U.S.C. 2013(b));’’; and 


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(4) in subsection (k), by striking ‘‘the Committee on Education and Labor’’ and inserting ‘‘the Committee on Education 

and the Workforce’’. 

Subtitle C—Miscellaneous 

SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE INSTITUTIONS. 

Section 10603(b) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 612c–4(b)) is amended by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 

SEC. 4202. PILOT PROJECT FOR PROCUREMENT OF UNPROCESSED 

FRUITS AND VEGETABLES. 

Section 6 of the Richard B. Russell National School Lunch Act 

(42 U.S.C. 1755) is amended by adding at the end the following: 

‘‘(f) PILOT PROJECT FOR PROCUREMENT OF UNPROCESSED

FRUITS AND VEGETABLES.— ‘‘(1) IN GENERAL.—The Secretary shall conduct a pilot 

project under which the Secretary shall facilitate the procurement of unprocessed fruits and vegetables in not more than 8 

States receiving funds under this Act. 

‘‘(2) PURPOSE.—The purpose of the pilot project required by 

this subsection is to provide selected States flexibility for the 

procurement of unprocessed fruits and vegetables by permitting each State— 

‘‘(A) to utilize multiple suppliers and products established and qualified by the Secretary; and 

‘‘(B) to allow geographic preference, if desired, in the 

procurement of the products under the pilot project. 

‘‘(3) SELECTION AND PARTICIPATION.— ‘‘(A) IN GENERAL.—The Secretary shall select States 

for participation in the pilot project in accordance with criteria established by the Secretary and terms and conditions established for participation. 

‘‘(B) REQUIREMENT.—The Secretary shall ensure that 

at least 1 project is located in a State in each of— 

‘‘(i) the Pacific Northwest Region; 

‘‘(ii) the Northeast Region; 

‘‘(iii) the Western Region; 

‘‘(iv) the Midwest Region; and 

‘‘(v) the Southern Region. 

‘‘(4) PRIORITY.—In selecting States for participation in the 

pilot project, the Secretary shall prioritize applications based 

on— 

‘‘(A) the quantity and variety of growers of local fruits 

and vegetables in the States on a per capita basis; 

‘‘(B) the demonstrated commitment of the States to 

farm-to-school efforts, as evidenced by prior efforts to increase and promote farm-to-school programs in the States; 

and 

‘‘(C) whether the States contain a sufficient quantity of 

local educational agencies, various population sizes, and 

geographical locations. 

‘‘(5) RECORDKEEPING AND REPORTING REQUIREMENTS.— 

‘‘(A) RECORDKEEPING REQUIREMENT.—States selected 

to participate in the pilot project, and participating school 


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food authorities within those States, shall keep records of 

the fruits and vegetables received under the pilot project 

in such manner and form as requested by the Secretary. 

‘‘(B) REPORTING REQUIREMENT.—Each participating 

State shall submit to the Secretary a report on the success 

of the pilot project in the State, including information on— 

‘‘(i) the quantity and cost of each type of fruit and 

vegetable received by the State under the pilot project; 

and 

‘‘(ii) the benefit provided by those procurements in 

conducting school food service in the State, including 

meeting school meal requirements.’’. 

SEC. 4203. SENIORS FARMERS’ MARKET NUTRITION PROGRAM. 

(a) IN GENERAL.—Section 4402(a) of the Farm Security and 

Rural Investment Act of 2002 (7 U.S.C. 3007(a)) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

takes effect on October 1, 2013. 

SEC. 4204. DIETARY GUIDELINES FOR AMERICANS. 

Section 301(a) of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341(a)) is amended by adding 

at the end the following: 

‘‘(3) PREGNANT WOMEN AND YOUNG CHILDREN.—Not later 

than the 2020 report and in each report thereafter, the Secretaries shall include national nutritional and dietary information and guidelines for pregnant women and children from 

birth until the age of 2.’’. 

SEC. 4205. MULTIAGENCY TASK FORCE. 

Subtitle D of title II of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is amended by adding 

at the end the following: 

‘‘SEC. 242. MULTIAGENCY TASK FORCE. 

‘‘(a) IN GENERAL.—The Secretary shall establish, in the office 

of the Under Secretary for Food, Nutrition, and Consumer Services, 

a multiagency task force for the purpose of providing coordination 

and direction for commodity programs. 

‘‘(b) COMPOSITION.—The Task Force shall be composed of at 

least 4 members, including— 

‘‘(1) a representative from the Food Distribution Division 

of the Food and Nutrition Service, who shall— 

‘‘(A) be appointed by the Under Secretary for Food, 

Nutrition, and Consumer Services; and 

‘‘(B) serve as Chairperson of the Task Force; 

‘‘(2) at least 1 representative from the Agricultural Marketing Service, who shall be appointed by the Under Secretary 

for Marketing and Regulatory Programs; 

‘‘(3) at least 1 representative from the Farm Services Agency, who shall be appointed by the Under Secretary for Farm 

and Foreign Agricultural Services; and 

‘‘(4) at least 1 representative from the Food Safety and Inspection Service, who shall be appointed by the Under Secretary for Food Safety. 

‘‘(c) DUTIES.— 


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‘‘(1) IN GENERAL.—The Task Force shall be responsible for 

evaluation and monitoring of the commodity programs to ensure that the commodity programs meet the mission of the Department— 

‘‘(A) to support the United States farm sector; and 

‘‘(B) to contribute to the health and well-being of individuals in the United States through the distribution of 

domestic agricultural products through commodity programs. 

‘‘(2) SPECIFIC DUTIES.—In carrying out paragraph (1), the 

Task Force shall— 

‘‘(A) review and make recommendations regarding the 

specifications used for the procurement of food commodities; 

‘‘(B) review and make recommendations regarding the 

efficient and effective distribution of food commodities; and 

‘‘(C) review and make recommendations regarding the 

degree to which the quantity, quality, and specifications of 

procured food commodities align the needs of producers 

and the preferences of recipient agencies. 

‘‘(d) REPORTS.—Not later than 1 year after the date of enactment of this section, and annually thereafter, the Secretary shall 

submit to Congress a report that describes, for the period covered 

by the report— 

‘‘(1) the findings and recommendations of the Task Force; 

and 

‘‘(2) policies implemented for the improvement of commodity procurement programs.’’. 

SEC. 4206. HEALTHY FOOD FINANCING INITIATIVE. 

Subtitle D of title II of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as amended by section 

4205) is amended by adding at the end the following: 

‘‘SEC. 243. HEALTHY FOOD FINANCING INITIATIVE. 

‘‘(a) PURPOSE.—The purpose of this section is to enhance the 

authorities of the Secretary to support efforts to provide access to 

healthy food by establishing an initiative to improve access to 

healthy foods in underserved areas, to create and preserve quality 

jobs, and to revitalize low-income communities by providing loans 

and grants to eligible fresh, healthy food retailers to overcome the 

higher costs and initial barriers to entry in underserved areas. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.— 

The term ‘community development financial institution’ has 

the meaning given the term in section 103 of the Community 

Development Banking and Financial Institutions Act of 1994 

(12 U.S.C. 4702). 

‘‘(2) INITIATIVE.—The term ‘Initiative’ means the Healthy 

Food Financing Initiative established under subsection (c)(1). 

‘‘(3) NATIONAL FUND MANAGER.—The term ‘national fund 

manager’ means a community development financial institution that is— 

‘‘(A) in existence on the date of enactment of this section; and 


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‘‘(B) certified by the Community Development Financial Institution Fund of the Department of Treasury to 

manage the Initiative for purposes of— 

‘‘(i) raising private capital; 

‘‘(ii) providing financial and technical assistance to 

partnerships; and 

‘‘(iii) funding eligible projects to attract fresh, 

healthy food retailers to underserved areas, in accordance with this section. 

‘‘(4) PARTNERSHIP.—The term ‘partnership’ means a regional, State, or local public-private partnership that— 

‘‘(A) is organized to improve access to fresh, healthy 

foods; 

‘‘(B) provides financial and technical assistance to eligible projects; and 

‘‘(C) meets such other criteria as the Secretary may establish. 

‘‘(5) PERISHABLE FOOD.—The term ‘perishable food’ means 

a staple food that is fresh, refrigerated, or frozen. 

‘‘(6) QUALITY JOB.—The term ‘quality job’ means a job that 

provides wages and other benefits comparable to, or better 

than, similar positions in existing businesses of similar size in 

similar local economies. 

‘‘(7) STAPLE FOOD.— 

‘‘(A) IN GENERAL.—The term ‘staple food’ means food 

that is a basic dietary item. 

‘‘(B) INCLUSIONS.—The term ‘staple food’ includes— 

‘‘(i) bread or cereal; 

‘‘(ii) flour; 

‘‘(iii) fruits; 

‘‘(iv) vegetables; 

‘‘(v) meat; and 

‘‘(vi) dairy products. 

‘‘(c) INITIATIVE.— 

‘‘(1) ESTABLISHMENT.—The Secretary shall establish an initiative to achieve the purpose described in subsection (a) in accordance with this subsection. 

‘‘(2) IMPLEMENTATION.— 

‘‘(A) IN GENERAL.— 

‘‘(i) IN GENERAL.—In carrying out the Initiative, 

the Secretary shall provide funding to entities with eligible projects, as described in subparagraph (B), subject to the priorities described in subparagraph (C). 

‘‘(ii) USE OF FUNDS.—Funds provided to an entity 

pursuant to clause (i) shall be used— 

‘‘(I) to create revolving loan pools of capital or 

other products to provide loans to finance eligible 

projects or partnerships; 

‘‘(II) to provide grants for eligible projects or 

partnerships; 

‘‘(III) to provide technical assistance to funded 

projects and entities seeking Initiative funding; 

and 


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‘‘(IV) to cover administrative expenses of the 

national fund manager in an amount not to exceed 10 percent of the Federal funds provided. 

‘‘(B) ELIGIBLE PROJECTS.—Subject to the approval of 

the Secretary, the national fund manager shall establish 

eligibility criteria for projects under the Initiative, which 

shall include the existence or planned execution of agreements— 

‘‘(i) to expand or preserve the availability of staple 

foods in underserved areas with moderate- and low-income populations by maintaining or increasing the 

number of retail outlets that offer an assortment of 

perishable food and staple food items, as determined 

by the Secretary, in those areas; and 

‘‘(ii) to accept benefits under the supplemental nutrition assistance program established under the Food 

and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). 

‘‘(C) PRIORITIES.—In carrying out the Initiative, priority shall be given to projects that— 

‘‘(i) are located in severely distressed low-income 

communities, as defined by the Community Development Financial Institutions Fund of the Department 

of Treasury; and 

‘‘(ii) include 1 or more of the following characteristics: 

‘‘(I) The project will create or retain quality 

jobs for low-income residents in the community. 

‘‘(II) The project supports regional food systems and locally grown foods, to the maximum extent practicable. 

‘‘(III) In areas served by public transit, the 

project is accessible by public transit. 

‘‘(IV) The project involves women- or minorityowned businesses. 

‘‘(V) The project receives funding from other 

sources, including other Federal agencies. 

‘‘(VI) The project otherwise advances the purpose of this section, as determined by the Secretary. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$125,000,000, to remain available until expended.’’. 

SEC. 4207. PURCHASE OF HALAL AND KOSHER FOOD FOR EMERGENCY 

FOOD ASSISTANCE PROGRAM. 

Section 202 of the Emergency Food Assistance Act of 1983 (7 

U.S.C. 7502) is amended by adding at the end the following: 

‘‘(h) KOSHER AND HALAL FOOD.—As soon as practicable after 

the date of enactment of this subsection, the Secretary shall finalize and implement a plan— 

‘‘(1) to increase the purchase of Kosher and Halal food 

from food manufacturers with a Kosher or Halal certification 

to carry out the program established under this Act if the Kosher and Halal food purchased is cost neutral as compared to 

food that is not from food manufacturers with a Kosher or 

Halal certification; and 


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‘‘(2) to modify the labeling of the commodities list used to 

carry out the program in a manner that enables Kosher and 

Halal distribution entities to identify which commodities to obtain from local food banks.’’. 

SEC. 4208. FOOD INSECURITY NUTRITION INCENTIVE. 

Section 4405 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 7517) is amended to read as follows: 

‘‘SEC. 4405. FOOD INSECURITY NUTRITION INCENTIVE. 

‘‘(a) IN GENERAL.—In this section: 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means— 

‘‘(A) a nonprofit organization (including an emergency 

feeding organization); 

‘‘(B) an agricultural cooperative; 

‘‘(C) a producer network or association; 

‘‘(D) a community health organization; 

‘‘(E) a public benefit corporation; 

‘‘(F) an economic development corporation; 

‘‘(G) a farmers’ market; 

‘‘(H) a community-supported agriculture program; 

‘‘(I) a buying club; 

‘‘(J) a retail food store participating in the supplemental nutrition assistance program; 

‘‘(K) a State, local, or tribal agency; and 

‘‘(L) any other entity the Secretary designates. 

‘‘(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) SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM.—The 

term ‘supplemental nutrition assistance program’ means the 

supplemental nutrition assistance program established under 

the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). 

‘‘(b) FOOD INSECURITY NUTRITION INCENTIVE GRANTS.— 

‘‘(1) AUTHORIZATION.— 

‘‘(A) IN GENERAL.—In each of the years specified in 

subsection (c), the Secretary shall make grants to eligible 

entities in accordance with paragraph (2). 

‘‘(B) FEDERAL SHARE.—The Federal share of the cost of 

carrying out an activity under this subsection shall not exceed 50 percent of the total cost of the activity. 

‘‘(C) NON-FEDERAL SHARE.— ‘‘(i) IN GENERAL.—The non-Federal share of the 

cost of an activity under this subsection may be provided— 

‘‘(I) in cash or in-kind contributions as determined by the Secretary, including facilities, equipment, or services; and 

‘‘(II) by a State or local government or a private source. 

‘‘(ii) LIMITATION.—In the case of a for-profit entity, 

the non-Federal share described in clause (i) shall not 

include services of an employee, including salaries 

paid or expenses covered by the employer. 

‘‘(2) CRITERIA.— 


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‘‘(A) IN GENERAL.—For purposes of this subsection, an 

eligible entity is a governmental agency or nonprofit organization that— 

‘‘(i) meets the application criteria set forth by the 

Secretary; and 

‘‘(ii) proposes a project that, at a minimum— 

‘‘(I) has the support of the State agency; 

‘‘(II) would increase the purchase of fruits and 

vegetables by low-income consumers participating 

in the supplemental nutrition assistance program 

by providing incentives at the point of purchase; 

‘‘(III) agrees to participate in the evaluation 

described in paragraph (4); 

‘‘(IV) ensures that the same terms and conditions apply to purchases made by individuals with 

benefits issued under this Act and incentives provided for in this subsection as apply to purchases 

made by individuals who are not members of 

households receiving benefits, such as provided for 

in section 278.2(b) of title 7, Code of Federal Regulations (or a successor regulation); and 

‘‘(V) includes effective and efficient technologies for benefit redemption systems that may 

be replicated in other States and communities. 

‘‘(B) PRIORITY.—In awarding grants under this section, 

the Secretary shall give priority to projects that— 

‘‘(i) maximize the share of funds used for direct incentives to participants; 

‘‘(ii) use direct-to-consumer sales marketing; 

‘‘(iii) demonstrate a track record of designing and 

implementing successful nutrition incentive programs 

that connect low-income consumers and agricultural 

producers; 

‘‘(iv) provide locally or regionally produced fruits 

and vegetables; 

‘‘(v) are located in underserved communities; or 

‘‘(vi) address other criteria as established by the 

Secretary. 

‘‘(3) APPLICABILITY.— 

‘‘(A) IN GENERAL.—The value of any benefit provided 

to a participant in any activity funded under this subsection shall be treated as supplemental nutrition benefits 

under section 8(b) of the Food and Nutrition Act of 2008 

(7 U.S.C. 2017(b)). 

‘‘(B) PROHIBITION ON COLLECTION OF SALES TAXES.— 

Each State shall ensure that no State or local tax is collected on a purchase of food under this subsection. 

‘‘(C) NO LIMITATION ON BENEFITS.—A grant made 

available under this subsection shall not be used to carry 

out any project that limits the use of benefits under the 

Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or 

any other Federal nutrition law. 

‘‘(D) HOUSEHOLD ALLOTMENT.—Assistance provided 

under this subsection to households receiving benefits 


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under the supplemental nutrition assistance program shall 

not— 

‘‘(i) be considered part of the supplemental nutrition assistance program benefits of the household; or 

‘‘(ii) be used in the collection or disposition of 

claims under section 13 of the Food and Nutrition Act 

of 2008 (7 U.S.C. 2022). 

‘‘(4) EVALUATION.— 

‘‘(A) INDEPENDENT EVALUATION.—The Secretary shall 

provide for an independent evaluation of projects selected 

under this subsection that measures the impact of each 

project on— 

‘‘(i) improving the nutrition and health status of 

participating households receiving incentives under 

this subsection; and 

‘‘(ii) increasing fruit and vegetable purchases in 

participating households. 

‘‘(B) REQUIREMENT.—The independent evaluation 

under subparagraph (A) shall use rigorous methodologies 

capable of producing scientifically valid information regarding the effectiveness of a project. 

‘‘(C) COSTS.—The Secretary may use funds not to exceed 10 percent of the funding provided to carry out this 

section to pay costs associated with administering, monitoring, and evaluating each project. 

‘‘(c) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out subsection (b) $5,000,000 

for each of fiscal years 2014 through 2018. 

‘‘(2) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out subsection (b)— 

‘‘(A) $35,000,000 for the period of fiscal years 2014 and 

2015; 

‘‘(B) $20,000,000 for each of fiscal years 2016 and 

2017; and 

‘‘(C) $25,000,000 for fiscal year 2018.’’. 

SEC. 4209. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM. 

Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7630 et seq.) is amended by 

adding at the end the following: 

‘‘SEC. 413. FOOD AND AGRICULTURE SERVICE LEARNING PROGRAM. 

‘‘(a) IN GENERAL.—Subject to the availability of appropriations 

under subsection (e), the Secretary, acting through the Director of 

the National Institute of Food and Agriculture, and working in consultation with other appropriate Federal agencies that oversee national service programs, shall administer a competitively awarded 

food and agriculture service learning grant program (referred to in 

this section as the ‘Program’) to increase knowledge of agriculture 

and improve the nutritional health of children. 

‘‘(b) PURPOSES.—The purposes of the Program are— 

‘‘(1) to increase capacity for food, garden, and nutrition 

education within host organizations or entities and school cafeterias and in the classroom; 


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‘‘(2) to complement and build on the efforts of the farm to 

school programs implemented under section 18(g) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1769(g)); 

‘‘(3) to complement efforts by the Department and school 

food authorities to implement the school lunch program established under the Richard B. Russell National School Lunch Act 

(42 U.S.C. 1751 et seq.) and the school breakfast program established by section 4 of the Child Nutrition Act of 1966 (42 

U.S.C. 1773); 

‘‘(4) to carry out activities that advance the nutritional 

health of children and nutrition education in elementary 

schools and secondary schools (as those terms are defined in 

section 9101 of the Elementary and Secondary Education Act 

of 1965 (20 U.S.C. 7801)); and 

‘‘(5) to foster higher levels of community engagement and 

support the expansion of national service and volunteer opportunities. 

‘‘(c) GRANTS.— ‘‘(1) IN GENERAL.—In carrying out the Program, the Director of the National Institute of Food and Agriculture shall 

make competitive grants to eligible entities that carry out the 

purposes described in paragraphs (1) through (5) of subsection 

(b). 

‘‘(2) PRIORITIES.—In making grants under this section, the 

Secretary may consider projects that are carried out by entities 

that— 

‘‘(A) have a proven track record in carrying out the 

purposes described in subsection (b); 

‘‘(B) work in underserved rural and urban communities; 

‘‘(C) teach and engage children in experiential learning 

about agriculture, gardening, nutrition, cooking, and 

where food comes from; and 

‘‘(D) facilitate a connection between elementary schools 

and secondary schools and agricultural producers in the 

local and regional area. 

‘‘(d) ACCOUNTABILITY.— ‘‘(1) IN GENERAL.—The Secretary may require a partner organization or other qualified entity to collect and report any 

data on the activities carried out under the Program, as determined by the Secretary. 

‘‘(2) EVALUATION.—The Secretary shall— 

‘‘(A) conduct regular evaluations of the activities carried out under the Program; and 

‘‘(B) submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that 

includes a description of the results of each evaluation conducted under subparagraph (A). 

‘‘(e) FUNDING.— ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out the Program $25,000,000, 

to remain available until expended. 

‘‘(2) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) 

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search Grant Act (7 U.S.C. 450i(b)) shall apply with respect to 

the making of a competitive grant under this section. 

‘‘(3) MAINTENANCE OF EFFORT.—Funds made available 

under paragraph (1) shall be used only to supplement, not to 

supplant, the amount of Federal funding otherwise expended 

for nutrition, research, and extension programs of the Department.’’. 

SEC. 4210. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM. 

Section 4403 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 3171 note; Public Law 107–171) is repealed. 

SEC. 4211. TERMINATION OF EXISTING AGREEMENT. 

Effective beginning on the date of the enactment of this Act, 

the memorandum of understanding entered into on July 22, 2004, 

by the Secretary of Agriculture of the United States Department of 

Agriculture and the Secretary of Foreign Affairs of the Republic of 

Mexico and known as the ‘‘Partnership for Nutrition Assistance Initiative’’ is null and void. 

SEC. 4212. REVIEW OF SOLE-SOURCE CONTRACTS IN FEDERAL NUTRITION PROGRAMS. 

(a) IN GENERAL.—The Secretary shall conduct an evaluation of 

sole-source contracts in Federal nutrition programs carried out by 

the Secretary, and the effect the contracts have on program participation, program goals, nonprogram consumers, retailers, and free 

market dynamics. 

(b) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the findings of the review conducted under subsection (a). 

SEC. 4213. PULSE CROP PRODUCTS. 

(a) PURPOSE.—The purpose of this section is to encourage 

greater awareness and interest in the number and variety of pulse 

crop products available to schoolchildren, as recommended by the 

most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341). 

(b) DEFINITIONS.—In this section: 

(1) ELIGIBLE PULSE CROP.—The term ‘‘eligible pulse crop’’ 

means dry beans, dry peas, lentils, and chickpeas. 

(2) PULSE CROP PRODUCT.—The term ‘‘pulse crop product’’ 

means a food product derived in whole or in part from an eligible pulse crop. 

(c) PURCHASE OF PULSE CROPS AND PULSE CROP PRODUCTS.— 

In addition to the commodities delivered under section 6 of the 

Richard B. Russell National School Lunch Act (42 U.S.C. 1755), 

subject to the availability of appropriations, the Secretary shall 

purchase eligible pulse crops and pulse crop products for use in— 

(1) the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 

seq.); and 

(2) the school breakfast program established by section 4 

of the Child Nutrition Act of 1966 (42 U.S.C. 1773). 


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(d) EVALUATION.—Not later than September 30, 2016, the Secretary shall conduct an evaluation of the activities conducted under 

subsection (c), including— 

(1) an evaluation of whether children participating in the 

school lunch and breakfast programs described in subsection 

(c) increased overall consumption of eligible pulse crops as a 

result of the activities; 

(2) an evaluation of which eligible pulse crops and pulse 

crop products are most acceptable for use in the school lunch 

and breakfast programs; 

(3) any recommendations of the Secretary regarding the 

integration of the use of pulse crop products in carrying out the 

school lunch and breakfast programs; 

(4) an evaluation of any change in the nutrient composition in the school lunch and breakfast programs due to the activities; and 

(5) an evaluation of any other outcomes determined to be 

appropriate by the Secretary. 

(e) REPORT.—As soon as practicable after the completion of the 

evaluation under subsection (d), the Secretary shall submit to the 

Committee on Agriculture, Nutrition, and Forestry of the Senate 

and the Committee on Education and the Workforce of the House 

of Representative a report describing the results of the evaluation. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $10,000,000, to remain 

available until expended. 

SEC. 4214. PILOT PROJECT FOR CANNED, FROZEN, OR DRIED FRUITS 

AND VEGETABLES. 

(a) IN GENERAL.—Subject to subsection (b), in the 2014-2015 

school year, the Secretary shall carry out a pilot project in schools 

participating in the Fresh Fruit and Vegetable Program under section 19 of the Richard B. Russell National School Lunch Act (42 

U.S.C. 1769a) (referred to in this section as the ‘‘Program’’), in not 

less than 5 States, to evaluate the impact of allowing schools to 

offer canned, frozen, or dried fruits and vegetables as part of the 

Program. 

(b) REQUIREMENTS.—Not later than 60 days after the date of 

enactment of this Act, the Secretary shall establish criteria for the 

conditions under which canned, frozen, or dried fruits and vegetables may be offered, which shall be in accordance with the most recent Dietary Guidelines for Americans published under section 301 

of the National Nutrition Monitoring and Related Research Act of 

1990 (7 U.S.C. 5341). 

(c) EVALUATION.—With respect to the pilot project, the Secretary shall evaluate— 

(1) the impacts on fruit and vegetable consumption at the 

schools participating in the pilot project; 

(2) the impacts of the pilot project on school participation 

in the Program and operation of the Program; 

(3) the implementation strategies used by the schools participating in the pilot project; 

(4) the acceptance of the pilot project by key stakeholders; 

and 

(5) such other outcomes as are determined by the Secretary. 


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(d) REPORTS.— (1) INTERIM REPORT.—Not later than January 1, 2015, the 

Secretary shall submit to the Committee on Education and 

Workforce of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report 

that describes the results of the evaluation under subsection 

(c). 

(2) FINAL REPORT .—On completion of the pilot project, the 

Secretary shall submit to the Committee on Education and 

Workforce of the House of Representatives and the Committee 

on Agriculture, Nutrition, and Forestry of the Senate a report 

that describes the results of the evaluation under subsection 

(c). 

(e) NOTICE OF AVAILABILITY.—As soon as practicable after the 

date on which the Secretary establishes the criteria for the pilot 

project under subsection (b), the Secretary shall notify potentially 

eligible schools of the potential eligibility of the schools for participation in the pilot project. 

(f) RELATIONSHIP TO FRESH FRUIT AND VEGETABLE PROGRAM.— Nothing in this section permits a school that is not a part of the 

pilot project to offer anything other than fresh fruits and vegetables through the Program. 

(g) FUNDING.—The Secretary shall use $5,000,000 of amounts 

otherwise made available to the Secretary to carry out this section. 

TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

SEC. 5001. ELIGIBILITY FOR FARM OWNERSHIP LOANS. 

(a) IN GENERAL.—Section 302(a) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1922(a)) is amended— 

(1) by striking ‘‘(a) IN GENERAL.—The’’ and inserting the 

following: 

‘‘(a) IN GENERAL.— 

‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 

(2) in the first sentence, by striking ‘‘and limited liability 

companies’’ and inserting ‘‘limited liability companies, and 

such other legal entities as the Secretary considers appropriate,’’; 

(3) in the second sentence, by redesignating paragraphs (1) 

through (4) as subparagraphs (A) through (D), respectively; 

(4) in each of the second and third sentences, by striking 

‘‘and limited liability companies’’ each place it appears and inserting ‘‘limited liability companies, and such other legal entities’’; 

(5) in the third sentence— 

(A) by striking ‘‘clause (3)’’ and inserting ‘‘subparagraph (C)’’; 

(B) by striking ‘‘clause (4)’’ and inserting ‘‘subparagraph (D)’’; and 

(6) by adding at the end the following: 

‘‘(2) SPECIAL RULES.— 

‘‘(A) ELIGIBILITY OF CERTAIN OPERATING-ONLY ENTITIES.—An entity that is or will become only the operator 

of a family farm shall be considered to meet the owner-opVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00192 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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erator requirements of paragraph (1) if the individuals 

that are the owners of the family farm own more than 50 

percent (or such other percentage as the Secretary determines is appropriate) of the entity. 

‘‘(B) ELIGIBILITY OF CERTAIN EMBEDDED ENTITIES.—An 

entity that is an owner-operator described in paragraph 

(1), or an operator described in subparagraph (A) of this 

paragraph that is owned, in whole or in part, by other entities, shall be considered to meet the direct ownership requirement imposed under paragraph (1) if at least 75 percent of the ownership interests of each embedded entity of 

the entity is owned directly or indirectly by the individuals 

that own the family farm.’’. 

(b) DIRECT FARM OWNERSHIP EXPERIENCE REQUIREMENT.—Section 302(b)(1) of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1922(b)(1)) is amended in the matter preceding subparagraph (A) by inserting ‘‘or has other acceptable experience for 

a period of time, as determined by the Secretary,’’ after ‘‘3 years’’. 

(c) CONFORMING AMENDMENTS.— 

(1) Section 304(c)(2) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1924(c)(2)) by striking ‘‘paragraphs 

(1) and (2) of section 302(a)’’ and inserting ‘‘subparagraphs (A) 

and (B) of section 302(a)(1)’’. 

(2) Section 310D(a) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1934(a)) is amended in the second 

sentence— 

(A) by inserting after ‘‘partnership’’ the following: ‘‘, or 

such other legal entities as the Secretary considers appropriate,’’; and 

(B) by striking ‘‘or partners’’ each place it appears and 

inserting ‘‘partners, or owners’’. 

SEC. 5002. CONSERVATION LOAN AND LOAN GUARANTEE PROGRAM. 

(a) ELIGIBILITY.—Section 304(c) of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1924(c)) is amended by striking 

‘‘or limited liability companies’’ and inserting ‘‘limited liability companies, or such other legal entities as the Secretary considers appropriate’’. 

(b) LIMITATIONS APPLICABLE TO LOAN GUARANTEES.—Section 

304(e) of the Consolidated Farm and Rural Development Act (7 

U.S.C. 1924(e)) is amended by striking ‘‘shall be 75 percent of the 

principal amount of the loan.’’ and inserting ‘‘shall be— 

‘‘(1) 80 percent of the principal amount of the loan; or 

‘‘(2) in the case of a producer that is a qualified socially 

disadvantaged farmer or rancher or a beginning farmer or 

rancher, 90 percent of the principal amount of the loan.’’. 

(c) EXTENSION OF PROGRAM.—Section 304 of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 1924) is amended by 

striking subsection (h) and inserting the following: 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to the Secretary to carry out this section 

$150,000,000 for each of fiscal years 2014 through 2018.’’. 


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SEC. 5003. JOINT FINANCING ARRANGEMENTS. 

Section 307(a)(3) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)) is amended by striking subparagraph (D) and inserting the following: 

‘‘(D) JOINT FINANCING ARRANGEMENTS.—If a direct 

farm ownership loan is made under this subtitle as part of 

a joint financing arrangement and the amount of the direct 

farm ownership loan does not exceed 50 percent of the 

total principal amount financed under the arrangement, 

the interest rate on the direct farm ownership loan shall 

be a rate equal to the greater of— 

‘‘(i) the difference between— 

‘‘(I) 2 percent; and 

‘‘(II) the interest rate for farm ownership 

loans under this subtitle; or 

‘‘(ii) 2.5 percent.’’. 

SEC. 5004. ELIMINATION OF MINERAL RIGHTS APPRAISAL REQUIREMENT. 

Section 307 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1927) is amended— 

(1) by striking subsection (d); and 

(2) by redesignating subsection (e) as subsection (d). 

SEC. 5005. DOWN PAYMENT LOAN PROGRAM. 

(a) IN GENERAL.—Section 310E(b)(1)(C) of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 1935(b)(1)(C)) is 

amended by striking ‘‘$500,000’’ and inserting ‘‘$667,000’’. 

(b) TECHNICAL CORRECTION.—Section 310E(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1935(b)) is 

amended by striking paragraph (2) (as added by section 7(a) of 

Public Law 102–554; 106 Stat. 4145). 

Subtitle B—Operating Loans 

SEC. 5101. ELIGIBILITY FOR FARM OPERATING LOANS. 

Section 311(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(a)) is amended— 

(1) by striking ‘‘(a) IN GENERAL.—The’’ and inserting the 

following: 

‘‘(a) IN GENERAL.— 

‘‘(1) ELIGIBILITY REQUIREMENTS.—The’’; 

(2) in the first sentence, by striking ‘‘and limited liability 

companies’’ and inserting ‘‘ limited liability companies, and 

such other legal entities as the Secretary considers appropriate,’’; 

(3) in the second sentence, by redesignating paragraphs (1) 

through (4) as subparagraphs (A) through (D), respectively; 

(4) in each of the second and third sentences, by striking 

‘‘and limited liability companies’’ each place it appears and inserting ‘‘limited liability companies, and such other legal entities’’; 

(5) in the third sentence— 

(A) by striking ‘‘clause (3)’’ and inserting ‘‘subparagraph (C)’’; and 

(B) by striking ‘‘clause (4)’’ and inserting ‘‘subparagraph (D)’’; and 


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(6) by adding at the end the following: 

‘‘(2) SPECIAL RULE.—An entity that is an operator described in paragraph (1) that is owned, in whole or in part, by 

other entities, shall be considered to meet the direct ownership 

requirement imposed under paragraph (1) if at least 75 percent 

of the ownership interests of each embedded entity of the entity is owned directly or indirectly by the individuals that own 

the family farm.’’. 

SEC. 5102. ELIMINATION OF RURAL RESIDENCY REQUIREMENT FOR 

OPERATING LOANS TO YOUTH. 

Section 311(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)(1)) is amended by striking ‘‘who are 

rural residents’’. 

SEC. 5103. DEFAULTS BY YOUTH LOAN BORROWERS. 

Section 311(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(b)) is amended by adding at the end the 

following: 

‘‘(5) EQUITABLE CONSIDERATIONS FOR DEFAULT.— 

‘‘(A) DEBT FORGIVENESS.— 

‘‘(i) IN GENERAL.—The Secretary may, on a caseby-case basis, provide debt forgiveness to a borrower 

for a loan made under this subsection if the borrower 

was unable to timely repay the loan due to circumstances beyond the control of the borrower, as determined by the Secretary, including any natural disaster, act of terrorism, or other man-made disaster 

that results in an inordinate level of damage or disruption severely affecting the borrower. 

‘‘(ii) ELIGIBILITY FOR FUTURE LOANS.—Notwithstanding any other provision of law, debt forgiveness 

provided under this subparagraph shall not be used by 

any Federal agency in determining the eligibility of 

the borrower for any loan made or guaranteed by the 

agency. 

‘‘(B) EDUCATION LOANS.—Notwithstanding any other 

provision of law, if a borrower becomes delinquent or is 

provided with debt forgiveness with respect to a youth loan 

made under this subsection, the borrower shall not become 

ineligible, as a result of the delinquency or debt forgiveness, to receive loans and loan guarantees from the Federal Government to pay for education expenses of the borrower.’’. 

SEC. 5104. TERM LIMITS ON DIRECT OPERATING LOANS. 

Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended by adding at the end the 

following: 

‘‘(5) ANNUAL REPORT ON TERM LIMITS ON DIRECT OPERATING

LOANS.— 

‘‘(A) IN GENERAL.—The Secretary shall prepare a report annually that describes— 

‘‘(i) the status of the direct operating loan program 

of the Department of Agriculture; and 

‘‘(ii) the impact of term limits on direct loan borrowers. 


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‘‘(B) DEMOGRAPHIC INFORMATION.— 

‘‘(i) IN GENERAL.—The report shall provide a demographic breakdown, on a State-by-State basis, of— 

‘‘(I) all direct loan borrowers; and 

‘‘(II) borrowers that have reached the eligibility limit for direct lending programs during the 

previous calendar year. 

‘‘(ii) DEMOGRAPHIC INFORMATION.—The available 

demographic information shall include, to the maximum extent practicable, a description of race or ethnicity, gender, age, type of farm or ranch, financial 

classification, number of years of indebtedness, veteran status, and other similar information, as determined by the Secretary. 

‘‘(C) ADDITIONAL CONTENT.—In addition to information 

described in subparagraph (B), the report shall provide— 

‘‘(i) a demographic analysis of the borrowers impacted by term limits; 

‘‘(ii) information on the conditions impacting the 

direct lending portfolio of the Department of Agriculture, including impacts by region and agriculture 

sector, and credit availability within those regions and 

sectors; 

‘‘(iii) to the maximum extent practicable, information on the status of borrower operations impacted by 

term limits; and 

‘‘(iv) recommendations, if appropriate, to address 

any identifiable unmet credit needs. 

‘‘(D) SUBMISSION.—The Secretary shall— 

‘‘(i) annually submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the 

Senate a copy of the report; and 

‘‘(ii) make the report available to the public, including posting the report on the website of the Department of Agriculture.’’. 

SEC. 5105. VALUATION OF LOCAL OR REGIONAL CROPS. 

Section 312 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1942) is amended by adding at the end the following: 

‘‘(e) VALUATION OF LOCAL OR REGIONAL CROPS.— ‘‘(1) IN GENERAL.—The Secretary shall develop ways to determine unit prices (or other appropriate forms of valuation) 

for crops and other agricultural products, the end use of which 

is intended to be in locally or regionally produced agricultural 

food products, to facilitate lending to local and regional food 

producers. 

‘‘(2) PRICE HISTORY.—The Secretary shall implement a 

mechanism for local and regional food producers to establish 

price history for the crops and other agricultural products produced by local and regional food producers.’’. 

SEC. 5106. MICROLOANS. 

(a) IN GENERAL.—Section 313 of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1943) is amended by adding at 

the end the following: 


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‘‘(c) MICROLOANS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

may establish a program to make or guarantee microloans. 

‘‘(2) LIMITATIONS.—The Secretary shall not make or guarantee a microloan under this subsection that would cause the 

total principal indebtedness outstanding at any 1 time for 

microloans made under this title to any 1 borrower to exceed 

$50,000. 

‘‘(3) APPLICATIONS.—To the maximum extent practicable, 

the Secretary shall limit the administrative burdens and 

streamline the application and approval process for microloans 

under this subsection. 

‘‘(4) COOPERATIVE LENDING PILOT PROJECTS.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), during 

each of the 2014 through 2018 fiscal years, the Secretary 

may carry out a pilot project to make loans to community 

development financial institutions, as the Secretary determines appropriate— 

‘‘(i) to make or guarantee microloans consistent 

with the terms provided under this subsection; and 

‘‘(ii) to provide business, financial, marketing, and 

credit management services to microloan borrowers. 

‘‘(B) REQUIREMENTS.—Prior to making a loan to an institution described in subparagraph (A), the Secretary 

shall— 

‘‘(i) review and approve— 

‘‘(I) the loan loss reserve fund for microloans 

established by the institution; and 

‘‘(II) the underwriting standards for 

microloans of the institution; and 

‘‘(ii) establish such other requirements for making 

a loan to the institution as the Secretary determines 

necessary. 

‘‘(C) ELIGIBILITY.—To be eligible for a loan under subparagraph (A), an institution described in subparagraph 

(A) shall, as determined by the Secretary— 

‘‘(i) have the legal authority necessary to carry out 

the actions described in subparagraph (A); 

‘‘(ii) have a proven track record of successfully assisting agricultural borrowers; and 

‘‘(iii) have the services of a staff with appropriate 

loan making and servicing expertise. 

‘‘(D) OVERSIGHT.—Not less often than annually, on a 

date determined by the Secretary, an institution that has 

a loan under this paragraph shall provide to the Secretary 

such information as the Secretary may require to ensure 

that the services provided by the institution are serving 

the purposes of this subsection. 

‘‘(E) LIMITATION.—The Secretary shall not make more than $10,000,000 in loans under this paragraph in any fiscal year.’’. 

(b) CONFORMING AMENDMENTS.— (1) Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)) is amended by striking paragraph (2) and inserting the following: 


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‘‘(2) DEFINITION OF DIRECT OPERATING LOAN.—In this subsection, the term ‘direct operating loan’ does not include— 

‘‘(A) a loan made to a youth under subsection (b); or 

‘‘(B) a microloan made to a beginning farmer or rancher or a veteran farmer or rancher (as defined in section 

2501(e) of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279(e)).’’. 

(2) Section 312(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1942(a)) is amended in the matter preceding paragraph (1) by inserting ‘‘(including a microloan, as 

defined by the Secretary)’’ after ‘‘A direct loan’’. 

(3) Section 316(a)(2) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1946(a)(2)) is amended in the matter preceding subparagraph (A) by inserting ‘‘a microloan to a 

beginning farmer or rancher or veteran farmer or rancher (as 

defined in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)), or’’ after ‘‘The 

interest rate on’’. 

SEC. 5107. TERM LIMITS ON GUARANTEED OPERATING LOANS. 

Section 319 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1949) is amended— 

(1) in subsection (a), by striking ‘‘(a) GRADUATION PLAN.— 

’’; and 

(2) by striking subsection (b). 

Subtitle C—Emergency Loans 

SEC. 5201. ELIGIBILITY FOR EMERGENCY LOANS. 

Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended— 

(1) by striking ‘‘owner-operators (in the case of loans for a 

purpose under subtitle A) or operators (in the case of loans for 

a purpose under subtitle B)’’ each place it appears and inserting ‘‘(in the case of farm ownership loans in accordance with 

subtitle A) owner-operators or operators, or (in the case of 

loans for a purpose under subtitle B) operators’’; 

(2) in the first sentence— 

(A) by inserting ‘‘, or such other legal entities as the 

Secretary considers appropriate’’ after ‘‘limited liability 

companies’’ the first place it appears; 

(B) by inserting ‘‘, or other legal entities’’ after ‘‘limited 

liability companies’’ the second place it appears; and 

(C) by striking ‘‘and limited liability companies,’’ and 

inserting ‘‘limited liability companies, and such other legal 

entities’’; 

(3) in the second sentence, by striking ‘‘ownership and operator’’ and inserting ‘‘ownership or operator’’; and 

(4) by adding at the end the following: ‘‘An entity that is 

an owner-operator or operator described in this subsection 

shall be considered to meet the direct ownership requirement 

imposed under this subsection if at least 75 percent of the ownership interests of each embedded entity of the entity is owned 

directly or indirectly by the individuals that own the family 

farm.’’. 


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Subtitle D—Administrative Provisions 

SEC. 5301. BEGINNING FARMER AND RANCHER INDIVIDUAL DEVELOPMENT ACCOUNTS PILOT PROGRAM. 

Section 333B(h) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b(h)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 5302. FARMER LOAN PILOT PROJECTS. 

Subtitle D of the Consolidated Farm and Rural Development 

Act is amended by inserting after section 333C (7 U.S.C. 1983c) the 

following: 

‘‘SEC. 333D. FARMER LOAN PILOT PROJECTS. 

‘‘(a) IN GENERAL.—The Secretary may conduct pilot projects of 

limited scope and duration that are consistent with subtitle A 

through this subtitle to evaluate processes and techniques that 

may improve the efficiency and effectiveness of the programs carried out under subtitle A through this subtitle. 

‘‘(b) NOTIFICATION.—The Secretary shall— 

‘‘(1) not less than 60 days before the date on which the 

Secretary initiates a pilot project under subsection (a), submit 

notice of the proposed pilot project to the Committee on Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate; and 

‘‘(2) consider any recommendations or feedback provided to 

the Secretary in response to the notice provided under paragraph (1).’’. 

SEC. 5303. DEFINITION OF QUALIFIED BEGINNING FARMER OR 

RANCHER. 

(a) IN GENERAL.—Section 343(a)(11) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 1991(a)(11)) is amended in 

subparagraphs (C) and (D)— 

(1) by striking ‘‘or joint operation,’’ each place it appears 

and inserting ‘‘joint operation, or such other legal entity as the 

Secretary considers appropriate,’’; 

(2) by striking ‘‘or joint operators,’’ each place it appears 

and inserting ‘‘joint operators, or owners,’’; and 

(3) in subparagraph (D), by striking ‘‘corporation, has 

stockholders,’’ each place it appears in clauses (i)(II)(bb) and 

(ii)(II)(bb) and inserting ‘‘cooperative, corporation, partnership, 

joint operation, or other such legal entity as the Secretary considers appropriate, has members, stockholders, partners, or 

joint operators,’’. 

(b) MODIFICATION OF ACREAGE OWNERSHIP LIMITATION.—Section 343(a)(11)(F) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking ‘‘median 

acreage’’ and inserting ‘‘average acreage’’. 

SEC. 5304. LOAN AUTHORIZATION LEVELS. 

Section 346(b)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1994(b)(1)) is amended in the matter preceding 

subparagraph (A) by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 5305. LOAN FUND SET-ASIDES. 

Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is amended— 

(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 


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(2) by striking ‘‘of the total amount’’. 

SEC. 5306. BORROWER TRAINING. 

Section 359(c)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2006a(c)(2)) is amended by striking ‘‘section 

302(a)(2) or 311(a)(2)’’ and inserting ‘‘section 302(a)(1)(B) or 

311(a)(1)(B)’’. 

Subtitle E—Miscellaneous 

SEC. 5401. STATE AGRICULTURAL MEDIATION PROGRAMS. 

Section 506 of the Agricultural Credit Act of 1987 (7 U.S.C. 

5106) is amended by striking ‘‘2015’’ and inserting ‘‘2018’’. 

SEC. 5402. LOANS TO PURCHASERS OF HIGHLY FRACTIONATED LAND. 

The first section of Public Law 91–229 (25 U.S.C. 488) is 

amended— 

(1) in subsection (a), in the first sentence, by striking 

‘‘loans from’’ and all that follows through ‘‘1929)’’ and inserting 

‘‘direct loans in a manner consistent with direct loans pursuant 

to subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981 et seq.)’’; and 

(2) in subsection (b)(1)— 

(A) by striking ‘‘pursuant to section 205(c) of the Indian Land Consolidation Act (25 U.S.C. 2204(c))’’; and 

(B) by inserting ‘‘or to intermediaries in order to establish revolving loan funds for the purchase of highly 

fractionated land under that section’’ before the period at 

the end. 

SEC. 5403. REMOVAL OF DUPLICATIVE APPRAISALS. 

Notwithstanding any other law (including regulations), in making loans under the first section of Public Law 91–229 (25 U.S.C. 

488), borrowers who are Indian tribes, members of Indian tribes, 

or tribal corporations shall only be required to obtain 1 appraisal 

under an appraisal standard recognized as of the date of enactment 

of this Act by the Secretary or the Secretary of the Interior. 

SEC. 5404. COMPENSATION DISCLOSURE BY FARM CREDIT SYSTEM INSTITUTIONS. 

(a) FINDINGS.—Congress finds that — 

(1) the reasonable disclosure to stockholders by Farm 

Credit System institutions regarding the compensation of Farm 

Credit System institution senior officers is beneficial to stockholders’ understanding of the operation of their institutions; 

(2) transparency regarding compensation practices reinforces the cooperative nature of Farm Credit System institutions; 

(3) the unique cooperative structure of the Farm Credit 

System should be considered when promulgating rules; 

(4) the participation of stockholders in the election of the 

boards of directors of Farm Credit System institutions provides 

stockholders the opportunity to participate in the management 

of their institutions; 

(5) as representatives of stockholders, the boards of directors of Farm Credit System institutions importantly establish 

and oversee the compensation practices of Farm Credit System 


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institutions to ensure the safe and sound operation of those institutions; and 

(6) any regulation should strengthen and not hinder the 

ability of Farm Credit System boards of directors to oversee 

compensation practices. 

(b) IMPLEMENTATION.—Not later than 60 days after the date of 

enactment of this Act, the Farm Credit Administration shall review 

its rules to reflect Congressional intent that a primary responsibility of the boards of directors of Farm Credit System institutions, 

as elected representatives of their stockholders, is to oversee compensation practices. 

TITLE VI—RURAL DEVELOPMENT 

Subtitle A—Consolidated Farm and Rural Development Act 

SEC. 6001. WATER, WASTE DISPOSAL, AND WASTEWATER FACILITY 

GRANTS. 

Section 306(a)(2)(B)(vii) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6002. ELIMINATION OF RESERVATION OF COMMUNITY FACILITIES GRANT PROGRAM FUNDS. 

Section 306(a)(19) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) is amended by striking subparagraph (C). 

SEC. 6003. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM. 

Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by striking paragraph (22) 

and inserting the following: 

‘‘(22) RURAL WATER AND WASTEWATER CIRCUIT RIDER PRO- GRAM.— 

‘‘(A) IN GENERAL.—The Secretary shall continue a national rural water and wastewater circuit rider program 

that— 

‘‘(i) is consistent with the activities and results of 

the program conducted before the date of enactment of 

this clause, as determined by the Secretary; and 

‘‘(ii) receives funding from the Secretary, acting 

through the Rural Utilities Service. 

‘‘(B) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this paragraph 

$20,000,000 for fiscal year 2014 and each fiscal year thereafter.’’. 

SEC. 6004. USE OF LOAN GUARANTEES FOR COMMUNITY FACILITIES. 

Section 306(a)(24) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(24)) is amended by adding at the end 

the following: 

‘‘(C) USE OF LOAN GUARANTEES FOR COMMUNITY FACILI- TIES.—The Secretary shall consider the benefits to communities that result from using loan guarantees in carrying 

out the community facilities program and, to the maximum extent practicable, use guarantees to enhance community involvement.’’. 


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

Section 306(a)(25)(C) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)(25)(C)) is amended by striking 

‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6006. ESSENTIAL COMMUNITY FACILITIES TECHNICAL ASSISTANCE AND TRAINING. 

Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is amended by adding at the end the 

following: 

‘‘(26) ESSENTIAL COMMUNITY FACILITIES TECHNICAL ASSISTANCE AND TRAINING.— 

‘‘(A) IN GENERAL.—The Secretary may make grants to 

public bodies and private nonprofit corporations (such as 

States, counties, cities, townships, and incorporated towns 

and villages, boroughs, authorities, districts, and Indian 

tribes on Federal and State reservations) that will serve 

rural areas for the purpose of enabling the public bodies 

and private nonprofit corporations to provide to associations described in paragraph (1) technical assistance and 

training, with respect to essential community facilities programs authorized under this subsection— 

‘‘(i) to assist communities in identifying and planning for community facility needs; 

‘‘(ii) to identify public and private resources to finance community facility needs; 

‘‘(iii) to prepare reports and surveys necessary to 

request financial assistance to develop community facilities; 

‘‘(iv) to prepare applications for financial assistance; 

‘‘(v) to improve the management, including financial management, related to the operation of community facilities; or 

‘‘(vi) to assist with other areas of need identified 

by the Secretary. 

‘‘(B) SELECTION PRIORITY.—In selecting recipients of 

grants under this paragraph, the Secretary shall give priority to private, nonprofit, or public organizations that 

have experience in providing technical assistance and 

training to rural entities. 

‘‘(C) FUNDING.—Not less than 3 nor more than 5 percent of any funds appropriated to carry out each of the essential community facilities grant, loan and loan guarantee programs as authorized under this subsection for a 

fiscal year shall be reserved for grants under this paragraph.’’. 

SEC. 6007. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT PROGRAM. 

Section 306A(i)(2) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2018’’. 


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SEC. 6008. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 

ALASKA. 

Section 306D(d)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking ‘‘2012’’ 

and inserting ‘‘2018’’. 

SEC. 6009. HOUSEHOLD WATER WELL SYSTEMS. 

Section 306E(d) of the Consolidated Farm and Rural Develop- ment Act (7 U.S.C. 1926e(d)) is amended by striking ‘‘$10,000,000 

for each of fiscal years 2008 through 2012’’ and inserting 

‘‘$5,000,000 for each of fiscal years 2014 through 2018’’. 

SEC. 6010. RURAL BUSINESS AND INDUSTRY LOAN PROGRAM. 

(a) IN GENERAL.—Section 310B(a)(2)(A) of the Consolidated 

Farm and Rural Development Act (7 U.S.C. 1932(a)(2)(A)) is 

amended by inserting ‘‘(including through the financing of working 

capital)’’ after ‘‘employment’’. 

(b) GREATER FLEXIBILITY FOR ADEQUATE COLLATERAL

THROUGH ACCOUNTS RECEIVABLE.—Section 310B(g)(7) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)(7)) is 

amended— 

(1) by striking ‘‘In determining’’ and inserting the following: 

‘‘(A) IN GENERAL.—In determining’’; and 

(2) by adding at the end the following: 

‘‘(B) ACCOUNTS RECEIVABLE.—In the discretion of the 

Secretary, if the Secretary determines that the action 

would not create or otherwise contribute to an unreasonable risk of default or loss to the Federal Government, the 

Secretary may take accounts receivable as security for the 

obligations entered into in connection with loans and a 

borrower may use accounts receivable as collateral to secure a loan made or guaranteed under this subsection.’’. 

(c) REGULATIONS.—Not later than 180 days after the date of 

enactment of this Act, the Secretary shall promulgate such regulations as are necessary to implement the amendments made by this 

section. 

SEC. 6011. SOLID WASTE MANAGEMENT GRANTS. 

Section 310B(b) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(b)) is amended— 

(1) by striking ‘‘The Secretary’’ and by inserting the following: 

‘‘(1) IN GENERAL.—The Secretary’’; and 

(2) by adding at the end the following 

‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $10,000,000 

for each of fiscal years 2014 through 2018.’’. 

SEC. 6012. RURAL BUSINESS DEVELOPMENT GRANTS. 

(a) IN GENERAL.—Section 310B of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1932) is amended by striking subsection (c) and inserting the following: 

‘‘(c) RURAL BUSINESS DEVELOPMENT GRANTS.— 

‘‘(1) IN GENERAL.—The Secretary may make grants under 

this subsection to eligible entities described in paragraph (2) in 

rural areas that primarily serve rural areas for purposes described in paragraph (3). 


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‘‘(2) ELIGIBLE ENTITIES.—The Secretary may make grants 

under this subsection to— 

‘‘(A) governmental entities; 

‘‘(B) Indian tribes; and 

‘‘(C) nonprofit entities. 

‘‘(3) ELIGIBLE PURPOSES FOR GRANTS.—Eligible entities 

that receive grants under this subsection may use the grant 

funds for— 

‘‘(A) business opportunity projects that— 

‘‘(i) identify and analyze business opportunities; 

‘‘(ii) identify, train, and provide technical assistance to existing or prospective rural entrepreneurs 

and managers; 

‘‘(iii) assist in the establishment of new rural businesses and the maintenance of existing businesses, including through business support centers; 

‘‘(iv) conduct regional, community, and local economic development planning and coordination, and 

leadership development; and 

‘‘(v) establish centers for training, technology, and 

trade that will provide training to rural businesses in 

the use of interactive communications technologies to 

develop international trade opportunities and markets; 

and 

‘‘(B) projects that support the development of business 

enterprises that finance or facilitate— 

‘‘(i) the development of small and emerging private business enterprise; 

‘‘(ii) the establishment, expansion, and operation 

of rural distance learning networks; 

‘‘(iii) the development of rural learning programs 

that provide educational instruction or job training instruction related to potential employment or job advancement to adult students; and 

‘‘(iv) the provision of technical assistance and 

training to rural communities for the purpose of improving passenger transportation services or facilities. 

‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

‘‘(A) IN GENERAL.—There is authorized to be appropriated to the Secretary to carry out this subsection 

$65,000,000 for each of fiscal years 2014 through 2018, to 

remain available until expended. 

‘‘(B) ALLOCATION.—Of the funds made available under 

subparagraph (A) for a fiscal year, not more than 10 percent shall be used for the purposes described in paragraph 

(3)(A).’’. 

(b) CONFORMING AMENDMENT.—Section 306(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1926(a)) is 

amended by striking paragraph (11). 

SEC. 6013. RURAL COOPERATIVE DEVELOPMENT GRANTS. 

Section 310B(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(e)) is amended— 

(1) by redesignating paragraph (12) as paragraph (13); 

(2) by inserting after paragraph (11) the following: 


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‘‘(12) INTERAGENCY WORKING GROUP.—Not later than 90 

days after the date of enactment of the Agricultural Act of 

2014, the Secretary shall coordinate and chair an interagency 

working group to foster cooperative development and ensure 

coordination with Federal agencies and national and local cooperative organizations that have cooperative programs and interests.’’; and 

(3) in paragraph (13) (as so redesignated), by striking 

‘‘$50,000,000 for each of fiscal years 2008 through 2012’’ and 

inserting ‘‘$40,000,000 for each of fiscal years 2014 through 

2018’’. 

SEC. 6014. LOCALLY OR REGIONALLY PRODUCED AGRICULTURAL 

FOOD PRODUCTS. 

Section 310B(g)(9)(B)(v)(I) of the Consolidated Farm and Rural 

Development Act (7 U.S.C. 1932(g)(9)(B)(v)(I)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6015. APPROPRIATE TECHNOLOGY TRANSFER FOR RURAL AREAS 

PROGRAM. 

Section 310B(i)(4) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(i)(4)) is amended by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 

SEC. 6016. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 

Section 310B(j) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(j)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6017. INTERMEDIARY RELENDING PROGRAM. 

(a) IN GENERAL.—Subtitle A of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the following: 

‘‘SEC. 310H. INTERMEDIARY RELENDING PROGRAM. 

‘‘(a) IN GENERAL.—The Secretary may make or guarantee loans 

to eligible entities described in subsection (b) so that the eligible 

entities may relend the funds to individuals and entities for the 

purposes described in subsection (c). 

‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for loans and loan 

guarantees described in subsection (a) are— 

‘‘(1) public agencies; 

‘‘(2) Indian tribes; 

‘‘(3) cooperatives; and 

‘‘(4) nonprofit corporations. 

‘‘(c) ELIGIBLE PURPOSES.—The proceeds from loans made or 

guaranteed by the Secretary pursuant to subsection (a) may be relent by eligible entities for projects that— 

‘‘(1) predominately serve communities in rural areas; and 

‘‘(2) as determined by the Secretary— 

‘‘(A) promote community development; 

‘‘(B) establish new businesses; 

‘‘(C) establish and support microlending programs; and 

‘‘(D) create or retain employment opportunities. 

‘‘(d) LIMITATION.—The Secretary shall not make loans under 

section 623(a) of the Community Economic Development Act of 

1981 (42 U.S.C. 9812(a)). 


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‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this subsection $25,000,000 for each 

of fiscal years 2014 through 2018.’’. 

(b) CONFORMING AMENDMENTS.—Section 1323(b)(2) of the Food 

Security Act of 1985 (Public Law 99–198; 7 U.S.C. 1932 note) is 

amended— 

(1) in subparagraph (A), by adding ‘‘and’’ at the end; 

(2) in subparagraph (B), by striking ‘‘; and’’ and inserting 

a period; and 

(3) by striking subparagraph (C). 

SEC. 6018. RURAL COLLEGE COORDINATED STRATEGY. 

Section 331 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981) is amended by adding at the end the following: 

‘‘(d) RURAL COLLEGE COORDINATED STRATEGY.— 

‘‘(1) IN GENERAL.—The Secretary shall develop a coordinated strategy across the relevant programs within the Rural 

Development mission areas to serve the specific, local needs of 

rural communities when making investments in rural community colleges and technical colleges through other authorities in 

effect on the date of enactment of this subsection. 

‘‘(2) CONSULTATION.—In developing a coordinated strategy, 

the Secretary shall consult with groups representing ruralserving community colleges and technical colleges to coordinate 

critical investments in rural community colleges and technical 

colleges involved in workforce training. 

‘‘(3) ADMINISTRATION.—Nothing in this subsection provides 

a priority for funding under authorities in effect on the date of 

enactment of this subsection. 

‘‘(4) USE.—The Secretary shall use the coordinated strategy and information developed for the strategy to more effectively serve rural communities with respect to investments in 

community colleges and technical colleges.’’. 

SEC. 6019. RURAL WATER AND WASTE DISPOSAL INFRASTRUCTURE. 

Section 333 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1983) is amended— 

(1) in the matter preceding paragraph (1), by striking ‘‘require’’; 

(2) in paragraph (1), by inserting ‘‘require’’ after ‘‘(1)’’; 

(3) in paragraph (2), by inserting ‘‘, require’’ after ‘‘314’’; 

(4) in paragraph (3), by inserting ‘‘require’’ after ‘‘loans,’’; 

(5) in paragraph (4)— 

(A) by inserting ‘‘require’’ after ‘‘(4)’’; and 

(B) by striking ‘‘and’’ after the semicolon; 

(6) in paragraph (5)— 

(A) by inserting ‘‘require’’ after ‘‘(5)’’; and 

(B) by striking the period at the end and inserting ‘‘; 

and’’; and 

(7) by adding at the end the following: 

‘‘(6) in the case of water and waste disposal direct and 

guaranteed loans provided under section 306, encourage, to the 

maximum extent practicable, private or cooperative lenders to 

finance rural water and waste disposal facilities by— 


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‘‘(A) maximizing the use of loan guarantees to finance 

eligible projects in rural communities in which the population exceeds 5,500; 

‘‘(B) maximizing the use of direct loans to finance eligible projects in rural communities if the impact on ratepayers will be material when compared to financing with 

a loan guarantee; 

‘‘(C) establishing and applying a materiality standard 

when determining the difference in impact on ratepayers 

between a direct loan and a loan guarantee; 

‘‘(D) in the case of projects that require interim financing in excess of $500,000, requiring that the projects initially seek the financing from private or cooperative lenders; and 

‘‘(E) determining if an existing direct loan borrower 

can refinance with a private or cooperative lender, including with a loan guarantee, prior to providing a new direct 

loan.’’. 

SEC. 6020. SIMPLIFIED APPLICATIONS. 

(a) IN GENERAL.—Section 333A of the Consolidated Farm and 

Rural Development Act (7 U.S.C. 1983a) is amended by adding at 

the end the following: 

‘‘(h) SIMPLIFIED APPLICATION FORMS.—Except as provided in 

subsection (g)(2), the Secretary shall, to the maximum extent practicable, develop a simplified application process, including a single 

page application if practicable, for grants and relending authorized 

under sections 306, 306C, 306D, 306E, 310B(b), 310B(c), 310B(e), 

310B(f), 310H, 379B, and 379E.’’. 

(b) REPORT TO CONGRESS.—Not later than 2 years after the 

date of enactment of this Act, the Secretary shall submit to the 

Committee on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate a 

report that contains an evaluation of the implementation of the 

amendment made by subsection (a). 

SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP. 

Section 378 of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2008m) is amended— 

(1) in subsection (g)(1), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) in subsection (h), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 6022. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS. 

Section 379B(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008p(d)) is amended by striking subsection (d) 

and inserting the following: 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $1,000,000 for each of 

fiscal years 2014 through 2018.’’. 

SEC. 6023. RURAL MICROENTREPRENEUR ASSISTANCE PROGRAM. 

Section 379E(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s(d)) is amended— 

(1) in paragraph (1)— 


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(A) in subparagraph (A), by striking ‘‘and’’ after the 

semicolon at the end; 

(B) in subparagraph (B), by striking the period at the 

end and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(C) $3,000,000 for each of fiscal years 2014 through 

2018.’’; and 

(2) in paragraph (2), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 6024. HEALTH CARE SERVICES. 

Section 379G(e) of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008u(e)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6025. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT. 

Subtitle D of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1981 et seq.) is amended by adding at the end the 

following: 

‘‘SEC. 379H. STRATEGIC ECONOMIC AND COMMUNITY DEVELOPMENT. 

‘‘(a) IN GENERAL.—In the case of any rural development program described in subsection (d)(2), the Secretary may give priority 

to an application for a project that, as determined and approved by 

the Secretary— 

‘‘(1) meets the applicable eligibility requirements of this 

title; 

‘‘(2) will be carried out solely in a rural area; and 

‘‘(3) supports strategic community and economic development plans on a multijurisdictional basis. 

‘‘(b) RURAL AREA.—For purposes of subsection (a)(2), the Secretary shall consider an application to be for a project that will be 

carried out solely in a rural area only if— 

‘‘(1) in the case of an application for a project in the rural 

community facilities category described in subsection (d)(2)(A), 

the project will be carried out in a rural area described in section 343(a)(13)(C)); 

‘‘(2) in the case of an application for a project in the rural 

utilities category described in subsection (d)(2)(B), the project 

will be carried out in a rural area described in section 

343(a)(13)(B); and 

‘‘(3) in the case of an application for a project in the rural 

business and cooperative development category described in 

subsection (d)(2)(C), the project will be carried out in a rural 

area described in section 343(a)(13)(A). 

‘‘(c) EVALUATION.— 

‘‘(1) IN GENERAL.—In evaluating strategic applications, the 

Secretary shall give a higher priority to strategic applications 

for a plan described in subsection (a) that demonstrates to the 

Secretary— 

‘‘(A) the plan was developed through the collaboration 

of multiple stakeholders in the service area of the plan, including the participation of combinations of stakeholders 

such as State, local, and tribal governments, nonprofit institutions, institutions of higher education, and private entities; 


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‘‘(B) an understanding of the applicable regional resources that could support the plan, including natural resources, human resources, infrastructure, and financial resources; 

‘‘(C) investment from other Federal agencies; 

‘‘(D) investment from philanthropic organizations; and 

‘‘(E) clear objectives for the plan and the ability to establish measurable performance measures and to track 

progress toward meeting the objectives. 

‘‘(2) CONSISTENCY WITH PLANS.—Applications involving 

State, county, municipal, or tribal governments shall include 

an indication of consistency with an adopted regional economic 

or community development plan. 

‘‘(d) FUNDS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (3) and subsection 

(e), the Secretary may reserve for projects that support multijurisdictional strategic community and economic development 

plans described in subsection (a) an amount that does not exceed 10 percent of the funds made available for a fiscal year 

for a functional category described in paragraph (2). 

‘‘(2) FUNCTIONAL CATEGORIES.—The functional categories 

described in this subsection are the following: 

‘‘(A) RURAL COMMUNITY FACILITIES CATEGORY.—The 

rural community facilities category consists of all amounts 

made available for community facility grants and direct 

and guaranteed loans under paragraph (1), (19), (20), (21), 

(24), or (25) of section 306(a). 

‘‘(B) RURAL UTILITIES CATEGORY.—The rural utilities 

category consists of all amounts made available for— 

‘‘(i) water or waste disposal grants or direct or 

guaranteed loans under paragraph (1), (2), or (24) of 

section 306(a); 

‘‘(ii) rural water or wastewater technical assistance and training grants under section 306(a)(14); 

‘‘(iii) emergency community water assistance 

grants under section 306A; or 

‘‘(iv) solid waste management grants under section 

310B(b). 

‘‘(C) RURAL BUSINESS AND COOPERATIVE DEVELOPMENT

CATEGORY.—The rural business and cooperative development category consists of all amounts made available for— 

‘‘(i) business and industry direct and guaranteed 

loans under section 310B(a)(2)(A); or 

‘‘(ii) rural business development grants under section 310B(c). 

‘‘(3) PERIOD.—The reservation of funds described in paragraph (2) may only extend through June 30 of the fiscal year 

in which the funds were first made available. 

‘‘(e) APPROVED APPLICATIONS.— ‘‘(1) IN GENERAL.—Any applicant who submitted a rural 

development application that was approved before the date of 

enactment of this section may amend the application to qualify 

for the funds reserved under subsection (d)(1). 

‘‘(2) RURAL UTILITIES.—Any rural development application 

authorized under section 306(a)(2), 306(a)(14), 306(a)(24), 


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306A, or 310B(b) and approved by the Secretary before the 

date of enactment of this section shall be eligible for the funds 

reserved under subsection (d)(1) on the same basis as the applications submitted under this section until September 30, 

2016.’’. 

SEC. 6026. DELTA REGIONAL AUTHORITY. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 382M(a) of 

the Consolidated Farm and Rural Development Act (7 U.S.C. 

2009aa–12(a)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) TERMINATION OF AUTHORITY.—Section 382N of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa–13) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6027. NORTHERN GREAT PLAINS REGIONAL AUTHORITY. 

(a) AUDIT.—Section 383L(c) of the Consolidated Farm and 

Rural Development Ac (7 U.S.C. 2009bb-10(c)) is amended by inserting ‘‘for any fiscal year for which funds are appropriated’’ after 

‘‘annual basis’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 383N(a) of 

the Consolidated Farm and Rural Development Act (7 U.S.C. 

2009bb–12(a)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(c) TERMINATION OF AUTHORITY.—Section 383O of the Consolidated Farm and Rural Development Act (7 U.S.C. 2009bb–13) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6028. RURAL BUSINESS INVESTMENT PROGRAM. 

Section 384S of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 2009cc–18) is amended by striking ‘‘$50,000,000 for 

the period of fiscal years 2008 through 2012’’ and inserting 

‘‘$20,000,000 for each of fiscal years 2014 through 2018’’. 

Subtitle B—Rural Electrification Act of 1936 

SEC. 6101. FEES FOR CERTAIN LOAN GUARANTEES. 

The Rural Electrification Act of 1936 is amended by inserting 

after section 4 (7 U.S.C. 904) the following: 

‘‘SEC. 5. FEES FOR CERTAIN LOAN GUARANTEES. 

‘‘(a) IN GENERAL.—For electrification baseload generation loan 

guarantees, the Secretary shall, at the request of the borrower, 

charge an upfront fee to cover the costs of the loan guarantee. 

‘‘(b) FEE.—The fee described in subsection (a) for a loan guarantee shall be equal to the costs of the loan guarantee (within the 

meaning of section 502(5)(C) of the Federal Credit Reform Act of 

1990 (2 U.S.C. 661a(5)(C))). 

‘‘(c) LIMITATION.—Funds received from a borrower to pay the 

fee described in this section shall not be derived from a loan or 

other debt obligation that is made or guaranteed by the Federal 

Government.’’. 

SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR TELEPHONE PURPOSES. 

Section 313A(f) of the Rural Electrification Act of 1936 (7 

U.S.C. 940c–1(f)) is amended by striking ‘‘2012’’ and inserting 

‘‘2018’’. 


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SEC. 6103. EXPANSION OF 911 ACCESS. 

Section 315(d) of the Rural Electrification Act of 1936 (7 U.S.C. 

940e(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES 

IN RURAL AREAS. 

(a) IN GENERAL.—Section 601 of the Rural Electrification Act 

of 1936 (7 U.S.C. 950bb) is amended— 

(1) in subsection (c), by striking paragraph (2) and inserting the following: 

‘‘(2) PRIORITY.—In making loans or loan guarantees under 

paragraph (1), the Secretary shall— 

‘‘(A) establish not less than 2 evaluation periods for 

each fiscal year to compare loan and loan guarantee applications and to prioritize loans and loan guarantees to all 

or part of rural communities that do not have residential 

broadband service that meets the minimum acceptable 

level of broadband service established under subsection (e); 

‘‘(B) give the highest priority to applicants that offer 

to provide broadband service to the greatest proportion of 

unserved households or households that do not have residential broadband service that meets the minimum acceptable level of broadband service established under subsection (e), as— 

‘‘(i) certified by the affected community, city, county, or designee; or 

‘‘(ii) demonstrated on— 

‘‘(I) the broadband map of the affected State 

if the map contains address-level data; or 

‘‘(II) the National Broadband Map if addresslevel data is unavailable; and 

‘‘(C) provide equal consideration to all qualified applicants, including applicants that have not previously received loans or loan guarantees under paragraph (1); and 

‘‘(D) give priority to applicants that offer in the applications of the applicants to provide broadband service not 

predominantly for business service, if at least 25 percent 

of the customers in the proposed service territory are commercial interests.’’; 

(2) in subsection (d)— 

(A) in paragraph (1)(A), by striking clause (i) and inserting the following: 

‘‘(i) demonstrate the ability to furnish, improve in 

order to meet the minimum acceptable level of 

broadband service established under subsection (e), or 

extend broadband service to all or part of an unserved 

rural area or an area below the minimum acceptable 

level of broadband service established under subsection (e);’’; 

(B) in paragraph (2)— 

(i) in subparagraph (A), by striking clause (i) and 

inserting the following: 

‘‘(i) not less than 15 percent of the households in 

the proposed service territory are unserved or have 

service levels below the minimum acceptable level of 


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broadband service established under subsection (e); 

and’’; 

(ii) in the heading of subparagraph (B), by striking ‘‘25’’; and 

(iii) in subparagraph (C)— 

(I) in the subparagraph heading, by striking 

‘‘3 OR MORE’’; and 

(II) by striking clause (i) and inserting the following: 

‘‘(i) IN GENERAL.—Except as provided in clause (ii), 

subparagraph (A)(ii) shall not apply to an incumbent 

service provider in the portion of a proposed service 

territory in which the provider is upgrading 

broadband service to meet the minimum acceptable 

level of broadband service established under subsection (e) for the existing territory of the incumbent 

service provider.’’; 

(C) in paragraph (3)(B), by adding at the end the following: 

‘‘(iii) INFORMATION.—Information submitted under 

this subparagraph shall be— 

‘‘(I) certified by the affected community, city, 

county, or designee; or 

‘‘(II) demonstrated on— 

‘‘(aa) the broadband map of the affected 

State if the map contains address-level data; 

or 

‘‘(bb) the National Broadband Map if address-level data is unavailable.’’; 

(D) by striking paragraph (5) and inserting the following: 

‘‘(5) NOTICE REQUIREMENTS.—The Secretary shall promptly 

provide a fully searchable database on the website of the Rural 

Utilities Service that contains, at a minimum— 

‘‘(A) notice of each application for a loan or loan guarantee under this section describing the application, including— 

‘‘(i) the identity of the applicant; 

‘‘(ii) a description of each application, including— 

‘‘(I) each area proposed to be served by the applicant; and 

‘‘(II) the amount and type of support requested by each applicant; 

‘‘(iii) the status of each application; 

‘‘(iv) the estimated number and proportion relative 

to the service territory of households without terrestrial-based broadband service in those areas; and 

‘‘(v) a list of the census block groups or proposed 

service territory, in a manner specified by the Secretary, that the applicant proposes to service; 

‘‘(B) notice of each entity receiving assistance under 

this section, including— 

‘‘(i) the name of the entity; 

‘‘(ii) the type of assistance being received; 


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‘‘(iii) the purpose for which the entity is receiving 

the assistance; 

‘‘(iv) each semiannual report submitted under 

paragraph (8)(A) (redacted to protect any proprietary 

information in the report); and 

‘‘(C) such other information as is sufficient to allow the 

public to understand assistance provided under this section.’’; 

(E) by adding at the end the following: 

‘‘(8) REPORTING.— ‘‘(A) IN GENERAL.—The Secretary shall require any entity receiving assistance under this section to submit a 

semiannual report for 3 years after completion of the 

project, in a format specified by the Secretary, that describes— 

‘‘(i) the use by the entity of the assistance, including new equipment and capacity enhancements that 

support high-speed broadband access for educational 

institutions, health care providers, and public safety 

service providers (including the estimated number of 

end users who are currently using or forecasted to use 

the new or upgraded infrastructure); and 

‘‘(ii) the progress towards fulfilling the objectives 

for which the assistance was granted, including— 

‘‘(I) the number and location of residences and 

businesses that will receive new broadband service, existing network service improvements, and 

facility upgrades resulting from the Federal assistance; 

‘‘(II) the speed of broadband service; 

‘‘(III) the average price of broadband service 

in a proposed service area; 

‘‘(IV) any changes in broadband service adoption rates, including new subscribers generated 

from demand-side projects; and 

‘‘(V) any metrics the Secretary determines to 

be appropriate; 

‘‘(B) ADDITIONAL REPORTING.—The Secretary may require any additional reporting and information by any recipient of any assistance under this section so as to ensure 

compliance with this section. 

‘‘(9) DEFAULT AND DEOBLIGATION.—In addition to other authority under applicable law, the Secretary shall establish 

written procedures for all broadband programs administered 

by the Rural Utilities Service under this or any other Act that, 

to the maximum extent practicable— 

‘‘(A) recover funds from loan defaults; 

‘‘(B) deobligate any awards, less allowable costs that 

demonstrate an insufficient level of performance (including 

metrics determined by the Secretary) or fraudulent spending, to the extent funds with respect to the award are 

available in the account relating to the program established by this section; 

‘‘(C) award those funds, on a competitive basis, to new 

or existing applicants consistent with this section; and 


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‘‘(D) minimize overlap among the programs. 

‘‘(10) SERVICE AREA ASSESSMENT.—The Secretary shall, 

with respect to an application for assistance under this section— 

‘‘(A) provide not less than 15 days for broadband service providers to voluntarily submit information concerning 

the broadband services that the providers offer in the census block groups or tracts described in paragraph (5)(A)(v) 

so that the Secretary may assess whether the applications 

submitted meet the eligibility requirements under this section; and 

‘‘(B) if no broadband service provider submits information under subparagraph (A), consider the number of providers in the census block group or tract to be established 

by using— 

‘‘(i) the most current National Broadband Map of 

the National Telecommunications and Information Administration; or 

‘‘(ii) any other data regarding the availability of 

broadband service that the Secretary may collect or 

obtain through reasonable efforts.’’; 

(3) in subsection (e)— 

(A) by redesignating paragraph (2) as paragraph (3); 

and 

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

‘‘(1) IN GENERAL.—Subject to paragraph (2), for purposes of 

this section, the minimum acceptable level of broadband service for a rural area shall be at least— 

‘‘(A) a 4-Mbps downstream transmission capacity; and 

‘‘(B) a 1-Mbps upstream transmission capacity. 

‘‘(2) ADJUSTMENTS.— 

‘‘(A) IN GENERAL.—At least once every 2 years, the 

Secretary shall review, and may adjust through notice 

published in the Federal Register, the minimum acceptable level of broadband service established under paragraph (1) to ensure that high quality, cost-effective 

broadband service is provided to rural areas over time. 

‘‘(B) CONSIDERATIONS.—In making an adjustment to 

the minimum acceptable level of broadband service under 

subparagraph (A), the Secretary may consider establishing 

different transmission rates for fixed broadband service 

and mobile broadband service.’’; 

(4) in subsection (g), by striking paragraph (2) and inserting the following: 

‘‘(2) TERMS.—In determining the term and conditions of a 

loan or loan guarantee, the Secretary may— 

‘‘(A) consider whether the recipient is or would be 

serving an area that is unserved or has service levels 

below the minimum acceptable level of broadband service 

established under subsection (e); and 

‘‘(B) if the Secretary makes a determination in the affirmative under subparagraph (A), establish a limited initial deferral period or comparable terms necessary to 


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achieve the financial feasibility and long-term sustainability of the project.’’; 

(5) in subsection (j)— 

(A) in paragraph (1), by inserting ‘‘, including any loan 

terms or conditions for which the Secretary provided additional assistance to unserved areas’’ before the semicolon 

at the end; 

(B) in paragraph (5), by striking ‘‘and’’ after the semicolon at the end; 

(C) in paragraph (6), by striking the period at the end 

and inserting ‘‘; and’’; and 

(D) by adding at the end the following: 

‘‘(7) the overall progress towards fulfilling the goal of improving the quality of rural life by expanding rural broadband 

access, as demonstrated by metrics, including— 

‘‘(A) the number of residences and businesses receiving 

new broadband services; 

‘‘(B) network improvements, including facility upgrades and equipment purchases; 

‘‘(C) average broadband speeds and prices on a local 

and statewide basis; 

‘‘(D) any changes in broadband adoption rates; and 

‘‘(E) any specific activities that increased high speed 

broadband access for educational institutions, health care 

providers, and public safety service providers.’’; and 

(6) in subsections (k)(1) and (l), by striking ‘‘2012’’ each 

place it appears and inserting ‘‘2018’’. 

(b) STUDY ON PROVIDING EFFECTIVE DATA FOR NATIONAL

BROADBAND MAP.—. 

(1) IN GENERAL.—The Secretary, in consultation with the 

Secretary of Commerce and the Chairman of the Federal Communications Commission, shall conduct a study of the ways 

that data collected under the broadband programs of the Secretary of Agriculture could be most effectively shared with the 

Commission to support the development and maintenance of 

the National Broadband Map by the Commission. 

(2) INCLUSIONS.—The study shall include a consideration 

of the circumstances under which address-level data could be 

collected by the Secretary and appropriately shared with the 

Commission. 

(3) COMPLETION.—Not later than 180 days after the date 

of enactment of this Act, the Secretary shall complete the 

study required under this subsection. 

(4) REPORT.—Not later than 60 days after the date of completion of the study, the Secretary shall submit a report describing the results of the study to— 

(A) the Committee on Agriculture of the House of Representatives; 

(B) the Committee on Energy and Commerce of the 

House of Representatives; 

(C) the Committee on Agriculture, Nutrition, and Forestry of the Senate; and 

(D) the Committee on Commerce, Science, and Transportation of the Senate. 


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SEC. 6105. RURAL GIGABIT NETWORK PILOT PROGRAM. 

Title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb 

et seq.) is amended by adding at the end the following: 

‘‘SEC. 603. RURAL GIGABIT NETWORK PILOT PROGRAM. 

‘‘(a) DEFINITION OF ULTRA-HIGH SPEED SERVICE.—In this section, the term ‘ultra-high speed service’ means broadband service 

operating at a 1 gigabit per second downstream transmission capacity. 

‘‘(b) PILOT PROGRAM.—The Secretary shall establish a pilot program to be known as the ‘Rural Gigabit Network Pilot Program’, 

under which the Secretary may, at the discretion of the Secretary, 

provide grants, loans, or loan guarantees to eligible entities. 

‘‘(c) ELIGIBILITY.— 

‘‘(1) IN GENERAL.—To be eligible to obtain assistance under 

this section, an entity shall— 

‘‘(A) demonstrate to the Secretary the ability to furnish or extend ultra-high speed service to a rural area; 

‘‘(B) submit to the Secretary an application at such 

time, in such manner, and containing such information as 

the Secretary may require; 

‘‘(C) not already provide ultra-high speed service to a 

rural area within any State in the proposed service territory; and 

‘‘(D) agree to complete buildout of ultra-high speed 

service by not later than 3 years after the initial date on 

which assistance under this section is made available. 

‘‘(2) ELIGIBLE PROJECTS.—Assistance under this section 

may only be used to carry out a project in a proposed service 

territory if— 

‘‘(A) the proposed service territory is a rural area; and 

‘‘(B) ultra-high speed service is not provided in any 

part of the proposed service territory. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $10,000,000 for each of 

fiscal years 2014 through 2018.’’. 

Subtitle C—Miscellaneous 

SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 2335A of the 

Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

950aaa–5) is amended by striking ‘‘$100,000,000 for each of fiscal 

years 1996 through 2012’’ and inserting ‘‘$75,000,000 for each of 

fiscal years 2014 through 2018’’. 

(b) CONFORMING AMENDMENT.—Section 1(b) of Public Law 

102–551 (7 U.S.C. 950aaa note) is amended by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 

SEC. 6202. AGRICULTURAL TRANSPORTATION. 

Section 203(j) of the Agricultural Marketing Act of 1946 (7 

U.S.C. 1622(j)) is amended by striking ‘‘the Interstate Commerce 

Commission, the Maritime Commission,,’’ and inserting ‘‘the Surface Transportation Board, the Federal Maritime Commission,’’. 


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SEC. 6203. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS. 

Section 231(b) of the Agricultural Risk Protection Act of 2000 

(7 U.S.C. 1632a(b)) is amended— 

(1) by striking paragraph (6) and inserting the following: 

‘‘(6) PRIORITY.— 

‘‘(A) ELIGIBLE INDEPENDENT PRODUCERS OF VALUEADDED AGRICULTURAL PRODUCTS.—In awarding grants 

under paragraph (1)(A), the Secretary shall give priority 

to— 

‘‘(i) operators of small- and medium-sized farms 

and ranches that are structured as family farms; 

‘‘(ii) beginning farmers or ranchers; 

‘‘(iii) socially disadvantaged farmers or ranchers; 

and 

‘‘(iv) veteran farmers or ranchers (as defined in 

section 2501(e) of the Food, Agriculture, Conservation, 

and Trade Act of 1990 (7 U.S.C. 2279(e))). 

‘‘(B) ELIGIBLE AGRICULTURAL PRODUCER GROUPS, FARMER OR RANCHER COOPERATIVES, AND MAJORITY-CONTROLLED

PRODUCER-BASED BUSINESS VENTURE.—In awarding grants 

under paragraph (1)(B), the Secretary shall give priority to 

projects (including farmer or rancher cooperative projects) 

that best contribute to creating or increasing marketing 

opportunities for operators, farmers, and ranchers described in subparagraph (A).’’; and 

(2) in paragraph (7)— 

(A) in subparagraph (A)— 

(i) by striking ‘‘On October 1, 2008,’’ and inserting 

‘‘On the date of enactment of the Agricultural Act of 

2014,’’; and 

(ii) by striking ‘‘$15,000,000’’ and inserting ‘‘$63,000,000’’; and 

(B) in subparagraph (B), by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 6204. AGRICULTURE INNOVATION CENTER DEMONSTRATION 

PROGRAM. 

Section 6402(i) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 1632b(i)) is amended by striking ‘‘$6,000,000 for 

each of fiscal years 2008 through 2012’’ and inserting ‘‘$1,000,000 

for each of fiscal years 2014 through 2018’’. 

SEC. 6205. RURAL ENERGY SAVINGS PROGRAM. 

Subtitle E of title VI of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 116 Stat. 424) is amended 

by adding at the end the following: 

‘‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM. 

‘‘(a) PURPOSE.—The purpose of this section is to help rural families and small businesses achieve cost savings by providing loans 

to qualified consumers to implement durable cost-effective energy 

efficiency measures. 

‘‘(b) DEFINITIONS.—In this section: 

‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means— 

‘‘(A) any public power district, public utility district, or 

similar entity, or any electric cooperative described in secVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00217 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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tion 501(c)(12) or 1381(a)(2) of the Internal Revenue Code 

of 1986, that borrowed and repaid, prepaid, or is paying an 

electric loan made or guaranteed by the Rural Utilities 

Service (or any predecessor agency); 

‘‘(B) any entity primarily owned or controlled by 1 or 

more entities described in subparagraph (A); or 

‘‘(C) any other entity that is an eligible borrower of the 

Rural Utilities Service, as determined under section 

1710.101 of title 7, Code of Federal Regulations (or a successor regulation). 

‘‘(2) ENERGY EFFICIENCY MEASURES.—The term ‘energy efficiency measures’ means, for or at property served by an eligible entity, structural improvements and investments in cost-effective, commercial technologies to increase energy efficiency. 

‘‘(3) QUALIFIED CONSUMER.—The term ‘qualified consumer’ 

means a consumer served by an eligible entity that has the 

ability to repay a loan made under subsection (d), as determined by the eligible entity. 

‘‘(4) SECRETARY.—The term ‘Secretary’ means the Secretary of Agriculture, acting through the Administrator of the 

Rural Utilities Service. 

‘‘(c) LOANS TO ELIGIBLE ENTITIES.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary 

shall make loans to eligible entities that agree to use the loan 

funds to make loans to qualified consumers for the purpose of 

implementing energy efficiency measures. 

‘‘(2) REQUIREMENTS.— ‘‘(A) IN GENERAL.—As a condition of receiving a loan 

under this subsection, an eligible entity shall— 

‘‘(i) establish a list of energy efficiency measures 

that is expected to decrease energy use or costs of 

qualified consumers; 

‘‘(ii) prepare an implementation plan for use of the 

loan funds, including use of any interest to be received 

pursuant to subsection (d)(1)(A); 

‘‘(iii) provide for appropriate measurement and 

verification to ensure— 

‘‘(I) the effectiveness of the energy efficiency 

loans made by the eligible entity; and 

‘‘(II) that there is no conflict of interest in carrying out this section; and 

‘‘(iv) demonstrate expertise in effective use of energy efficiency measures at an appropriate scale. 

‘‘(B) REVISION OF LIST OF ENERGY EFFICIENCY MEASURES.—Subject to the approval of the Secretary, an eligible 

entity may update the list required under subparagraph 

(A)(i) to account for newly available efficiency technologies. 

‘‘(C) EXISTING ENERGY EFFICIENCY PROGRAMS.—An eligible entity that, at any time before the date that is 60 

days after the date of enactment of this section, has established an energy efficiency program for qualified consumers may use an existing list of energy efficiency measures, implementation plan, or measurement and 

verification system of that program to satisfy the requirements of subparagraph (A) if the Secretary determines the 


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list, plan, or systems are consistent with the purposes of 

this section. 

‘‘(3) NO INTEREST.—A loan under this subsection shall bear 

no interest. 

‘‘(4) REPAYMENT.—With respect to a loan under paragraph 

(1)— 

‘‘(A) the term shall not exceed 20 years from the date 

on which the loan is closed; and 

‘‘(B) except as provided in paragraph (6), the repayment of each advance shall be amortized for a period not 

to exceed 10 years. 

‘‘(5) AMOUNT OF ADVANCES.—Any advance of loan funds to 

an eligible entity in any single year shall not exceed 50 percent 

of the approved loan amount. 

‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVITIES.— 

‘‘(A) IN GENERAL.—In order to assist an eligible entity 

in defraying the appropriate start-up costs (as determined 

by the Secretary) of establishing new programs or modifying existing programs to carry out subsection (d), the 

Secretary shall allow an eligible entity to request a special 

advance. 

‘‘(B) AMOUNT.—No eligible entity may receive a special 

advance under this paragraph for an amount that is greater than 4 percent of the loan amount received by the eligible entity under paragraph (1). 

‘‘(C) REPAYMENT.—Repayment of the special advance— 

‘‘(i) shall be required during the 10-year period beginning on the date on which the special advance is 

made; and 

‘‘(ii) at the election of the eligible entity, may be 

deferred to the end of the 10-year period. 

‘‘(7) LIMITATION.—All special advances shall be made 

under a loan described in paragraph (1) during the first 10 

years of the term of the loan. 

‘‘(d) LOANS TO QUALIFIED CONSUMERS.— 

‘‘(1) TERMS OF LOANS.—Loans made by an eligible entity to 

qualified consumers using loan funds provided by the Secretary under subsection (c)— 

‘‘(A) may bear interest, not to exceed 3 percent, to be 

used for purposes that include— 

‘‘(i) to establish a loan loss reserve; and 

‘‘(ii) to offset personnel and program costs of eligible entities to provide the loans; 

‘‘(B) shall finance energy efficiency measures for the 

purpose of decreasing energy usage or costs of the qualified consumer by an amount that ensures, to the maximum extent practicable, that a loan term of not more 

than 10 years will not pose an undue financial burden on 

the qualified consumer, as determined by the eligible entity; 

‘‘(C) shall not be used to fund purchases of, or modifications to, personal property unless the personal property 

is or becomes attached to real property (including a manufactured home) as a fixture; 


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‘‘(D) shall be repaid through charges added to the electric bill for the property for, or at which, energy efficiency 

measures are or will be implemented, on the condition that 

this requirement does not prohibit— 

‘‘(i) the voluntary prepayment of a loan by the 

owner of the property; or 

‘‘(ii) the use of any additional repayment mechanisms that are— 

‘‘(I) demonstrated to have appropriate risk 

mitigation features, as determined by the eligible 

entity; or 

‘‘(II) required if the qualified consumer is no 

longer a customer of the eligible entity; and 

‘‘(E) shall require an energy audit by an eligible entity 

to determine the impact of proposed energy efficiency 

measures on the energy costs and consumption of the 

qualified consumer. 

‘‘(2) CONTRACTORS.—In addition to any other qualified general contractor, eligible entities may serve as general contractors. 

‘‘(e) CONTRACT FOR MEASUREMENT AND VERIFICATION, TRAINING, AND TECHNICAL ASSISTANCE.— 

‘‘(1) IN GENERAL.—Not later than 90 days after the date of 

enactment of this section, the Secretary— 

‘‘(A) shall establish a plan for measurement and 

verification, training, and technical assistance of the program; and 

‘‘(B) may enter into 1 or more contracts with a qualified entity for the purposes of— 

‘‘(i) providing measurement and verification activities; and 

‘‘(ii) developing a program to provide technical assistance and training to the employees of eligible entities to carry out this section. 

‘‘(2) USE OF SUBCONTRACTORS AUTHORIZED.—A qualified 

entity that enters into a contract under paragraph (1) may use 

subcontractors to assist the qualified entity in carrying out the 

contract. 

‘‘(f) ADDITIONAL AUTHORITY.—The authority provided in this 

section is in addition to any other authority of the Secretary to 

offer loans under any other law. 

‘‘(g) EFFECTIVE PERIOD.—Subject to the availability of funds 

and except as otherwise provided in this section, the loans and 

other expenditures required to be made under this section shall be 

available until expended, with the Secretary authorized to make 

new loans as loans are repaid. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $75,000,000 for each of 

fiscal years 2014 through 2018.’’. 

SEC. 6206. STUDY OF RURAL TRANSPORTATION ISSUES. 

(a) IN GENERAL.—The Secretary of Agriculture and the Secretary of Transportation shall publish an updated version of the 

study described in section 6206 of the Food, Conservation, and Energy Act of 2008 (as amended by subsection (b)). 


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(b) ADDITION TO STUDY.—Section 6206(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 

1971) is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking the period at the end and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(5) the sufficiency of infrastructure along waterways in 

the United States and the impact of the infrastructure on the 

movement of agricultural goods in terms of safety, efficiency 

and speed, as well as the benefits derived through upgrades 

and repairs to locks and dams.’’. 

(c) REPORT TO CONGRESS.—Not later than 1 year after the date 

of enactment of this Act, the Secretary of Agriculture and the Secretary of Transportation shall submit to Congress the updated 

version of the study required by subsection (a). 

SEC. 6207. REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT. 

Section 15751 of title 40, United States Code, is amended— 

(1) in subsection (a), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) in subsection (b)— 

(A) by striking ‘‘Not more than’’ and inserting the following: 

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), not 

more than’’; and 

(B) by adding at the end the following: 

‘‘(2) LIMITED FUNDING.—In a case in which less than 

$10,000,000 is made available to a Commission for a fiscal year 

under this section, paragraph (1) shall not apply.’’. 

SEC. 6208. DEFINITION OF RURAL AREA FOR PURPOSES OF THE HOUSING ACT OF 1949. 

The second sentence of section 520 of the Housing Act of 1949 

(42 U.S.C. 1490) is amended— 

(1) by striking ‘‘1990 or 2000 decennial census shall continue to be so classified until the receipt of data from the decennial census in the year 2010’’ and inserting ‘‘1990, 2000, or 

2010 decennial census, and any area deemed to be a ‘rural 

area’ for purposes of this title under any other provision of law 

at any time during the period beginning January 1, 2000, and 

ending December 31, 2010, shall continue to be so classified 

until the receipt of data from the decennial census in the year 

2020’’; and 

(2) by striking ‘‘25,000’’ and inserting ‘‘35,000’’. 

SEC. 6209. PROGRAM METRICS. 

(a) IN GENERAL.—The Secretary shall collect data regarding 

economic activities created through grants and loans, including any 

technical assistance provided as a component of the grant or loan 

program, and measure the short- and long-term viability of award 

recipients and any entities to whom those recipients provide assistance using award funds, under— 

(1) section 231 of the Agricultural Risk Protection Act of 

2000 (7 U.S.C. 1632a); 


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(2) section 313(b)(2) of the Rural Electrification Act of 1936 

(7 U.S.C. 940c(b)(2)); or 

(3) section 310B(c), 310B(e), 310B(g), 310H, or 379E, or 

subtitle E, of the Consolidated Farm and Rural Development 

Act (7 U.S.C. 1932(c), 1932(e), 1932(g), 2008s, 2009 et seq.). 

(b) DATA.—The data collected under subsection (a) shall include information collected from recipients both during the award 

period and for a period of time, as determined by the Secretary, 

which is not less than 2 years after the award period ends. 

(c) REPORT.— (1) IN GENERAL.—Not later than 4 years after the date of 

enactment of this Act, and every 2 years thereafter, the Secretary shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report that contains 

the data described in subsection (a). 

(2) DETAILED INFORMATION.—The report shall include detailed information regarding— 

(A) actions taken by the Secretary to use the data; 

(B) the percentage increase of employees; 

(C) the number of business starts and clients served; 

(D) any benefit, such as an increase in revenue or customer base; and 

(E) such other information as the Secretary considers 

appropriate. 

SEC. 6210. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND 

GRANT APPLICATIONS. 

(a) IN GENERAL.—The Secretary shall use funds made available under subsection (b) to provide funds for applications that are 

pending on the date of enactment of this Act in accordance with the 

terms and conditions of section 6029 of the Food, Conservation, and 

Energy Act of 2008 (Public Law 110–246; 122 Stat. 1955). 

(b) FUNDING.—Notwithstanding any other provision of law, beginning in fiscal year 2014, of the funds of the Commodity Credit 

Corporation, the Secretary shall use to carry out this section 

$150,000,000, to remain available until expended. 

TITLE VII—RESEARCH, EXTENSION, AND RELATED 

MATTERS 

Subtitle A—National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 

SEC. 7101. OPTION TO BE INCLUDED AS NON-LAND-GRANT COLLEGE 

OF AGRICULTURE. 

Section 1404 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103) is amended— 

(1) by striking paragraph (5) and inserting the following 

new paragraph: 

‘‘(5) COOPERATING FORESTRY SCHOOL.— 

‘‘(A) IN GENERAL.—The term ‘cooperating forestry 

school’ means an institution— 

‘‘(i) that is eligible to receive funds under Public 

Law 87–788 (commonly known as the McIntire-Stennis Cooperative Forestry Act; 16 U.S.C. 582a et seq.); 

and 


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‘‘(ii) with respect to which the Secretary has not 

received a declaration of the intent of that institution 

to not be considered a cooperating forestry school. 

‘‘(B) TERMINATION OF DECLARATION.—A declaration of 

the intent of an institution to not be considered a cooperating forestry school submitted to the Secretary shall be in 

effect until September 30, 2018.’’; 

(2) in paragraph (10)— 

(A) in subparagraph (A)— 

(i) in the matter preceding clause (i), by striking 

‘‘that’’; 

(ii) in clause (i)— 

(I) by inserting ‘‘that’’ before ‘‘qualify’’; and 

(II) by striking ‘‘and’’ at the end; 

(iii) in clause (ii)— 

(I) by inserting ‘‘that’’ before ‘‘offer’’; and 

(II) by striking the period at the end and inserting ‘‘; and’’; and 

(iv) by adding at the end the following new clause: 

‘‘(iii) with respect to which the Secretary has not 

received a declaration of the intent of a college or university to not be considered a Hispanic-serving agricultural college or university.’’; and 

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

‘‘(C) TERMINATION OF DECLARATION OF INTENT.—A declaration of the intent of a college or university to not be 

considered a Hispanic-serving agricultural college or university submitted to the Secretary shall be in effect until 

September 30, 2018.’’; and 

(3) in paragraph (14)— 

(A) in subparagraph (A), by striking ‘‘agriculture or 

forestry’’ and inserting ‘‘food and agricultural sciences’’; 

(B) by redesignating subparagraph (B) as subparagraph (C); and 

(C) by inserting after subparagraph (A) the following 

new subparagraph: 

‘‘(B) DESIGNATION.—Not later than 90 days after the 

date of the enactment of this subparagraph, the Secretary 

shall establish an ongoing process through which public 

colleges or universities may apply for designation as an 

NLGCA Institution.’’. 

SEC. 7102. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND ECONOMICS ADVISORY BOARD. 

(a) EXTENSION OF TERMINATION DATE.—Section 1408(h) of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3123(h)) is amended by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 

(b) DUTIES OF NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 

EDUCATION, AND ECONOMICS ADVISORY BOARD.—Section 1408(c) of 

the National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3123(c)) is amended— 

(1) in paragraph (1)— 

(A) by striking ‘‘Committee on Appropriations of the 

Senate’’ and all that follows through the semi-colon and inVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00223 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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serting ‘‘Committee on Appropriations of the Senate on— 

’’; and 

(B) by adding at the end the following new subparagraphs: 

‘‘(A) long-term and short-term national policies and 

priorities consistent with the purposes specified in section 

1402 for agricultural research, extension, education, and 

economics; and 

‘‘(B) the annual establishment of priorities that— 

‘‘(i) are in accordance with the purposes specified 

in a provision of a covered law (as defined in subsection (d) of section 1492) under which competitive 

grants (described in subsection (c) of such section) are 

awarded; and 

‘‘(ii) the Board determines are national priorities.’’; 

(2) in paragraph (3), by striking ‘‘and’’ at the end; 

(3) in paragraph (4)— 

(A) in subparagraph (B), by striking ‘‘the national research policies and priorities set forth in’’ inserting ‘‘national research policies and priorities that are consistent 

with the purposes specified in’’; and 

(B) in subparagraph (C), by striking the period at the 

end and inserting ‘‘; and’’; and 

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

‘‘(5) consult with industry groups on agricultural research, 

extension, education, and economics, and make recommendations to the Secretary based on that consultation.’’. 

SEC. 7103. SPECIALTY CROP COMMITTEE. 

(a) ESTABLISHMENT OF SUBCOMMITTEE.—Section 1408A(a) of 

the National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3123a(a)) is amended— 

(1) by striking ‘‘Not later than’’ and inserting the following: 

‘‘(1) IN GENERAL.—Not later than’’; and 

(2) by adding at the end the following new paragraph: 

‘‘(2) CITRUS DISEASE SUBCOMMITTEE.— ‘‘(A) IN GENERAL.—Not later than 45 days after the 

date of the enactment of the Agricultural Act of 2014, the 

Secretary shall establish within the speciality crops committee, and appoint the initial members of, a citrus disease 

subcommittee to carry out the responsibilities of the subcommittee described in subsection (g) in accordance with 

subsection (j)(3) of section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 

U.S.C. 7632). 

‘‘(B) COMPOSITION.—The citrus disease subcommittee 

shall be composed of 9 members, each of whom is a domestic producer of citrus in a State, represented as follows: 

‘‘(i) Three of such members shall represent Arizona or California. 

‘‘(ii) Five of such members shall represent Florida. 

‘‘(iii) One of such members shall represent Texas. 

‘‘(C) MEMBERSHIP.—The Secretary may appoint individuals who are not members of the specialty crops committee or the Advisory Board established under section 

1408 as members of the citrus disease subcommittee 


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‘‘(D) TERMINATION.—The subcommittee established 

under subparagraph (A) shall terminate on September 30, 

2018. 

‘‘(E) FEDERAL ADVISORY COMMITTEE ACT.—The subcommittee established under subparagraph (A) shall be 

covered by the exemption to section 9(c) of the Federal Advisory Committee Act (5 U.S.C. App.) applicable to the Advisory Board under section 1408(f).’’. 

(b) MEMBERS.—Section 1408A(b) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3123a(b)) is amended— 

(1) by striking ‘‘Individuals’’ and inserting the following: 

‘‘(1) ELIGIBILITY.—Individuals’’; 

(2) by striking ‘‘Members’’ and inserting the following: 

‘‘(2) SERVICE.—Members’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(3) DIVERSITY.—Membership of the specialty crops committee shall reflect diversity in the specialty crops represented.’’. 

(c) ANNUAL COMMITTEE REPORT.—Section 1408A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3123a(c)) is amended— 

(1) in paragraph (1), by striking ‘‘Measures’’ and inserting 

‘‘Programs’’; 

(2) by striking paragraph (2); 

(3) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively; 

(4) in paragraph (2) (as so redesignated)— 

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

striking ‘‘Programs that would’’ and inserting ‘‘Research, 

extension, and teaching programs designed to improve 

competitiveness in the specialty crop industry, including 

programs that would’’; 

(B) in subparagraph (D), by inserting ‘‘, including improving the quality and taste of processed specialty crops’’ 

before the semicolon; and 

(C) in subparagraph (G), by inserting ‘‘the remote 

sensing and the’’ before ‘‘mechanization’’; and 

(5) by adding at the end the following: 

‘‘(5) Analysis of the alignment of specialty crops committee 

recommendations with grants awarded through the specialty 

crop research initiative established under section 412 of the 

Agricultural Research, Extension, and Education Reform Act of 

1998 (7 U.S.C. 7632).’’. 

(d) CONSULTATION WITH SPECIALTY CROP INDUSTRY.—Section 

1408A of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3123a) is amended— 

(1) by redesignating subsections (d) and (e) as subsections 

(e) and (f), respectively; 

(2) by inserting after subsection (c) the following: 

‘‘(d) CONSULTATION WITH SPECIALTY CROP INDUSTRY.—In 

studying the scope and effectiveness of programs under subsection 

(a), the specialty crops committee shall consult on an ongoing basis 

with diverse sectors of the specialty crop industry.’’; and 


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(3) in subsection (f) (as redesignated by paragraph (1)), by 

striking ‘‘subsection (d)’’ and inserting ‘‘subsection (e)’’. 

(e) DUTIES OF CITRUS DISEASE SUBCOMMITTEE.—Section 1408A 

of the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3123a), as amended by subsection (d), 

is further amended by adding at the end the following new subsection: 

‘‘(g) CITRUS DISEASE SUBCOMMITTEE DUTIES.—For the purposes 

of subsection (j) of section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632), the citrus 

disease subcommittee shall— 

‘‘(1) advise the Secretary on citrus research, extension, and 

development needs; 

‘‘(2) propose, by a favorable vote of two-thirds of the members of the subcommittee, a research and extension agenda and 

annual budgets for the funds made available to carry out such 

subsection; 

‘‘(3) evaluate and review ongoing research and extension 

funded under the emergency citrus disease research and extension program (as defined in such subsection); 

‘‘(4) establish, by a favorable vote of two-thirds of the 

members of the subcommittee, annual priorities for the award 

of grants under such subsection; 

‘‘(5) provide the Secretary any comments on grants awarded under such subsection during the previous fiscal year; and 

‘‘(6) engage in regular consultation and collaboration with 

the Department and other institutional, governmental, and private persons conducting scientific research on, and extension 

activities related to, the causes or treatments of citrus diseases 

and pests, both domestic and invasive, for purposes of— 

‘‘(A) maximizing the effectiveness of research and extension projects funded under the citrus disease research 

and extension program; 

‘‘(B) hastening the development of useful treatments; 

‘‘(C) avoiding duplicative and wasteful expenditures; 

and 

‘‘(D) providing the Secretary with such information 

and advice as the Secretary may request.’’. 

SEC. 7104. VETERINARY SERVICES GRANT PROGRAM. 

The National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 is amended by inserting after section 1415A (7 

U.S.C. 3151a) the following new section: 

‘‘SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) QUALIFIED ENTITY.—The term ‘qualified entity’ 

means— 

‘‘(A) a for-profit or nonprofit entity located in the 

United States that, or an individual who, operates a veterinary clinic providing veterinary services— 

‘‘(i) in a rural area, as defined in section 343(a) of 

the Consolidated Farm and Rural Development Act (7 

U.S.C. 1991(a)); and 

‘‘(ii) in a veterinarian shortage situation; 


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‘‘(B) a State, national, allied, or regional veterinary organization or specialty board recognized by the American 

Veterinary Medical Association; 

‘‘(C) a college or school of veterinary medicine accredited by the American Veterinary Medical Association; 

‘‘(D) a university research foundation or veterinary 

medical foundation; 

‘‘(E) a department of veterinary science or department 

of comparative medicine accredited by the Department of 

Education; 

‘‘(F) a State agricultural experiment station; or 

‘‘(G) a State, local, or tribal government agency. 

‘‘(2) VETERINARIAN SHORTAGE SITUATION.—The term ‘veterinarian shortage situation’ means a veterinarian shortage 

situation as determined by the Secretary under section 1415A. 

‘‘(b) ESTABLISHMENT.— 

‘‘(1) COMPETITIVE GRANTS.—The Secretary shall carry out 

a program to make competitive grants to qualified entities that 

carry out programs or activities described in paragraph (2) for 

the purpose of developing, implementing, and sustaining veterinary services. 

‘‘(2) ELIGIBILITY REQUIREMENTS.—A qualified entity shall 

be eligible to receive a grant described in paragraph (1) if the 

entity carries out programs or activities that the Secretary determines will— 

‘‘(A) substantially relieve veterinarian shortage situations; 

‘‘(B) support or facilitate private veterinary practices 

engaged in public health activities; or 

‘‘(C) support or facilitate the practices of veterinarians 

who are providing or have completed providing services 

under an agreement entered into with the Secretary under 

section 1415A(a)(2). 

‘‘(c) AWARD PROCESSES AND PREFERENCES.— 

‘‘(1) APPLICATION, EVALUATION, AND INPUT PROCESSES.—In 

administering the grant program established under this section, the Secretary shall— 

‘‘(A) use an appropriate application and evaluation 

process, as determined by the Secretary; and 

‘‘(B) seek the input of interested persons. 

‘‘(2) COORDINATION PREFERENCE.—In selecting recipients of 

grants to be used for any of the purposes described in subsection (d)(1), the Secretary shall give a preference to qualified 

entities that provide documentation of coordination with other 

qualified entities, with respect to any such purpose. 

‘‘(3) CONSIDERATION OF AVAILABLE FUNDS.—In selecting recipients of grants to be used for any of the purposes described 

in subsection (d), the Secretary shall take into consideration 

the amount of funds available for grants and the purposes for 

which the grant funds will be used. 

‘‘(4) NATURE OF GRANTS.—A grant awarded under this section shall be considered to be a competitive research, extension, or education grant. 

‘‘(d) USE OF GRANTS TO RELIEVE VETERINARIAN SHORTAGE SITUATIONS AND SUPPORT VETERINARY SERVICES.— 


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‘‘(1) IN GENERAL.—Except as provided in paragraph (2), a 

qualified entity may use funds provided by a grant awarded 

under this section to relieve veterinarian shortage situations 

and support veterinary services for any of the following purposes: 

‘‘(A) To promote recruitment (including for programs 

in secondary schools), placement, and retention of veterinarians, veterinary technicians, students of veterinary 

medicine, and students of veterinary technology. 

‘‘(B) To allow veterinary students, veterinary interns, 

externs, fellows, and residents, and veterinary technician 

students to cover expenses (other than the types of expenses described in section 1415A(c)(5)) to attend training 

programs in food safety or food animal medicine. 

‘‘(C) To establish or expand accredited veterinary education programs (including faculty recruitment and retention), veterinary residency and fellowship programs, or veterinary internship and externship programs carried out in 

coordination with accredited colleges of veterinary medicine. 

‘‘(D) To provide continuing education and extension, 

including veterinary telemedicine and other distance-based 

education, for veterinarians, veterinary technicians, and 

other health professionals needed to strengthen veterinary 

programs and enhance food safety. 

‘‘(E) To provide technical assistance for the preparation of applications submitted to the Secretary for designation as a veterinarian shortage situation under this section 

or section 1415A. 

‘‘(2) QUALIFIED ENTITIES OPERATING VETERINARY CLINICS.— 

A qualified entity described in subsection (a)(1)(A) may only 

use funds provided by a grant awarded under this section to 

establish or expand veterinary practices, including— 

‘‘(A) equipping veterinary offices; 

‘‘(B) sharing in the reasonable overhead costs of such 

veterinary practices, as determined by the Secretary; or 

‘‘(C) establishing mobile veterinary facilities in which 

a portion of the facilities will address education or extension needs. 

‘‘(e) SPECIAL REQUIREMENTS FOR CERTAIN GRANTS.— 

‘‘(1) TERMS OF SERVICE REQUIREMENTS.— 

‘‘(A) IN GENERAL.—Funds provided through a grant 

made under this section to a qualified entity described in 

subsection (a)(1)(A) and used by such entity under subsection (d)(2) shall be subject to an agreement between the 

Secretary and such entity that includes a required term of 

service for such entity (including a qualified entity operating as an individual), as established by the Secretary. 

‘‘(B) CONSIDERATIONS.—In establishing a term of service under subparagraph (A), the Secretary shall consider 

only— 

‘‘(i) the amount of the grant awarded; and 

‘‘(ii) the specific purpose of the grant. 

‘‘(2) BREACH REMEDIES.— 


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‘‘(A) IN GENERAL.—An agreement under paragraph (1) 

shall provide remedies for any breach of the agreement by 

the qualified entity referred to in paragraph (1)(A), including repayment or partial repayment of the grant funds, 

with interest. 

‘‘(B) WAIVER.—The Secretary may grant a waiver of 

the repayment obligation for breach of contract if the Secretary determines that such qualified entity demonstrates 

extreme hardship or extreme need. 

‘‘(C) TREATMENT OF AMOUNTS RECOVERED.—Funds recovered under this paragraph shall— 

‘‘(i) be credited to the account available to carry 

out this section; and 

‘‘(ii) remain available until expended without further appropriation. 

‘‘(f) PROHIBITION ON USE OF GRANT FUNDS FOR CONSTRUCTION.—Except as provided in subsection (d)(2), funds made available for grants under this section may not be used— 

‘‘(1) to construct a new building or facility; or 

‘‘(2) to acquire, expand, remodel, or alter an existing building or facility, including site grading and improvement and architect fees. 

‘‘(g) REGULATIONS.—Not later than 1 year after the date of the 

enactment of this section, the Secretary shall promulgate regulations to carry out this section. 

‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary to carry out this section 

$10,000,000 for fiscal year 2014 and each fiscal year thereafter, to 

remain available until expended.’’. 

SEC. 7105. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURE 

SCIENCES EDUCATION. 

Section 1417(m) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(m)) is amended by striking ‘‘section $60,000,000’’ and all that follows and inserting the following: ‘‘section— 

‘‘(1) $60,000,000 for each of fiscal years 1990 through 2013; 

and 

‘‘(2) $40,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7106. AGRICULTURAL AND FOOD POLICY RESEARCH CENTERS. 

Section 1419A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is amended— 

(1) in the section heading, by inserting ‘‘AGRICULTURAL

AND FOOD’’ before ‘‘POLICY’’; 

(2) in subsection (a), in the matter preceding paragraph 

(1)— 

(A) by striking ‘‘Secretary may’’ and inserting ‘‘Secretary shall, acting through the Office of the Chief Economist,’’; and 

(B) by striking ‘‘make grants, competitive grants, and 

special research grants to, and enter into cooperative 

agreements and other contracting instruments with,’’ and 

inserting ‘‘make competitive grants to, or enter into cooperative agreements with,’’; 


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(3) by striking subsection (b) and inserting the following 

new subsection: 

‘‘(b) ELIGIBLE RECIPIENTS.—An entity eligible to apply for funding under subsection (a) is a State agricultural experiment station, 

college or university, or other public research institution or organization that has a history of providing— 

‘‘(1) unbiased, nonpartisan economic analysis to Congress 

on the areas specified in paragraphs (1) through (4) of subsection (a); or 

‘‘(2) objective, scientific information to Federal agencies 

and the public to support and enhance efficient, accurate implementation of Federal drought preparedness and drought response programs, including interagency thresholds used to determine eligibility for mitigation or emergency assistance.’’; 

(4) by redesignating subsections (c) and (d) as subsections 

(d) and (e), respectively; 

(5) by inserting after subsection (b) the following new subsection: 

‘‘(c) PREFERENCE.—In making awards under this section, the 

Secretary shall give a preference to policy research centers that 

have— 

‘‘(1) extensive databases, models, and demonstrated experience in providing Congress with agricultural market projections, rural development analysis, agricultural policy analysis, 

and baseline projections at the farm, multiregional, national, 

and international levels; or 

‘‘(2) information, analysis, and research relating to drought 

mitigation.’’; 

(6) in subsection (d)(2) (as redesignated by paragraph (4)), 

by inserting ‘‘applied’’ after ‘‘theoretical and’’; and 

(7) by striking subsection (e) (as redesignated by paragraph (4)) and inserting the following new subsection: 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section $10,000,000 for 

each of fiscal years 2014 through 2018.’’. 

SEC. 7107. EDUCATION GRANTS TO ALASKA NATIVE SERVING INSTITUTIONS AND NATIVE HAWAIIAN SERVING INSTITUTIONS. 

Section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156) is amended— 

(1) in subsection (a)— 

(A) in paragraph (1), by striking ‘‘(or grants without 

regard to any requirement for competition)’’; and 

(B) in paragraph (3), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘(or grants without 

regard to any requirement for competition)’’; and 

(B) in paragraph (3), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

SEC. 7108. REPEAL OF HUMAN NUTRITION INTERVENTION AND 

HEALTH PROMOTION RESEARCH PROGRAM. 

Section 1424 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3174) is repealed. 


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SEC. 7109. REPEAL OF PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL RESEARCH. 

Section 1424A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a) is repealed. 

SEC. 7110. NUTRITION EDUCATION PROGRAM. 

Section 1425(f) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3175(f)) is amended 

by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7111. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 

PROGRAMS. 

(a) IN GENERAL.—Section 1433 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) 

is amended to read as follows: 

‘‘SEC. 1433. CONTINUING ANIMAL HEALTH AND DISEASE, FOOD SECURITY, AND STEWARDSHIP RESEARCH, EDUCATION, AND 

EXTENSION PROGRAMS. 

‘‘(a) CAPACITY AND INFRASTRUCTURE PROGRAM.— ‘‘(1) IN GENERAL.—In each State with one or more accredited colleges of veterinary medicine, the deans of the accredited 

college or colleges and the director of the State agricultural experiment station shall develop a comprehensive animal health 

and disease research program for the State based on the animal health research capacity of each eligible institution in the 

State, which shall be submitted to the Secretary for approval 

and shall be used for the allocation of funds available to the 

State under this section. 

‘‘(2) USE OF FUNDS.—An eligible institution allocated funds 

to carry out animal health and disease research under this section may only use such funds— 

‘‘(A) to meet the expenses of conducting animal health 

and disease research, publishing and disseminating the results of such research, and contributing to the retirement 

of employees subject to the Act of March 4, 1940 (7 U.S.C. 

331); 

‘‘(B) for administrative planning and direction; and 

‘‘(C) to purchase equipment and supplies necessary for 

conducting research described in subparagraph (A). 

‘‘(3) COOPERATION AMONG ELIGIBLE INSTITUTIONS.—The 

Secretary, to the maximum extent practicable, shall encourage 

eligible institutions to cooperate in setting research priorities 

under this section through conducting regular regional and national meetings. 

‘‘(b) COMPETITIVE GRANT PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary, for purposes of addressing the critical needs of animal agriculture, shall award competitive grants to eligible entities under which such eligible entities— 

‘‘(A) conduct research— 

‘‘(i) to promote food security, such as by— 

‘‘(I) improving feed efficiency; 

‘‘(II) improving energetic efficiency; 

‘‘(III) connecting genomics, proteomics, 

metabolomics and related phenomena to animal 

production; 

‘‘(IV) improving reproductive efficiency; and 


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‘‘(V) enhancing pre- and post-harvest food 

safety systems; and 

‘‘(ii) on the relationship between animal and 

human health, such as by— 

‘‘(I) exploring new approaches for vaccine development; 

‘‘(II) understanding and controlling zoonosis, 

including its impact on food safety; 

‘‘(III) improving animal health through feed; 

and 

‘‘(IV) enhancing product quality and nutritive 

value; and 

‘‘(B) develop and disseminate to the public tools and 

information based on the research conducted under subparagraph (A) and sound science. 

‘‘(2) ELIGIBLE ENTITIES.—An entity eligible to receive a 

grant under this subsection is any of the following: 

‘‘(A) A State cooperative institution. 

‘‘(B) An NLGCA Institution. 

‘‘(3) ADMINISTRATION.—In carrying out this subsection, the 

Secretary shall establish procedures— 

‘‘(A) to seek and accept proposals for grants; 

‘‘(B) to review and determine the relevance and merit 

of proposals, in consultation with representatives of the 

animal agriculture industry; 

‘‘(C) to provide a scientific peer review of each proposal 

conducted by a panel of subject matter experts from Federal agencies, academic institutions, State animal health 

agencies, and the animal agriculture industry; and 

‘‘(D) to award competitive grants on the basis of merit, 

quality, and relevance. 

‘‘(c) FUNDING.— 

‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section 

$25,000,000 for each of fiscal years 2014 through 2018. 

‘‘(2) RESERVATION OF FUNDS.—The Secretary shall reserve not less than $5,000,000 of the funds made available under 

paragraph (1) to carry out the capacity and infrastructure program under subsection (a). 

‘‘(3) INITIAL APPORTIONMENT.—The amounts made available under paragraph (1) that are remaining after the reservation of funds under paragraph (2), shall be apportioned as follows: 

‘‘(A) 15 percent of such amounts shall be used to carry 

out the capacity and infrastructure program under subsection (a). 

‘‘(B) 85 percent of such funds shall be used to carry 

out the competitive grant program under subsection (b). 

‘‘(4) ADDITIONAL APPORTIONMENT.—The funds reserved 

under paragraph (2) and apportioned under paragraph (3)(A) 

to carry out the capacity and infrastructure program under 

subsection (a) shall be apportioned as follows: 

‘‘(A) Four percent shall be retained by the Department 

of Agriculture for administration, program assistance to 

the eligible institutions, and program coordination. 


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‘‘(B) 48 percent shall be distributed among the several 

States in the proportion that the value of and income to 

producers from domestic livestock, poultry, and commercial 

aquaculture species in each State bears to the total value 

of and income to producers from domestic livestock, poultry, and commercial aquaculture species in all the States. 

The Secretary shall determine the total value of and income from domestic livestock, poultry, and commercial 

aquaculture species in all the States and the proportionate 

value of and income from domestic livestock, poultry, and 

commercial aquaculture species for each State, based on 

the most current inventory of all cattle, sheep, swine, 

horses, poultry, and commercial aquaculture species published by the Department of Agriculture. 

‘‘(C) 48 percent shall be distributed among the several 

States in the proportion that the animal health research 

capacity of the eligible institutions in each State bears to 

the total animal health research capacity in all the States. 

The Secretary shall determine the animal health research 

capacity of the eligible institutions. 

‘‘(5) SPECIAL RULES FOR APPORTIONMENT OF CERTAIN

FUNDS.—With respect to funds reserved under paragraph (2) 

and apportioned under paragraph (3)(A) to carry out the capacity and infrastructure program under subsection (a), the following shall apply: 

‘‘(A) When the amount available under this section for 

allotment to any State on the basis of domestic livestock, 

poultry, and commercial aquaculture species values and 

incomes exceeds the amount for which the eligible institution or institutions in the State are eligible on the basis of 

animal health research capacity, the excess may be used, 

at the discretion of the Secretary, for remodeling of facilities, construction of new facilities, or increase in staffing, 

proportionate to the need for added research capacity. 

‘‘(B) Whenever a new college of veterinary medicine is 

established in a State and is accredited, the Secretary, 

after consultation with the dean of such college and the director of the State agricultural experiment station and 

where applicable, deans of other accredited colleges in the 

State, shall provide for the reallocation of funds available 

to the State pursuant to paragraph (4) between the new 

college and other eligible institutions in the State, based 

on the animal health research capacity of each eligible institution. 

‘‘(C) Whenever two or more States jointly establish an 

accredited regional college of veterinary medicine or jointly 

support an accredited college of veterinary medicine serving the States involved, the Secretary is authorized to 

make funds which are available to such States pursuant to 

paragraph (4) available for such college in such amount 

that reflects the combined relative value of, and income 

from, domestic livestock, poultry, and commercial aquaculture species in the cooperating States, such amount to 

be adjusted, as necessary, pursuant to subsection (a)(1) 

and subparagraph (B).’’. 


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(b) CONFORMING AMENDMENTS.— 

(1) DEFINITION OF STATE COOPERATIVE INSTITUTION.—Section 1404(18) of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3103(18)) is amended— 

(A) in subparagraph (E), by striking ‘‘and’’ at the end; 

(B) in subparagraph (F), by striking ‘‘subtitles E, G,’’ 

and inserting ‘‘subtitles G,’’; 

(C) by redesignating subparagraph (F) as subparagraph (G); and 

(D) by inserting after subparagraph (E) the following 

new subparagraph: 

‘‘(F) section 1430; and’’. 

(2) DEFINITION OF CAPACITY AND INFRASTRUCTURE PROGRAM.—Section 251(f)(1)(C)(vi) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C.6971(f)(1)(C)(vi)) is 

amended by inserting ‘‘except for the competitive grant program under section 1433(b)’’ before the period at the end. 

(3) SUBTITLE E OF THE NATIONAL AGRICULTURAL RESEARCH, 

EXTENSION, AND TEACHING POLICY ACT OF 1977.—Subtitle E of 

the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 is amended— 

(A) in section 1431(a) (7 U.S.C. 3193(a)), by inserting 

‘‘under sections 1433(a) and 1434’’ after ‘‘eligible institutions’’; 

(B) in section 1435 (7 U.S.C. 3197), by striking ‘‘for allocation under the terms of this subtitle’’ and inserting ‘‘to 

carry out sections 1433(a) and 1434’’; 

(C) in section 1436 (7 U.S.C. 3198), in the first sentence, by striking ‘‘section 1433 of this title’’ and inserting 

‘‘subsection (c) of section 1433 to carry out subsection (a) 

of such section’’; 

(D) in section 1437 (7 U.S.C. 3199), in the first sentence, by striking ‘‘States under section 1433 of this title’’ 

and inserting ‘‘States under subsection (c) of section 1433 

to carry out subsection (a) of such section’’; 

(E) in section 1438 (7 U.S.C. 3200), in the first sentence by striking ‘‘under this subtitle’’ and inserting ‘‘under 

subsection (c) of section 1433 to carry out subsection (a) of 

such section’’; and 

(F) in section 1439 (7 U.S.C. 3201), by striking ‘‘under 

this subtitle’’ and inserting ‘‘under subsection (c) of section 

1433 to carry out subsection (a) of such section or section 

1434, as applicable,’’. 

(4) AUTHORIZATION FOR APPROPRIATIONS FOR EXISTING AND

CERTAIN NEW AGRICULTURAL RESEARCH PROGRAMS.—Section 

1463(c) of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3311(c)) is amended by 

striking ‘‘sections 1433 and 1434’’ and inserting ‘‘sections 

1433(a) and 1434’’. 


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SEC. 7112. GRANTS TO UPGRADE AGRICULTURAL AND FOOD 

SCIENCES FACILITIES AT 1890 LAND-GRANT COLLEGES, 

INCLUDING TUSKEGEE UNIVERSITY. 

Section 1447(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7113. GRANTS TO UPGRADE AGRICULTURE AND FOOD SCIENCE 

FACILITIES AND EQUIPMENT AT INSULAR AREA LANDGRANT INSTITUTIONS. 

(a) SUPPORTING TROPICAL AND SUBTROPICAL AGRICULTURAL

RESEARCH.— 

(1) IN GENERAL.—Section 1447B(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3222b–2(a)) is amended to read as follows: 

‘‘(a) PURPOSE.—It is the intent of Congress to assist the landgrant colleges and universities in the insular areas in efforts to— 

‘‘(1) acquire, alter, or repair facilities or relevant equipment necessary for conducting agricultural research; and 

‘‘(2) support tropical and subtropical agricultural research, 

including pest and disease research.’’. 

(2) CONFORMING AMENDMENT.—Section 1447B of the National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3222b–2) is amended in the heading— 

(A) by inserting ‘‘AND SUPPORT TROPICAL AND SUB- TROPICAL AGRICULTURAL RESEARCH’’ after ‘‘EQUIPMENT’’; 

and 

(B) by striking ‘‘INSTITUTIONS’’ and inserting ‘‘COL- LEGES AND UNIVERSITIES’’. 

(b) EXTENSION.—Section 1447B(d) of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3222b–2(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7114. REPEAL OF NATIONAL RESEARCH AND TRAINING VIRTUAL 

CENTERS. 

Section 1448 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is repealed. 

SEC. 7115. HISPANIC-SERVING INSTITUTIONS. 

Section 1455(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) is amended 

by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7116. COMPETITIVE GRANTS PROGRAM FOR HISPANIC AGRICULTURAL WORKERS AND YOUTH. 

Section 1456(e)(1) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3243(e)(1)) is 

amended to read as follows: 

‘‘(1) IN GENERAL.—The Secretary shall establish a competitive grants program— 

‘‘(A) to fund fundamental and applied research and extension at Hispanic-serving agricultural colleges and universities in agriculture, human nutrition, food science, bioenergy, and environmental science; and 

‘‘(B) to award competitive grants to Hispanic-serving 

agricultural colleges and universities to provide for training in the food and agricultural sciences of Hispanic agricultural workers and Hispanic youth working in the food 

and agricultural sciences.’’. 


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SEC. 7117. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE AND EDUCATION PROGRAMS. 

Section 1459A(c) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) is amended to read as follows: 

‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section— 

‘‘(1) such sums as are necessary for each of fiscal years 

1999 through 2013; and ‘‘(2) $5,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7118. REPEAL OF RESEARCH EQUIPMENT GRANTS. 

Section 1462A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310a) is repealed. 

SEC. 7119. UNIVERSITY RESEARCH. 

Section 1463 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3311) is amended by 

striking ‘‘2012’’ each place it appears in subsections (a) and (b) and 

inserting ‘‘2018’’. 

SEC. 7120. EXTENSION SERVICE. 

Section 1464 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3312) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7121. AUDITING, REPORTING, BOOKKEEPING, AND ADMINISTRATIVE REQUIREMENTS. 

Section 1469 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3315) is amended— 

(1) by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively; and 

(2) by inserting after subsection (a) the following new subsection: 

‘‘(b) AGREEMENTS WITH FORMER AGRICULTURAL RESEARCH FA- CILITIES OF THE DEPARTMENT.—To the maximum extent practicable, the Secretary, for purposes of supporting ongoing research 

and information dissemination activities, including supporting research and those activities through co-locating scientists and other 

technical personnel, sharing of laboratory and field equipment, and 

providing financial support, shall enter into grants, contracts, cooperative agreements, or other legal instruments with former Department of Agriculture agricultural research facilities.’’. 

SEC. 7122. SUPPLEMENTAL AND ALTERNATIVE CROPS. 

(a) AUTHORIZATION OF APPROPRIATIONS AND TERMINATION.— Section 1473D of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3319d) is amended— 

(1) in subsection (a), by striking ‘‘2012’’ and inserting 

‘‘2018’’; and 

(2) by adding at the end the following new subsection: 

‘‘(e) There are authorized to be appropriated to carry out this 

section— 

‘‘(1) such sums as are necessary for fiscal year 2013; and 

‘‘(2) $1,000,000 for each of fiscal years 2014 through 

2018.’’. 

(b) COMPETITIVE GRANTS.—Section 1473D(c)(1) of the National 

Agricultural Research, Extension, and Teaching Policy Act of 1977 


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(7 U.S.C. 3319d(c)(1)) is amended by striking ‘‘use such research 

funding, special or competitive grants, or other means, as the Secretary determines,’’ and inserting ‘‘make competitive grants’’. 

SEC. 7123. CAPACITY BUILDING GRANTS FOR NLGCA INSTITUTIONS. 

Section 1473F(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319i(b)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7124. AQUACULTURE ASSISTANCE PROGRAMS. 

(a) COMPETITIVE GRANTS.—Section 1475(b) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3322(b)) is amended in the matter preceding paragraph (1), 

by inserting ‘‘competitive’’ before ‘‘grants’’. 

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 1477 of the 

National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 (7 U.S.C. 3324) is amended to read as follows: 

‘‘SEC. 1477. AUTHORIZATION OF APPROPRIATIONS. 

‘‘(a) IN GENERAL.—There are authorized to be appropriated to 

carry out this subtitle— 

‘‘(1) $7,500,000 for each of fiscal years 1991 through 2013; 

and 

‘‘(2) $5,000,000 for each of fiscal years 2014 through 2018. 

‘‘(b) PROHIBITION ON USE.—Funds made available under this 

section may not be used to acquire or construct a building.’’. 

SEC. 7125. RANGELAND RESEARCH PROGRAMS. 

Section 1483(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) is amended by striking ‘‘subtitle’’ and all that follows and inserting the following: ‘‘subtitle— 

‘‘(1) $10,000,000 for each of fiscal years 1991 through 2013; 

and 

‘‘(2) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7126. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING 

AND RESPONSE. 

Section 1484(a) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3351(a)) is amended by striking ‘‘response such sums as are necessary’’ and all that 

follows and inserting the following: ‘‘response— 

‘‘(1) such sums as are necessary for each of fiscal years 

2002 through 2013; and 

‘‘(2) $20,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7127. DISTANCE EDUCATION AND RESIDENT INSTRUCTION 

GRANTS PROGRAM FOR INSULAR AREA INSTITUTIONS OF 

HIGHER EDUCATION. 

(a) DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.— 

(1) COMPETITIVE GRANTS.—Section 1490(a) of the National 

Agricultural Research, Extension, and Teaching Policy Act of 

1977 (7 U.S.C. 3362(a)) is amended by striking ‘‘or noncompetitive’’. 

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 1490(f) of 

the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977 (7 U.S.C. 3362(f)) is amended by striking 


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‘‘section’’ and all that follows and inserting the following: ‘‘section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2002 through 2013; and 

‘‘(2) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

(b) RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.—Section 1491(c) of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3363(c)) is amended by striking ‘‘such sums as are necessary’’ and all that follows and inserting 

the following: ‘‘to carry out this section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2002 through 2013; and 

‘‘(2) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7128. MATCHING FUNDS REQUIREMENT. 

(a) IN GENERAL.—The National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 

amended by adding at the end the following new subtitle: 

‘‘Subtitle P—General Provisions 

‘‘SEC. 1492. MATCHING FUNDS REQUIREMENT. 

‘‘(a) IN GENERAL.—The recipient of a competitive grant that is 

awarded by the Secretary under a covered law shall provide funds, 

in-kind contributions, or a combination of both, from sources other 

than funds provided through such grant in an amount that is at 

least equal to the amount of such grant. 

‘‘(b) EXCEPTION.—The matching funds requirement under subsection (a) shall not apply to grants awarded— 

‘‘(1) to a research agency of the Department of Agriculture; 

or 

‘‘(2) to an entity eligible to receive funds under a capacity 

and infrastructure program (as defined in section 251(f)(1)(C) 

of the Department of Agriculture Reorganization Act of 1994 (7 

U.S.C. 6971(f)(1)(C))), including a partner of such entity. 

‘‘(c) WAIVER.—The Secretary may waive the matching funds requirement under subsection (a) for a year with respect to a competitive grant that involves research or extension activities that are 

consistent with the priorities established by the National Agricultural Research, Extension, Education, and Economics Advisory 

Board under section 1408(c)(1)(B) for the year involved. 

‘‘(d) COVERED LAW.—In this section, the term ‘covered law’ 

means each of the following provisions of law: 

‘‘(1) This title. 

‘‘(2) Title XVI of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5801 et seq.). 

‘‘(3) The Agricultural Research, Extension, and Education 

Reform Act of 1998 (7 U.S.C. 7601 et seq.). 

‘‘(4) Part III of subtitle E of title VII of the Food, Conservation, and Energy Act of 2008. 

‘‘(5) The Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i).’’. 

(b) CONFORMING AMENDMENTS.— 


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(1) NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND

TEACHING POLICY ACT OF 1977.—The National Agricultural Research, Extension, and Teaching Policy Act of 1977 is amended— 

(A) in section 1415(a) (7 U.S.C. 3151(a)), by striking 

the second sentence; 

(B) in section 1475(b) (7 U.S.C. 3322(b)), in the matter 

following paragraph (4), by striking ‘‘Except in the case of’’ 

and all that follows; and 

(C) in section 1480 (7 U.S.C. 3333)— 

(i) by striking subsection (b); and 

(ii) by striking ‘‘(a) IN GENERAL.—The Secretary’’ 

and inserting ‘‘The Secretary’’. 

(2) FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF

1990.—The Food, Agriculture, Conservation, and Trade Act of 

1990 is amended— 

(A) in section 1623(d)(2) (7 U.S.C. 5813(d)(2)), by adding at the end the following: ‘‘The matching funds requirement under section 1492 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 shall 

not apply to grants awarded under this section.’’; 

(B) in section 1671 (7 U.S.C. 5924)— 

(i) by striking subsection (e); and 

(ii) by redesignating subsection (f) as subsection 

(e); 

(C) in section 1672 (7 U.S.C. 5925)— 

(i) by striking subsection (c); and 

(ii) by redesignating subsections (d) through (j) as 

subsections (c) through (i), respectively; and 

(D) in section 1672B (7 U.S.C. 5925b)— 

(i) by striking subsection (c); and 

(ii) by redesignating subsections (d), (e), and (f) as 

subsections (c), (d), and (e), respectively. 

(3) AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION

REFORM ACT OF 1998.—The Agricultural Research, Extension, 

and Education Reform Act of 1998 is amended— 

(A) in section 406 (7 U.S.C. 7626)— 

(i) by striking subsection (d); and 

(ii) by redesignating subsections (e) and (f) as subsections (d) and (e), respectively; and 

(B) in section 412(e) (7 U.S.C. 7632(e))— 

(i) by striking paragraph (3); and 

(ii) by redesignating paragraph (4) as paragraph 

(3). 

(4) COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANT

ACT.—Subsection (b)(9) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(9)) is amended— 

(A) in subparagraph (A), by adding at the end the following new clause: 

‘‘(iii) EXEMPTION.—The matching funds requirement under section 1492 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977 

shall not apply in the case of a grant made under 

paragraph (6)(A).’’; and 

(B) by striking subparagraph (B). 


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(5) SUN GRANT PROGRAM.—Section 7526(c)(1)(D)(iv) of the 

Food, Conservation, and Energy Act of 2008 (7 U.S.C. 

8114(c)(1)(D)(iv)) is amended by adding at the end the following new subclause: 

‘‘(IV) RELATION TO OTHER MATCHING FUND REQUIREMENT.—The matching funds requirement 

under section 1492 of the National Agricultural 

Research, Extension, and Teaching Policy Act of 

1977 shall not apply in the case of a grant provided by a sun grant center or subcenter under 

this paragraph.’’. 

(c) APPLICATION TO AMENDMENTS.— 

(1) NEW GRANTS.—Section 1492 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, as 

added by subsection (a), shall apply with respect to grants described in such section awarded after October 1, 2014, unless 

the provision of a covered law under which such grants are 

awarded specifically exempts such grants from the matching 

funds requirement under such section. 

(2) GRANTS AWARDED ON OR BEFORE OCTOBER 1, 2014.— 

Notwithstanding the amendments made by subsection (b), a 

matching funds requirement in effect on or before the date of 

the enactment of this section under a provision of a covered 

law shall continue to apply to a grant awarded under such provision on or before October 1, 2014. 

SEC. 7129. DESIGNATION OF CENTRAL STATE UNIVERSITY AS 1890 INSTITUTION. 

(a) DESIGNATION.—Any provision of a Federal law relating to 

colleges and universities eligible to receive funds under the Act of 

August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee University, shall apply to Central State University. 

(b) FUNDING RESTRICTION.—Notwithstanding the designation 

under subsection (a), for fiscal years 2014 and 2015, Central State 

University shall not be eligible to receive formula funds under— 

(1) section 1444 or 1445 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3221 and 3222); 

(2) section 3(d) of the Smith-Lever Act (7 U.S.C. 343(d)) to 

carry out the national education program established under 

section 1425 of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3175); 

(3) the Renewable Resources Extension Act of 1978 (16 

U.S.C. 1671 et seq.); or 

(4) Public Law 87-788 (commonly known as the McIntireStennis Cooperative Forestry Act; 16 U.S.C. 582a et seq.). 

Subtitle B—Food, Agriculture, Conservation, and Trade Act 

of 1990 

SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICATIONS. 

Section 1624 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5814) is amended in the first sentence— 

(1) by striking ‘‘$40,000,000 for each fiscal year’’; and 

(2) by inserting ‘‘$40,000,000 for each of fiscal years 2013 

through 2018’’ after ‘‘chapter’’. 


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SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS. 

Section 1627(d) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5821(d)) is amended to read as follows: 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section through the National Institute of Food and Agriculture $20,000,000 for each of fiscal years 2013 through 2018.’’. 

SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DEVELOPMENT 

AND TRANSFER PROGRAM. 

Section 1628(f) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5831(f)) is amended to read as follows: 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section— 

‘‘(1) such sums as are necessary for fiscal year 2013; and 

‘‘(2) $5,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7204. NATIONAL TRAINING PROGRAM. 

Section 1629(i) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5832(i)) is amended to read as follows: 

‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out the National Training Program 

$20,000,000 for each of fiscal years 2013 through 2018.’’. 

SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM. 

Section 1635(b) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5844(b)) is amended— 

(1) by striking ‘‘such funds as may be necessary’’; and 

(2) by striking ‘‘subtitle’’ and all that follows and inserting 

the following: ‘‘subtitle— 

‘‘(1) such sums as are necessary for each of fiscal years 

1991 through 2013; and 

‘‘(2) $1,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM. 

Section 1641(c) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5855(c)) is amended— 

(1) by striking ‘‘$5,000,000 to carry out this subtitle’’ and 

inserting ‘‘to carry out this subtitle $5,000,000’’; and 

(2) by inserting ‘‘and $1,000,000 for each of fiscal years 

2014 through 2018’’ before the period at the end. 

SEC. 7207. REPEAL OF RURAL ELECTRONIC COMMERCE EXTENSION 

PROGRAM. 

Section 1670 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5923) is repealed. 

SEC. 7208. AGRICULTURAL GENOME INITIATIVE. 

Section 1671(c) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5924(c)) is amended by adding at the 

end the following: 

‘‘(3) CONSORTIA.—The Secretary shall encourage awards 

under this section to consortia of eligible entities.’’. 

SEC. 7209. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES. 

Section 1672 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5925) is amended— 


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(1) in the first sentence of subsection (a), by striking ‘‘subsections (e) through (i)’’ and inserting ‘‘subsections (d) through 

(g)’’; 

(2) in subsection (b)(2), in the first sentence, by striking 

‘‘subsections (e) through (i)’’ and inserting ‘‘subsections (d) 

through (g)’’; 

(3) by striking subsection (h) (as redesignated by section 

7128(b)(2)(C)(ii)); 

(4) by redesignating subsection (i) (as redesignated by such 

section) as subsection (h); 

(5) in subsection (d) (as redesignated by such section)— 

(A) by striking paragraphs (1) through (5), (7), (8), (11) 

through (43), (47), (48), (51), and (52); 

(B) by redesignating paragraphs (6), (9), (10), (44), 

(45), (46), (49), and (50) as paragraphs (1), (2), (3), (4), (5), 

(6), (7), and (8), respectively; and 

(C) by adding at the end the following new paragraphs: 

‘‘(9) COFFEE PLANT HEALTH INITIATIVE.—Research and extension grants may be made under this section for the purposes of— 

‘‘(A) developing and disseminating science-based tools 

and treatments to combat the coffee berry borer 

(Hypothenemus hampei); and 

‘‘(B) establishing an areawide integrated pest management program in areas affected by, or areas at risk of, 

being affected by the coffee berry borer. 

‘‘(10) CORN, SOYBEAN MEAL, CEREAL GRAINS, AND GRAIN BYPRODUCTS RESEARCH AND EXTENSION.—Research and extension 

grants may be made under this section for the purpose of carrying out or enhancing research to improve the digestibility, 

nutritional value, and efficiency of the use of corn, soybean 

meal, cereal grains, and grain byproducts for the poultry and 

food animal production industries.’’; 

(6) by striking subsection (e) (as redesignated by such section)and inserting the following new subsection: 

‘‘(e) PULSE CROP HEALTH INITIATIVE.— ‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) INITIATIVE.—The term ‘Initiative’ means the pulse 

crop health initiative established by paragraph (2). 

‘‘(B) PULSE CROP.—The term ‘pulse crop’ means dry 

beans, dry peas, lentils, and chickpeas. 

‘‘(2) ESTABLISHMENT.—The Secretary shall carry out a 

pulse crop health competitive research and extension initiative 

to address the critical needs of the pulse crop industry by developing and disseminating science-based tools and information, including— 

‘‘(A) research conducted with respect to pulse crops in 

the areas of health and nutrition, such as— 

‘‘(i) pulse crop diets and the ability of such diets 

to reduce obesity and associated chronic disease; and 

‘‘(ii) the underlying mechanisms of the health benefits of pulse crop consumption; 

‘‘(B) research related to the functionality of pulse 

crops, such as— 


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‘‘(i) improving the functional properties of pulse 

crops and pulse crop fractions; and 

‘‘(ii) developing new and innovative technologies to 

improve pulse crops as an ingredient in food products; 

‘‘(C) research conducted with respect to pulse crops for 

purposes of enhancing sustainability and global food security, such as— 

‘‘(i) improving pulse crop productivity, nutrient 

density, and phytonutrient content using plant breeding, genetics, and genomics; 

‘‘(ii) improving pest and disease management, including resistance to pests and diseases; and 

‘‘(iii) improving nitrogen fixation and water use efficiency to reduce the carbon and energy footprint of 

agriculture; 

‘‘(D) the optimization of systems used in producing 

pulse crops to reduce water usage; and 

‘‘(E) education and technical assistance programs with 

respect to pulse crops, such as programs— 

‘‘(i) providing technical expertise to help food companies include pulse crops in innovative and healthy 

food; and 

‘‘(ii) establishing an educational program to encourage pulse crop consumption in the United States. 

‘‘(3) ADMINISTRATION.—Paragraphs (4), (7), (8), and (11)(B) 

of subsection (b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)) shall apply with respect to 

the making of a competitive grant under this subsection. 

‘‘(4) PRIORITIES.—In making competitive grants under this 

subsection, the Secretary shall provide a higher priority to 

projects that— 

‘‘(A) are multistate, multiinstitutional, and multidisciplinary; and 

‘‘(B) include explicit mechanisms to communicate results to the pulse crop industry and the public. 

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection 

$25,000,000 for each of fiscal years 2014 through 2018.’’; 

(7) by striking subsection (f) (as redesignated by such section) and inserting the following new subsection: 

‘‘(f) TRAINING COORDINATION FOR FOOD AND AGRICULTURE PROTECTION.— 

‘‘(1) IN GENERAL.—The Secretary shall make a competitive 

grant to, or enter into a contract or a cooperative agreement 

with, an eligible entity (described in paragraph (2)) for purposes of establishing an internationally integrated training system to enhance the protection of the food supply in the United 

States, to be known as the ‘Comprehensive Food Safety Training Network’ (referred to in this subsection as the ‘Network’). 

‘‘(2) ELIGIBILITY.— ‘‘(A) IN GENERAL.—For purposes of this subsection, an 

eligible entity is a multiinstitutional consortium that includes— 

‘‘(i) a nonprofit institution that provides food safety protection training; and 


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‘‘(ii) one or more training centers in institutions of 

higher education (as defined in section 101 of the 

Higher Education Act of 1965 (20 U.S.C. 1001)) that 

have demonstrated expertise in developing and delivering community-based training in food supply and agricultural safety and defense. 

‘‘(B) COLLECTIVE CONSIDERATION.—The Secretary may 

consider such consortium collectively and not on an institution-by-institution basis. 

‘‘(3) DUTIES OF ELIGIBLE ENTITY.—As a condition of receiving a competitive grant or entering into a contract or a cooperative agreement with the Secretary under this subsection, the 

eligible entity, in cooperation with the Secretary, shall establish and maintain the Network, including by— 

‘‘(A) providing basic, technical, management, and leadership training (including by developing curricula) to regulatory and public health officials, producers, processors, 

and other agribusinesses; 

‘‘(B) serving as the hub for the administration of the 

Network; 

‘‘(C) implementing a standardized national curriculum 

to ensure the consistent delivery of quality training 

throughout the United States; 

‘‘(D) building and overseeing a nationally recognized 

instructor cadre to ensure the availability of highly qualified instructors; 

‘‘(E) reviewing training proposed through the National 

Institute of Food and Agriculture and other relevant Federal agencies that report to the Secretary on the quality 

and content of proposed and existing courses; 

‘‘(F) assisting Federal agencies in the implementation 

of food safety protection training requirements including 

requirements under the Federal Food, Drug, and Cosmetic 

Act (21 U.S.C. 301 et seq.), the Agricultural Act of 2014, 

and any provision of law amended by such Act; and 

‘‘(G) performing evaluation and outcome-based studies 

to provide to the Secretary information on the effectiveness 

and impact of training and metrics on jurisdictions and 

sectors within the food safety system. 

‘‘(4) MEMBERSHIP.—An eligible entity may alter the consortium membership to meet specific training expertise needs. 

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection 

$20,000,000 for each of fiscal years 2014 through 2018, to remain available until expended.’’; 

(8) in subsection (g) (as redesignated by such section)— 

(A) by striking ‘‘2012’’ each place it appears in paragraphs (1)(B), (2)(B), and (3) and inserting ‘‘2018’’; 

(B) in paragraph (3)— 

(i) in the heading, by striking ‘‘PEST AND PATHO- GEN’’; and 

(ii) by striking ‘‘pest and pathogen surveillance’’ 

and inserting ‘‘pest, pathogen, health, and population 

status surveillance’’; 

(C) by redesignating paragraph (4) as paragraph (5); 


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(D) by inserting after paragraph (3) the following new 

paragraph: 

‘‘(4) CONSULTATION.—The Secretary, in consultation with 

the Secretary of the Interior and the Administrator of the Environmental Protection Agency, shall publish guidance on enhancing pollinator health and the long-term viability of populations of pollinators, including recommendations related to— 

‘‘(A) allowing for managed honey bees to forage on National Forest System lands where compatible with other 

natural resource management priorities; and 

‘‘(B) planting and maintaining managed honey bee and 

native pollinator foraging on National Forest System lands 

where compatible with other natural resource management priorities.’’; and 

(E) in paragraph (5) (as redesignated by subparagraph 

(C))— 

(i) by redesignating subparagraphs (A) and (B) as 

clauses (i) and (ii), respectively, and moving the margins of such subparagraphs two ems to the right; 

(ii) by striking ‘‘annual report describing’’ and inserting the following: ‘‘annual report— 

‘‘(A) describing’’; 

(iii) in clause (i) (as redesignated by clause (i) of 

this subparagraph)— 

(I) by inserting ‘‘and honey bee health disorders’’ after ‘‘collapse’’; and 

(II) by striking ‘‘and’’ at the end; 

(iv) in clause (ii) (as redesignated by clause (i) of 

this subparagraph)— 

(I) by inserting ‘‘, including best management 

practices’’ after ‘‘strategies’’; and 

(II) by striking the period at the end and inserting ‘‘; and’’; 

(v) by adding at the end the following new clause: 

‘‘(iii) addressing the decline of managed honey 

bees and native pollinators;’’; and 

(vi) by adding at the end the following new subparagraphs: 

‘‘(B) assessing Federal efforts to mitigate pollinator 

losses and threats to the United States commercial beekeeping industry; and 

‘‘(C) providing recommendations to Congress regarding 

how to better coordinate Federal agency efforts to address 

the decline of managed honey bees and native pollinators.’’; and 

(9) in subsection (h) (as redesignated by paragraph (4)), by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7210. REPEAL OF NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE. 

Section 1672A of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5925a) is repealed. 

SEC. 7211. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE. 

Section 1672B of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5925b) is amended— 


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(1) in subsection (a)— 

(A) in the matter preceding paragraph (1), by inserting 

‘‘, education,’’ after ‘‘support research’’; 

(B) in paragraph (1), by inserting ‘‘and improvement’’ 

after ‘‘development’’; 

(C) in paragraph (2), by striking ‘‘to producers and 

processors who use organic methods’’ and inserting ‘‘of organic agricultural production and methods to producers, 

processors, and rural communities’’; and 

(D) in paragraph (6), by striking ‘‘and marketing and 

to socioeconomic conditions’’ and inserting ‘‘, marketing, 

food safety, socioeconomic conditions, and farm business 

management’’; and 

(2) in subsection (e) (as redesignated by section 

7128(b)(2)(D)(ii))— 

(A) in paragraph (1)— 

(i) in the heading, by striking ‘‘FOR FISCAL YEARS

2009 THROUGH 2012’’; 

(ii) in subparagraph (A), by striking ‘‘and’’ at the 

end; 

(iii) in subparagraph (B), by striking the period at 

the end and inserting ‘‘; and’’; and 

(iv) by adding at the end the following: 

‘‘(C) $20,000,000 for each of fiscal years 2014 through 

2018.’’; and 

(B) in paragraph (2)— 

(i) in the heading, by striking ‘‘2009 THROUGH 2012’’ 

and inserting ‘‘2014 THROUGH 2018’’; and 

(ii) by striking ‘‘2009 through 2012’’ and inserting 

‘‘2014 through 2018’’. 

SEC. 7212. REPEAL OF AGRICULTURAL BIOENERGY FEEDSTOCK AND 

ENERGY EFFICIENCY RESEARCH AND EXTENSION INITIATIVE. 

(a) REPEAL.—Section 1672C of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925e) is repealed. 

(b) CONFORMING AMENDMENT.—Section 251(f)(1)(D) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 

6971(f)(1)(D)) is amended— 

(1) by striking clause (xi); and 

(2) by redesignating clauses (xii) and (xiii) as clauses (xi) 

and (xii), respectively. 

SEC. 7213. FARM BUSINESS MANAGEMENT. 

Section 1672D(d) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5925f(d)) is amended by striking ‘‘such 

sums as are necessary to carry out this section.’’ and inserting the 

following: ‘‘to carry out this section— 

‘‘(1) such sums as are necessary for fiscal year 2013; and 

‘‘(2) $5,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7214. CENTERS OF EXCELLENCE. 

(a) IN GENERAL.—The Food, Agriculture, Conservation, and 

Trade Act of 1990 is amended by inserting after section 1672D (7 

U.S.C. 5925f) the following new section: 


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‘‘SEC. 1673. CENTERS OF EXCELLENCE. 

‘‘(a) FUNDING PRIORITIES.—The Secretary shall prioritize centers of excellence established for purposes of carrying out research, 

extension, and education activities relating to the food and agricultural sciences (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 

U.S.C. 3103)) for the receipt of funding for any competitive research or extension program administered by the Secretary. 

‘‘(b) COMPOSITION.—A center of excellence is composed of 1 or 

more of the eligible entities specified in subsection (b)(7) of the 

Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 

450i(b)(7)) that provide financial or in-kind support to the center of 

excellence. 

‘‘(c) CRITERIA FOR CENTERS OF EXCELLENCE.— 

‘‘(1) REQUIRED EFFORTS.—The criteria for recognition as a 

center of excellence shall include efforts— 

‘‘(A) to ensure coordination and cost effectiveness by 

reducing unnecessarily duplicative efforts regarding research, teaching, and extension; 

‘‘(B) to leverage available resources by using publicprivate partnerships among agricultural industry groups, 

institutions of higher education, and the Federal Government; 

‘‘(C) to implement teaching initiatives to increase 

awareness and effectively disseminate solutions to target 

audiences through extension activities; and 

‘‘(D) to increase the economic returns to rural communities by identifying, attracting, and directing funds to 

high-priority agricultural issues. 

‘‘(2) ADDITIONAL EFFORTS.—Where practicable, the criteria 

for recognition as a center of excellence shall include efforts to 

improve teaching capacity and infrastructure at colleges and 

universities (including land-grant colleges and universities, cooperating forestry schools, NLGCA Institutions (as those terms 

are defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3103)), and schools of veterinary medicine).’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 

shall take effect on October 1, 2014. 

SEC. 7215. REPEAL OF RED MEAT SAFETY RESEARCH CENTER. 

Section 1676 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5929) is repealed. 

SEC. 7216. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 

DISABILITIES. 

Section 1680(c)(1) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended— 

(1) by striking ‘‘is’’ and inserting ‘‘are’’; and 

(2) by striking ‘‘section’’ and all that follows and inserting 

the following: ‘‘section— 

‘‘(A) $6,000,000 for each of fiscal years 1999 through 

2013; and 

‘‘(B) $5,000,000 for each of fiscal years 2014 through 

2018.’’. 


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SEC. 7217. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE. 

Section 2381(e) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 

‘‘2012’’ and inserting ‘‘2018’’. 

Subtitle C—Agricultural Research, Extension, and 

Education Reform Act of 1998 

SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION FUNDED BY THE DEPARTMENT. 

Section 103(a)(2) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7613(a)(2)) is amended— 

(1) in the heading by striking ‘‘MERIT REVIEW OF EXTENSION’’ and inserting ‘‘RELEVANCE AND MERIT REVIEW OF RESEARCH, EXTENSION,’’; 

(2) in subparagraph (A)— 

(A) by inserting ‘‘relevance and’’ before ‘‘merit’’; and 

(B) by striking ‘‘extension or education’’ and inserting 

‘‘research, extension, or education’’; and 

(3) in subparagraph (B), by inserting ‘‘on a continuous 

basis’’ after ‘‘procedures’’. 

SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 

COMPETITIVE GRANTS PROGRAM. 

Subsection (e) of section 406 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7626) (as redesignated by section 7128(b)(3)(A)(ii)) is amended by striking 

‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES OF 

WHEAT, TRITICALE, AND BARLEY CAUSED BY FUSARIUM 

GRAMINEARUM OR BY TILLETIA INDICA. 

Section 408(e) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended to 

read as follows: 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section— 

‘‘(1) such sums as may be necessary for each of fiscal years 

1999 through 2013; and 

‘‘(2) $10,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7304. REPEAL OF BOVINE JOHNE’S DISEASE CONTROL PROGRAM. 

Section 409 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7629) is repealed. 

SEC. 7305. GRANTS FOR YOUTH ORGANIZATIONS. 

Section 410(d) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7630(d)) is amended by 

striking ‘‘section such sums as are necessary’’ and all that follows 

and inserting the following: ‘‘section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2008 through 2013; and 

‘‘(2) $3,000,000 for each of fiscal years 2014 through 

2018.’’. 


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SEC. 7306. SPECIALTY CROP RESEARCH INITIATIVE. 

Section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632) is amended— 

(1) in subsection (a)— 

(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; 

(B) by inserting before paragraph (2) (as so redesignated), the following new paragraph: 

‘‘(1) CITRUS DISEASE SUBCOMMITTEE.—The term ‘citrus disease subcommittee’ means the subcommittee established under 

section 1408A(a)(2) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977.’’;and 

(C) by adding at the end the following new paragraph: 

‘‘(4) SPECIALTY CROPS COMMITTEE.—The term ‘specialty 

crops committee’ means the committee established under section 1408A of the National Agricultural Research, Extension, 

and Teaching Policy Act of 1977 (7 U.S.C. 3123a).’’; 

(2) in subsection (b)— 

(A) in paragraph (1), by striking ‘‘and genomics’’ and 

inserting ‘‘genomics, and other methods’’; and 

(B) in paragraph (3), by inserting ‘‘handling and processing,’’ after ‘‘production efficiency,’’; 

(3) in subsection (c), in the matter preceding paragraph (1), 

by striking ‘‘the Initiative’’ and inserting ‘‘this section’’; 

(4) by striking subsection (d) and inserting the following 

new subsection: 

‘‘(d) REVIEW OF PROPOSALS.—In carrying out this section, the 

Secretary shall award competitive grants on the basis of— 

‘‘(1) a scientific peer review conducted by a panel of subject 

matter experts from Federal agencies, non-Federal entities, 

and the specialty crop industry; and 

‘‘(2) a review and ranking for merit, relevance, and impact 

conducted by a panel of specialty crop industry representatives 

for the specific specialty crop.’’; 

(5) by redesignating subsections (e) (as amended by section 

7128(b)(3)(B)), (f), (g), and (h) as subsections (g), (h), (i), and 

(k), respectively; 

(6) by inserting after subsection (d) the following new subsections: 

‘‘(e) CONSULTATION.—Each fiscal year, before conducting the 

scientific peer review described in paragraph (1) of subsection (d) 

and the merit and relevancy review described in paragraph (2) of 

such subsection, the Secretary shall consult with the specialty 

crops committee regarding such reviews. The committee shall provide the Secretary— 

‘‘(1) in the first fiscal year in which that consultation occurs, any recommendations for conducting such reviews in such 

fiscal year; and 

‘‘(2) in any subsequent fiscal year in which such consultation occurs— 

‘‘(A) an assessment of the procedures and objectives 

used by the Secretary for such reviews in the previous fiscal year; 

‘‘(B) any recommendations for such reviews for the 

current fiscal year; and 


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‘‘(C) any comments on grants awarded under subsection (d) during the previous fiscal year. 

‘‘(f) REPORT.—The Secretary shall submit to the Committee on 

Agriculture of the House of Representatives and the Committee on 

Agriculture, Nutrition, and Forestry of the Senate a report on— 

‘‘(1) the results of the consultations with the specialty 

crops committee (and subcommittees thereof) conducted under 

subsection (e) of this section and subsection (g) of section 

1408A of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3123a); 

‘‘(2) the specialty crops committee’s (and subcommittees 

thereof) recommendations, if any, provided to the Secretary 

during such consultations; and 

‘‘(3) the specialty crops committee’s (and subcommittees 

thereof) review of the grants awarded under subsection (d) and 

(j), as applicable, in the previous fiscal year.’’; 

(7) in subsection (g) (as so redesignated)— 

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

‘‘(1) IN GENERAL.—With respect to grants awarded under 

this section, the Secretary shall seek and accept proposals for 

grants.’’; and 

(B) in paragraph (3) (as redesignated by section 

7128(b)(3)(B)), by striking ‘‘this section’’ and inserting ‘‘the 

Initiative’’; 

(8) in subsection (h) (as so redesignated), in the matter 

preceding paragraph (1), by striking ‘‘this section’’ and inserting ‘‘the Initiative’’; 

(9) in subsection (k) (as so redesignated)— 

(A) in paragraph (1)— 

(i) by striking ‘‘(1) MANDATORY FUNDING FOR FISCAL YEARS 2008 THROUGH 2012.—Of the funds’’ and inserting the following: 

‘‘(1) MANDATORY FUNDING.— 

‘‘(A) FISCAL YEARS 2008 THROUGH 2012.—Of the funds’’; 

and 

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

‘‘(B) SUBSEQUENT FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $80,000,000 for fiscal year 

2014 and each fiscal year thereafter. 

‘‘(C) RESERVATION.—For each of fiscal years 2014 

through 2018, the Secretary shall reserve not less than 

$25,000,000 of the funds made available under subparagraph (B) to carry out the program established under subsection (j). 

‘‘(D) AVAILABILITY OF FUNDS.—Funds reserved under 

subparagraph (C) shall remain available and reserved for 

the purpose described in such subparagraph until expended.’’; and 

(B) in paragraph (2)— 

(i) in the heading, by striking ‘‘2008 THROUGH 2012’’ 

and inserting ‘‘2014 THROUGH 2018’’; and 


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(ii) by striking ‘‘2008 through 2012’’ and inserting 

‘‘2014 through 2018’’; and 

(10) by inserting after subsection (i) the following new subsection: 

‘‘(j) EMERGENCY CITRUS DISEASE RESEARCH AND EXTENSION

PROGRAM.— 

‘‘(1) ESTABLISHMENT AND PURPOSE.—The Secretary shall 

establish a competitive research and extension grant program 

to combat diseases of citrus under which the Secretary awards 

competitive grants to eligible entities— 

‘‘(A) to conduct scientific research and extension activities, technical assistance, and development activities to 

combat citrus diseases and pests, both domestic and 

invasive, which pose imminent harm to the United States 

citrus production and threaten the future viability of the 

citrus industry, including huanglongbing and the Asian 

Citrus Psyllid; and 

‘‘(B) to provide support for the dissemination and commercialization of relevant information, techniques, and 

technologies discovered pursuant to research and extension 

activities funded through— 

‘‘(i) the emergency citrus disease research and extension program; or 

‘‘(ii) other research and extension projects intended to solve problems caused by citrus production 

diseases and invasive pests. 

‘‘(2) PRIORITY.—In awarding grants under this subsection, 

the Secretary shall give priority to grants that address the research and extension priorities established pursuant to subsection (g)(4) of section 1408A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3123a). 

‘‘(3) COORDINATION.—When developing the proposed research and extension agenda and budget under subsection 

(g)(2) of section 1408A of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123a) 

for the funds made available under this subsection for a fiscal 

year, the citrus disease subcommittee shall— 

‘‘(A) seek input from Federal and State agencies and 

other entities involved in citrus disease response; and 

‘‘(B) take into account other public and private citrusrelated research and extension projects and the funding for 

such projects. 

‘‘(4) NONDUPLICATION.—The Secretary shall ensure that 

funds made available to carry out the emergency citrus disease 

research and extension activities under this subsection shall be 

in addition to and not supplant funds made available to carry 

out other citrus disease activities carried out by the Department of Agriculture in consultation with State agencies. 

‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

the amounts reserved under subsection (k)(1)(C), there are authorized to be appropriated to carry out this subsection, 

$25,000,000 for each of fiscal years 2014 through 2018. 

‘‘(6) DEFINITIONS.—In this subsection: 


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‘‘(A) CITRUS.—The term ‘citrus’ means edible fruit of 

the family Rutaceae, including any hybrid of such fruits 

and products of such hybrids that are produced for commercial purposes in the United States. 

‘‘(B) CITRUS PRODUCER.—The term ‘citrus producer’ 

means any person that is engaged in the domestic production and commercial sale of citrus in the United States. 

‘‘(C) EMERGENCY CITRUS DISEASE RESEARCH AND EXTENSION PROGRAM.—The term ‘emergency citrus disease 

research and extension program’ means the emergency citrus research and extension grant program established 

under this subsection.’’. 

SEC. 7307. [H7308] FOOD ANIMAL RESIDUE AVOIDANCE DATABASE 

PROGRAM. 

Section 604(e) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7642(e)) is amended by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7308. REPEAL OF NATIONAL SWINE RESEARCH CENTER. 

Section 612 of the Agricultural Research, Extension, and Education Reform Act of 1998 (Public Law 105–185; 112 Stat. 605) is 

repealed. 

SEC. 7309. OFFICE OF PEST MANAGEMENT POLICY. 

Section 614(f) of the Agricultural Research, Extension, and 

Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended— 

(1) by striking ‘‘such sums as are necessary’’; and 

(2) by striking ‘‘section’’ and all that follows and inserting 

the following: ‘‘section— 

‘‘(1) such sums as are necessary for each of fiscal years 

1999 through 2013; and 

‘‘(2) $3,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7310. FORESTRY PRODUCTS ADVANCED UTILIZATION RESEARCH. 

Subtitle B of title VI of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7651 et seq.) is amended by inserting after section 616 (7 U.S.C. 7655) the following new 

section: 

‘‘SEC. 617. FORESTRY PRODUCTS ADVANCED UTILIZATION RESEARCH. 

‘‘(a) ESTABLISHMENT.—The Secretary shall establish a forestry 

and forestry products research and extension initiative to develop 

and disseminate science-based tools that address the needs of the 

forestry sector and their respective regions, forest and timberland 

owners and managers, and forestry products engineering, manufacturing, and related interests. 

‘‘(b) ACTIVITIES.—The initiative described in subsection (a) 

shall include the following activities: 

‘‘(1) Research conducted for purposes of— 

‘‘(A) wood quality improvement with respect to lumber 

strength and grade yield; 

‘‘(B) the development of novel engineered lumber products and renewable energy from wood; and 

‘‘(C) enhancing the longevity, sustainability, and profitability of timberland through sound management and 

utilization. 


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‘‘(2) Demonstration activities and technology transfer to 

demonstrate the beneficial characteristics of wood as a green 

building material, including investments in life cycle assessment for wood products. 

‘‘(3) Projects designed to improve— 

‘‘(A) forestry products, lumber, and evaluation standards and valuation techniques; 

‘‘(B) lumber quality and value-based, on-forest management techniques; and 

‘‘(C) forestry products conversion and manufacturing 

efficiency, productivity, and profitability over the long term 

(including forestry product marketing). 

‘‘(c) GRANTS.— 

‘‘(1) IN GENERAL.—The Secretary shall make competitive 

grants to carry out the activities described in subsection (b). 

‘‘(2) PRIORITIES.—In making grants under this section, the 

Secretary shall give higher priority to activities that are carried out by entities that— 

‘‘(A) are multistate, multiinstitutional, or multidisciplinary; 

‘‘(B) have explicit mechanisms to communicate results 

to producers, forestry industry stakeholders, policymakers, 

and the public; and 

‘‘(C) have— 

‘‘(i) extensive history and demonstrated experience 

in forestry and forestry products research; 

‘‘(ii) existing capacity in forestry products research 

and dissemination; and 

‘‘(iii) a demonstrated means of evaluating and responding to the needs of the related commercial sector. 

‘‘(3) ADMINISTRATION.—In making grants under this section, the Secretary shall follow the requirements of paragraphs 

(4), (7), (8), and (11)(B) of subsection (b) of the Competitive, 

Special, and Facilities Research Grant Act (7 U.S.C. 450i). 

‘‘(4) TERM.—The term of a grant made under this section 

may not exceed 10 years. 

‘‘(d) COORDINATION.— The Secretary shall ensure that any activities carried out under this section are carried out in coordination with the Forest Service, including the Forest Products Laboratory, and other appropriate agencies of the Department. 

‘‘(e) REPORT.—The Secretary shall submit an annual report to 

the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate describing, for the period covered by the report— 

‘‘(1) the research that has been conducted under paragraph 

(2) of subsection (b); 

‘‘(2) the number of buildings the Forest Service has built 

with wood as the primary structural material; and 

‘‘(3) the investments made by the Forest Service in green 

building and wood promotion. 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— 

‘‘(1) IN GENERAL.—There are authorized to be appropriated 

to carry out this section $7,000,000 for each of fiscal years 

2014 through 2018. 


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‘‘(2) MATCHING FUNDS.—To the extent practicable, the Secretary shall match any funds made available under paragraph 

(1) with funds made available under section 7 of the Forest 

and Rangeland Renewable Resources Research Act of 1978 (16 

U.S.C.1646).’’. 

SEC. 7311. REPEAL OF STUDIES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION. 

Subtitle C of title VI of the Agricultural Research, Extension, 

and Education Reform Act of 1998 (7 U.S.C. 7671 et seq.) is repealed. 

Subtitle D—Other Laws 

SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT. 

Section 16(a) of the Critical Agricultural Materials Act (7 

U.S.C. 178n(a)) is amended— 

(1) by striking ‘‘such sums as are necessary’’; and 

(2) by striking ‘‘Act’’ and all that follows and inserting the 

following: ‘‘Act— 

‘‘(1) such sums as are necessary for each of fiscal years 

1991 through 2013; and ‘‘(2) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 

1994. 

(a) DEFINITION OF 1994 INSTITUTION.— (1) IN GENERAL.—Section 532 of the Equity in Educational 

Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 

103–382) is amended to read as follows: 

‘‘SEC. 532. DEFINITION OF 1994 INSTITUTION. 

‘‘In this part, the term ‘1994 Institution’ means any of the following colleges: 

‘‘(1) Aaniiih Nakoda College. 

‘‘(2) Bay Mills Community College. 

‘‘(3) Blackfeet Community College. 

‘‘(4) Cankdeska Cikana Community College. 

‘‘(5) Chief Dull Knife College. 

‘‘(6) College of Menominee Nation. 

‘‘(7) College of the Muscogee Nation. 

‘‘(8) D–Q University. 

‘‘(9) Dine College. 

‘‘(10) Fond du Lac Tribal and Community College. 

‘‘(11) Fort Berthold Community College. 

‘‘(12) Fort Peck Community College. 

‘‘(13) Haskell Indian Nations University. 

‘‘(14) Ilisagvik College. 

‘‘(15) Institute of American Indian and Alaska Native Culture and Arts Development. 

‘‘(16) Keweenaw Bay Ojibwa Community College. 

‘‘(17) Lac Courte Oreilles Ojibwa Community College. 

‘‘(18) Leech Lake Tribal College. 

‘‘(19) Little Big Horn College. 

‘‘(20) Little Priest Tribal College. 

‘‘(21) Navajo Technical College. 

‘‘(22) Nebraska Indian Community College. 


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‘‘(23) Northwest Indian College. 

‘‘(24) Oglala Lakota College. 

‘‘(25) Saginaw Chippewa Tribal College. 

‘‘(26) Salish Kootenai College. 

‘‘(27) Sinte Gleska University. 

‘‘(28) Sisseton Wahpeton College. 

‘‘(29) Sitting Bull College. 

‘‘(30) Southwestern Indian Polytechnic Institute. 

‘‘(31) Stone Child College. 

‘‘(32) Tohono O’odham Community College. 

‘‘(33) Turtle Mountain Community College. 

‘‘(34) United Tribes Technical College. 

‘‘(35) White Earth Tribal and Community College.’’. 

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall take effect on October 1, 2014. 

(b) ENDOWMENT FOR 1994 INSTITUTIONS.—Section 533(b) of the 

Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 

note; Public Law 103–382) is amended in the first sentence by 

striking ‘‘2012’’ and inserting ‘‘2018’’. 

(c) INSTITUTIONAL CAPACITY BUILDING GRANTS.—Section 535 of 

the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 

301 note; Public Law 103–382) is amended by striking ‘‘2012’’ each 

place it appears in subsections (b)(1) and (c) and inserting ‘‘2018’’. 

(d) RESEARCH GRANTS.— 

(1) AUTHORIZATION OF APPROPRIATIONS.—Section 536(c) of 

the Equity in Educational Land-Grant Status Act of 1994 (7 

U.S.C. 301 note; Public Law 103–382) is amended in the first 

sentence by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(2) RESEARCH GRANT REQUIREMENTS.—Section 536(b) of the 

Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 

301 note; Public Law 103–382) is amended by striking ‘‘with at 

least 1 other land-grant college or university’’ and all that follows and inserting the following: ‘‘with— 

‘‘(1) the Agricultural Research Service of the Department 

of Agriculture; or 

‘‘(2) at least 1— 

‘‘(A) other land-grant college or university (exclusive of 

another 1994 Institution); 

‘‘(B) non-land-grant college of agriculture (as defined 

in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); 

or 

‘‘(C) cooperating forestry school (as defined in that section).’’. 

SEC. 7403. RESEARCH FACILITIES ACT. 

Section 6(a) of the Research Facilities Act (7 U.S.C. 390d(a)) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 

GRANT ACT. 

(a) EXTENSION.—Subsection (b)(11)(A) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(11)(A)) is 

amended, in the matter preceding clause (i), by striking ‘‘2012’’ and 

inserting ‘‘2018’’. 


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(b) PRIORITY AREAS.—Subsection (b)(2) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(2)) is 

amended— 

(1) in subparagraph (B)— 

(A) in clause (vii), by striking ‘‘and’’ at the end; 

(B) in clause (viii), by striking the period at the end 

and inserting a semicolon; and 

(C) by adding at the end the following new clauses: 

‘‘(ix) the research and development of surveillance 

methods, vaccines, vaccination delivery systems, or diagnostic tests for pests and diseases, including— 

‘‘(I) epizootic diseases in domestic livestock 

(including deer, elk, bison, and other animals of 

the family Cervidae); and 

‘‘(II) zoonotic diseases (including bovine brucellosis and bovine tuberculosis) in domestic livestock or wildlife reservoirs that present a potential concern to public health; and 

‘‘(x) the identification of animal drug needs and 

the generation and dissemination of data for safe and 

effective therapeutic applications of animal drugs for 

minor species and minor uses of such drugs in major 

species.’’; 

(2) in subparagraph (D)— 

(A) in the heading, by striking ‘‘RENEWABLE ENERGY’’ 

and inserting ‘‘BIOENERGY’’; 

(B) by redesignating clauses (iv), (v), and (vi) as 

clauses (v), (vi), and (vii), respectively; and 

(C) by inserting after clause (iii) the following new 

clause: 

‘‘(iv) the effectiveness of conservation practices 

and technologies designed to address nutrient losses 

and improve water quality;’’; and 

(3) in subparagraph (F)— 

(A) in the matter preceding clause (i), by inserting ‘‘economics,’’ after ‘‘trade,’’; 

(B) by redesignating clauses (v) and (vi) as clauses (vi) 

and (vii), respectively; and 

(C) by inserting after clause (iv) the following new 

clause: 

‘‘(v) the economic costs, benefits, and viability of 

producers adopting conservation practices and technologies designed to improve water quality;’’. 

(c) GENERAL ADMINISTRATION.—Subsection (b)(4) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 

450i(b)(4)) is amended— 

(1) in subparagraph (D), by striking ‘‘and’’ at the end; 

(2) in subparagraph (E), by striking the period at the end 

and inserting ‘‘; and’’; and 

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

‘‘(F) establish procedures, including timelines, under 

which an entity established under a commodity promotion 

law (as such term is defined under section 501(a) of the 

Federal Agriculture Improvement and Reform Act of 1996 

(7 U.S.C. 7401(a))) or a State commodity board (or other 


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equivalent State entity) may directly submit to the Secretary for consideration proposals for requests for applications that specifically address particular issues related to 

the priority areas specified in paragraph (2). ’’. 

(d) SPECIAL CONSIDERATIONS.—Subsection (b)(6) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 

450i(b)(6)) is amended— 

(1) in subparagraph (C), by striking ‘‘and’’ at the end; 

(2) in subparagraph (D), by striking the period at the end 

and inserting ‘‘; and’’; and 

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

‘‘(E) to eligible entities to carry out the specific proposals submitted under procedures established under paragraph (4)(F) only if such specific proposals are consistent 

with a priority area specified in paragraph (2).’’. 

(e) ELIGIBLE ENTITIES.—Subsection (b)(7)(G) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 

450i(b)(7)(G)) is amended by striking ‘‘or corporations’’ and inserting ‘‘, foundations, or corporations’’. 

(f) SPECIAL CONTRIBUTION REQUIREMENT FOR CERTAIN

GRANTS.—Subsection (b)(9) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)(9)) (as amended by section 7128(b)(4)) is amended by adding at the end the following new 

subparagraph: 

‘‘(B) CONTRIBUTION REQUIREMENT FOR COMMODITY

PROMOTION GRANTS.— 

‘‘(i) IN GENERAL.—Subject to clauses (ii) and (iii), 

as a condition of funding a grant under paragraph 

(6)(E), the Secretary shall require that the grant be 

matched with an equal contribution of funds from the 

entities described in paragraph (4)(F) submitting proposals under procedures established under such paragraph. 

‘‘(ii) AVAILABILITY OF FUNDS.— 

‘‘(I) IN GENERAL.—Contributions required by 

clause (i) shall be available to the Secretary for 

obligation and remain available until expended for 

the purpose of making grants under paragraph 

(6)(E). 

‘‘(II) ADMINISTRATION.—Of amounts contributed to the Secretary under clause (i), not more 

than 4 percent may be retained by the Secretary 

to pay administrative costs incurred by the Secretary in carrying out this subsection. 

‘‘(III) RESTRICTION.—Funds contributed to the 

Secretary by an entity under clause (i) in connection with a proposal submitted by that entity 

under procedures established under paragraph 

(4)(F) may only be used to fund grants in connection with that proposal. 

‘‘(IV) REMAINING FUNDS.—Funds contributed 

to the Secretary by an entity under clause (i) that 

remain unobligated at the time of grant closeout 

shall be returned to that entity. 


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‘‘(V) INDIRECT COSTS.—The indirect cost rate 

applicable to appropriated funds for a grant funded under paragraph (6)(E) shall apply to amounts 

contributed by an entity under clause (i). 

‘‘(iii) OTHER MATCHING FUNDS REQUIREMENTS.— 

The contribution requirement under clause (i) shall be 

in addition to any matching funds requirement for 

grant recipients required by section 1492 of the National Agricultural Research, Extension, and Teaching 

Policy Act of 1977.’’. 

(g) INTER-REGIONAL RESEARCH PROJECT NUMBER 4.—Subsection (e) of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i(e)) is amended— 

(1) in paragraph (1)(A), by striking ‘‘minor use pesticides’’ 

and inserting ‘‘pesticides for minor agricultural use and for use 

on specialty crops (as defined in section 3 of the Specialty 

Crops Competitiveness Act of 2004 (7 U.S.C. 1621 note)),’’; and 

(2) in paragraph (4)— 

(A) in subparagraph (A), by inserting ‘‘and for use on 

specialty crops’’ after ‘‘minor agricultural use’’; 

(B) in subparagraph (B), by striking ‘‘and’’ at the end; 

(C) by redesignating subparagraph (C) as subparagraph (G); and 

(D) by inserting after subparagraph (B) the following 

new subparagraphs: 

‘‘(C) prioritize potential pest management technology 

for minor agricultural use and for use on specialty crops; 

‘‘(D) conduct research to develop the data necessary to 

facilitate pesticide registrations, reregistrations, and associated tolerances; 

‘‘(E) assist in removing trade barriers caused by residues of pesticides registered for minor agricultural use and 

for use on domestically grown specialty crops; 

‘‘(F) assist in the registration and reregistration of 

pest management technologies for minor agricultural use 

and for use on specialty crops; and’’. 

SEC. 7405. RENEWABLE RESOURCES EXTENSION ACT OF 1978. 

(a) AUTHORIZATION OF APPROPRIATIONS.—Section 6 of the Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 

amended in the first sentence by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

(b) TERMINATION DATE.—Section 8 of the Renewable Resources 

Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95–306) is 

amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 7406. NATIONAL AQUACULTURE ACT OF 1980. 

Section 10 of the National Aquaculture Act of 1980 (16 U.S.C. 

2809) is amended by striking ‘‘2012’’ each place it appears and inserting ‘‘2018’’. 

SEC. 7407. REPEAL OF USE OF REMOTE SENSING DATA. 

Section 892 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 5935) is repealed. 


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SEC. 7408. REPEAL OF REPORTS UNDER FARM SECURITY AND RURAL 

INVESTMENT ACT OF 2002. 

(a) REPEAL OF REPORT ON PRODUCERS AND HANDLERS FOR ORGANIC PRODUCTS.—Section 7409 of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 5925b note; Public Law 107–171) 

is repealed. 

(b) REPEAL OF REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.—Section 7410 of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 116 Stat. 462) is repealed. 

(c) REPEAL OF STUDY ON NUTRIENT BANKING.—Section 7411 of 

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

5925a note; Public Law 107–171) is repealed. 

SEC. 7409. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM. 

Section 7405 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 3319f) is amended— 

(1) in subsection (c)— 

(A) in paragraph (1), by striking subparagraphs (A) 

through (R) and inserting the following new subparagraphs: 

‘‘(A) basic livestock, forest management, and crop 

farming practices; 

‘‘(B) innovative farm, ranch, and private, nonindustrial 

forest land transfer strategies; 

‘‘(C) entrepreneurship and business training; 

‘‘(D) financial and risk management training (including the acquisition and management of agricultural credit); 

‘‘(E) natural resource management and planning; 

‘‘(F) diversification and marketing strategies; 

‘‘(G) curriculum development; 

‘‘(H) mentoring, apprenticeships, and internships; 

‘‘(I) resources and referral; 

‘‘(J) farm financial benchmarking; 

‘‘(K) assisting beginning farmers or ranchers in acquiring land from retiring farmers and ranchers; 

‘‘(L) agricultural rehabilitation and vocational training 

for veterans; 

‘‘(M) farm safety and awareness; and 

‘‘(N) other similar subject areas of use to beginning 

farmers or ranchers.’’; 

(B) in paragraph (2)(C), by striking ‘‘and nongovernmental organization’’ and inserting ‘‘or nongovernmental 

organization’’; 

(C) in paragraph (7), by striking ‘‘and communitybased organizations’’ and inserting ‘‘, community-based organizations, and school-based agricultural educational organizations’’; 

(D) by striking paragraph (8) and inserting the following new paragraph: 

‘‘(8) SET-ASIDES.— 

‘‘(A) IN GENERAL.—Not less than 5 percent of the funds 

used to carry out this subsection for a fiscal year shall be 

used to support programs and services that address the 

needs of— 


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‘‘(i) limited resource beginning farmers or ranchers (as defined by the Secretary); 

‘‘(ii) socially disadvantaged farmers or ranchers 

(as defined in section 355(e) of the Consolidated Farm 

and Rural Development Act (7 U.S.C. 2003(e)) who are 

beginning farmers or ranchers; and 

‘‘(iii) farmworkers desiring to become farmers or 

ranchers. 

‘‘(B) VETERAN FARMERS AND RANCHERS.—Not less than 

5 percent of the funds used to carry out this subsection for 

a fiscal year shall be used to support programs and services that address the needs of veteran farmers and ranchers (as defined in section 2501(e) of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e))). ’’; 

and 

(E) by adding at the end the following new paragraphs: 

‘‘(11) LIMITATION ON INDIRECT COSTS.—A recipient of a 

grant under this subsection may not use more than 10 percent 

of the funds provided by the grant for the indirect costs of carrying out the initiatives described in paragraph (1). 

‘‘(12) COORDINATION PERMITTED.—A recipient of a grant 

under this subsection using the grant as described in paragraph (8)(B) may coordinate with a recipient of a grant under 

section 1680 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 5933) in addressing the needs of veteran 

farmers and ranchers with disabilities.’’; 

(2) in subsection (h)(1)— 

(A) in the paragraph heading, by striking ‘‘2012’’ and 

inserting ‘‘2018’’; 

(B) in subparagraph (A), by striking ‘‘and’’ at the end; 

(C) in subparagraph (B), by striking the period at the 

end and inserting ‘‘; and’’; and 

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

‘‘(C) $20,000,000 for each of fiscal years 2014 through 

2018, to remain available until expended.’’; and 

(3) in subsection (h)(2)— 

(A) in the paragraph heading, by striking ‘‘2008

THROUGH 2012’’ and inserting ‘‘2014 THROUGH 2018’’; and 

(B) by striking ‘‘2008 through 2012’’ and inserting 

‘‘2014 through 2018’’. 

SEC. 7410. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 

TEACHING POLICY ACT AMENDMENTS OF 1985. 

Section 1431 of the National Agricultural Research, Extension, 

and Teaching Policy Act Amendments of 1985 (Public Law 99–198; 

99 Stat. 1556) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

Subtitle E—Food, Conservation, and Energy Act of 2008 

PART I—AGRICULTURAL SECURITY 

SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION CENTER. 

Section 14112(c) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8912(c)) is amended to read as follows: 


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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2008 through 2013; and 

‘‘(2) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AGRICULTURAL BIOSECURITY PLANNING, PREPARATION, AND RESPONSE. 

Section 14113 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8913) is amended— 

(1) in subsection (a)(2)— 

(A) by striking ‘‘such sums as may be necessary’’; and 

(B) by striking ‘‘subsection’’ and all that follows and 

inserting the following: ‘‘subsection— 

‘‘(A) such sums as are necessary for each of fiscal 

years 2008 through 2013; and 

‘‘(B) $15,000,000 for each of fiscal years 2014 through 

2018.’’; and 

(2) in subsection (b)(2), by striking ‘‘is authorized to be appropriated to carry out this subsection’’ and all that follows 

and inserting the following: ‘‘are authorized to be appropriated 

to carry out this subsection— 

‘‘(A) $25,000,000 for each of fiscal years 2008 through 

2013; and 

‘‘(B) $15,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICULTURAL COUNTERMEASURES. 

Section 14121(b) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8921(b)) is amended by striking ‘‘is authorized to be 

appropriated to carry out this section’’ and all that follows and inserting the following: ‘‘are authorized to be appropriated to carry 

out this section— 

‘‘(1) $50,000,000 for each of fiscal years 2008 through 2013; 

and 

‘‘(2) $15,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM. 

Section 14122(e) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8922(e)) is amended— 

(1) by striking ‘‘sums as are necessary’’; and 

(2) by striking ‘‘section’’ and all that follows and inserting 

the following: ‘‘section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2008 through 2013, to remain available until expended; and 

‘‘(2) $5,000,000 for each of fiscal years 2014 through 2018, 

to remain available until expended.’’. 


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PART II—MISCELLANEOUS PROVISIONS 

SEC. 7511. ENHANCED USE LEASE AUTHORITY PILOT PROGRAM. 

Section 308 of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 3125a) is 

amended— 

(1) in subsection (b)(6)(A), by striking ‘‘5 years’’ and inserting ‘‘10 years’’; and 

(2) in subsection (d)(2), in the matter preceding subparagraph (A), by striking ‘‘1, 3, and 5 years’’ and inserting ‘‘6, 8, 

and 10 years’’. 

SEC. 7512. GRAZINGLANDS RESEARCH LABORATORY. 

Section 7502 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 2019) is amended by striking 

‘‘5-year period’’ and inserting ‘‘10-year period’’. 

SEC. 7513. BUDGET SUBMISSION AND FUNDING. 

Section 7506 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 7614c) is amended— 

(1) by striking subsection (a) and inserting the following 

new subsection: 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) COVERED PROGRAM.—The term ‘covered program’ 

means— 

‘‘(A) each research program carried out by the Agricultural Research Service or the Economic Research Service 

for which annual appropriations are requested in the annual budget submission of the President; and 

‘‘(B) each competitive program carried out by the National Institute of Food and Agriculture for which annual 

appropriations are requested in the annual budget submission of the President. 

‘‘(2) REQUEST FOR APPLICATIONS.—The term ‘request for 

applications’ means a funding announcement published by the 

National Institute of Food and Agriculture that provides detailed information on funding opportunities at the Institute, including the purpose, eligibility, restriction, focus areas, evaluation criteria, regulatory information, and instructions on how 

to apply for such opportunities.’’; and 

(2) by adding at the end the following new subsections: 

‘‘(e) ADDITIONAL PRESIDENTIAL BUDGET SUBMISSION REQUIREMENT.— 

‘‘(1) IN GENERAL.—Each year, the President shall submit to 

Congress for each funding request for a covered program— 

‘‘(A) in the case of the information described in paragraph (2), such information together with the annual budget submission of the President; and 

‘‘(B) in the case of any additional information described in paragraph (3), such additional information within a reasonable period that begins after the date of the annual budget submission of the President. 

‘‘(2) INFORMATION DESCRIBED.—The information described 

in this paragraph includes— 

‘‘(A) baseline information, including with respect to 

each covered program— 


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‘‘(i) the funding level for the program for the fiscal 

year preceding the year for which the annual budget 

submission of the President is submitted; 

‘‘(ii) the funding level requested in the annual 

budget submission of the President, including any increase or decrease in the funding level; and 

‘‘(iii) an explanation justifying any change from 

the funding level specified in clause (i) to the level 

specified in clause (ii); 

‘‘(B) with respect to each covered program that is carried out by the Economic Research Service or the Agricultural Research Service, the location and staff years of the 

program; 

‘‘(C) the proposed funding levels to be allocated to, and 

the expected publication date, scope, and allocation level 

for, each request for applications to be published under or 

associated with— 

‘‘(i) each priority area specified in subsection (b)(2) 

of the Competitive, Special, and Facilities Research 

Grant Act (7 U.S.C. 450i(b)(2)); 

‘‘(ii) each research and extension project carried 

out under section 1621(a) of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 

5811(a)); 

‘‘(iii) each grant awarded under section 1672B(a) 

of the Food, Agriculture, Conservation, and Trade Act 

of 1990 (7 U.S.C. 5925b(a)); 

‘‘(iv) each grant awarded under section 412(d) of 

the Agricultural Research, Extension, and Education 

Reform Act of 1998 (7 U.S.C. 7632(d)); and 

‘‘(v) each grant awarded under section 7405(c)(1) 

of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 3319f(c)(1)); and 

‘‘(D) any other information the Secretary determines 

will increase congressional oversight with respect to covered programs. 

‘‘(3) ADDITIONAL INFORMATION DESCRIBED.—The additional 

information described in this paragraph is information that the 

Secretary, after consulting with the Committee on Agriculture 

of the House of Representatives, the Committee on Agriculture, 

Nutrition, and Forestry of the Senate, and the Subcommittees 

on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies of the Committee on Appropriations of the House of Representatives and the Senate, determines is a necessary revision or clarification to the information 

described in paragraph (2). 

‘‘(4) PROHIBITION.—Unless the President submits the information described in paragraph (2)(C) for a fiscal year, the 

President may not carry out any program during that fiscal 

year that is authorized under— 

‘‘(A) subsection (b) of the Competitive, Special, and Facilities Research Grant Act (7 U.S.C. 450i(b)); 

‘‘(B) section 1621 of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5811); 


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‘‘(C) section 1672B of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5925b); 

‘‘(D) section 412 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7632); or 

‘‘(E) section 7405 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 3319f). 

‘‘(f) REPORT OF THE SECRETARY OF AGRICULTURE.—Each year 

on a date that is not later than the date on which the President 

submits the annual budget, the Secretary shall submit to Congress 

a report containing a description of the agricultural research, extension, and education activities carried out by the Federal Government during the fiscal year that immediately precedes the year for 

which the report is submitted, including— 

‘‘(1) a review of the extent to which those activities— 

‘‘(A) are duplicative or overlap within the Department 

of Agriculture; or 

‘‘(B) are similar to activities carried out by— 

‘‘(i) other Federal agencies; 

‘‘(ii) the States (including the District of Columbia, 

the Commonwealth of Puerto Rico and other territories or possessions of the United States); 

‘‘(iii) institutions of higher education (as defined in 

section 101 of the Higher Education Act of 1965 (20 

U.S.C. 1001)); or 

‘‘(iv) the private sector; and 

‘‘(2) for each report submitted under this section on or 

after January 1, 2014, a 5-year projection of national priorities 

with respect to agricultural research, extension, and education, 

taking into account domestic needs. 

‘‘(g) INTERCHANGEABILITY OF FUNDS.—Nothing in this section 

shall be construed so as to limit the authority of the Secretary 

under section 702(b) of the Department of Agriculture Organic Act 

of 1944 (7 U.S.C. 2257(b)), with respect to the reprogramming or 

transfer of funds.’’. 

SEC. 7514. REPEAL OF SEED DISTRIBUTION. 

Section 7523 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 415–1) is repealed. 

SEC. 7515. NATURAL PRODUCTS RESEARCH PROGRAM. 

Section 7525(e) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 5937(e)) is amended to read as follows: 

‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section $7,000,000 for each 

of fiscal years 2014 through 2018.’’. 

SEC. 7516. SUN GRANT PROGRAM. 

(a) IN GENERAL.—Section 7526 of the Food, Conservation, and 

Energy Act of 2008 (7 U.S.C. 8114) is amended— 

(1) in subsection (a)(4)(B), by striking ‘‘the Department of 

Energy’’ and inserting ‘‘other appropriate Federal agencies (as 

determined by the Secretary)’’; 

(2) in subsection (b)(1)— 

(A) in subparagraph (A), by striking ‘‘at South Dakota 

State University’’; 

(B) in subparagraph (B), by striking ‘‘at the University 

of Tennessee at Knoxville’’; 


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(C) in subparagraph (C), by striking ‘‘at Oklahoma 

State University’’; 

(D) in subparagraph (D), by striking ‘‘at Oregon State 

University’’; 

(E) in subparagraph (E), by striking ‘‘at Cornell University’’; and 

(F) in subparagraph (F), by striking ‘‘at the University 

of Hawaii’’; 

(3) in subsection (c)(1)— 

(A) in subparagraph (B), by striking ‘‘multistate’’ and 

all that follows through ‘‘technology implementation’’ and 

inserting ‘‘integrated, multistate research, extension, and 

education programs on technology development and technology implementation’’; 

(B) by striking subparagraph (C); and 

(C) by redesignating subparagraph (D) as subparagraph (C); 

(4) in subsection (d)— 

(A) in paragraph (1)— 

(i) by striking ‘‘in accordance with paragraph (2)’’; 

(ii) by striking ‘‘gasification’’ and inserting ‘‘bioproducts’’; and 

(iii) by striking ‘‘the Department of Energy’’ and 

inserting ‘‘other appropriate Federal agencies’’; 

(B) by striking paragraph (2); and 

(C) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and 

(5) in subsection (g), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

(b) CONFORMING AMENDMENT.—Section 7526(f)(1) of the Food, 

Conservation, and Energy Act of 2008 (7 U.S.C. 8114(f)) is amended by striking ‘‘subsection (c)(1)(D)(i)’’ and inserting ‘‘subsection 

(c)(1)(C)(i)’’. 

SEC. 7517. REPEAL OF STUDY AND REPORT ON FOOD DESERTS. 

Section 7527 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 2039) is repealed. 

SEC. 7518. REPEAL OF AGRICULTURAL AND RURAL TRANSPORTATION 

RESEARCH AND EDUCATION. 

Section 7529 of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 5938) is repealed. 

Subtitle F—Miscellaneous Provisions 

SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RESEARCH. 

(a) DEFINITIONS.—In this section: 

(1) BOARD.—The term ‘‘Board’’ means the Board of Directors described in subsection (e). 

(2) DEPARTMENT.—The term ‘‘Department’’ means the Department of Agriculture. 

(3) FOUNDATION.—The term ‘‘Foundation’’ means the Foundation for Food and Agriculture Research established under 

subsection (b). 

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Agriculture. 

(b) ESTABLISHMENT.— 


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(1) IN GENERAL.—The Secretary shall establish a nonprofit 

corporation to be known as the ‘‘Foundation for Food and Agriculture Research’’. 

(2) STATUS.—The Foundation shall not be an agency or instrumentality of the United States Government. 

(c) PURPOSES.—The purposes of the Foundation shall be— 

(1) to advance the research mission of the Department by 

supporting agricultural research activities focused on addressing key problems of national and international significance including— 

(A) plant health, production, and plant products; 

(B) animal health, production, and products; 

(C) food safety, nutrition, and health; 

(D) renewable energy, natural resources, and the environment; 

(E) agricultural and food security; 

(F) agriculture systems and technology; and 

(G) agriculture economics and rural communities; and 

(2) to foster collaboration with agricultural researchers 

from the Federal Government, State (as defined in section 

1404 of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977 (7 U.S.C. 3103)) governments, institutions of higher education (as defined in section 101 of the 

Higher Education Act of 1965 (20 U.S.C. 1001)), industry, and 

nonprofit organizations. 

(d) DUTIES.— 

(1) IN GENERAL.—The Foundation shall— 

(A) award grants to, or enter into contracts, memoranda of understanding, or cooperative agreements with, 

scientists and entities, which may include agricultural research agencies in the Department, university consortia, 

public-private partnerships, institutions of higher education, nonprofit organizations, and industry, to efficiently 

and effectively advance the goals and priorities of the 

Foundation; 

(B) in consultation with the Secretary— 

(i) identify existing and proposed Federal intramural and extramural research and development programs relating to the purposes of the Foundation described in subsection (c); and 

(ii) coordinate Foundation activities with those 

programs so as to minimize duplication of existing efforts and to avoid conflicts; 

(C) identify unmet and emerging agricultural research 

needs after reviewing the roadmap for agricultural research, education, and extension authorized by section 

7504 of the Food, Conservation, and Energy Act of 2008 (7 

U.S.C. 7614a); 

(D) facilitate technology transfer and release of information and data gathered from the activities of the Foundation to the agricultural research community; 

(E) promote and encourage the development of the 

next generation of agricultural research scientists; and 


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(F) carry out such other activities as the Board determines to be consistent with the purposes of the Foundation. 

(2) RELATIONSHIP TO OTHER ACTIVITIES.—The activities described in paragraph (1) shall be supplemental to any other activities at the Department and shall not preempt any authority 

or responsibility of the Department under another provision of 

law. 

(e) BOARD OF DIRECTORS.— 

(1) ESTABLISHMENT.—The Foundation shall be governed by 

a Board of Directors. 

(2) COMPOSITION.— 

(A) IN GENERAL.—The Board shall be composed of appointed and ex-officio, nonvoting members. 

(B) EX-OFFICIO MEMBERS.—The ex-officio members of 

the Board shall be the following individuals or designees 

of such individuals: 

(i) The Secretary. 

(ii) The Under Secretary of Agriculture for Research, Education, and Economics. 

(iii) The Administrator of the Agricultural Research Service. 

(iv) The Director of the National Institute of Food 

and Agriculture. 

(v) The Director of the National Science Foundation. 

(C) APPOINTED MEMBERS.— 

(i) IN GENERAL.—The ex-officio members of the 

Board (as specified in subparagraph (B)) shall, by majority vote, appoint to the Board 15 individuals, of 

whom— 

(I) 8 shall be selected from a list of candidates 

to be provided by the National Academy of 

Sciences; and 

(II) 7 shall be selected from lists of candidates 

provided by industry. 

(ii) REQUIREMENTS.— 

(I) EXPERTISE.—The ex-officio members shall 

ensure that a majority of the appointed members 

of the Board have actual experience in agricultural research and, to the extent practicable, represent diverse sectors of agriculture. 

(II) LIMITATION.—No employee of the Federal 

Government may serve as an appointed member 

of the Board under this subparagraph. 

(III) NOT FEDERAL EMPLOYMENT.—Appointment to the Board under this subparagraph shall 

not constitute Federal employment. 

(iii) AUTHORITY.—All appointed members of the 

Board shall be voting members. 

(D) CHAIR.—The Board shall, from among the members of the Board, designate an individual to serve as 

Chair of the Board. 


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(3) INITIAL MEETING.—Not later than 60 days after the 

date of enactment of this Act, the Secretary shall convene a 

meeting of the ex-officio members of the Board— 

(A) to incorporate the Foundation; and 

(B) to appoint the members of the Board in accordance 

with paragraph (2)(C)(i). 

(4) DUTIES.— (A) IN GENERAL.—The Board shall— 

(i) establish bylaws for the Foundation that, at a 

minimum, include— 

(I) policies for the selection of future Board 

members, officers, employees, agents, and contractors of the Foundation; 

(II) policies, including ethical standards, for— 

(aa) the acceptance, solicitation, and disposition of donations and grants to the Foundation; and 

(bb) the disposition of assets of the Foundation, including appropriate limits on the 

ability of donors to designate, by stipulation 

or restriction, the use or recipient of donated 

funds; 

(III) policies that would subject all employees, 

fellows, trainees, and other agents of the Foundation (including members of the Board) to conflict 

of interest standards in the same manner as Federal employees are subject to the conflict of interest standards under section 208 of title 18, United 

States Code; 

(IV) policies for writing, editing, printing, 

publishing, and vending of books and other materials; 

(V) policies for the conduct of the general operations of the Foundation, including a cap on administrative expenses for recipients of a grant, 

contract, or cooperative agreement from the Foundation; and 

(VI) specific duties for the Executive Director; 

(ii) prioritize and provide overall direction for the 

activities of the Foundation; 

(iii) evaluate the performance of the Executive Director; and 

(iv) carry out any other necessary activities regarding the Foundation. 

(B) ESTABLISHMENT OF BYLAWS.—In establishing bylaws under subparagraph (A)(i), the Board shall ensure 

that the bylaws do not— 

(i) reflect unfavorably on the ability of the Foundation to carry out the duties of the Foundation in a 

fair and objective manner; or 

(ii) compromise, or appear to compromise, the integrity of any governmental agency or program, or any 

officer or employee employed by, or involved in, a governmental agency or program. 

(5) TERMS AND VACANCIES.— 


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(A) TERMS.— 

(i) IN GENERAL.—The term of each member of the 

Board appointed under paragraph (2)(C) shall be 5 

years, except that of the members initially appointed, 

8 of the members shall each be appointed for a term 

of 3 years and 7 of the members shall each be appointed for a term of 2 years. 

(ii) PARTIAL TERMS.—If a member of the Board 

does not serve the full term applicable under clause 

(i), the individual appointed to fill the resulting vacancy shall be appointed for the remainder of the term 

of the predecessor of the individual. 

(iii) TRANSITION.—A member of the Board may 

continue to serve after the expiration of the term of 

the member until a successor is appointed. 

(B) VACANCIES.—After the initial appointment of the 

members of the Board under paragraph (2)(C), any vacancy in the membership of the Board shall be filled as 

provided in the bylaws established under paragraph 

(4)(A)(i). 

(6) COMPENSATION.—Members of the Board may not receive compensation for service on the Board but may be reimbursed for travel, subsistence, and other necessary expenses incurred in carrying out the duties of the Board. 

(7) MEETINGS AND QUORUM.—A majority of the members of 

the Board shall constitute a quorum for purposes of conducting 

the business of the Board. 

(f) ADMINISTRATION.— 

(1) EXECUTIVE DIRECTOR.— 

(A) IN GENERAL.—The Board shall hire an Executive 

Director who shall carry out such duties and responsibilities as the Board may prescribe. 

(B) SERVICE.—The Executive Director shall serve at 

the pleasure of the Board. 

(2) ADMINISTRATIVE POWERS.— 

(A) IN GENERAL.—In carrying out this section, the 

Board, acting through the Executive Director, may— 

(i) adopt, alter, and use a corporate seal, which 

shall be judicially noticed; 

(ii) hire, promote, compensate, and discharge 1 or 

more officers, employees, and agents, as may be necessary, and define the duties of the officers, employees, and agents; 

(iii) solicit and accept any funds, gifts, grants, devises, or bequests of real or personal property made to 

the Foundation, including such support from private 

entities; 

(iv) prescribe the manner in which— 

(I) real or personal property of the Foundation 

is acquired, held, and transferred; 

(II) general operations of the Foundation are 

to be conducted; and 

(III) the privileges granted to the Board by 

law are exercised and enjoyed; 


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(v) with the consent of the applicable executive department or independent agency, use the information, 

services, and facilities of the department or agency in 

carrying out this section on a reimbursable basis; 

(vi) enter into contracts with public and private 

organizations for the writing, editing, printing, and 

publishing of books and other material; 

(vii) hold, administer, invest, and spend any 

funds, gifts, grant, devise, or bequest of real or personal property made to the Foundation; 

(viii) enter into such contracts, leases, cooperative 

agreements, and other transactions as the Board considers appropriate to conduct the activities of the 

Foundation; 

(ix) modify or consent to the modification of any 

contract or agreement to which the Foundation is a 

party or in which the Foundation has an interest; 

(x) take such action as may be necessary to obtain 

and maintain patents for and to license inventions (as 

defined in section 201 of title 35, United States Code) 

developed by the Foundation, employees of the Foundation, or derived from the collaborative efforts of the 

Foundation; 

(xi) sue and be sued in the corporate name of the 

Foundation, and complain and defend in courts of 

competent jurisdiction; 

(xii) appoint other groups of advisors as may be 

determined necessary to carry out the functions of the 

Foundation; and 

(xiii) exercise such other incidental powers as are 

necessary to carry out the duties and functions of the 

Foundation in accordance with this section. 

(B) LIMITATION.—No appointed member of the Board 

or officer or employee of the Foundation or of any program 

established by the Foundation (other than ex-officio members of the Board) shall exercise administrative control 

over any Federal employee. 

(3) RECORDS.— 

(A) AUDITS.—The Foundation shall— 

(i) provide for annual audits of the financial condition of the Foundation; and 

(ii) make the audits, and all other records, documents, and other papers of the Foundation, available 

to the Secretary and the Comptroller General of the 

United States for examination or audit. 

(B) REPORTS.— 

(i) ANNUAL REPORT ON FOUNDATION.— 

(I) IN GENERAL.—Not later than 5 months following the end of each fiscal year, the Foundation 

shall publish a report for the preceding fiscal year 

that includes— 

(aa) a description of Foundation activities, 

including accomplishments; and 


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(bb) a comprehensive statement of the operations and financial condition of the Foundation. 

(II) FINANCIAL CONDITION.—Each report 

under subclause (I) shall include a description of 

all gifts, grants, devises, or bequests to the Foundation of real or personal property or money, 

which shall include— 

(aa) the source of the gifts, grants, devises, or bequests; and 

(bb) any restrictions on the purposes for 

which the gift, grant, devise, or bequest may 

be used. 

(III) AVAILABILITY.—The Foundation shall— 

(aa) make copies of each report submitted 

under subclause (I) available for public inspection; and 

(bb) on request, provide a copy of the report to any individual. 

(IV) PUBLIC MEETING.—The Board shall hold 

an annual public meeting to summarize the activities of the Foundation. 

(ii) GRANT REPORTING.—Any recipient of a grant 

under subsection (d)(1)(A) shall provide the Foundation with a report at the conclusion of any research or 

studies conducted that describes the results of the research or studies, including any data generated. 

(4) INTEGRITY.— (A) IN GENERAL.—To ensure integrity in the operations 

of the Foundation, the Board shall develop and enforce 

procedures relating to standards of conduct, financial disclosure statements, conflicts of interest (including recusal 

and waiver rules), audits, and any other matters determined appropriate by the Board. 

(B) FINANCIAL CONFLICTS OF INTEREST.—Any individual who is an officer, employee, or member of the Board 

is prohibited from any participation in deliberations by the 

Foundation of a matter that would directly or predictably 

affect any financial interest of— 

(i) the individual; 

(ii) a relative (as defined in section 109 of the Ethics in Government Act of 1978 (5 U.S.C. App.)) of that 

individual; or 

(iii) a business organization or other entity in 

which the individual has an interest, including an organization or other entity with which the individual is 

negotiating employment. 

(5) INTELLECTUAL PROPERTY.—The Board shall adopt written standards to govern the ownership and licensing of any intellectual property rights derived from the collaborative efforts 

of the Foundation. 

(6) LIABILITY.—The United States shall not be liable for 

any debts, defaults, acts, or omissions of the Foundation nor 

shall the full faith and credit of the United States extend to 

any obligations of the Foundation. 


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(g) FUNDS.— (1) MANDATORY FUNDING.— (A) IN GENERAL.—On the date of the enactment of this 

Act, of the funds of the Commodity Credit Corporation, the 

Secretary shall transfer to the Foundation to carry out this 

section $200,000,000, to remain available until expended 

under the conditions described in subparagraph (B). 

(B) CONDITIONS ON EXPENDITURE.—The Foundation 

may use the funds made available under subparagraph (A) 

to carry out the purposes of the Foundation only to the extent that the Foundation secures an equal amount of nonFederal matching funds for each expenditure. 

(C) PROHIBITION ON CONSTRUCTION.—None of the 

funds made available under subparagraph (A) may be used 

for construction. 

(2) SEPARATION OF FUNDS.—The Executive Director shall 

ensure that any funds received under paragraph (1) are held 

in separate accounts from funds received from nongovernmental entities as described in subsection (f)(2)(A)(iii). 

SEC. 7602. CONCESSIONS AND AGREEMENTS WITH NONPROFIT ORGANIZATIONS FOR NATIONAL ARBORETUM. 

Section 6 of the Act of March 4, 1927 (20 U.S.C. 196), is 

amended— 

(1) in subsection (a), by striking paragraph (1) and inserting the following new paragraph: 

‘‘(1) negotiate concessions and agreements for the National 

Arboretum with nonprofit scientific or educational organizations, the interests of which are complementary to the mission 

of the National Arboretum, or nonprofit organizations that support the purpose of the National Arboretum, except that the 

net proceeds of the organizations from the concessions or 

agreements, as applicable, shall be used exclusively for— 

‘‘(A) the research and educational work for the benefit 

of the National Arboretum; and 

‘‘(B) the operation and maintenance of the facilities of 

the National Arboretum, including enhancements, upgrades, restoration, and conservation;’’; and 

(2) by adding at the end the following new subsection: 

‘‘(d) RECOGNITION OF DONORS.—A nonprofit organization that 

entered into a concession or agreement under subsection (a)(1) may 

recognize donors if that recognition is approved in advance by the 

Secretary of Agriculture. In considering whether to approve such 

recognition, the Secretary shall broadly exercise the discretion of 

the Secretary to the fullest extent allowed under Federal law.’’. 

SEC. 7603. AGRICULTURAL AND FOOD LAW RESEARCH, LEGAL TOOLS, 

AND INFORMATION. 

(a) PARTNERSHIPS.—The Secretary of Agriculture, acting 

through the National Agricultural Library, shall support the dissemination of objective, scholarly, and authoritative agricultural 

and food law research, legal tools, and information by entering into 

cooperative agreements with institutions of higher education (as 

defined in section 101 of the Higher Education Act of 1965 (20 

U.S.C. 1001)) that on the date of enactment of this Act are carrying 

out objective programs for research, legal tools, and information in 

agricultural and food law. 


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(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section $5,000,000 for fiscal 

year 2014 and each fiscal year thereafter. 

SEC. 7604. COTTON DISEASE RESEARCH REPORT. 

Not later than 180 days after the date of the enactment of this 

Act, the Secretary shall submit to Congress a report on the fungus 

Fusarium oxysporum f. sp. vasinfectum race 4 (referred to in this 

section as ‘‘FOV Race 4’’) and the impact of such fungus on cotton, 

including— 

(1) an overview of the threat FOV Race 4 poses to the cotton industry in the United States; 

(2) the status and progress of Federal research initiatives 

to detect, contain, or eradicate FOV Race 4, including current 

FOV Race 4-specific research projects; and 

(3) a comprehensive strategy to combat FOV Race 4 that 

establishes— 

(A) detection and identification goals; 

(B) containment goals; 

(C) eradication goals; and 

(D) a plan to partner with the cotton industry in the 

United States to maximize resources, information sharing, 

and research responsiveness and effectiveness. 

SEC. 7605. MISCELLANEOUS TECHNICAL CORRECTIONS. 

Sections 7408 and 7409 of the Food, Conservation, and Energy 

Act of 2008 (Public Law 110–246; 122 Stat. 2013) are both amended by striking ‘‘Title III of the Department of Agriculture Reorganization Act of 1994’’ and inserting ‘‘Title III of the Federal Crop 

Insurance Reform and Department of Agriculture Reorganization 

Act of 1994’’. 

SEC. 7606. LEGITIMACY OF INDUSTRIAL HEMP RESEARCH. 

(a) IN GENERAL.—Notwithstanding the Controlled Substances 

Act (21 U.S.C. 801 et seq.), the Safe and Drug-Free Schools and 

Communities Act (20 U.S.C. 7101 et seq.), chapter 81 of title 41, 

United States Code, or any other Federal law, an institution of 

higher education (as defined in section 101 of the Higher Education 

Act of 1965 (20 U.S.C. 1001)) or a State department of agriculture 

may grow or cultivate industrial hemp if— 

(1) the industrial hemp is grown or cultivated for purposes 

of research conducted under an agricultural pilot program or 

other agricultural or academic research; and 

(2) the growing or cultivating of industrial hemp is allowed 

under the laws of the State in which such institution of higher 

education or State department of agriculture is located and 

such research occurs. 

(b) DEFINITIONS.—In this section: 

(1) AGRICULTURAL PILOT PROGRAM.—The term ‘‘agricultural 

pilot program’’ means a pilot program to study the growth, cultivation, or marketing of industrial hemp— 

(A) in States that permit the growth or cultivation of 

industrial hemp under the laws of the State; and 

(B) in a manner that— 

(i) ensures that only institutions of higher education and State departments of agriculture are used 

to grow or cultivate industrial hemp; 


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(ii) requires that sites used for growing or cultivating industrial hemp in a State be certified by, and 

registered with, the State department of agriculture; 

and 

(iii) authorizes State departments of agriculture to 

promulgate regulations to carry out the pilot program 

in the States in accordance with the purposes of this 

section. 

(2) INDUSTRIAL HEMP.—The term ‘‘industrial hemp’’ means 

the plant Cannabis sativa L. and any part of such plant, 

whether growing or not, with a delta-9 tetrahydrocannabinol 

concentration of not more than 0.3 percent on a dry weight 

basis. 

(3) STATE DEPARTMENT OF AGRICULTURE.—The term ‘‘State 

department of agriculture’’ means the agency, commission, or 

department of a State government responsible for agriculture 

within the State. 

TITLE VIII—FORESTRY 

Subtitle A—Repeal of Certain Forestry Programs 

SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM. 

(a) REPEAL.—Section 4 of the Cooperative Forestry Assistance 

Act of 1978 (16 U.S.C. 2103) is repealed. 

(b) CONFORMING AMENDMENT.—Section 8002 of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171; 16 

U.S.C. 2103 note) is amended by striking subsection (a). 

SEC. 8002. WATERSHED FORESTRY ASSISTANCE PROGRAM. 

Section 6 of the Cooperative Forestry Assistance Act of 1978 

(16 U.S.C. 2103b) is repealed. 

SEC. 8003. EXPIRED COOPERATIVE NATIONAL FOREST PRODUCTS 

MARKETING PROGRAM. 

Section 18 of the Cooperative Forestry Assistance Act of 1978 

(16 U.S.C. 2112) is repealed. 

SEC. 8004. HISPANIC-SERVING INSTITUTION AGRICULTURAL LAND NATIONAL RESOURCES LEADERSHIP PROGRAM. 

Section 8402 of the Food, Conservation, and Energy Act of 

2008 (16 U.S.C. 1649a) is repealed. 

SEC. 8005. TRIBAL WATERSHED FORESTRY ASSISTANCE PROGRAM. 

Section 303 of the Healthy Forests Restoration Act of 2003 (16 

U.S.C. 6542) is repealed. 

SEC. 8006. SEPARATE FOREST SERVICE DECISIONMAKING AND APPEALS PROCESS. 

(a) REPEAL.—Section 322 of the Department of the Interior and 

Related Agencies Appropriations Act, 1993 (16 U.S.C. 1612 note; 

Public Law 102–381) is repealed. 

(b) FOREST SERVICE PRE-DECISIONAL OBJECTION PROCESS.— Section 428 of division E of the Consolidated Appropriations Act, 

2012 (16 U.S.C. 6515 note; Public Law 112–74) shall not apply to 

any project or activity implementing a land and resource management plan developed under section 6 of the Forest and Rangeland 

Renewable Resources Planning Act of 1974 (16 U.S.C. 1604) that 

is categorically excluded from documentation in an environmental 


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assessment or an environmental impact statement under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

Subtitle B—Reauthorization of Cooperative Forestry 

Assistance Act of 1978 Programs 

SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR FOREST 

RESOURCES. 

Section 2A of the Cooperative Forestry Assistance Act of 1978 

(16 U.S.C. 2101a) is amended— 

(1) in subsection (c)— 

(A) in paragraph (4), by striking ‘‘and’’; 

(B) by redesignating paragraph (5) as paragraph (6); 

and 

(C) by inserting after paragraph (4) the following new 

paragraph: 

‘‘(5) as feasible, appropriate military installations where 

the voluntary participation and management of private or 

State-owned or other public forestland is able to support, promote, and contribute to the missions of such installations; 

and’’; and 

(2) in subsection (f)(1), by striking ‘‘2012’’ and inserting 

‘‘2018’’. 

Subtitle C—Reauthorization of Other Forestry-related Laws 

SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES. 

Section 2371(d)(2) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is amended by striking 

‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY. 

Section 2405(d) of the Global Climate Change Prevention Act 

of 1990 (7 U.S.C. 6704(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 8203. HEALTHY FORESTS RESERVE PROGRAM. 

(a) DEFINITION OF ACREAGE OWNED BY INDIAN TRIBES.—Section 502(e)(3) of the Healthy Forests Restoration Act (16 U.S.C. 

6572(e)(3)) is amended— 

(1) in subparagraph (C), by striking ‘‘subparagraphs (A) 

and (B)’’ and inserting ‘‘clauses (i) and (ii)’’; 

(2) by redesignating subparagraphs (A) through (C) as 

clauses (i) through (iii), respectively, and indenting appropriately; and 

(3) by striking ‘‘In the case of’’ and inserting the following: 

‘‘(A) DEFINITION OF ACREAGE OWNED BY INDIAN

TRIBES.—In this paragraph, the term ‘acreage owned by 

Indian tribes’ includes— 

‘‘(i) land that is held in trust by the United States 

for Indian tribes or individual Indians; 

‘‘(ii) land, the title to which is held by Indian 

tribes or individual Indians subject to Federal restrictions against alienation or encumbrance; 

‘‘(iii) land that is subject to rights of use, occupancy, and benefit of certain Indian tribes; 


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‘‘(iv) land that is held in fee title by an Indian 

tribe; or 

‘‘(v) land that is owned by a native corporation 

formed under section 17 of the Act of June 18, 1934 

(commonly known as the ‘Indian Reorganization Act’) 

(25 U.S.C. 477) or section 8 of the Alaska Native 

Claims Settlement Act (43 U.S.C. 1607); or 

‘‘(vi) a combination of 1 or more types of land described in clauses (i) through (v). 

‘‘(B) ENROLLMENT OF ACREAGE.—In the case of’’. 

(b) CHANGE IN FUNDING SOURCE FOR HEALTHY FORESTS RESERVE PROGRAM.—Section 508 of the Healthy Forests Restoration 

Act of 2003 (16 U.S.C. 6578) is amended— 

(1) in subsection (a), by striking ‘‘IN GENERAL’’ and inserting ‘‘FISCAL YEARS 2009 THROUGH 2013’’; 

(2) by redesignating subsection (b) as subsection (d); and 

(3) by inserting after subsection (a) the following: 

‘‘(b) FISCAL YEARS 2014 THROUGH 2018.—There is authorized 

to be appropriated to the Secretary of Agriculture to carry out this 

section $12,000,000 for each of fiscal years 2014 through 2018. 

‘‘(c) ADDITIONAL SOURCE OF FUNDS.—In addition to funds appropriated pursuant to the authorization of appropriations in subsection (b) for a fiscal year, the Secretary may use such amount of 

the funds appropriated for that fiscal year to carry out the Soil 

Conservation and Domestic Allotment Act (16 U.S.C. 590a et seq.) 

as the Secretary determines necessary to cover the cost of technical 

assistance, management, and enforcement responsibilities for land 

enrolled in the healthy forests reserve program pursuant to subsections (a) and (b) of section 504.’’. 

SEC. 8204. INSECT AND DISEASE INFESTATION. 

Title VI of the Healthy Forests Restoration Act of 2003 (16 

U.S.C. 6591 et seq.) is amended by adding at the end the following: 

‘‘SEC. 602. DESIGNATION OF TREATMENT AREAS. 

‘‘(a) DEFINITION OF DECLINING FOREST HEALTH.—In this section, the term ‘declining forest health’ means a forest that is experiencing— 

‘‘(1) substantially increased tree mortality due to insect or 

disease infestation; or 

‘‘(2) dieback due to infestation or defoliation by insects or 

disease. 

‘‘(b) DESIGNATION OF TREATMENT AREAS.— ‘‘(1) INITIAL AREAS.—Not later than 60 days after the date 

of enactment of the Agricultural Act of 2014, the Secretary 

shall, if requested by the Governor of the State, designate as 

part of an insect and disease treatment program 1 or more 

landscape-scale areas, such as subwatersheds (sixth-level hydrologic units, according to the System of Hydrologic Unit 

Codes of the United States Geological Survey), in at least 1 national forest in each State that is experiencing an insect or disease epidemic. 

‘‘(2) ADDITIONAL AREAS.—After the end of the 60-day period described in paragraph (1), the Secretary may designate 

additional landscape-scale areas under this section as needed 

to address insect or disease threats. 


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‘‘(c) REQUIREMENTS.—To be designated a landscape-scale area 

under subsection (b), the area shall be— 

‘‘(1) experiencing declining forest health, based on annual 

forest health surveys conducted by the Secretary; 

‘‘(2) at risk of experiencing substantially increased tree 

mortality over the next 15 years due to insect or disease infestation, based on the most recent National Insect and Disease 

Risk Map published by the Forest Service; or 

‘‘(3) in an area in which the risk of hazard trees poses an 

imminent risk to public infrastructure, health, or safety. 

‘‘(d) TREATMENT OF AREAS.— ‘‘(1) IN GENERAL.—The Secretary may carry out priority 

projects on Federal land in the areas designated under subsection (b) to reduce the risk or extent of, or increase the resilience to, insect or disease infestation in the areas. 

‘‘(2) AUTHORITY.—Any project under paragraph (1) for 

which a public notice to initiate scoping is issued on or before 

September 30, 2018, may be carried out in accordance with 

subsections (b), (c), and (d) of section 102, and sections 104, 

105, and 106. 

‘‘(3) EFFECT.—Projects carried out under this subsection 

shall be considered authorized hazardous fuel reduction 

projects for purposes of the authorities described in paragraph 

(2). 

‘‘(4) REPORT.— ‘‘(A) IN GENERAL.—In accordance with the schedule described in subparagraph (B), the Secretary shall issue 2 reports on actions taken to carry out this subsection, including— 

‘‘(i) an evaluation of the progress towards project 

goals; and 

‘‘(ii) recommendations for modifications to the 

projects and management treatments. 

‘‘(B) SCHEDULE.—The Secretary shall— 

‘‘(i) not earlier than September 30, 2018, issue the 

initial report under subparagraph (A); and 

‘‘(ii) not earlier than September 30, 2024, issue 

the second report under that subparagraph. 

‘‘(e) TREE RETENTION.—The Secretary shall carry out projects 

under subsection (d) in a manner that maximizes the retention of 

old-growth and large trees, as appropriate for the forest type, to the 

extent that the trees promote stands that are resilient to insects 

and disease. 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $200,000,000 for each 

of fiscal years 2014 through 2024. 

‘‘SEC. 603. ADMINISTRATIVE REVIEW. 

‘‘(a) IN GENERAL.—Except as provided in subsection (d), a 

project described in subsection (b) that is conducted in accordance 

with section 602(d) may be— 

‘‘(1) considered an action categorically excluded from the 

requirements of Public Law 91–190 (42 U.S.C. 4321 et seq.); 

and 

‘‘(2) exempt from the special administrative review process 

under section 105. 


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‘‘(b) COLLABORATIVE RESTORATION PROJECT.— ‘‘(1) IN GENERAL.—A project referred to in subsection (a) is 

a project to carry out forest restoration treatments that— 

‘‘(A) maximizes the retention of old-growth and large 

trees, as appropriate for the forest type, to the extent that 

the trees promote stands that are resilient to insects and 

disease; 

‘‘(B) considers the best available scientific information 

to maintain or restore the ecological integrity, including 

maintaining or restoring structure, function, composition, 

and connectivity; and 

‘‘(C) is developed and implemented through a collaborative process that— 

‘‘(i) includes multiple interested persons representing diverse interests; and 

‘‘(ii)(I) is transparent and nonexclusive; or 

‘‘(II) meets the requirements for a resource advisory committee under subsections (c) through (f) of 

section 205 of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7125). 

‘‘(2) INCLUSION.—A project under this subsection may carry 

out part of a proposal that complies with the eligibility requirements of the Collaborative Forest Landscape Restoration Program under section 4003(b) of the Omnibus Public Land Management Act of 2009 (16 U.S.C. 7303(b)). 

‘‘(c) LIMITATIONS.— ‘‘(1) PROJECT SIZE.—A project under this section may not 

exceed 3000 acres. 

‘‘(2) LOCATION.—A project under this section shall be limited to areas— 

‘‘(A) in the wildland-urban interface; or 

‘‘(B) Condition Classes 2 or 3 in Fire Regime Groups 

I, II, or III, outside the wildland-urban interface. 

‘‘(3) ROADS.— 

‘‘(A) PERMANENT ROADS.— ‘‘(i) PROHIBITION ON ESTABLISHMENT.—A project 

under this section shall not include the establishment 

of permanent roads. 

‘‘(ii) EXISTING ROADS.—The Secretary may carry 

out necessary maintenance and repairs on existing 

permanent roads for the purposes of this section. 

‘‘(B) TEMPORARY ROADS.—The Secretary shall decommission any temporary road constructed under a project 

under this section not later than 3 years after the date on 

which the project is completed. 

‘‘(d) EXCLUSIONS.—This section does not apply to— 

‘‘(1) a component of the National Wilderness Preservation 

System; 

‘‘(2) any Federal land on which, by Act of Congress or Presidential proclamation, the removal of vegetation is restricted or 

prohibited; 

‘‘(3) a congressionally designated wilderness study area; or 

‘‘(4) an area in which activities under subsection (a) would 

be inconsistent with the applicable land and resource management plan. 


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‘‘(e) FOREST MANAGEMENT PLANS.—All projects and activities 

carried out under this section shall be consistent with the land and 

resource management plan established under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 

U.S.C. 1604) for the unit of the National Forest System containing 

the projects and activities. 

‘‘(f) PUBLIC NOTICE AND SCOPING.—The Secretary shall conduct 

public notice and scoping for any project or action proposed in accordance with this section. 

‘‘(g) ACCOUNTABILITY.— 

‘‘(1) IN GENERAL.—The Secretary shall prepare an annual 

report on the use of categorical exclusions under this section 

that includes a description of all acres (or other appropriate 

unit) treated through projects carried out under this section. 

‘‘(2) SUBMISSION.—Not later than 1 year after the date of 

enactment of this section, and each year thereafter, the Secretary shall submit the reports required under paragraph (1) 

to— 

‘‘(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate; 

‘‘(B) the Committee on Environment and Public Works 

of the Senate; 

‘‘(C) the Committee on Agriculture of the House of 

Representatives; 

‘‘(D) the Committee on Natural Resources of the House 

of Representatives; and 

‘‘(E) the Government Accountability Office.’’. 

SEC. 8205. STEWARDSHIP END RESULT CONTRACTING PROJECTS. 

(a) IN GENERAL.—Title VI of the Healthy Forests Restoration 

Act of 2003 (16 U.S.C. 6591) (as amended by section 8204) is 

amended by adding at the end the following: 

‘‘SEC. 604. STEWARDSHIP END RESULT CONTRACTING PROJECTS. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) CHIEF.—The term ‘Chief’ means the Chief of the Forest Service. 

‘‘(2) DIRECTOR.—The term ‘Director’ means the Director of 

the Bureau of Land Management. 

‘‘(b) PROJECTS.—The Chief and the Director, via agreement or 

contract as appropriate, may enter into stewardship contracting 

projects with private persons or other public or private entities to 

perform services to achieve land management goals for the national 

forests and the public lands that meet local and rural community 

needs. 

‘‘(c) LAND MANAGEMENT GOALS.—The land management goals 

of a project under subsection (b) may include any of the following: 

‘‘(1) Road and trail maintenance or obliteration to restore 

or maintain water quality. 

‘‘(2) Soil productivity, habitat for wildlife and fisheries, or 

other resource values. 

‘‘(3) Setting of prescribed fires to improve the composition, 

structure, condition, and health of stands or to improve wildlife 

habitat. 


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‘‘(4) Removing vegetation or other activities to promote 

healthy forest stands, reduce fire hazards, or achieve other 

land management objectives. 

‘‘(5) Watershed restoration and maintenance. 

‘‘(6) Restoration and maintenance of wildlife and fish. 

‘‘(7) Control of noxious and exotic weeds and reestablishing 

native plant species. 

‘‘(d) AGREEMENTS OR CONTRACTS.— ‘‘(1) PROCUREMENT PROCEDURE.—A source for performance 

of an agreement or contract under subsection (b) shall be selected on a best-value basis, including consideration of source 

under other public and private agreements or contracts. 

‘‘(2) CONTRACT FOR SALE OF PROPERTY.—A contract entered 

into under this section may, at the discretion of the Secretary 

of Agriculture, be considered a contract for the sale of property 

under such terms as the Secretary may prescribe without regard to any other provision of law. 

‘‘(3) TERM.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the Chief and the Director may enter into a contract under subsection (b) in accordance with section 3903 

of title 41, United States Code. 

‘‘(B) MAXIMUM.—The period of the contract under subsection (b) may exceed 5 years but may not exceed 10 

years. 

‘‘(4) OFFSETS.— ‘‘(A) IN GENERAL.—The Chief and the Director may 

apply the value of timber or other forest products removed 

as an offset against the cost of services received under the 

agreement or contract described in subsection (b). 

‘‘(B) METHODS OF APPRAISAL.—The value of timber or 

other forest products used as an offset under subparagraph 

(A)— 

‘‘(i) shall be determined using appropriate methods of appraisal commensurate with the quantity of 

products to be removed; and 

‘‘(ii) may— 

‘‘(I) be determined using a unit of measure appropriate to the contracts; and 

‘‘(II) may include valuing products on a peracre basis. 

‘‘(5) RELATION TO OTHER LAWS.—Notwithstanding subsections (d) and (g) of section 14 of the National Forest Management Act of 1976 (16 U.S.C. 472a), the Chief may enter into 

an agreement or contract under subsection (b). 

‘‘(6) CONTRACTING OFFICER.—Notwithstanding any other 

provision of law, the Secretary or the Secretary of the Interior 

may determine the appropriate contracting officer to enter into 

and administer an agreement or contract under subsection (b). 

‘‘(7) FIRE LIABILITY PROVISIONS.—Not later than 90 days 

after the date of enactment of this section, the Chief and the 

Director shall issue for use in all contracts and agreements 

under this section fire liability provisions that are in substantially the same form as the fire liability provisions contained 

in— 


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‘‘(A) integrated resource timber contracts, as described 

in the Forest Service contract numbered 2400–13, part H, 

section H.4; and 

‘‘(B) timber sale contracts conducted pursuant to section 14 of the National Forest Management Act of 1976 (16 

U.S.C. 472a). 

‘‘(e) RECEIPTS.— ‘‘(1) IN GENERAL.—The Chief and the Director may collect 

monies from an agreement or contract under subsection (b) if 

the collection is a secondary objective of negotiating the contract that will best achieve the purposes of this section. 

‘‘(2) USE.—Monies from an agreement or contract under 

subsection (b)— 

‘‘(A) may be retained by the Chief and the Director; 

and 

‘‘(B) shall be available for expenditure without further 

appropriation at the project site from which the monies are 

collected or at another project site. 

‘‘(3) RELATION TO OTHER LAWS.— 

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law, the value of services received by the Chief or 

the Director under a stewardship contract project conducted under this section, and any payments made or resources provided by the contractor, Chief, or Director shall 

not be considered monies received from the National Forest System or the public lands. 

‘‘(B) KNUTSON-VANDERBERG ACT.—The Act of June 9, 

1930 (commonly known as the ‘Knutson-Vanderberg Act’) 

(16 U.S.C. 576 et seq.) shall not apply to any agreement 

or contract under subsection (b). 

‘‘(f) COSTS OF REMOVAL.—Notwithstanding the fact that a contractor did not harvest the timber, the Chief may collect deposits 

from a contractor covering the costs of removal of timber or other 

forest products under— 

‘‘(1) the Act of August 11, 1916 (16 U.S.C. 490); and 

‘‘(2) the Act of June 30, 1914 (16 U.S.C. 498). 

‘‘(g) PERFORMANCE AND PAYMENT GUARANTEES.— ‘‘(1) IN GENERAL.—The Chief and the Director may require 

performance and payment bonds under sections 28.103–2 and 

28.103–3 of the Federal Acquisition Regulation, in an amount 

that the contracting officer considers sufficient to protect the 

investment in receipts by the Federal Government generated 

by the contractor from the estimated value of the forest products to be removed under a contract under subsection (b). 

‘‘(2) EXCESS OFFSET VALUE.—If the offset value of the forest 

products exceeds the value of the resource improvement treatments, the Chief and the Director may— 

‘‘(A) collect any residual receipts under the Act of June 

9, 1930 (commonly known as the ‘Knutson-Vanderberg 

Act’) (16 U.S.C. 576 et seq.); and 

‘‘(B) apply the excess to other authorized stewardship 

projects. 

‘‘(h) MONITORING AND EVALUATION.— 

‘‘(1) IN GENERAL.—The Chief and the Director shall establish a multiparty monitoring and evaluation process that acVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00281 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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cesses the stewardship contracting projects conducted under 

this section. 

‘‘(2) PARTICIPANTS.—Other than the Chief and Director, 

participants in the process described in paragraph (1) may include— 

‘‘(A) any cooperating governmental agencies, including 

tribal governments; and 

‘‘(B) any other interested groups or individuals. 

‘‘(i) REPORTING.—Not later than 1 year after the date of enactment of this section, and annually thereafter, the Chief and the Director shall report to the Committee on Agriculture, Nutrition, and 

Forestry of the Senate and the Committee on Agriculture of the 

House of Representatives on— 

‘‘(1) the status of development, execution, and administration of agreements or contracts under subsection (b); 

‘‘(2) the specific accomplishments that have resulted; and 

‘‘(3) the role of local communities in the development of 

agreements or contract plans.’’. 

(b) CONFORMING AMENDMENT.—Section 347 of the Department 

of the Interior and Related Agencies Appropriations Act, 1999 (16 

U.S.C. 2104 note; Public Law 105–277) is repealed. 

SEC. 8206. GOOD NEIGHBOR AUTHORITY. 

(a) DEFINITIONS.—In this section: 

(1) AUTHORIZED RESTORATION SERVICES.—The term ‘‘authorized restoration services’’ means similar and complementary forest, rangeland, and watershed restoration services carried out— 

(A) on Federal land and non-Federal land; and 

(B) by either the Secretary or a Governor pursuant to 

a good neighbor agreement. 

(2) FEDERAL LAND.— 

(A) IN GENERAL.—The term ‘‘Federal land’’ means land 

that is— 

(i) National Forest System land; or 

(ii) public land (as defined in section 103 of the 

Federal Land Policy and Management Act of 1976 (43 

U.S.C. 1702)). 

(B) EXCLUSIONS.—The term ‘‘Federal land’’ does not 

include— 

(i) a component of the National Wilderness Preservation System; 

(ii) Federal land on which the removal of vegetation is prohibited or restricted by Act of Congress or 

Presidential proclamation (including the applicable implementation plan); or 

(iii) a wilderness study area. 

(3) FOREST, RANGELAND, AND WATERSHED RESTORATION

SERVICES.— 

(A) IN GENERAL.—The term ‘‘forest, rangeland, and 

watershed restoration services’’ means— 

(i) activities to treat insect- and disease-infected 

trees; 

(ii) activities to reduce hazardous fuels; and 


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(iii) any other activities to restore or improve forest, rangeland, and watershed health, including fish 

and wildlife habitat. 

(B) EXCLUSIONS.—The term ‘‘forest, rangeland, and 

watershed restoration services’’ does not include— 

(i) construction, reconstruction, repair, or restoration of paved or permanent roads or parking areas; or 

(ii) construction, alteration, repair or replacement 

of public buildings or works. 

(4) GOOD NEIGHBOR AGREEMENT.—The term ‘‘good neighbor 

agreement’’ means a cooperative agreement or contract (including a sole source contract) entered into between the Secretary 

and a Governor to carry out authorized restoration services 

under this section. 

(5) GOVERNOR.—The term ‘‘Governor’’ means the Governor 

or any other appropriate executive official of an affected State 

or the Commonwealth of Puerto Rico. 

(6) ROAD.—The term ‘‘road’’ has the meaning given the 

term in section 212.1 of title 36, Code of Federal Regulations 

(as in effect on the date of enactment of this Act). 

(7) SECRETARY.—The term ‘‘Secretary means— 

(A) the Secretary of Agriculture, with respect to National Forest System land; and 

(B) the Secretary of the Interior, with respect to Bureau of Land Management land. 

(b) GOOD NEIGHBOR AGREEMENTS.— (1) GOOD NEIGHBOR AGREEMENTS.— (A) IN GENERAL.—The Secretary may enter into a good 

neighbor agreement with a Governor to carry out authorized restoration services in accordance with this section. 

(B) PUBLIC AVAILABILITY.—The Secretary shall make 

each good neighbor agreement available to the public. 

(2) TIMBER SALES.— 

(A) IN GENERAL.—Subsections (d) and (g) of section 14 

of the National Forest Management Act of 1976 (16 U.S.C. 

472a(d) and (g)) shall not apply to services performed 

under a cooperative agreement or contract entered into 

under subsection (a). 

(B) APPROVAL OF SILVICULTURE PRESCRIPTIONS AND

MARKING GUIDES.—The Secretary shall provide or approve 

all silviculture prescriptions and marking guides to be applied on Federal land in all timber sale projects conducted 

under this section. 

(3) RETENTION OF NEPA RESPONSIBILITIES.—Any decision 

required to be made under the National Environmental Policy 

Act of 1969 (42 U.S.C. 4321 et seq.) with respect to any authorized restoration services to be provided under this section on 

Federal land shall not be delegated to a Governor. 

Subtitle D—Miscellaneous Provisions 

SEC. 8301. REVISION OF STRATEGIC PLAN FOR FOREST INVENTORY 

AND ANALYSIS. 

(a) REVISION REQUIRED.—Not later than 180 days after the 

date of enactment of this Act, the Secretary shall revise the strategic plan for forest inventory and analysis initially prepared purVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00283 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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suant to section 3(e) of the Forest and Rangeland Renewable Resources Research Act of 1978 (16 U.S.C. 1642(e)) to address the requirements imposed by subsection (b). 

(b) ELEMENTS OF REVISED STRATEGIC PLAN.—In revising the 

strategic plan, the Secretary shall describe in detail the organization, procedures, and funding needed to achieve each of the following: 

(1) Complete the transition to a fully annualized forest inventory program and include inventory and analysis of interior 

Alaska. 

(2) Implement an annualized inventory of trees in urban 

settings, including the status and trends of trees and forests, 

and assessments of their ecosystem services, values, health, 

and risk to pests and diseases. 

(3) Report information on renewable biomass supplies and 

carbon stocks at the local, State, regional, and national level, 

including by ownership type. 

(4) Engage State foresters and other users of information 

from the forest inventory and analysis in reevaluating the list 

of core data variables collected on forest inventory and analysis 

plots with an emphasis on demonstrated need. 

(5) Improve the timeliness of the timber product output 

program and accessibility of the annualized information on 

that database. 

(6) Foster greater cooperation among the forest inventory 

and analysis program, research station leaders, and State foresters and other users of information from the forest inventory 

and analysis. 

(7) Promote availability of and access to non-Federal resources to improve information analysis and information management. 

(8) Collaborate with the Natural Resources Conservation 

Service, National Aeronautics and Space Administration, National Oceanic and Atmospheric Administration, and United 

States Geological Survey to integrate remote sensing, spatial 

analysis techniques, and other new technologies in the forest 

inventory and analysis program. 

(9) Understand and report on changes in land cover and 

use. 

(10) Expand existing programs to promote sustainable forest stewardship through increased understanding, in partnership with other Federal agencies, of the over 10,000,000 family 

forest owners, their demographics, and the barriers to forest 

stewardship. 

(11) Implement procedures to improve the statistical precision of estimates at the sub-State level. 

(c) SUBMISSION OF REVISED STRATEGIC PLAN.—The Secretary 

shall submit the revised strategic plan to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. 

SEC. 8302. FOREST SERVICE PARTICIPATION IN ACES PROGRAM. 

The Secretary, acting through the Chief of the Forest Service, 

may use funds derived from conservation-related programs executed on National Forest System land to utilize the Agriculture 

Conservation Experienced Services Program established pursuant 


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to section 1252 of the Food Security Act of 1985 (16 U.S.C. 3851) 

to provide technical services for conservation-related programs and 

authorities carried out by the Secretary on National Forest System 

land. 

SEC. 8303. EXTENSION OF STEWARDSHIP CONTRACTS AUTHORITY REGARDING USE OF DESIGNATION BY PRESCRIPTION TO 

ALL THINNING SALES UNDER NATIONAL FOREST MANAGEMENT ACT OF 1976. 

Section 14 of the National Forest Management Act of 1976 (16 

U.S.C. 472a) is amended by striking subsection (g) and inserting 

the following: 

‘‘(g) DESIGNATION AND SUPERVISION OF HARVESTING.— ‘‘(1) IN GENERAL.—Designation, including marking when 

necessary, designation by description, or designation by prescription, and supervision of harvesting of trees, portions of 

trees, or forest products shall be conducted by persons employed by the Secretary of Agriculture. 

‘‘(2) REQUIREMENT.—Persons employed by the Secretary of 

Agriculture under paragraph (1)— 

‘‘(A) shall have no personal interest in the purchase or 

harvest of the products; and 

‘‘(B) shall not be directly or indirectly in the employment of the purchaser of the products. 

‘‘(3) METHODS FOR DESIGNATION.—Designation by prescription and designation by description shall be considered valid 

methods for designation, and may be supervised by use of postharvest cruise, sample weight scaling, or other methods determined by the Secretary of Agriculture to be appropriate.’’. 

SEC. 8304. REIMBURSEMENT OF FIRE FUNDS. 

(a) DEFINITION OF STATE.—In this section, the term ‘‘State’’ 

means— 

(1) a State; and 

(2) the Commonwealth of Puerto Rico. 

(b) IN GENERAL.—If a State seeks reimbursement for amounts 

expended for resources and services provided to another State for 

the management and suppression of a wildfire, the Secretary, subject to subsections (c) and (d)— 

(1) may accept the reimbursement amounts from the other 

State; and 

(2) shall pay those amounts to the State seeking reimbursement. 

(c) MUTUAL ASSISTANCE AGREEMENT.—As a condition of seeking and providing reimbursement under subsection (b), the State 

seeking reimbursement and the State providing reimbursement 

must each have a mutual assistance agreement with the Forest 

Service or another Federal agency for providing and receiving wildfire management and suppression resources and services. 

(d) TERMS AND CONDITIONS.—The Secretary may prescribe the 

terms and conditions determined to be necessary to carry out subsection (b). 

(e) EFFECT ON PRIOR REIMBURSEMENTS.—Any acceptance of 

funds or reimbursements made by the Secretary before the date of 

enactment of this Act that otherwise would have been authorized 

under this section shall be considered to have been made in accordance with this section. 


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(f) AMENDMENT.—Section 5(b) of the Act of May 27, 1955 (42 

U.S.C. 1856d(b)) is amended in the first sentence by inserting ‘‘or 

Department of Agriculture’’ after ‘‘Department of Defense’’. 

SEC. 8305. FOREST SERVICE LARGE AIRTANKER AND AERIAL ASSET 

FIREFIGHTING RECAPITALIZATION PILOT PROGRAM. 

(a) IN GENERAL.—Subject to the availability of appropriations, 

the Secretary, acting through the Chief of the Forest Service, may 

establish a large airtanker and aerial asset lease program in accordance with this section. 

(b) AIRCRAFT REQUIREMENTS.—In carrying out the program described in subsection (a), the Secretary may enter into a multiyear 

lease contract for up to 5 aircraft that meet the criteria— 

(1) described in the Forest Service document entitled 

‘‘Large Airtanker Modernization Strategy’’ and dated February 

10, 2012, for large airtankers; and 

(2) determined by the Secretary, for other aerial assets. 

(c) LEASE TERMS.—The term of any individual lease agreement 

into which the Secretary enters under this section shall be— 

(1) up to 5 years, inclusive of any options to renew or extend the initial lease term; and 

(2) in accordance with section 3903 of title 41, United 

States Code. 

(d) PROHIBITION.—No lease entered into under this section 

shall provide for the purchase of the aircraft by, or the transfer of 

ownership to, the Forest Service. 

SEC. 8306. LAND CONVEYANCE, JEFFERSON NATIONAL FOREST IN 

WISE COUNTY, VIRGINIA. 

(a) DEFINITIONS.—In this section: 

(1) ASSOCIATION.—The term ‘‘Association’’ means the 

Mullins and Sturgill Cemetery Association of Pound, Virginia. 

(2) MAP.—The term ‘‘map’’ means the map titled ‘‘Mullins 

and Sturgill Cemetery’’ dated March 1, 2013. 

(b) CONVEYANCE REQUIRED.—Upon payment by the Association 

of the consideration under subsection (c) and the costs under subsection (e), the Secretary shall, subject to valid existing rights, convey to the Association all right, title, and interest of the United 

States in and to a parcel of National Forest System land in the Jefferson National Forest in Wise County, Virginia, consisting of approximately 0.70 acres and containing the Mullins and Sturgill 

Cemetery and an easement to provide access to the parcel, as generally depicted on the map. 

(c) CONSIDERATION.— 

(1) FAIR MARKET VALUE.—As consideration for the land 

conveyed under subsection (b), the Association shall pay to the 

Secretary cash in an amount equal to the market value of the 

land, as determined by an appraisal approved by the Secretary 

and conducted in conformity with the Uniform Appraisal 

Standards for Federal Land Acquisitions and section 206 of the 

Federal Land Policy and Management Act of 1976 (43 U.S.C. 

1716). 

(2) DEPOSIT.—The consideration received by the Secretary 

under paragraph (1) shall be deposited into the general fund 

of the Treasury of the United States for the purposes of deficit 

reduction. 


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(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal 

description of the land to be conveyed under subsection (b) shall be 

determined by a survey satisfactory to the Secretary. 

(e) COSTS.—The Association shall pay to the Secretary at closing the reasonable costs of the survey, the appraisal, and any administrative and environmental analyses required by law. 

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 

require such additional terms and conditions in connection with the 

conveyance under subsection (b) as the Secretary considers appropriate to protect the interests of the United States. 

TITLE IX—ENERGY 

SEC. 9001. DEFINITIONS. 

Section 9001 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8101) is amended by— 

(1) redesignating paragraphs (9), (10), (11), (12), (13), and 

(14) as paragraphs (10), (11), (12), (13), (15), and (17); 

(2) inserting after paragraph (8), the following new paragraph: 

‘‘(9) FOREST PRODUCT.— 

‘‘(A) IN GENERAL.—The term ‘forest product’ means a 

product made from materials derived from the practice of 

forestry or the management of growing timber. 

‘‘(B) INCLUSIONS.—The term ‘forest product’ includes— 

‘‘(i) pulp, paper, paperboard, pellets, lumber, and 

other wood products; and 

‘‘(ii) any recycled products derived from forest materials.’’; 

(3) by inserting after paragraph (13) (as redesignated by 

paragraph (1) of this section) the following: 

‘‘(14) RENEWABLE CHEMICAL.—The term ‘renewable chemical’ means a monomer, polymer, plastic, formulated product, 

or chemical substance produced from renewable biomass.’’; and 

(4) inserting after paragraph (15) (as so redesignated), the 

following new paragraph: 

‘‘(16) RENEWABLE ENERGY SYSTEM.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 

term ‘renewable energy system’ means a system that— 

‘‘(i) produces usable energy from a renewable energy source; and 

‘‘(ii) may include distribution components necessary to move energy produced by such system to the 

initial point of sale. 

‘‘(B) LIMITATION.—A system described in subparagraph 

(A) may not include a mechanism for dispensing energy at 

retail.’’. 

SEC. 9002. BIOBASED MARKETS PROGRAM. 

(a) IN GENERAL.—Section 9002 of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8102) is amended— 

(1) in subsection (a)— 

(A) in paragraph (2)(A)(i)— 

(i) in subclause (I), by striking ‘‘and’’ at the end; 

(ii) in subclause (II)(bb), by striking the period at 

the end and inserting ‘‘; and’’; and 


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(iii) by adding at the end the following: 

‘‘(III) establish a targeted biobased-only procurement requirement under which the procuring 

agency shall issue a certain number of biobasedonly contracts when the procuring agency is purchasing products, or purchasing services that include the use of products, that are included in a 

biobased product category designated by the Secretary.’’; and 

(B) in paragraph (3)— 

(i) in subparagraph (B)— 

(I) in clause (v), by inserting ‘‘as determined 

to be necessary by the Secretary based on the 

availability of data,’’ before ‘‘provide information’’; 

(II) by redesignating clauses (v) and (vi) as 

clauses (vii) and (viii), respectively; and 

(III) by inserting after clause (iv) the following: 

‘‘(v) require reporting of quantities and types of 

biobased products purchased by procuring agencies; 

‘‘(vi) promote biobased products, including forest 

products, that apply an innovative approach to growing, harvesting, sourcing, procuring, processing, manufacturing, or application of biobased products regardless of the date of entry into the marketplace;’’; and 

(ii) by adding at the end the following: 

‘‘(F) REQUIRED DESIGNATIONS.—Not later than 1 year 

after the date of enactment of this subparagraph, the Secretary shall begin to designate intermediate ingredients or 

feedstocks and assembled and finished biobased products 

in the guidelines issued under this paragraph.’’; 

(2) in subsection (b)— 

(A) in paragraph (3)— 

(i) by striking ‘‘The Secretary’’ and inserting the 

following: 

‘‘(A) IN GENERAL.—The Secretary’’; and 

(ii) by adding at the end the following: 

‘‘(B) AUDITING AND COMPLIANCE.—The Secretary may 

carry out such auditing and compliance activities as the 

Secretary determines to be necessary to ensure compliance 

with subparagraph (A).’’; and 

(B) by adding at the end the following: 

‘‘(4) ASSEMBLED AND FINISHED PRODUCTS.—Not later than 

1 year after the date of enactment of this paragraph, the Secretary shall begin issuing criteria for determining which assembled and finished products may qualify to receive the label 

under paragraph (1).’’; 

(3) in subsection (g)— 

(A) in paragraph (2)— 

(i) in the matter preceding subparagraph (A) by 

striking ‘‘The report’’ and inserting ‘‘Each report under 

paragraph (1)’’; 

(ii) in subparagraph (A), by striking ‘‘and’’ at the 

end; 


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(iii) in subparagraph (B)(ii), by striking the period 

at the end and inserting ‘‘; and’’; and 

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

‘‘(C) the progress made by other Federal agencies in 

compliance with the biobased procurement requirements, 

including the quantity of purchases made.’’; and 

(B) by adding at the end the following: 

‘‘(3) ECONOMIC IMPACT STUDY AND REPORT.— 

‘‘(A) IN GENERAL.—The Secretary shall conduct a study 

to assess the economic impact of the biobased products industry, including— 

‘‘(i) the quantity of biobased products sold; 

‘‘(ii) the value of the biobased products; 

‘‘(iii) the quantity of jobs created; 

‘‘(iv) the quantity of petroleum displaced; 

‘‘(v) other environmental benefits; and 

‘‘(vi) areas in which the use or manufacturing of 

biobased products could be more effectively used, including identifying any technical and economic obstacles and recommending how those obstacles can be 

overcome. 

‘‘(B) REPORT.—Not later than 1 year after the date of 

enactment of this subparagraph, the Secretary shall submit to Congress a report describing the results of the study 

conducted under subparagraph (A).’’; 

(4) by redesignating subsections (g) and (h) as subsections 

(h) and (i), respectively; 

(5) by inserting after subsection (f) the following new subsection: 

‘‘(g) FOREST PRODUCTS LABORATORY COORDINATION.—In determining whether products are eligible for the ‘USDA Certified 

Biobased Product’ label, the Secretary (acting through the Forest 

Products Laboratory) shall provide appropriate technical and other 

assistance to the program and applicants for forest products.’’; and 

(6) in subsection (i) (as redesignated by paragraph (4)), by 

striking paragraphs (1) and (2) and inserting the following new 

paragraphs: 

‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out this 

section $3,000,000 for each of fiscal years 2014 through 2018. 

‘‘(2) DISCRETIONARY FUNDING.—There is authorized to be 

appropriated to carry out this section $2,000,000 for each of fiscal years 2014 through 2018.’’; and 

(7) by adding at the end the following new subsection: 

‘‘(j) BIOBASED PRODUCT INCLUSION.—In this section, the term 

‘biobased product’ (as defined in section 9001) includes, with respect to forestry materials, forest products that meet biobased content requirements, notwithstanding the market share the product 

holds, the age of the product, or whether the market for the product is new or emerging.’’. 

(b) CONFORMING AMENDMENT.—Section 944(c)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16253(c)(2)(A)) is amended by 

striking ‘‘section 9002(h)(1)’’ and inserting ‘‘section 9002(b)’’. 


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SEC. 9003. BIOREFINERY ASSISTANCE. 

(a) PROGRAM ADJUSTMENTS.—Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended— 

(1) in the section heading, by inserting ‘‘, RENEWABLE

CHEMICAL, AND BIOBASED PRODUCT MANUFACTURING’’ after 

‘‘BIOREFINERY’’; 

(2) in subsection (a), in the matter preceding paragraph 

(1), by inserting ‘‘renewable chemicals, and biobased product 

manufacturing’’ after ‘‘advanced biofuels,’’; 

(3) in subsection (b)— 

(A) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively; and 

(B) by inserting before paragraph (2) (as so redesignated) the following: 

‘‘(1) BIOBASED PRODUCT MANUFACTURING.—The term 

‘biobased product manufacturing’ means development, construction, and retrofitting of technologically new commercialscale processing and manufacturing equipment and required 

facilities that will be used to convert renewable chemicals and 

other biobased outputs of biorefineries into end-user products 

on a commercial scale.’’; 

(4) in subsection (c), by striking ‘‘to eligible entities’’ and 

all that follows through ‘‘guarantees for loans’’ and inserting 

‘‘to eligible entities guarantees for loans’’; 

(5) by striking subsection (d); 

(6) by redesignating subsections (e), (f), (g), and (h) as subsections (d), (e), (f), and (g), respectively; and 

(7) in subsection (d) (as so redesignated)— 

(A) in paragraph (1), by adding at the end the following new subparagraph: 

‘‘(D) PROJECT DIVERSITY.—In approving loan guarantee 

applications, the Secretary shall ensure that, to the extent 

practicable, there is diversity in the types of projects approved for loan guarantees to ensure that as wide a range 

as possible of technologies, products, and approaches are 

assisted.’’. 

(B) by striking ‘‘subsection (c)(2)’’ each place it appears 

and inserting ‘‘subsection (c)’’; and 

(C) in paragraph (2)(C), by striking ‘‘subsection (h)’’ 

and inserting ‘‘subsection (g)’’. 

(b) FUNDING.—Subsection (g) of section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) (as redesignated by paragraph (6)) is amended— 

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

‘‘(1) MANDATORY FUNDING.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), of the 

funds of the Commodity Credit Corporation, the Secretary 

shall use for the cost of loan guarantees under this section, 

to remain available until expended— 

‘‘(i) $100,000,000 for fiscal year 2014; and 

‘‘(ii) $50,000,000 for each of fiscal years 2015 and 

2016. 

‘‘(B) BIOBASED PRODUCT MANUFACTURING.—Of the 

total amount of funds made available for fiscal years 2014 


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and 2015 under subparagraph (A), the Secretary may use 

for the cost of loan guarantees under this section not more 

than 15 percent of such funds to promote biobased product 

manufacturing.’’; and 

(2) in paragraph (2), by striking ‘‘$150,000,000 for each of 

fiscal years 2009 through 2013’’ and inserting ‘‘$75,000,000 for 

each of fiscal years 2014 through 2018’’. 

SEC. 9004. REPOWERING ASSISTANCE PROGRAM. 

Section 9004(d) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 8104(d)) is amended— 

(1) in paragraph (1), by striking ‘‘$35,000,000 for fiscal 

year 2009’’ and inserting ‘‘$12,000,000 for fiscal year 2014’’; 

and 

(2) in paragraph (2), by striking ‘‘$15,000,000 for each of 

fiscal years 2009 through 2013’’ and inserting ‘‘$10,000,000 for 

each of fiscal years 2014 through 2018’’. 

SEC. 9005. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS. 

Section 9005(g) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8105(g)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (C), by striking ‘‘; and’’ and inserting a semicolon; 

(B) in subparagraph (D), by striking the period and inserting ‘‘; and’’; and 

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

‘‘(E) $15,000,000 for each of fiscal years 2014 through 

2018.’’; and 

(2) in paragraph (2), by striking ‘‘$25,000,000 for each of 

fiscal years 2009 through 2013’’ and inserting ‘‘$20,000,000 for 

each of fiscal years 2014 through 2018’’. 

SEC. 9006. BIODIESEL FUEL EDUCATION PROGRAM. 

Section 9006(d) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 8106(d)) is amended— 

(1) in paragraph (1)— 

(A) in the heading, by striking ‘‘FISCAL YEARS 2009

THROUGH 2012’’ and inserting ‘‘MANDATORY FUNDING’’; and 

(B) by striking ‘‘2012’’ and inserting ‘‘2018’’; and 

(2) in paragraph (2)— 

(A) in the heading, by striking ‘‘AUTHORIZATION OF APPROPRIATIONS’’ and inserting ‘‘DISCRETIONARY FUNDING’’; 

and 

(B) by striking ‘‘fiscal year 2013’’ and inserting ‘‘each 

of fiscal years 2014 through 2018’’. 

SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM. 

(a) PROGRAM ADJUSTMENTS.—Section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended— 

(1) in subsection (b)(2)— 

(A) in subparagraph (C), by striking ‘‘and’’ at the end; 

(B) by redesignating subparagraph (D) as subparagraph (E); and 

(C) by inserting after subparagraph (C) the following: 


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‘‘(D) a council (as defined in section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451)); and’’; and 

(2) in subsection (c)— 

(A) by striking paragraph (3); 

(B) by redesignating paragraph (4) as paragraph (3); 

and 

(C) by adding at the end the following: 

‘‘(4) TIERED APPLICATION PROCESS.— 

‘‘(A) IN GENERAL.—In providing loan guarantees and 

grants under this subsection, the Secretary shall use a 3- 

tiered application process that reflects the size of proposed 

projects in accordance with this paragraph. 

‘‘(B) TIER 1.—The Secretary shall establish a separate 

application process for projects for which the cost of the activity funded under this subsection is not more than 

$80,000. 

‘‘(C) TIER 2.—The Secretary shall establish a separate 

application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 

but less than $200,000. 

‘‘(D) TIER 3.—The Secretary shall establish a separate 

application process for projects for which the cost of the activity funded under this subsection is equal to or greater 

than $200,000. 

‘‘(E) APPLICATION PROCESS.—The Secretary shall establish an application, evaluation, and oversight process 

that is the most simplified for tier I projects and more 

comprehensive for each subsequent tier.’’. 

(b) FUNDING.—Section 9007(g) of the Farm Security and Rural 

Investment Act of 2002 (7 U.S.C. 8107(g)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (C), by striking ‘‘; and’’ and inserting a semicolon; 

(B) in subparagraph (D), by striking the period and inserting ‘‘; and’’; and 

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

‘‘(E) $50,000,000 for fiscal year 2014 and each fiscal 

year thereafter.’’; and 

(2) in paragraph (3), by striking ‘‘$25,000,000 for each of 

fiscal years 2009 through 2013’’ and inserting ‘‘$20,000,000 for 

each of fiscal years 2014 through 2018’’. 

SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT. 

Section 9008(h) of the Farm Security and Rural Investment 

Act of 2002 (7 U.S.C. 8108(h)) is amended— 

(1) in paragraph (1)— 

(A) in subparagraph (C), by striking ‘‘; and’’ and inserting a semicolon; 

(B) in subparagraph (D), by striking the period and inserting ‘‘; and’’; and 

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

‘‘(E) $3,000,000 for each of fiscal years 2014 through 

2017.’’; and 


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(2) in paragraph (2), by striking ‘‘$35,000,000 for each of fiscal years 2009 through 2013’’ and inserting ‘‘$20,000,000 for 

each of fiscal years 2014 through 2018’’. 

SEC. 9009. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRODUCERS. 

Section 9010(b) of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8110(b)) is amended— 

(1) in paragraph (1)(A), by striking ‘‘2013’’ and inserting 

‘‘2018’’; and 

(2) in paragraph (2)(A), by striking ‘‘2013’’ and inserting 

‘‘2018’’. 

SEC. 9010. BIOMASS CROP ASSISTANCE PROGRAM. 

Section 9011 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8111) is amended to read as follows: 

‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 

‘‘(a) DEFINITIONS.—In this section: 

‘‘(1) BCAP.—The term ‘BCAP’ means the Biomass Crop 

Assistance Program established under this section. 

‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP project area’ 

means an area that— 

‘‘(A) has specified boundaries that are submitted to the 

Secretary by the project sponsor and subsequently approved by the Secretary; 

‘‘(B) includes producers with contract acreage that will 

supply a portion of the renewable biomass needed by a biomass conversion facility; and 

‘‘(C) is physically located within an economically practicable distance from the biomass conversion facility. 

‘‘(3) CONTRACT ACREAGE.—The term ‘contract acreage’ 

means eligible land that is covered by a BCAP contract entered 

into with the Secretary. 

‘‘(4) ELIGIBLE CROP.— ‘‘(A) IN GENERAL.—The term ‘eligible crop’ means a 

crop of renewable biomass. 

‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ does not include— 

‘‘(i) any crop that is eligible to receive payments 

under title I of the Agricultural Act of 2014 or an 

amendment made by that title; or 

‘‘(ii) any plant that is invasive or noxious or species or varieties of plants that credible risk assessment 

tools or other credible sources determine are potentially invasive, as determined by the Secretary in consultation with other appropriate Federal or State departments and agencies. 

‘‘(5) ELIGIBLE LAND.— 

‘‘(A) IN GENERAL.—The term ‘eligible land’ includes— 

‘‘(i) agricultural and nonindustrial private forest 

lands (as defined in section 5(c) of the Cooperative 

Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))); 

and 

‘‘(ii) land enrolled in the conservation reserve program established under subchapter B of chapter I of 

subtitle D of title XII of the Food Security Act of 1985 


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(16 U.S.C. 3831 et seq.), or the Agricultural Conservation Easement Program established under subtitle H 

of title XII of that Act, under a contract that will expire at the end of the current fiscal year. 

‘‘(B) EXCLUSIONS.—The term ‘eligible land’ does not include— 

‘‘(i) Federal- or State-owned land; 

‘‘(ii) land that is native sod, as of the date of enactment of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8701 et seq.); 

‘‘(iii) land enrolled in 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.), other than land described in 

subparagraph (A)(ii); or 

‘‘(iv) land enrolled in the Agricultural Conservation Easement Program established under subtitle H 

of title XII of that Act, other than land described in 

subparagraph (A)(ii). 

‘‘(6) ELIGIBLE MATERIAL.— 

‘‘(A) IN GENERAL.—The term ‘eligible material’ means 

renewable biomass harvested directly from the land, including crop residue from any crop that is eligible to receive payments under title I of the Agricultural Act of 

2014 or an amendment made by that title. 

‘‘(B) INCLUSIONS.—The term ‘eligible material’ shall 

only include— 

‘‘(i) eligible material that is collected or harvested 

by the eligible material owner— 

‘‘(I) directly from— 

‘‘(aa) National Forest System; 

‘‘(bb) Bureau of Land Management land; 

‘‘(cc) non-Federal land; or 

‘‘(dd) land owned by an individual Indian 

or Indian tribe that is held in trust by the 

United States for the benefit of the individual 

Indian or Indian tribe or subject to a restriction against alienation imposed by the United 

States; 

‘‘(II) in a manner that is consistent with— 

‘‘(aa) a conservation plan; 

‘‘(bb) a forest stewardship plan; or 

‘‘(cc) a plan that the Secretary determines 

is equivalent to a plan described in item (aa) 

or (bb) and consistent with Executive Order 

13112 (42 U.S.C. 4321 note; relating to 

invasive species); 

‘‘(ii) if woody eligible material, woody eligible material that is produced on land other than contract 

acreage that— 

‘‘(I) is a byproduct of a preventative treatment 

that is removed to reduce hazardous fuel or to reduce or contain disease or insect infestation; and 

‘‘(II) if harvested from Federal land, is harvested in accordance with section 102(e) of the 


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Healthy Forests Restoration Act of 2003 (16 

U.S.C. 6512(e)); and 

‘‘(iii) eligible material that is delivered to a qualified biomass conversion facility to be used for heat, 

power, biobased products, research, or advanced 

biofuels. 

‘‘(C) EXCLUSIONS.—The term ‘eligible material’ does 

not include— 

‘‘(i) material that is whole grain from any crop 

that is eligible to receive payments under title I of the 

Agricultural Act of 2014 or an amendment made by 

that title, including— 

‘‘(I) barley, corn, grain sorghum, oats, rice, or 

wheat; 

‘‘(II) honey; 

‘‘(III) mohair; 

‘‘(IV) oilseeds, including canola, crambe, 

flaxseed, mustard seed, rapeseed, safflower seed, 

soybeans, sesame seed, and sunflower seed; 

‘‘(V) peanuts; 

‘‘(VI) pulse; 

‘‘(VII) chickpeas, lentils, and dry peas; 

‘‘(VIII) dairy products; 

‘‘(IX) sugar; and 

‘‘(X) wool and cotton boll fiber; 

‘‘(ii) animal waste and byproducts, including fat, 

oil, grease, and manure; 

‘‘(iii) food waste and yard waste; 

‘‘(iv) algae; 

‘‘(v) woody eligible material that— 

‘‘(I) is removed outside contract acreage; and 

‘‘(II) is not a byproduct of a preventative 

treatment to reduce hazardous fuel or to reduce or 

contain disease or insect infestation; 

‘‘(vi) any woody eligible material collected or harvested outside contract acreage that would otherwise 

be used for existing market products; or 

‘‘(vii) bagasse. 

‘‘(7) PRODUCER.—The term ‘producer’ means an owner or 

operator of contract acreage that is physically located within a 

BCAP project area. 

‘‘(8) PROJECT SPONSOR.—The term ‘project sponsor’ 

means— 

‘‘(A) a group of producers; or 

‘‘(B) a biomass conversion facility. 

‘‘(9) SOCIALLY DISADVANTAGED FARMER OR RANCHER.—The 

term ‘socially disadvantaged farmer or rancher’ has the meaning given the term in section 2501(e) of the Food, Agriculture, 

Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)). 

‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary shall establish and administer a Biomass Crop Assistance Program to— 

‘‘(1) support the establishment and production of eligible 

crops for conversion to bioenergy in selected BCAP project 

areas; and 


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‘‘(2) assist agricultural and forest land owners and operators with the collection, harvest, storage, and transportation of 

eligible material for use in a biomass conversion facility. 

‘‘(c) BCAP PROJECT AREA.— ‘‘(1) IN GENERAL.—The Secretary shall provide financial assistance to a producer of an eligible crop in a BCAP project 

area. 

‘‘(2) SELECTION OF PROJECT AREAS.— ‘‘(A) IN GENERAL.—To be considered for selection as a 

BCAP project area, a project sponsor shall submit to the 

Secretary a proposal that, at a minimum, includes— 

‘‘(i) a description of the eligible land and eligible 

crops of each producer that will participate in the proposed BCAP project area; 

‘‘(ii) a letter of commitment from a biomass conversion facility that the facility will use the eligible 

crops intended to be produced in the proposed BCAP 

project area; 

‘‘(iii) evidence that the biomass conversion facility 

has sufficient equity available, as determined by the 

Secretary, if the biomass conversion facility is not 

operational at the time the proposal is submitted to 

the Secretary; and 

‘‘(iv) any other information about the biomass conversion facility or proposed biomass conversion facility 

that the Secretary determines necessary for the Secretary to be reasonably assured that the plant will be 

in operation by the date on which the eligible crops 

are ready for harvest. 

‘‘(B) BCAP PROJECT AREA SELECTION CRITERIA.—In selecting BCAP project areas, the Secretary shall consider— 

‘‘(i) the volume of the eligible crops proposed to be 

produced in the proposed BCAP project area and the 

probability that those crops will be used for the purposes of the BCAP; 

‘‘(ii) the volume of renewable biomass projected to 

be available from sources other than the eligible crops 

grown on contract acres; 

‘‘(iii) the anticipated economic impact in the proposed BCAP project area; 

‘‘(iv) the opportunity for producers and local investors to participate in the ownership of the biomass 

conversion facility in the proposed BCAP project area; 

‘‘(v) the participation rate by— 

‘‘(I) beginning farmers or ranchers (as defined 

in accordance with section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 

1991(a))); or 

‘‘(II) socially disadvantaged farmers or ranchers; 

‘‘(vi) the impact on soil, water, and related resources; 

‘‘(vii) the variety in biomass production approaches within a project area, including (as appropriate)— 


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‘‘(I) agronomic conditions; 

‘‘(II) harvest and postharvest practices; and 

‘‘(III) monoculture and polyculture crop mixes; 

‘‘(viii) the range of eligible crops among project 

areas; 

‘‘(ix) existing project areas that have received 

funding under this section and the continuation of 

funding of such project areas to advance the maturity 

of such project areas; and 

‘‘(x) any additional information that the Secretary 

determines to be necessary. 

‘‘(3) CONTRACT.— 

‘‘(A) IN GENERAL.—On approval of a BCAP project area 

by the Secretary, each producer in the BCAP project area 

shall enter into a contract directly with the Secretary. 

‘‘(B) MINIMUM TERMS.—At a minimum, a contract 

under this subsection shall include terms that cover— 

‘‘(i) an agreement 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 eligible crops and the development of biomass conversion technology; 

‘‘(ii) compliance with 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 

the wetland conservation requirements of subtitle C of 

title XII of that Act (16 U.S.C. 3821 et seq.); 

‘‘(iii) the implementation of (as determined by the 

Secretary)— 

‘‘(I) a conservation plan; 

‘‘(II) a forest stewardship plan; or 

‘‘(III) a plan that is equivalent to a conservation or forest stewardship plan; and 

‘‘(iv) any additional requirements that Secretary 

determines to be necessary. 

‘‘(C) DURATION.—A contract under this subsection 

shall have a term of not more than— 

‘‘(i) 5 years for annual and perennial crops; or 

‘‘(ii) 15 years for woody biomass. 

‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In carrying out 

this subsection, the Secretary shall provide for the preservation of cropland base and yield history applicable to the land 

enrolled in a BCAP contract. 

‘‘(5) PAYMENTS.— 

‘‘(A) IN GENERAL.—The Secretary shall make establishment and annual payments directly to producers to support the establishment and production of eligible crops on 

contract acreage. 

‘‘(B) AMOUNT OF ESTABLISHMENT PAYMENTS.— 

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

amount of an establishment payment under this subsection shall be not more than 50 percent of the costs 

of establishing an eligible perennial crop covered by 


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the contract but not to exceed $500 per acre, including— 

‘‘(I) the cost of seeds and stock for perennials; 

‘‘(II) the cost of planting the perennial crop, as 

determined by the Secretary; and 

‘‘(III) in the case of nonindustrial private 

forestland, the costs of site preparation and tree 

planting. 

‘‘(ii) SOCIALLY DISADVANTAGED FARMERS OR RANCHERS.—In the case of socially disadvantaged farmers or 

ranchers, the costs of establishment may not exceed 

$750 per acre. 

‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 

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

amount of an annual payment under this subsection 

shall be determined by the Secretary. 

‘‘(ii) REDUCTION.—The Secretary shall reduce an 

annual payment by an amount determined to be appropriate by the Secretary, if— 

‘‘(I) an eligible crop is used for purposes other 

than the production of energy at the biomass conversion facility; 

‘‘(II) an eligible crop is delivered to the biomass conversion facility; 

‘‘(III) the producer receives a payment under 

subsection (d); 

‘‘(IV) the producer violates a term of the contract; or 

‘‘(V) the Secretary determines a reduction is 

necessary to carry out this section. 

‘‘(D) EXCLUSION.—The Secretary shall not make any 

BCAP payments on land for which payments are received 

under 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.) or the 

agricultural conservation easement program established 

under subtitle H of title XII of that Act. 

‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, STORAGE, AND

TRANSPORTATION.— 

‘‘(1) IN GENERAL.—The Secretary shall make a payment for 

the delivery of eligible material to a biomass conversion facility 

to— 

‘‘(A) a producer of an eligible crop that is produced on 

BCAP contract acreage; or 

‘‘(B) a person with the right to collect or harvest eligible material, regardless of whether the eligible material is 

produced on contract acreage. 

‘‘(2) PAYMENTS.— 

‘‘(A) COSTS COVERED.—A payment under this subsection shall be in an amount described in subparagraph 

(B) for— 

‘‘(i) collection; 

‘‘(ii) harvest; 

‘‘(iii) storage; and 


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‘‘(iv) transportation to a biomass conversion facility. 

‘‘(B) AMOUNT.—Subject to paragraph (3), the Secretary 

may provide matching payments at a rate of up to $1 for 

each $1 per ton provided by the biomass conversion facility, in an amount not to exceed $20 per dry ton for a period of 2 years. 

‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP CONTRACT ACREAGE.—As a condition of the receipt of an annual payment 

under subsection (c), a producer receiving a payment under 

this subsection for collection, harvest, storage, or transportation of an eligible crop produced on BCAP acreage shall 

agree to a reduction in the annual payment. 

‘‘(e) REPORT.—Not later than 4 years after the date of enactment of the Agricultural Act of 2014, the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the dissemination by the Secretary of the best practice data and information gathered from participants receiving assistance under this section. 

‘‘(f) FUNDING.— 

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

Corporation, the Secretary shall use to carry out this section 

$25,000,000 for each of fiscal years 2014 through 2018. 

‘‘(2) COLLECTION, HARVEST, STORAGE, AND TRANSPORTATION

PAYMENTS.—Of the amount made available under paragraph 

(1) for each fiscal year, the Secretary shall use not less than 

10 percent, nor more than 50 percent, of the amount to make 

collection, harvest, transportation, and storage payments under 

subsection (d)(2). 

‘‘(3) TECHNICAL ASSISTANCE.— 

‘‘(A) IN GENERAL.—Effective for fiscal year 2014 and 

each subsequent fiscal year, funds made available under 

this subsection shall be available for the provision of technical assistance with respect to activities authorized under 

this section. 

‘‘(B) RELATIONSHIP TO OTHER LAWS.—To the extent 

funds obligated or expended under subparagraph (A) include funds of the Commodity Credit Corporation, such 

funds shall not be considered an allotment or fund transfer 

from the Commodity Credit Corporation for purposes of 

the limit on expenditures for technical assistance imposed 

by section 11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).’’. 

SEC. 9011. REPEAL OF FOREST BIOMASS FOR ENERGY. 

Section 9012 of the Farm Security and Rural Investment Act 

of 2002 (7 U.S.C. 8112) is repealed. 

SEC. 9012. COMMUNITY WOOD ENERGY PROGRAM. 

(a) DEFINITION OF BIOMASS CONSUMER COOPERATIVE.—Section 

9013(a) of the Farm Security and Rural Investment Act of 2002 (7 

U.S.C. 8113(a)) is amended— 

(1) by redesignating paragraphs (1) and (2) as paragraphs 

(2) and (3), respectively; and 


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(2) by inserting before paragraph (2) (as so redesignated) 

the following: 

‘‘(1) BIOMASS CONSUMER COOPERATIVE.—The term ‘biomass 

consumer cooperative’ means a consumer membership organization the purpose of which is to provide members with services or discounts relating to the purchase of biomass heating 

products or biomass heating systems.’’. 

(b) GRANT PROGRAM.—Section 9013(b)(1) of the Farm Security 

and Rural Investment Act of 2002 (7 U.S.C. 8113(b)(1)) is amended— 

(1) in subparagraph (A), by striking ‘‘and’’ after the semicolon at the end; 

(2) in subparagraph (B), by striking the period at the end 

and inserting ‘‘; and’’; and 

(3) by adding at the end the following: ‘‘(C) grants of up to $50,000 to biomass consumer cooperatives for the purpose of establishing or expanding biomass consumer cooperatives that will provide consumers 

with services or discounts relating to— 

‘‘(i) the purchase of biomass heating systems; 

‘‘(ii) biomass heating products, including wood 

chips, wood pellets, and advanced biofuels; or 

‘‘(iii) the delivery and storage of biomass of heating products.’’. 

(c) MATCHING FUNDS.—Section 9013(d) of the Farm Security 

and Rural Investment Act of 2002 (7 U.S.C. 8113(d)) is amended— 

(1) by striking ‘‘A State or local government that receives 

a grant under subsection (b)’’ and inserting the following: 

‘‘(1) STATE AND LOCAL GOVERNMENTS.—A State or local 

government that receives a grant under subparagraph (A) or 

(B) of subsection (b)(1)’’; and 

(2) by adding at the end the following: 

‘‘(2) BIOMASS CONSUMER COOPERATIVES.—A biomass consumer cooperative that receives a grant under subsection 

(b)(1)(C) shall contribute an amount of non-Federal funds 

(which may include State, local, and nonprofit funds and membership dues) toward the establishment or expansion of a biomass consumer cooperative that is at least equal to 50 percent 

of the amount of Federal funds received for that purpose.’’. 

(d) AUTHORIZATION OF APPROPRIATIONS.—Section 9013(e) of the 

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) 

is amended by striking ‘‘2013’’ and inserting ‘‘2018’’. 

SEC. 9013. REPEAL OF BIOFUELS INFRASTRUCTURE STUDY. 

Section 9002 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 2095) is repealed. 

SEC. 9014. REPEAL OF RENEWABLE FERTILIZER STUDY. 

Section 9003 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 2096) is repealed. 

SEC. 9015. ENERGY EFFICIENCY REPORT FOR USDA FACILITIES. 

(a) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary of Agriculture shall submit to 

the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on energy use and energy efficiency projects at the 


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Washington, District of Columbia, headquarters and the major regional facilities of the Department of Agriculture. 

(b) CONTENTS.—The report required by subsection (a) shall include the following: 

(1) An analysis of energy use by the Department of Agriculture headquarters and major regional facilities. 

(2) A list of energy audits that have been conducted at 

such facilities. 

(3) A list of energy efficiency projects that have been conducted at such facilities. 

(4) A list of energy savings projects that could be achieved 

with enacting a consistent, timely, and proper mechanical insulation maintenance program and upgrading mechanical insulation at such facilities. 

TITLE X—HORTICULTURE 

SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION. 

Section 10107(b) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 1622b(b)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE MOVEMENT OF 

SPECIALTY CROPS. 

Effective October 1, 2013, section 10403 of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 1622c) is repealed. 

SEC. 10003. FARMERS’ MARKET AND LOCAL FOOD PROMOTION PROGRAM. 

Section 6 of the Farmer-to-Consumer Direct Marketing Act of 

1976 (7 U.S.C. 3005) is amended— 

(1) in the section heading, by inserting ‘‘AND LOCAL FOOD’’ 

after ‘‘FARMERS’ MARKET’’; 

(2) in subsection (a)— 

(A) by inserting ‘‘and Local Food’’ after ‘‘Farmers’ Market’’; 

(B) by striking ‘‘farmers’ markets and to promote’’; and 

(C) by striking the period and inserting ‘‘and assist in 

the development of local food business enterprises.’’; 

(3) by striking subsection (b) and inserting the following: 

‘‘(b) PROGRAM PURPOSES.—The purposes of the Program are to 

increase domestic consumption of and access to locally and regionally produced agricultural products, and to develop new market opportunities for farm and ranch operations serving local markets, by 

developing, improving, expanding, and providing outreach, training, and technical assistance to, or assisting in the development, 

improvement and expansion of— 

‘‘(1) domestic farmers’ markets, roadside stands, community-supported agriculture programs, agritourism activities, 

and other direct producer-to-consumer market opportunities; 

and 

‘‘(2) local and regional food business enterprises (including 

those that are not direct producer-to-consumer markets) that 

process, distribute, aggregate, or store locally or regionally produced food products.’’; 

(4) in subsection (c)(1)— 


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(A) by inserting ‘‘or other agricultural business entity’’ 

after ‘‘cooperative’’; and 

(B) by inserting ‘‘, including a community supported 

agriculture network or association’’ after ‘‘association’’; 

(5) by redesignating subsection (e) as subsection (g); 

(6) by inserting after subsection (d) the following: 

‘‘(e) PRIORITIES.—In providing grants under the Program, priority shall be given to applications that include projects that benefit underserved communities, including communities that— 

‘‘(1) are located in areas of concentrated poverty with limited access to fresh locally or regionally grown foods; and 

‘‘(2) have not received benefits from the Program in the recent past. 

‘‘(f) FUNDS REQUIREMENTS FOR ELIGIBLE ENTITIES.— 

‘‘(1) MATCHING FUNDS.—An entity receiving a grant under 

this section for a project to carry out a purpose described in 

subsection (b)(2) shall provide matching funds in the form of 

cash or an in-kind contribution in an amount equal to 25 percent of the total cost of the project. 

‘‘(2) LIMITATION ON USE OF FUNDS.—An eligible entity may 

not use a grant or other assistance provided under this section 

for the purchase, construction, or rehabilitation of a building or 

structure.’’; and 

(7) in subsection (g) (as redesignated by paragraph (5))— 

(A) in paragraph (1)— 

(i) in the paragraph heading, by striking ‘‘FISCAL

YEARS 2008 THROUGH 2012’’ and inserting ‘‘MANDATORY

FUNDING’’; 

(ii) in subparagraph (B), by striking ‘‘and’’ at the 

end; 

(iii) in subparagraph (C), by striking the period at 

the end and inserting ‘‘; and’’; and 

(iv) by adding at the end the following: 

‘‘(D) $30,000,000 for each of fiscal years 2014 through 

2018.’’; 

(B) by striking paragraphs (3) and (5); 

(C) by redesignating paragraph (4) as paragraph (6); 

and 

(D) by inserting after paragraph (2) the following: 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000 for 

each of fiscal years 2014 through 2018. 

‘‘(4) USE OF FUNDS.—Of the funds made available to carry 

out this section for a fiscal year— 

‘‘(A) 50 percent of the funds shall be used for the purposes described in subsection (b)(1); and 

‘‘(B) 50 percent of the funds shall be used for the purposes described in subsection (b)(2). 

‘‘(5) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not more 

than 4 percent of the total amount made available to carry out 

this section for a fiscal year may be used for administrative expenses.’’. 


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SEC. 10004. ORGANIC AGRICULTURE. 

(a) ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.— 

Section 7407 of the Farm Security and Rural Investment Act of 

2002 (7 U.S.C. 5925c) is amended— 

(1) in subsection (c)— 

(A) in the matter preceding paragraph (1), by inserting 

‘‘and annually thereafter’’ after ‘‘this subsection’’; 

(B) in paragraph (1), by striking ‘‘and’’ at the end; 

(C) by redesignating paragraph (2) as paragraph (3); 

and 

(D) by inserting after paragraph (1) the following: 

‘‘(2) describes how data collection agencies (such as the Agricultural Marketing Service and the National Agricultural 

Statistics Service) are coordinating with data user agencies 

(such as the Risk Management Agency) to ensure that data collected under this section can be used by data user agencies, including by the Risk Management Agency to offer price elections for all organic crops; and’’; and 

(2) in subsection (d)— 

(A) by striking paragraph (3); 

(B) by redesignating paragraph (2) as paragraph (3); 

(C) by inserting after paragraph (1) the following: 

‘‘(2) MANDATORY FUNDING.—In addition to any funds made 

available under paragraph (1), of the funds of the Commodity 

Credit Corporation, the Secretary shall use to carry out this 

section $5,000,000, to remain available until expended.’’; and 

(D) in paragraph (3) (as redesignated by subparagraph 

(B))— 

(i) in the paragraph heading, by striking ‘‘FOR FISCAL YEARS 2008 THROUGH 2012’’; 

(ii) by striking ‘‘paragraph (1)’’ and inserting 

‘‘paragraphs (1) and (2)’’; and 

(iii) by striking ‘‘2012’’ and inserting ‘‘2018’’. 

(b) MODERNIZATION AND TECHNOLOGY UPGRADE FOR NATIONAL

ORGANIC PROGRAM.—Section 2123 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6522) is amended— 

(1) in subsection (b)— 

(A) in paragraph (5), by striking ‘‘and’’ at the end; 

(B) by redesignating paragraph (6) as paragraph (7); 

and 

(C) by inserting after paragraph (5) the following: 

‘‘(6) $15,000,000 for each of fiscal years 2014 through 2018; 

and’’; and 

(2) by adding at the end the following: 

‘‘(c) MODERNIZATION AND TECHNOLOGY UPGRADE FOR NATIONAL

ORGANIC PROGRAM.— 

‘‘(1) IN GENERAL.—The Secretary shall modernize database 

and technology systems of the national organic program. 

‘‘(2) FUNDING.—Of the funds of the Commodity Credit Corporation and in addition to any other funds made available for 

that purpose, the Secretary shall make available to carry out 

this subsection $5,000,000 for fiscal year 2014, to remain available until expended.’’. 

(c) NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.— 

Section 10606(d) of the Farm Security and Rural Investment Act 


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of 2002 (7 U.S.C. 6523(d)) is amended by striking paragraph (1) 

and inserting the following: 

‘‘(1) MANDATORY FUNDING FOR FISCAL YEARS 2014 THROUGH

2018.—Of the funds of the Commodity Credit Corporation, the 

Secretary shall make available to carry out this section 

$11,500,000 for each of fiscal years 2014 through 2018, to remain available until expended.’’. 

(d) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM PROMOTION ORDER ASSESSMENTS.—Section 501 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7401) is 

amended by striking subsection (e) and inserting the following; 

‘‘(e) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM PROMOTION ORDER ASSESSMENTS.— 

‘‘(1) IN GENERAL.—Notwithstanding any provision of a commodity promotion law, a person that produces, handles, markets, or imports organic products may be exempt from the payment of an assessment under a commodity promotion law with 

respect to any agricultural commodity that is certified as ‘organic’ or ‘100 percent organic’ (as defined in part 205 of title 

7, Code of Federal Regulations (or a successor regulation)). 

‘‘(2) SPLIT OPERATIONS.—The exemption described in paragraph (1) shall apply to the certified ‘organic’ or ‘100 percent 

organic’ (as defined in part 205 of title 7 of the Code of Federal 

Regulations (or a successor regulation)) products of a producer, 

handler, or marketer regardless of whether the agricultural 

commodity subject to the exemption is produced, handled, or 

marketed by a person that also produces, handles, or markets 

conventional or nonorganic agricultural products, including 

conventional or nonorganic agricultural products of the same 

agricultural commodity as that for which the exemption is 

claimed. 

‘‘(3) APPROVAL.—The Secretary shall approve the exemption of a person under this subsection if the person maintains 

a valid organic certificate issued under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 et seq.). 

‘‘(4) TERMINATION OF EFFECTIVENESS.—This subsection 

shall be effective until the date on which the Secretary issues 

an organic commodity promotion order in accordance with subsection (f). 

‘‘(5) REGULATIONS.—The Secretary shall promulgate regulations concerning eligibility and compliance for an exemption 

under paragraph (1).’’. 

(e) ORGANIC COMMODITY PROMOTION ORDER.—Section 501 of 

the Federal Agriculture Improvement and Reform Act of 1996 (7 

U.S.C. 7401) is amended by adding at the end the following: 

‘‘(f) ORGANIC COMMODITY PROMOTION ORDER.— 

‘‘(1) DEFINITIONS.—In this subsection: 

‘‘(A) CERTIFIED ORGANIC FARM.—The term ‘certified organic farm’ has the meaning given the term in section 

2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 

6502). 

‘‘(B) COVERED PERSON.—The term ‘covered person’ 

means a producer, handler, marketer, or importer of an organic agricultural commodity. 


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‘‘(C) DUAL-COVERED AGRICULTURAL COMMODITY.—The 

term ‘dual-covered agricultural commodity’ means an agricultural commodity that— 

‘‘(i) is produced on a certified organic farm; and 

‘‘(ii) is covered under both— 

‘‘(I) an organic commodity promotion order 

issued pursuant to paragraph (2); and 

‘‘(II) any other agricultural commodity promotion order issued under section 514. 

‘‘(2) AUTHORIZATION.—The Secretary may issue an organic 

commodity promotion order under section 514 that includes 

any agricultural commodity that— 

‘‘(A) is produced or handled (as defined in section 2103 

of the Organic Foods Production Act of 1990 (7 U.S.C. 

6502)) and that is certified to be sold or labeled as ‘organic’ 

or ‘100 percent organic’ (as defined in part 205 of title 7, 

Code of Federal Regulations (or a successor regulation)); or 

‘‘(B) is imported with a valid organic certificate (as defined in that part). 

‘‘(3) ELECTION.—If the Secretary issues an organic commodity promotion order described in paragraph (2), a covered 

person may elect, for applicable dual-covered agricultural commodities and in the sole discretion of the covered person, 

whether to be assessed under the organic commodity promotion order or another applicable agricultural commodity promotion order. 

‘‘(4) REGULATIONS.—The Secretary shall promulgate regulations concerning eligibility and compliance for an exemption 

under paragraph (1).’’. 

(f) DEFINITION OF AGRICULTURAL COMMODITY.—Section 513(1) 

of the Commodity Promotion, Research, and Information Act of 

1996 (7 U.S.C. 7412(1)) is amended— 

(1) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and 

(2) by inserting after subparagraph (D) the following: 

‘‘(E) products, as a class, that are— 

‘‘(i) produced on a certified organic farm (as defined in section 2103 of the Organic Foods Production 

Act of 1990 (7 U.S.C. 6502)); and 

‘‘(ii) certified to be sold or labeled as ‘organic’ or 

‘100 percent organic’ (as defined in part 205 of title 7, 

Code of Federal Regulations (or a successor regulation));’’. 

SEC. 10005. INVESTIGATIONS AND ENFORCEMENT OF THE ORGANIC 

FOODS PRODUCTION ACT OF 1990. 

(a) RECORDKEEPING BY CERTIFIED OPERATIONS.—Section 2112 

of the Organic Foods Production Act of 1990 (7 U.S.C. 6511) is 

amended by striking subsection (d). 

(b) RECORDKEEPING BY CERTIFYING AGENTS.— 

(1) IN GENERAL.—Section 2116 of the Organic Foods Production Act of 1990 (7 U.S.C. 6515) is amended— 

(A) by striking subsection (c); 

(B) by redesignating subsections (d) through (j) as subsections (c) through (i), respectively; and 


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(C) in subsection (d) (as so redesignated), in the matter preceding paragraph (1), by striking ‘‘subsection (d)’’ 

and inserting ‘‘subsection (c)’’. 

(2) CONFORMING AMENDMENT.—Section 2107(a)(8) of the 

Organic Foods Production Act of 1990 (7 U.S.C. 6506(a)(8)) is 

amended by striking ‘‘section 2116(h)’’ and inserting ‘‘section 

2116(g)’’. 

(c) RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT.— Section 2120 of the Organic Foods Production Act of 1990 (7 U.S.C. 

6519) is amended to read as follows: 

‘‘SEC. 2120. RECORDKEEPING, INVESTIGATIONS, AND ENFORCEMENT. 

‘‘(a) RECORDKEEPING.— ‘‘(1) IN GENERAL.—Except as otherwise provided in this 

title, each person who sells, labels, or represents any agricultural product as having been produced or handled using organic methods shall make available to the Secretary or the applicable governing State official, on request by the Secretary or 

official, all records associated with the agricultural product. 

‘‘(2) CERTIFIED OPERATIONS.—Each producer that operates 

a certified organic farm or certified organic handling operation 

under this title shall maintain, for a period of not less than 5 

years, all records concerning the production or handling of any 

agricultural product sold or labeled as organically produced 

under this title, including— 

‘‘(A) a detailed history of substances applied to fields 

or agricultural products; 

‘‘(B) the name and address of each person who applied 

such a substance; and 

‘‘(C) the date, rate, and method of application of each 

such substance. 

‘‘(3) CERTIFYING AGENTS.— ‘‘(A) MAINTENANCE OF RECORDS.—A certifying agent 

shall maintain all records concerning the activities of the 

certifying agent under this title for a period of not less 

than 10 years. 

‘‘(B) ACCESS FOR SECRETARY.—A certifying agent shall 

provide to the Secretary and the applicable governing 

State official (or a representative) access to all records concerning the activities of the certifying agent under this 

title. 

‘‘(C) TRANSFERENCE OF RECORDS.—If a private person 

that was certified under this title is dissolved or loses accreditation, all records and copies of records concerning the 

activities of the person under this title shall be— 

‘‘(i) transferred to the Secretary; and 

‘‘(ii) made available to the applicable governing 

State official. 

‘‘(4) UNLAWFUL ACT.—It shall be unlawful and a violation 

of this title for any person covered by this title to fail or refuse 

to provide accurate information (including a delay in the timely 

delivery of such information) required by the Secretary under 

this title. 

‘‘(5) CONFIDENTIALITY.—Except as provided in section 

2107(a)(9), or as otherwise directed by the Secretary or the Attorney General for enforcement purposes, no officer, employee, 


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or agent of the United States shall make available to the public any information, statistic, or document obtained from, or 

made available by, any person under this title, other than in 

a manner that ensures that confidentiality is preserved regarding— 

‘‘(A) the identity of all relevant persons (including parties to a contract); and 

‘‘(B) proprietary business information. 

‘‘(b) INVESTIGATIONS.— 

‘‘(1) IN GENERAL.—The Secretary may take such investigative actions as the Secretary considers to be necessary— 

‘‘(A) to verify the accuracy of any information reported 

or made available under this title; and 

‘‘(B) to determine whether a person covered by this 

title has committed a violation of any provision of this 

title, including an order or regulation promulgated by the 

Secretary pursuant to this title. 

‘‘(2) SPECIFIC INVESTIGATIVE POWERS.—In carrying out this 

title, the Secretary may— 

‘‘(A) administer oaths and affirmations; 

‘‘(B) subpoena witnesses; 

‘‘(C) compel attendance of witnesses; 

‘‘(D) take evidence; and 

‘‘(E) require the production of any records required to 

be maintained under this title that are relevant to an investigation. 

‘‘(c) VIOLATIONS OF TITLE.— 

‘‘(1) MISUSE OF LABEL.—Any person who knowingly sells or 

labels a product as organic, except in accordance with this title, 

shall be subject to a civil penalty of not more than $10,000. 

‘‘(2) FALSE STATEMENT.—Any person who makes a false 

statement under this title to the Secretary, a governing State 

official, or a certifying agent shall be punished in accordance 

with section 1001 of title 18, United States Code. 

‘‘(3) INELIGIBILITY.— 

‘‘(A) IN GENERAL.—Except as provided in subparagraph (C), any person that carries out an activity described 

in subparagraph (B), after notice and an opportunity to be 

heard, shall not be eligible, for the 5-year period beginning 

on the date of the occurrence, to receive a certification 

under this title with respect to any farm or handling operation in which the person has an interest. 

‘‘(B) DESCRIPTION OF ACTIVITIES.—An activity referred 

to in subparagraph (A) is— 

‘‘(i) making a false statement; 

‘‘(ii) attempting to have a label indicating that an 

agricultural product is organically produced affixed to 

an agricultural product that a person knows, or should 

have reason to know, to have been produced or handled in a manner that is not in accordance with this 

title; or 

‘‘(iii) otherwise violating the purposes of the applicable organic certification program, as determined by 

the Secretary. 


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‘‘(C) WAIVER.—Notwithstanding subparagraph (A), the 

Secretary may modify or waive a period of ineligibility 

under this paragraph if the Secretary determines that the 

modification or waiver is in the best interests of the applicable organic certification program established under this 

title. 

‘‘(4) REPORTING OF VIOLATIONS.—A certifying agent shall 

immediately report any violation of this title to the Secretary 

or the applicable governing State official. 

‘‘(5) VIOLATIONS BY CERTIFYING AGENT.—A certifying agent 

that is a private person that violates the provisions of this title 

or falsely or negligently certifies any farming or handling operation that does not meet the terms and conditions of the applicable organic certification program as an organic operation, as 

determined by the Secretary or the applicable governing State 

official shall, after notice and an opportunity to be heard— 

‘‘(A) lose accreditation as a certifying agent under this 

title; and 

‘‘(B) be ineligible to be accredited as a certifying agent 

under this title for a period of not less than 3 years, beginning on the date of the determination. 

‘‘(6) EFFECT ON OTHER LAW.—Nothing in this title alters— 

‘‘(A) the authority of the Secretary concerning meat, 

poultry and egg products under— 

‘‘(i) the Federal Meat Inspection Act (21 U.S.C. 

601 et seq.); 

‘‘(ii) the Poultry Products Inspection Act (21 

U.S.C. 451 et seq.); or 

‘‘(iii) the Egg Products Inspection Act (21 U.S.C. 

1031 et seq.); 

‘‘(B) the authority of the Secretary of Health and 

Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or 

‘‘(C) the authority of the Administrator of the Environmental Protection Agency under the Federal Insecticide, 

Fungicide, and Rodenticide Act (7 U.S.C. 136 et seq.).’’. 

SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES. 

Section 10105(c) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 7655a(c)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 10007. CONSOLIDATION OF PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION PROGRAMS. 

(a) RELOCATION OF LEGISLATIVE LANGUAGE RELATING TO NA- TIONAL CLEAN PLANT NETWORK.—Section 420 of the Plant Protection Act (7 U.S.C. 7721) is amended— 

(1) by redesignating subsection (e) as subsection (f); and 

(2) by inserting after subsection (d) the following: 

‘‘(e) NATIONAL CLEAN PLANT NETWORK.— ‘‘(1) IN GENERAL.—The Secretary shall establish a program 

to be known as the ‘National Clean Plant Network’ (referred to 

in this subsection as the ‘Program’). 

‘‘(2) REQUIREMENTS.—Under the Program, the Secretary 

shall establish a network of clean plant centers for diagnostic 

and pathogen elimination services— 


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‘‘(A) to produce clean propagative plant material; and 

‘‘(B) to maintain blocks of pathogen-tested plant material in sites located throughout the United States. 

‘‘(3) AVAILABILITY OF CLEAN PLANT SOURCE MATERIAL.— 

Clean plant source material may be made available to— 

‘‘(A) a State for a certified plant program of the State; 

and 

‘‘(B) private nurseries and producers. 

‘‘(4) CONSULTATION AND COLLABORATION.—In carrying out 

the Program, the Secretary shall— 

‘‘(A) consult with— 

‘‘(i) State departments of agriculture; and 

‘‘(ii) land-grant colleges and universities and 

NLGCA Institutions (as those terms are defined in 

section 1404 of the National Agricultural Research, 

Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

3103)); and 

‘‘(B) to the extent practicable and with input from the 

appropriate State officials and industry representatives, 

use existing Federal or State facilities to serve as clean 

plant centers. 

‘‘(5) FUNDING FOR FISCAL YEAR 2013.—There is authorized 

to be appropriated to carry out the Program $5,000,000 for fiscal year 2013.’’. 

(b) FUNDING.—Subsection (f) of section 420 of the Plant Protection Act (7 U.S.C. 7721) (as so redesignated) is amended— 

(1) in paragraph (3), by striking ‘‘and’’ at the end; 

(2) in paragraph (4), by striking ‘‘and each fiscal year 

thereafter.’’ and inserting a semicolon; and 

(3) by adding at the end the following: 

‘‘(5) $62,500,000 for each of fiscal years 2014 through 2017; 

and 

‘‘(6) $75,000,000 for fiscal year 2018 and each fiscal year 

thereafter.’’. 

(c) REPEAL OF EXISTING PROVISION.—Section 10202 of the 

Food, Conservation, and Energy Act of 2008 (7 U.S.C. 7761) is repealed. 

(d) USE OF FUNDS FOR CLEAN PLANT NETWORK.—Section 420 

of the Plant Protection Act (7 U.S.C. 7721) (as amended by subsection (a)), is amended by adding at the end the following: 

‘‘(g) USE OF FUNDS FOR CLEAN PLANT NETWORK.—Of the funds 

made available under subsection (f) to carry out this section for a 

fiscal year, not less than $5,000,000 shall be available to carry out 

the National Clean Plant Network under subsection (e). 

‘‘(h) LIMITATION ON INDIRECT COSTS FOR THE CONSOLIDATION

OF PLANT PEST AND DISEASE MANAGEMENT AND DISASTER PREVENTION PROGRAMS.—Indirect costs charged against a cooperative 

agreement under this section shall not exceed the lesser of— 

‘‘(1) 15 percent of the total Federal funds provided under 

the cooperative agreement, as determined by the Secretary; 

and 

‘‘(2) the indirect cost rate applicable to the recipient as otherwise established by law.’’. 


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SEC. 10008. IMPORTATION OF SEED. 

Section 17(c) of the Federal Insecticide, Fungicide, and 

Rodenticide Act (7 U.S.C. 136o(c)) is amended— 

(1) by striking ‘‘The Secretary’’ and inserting the following: 

‘‘(1) IN GENERAL.—The Secretary’’; and 

(2) by adding at the end the following: 

‘‘(2) IMPORTATION OF SEED.—Notwithstanding any other 

provision of law, no person is required to notify the Administrator of the arrival of a plant-incorporated protectant (as defined in section 174.3 of title 40, Code of Federal Regulations 

(or any successor regulation)) that is contained in a seed, if— 

‘‘(A) that plant-incorporated protectant is registered 

under section 3; 

‘‘(B) the Administrator has issued an experimental use 

permit for that plant-incorporated protectant under section 

5; or 

‘‘(C) the seed is covered by a permit (as defined in part 

340 of title 7, Code of Federal Regulations (or any successor regulation)) or a notification. 

‘‘(3) COOPERATION.— 

‘‘(A) IN GENERAL.—In response to a request from the 

Administrator, the Secretary of Agriculture shall provide 

to the Administrator a list of seed containing plant-incorporated protectants (as defined in section 174.3 of title 40, 

Code of Federal Regulations (or any successor regulation)) 

if the importation of that seed into the United States has 

been approved under a permit or notification referred to in 

paragraph (2). 

‘‘(B) CONTENTS.—The list under subparagraph (A) 

shall be provided in a form and at such intervals as may 

be agreed to by the Secretary and the Administrator. 

‘‘(4) APPLICABILITY.—Nothing in this subsection precludes 

or limits the authority of the Secretary of Agriculture with respect to the importation or movement of plants, plant products, 

or seeds under— 

‘‘(A) the Plant Protection Act (7 U.S.C.7701 et seq.); 

and 

‘‘(B) the Federal Seed Act (7 U.S.C. 1551 et seq.).’’. 

SEC. 10009. BULK SHIPMENTS OF APPLES TO CANADA. 

(a) BULK SHIPMENT OF APPLES TO CANADA.—Section 4 of the 

Export Apple Act (7 U.S.C. 584) is amended— 

(1) by striking ‘‘SEC. 4. Apples in’’ and inserting the following: 

‘‘SEC. 4. EXEMPTIONS. 

‘‘(a) IN GENERAL.—Apples in’’; and 

(2) by adding at the end the following: 

‘‘(b) BULK CONTAINERS.—Apples may be shipped to Canada in 

bulk containers without complying with the provisions of this Act.’’. 

(b) DEFINITION OF BULK CONTAINER.—Section 9 of the Export 

Apple Act (7 U.S.C. 589) is amended by adding at the end the following: 

‘‘(5) The term ‘bulk container’ means a container that contains 

a quantity of apples weighing more than 100 pounds.’’. 


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(c) REGULATIONS.—Not later than 60 days after the date of enactment of this Act, the Secretary shall issue regulations to carry 

out the amendments made by this section. 

SEC. 10010. SPECIALTY CROP BLOCK GRANTS. 

Section 101 of the Specialty Crops Competitiveness Act of 2004 

(7 U.S.C. 1621 note; Public Law 108–465) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘subsection (j)’’ and inserting ‘‘subsection (l)’’; and 

(B) by striking ‘‘2012’’ and inserting ‘‘2018’’; 

(2) by striking subsection (b) and inserting the following: 

‘‘(b) GRANTS BASED ON VALUE AND ACREAGE.—Subject to subsection (c), for each State whose application for a grant for a fiscal 

year that is accepted by the Secretary under subsection (f), the 

amount of the grant for that fiscal year to the State under this section shall bear the same ratio to the total amount made available 

under subsection (l)(1) for that fiscal year as— 

‘‘(1) the average of the most recent available value of specialty crop production in the State and the acreage of specialty 

crop production in the State, as demonstrated in the most recent Census of Agriculture data; bears to 

‘‘(2) the average of the most recent available value of specialty crop production in all States and the acreage of specialty 

crop production in all States, as demonstrated in the most recent Census of Agriculture data.’’; 

(3) by redesignating subsection (j) as subsection (l); 

(4) by inserting after subsection (i) the following: 

‘‘(j) MULTISTATE PROJECTS.—Not later than 180 days after the 

effective date of the Agricultural Act of 2014, the Secretary of Agriculture shall issue guidance for the purpose of making grants to 

multistate projects under this section for projects involving— 

‘‘(1) food safety; 

‘‘(2) plant pests and disease; 

‘‘(3) research; 

‘‘(4) crop-specific projects addressing common issues; and 

‘‘(5) any other area that furthers the purposes of this section, as determined by the Secretary. 

‘‘(k) ADMINISTRATION.— 

‘‘(1) DEPARTMENT.—The Secretary of Agriculture may not 

use more than 3 percent of the funds made available to carry 

out this section for a fiscal year for administrative expenses. 

‘‘(2) STATES.—A State receiving a grant under this section 

may not use more than 8 percent of the funds received under 

the grant for a fiscal year for administrative expenses.’’; and 

(5) in subsection (l) (as redesignated by paragraph (3))— 

(A) by redesignating paragraphs (1), (2), and (3) as 

subparagraphs (A), (B), and (C), respectively, and indenting appropriately; 

(B) by striking ‘‘Of the funds’’ and inserting the following: 

‘‘(1) IN GENERAL.—Of the funds’’; 

(C) in paragraph (1) (as so designated)— 

(i) in subparagraph (B) (as redesignated by subparagraph (A)), by striking ‘‘and’’ at the end; 


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(ii) in subparagraph (C) (as redesignated by subparagraph (A)), by striking the period at the end and 

inserting a semicolon; and 

(iii) by adding at the end the following: 

‘‘(D) $72,500,000 for each of fiscal years 2014 through 

2017; and 

‘‘(E) $85,000,000 for fiscal year 2018 and each fiscal 

year thereafter.’’; and 

(D) by adding at the end the following: 

‘‘(2) MULTISTATE PROJECTS.—Of the funds made available 

under paragraph (1), the Secretary may use to carry out subsection (j), to remain available until expended— 

‘‘(A) $1,000,000 for fiscal year 2014; 

‘‘(B) $2,000,000 for fiscal year 2015; 

‘‘(C) $3,000,000 for fiscal year 2016; 

‘‘(D) $4,000,000 for fiscal year 2017; and 

‘‘(E) $5,000,000 for fiscal year 2018.’’. 

SEC. 10011. DEPARTMENT OF AGRICULTURE CONSULTATION REGARDING ENFORCEMENT OF CERTAIN LABOR LAW PROVISIONS. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, the Secretary shall consult with the Secretary 

of Labor regarding the restraining of shipments of agricultural 

commodities, or the confiscation of agricultural commodities, by the 

Department of Labor for actual or suspected labor law violations in 

order to consider— 

(1) the perishable nature of the commodities; 

(2) the impact of the restraining or confiscation on the economic viability of farming operations; and 

(3) the competitiveness of specialty crops through grants 

awarded to States under section 101 of the Specialty Crops 

Competitiveness Act of 2004 (7 U.S.C. 1621 note; Public Law 

108–465). 

(b) REPORT.—The Secretary of Labor shall submit to the Committees on Agriculture and Education and Workforce of the House 

of Representative and the Committees on Agriculture, Nutrition, 

and Forestry and Health, Education, Labor, and Pensions of the 

Senate a report that describes the number of instances during the 

period of fiscal years 2008 through 2013 that the Department of 

Labor has contacted a purchaser of perishable agricultural commodities to notify that purchaser of an investigation or pending enforcement action against a producer from whom the purchaser has 

purchased perishable agricultural commodities. 

SEC. 10012. REPORT ON HONEY. 

(a) REPORT.—Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with persons affected by the potential establishment of a Federal standard for the 

identity of honey, shall submit to the Commissioner of Food and 

Drugs a report describing how an appropriate Federal standard for 

the identity of honey would be in the interest of consumers, the 

honey industry, and United States agriculture. 

(b) CONSIDERATIONS.—In preparing the report required under 

subsection (a), the Secretary shall take into consideration the 

March 2006, Standard of Identity citizens petition filed with the 


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Food and Drug Administration, including any current industry 

amendments or clarifications necessary to update that petition. 

SEC. 10013. REPORTS TO CONGRESS. 

(a) IN GENERAL.—Not later than 180 days and 1 year after the 

date of enactment of this Act, the Administrator of the Environmental Protection Agency and Secretaries of Commerce, Agriculture and the Interior shall submit to the Committees on Agriculture and Natural Resources of the House of Representatives and 

the Committees on Agriculture, Nutrition, and Forestry and Environment and Public Works of the Senate, 2 reports that describe 

approaches and actions taken by the Environmental Protection 

Agency, the United States Fish and Wildlife Service, and the National Marine Fisheries Service— 

(1) to implement recommendations, including an analysis 

of how any identified delays to implementation will be overcome, of the 2013 Expert Report authored by the National Research Council of the National Academies entitled ‘‘Assessing 

Risks to Endangered and Threatened Species from Pesticides’’; 

(2) to otherwise minimize delays in integrating— 

(A) the pesticide registration and registration review 

requirements of sections 3 and 33 of the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 136a, 136w– 

8); and 

(B) the species and habitat protection processes described in sections 7 and 10 of the Endangered Species Act 

of 1973 (16 U.S.C. 1536, 1539); and 

(3) to ensure public participation and transparency during 

the development, implementation, and evaluation of the approaches to implement the recommendations contained in the 

report described in paragraph (1). 

(b) REQUIREMENT FOR FINAL REPORT.—In addition to the requirements of subsection (a), the final report submitted to Congress 

under that subsection shall— 

(1) inform Congress of specific actions that have been and 

will be taken to address the recommendations identified in 

subsection (a)(1), including an evaluation to establish that— 

(A) the approaches utilize the best available science; 

(B) reasonable and prudent alternatives within biological opinions are technologically and economically feasible; 

(C) reasonable and prudent measures are necessary 

and appropriate; and 

(D) the agencies ensure public participation and transparency in the development of reasonable and prudent alternatives and reasonable and prudent measures; and 

(2) update the study and report required by subsections (b) 

and (c) of section 1010 of Public Law 100–478 (7 U.S.C. 136a 

note). 

SEC. 10014. STAY OF REGULATIONS. 

Not later than 60 days after the date of enactment of this Act, 

the Secretary shall lift the administrative stay imposed under the 

rule of the Secretary entitled ‘‘Christmas Tree Promotion, Research, and Information Order; Stay of Regulations’’ and published 

by the Department of Agriculture on November 17, 2011 (76 Fed. 

Reg. 71241), on the regulations in subpart A of part 1214 of title 


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7, Code of Federal Regulations, establishing an industry-funded 

promotion, research, and information program for fresh-cut Christmas trees. 

SEC. 10015. REGULATION OF SULFURYL FLUORIDE. 

Notwithstanding any other provision of law, the Administrator 

of the Environmental Protection Agency shall exclude 

nonpesticideal sources of fluoride from any aggregate exposure assessment required under section 408 of the Federal Food, Drug, 

and Cosmetic Act (21 U.S.C. 346a) when assessing tolerances associated with residues from the pesticide. 

SEC. 10016. LOCAL FOOD PRODUCTION AND PROGRAM EVALUATION. 

(a) IN GENERAL.—The Secretary shall— 

(1) collect data on— 

(A) the production and marketing of locally or regionally produced agricultural food products; and 

(B) direct and indirect regulatory compliance costs affecting the production and marketing of locally or regionally produced agricultural food products; 

(2) facilitate interagency collaboration and data sharing on 

programs relating to local and regional food systems; 

(3) monitor— 

(A) the effectiveness of programs designed to expand 

or facilitate local food systems; and 

(B) barriers to local and regional market access due to 

Federal regulation of small-scale production; and 

(4) evaluate the manner in which local food systems— 

(A) contribute to improving community food security; 

and 

(B) assist populations with limited access to healthy 

food. 

(b) REQUIREMENTS.—In carrying out this section, the Secretary 

shall, at a minimum— 

(1) collect and distribute comprehensive reporting of prices 

and volume of locally or regionally produced agricultural food 

products; 

(2) conduct surveys and analysis and publish reports relating to the production, handling, distribution, retail sales, and 

trend studies (including consumer purchasing patterns) of or 

on locally or regionally produced agricultural food products; 

(3) evaluate the effectiveness of existing programs in growing local and regional food systems, including— 

(A) the impact of local food systems on job creation 

and economic development; 

(B) the level of participation in the Farmers’ Market 

and Local Food Promotion Program established under section 6 of the Farmer-to-Consumer Direct Marketing Act of 

1976 (7 U.S.C. 3005), including the percentage of projects 

funded in comparison to applicants and the types of eligible entities receiving funds; 

(C) the ability of participants to leverage private capital and a synopsis of the places from which non-Federal 

funds are derived; and 

(D) any additional resources required to aid in the development or expansion of local and regional food systems; 


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(4) evaluate the impact that Federal regulation of small 

commercial producers of agricultural food products intended for 

local and regional consumption may have on— 

(A) local job creation and economic development; 

(B) access to local and regional fruit and vegetable 

markets, including for new and beginning small commercial producers; and 

(C) participation in— 

(i) supplier networks; 

(ii) high volume distribution systems; and 

(iii) retail sales outlets; 

(5) expand the Agricultural Resource Management Survey 

of the Department to include questions on locally or regionally 

produced agricultural food products; and 

(6) seek to establish or expand private-public partnerships 

to facilitate, to the maximum extent practicable, the collection 

of data on locally or regionally produced agricultural food products, including the development of a nationally coordinated and 

regionally balanced evaluation of the redevelopment of locally 

or regionally produced food systems. 

(c) REPORT.—Not later than 1 year after the date of enactment 

of this Act and annually thereafter, the Secretary shall submit to 

the Committee on Agriculture of the House of Representatives and 

the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the progress that has been made in implementing this section and identifying any additional needs and barriers related to developing local and regional food systems. 

SEC. 10017. CLARIFICATION OF USE OF FUNDS FOR TECHNICAL ASSISTANCE. 

In the case of each program established or amended by this 

title that is authorized or required to be carried out using funds of 

the Commodity Credit Corporation, the use of those funds to provide technical assistance shall not be considered an allotment or 

fund transfer from the Commodity Credit Corporation for purposes 

of the limit on expenditures for technical assistance imposed by 

section 11 of the Commodity Credit Corporation Charter Act (15 

U.S.C. 714i). 

TITLE XI—CROP INSURANCE 

SEC. 11001. INFORMATION SHARING. 

Section 502(c) of the Federal Crop Insurance Act (7 U.S.C. 

1502(c)) is amended by adding at the end the following: 

‘‘(4) INFORMATION.— ‘‘(A) REQUEST.—Subject to subparagraph (B), the Farm 

Service Agency shall, in a timely manner, provide to an 

agent or an approved insurance provider authorized by the 

producer any information (including Farm Service Agency 

Form 578s (or any successor form)) or maps (or any corrections to those forms or maps) that may assist the agent or 

approved insurance provider in insuring the producer 

under a policy or plan of insurance under this subtitle. 

‘‘(B) PRIVACY.—Except as provided in subparagraph 

(C), an agent or approved insurance provider that receives 

the information of a producer pursuant to subparagraph 


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(A) shall treat the information in accordance with paragraph (1). 

‘‘(C) SHARING.—Nothing in this section prohibits the 

sharing of the information of a producer pursuant to subparagraph (A) between the agent and the approved insurance provider of the producer.’’. 

SEC. 11002. PUBLICATION OF INFORMATION ON VIOLATIONS OF PROHIBITION ON PREMIUM ADJUSTMENTS. 

Section 508(a)(9) of the Federal Crop Insurance Act (7 U.S.C. 

1508(a)(9)) is amended by adding at the end the following: 

‘‘(C) PUBLICATION OF VIOLATIONS.— 

‘‘(i) PUBLICATION REQUIRED.—Subject to clause (ii), 

the Corporation shall publish in a timely manner on 

the website of the Risk Management Agency information regarding each violation of this paragraph, including any sanctions imposed in response to the violation, 

in sufficient detail so that the information may serve 

as effective guidance to approved insurance providers, 

agents, and producers. 

‘‘(ii) PROTECTION OF PRIVACY.—In providing information under clause (i) regarding violations of this 

paragraph, the Corporation shall redact the identity of 

the persons and entities committing the violations in 

order to protect the privacy of those persons and entities.’’. 

SEC. 11003. SUPPLEMENTAL COVERAGE OPTION. 

(a) AVAILABILITY OF SUPPLEMENTAL COVERAGE OPTION.—Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is 

amended by striking paragraph (3) and inserting the following: 

‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A producer shall 

have the option of purchasing additional coverage based on— 

‘‘(A)(i) an individual yield and loss basis; or 

‘‘(ii) an area yield and loss basis; or 

‘‘(B) an individual yield and loss basis, supplemented 

with coverage based on an area yield and loss basis to 

cover a part of the deductible under the individual yield 

and loss policy, as described in paragraph (4)(C).’’. 

(b) LEVEL OF COVERAGE.—Section 508(c) of the Federal Crop 

Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph 

(4) and inserting the following: 

‘‘(4) LEVEL OF COVERAGE.— 

‘‘(A) DOLLAR DENOMINATION AND PERCENTAGE OF

YIELD.—Except as provided in subparagraph (C), the level 

of coverage— 

‘‘(i) shall be dollar denominated; and 

‘‘(ii) may be purchased at any level not to exceed 

85 percent of the individual yield or 95 percent of the 

area yield (as determined by the Corporation). 

‘‘(B) INFORMATION.—The Corporation shall provide 

producers with information on catastrophic risk and additional coverage in terms of dollar coverage (within the allowable limits of coverage provided in this paragraph). 

‘‘(C) SUPPLEMENTAL COVERAGE OPTION.— 


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‘‘(i) IN GENERAL.—Notwithstanding subparagraph 

(A), in the case of the supplemental coverage option 

described in paragraph (3)(B), the Corporation shall 

offer producers the opportunity to purchase coverage 

in combination with a policy or plan of insurance offered under this subtitle that would allow indemnities 

to be paid to a producer equal to a part of the deductible under the policy or plan of insurance— 

‘‘(I) at a county-wide level to the fullest extent 

practicable; or 

‘‘(II) in counties that lack sufficient data, on 

the basis of such larger geographical area as the 

Corporation determines to provide sufficient data 

for purposes of providing the coverage. 

‘‘(ii) TRIGGER.—Coverage offered under paragraph 

(3)(B) and clause (i) shall be triggered only if the 

losses in the area exceed 14 percent of normal levels 

(as determined by the Corporation). 

‘‘(iii) COVERAGE.—Subject to the trigger described 

in clause (ii), coverage offered under paragraph (3)(B) 

and clause (i) shall not exceed the difference between— 

‘‘(I) 86 percent; and 

‘‘(II) the coverage level selected by the producer for the underlying policy or plan of insurance. 

‘‘(iv) INELIGIBLE CROPS AND ACRES.—Crops for 

which the producer has elected under section 1116 of 

the Agricultural Act of 2014 to receive agriculture risk 

coverage and acres that are enrolled in the stacked income protection plan under section 508B shall not be 

eligible for supplemental coverage under this subparagraph. 

‘‘(v) CALCULATION OF PREMIUM.—Notwithstanding 

subsection (d), the premium for coverage offered under 

paragraph (3)(B) and clause (i) shall— 

‘‘(I) be sufficient to cover anticipated losses 

and a reasonable reserve; and 

‘‘(II) include an amount for operating and administrative expenses established in accordance 

with subsection (k)(4)(F).’’. 

(c) 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 by adding at the end the following: 

‘‘(H) In the case of the supplemental coverage option 

authorized in subsection (c)(4)(C), the amount shall be 

equal to the sum of— 

‘‘(i) 65 percent of the additional premium associated with the coverage; and 

‘‘(ii) the amount determined under subsection 

(c)(4)(C)(v)(II), subject to subsection (k)(4)(F), for the 

coverage to cover operating and administrative expenses.’’. 

(d) APPLICATION DATE.—The Federal Crop Insurance Corporation shall begin to provide additional coverage based on an indiVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00317 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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vidual yield and loss basis, supplemented with coverage based on 

an area yield and loss basis, as described in the amendments made 

by this section, not later than for the 2015 crop year. 

SEC. 11004. CROP MARGIN COVERAGE OPTION. 

Section 508(c)(3) of the Federal Crop Insurance Act (7 U.S.C. 

1508(c)(3)) (as amended by section 11003) is amended— 

(1) in subparagraph (A)(ii), by striking ‘‘or’’ at the end; 

(2) in subparagraph (B), by striking the period at the end 

and inserting ‘‘; or’’; and 

(3) by adding at the end the following: 

‘‘(C) a margin basis alone or in combination with the 

coverages available under subparagraph (A) or (B).’’. 

SEC. 11005. PREMIUM AMOUNTS FOR CATASTROPHIC RISK PROTECTION. 

Section 508(d)(2) of the Federal Crop Insurance Act (7 U.S.C. 

1508(d)(2)) is amended by striking subparagraph (A) and inserting 

the following: 

‘‘(A) In the case of catastrophic risk protection, the 

amount of the premium established by the Corporation for 

each crop for which catastrophic risk protection is available shall be reduced by the percentage equal to the difference between the average loss ratio for the crop and 100 

percent, plus a reasonable reserve, as determined by the 

Corporation.’’. 

SEC. 11006. PERMANENT ENTERPRISE UNIT SUBSIDY. 

Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C. 

1508(e)(5)) is amended by striking subparagraph (A) and inserting 

the following: 

‘‘(A) IN GENERAL.—The Corporation may pay a portion 

of the premiums for plans or policies of insurance for 

which the insurable unit is defined on a whole farm or enterprise unit basis that is higher than would otherwise be 

paid in accordance with paragraph (2).’’. 

SEC. 11007. ENTERPRISE UNITS FOR IRRIGATED AND NONIRRIGATED 

CROPS. 

Section 508(e)(5) of the Federal Crop Insurance Act (7 U.S.C. 

1508(e)(5)) is amended by adding at the end the following: 

‘‘(D) NONIRRIGATED CROPS.—Beginning with the 2015 

crop year, the Corporation shall make available separate 

enterprise units for irrigated and nonirrigated acreage of 

crops in counties.’’. 

SEC. 11008. DATA COLLECTION. 

Section 508(g)(2) of the Federal Crop Insurance Act (7 U.S.C. 

1508(g)(2)) is amended by adding at the end the following: 

‘‘(E) SOURCES OF YIELD DATA.—To determine yields 

under this paragraph, the Corporation— 

‘‘(i) shall use county data collected by the Risk 

Management Agency, the National Agricultural Statistics Service, or both; or 

‘‘(ii) if sufficient county data is not available, may 

use other data considered appropriate by the Secretary.’’. 


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SEC. 11009. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH INSURABLE YIELDS. 

Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 

1508(g)) (as amended by section 11008) is amended— 

(1) in paragraph (2)(A), by inserting ‘‘and paragraph 

(4)(C)’’ after ‘‘(B)’’; and 

(2) in paragraph (4)— 

(A) by redesignating subparagraph (C) as subparagraph (D); 

(B) in subparagraph (D) (as so redesignated), by inserting ‘‘or (C)’’ after ‘‘(B)’’; and 

(C) by inserting after subparagraph (B) the following: 

‘‘(C) ELECTION TO EXCLUDE CERTAIN HISTORY.— 

‘‘(i) IN GENERAL.—Notwithstanding paragraph (2), 

with respect to 1 or more of the crop years used to establish the actual production history of an agricultural 

commodity of the producer, the producer may elect to 

exclude any recorded or appraised yield for any crop 

year in which the per planted acre yield of the agricultural commodity in the county of the producer was at 

least 50 percent below the simple average of the per 

planted acre yield of the agricultural commodity in the 

county during the previous 10 consecutive crop years. 

‘‘(ii) CONTIGUOUS COUNTIES.—In any crop year 

that a producer in a county is eligible to make an election to exclude a yield under clause (i), a producer in 

a contiguous county is eligible to make such an election. 

‘‘(iii) IRRIGATION PRACTICE.—For purposes of determining whether the per planted acre yield of the agricultural commodity in the county of the producer was 

at least 50 percent below the simple average of the per 

planted acre yield of the agricultural commodity in the 

county during the previous 10 consecutive crop years, 

the Corporation shall make a separate determination 

for irrigated and nonirrigated acreage.’’. 

SEC. 11010. SUBMISSION OF POLICIES AND BOARD REVIEW AND APPROVAL. 

(a) IN GENERAL.—Section 508(h) of the Federal Crop Insurance 

Act (7 U.S.C. 1508(h)) is amended— 

(1) in paragraph (1)— 

(A) by redesignating subparagraphs (A) and (B) as 

clauses (i) and (ii), respectively, and indenting appropriately; 

(B) by striking ‘‘(1) IN GENERAL.—In addition’’ and inserting the following: 

‘‘(1) AUTHORITY TO SUBMIT.— 

‘‘(A) IN GENERAL.—In addition’’; and 

(C) by adding at the end the following: 

‘‘(B) REVIEW AND SUBMISSION BY CORPORATION.—The 

Corporation shall review any policy developed under section 522(c) or any pilot program developed under section 

523 and submit the policy or program to the Board under 

this subsection if the Corporation, at the sole discretion of 

the Corporation, finds that the policy or program— 


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‘‘(i) will likely result in a viable and marketable 

policy consistent with this subsection; 

‘‘(ii) would provide crop insurance coverage in a 

significantly improved form; and 

‘‘(iii) adequately protects the interests of producers.’’; and 

(2) by striking paragraph (3) and inserting the following: 

‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— ‘‘(A) IN GENERAL.—A policy, plan of insurance, or other 

material submitted to the Board under this subsection 

shall be reviewed by the Board and shall be approved by 

the Board for reinsurance and for sale by approved insurance providers to producers at actuarially appropriate 

rates and under appropriate terms and conditions if the 

Board determines that— 

‘‘(i) the interests of producers are adequately protected; 

‘‘(ii) the proposed policy or plan of insurance will— 

‘‘(I) provide a new kind of coverage that is 

likely to be viable and marketable; 

‘‘(II) provide crop insurance coverage in a 

manner that addresses a clear and identifiable 

flaw or problem in an existing policy; or 

‘‘(III) provide a new kind of coverage for a 

commodity that previously had no available crop 

insurance, or has demonstrated a low level of participation or coverage level under existing coverage; and 

‘‘(iii) the proposed policy or plan of insurance will 

not have a significant adverse impact on the crop insurance delivery system. 

‘‘(B) CONSIDERATION.—In approving policies or plans of 

insurance, the Board shall in a timely manner— 

‘‘(i) first, consider policies or plans of insurance 

that address underserved commodities, including commodities for which there is no insurance; 

‘‘(ii) second, consider existing policies or plans of 

insurance for which there is inadequate coverage or 

there exists low levels of participation; and 

‘‘(iii) last, consider all policies or plans of insurance submitted to the Board that do not meet the criteria described in clause (i) or (ii). 

‘‘(C) SPECIFIED REVIEW AND APPROVAL PRIORITIES.—In 

reviewing policies and other materials submitted to the 

Board under this subsection for approval, the Board— 

‘‘(i) shall make the development and approval of a 

revenue policy for peanut producers a priority so that 

a revenue policy is available to peanut producers in 

time for the 2015 crop year; 

‘‘(ii) shall make the development and approval of 

a margin coverage policy for rice producers a priority 

so that a margin coverage policy is available to rice 

producers in time for the 2015 crop year; and 

‘‘(iii) may approve a submission that is made pursuant to this subsection that would, beginning with 


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the 2015 crop year, allow producers that purchase 

policies in accordance with subsection (e)(5)(A) to separate enterprise units by risk rating for acreage of 

crops in counties.’’. 

(b) APPROVAL OF COSTS FOR RESEARCH AND DEVELOPMENT.— 

Section 522(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 

1522(b)(2)) is amended by striking subparagraph (E) and inserting 

the following: 

‘‘(E) APPROVAL.— 

‘‘(i) IN GENERAL.—The Board may approve up to 

50 percent of the projected total research and development costs to be paid in advance to an applicant, in 

accordance with the procedures developed by the 

Board for the making of the payments, if, after consideration of the reviewer reports described in subparagraph (D) and such other information as the Board determines appropriate, the Board determines that— 

‘‘(I) the concept, in good faith, will likely result in a viable and marketable policy consistent 

with section 508(h); 

‘‘(II) at the sole discretion of the Board, the 

concept, if developed into a policy and approved by 

the Board, would provide crop insurance coverage— 

‘‘(aa) in a significantly improved form; 

‘‘(bb) to a crop or region not traditionally 

served by the Federal crop insurance program; or 

‘‘(cc) in a form that addresses a recognized flaw or problem in the program; 

‘‘(III) the applicant agrees to provide such reports as the Corporation determines are necessary 

to monitor the development effort; 

‘‘(IV) the proposed budget and timetable are 

reasonable, as determined by the Board; and 

‘‘(V) the concept proposal meets any other requirements that the Board determines appropriate. 

‘‘(ii) WAIVER.—The Board may waive the 50-percent limitation and, upon request of the submitter 

after the submitter has begun research and development activities, the Board may approve an additional 

25 percent advance payment to the submitter for research and development costs, if, at the sole discretion 

of the Board, the Board determines that— 

‘‘(I) the intended policy or plan of insurance 

developed by the submitter will provide coverage 

for a region or crop that is underserved by the 

Federal crop insurance program, including specialty crops; and 

‘‘(II) the submitter is making satisfactory 

progress towards developing a viable and marketable policy or plan of insurance consistent with 

section 508(h).’’. 


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SEC. 11011. CONSULTATION. 

Section 508(h)(4) of the Federal Crop Insurance Act (7 U.S.C. 

1508(h)(4)) is amended by adding at the end the following: 

‘‘(E) CONSULTATION.— ‘‘(i) REQUIREMENT.—As part of the feasibility and 

research associated with the development of a policy 

or other material for fruits and vegetables, tree nuts, 

dried fruits, and horticulture and nursery crops (including floriculture), the submitter prior to making a 

submission under this subsection shall consult with 

groups representing producers of those agricultural 

commodities in all major producing areas for the commodities to be served or potentially impacted, either 

directly or indirectly. 

‘‘(ii) SUBMISSION TO THE BOARD.—Any submission 

made to the Board under this subsection shall contain 

a summary and analysis of the feasibility and research 

findings from the impacted groups described in clause 

(i), including a summary assessment of the support for 

or against development of the policy and an assessment on the impact of the proposed policy to the general marketing and production of the crop from both 

a regional and national perspective. 

‘‘(iii) EVALUATION BY THE BOARD.—In evaluating 

whether the interests of producers are adequately protected pursuant to paragraph (3) with respect to a submission made under this subsection, the Board shall 

review the information provided pursuant to clause (ii) 

to determine if the submission will create adverse 

market distortions with respect to the production of 

commodities that are the subject of the submission.’’. 

SEC. 11012. BUDGET LIMITATIONS ON RENEGOTIATION OF THE 

STANDARD REINSURANCE AGREEMENT. 

Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 

1508(k)(8)) is amended by adding at the end the following: 

‘‘(F) BUDGET.— 

‘‘(i) IN GENERAL.—The Board shall ensure that any 

Standard Reinsurance Agreement negotiated under 

subparagraph (A)(ii) shall— 

‘‘(I) to the maximum extent practicable, be estimated as budget neutral with respect to the 

total amount of payments described in paragraph 

(9) as compared to the total amount of such payments estimated to be made under the immediately preceding Standard Reinsurance Agreement if that Agreement were extended over the 

same period of time; 

‘‘(II) comply with the applicable provisions of 

this Act establishing the rates of reimbursement 

for administrative and operating costs for approved insurance providers and agents, except 

that, to the maximum extent practicable, the estimated total amount of reimbursement for those 

costs shall not be less than the total amount of 

the payments to be made under the immediately 


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preceding Standard Reinsurance Agreement if 

that Agreement were extended over the same period of time, as estimated on the date of enactment of the Agricultural Act of 2014; and 

‘‘(III) in no event significantly depart from 

budget neutrality unless otherwise required by 

this Act. 

‘‘(ii) USE OF SAVINGS.—To the extent that any 

budget savings are realized in the renegotiation of a 

Standard Reinsurance Agreement under subparagraph 

(A)(ii), and the savings are determined not to be a significant departure from budget neutrality under clause 

(i), the savings shall be used to increase reimbursements or payments described under paragraphs (4) 

and (9).’’. 

SEC. 11013. TEST WEIGHT FOR CORN. 

Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 

1508(m)) is amended by adding at the end the following: 

‘‘(6) TEST WEIGHT FOR CORN.— 

‘‘(A) IN GENERAL.—The Corporation shall establish 

procedures to allow insured producers not more than 120 

days to settle claims, in accordance with procedures established by the Secretary, involving corn that is determined 

to have low test weight. 

‘‘(B) IMPLEMENTATION.—As soon as practicable after 

the date of enactment of this paragraph, the Corporation 

shall implement subparagraph (A) on a regional basis 

based on market conditions and the interests of producers. 

‘‘(C) TERMINATION OF EFFECTIVENESS.—The authority 

provided by this paragraph terminates effective on the 

date that is 5 years after the date on which subparagraph 

(A) is implemented.’’. 

SEC. 11014. CROP PRODUCTION ON NATIVE SOD. 

(a) FEDERAL CROP INSURANCE.—Section 508(o) of the Federal 

Crop Insurance Act (7 U.S.C. 1508(o)) is amended— 

(1) in paragraph (1)(B), by inserting ‘‘, or the producer cannot substantiate that the ground has ever been tilled,’’ after 

‘‘tilled’’; 

(2) in paragraph (2)— 

(A) in the paragraph heading, by striking ‘‘INELIGIBILITY FOR’’ and inserting ‘‘REDUCTION IN’’; 

(B) by striking subparagraph (A) and inserting the following: 

‘‘(A) IN GENERAL.—During the first 4 crop years of 

planting, as determined by the Secretary, native sod acreage that has been tilled for the production of an annual 

crop after the date of enactment of the Agricultural Act of 

2014 shall be subject to a reduction in benefits under this 

subtitle as described in this paragraph.’’; and 

(C) by adding at the end the following: 

‘‘(C) ADMINISTRATION.— ‘‘(i) REDUCTION.—For purposes of the reduction in 

benefits for the acreage described in subparagraph 

(A)— 


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‘‘(I) the crop insurance guarantee shall be determined by using a yield equal to 65 percent of 

the transitional yield of the producer; and 

‘‘(II) the crop insurance premium subsidy provided for the producer under this subtitle, except 

for coverage authorized pursuant to subsection 

(b)(1), shall be 50 percentage points less than the 

premium subsidy that would otherwise apply. 

‘‘(ii) YIELD SUBSTITUTION.—During the period native sod acreage is covered by this subsection, a producer may not substitute yields for the native sod.’’; 

(3) by striking paragraph (3) and inserting the following: 

‘‘(3) APPLICATION.—This subsection shall only apply to native sod acreage in the States of Minnesota, Iowa, North Dakota, South Dakota, Montana, and Nebraska.’’. 

(b) NONINSURED CROP DISASTER ASSISTANCE.—Section 

196(a)(4) of the Federal Agriculture Improvement and Reform Act 

of 1996 (7 U.S.C. 7333(a)(4)) is amended— 

(1) in the paragraph heading, by striking ‘‘INELIGIBILITY’’ 

and inserting ‘‘REDUCTION IN BENEFITS’’; 

(2) in subparagraph (A)(ii), by inserting ‘‘, or the producer 

cannot substantiate that the ground has ever been tilled,’’ after 

‘‘tilled’’; 

(3) in subparagraph (B)— 

(A) in the subparagraph heading, by striking ‘‘INELIGI- BILITY FOR’’ and inserting ‘‘REDUCTION IN’’; 

(B) by striking clause (i) and inserting the following: 

‘‘(i) IN GENERAL.—During the first 4 crop years of 

planting, as determined by the Secretary, native sod 

acreage that has been tilled for the production of an 

annual crop after the date of enactment of the Agricultural Act of 2014 shall be subject to a reduction in 

benefits under this section as described in this subparagraph.’’; and 

(C) by adding at the end the following: 

‘‘(iii) REDUCTION.—For purposes of the reduction 

in benefits for the acreage described in clause (i)— 

‘‘(I) the approved yield shall be determined by 

using a yield equal to 65 percent of the transitional yield of the producer; and 

‘‘(II) the service fees or premiums for crops 

planted on native sod shall be equal to 200 percent of the amount determined in subsections 

(l)(2) or (k), as applicable, but in no case shall exceed the amount determined in subsection 

(l)(2)(B)(ii).’’; and 

(4) by striking subparagraph (C) and inserting the following: 

‘‘(C) APPLICATION.—This paragraph shall only apply to 

native sod acreage in the States of Minnesota, Iowa, North 

Dakota, South Dakota, Montana, and Nebraska.’’. 

(c) CROPLAND REPORT.— (1) BASELINE.—Not later than 180 days after the date of 

enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the 


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Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the cropland acreage in each applicable county and State, and the change in cropland acreage 

from the preceding year in each applicable county and State, 

beginning with calendar year 2000 and including that information for the most recent year for which that information is 

available. 

(2) ANNUAL UPDATES.—Not later than January 1, 2015, 

and each January 1 thereafter through January 1, 2018, the 

Secretary shall submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate a report that describes— 

(A) the cropland acreage in each applicable county and 

State as of the date of submission of the report; and 

(B) the change in cropland acreage from the preceding 

year in each applicable county and State. 

SEC. 11015. COVERAGE LEVELS BY PRACTICE. 

Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) 

is amended by adding at the end the following: 

‘‘(p) COVERAGE LEVELS BY PRACTICE.—Beginning with the 2015 

crop year, a producer that produces an agricultural commodity on 

both dry land and irrigated land may elect a different coverage 

level for each production practice.’’. 

SEC. 11016. BEGINNING FARMER AND RANCHER PROVISIONS. 

(a) DEFINITION.—Section 502(b) of the Federal Crop Insurance 

Act (7 U.S.C. 1502(b)) is amended— 

(1) by redesignating paragraphs (3) through (9) as paragraphs (4) through (10), respectively; and 

(2) by inserting after paragraph (2) the following: 

‘‘(3) BEGINNING FARMER OR RANCHER.—The term ‘beginning farmer or rancher’ means a farmer or rancher who has 

not actively operated and managed a farm or ranch with a 

bona fide insurable interest in a crop or livestock as an owneroperator, landlord, tenant, or sharecropper for more than 5 

crop years, as determined by the Secretary.’’. 

(b) PREMIUM ADJUSTMENTS.—Section 508 of the Federal Crop 

Insurance Act (7 U.S.C. 1508) is amended— 

(1) in subsection (b)(5)(E), by inserting ‘‘and beginning 

farmers or ranchers’’ after ‘‘limited resource farmers’’; 

(2) in subsection (e), by adding at the end the following: 

‘‘(8) PREMIUM FOR BEGINNING FARMERS OR RANCHERS.— Notwithstanding any other provision of this subsection regarding payment of a portion of premiums, a beginning farmer or 

rancher shall receive premium assistance that is 10 percentage 

points greater than premium assistance that would otherwise 

be available under paragraphs (2) (except for subparagraph (A) 

of that paragraph), (5), (6), and (7) for the applicable policy, 

plan of insurance, and coverage level selected by the beginning 

farmer or rancher.’’; and 

(3) in subsection (g)— 

(A) in paragraph (2)(B)— 

(i) in clause (i), by striking ‘‘or’’ at the end; 

(ii) in clause (ii)(III), by striking the period at the 

end and inserting ‘‘; or’’; and 


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(iii) by adding at the end the following: 

‘‘(iii) if the producer is a beginning farmer or 

rancher who was previously involved in a farming or 

ranching operation, including involvement in the decisionmaking or physical involvement in the production 

of the crop or livestock on the farm, for any acreage 

obtained by the beginning farmer or rancher, a yield 

that is the higher of— 

‘‘(I) the actual production history of the previous producer of the crop or livestock on the acreage determined under subparagraph (A); or 

‘‘(II) a yield of the producer, as determined in 

clause (i).’’; and 

(B) in paragraph (4)(B)(ii)— 

(i) by inserting ‘‘(I)’’ after ‘‘(ii)’’; 

(ii) by striking the period at the end and inserting 

‘‘; or’’; and 

(iii) by adding at the end the following: 

‘‘(II) in the case of beginning farmers or ranchers, 

replace each excluded yield with a yield equal to 80 

percent of the applicable transitional yield.’’. 

SEC. 11017. STACKED INCOME PROTECTION PLAN FOR PRODUCERS 

OF UPLAND COTTON. 

(a) AVAILABILITY OF STACKED INCOME PROTECTION PLAN FOR

PRODUCERS OF UPLAND COTTON.—The Federal Crop Insurance Act 

is amended by inserting after section 508A (7 U.S.C. 1508a) the following: 

‘‘SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRODUCERS 

OF UPLAND COTTON. 

‘‘(a) AVAILABILITY.—Beginning not later than the 2015 crop of 

upland cotton, the Corporation shall make available to producers 

of upland cotton an additional policy (to be known as the ‘Stacked 

Income Protection Plan’), which shall provide coverage consistent 

with the Group Risk Income Protection Plan (and the associated 

Harvest Revenue Option Endorsement) offered by the Corporation 

for the 2011 crop year. 

‘‘(b) REQUIRED TERMS.—The Corporation may modify the 

Stacked Income Protection Plan on a program-wide basis, except 

that the Stacked Income Protection Plan shall comply with the following requirements: 

‘‘(1) Provide coverage for revenue loss of not less than 10 

percent and not more than 30 percent of expected county revenue, specified in increments of 5 percent. The deductible shall 

be the minimum percent of revenue loss at which indemnities 

are triggered under the plan, not to be less than 10 percent of 

the expected county revenue. 

‘‘(2) Be offered to producers of upland cotton in all counties 

with upland cotton production— 

‘‘(A) at a county-wide level to the fullest extent practicable; or 

‘‘(B) in counties that lack sufficient data, on the basis 

of such larger geographical area as the Corporation determines to provide sufficient data for purposes of providing 

the coverage. 


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‘‘(3) Be purchased in addition to any other individual or 

area coverage in effect on the producer’s acreage or as a standalone policy, except that if a producer has an individual or area 

coverage for the same acreage, the maximum coverage available under the Stacked Income Protection Plan shall not exceed the deductible for the individual or area coverage. 

‘‘(4) Establish coverage based on— 

‘‘(A) the expected price established under existing 

Group Risk Income Protection or area wide policy offered 

by the Corporation for the applicable county (or area) and 

crop year; and 

‘‘(B) an expected county yield that is the higher of— 

‘‘(i) the expected county yield established for the 

existing area-wide plans offered by the Corporation for 

the applicable county (or area) and crop year (or, in 

geographic areas where area-wide plans are not offered, an expected yield determined in a manner consistent with those of area-wide plans); or 

‘‘(ii) the average of the applicable yield data for 

the county (or area) for the most recent 5 years, excluding the highest and lowest observations, from the 

Risk Management Agency or the National Agricultural 

Statistics Service (or both) or, if sufficient county data 

is not available, such other data considered appropriate by the Secretary. 

‘‘(5) Use a multiplier factor to establish maximum protection per acre (referred to as a ‘protection factor’) of not less 

than the higher of the level established on a program wide 

basis or 120 percent. 

‘‘(6) Pay an indemnity based on the amount that the expected county revenue exceeds the actual county revenue, as 

applied to the individual coverage of the producer. Indemnities 

under the Stacked Income Protection Plan shall not include or 

overlap the amount of the deductible selected under paragraph 

(1). 

‘‘(7) In all counties for which data are available, establish 

separate coverage levels for irrigated and nonirrigated practices. 

‘‘(c) PREMIUM.—Notwithstanding section 508(d), the premium 

for the Stacked Income Protection Plan shall— 

‘‘(1) be sufficient to cover anticipated losses and a reasonable reserve; and 

‘‘(2) include an amount for operating and administrative 

expenses established in accordance with section 508(k)(4)(F). 

‘‘(d) PAYMENT OF PORTION OF PREMIUM BY CORPORATION.— 

Subject to section 508(e)(4), the amount of premium paid by the 

Corporation for all qualifying coverage levels of the Stacked Income 

Protection Plan shall be— 

‘‘(1) 80 percent of the amount of the premium established 

under subsection (c) for the coverage level selected; and 

‘‘(2) the amount determined under subsection (c)(2), subject 

to section 508(k)(4)(F), for the coverage to cover administrative 

and operating expenses. 


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‘‘(e) RELATION TO OTHER COVERAGES.—The Stacked Income 

Protection Plan is in addition to all other coverages available to 

producers of upland cotton.’’. 

(b) CONFORMING AMENDMENT.—Section 508(k)(4)(F) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) is amended by inserting ‘‘or authorized under subsection (c)(4)(C) or section 508B’’ 

after ‘‘of this subparagraph’’. 

SEC. 11018. PEANUT REVENUE CROP INSURANCE. 

The Federal Crop Insurance Act is amended by inserting after 

section 508B (as added by section 11017), the following: 

‘‘SEC. 508C. PEANUT REVENUE CROP INSURANCE. 

‘‘(a) IN GENERAL.—Effective beginning with the 2015 crop year, 

the Risk Management Agency and the Corporation shall make 

available to producers of peanuts a revenue crop insurance program for peanuts. 

‘‘(b) EFFECTIVE PRICE.—Subject to subsection (c), for purposes 

of the revenue crop insurance program and the multiperil crop insurance program under this Act, the effective price for peanuts 

shall be equal to the Rotterdam price index for peanuts or other 

appropriate price as determined by the Secretary, as adjusted to reflect the farmer stock price of peanuts in the United States. 

‘‘(c) ADJUSTMENTS.— 

‘‘(1) IN GENERAL.—The effective price for peanuts established under subsection (b) may be adjusted by the Risk Management Agency and the Corporation to correct distortions. 

‘‘(2) ADMINISTRATION.—If an adjustment is made under 

paragraph (1), the Risk Management Agency and the Corporation shall— 

‘‘(A) make the adjustment in an open and transparent 

manner; and 

‘‘(B) submit to the Committee on Agriculture of the 

House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that 

describes the reasons for the adjustment.’’. 

SEC. 11019. AUTHORITY TO CORRECT ERRORS. 

Section 515(c) of the Federal Crop Insurance Act (7 U.S.C. 

1515(c)) is amended— 

(1) in the first sentence, by striking ‘‘The Secretary’’ and 

inserting the following: 

‘‘(1) IN GENERAL.—The Secretary’’; 

(2) in the second sentence, by striking ‘‘Beginning with’’ 

and inserting the following: 

‘‘(2) FREQUENCY.—Beginning with’’; and 

(3) by adding at the end the following: 

‘‘(3) CORRECTIONS.— 

‘‘(A) IN GENERAL.—In addition to the corrections permitted by the Corporation as of the day before the date of 

enactment of the Agricultural Act of 2014, the Corporation 

shall establish procedures that allow an agent or an approved insurance provider, subject to subparagraph (B)— 

‘‘(i) within a reasonable amount of time following 

the applicable sales closing date, to correct errors in 

information that is provided by a producer for the purpose of obtaining coverage under any policy or plan of 


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insurance made available under this subtitle to ensure 

that the eligibility information is correct and consistent with information reported by the producer for 

other programs administered by the Secretary; 

‘‘(ii) within a reasonable amount of time following— 

‘‘(I) the acreage reporting date, to reconcile errors in the information reported by the producer 

with correct information determined from any 

other program administered by the Secretary; or 

‘‘(II) the date of any subsequent correction of 

data by the Farm Service Agency made as a result 

of the verification of information, to make conforming corrections; and 

‘‘(iii) at any time, to correct electronic transmission errors that were made by an agent or approved insurance provider, or such errors made by the 

Farm Service Agency or any other agency of the Department of Agriculture in transmitting the information provided by the producer for purposes of other 

programs of the Department to the extent an agent or 

approved insurance provider relied upon the erroneous 

information for crop insurance purposes. 

‘‘(B) LIMITATION.—In accordance with the procedures 

of the Corporation, correction to the information described 

in clauses (i) and (ii) of subparagraph (A) may only be 

made if the corrections do not allow the producer— 

‘‘(i) to avoid ineligibility requirements for insurance or obtain a disproportionate benefit under the 

crop insurance program or any related program administered by the Secretary; 

‘‘(ii) to obtain, enhance, or increase an insurance 

guarantee or indemnity if a cause of loss exists or has 

occurred before any correction has been made, or avoid 

premium owed if no loss is likely to occur; or 

‘‘(iii) to avoid an obligation or requirement under 

any Federal or State law. 

‘‘(C) EXCEPTION TO LATE FILING SANCTIONS.—Any corrections made within a reasonable amount of time, in accordance with established procedures, pursuant to this 

paragraph shall not be subject to any late filing sanctions 

authorized in the reinsurance agreement with the Corporation. 

‘‘(D) LATE PAYMENT OF DEBT.—In the case of a producer that has inadvertently failed to pay a debt due as 

specified by regulations of the Corporation and has been 

determined to be ineligible for crop insurance pursuant to 

the terms of the policy as a result of that failure, the Corporation may determine to allow the producer to pay the 

debt and purchase the crop insurance after the sales closing date, in accordance with procedures and limitations established by the Corporation.’’. 

SEC. 11020. IMPLEMENTATION. 

Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1515) 

is amended— 


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(1) in subsection (j), by striking paragraph (1) and inserting the following: 

‘‘(1) SYSTEMS MAINTENANCE AND UPGRADES.— 

‘‘(A) IN GENERAL.—The Secretary shall maintain and 

upgrade the information management systems of the Corporation used in the administration and enforcement of 

this subtitle. 

‘‘(B) REQUIREMENT.— 

‘‘(i) IN GENERAL.—In maintaining and upgrading 

the systems, the Secretary shall ensure that new 

hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the 

purposes of this section. 

‘‘(ii) ACREAGE REPORT STREAMLINING INITIATIVE

PROJECT.—As soon as practicable, the Secretary shall 

develop and implement an acreage report streamlining 

initiative project to allow producers to report acreage 

and other information directly to the Department.’’; 

and 

(2) in subsection (k), by striking paragraph (1) and inserting the following: 

‘‘(1) INFORMATION TECHNOLOGY.— 

‘‘(A) IN GENERAL.—For purposes of subsection (j)(1), 

the Corporation may use, from amounts made available 

from the insurance fund established under section 516(c), 

not more than— 

‘‘(i)(I) for fiscal year 2014, $14,000,000; and 

‘‘(II) for each of fiscal years 2015 through 2018, 

$9,000,000; or 

‘‘(ii) if the Acreage Crop Reporting Streamlining 

Initiative (ACRSI) project is substantially completed 

by September 30, 2015, not more than $14,000,000 for 

each of the fiscal years 2015 through 2018. 

‘‘(B) NOTIFICATION.—The Secretary shall notify the 

Committee on Agriculture of the House of Representatives 

and the Committee on Agriculture, Nutrition, and Forestry 

of the Senate of the substantial completion of the Acreage 

Crop Reporting Streamlining Initiative (ACRSI) project not 

later than July 1, 2015.’’. 

SEC. 11021. CROP INSURANCE FRAUD. 

Section 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 

1516(b)(2)) is amended by adding at the end the following: 

‘‘(C) REVIEWS, COMPLIANCE, AND INTEGRITY.— 

‘‘(i) IN GENERAL.—For each of the 2014 and subsequent reinsurance years, the Corporation may use the 

insurance fund established under subsection (c), but 

not to exceed $9,000,000 for each fiscal year, to pay 

costs— 

‘‘(I) to reimburse expenses incurred for the operations and review of policies, plans of insurance, 

and related materials (including actuarial and related information); and 


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‘‘(II) to assist the Corporation in maintaining 

program actuarial soundness and financial integrity. 

‘‘(ii) SECRETARIAL ACTION.—For the purposes described in clause (i), the Secretary may, without further appropriation— 

‘‘(I) merge some or all of the funds made 

available under this subparagraph into the accounts of the Risk Management Agency; and 

‘‘(II) obligate those funds. 

‘‘(iii) MAINTENANCE OF FUNDING.—Funds made 

available under this subparagraph shall be in addition 

to other funds made available for costs incurred by the 

Corporation or the Risk Management Agency.’’. 

SEC. 11022. RESEARCH AND DEVELOPMENT PRIORITIES. 

(a) AUTHORITY TO CONDUCT RESEARCH AND DEVELOPMENT, PRI- ORITIES.—Section 522(c) of the Federal Crop Insurance Act (7 

U.S.C. 1522(c)) is amended— 

(1) in the subsection heading, by striking ‘‘CONTRACTING’’; 

(2) in paragraph (1), in the matter preceding subparagraph 

(A), by striking ‘‘may enter into contracts to carry out research 

and development to’’ and inserting ‘‘may conduct activities or 

enter into contracts to carry out research and development to 

maintain or improve existing policies or develop new policies 

to’’; 

(3) in paragraph (2)— 

(A) in subparagraph (A), by inserting ‘‘conduct research and development or’’ after ‘‘The Corporation may’’; 

and 

(B) in subparagraph (B), by inserting ‘‘conducting research and development or’’ after ‘‘Before’’; 

(4) in paragraph (5), by inserting ‘‘after expert review in 

accordance with section 505(e)’’ after ‘‘approved by the Board’’; 

(5) in paragraph (6), by striking ‘‘a pasture, range, and forage program’’ and inserting ‘‘policies that increase participation 

by producers of underserved agricultural commodities, including sweet sorghum, biomass sorghum, rice, peanuts, sugarcane, 

alfalfa, pennycress, dedicated energy crops, and specialty 

crops’’; 

(6) by redesignating paragraph (17) as paragraph (25); and 

(7) by inserting after paragraph (16), the following: 

‘‘(17) MARGIN COVERAGE FOR CATFISH.— 

‘‘(A) IN GENERAL.—The Corporation shall offer to enter 

into a contract with a qualified entity to conduct research 

and development regarding a policy to insure producers 

against reduction in the margin between the market value 

of catfish and selected costs incurred in the production of 

catfish. 

‘‘(B) ELIGIBILITY.—Eligibility for the policy described 

in subparagraph (A) shall be limited to freshwater species 

of catfish that are propagated and reared in controlled or 

selected environments. 

‘‘(C) IMPLEMENTATION.—The Board shall review the 

policy described in subparagraph (B) under section 508(h) 

and approve the policy if the Board finds that the policy— 


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‘‘(i) will likely result in a viable and marketable 

policy consistent with this subsection; 

‘‘(ii) would provide crop insurance coverage in a 

significantly improved form; 

‘‘(iii) adequately protects the interests of producers; and 

‘‘(iv) meets other requirements of this subtitle determined appropriate by the Board. 

‘‘(18) BIOMASS AND SWEET SORGHUM ENERGY CROP INSUR- ANCE POLICIES.— ‘‘(A) IN GENERAL.—The Corporation shall offer to enter 

into 1 or more contracts with qualified entities to carry out 

research and development regarding— 

‘‘(i) a policy to insure biomass sorghum that is 

grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or 

biobased products; and 

‘‘(ii) a policy to insure sweet sorghum that is 

grown for a purpose described in clause (i). 

‘‘(B) RESEARCH AND DEVELOPMENT.—Research and development with respect to each of the policies required in 

subparagraph (A) shall evaluate the effectiveness of risk 

management tools for the production of biomass sorghum 

or sweet sorghum, including policies and plans of insurance that— 

‘‘(i) are based on market prices and yields; 

‘‘(ii) to the extent that insufficient data exist to develop a policy based on market prices and yields, 

evaluate the policies and plans of insurance based on 

the use of weather indices, including excessive or inadequate rainfall, to protect the interest of crop producers; and 

‘‘(iii) provide protection for production or revenue 

losses, or both. 

‘‘(19) STUDY ON SWINE CATASTROPHIC DISEASE PROGRAM.— ‘‘(A) IN GENERAL.—The Corporation shall contract with 

1 or more qualified entities to conduct a study to determine the feasibility of insuring swine producers for a catastrophic event. 

‘‘(B) REPORT.—Not later than 1 year after the date of 

the enactment of this paragraph, the Corporation shall 

submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the 

results of the study conducted under subparagraph (A). 

‘‘(20) WHOLE FARM DIVERSIFIED RISK MANAGEMENT INSURANCE PLAN.— 

‘‘(A) IN GENERAL.—Unless the Corporation approves a 

whole farm insurance plan, similar to the plan described 

in this paragraph, to be available to producers for the 2016 

reinsurance year, the Corporation shall conduct activities 

or enter into contracts to carry out research and development to develop a whole farm risk management insurance 

plan, with a liability limitation of $1,500,000, that allows 

a diversified crop or livestock producer the option to qualVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00332 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ify for an indemnity if actual gross farm revenue is below 

85 percent of the average gross farm revenue or the expected gross farm revenue that can reasonably be expected 

of the producer, as determined by the Corporation. 

‘‘(B) ELIGIBLE PRODUCERS.—The Corporation shall permit producers (including direct-to-consumer marketers and 

producers servicing local and regional and farm identitypreserved markets) who produce multiple agricultural 

commodities, including specialty crops, industrial crops, 

livestock, and aquaculture products, to participate in the 

plan developed under subparagraph (A) in lieu of any 

other plan under this subtitle. 

‘‘(C) DIVERSIFICATION.—The Corporation may provide 

diversification-based additional coverage payment rates, 

premium discounts, or other enhanced benefits in recognition of the risk management benefits of crop and livestock 

diversification strategies for producers that— 

‘‘(i) grow multiple crops; or 

‘‘(ii) may have income from the production of livestock that uses a crop grown on the farm. 

‘‘(D) MARKET READINESS.—The Corporation may include coverage for the value of any packing, packaging, or 

any other similar on-farm activity the Corporation determines to be the minimum required in order to remove the 

commodity from the field. 

‘‘(21) STUDY ON POULTRY CATASTROPHIC DISEASE PRO- GRAM.— ‘‘(A) IN GENERAL.—The Corporation shall contract with 

a qualified person to conduct a study to determine the feasibility of insuring poultry producers for a catastrophic 

event. 

‘‘(B) REPORT.—Not later than 1 year after the date of 

the enactment of this paragraph, the Corporation shall 

submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the 

results of the study conducted under subparagraph (A). 

‘‘(22) POULTRY BUSINESS INTERRUPTION INSURANCE POL- ICY.— ‘‘(A) DEFINITIONS.—In this paragraph, the terms ‘poultry’ and ‘poultry grower’ have the meanings given those 

terms in section 2(a) of the Packers and Stockyards Act, 

1921 (7 U.S.C. 182(a)). 

‘‘(B) AUTHORITY.—The Corporation shall offer to enter 

into a contract or cooperative agreement with an institution of higher education or other legal entity to carry out 

research and development regarding a policy to insure the 

commercial production of poultry against business interruptions caused by integrator bankruptcy. 

‘‘(C) RESEARCH AND DEVELOPMENT.—As part of the research and development conducted pursuant to a contract 

or cooperative agreement entered into under subparagraph 

(B), the entity shall— 

‘‘(i) evaluate the market place for business interruption insurance that is available to poultry growers; 


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‘‘(ii) determine what statutory authority would be 

necessary to implement a business interruption insurance through the Corporation; 

‘‘(iii) assess the feasibility of a policy or plan of insurance offered under this subtitle to insure against a 

portion of losses due to business interruption or to the 

bankruptcy of an business integrator; and 

‘‘(iv) analyze the costs to the Federal Government 

of a Federal business interruption insurance program 

for poultry growers or producers. 

‘‘(D) DEADLINE FOR CONTRACT OR COOPERATIVE AGREEMENT.—Not later than 180 days after the date of enactment of this paragraph, the Corporation shall offer to 

enter into the contract or cooperative agreement required 

by subparagraph (B). 

‘‘(E) DEADLINE FOR COMPLETION OF RESEARCH AND DEVELOPMENT.—Not later than 1 year after the date of enactment of this paragraph, the Corporation shall submit to 

the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and 

Forestry of the Senate a report that describes the results 

of the research and development conducted pursuant to 

the contract or cooperative agreement entered into under 

subparagraph (B).] 

‘‘(23) STUDY OF FOOD SAFETY INSURANCE.— 

‘‘(A) IN GENERAL.—The Corporation shall offer to enter 

into a contract with 1 or more qualified entities to conduct 

a study to determine whether offering policies that provide 

coverage for specialty crops from food safety and contamination issues would benefit agricultural producers. 

‘‘(B) SUBJECT.—The study described in subparagraph 

(A) shall evaluate policies and plans of insurance coverage 

that provide protection for production or revenue impacted 

by food safety concerns including, at a minimum, government, retail, or national consumer group announcements 

of a health advisory, removal, or recall related to a contamination concern. 

‘‘(C) REPORT.—Not later than 1 year after the date of 

enactment of this paragraph, the Corporation shall submit 

to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).’’. 

‘‘(24) ALFALFA CROP INSURANCE POLICY.— 

‘‘(A) IN GENERAL.—The Corporation shall offer to enter 

into 1 or more contracts with qualified entities to carry out 

research and development regarding a policy to insure alfalfa. 

‘‘(B) REPORT.—Not later than 1 year after the date of 

enactment of this paragraph, the Corporation shall submit 

to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, 

and Forestry of the Senate a report that describes the results of the study conducted under subparagraph (A).’’. 


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(b) FUNDING.—Section 522(e) of the Federal Crop Insurance 

Act (7 U.S.C. 1522(e)) is amended— 

(1) in paragraph (2)— 

(A) in subparagraph (A)— 

(i) in the subparagraph heading, by striking ‘‘AUTHORITY.—’’ and inserting ‘‘CONDUCTING AND CONTRACTING FOR RESEARCH AND DEVELOPMENT.—’’; and 

(ii) by inserting ‘‘conduct research and development and’’ after ‘‘the Corporation may use to’’; and 

(B) in subparagraph (B), by inserting ‘‘conduct research and development and’’ after ‘‘for the fiscal year to’’; 

(2) in paragraph (3), in the matter preceding subparagraph 

(A), by striking ‘‘to provide either reimbursement payments or 

contract payments’’; and 

(3) by striking paragraph (4). 

SEC. 11023. CROP INSURANCE FOR ORGANIC CROPS. 

(a) IN GENERAL.—Section 508(c)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(6)) is amended by adding at the end the 

following: 

‘‘(D) ORGANIC CROPS.— 

‘‘(i) IN GENERAL.—As soon as possible, but not 

later than the 2015 reinsurance year, the Corporation 

shall offer producers of organic crops price elections 

for all organic crops produced in compliance with 

standards issued by the Department of Agriculture 

under the national organic program established under 

the Organic Foods Production Act of 1990 (7 U.S.C. 

6501 et seq.) that reflect the actual retail or wholesale 

prices, as appropriate, received by producers for organic crops, as determined by the Secretary using all 

relevant sources of information. 

‘‘(ii) ANNUAL REPORT.—The Corporation shall submit to the Committee on Agriculture of the House of 

Representatives and the Committee on Agriculture, 

Nutrition, and Forestry of the Senate an annual report 

on progress made in developing and improving Federal 

crop insurance for organic crops, including— 

‘‘(I) the numbers and varieties of organic crops 

insured; 

‘‘(II) the progress of implementing the price 

elections required under this subparagraph, including the rate at which additional price elections are adopted for organic crops; 

‘‘(III) the development of new insurance approaches relevant to organic producers; and 

‘‘(IV) any recommendations the Corporation 

considers appropriate to improve Federal crop insurance coverage for organic crops.’’. 

(b) CONFORMING AMENDMENT.—Section 522(c) of the Federal 

Crop Insurance Act (7 U.S.C. 1522(c)) (as amended by section 

11022) is amended— 

(1) by striking paragraph (10); and 

(2) by redesignating paragraphs (11) through (25) as paragraphs (10) through (24), respectively. 


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SEC. 11024. PROGRAM COMPLIANCE PARTNERSHIPS. 

(a) IN GENERAL.—Section 522(d) of the Federal Crop Insurance 

Act (7 U.S.C. 1522(d)) is amended by striking paragraph (1) and inserting the following: 

‘‘(1) PURPOSE.—The purpose of this subsection is to authorize the Corporation to enter into partnerships with public and 

private entities for the purpose of either— 

‘‘(A) increasing the availability of loss mitigation, financial, and other risk management tools for producers, 

with a priority given to risk management tools for producers of agricultural commodities covered by section 196 

of the Agricultural Market Transition Act (7 U.S.C. 7333), 

specialty crops, and underserved agricultural commodities; 

or 

‘‘(B) improving analysis tools and technology regarding 

compliance or identifying and using innovative compliance 

strategies.’’. 

(b) OBJECTIVES.—Section 522(d)(3) of the Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)) is amended— 

(1) in subparagraph (F), by striking ‘‘and’’ at the end; 

(2) by redesignating subparagraph (G) as subparagraph 

(H); and 

(3) by inserting after subparagraph (F) the following: 

‘‘(G) to improve analysis tools and technology regarding compliance or identifying and using innovative compliance strategies; and’’. 

SEC. 11025. PILOT PROGRAMS. 

Section 523(a) of the Federal Crop Insurance Act (7 U.S.C. 

1523(a)) is amended— 

(1) in paragraph (1), by inserting ‘‘, at the sole discretion 

of the Corporation,’’ after ‘‘may’’; and 

(2) by striking paragraph (5). 

SEC. 11026. INDEX-BASED WEATHER INSURANCE PILOT PROGRAM. 

Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) 

is amended by adding at the end the following: 

‘‘(i) UNDERSERVED CROPS AND REGIONS PILOT PROGRAMS.— 

‘‘(1) DEFINITION OF LIVESTOCK COMMODITY.—In this subsection, the term ‘livestock commodity’ includes cattle, sheep, 

swine, goats, and poultry, including pasture, rangeland, and 

forage as a source of feed for that livestock. 

‘‘(2) AUTHORIZATION.—Notwithstanding subsection (a)(2), 

the Corporation may conduct 2 or more pilot programs to provide producers of underserved specialty crops and livestock 

commodities with index-based weather insurance, subject to 

the requirements of this section. 

‘‘(3) REVIEW AND APPROVAL OF SUBMISSIONS.— 

‘‘(A) IN GENERAL.—The Board shall approve 2 or more 

proposed policies or plans of insurance from approved insurance providers if the Board determines that the policies 

or plans provide coverage as specified in paragraph (2), 

and meet the conditions described in this paragraph 

‘‘(B) REQUIREMENTS.—To be eligible for approval under 

this subsection, the approved insurance provider shall 

have— 


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‘‘(i) adequate experience underwriting and administering policies or plans of insurance that are comparable to the proposed policy or plan of insurance; 

‘‘(ii) sufficient assets or reinsurance to satisfy the 

underwriting obligations of the approved insurance 

provider, and possess a sufficient insurance credit rating from an appropriate credit rating bureau, in accordance with Board procedures; and 

‘‘(iii) applicable authority and approval from each 

State in which the approved insurance provider intends to sell the insurance product. 

‘‘(C) REVIEW REQUIREMENTS.—In reviewing applications under this subsection, the Board shall conduct the review in a manner consistent with the standards, rules, and 

procedures for policies or plans of insurance submitted 

under section 508(h) and the actuarial soundness requirements applied to other policies and plans of insurance 

made available under this subtitle. 

‘‘(D) PRIORITIZATION.—The Board shall prioritize applications that provide a new kind of coverage for specialty 

crops and livestock commodities that previously had no 

available crop insurance, or has demonstrated a low level 

of participation under existing coverage. 

‘‘(4) PAYMENT OF PREMIUM SUPPORT.— 

‘‘(A) IN GENERAL.—The Corporation shall pay a portion 

of the premium for producers that purchase a policy or 

plan of insurance approved pursuant to this subsection. 

‘‘(B) AMOUNT.—The premium subsidy shall provide a 

similar dollar amount of premium subsidy per acre that 

the Corporation pays for comparable policies or plans of insurance reinsured under this subtitle, except that in no 

case shall the premium subsidy exceed 60 percent of total 

premium, as determined by the Corporation. 

‘‘(C) CALCULATION.—The premium subsidy, as determined by the Corporation, shall be calculated as— 

‘‘(i) a percentage of premium; 

‘‘(ii) a percentage of expected loss determined pursuant to a reasonable actuarial methodology; or 

‘‘(iii) a fixed dollar amount per acre. 

‘‘(D) PAYMENT.—Subject to subparagraphs (B) and (C), 

the premium subsidy under this subsection shall be paid 

by the Corporation in the same manner and under the 

same terms and conditions as premium subsidy for other 

policies and plans of insurance. 

‘‘(E) OPERATING AND ADMINISTRATIVE EXPENSE PAYMENTS.— 

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

and administrative expense payments may be made 

for policies and plans of insurance approved under this 

subsection in an amount that is commensurate with 

similar policies and plans of insurance reinsured 

under this subtitle, on the condition that the operating 

and administrative expenses are not included in premiums. 


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‘‘(ii) LIMITATION.—Subject to subparagraph (F)(i), 

Federal reinsurance, research and development costs, 

other reimbursements, or maintenance fees shall not 

be provided or collected for policies and plans of insurance approved under this subsection. 

‘‘(F) APPROVED INSURANCE PROVIDERS.—Any policy or 

plan of insurance approved under this subsection may be 

sold only by the approved insurance provider that submits 

the application and by any additional approved insurance 

provider that— 

‘‘(i) agrees to pay maintenance fees or other payments to the approved insurance provider that submitted the application in an amount agreed to by the 

applicant and the additional approved insurance provider, on the condition that the fees or payments shall 

be reasonable and appropriate to ensure that the policies or plans of insurance may be made available by 

additional approved insurance providers; and 

‘‘(ii) meets the eligibility criteria of paragraph 

(3)(B), as determined by the Board. 

‘‘(G) RELATIONSHIP TO OTHER PROVISIONS.—The requirements of this paragraph shall apply notwithstanding 

paragraph (6). 

‘‘(5) OVERSIGHT.—The Corporation shall develop and publish procedures to administer policies or plans of insurance approved under this subsection that— 

‘‘(A) require each approved insurance provider to report sales, acreage and claim data, and any other data 

that the Corporation determines to be appropriate, to 

allow the Corporation to evaluate sales and performance of 

the product; and 

‘‘(B) contain such other requirements as the Corporation determines necessary to ensure that the products— 

‘‘(i) do not have a significant adverse impact on 

the crop insurance delivery system; 

‘‘(ii) are in the best interests of producers; and 

‘‘(iii) do not result in a reduction of program integrity. 

‘‘(6) CONFIDENTIALITY.— ‘‘(A) IN GENERAL.—All reports required under paragraph (5) and all other proprietary information and data 

generated or derived from applicants under this subsection 

shall be considered to be confidential commercial or financial information for the purposes of section 552(b)(4) of 

title 5, United States Code. 

‘‘(B) STANDARD.—If information concerning a proposal 

could be withheld by the Secretary under the standard for 

privileged or confidential information pertaining to trade 

secrets and commercial or financial information under section 552(b)(4) of title 5, United States Code, the information shall not be released to the public. 

‘‘(7) INELIGIBLE PURPOSES.—In no case shall a policy or 

plan of insurance made available under this subsection provide 

coverage substantially similar to privately available hail insurance. 


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‘‘(8) FUNDING.— 

‘‘(A) LIMITATION ON EXPENDITURES.—Notwithstanding 

any other provision in this subsection, of the funds of the 

Corporation, the Corporation shall use to carry out this 

section not more than $12,500,000 for each of fiscal years 

2015 through 2018, to remain available until expended. 

‘‘(B) RELATION TO OTHER PROGRAMS.—The amount of 

funds made available under this section shall be in addition to amounts made available under other provisions of 

this subtitle, including amounts made available under subsection (b).’’. 

SEC. 11027. ENHANCING PRODUCER SELF-HELP THROUGH FARM FINANCIAL BENCHMARKING. 

(a) DEFINITION.—Section 502(b) of the Federal Crop Insurance 

Act (7 U.S.C. 1502(b)) (as amended by section 11016(a)(1)) is 

amended— 

(1) by redesignating paragraphs (7) through (10) as paragraphs (8) through (11), respectively; and 

(2) by inserting after paragraph (6) the following: 

‘‘(7) FARM FINANCIAL BENCHMARKING.—The term ‘farm financial benchmarking’ means— 

‘‘(A) the process of comparing the performance of an 

agricultural enterprise against the performance of other 

similar enterprises, through the use of comparable and reliable data, in order to identify business management 

strengths, weaknesses, and steps necessary to improve 

management performance and business profitability; and 

‘‘(B) benchmarking of the type conducted by farm management and producer associations consistent with the activities described in or funded pursuant to section 1672D 

of the Food, Agriculture, Conservation, and Trade Act of 

1990 (7 U.S.C. 5925f).’’. 

(b) PARTNERSHIPS FOR RISK MANAGEMENT FOR PRODUCERS OF

SPECIALTY CROPS AND UNDERSERVED AGRICULTURAL COMMODITIES.—Section 522(d)(3)(F) of the Federal Crop Insurance Act (7 

U.S.C. 1522(d)(3)(F)) is amended by inserting ‘‘farm financial 

benchmarking,’’ after ‘‘management,’’. 

(c) CROP INSURANCE EDUCATION AND RISK MANAGEMENT ASSISTANCE.—Section 524(a) of the Federal Crop Insurance Act (7 

U.S.C. 1524(a)) is amended— 

(1) in paragraph (3)(A), by inserting ‘‘farm financial 

benchmarking,’’ after ‘‘risk reduction,’’; and 

(2) in paragraph (4), in the matter preceding subparagraph 

(A), by inserting ‘‘(including farm financial benchmarking)’’ 

after ‘‘management strategies’’. 

SEC. 11028. TECHNICAL AMENDMENTS. 

(a) Section 508 of the Federal Crop Insurance Act (7 U.S.C. 

1508) is amended— 

(1) in subsection (b)— 

(A) by striking paragraph (7); and 

(B) by redesignating paragraphs (8) through (11) as 

paragraphs (7) through (10), respectively; 


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(2) in subsection (e)(2), in the matter preceding subparagraph (A), by striking ‘‘paragraph (3)’’ and inserting ‘‘paragraphs (3), (6), and (7)’’; and 

(3) in subsection (k)(8)(C), by striking ‘‘subparagraph 

(A)(iii)’’ and inserting ‘‘subparagraph (A)(ii)’’. 

(b) Section 522 of the Federal Crop Insurance Act (7 U.S.C. 

1522) is amended— 

(1) in subsection (b)(4)(A), by striking ‘‘paragraphs (1)’’ and 

inserting ‘‘paragraph (1)’’; and 

(2) in subsection (e)(1), by adding a period at the end. 

(c) Section 531(d)(3)(A) of the Federal Crop Insurance Act (7 

U.S.C. 1531(d)(3)(A)) is amended— 

(1) by striking ‘‘(A) ELIGIBLE LOSSES.—’’ and all that follows through ‘‘An eligible’’ in clause (i) and inserting the following: 

‘‘(A) ELIGIBLE LOSSES.—An eligible’’; 

(2) by striking clause (ii); and 

(3) by redesignating subclauses (I) and (II) as clauses (i) 

and (ii), respectively, and indenting appropriately. 

(d) Section 901(d)(3)(A) of the Trade Act of 1974 (19 U.S.C. 

2497(d)(3)(A)) is amended— 

(1) by striking ‘‘(A) ELIGIBLE LOSSES.—’’ and all that follows through ‘‘An eligible’’ in clause (i) and inserting the following: 

‘‘(A) ELIGIBLE LOSSES.—An eligible’’; 

(2) by striking clause (ii); and 

(3) by redesignating subclauses (I) and (II) as clauses (i) 

and (ii), respectively, and indenting appropriately. 

TITLE XII—MISCELLANEOUS 

Subtitle A—Livestock 

SEC. 12101. TRICHINAE CERTIFICATION PROGRAM. 

(a) ALTERNATIVE CERTIFICATION PROCESS.—The Secretary of 

Agriculture shall amend the rule made under paragraph (2) of section 11010(a) of the Food, Conservation, and Energy Act of 2008 (7 

U.S.C. 8304(a)) to implement the voluntary trichinae certification 

program established under paragraph (1) of such section, to include 

a requirement to establish an alternative trichinae certification 

process based on surveillance or other methods consistent with 

international standards for categorizing compartments as having 

negligible risk for trichinae. 

(b) FINAL REGULATIONS.—Not later than one year after the 

date on which the international standards referred to in subsection 

(a) are adopted, the Secretary shall finalize the rule amended 

under such subsection. 

(c) REAUTHORIZATION.—Section 10405(d)(1) of the Animal 

Health Protection Act (7 U.S.C. 8304(d)(1)) is amended in subparagraphs (A) and (B) by striking ‘‘2012’’ each place it appears and inserting ‘‘2018’’. 

SEC. 12102. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM. 

(a) IN GENERAL.—Subtitle A of the Agricultural Marketing Act 

of 1946 (7 U.S.C. 1621 et seq.) is amended by adding at the end 

the following: 


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‘‘SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT PROGRAM. 

‘‘(a) ESTABLISHMENT.—The Secretary of Agriculture, acting 

through the Administrator of the Agricultural Marketing Service, 

shall establish a competitive grant program for the purposes of 

strengthening and enhancing the production and marketing of 

sheep and sheep products in the United States, including 

through— 

‘‘(1) the improvement of— 

‘‘(A) infrastructure; 

‘‘(B) business; and 

‘‘(C) resource development; and 

‘‘(2) the development of innovative approaches to solve 

long-term needs. 

‘‘(b) ELIGIBILITY.—The Secretary shall make grants under this 

section to at least one national entity, the mission of which is consistent with the purpose of the grant program. 

‘‘(c) FUNDING.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $1,500,000 for 

fiscal year 2014, to remain available until expended.’’. 

(b) CONFORMING AMENDMENT.—Section 375 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008j) (as in existence on the day before the date of the enactment of this Act) is— 

(1) amended in subsection (e)— 

(A) in paragraph (3)(D), by striking ‘‘3 percent’’ and inserting ‘‘10 percent’’; and 

(B) by striking paragraph (6); 

(2) redesignated as section 210 of the Agricultural Marketing Act of 1946; and 

(3) moved so as to appear at the end of subtitle A of that 

Act (as amended by subsection (a)). 

SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 

Section 11013(d) of the Food, Conservation, and Energy Act of 

2008 (7 U.S.C. 8322(d)) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

SEC. 12104. COUNTRY OF ORIGIN LABELING. 

(a) ECONOMIC ANALYSIS.— 

(1) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this Act, the Secretary of Agriculture, acting 

through the Office of the Chief Economist, shall conduct an 

economic analysis of the final rule entitled ‘‘Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat 

Meat, Wild and Farm-raised Fish and Shellfish, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng and Macadamia Nuts’’ published by the Department of Agriculture on 

May 24, 2013 (78 Fed. Reg. 31367) that makes certain amendments to parts 60 and 65 of title 7, Code of Federal Regulations. 

(2) CONTENTS.—The economic analysis described in subsection (a) shall include, with respect to the labeling of beef, 

pork, and chicken, an analysis of the impact on consumers, 

producers, and packers in the United States of— 

(A) the implementation of subtitle D of the Agricultural Marketing Act of 1946 (7 U.S.C. 1638 et seq.); and 

(B) the final rule referred to in subsection (a). 


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(b) APPLYING COUNTRY OF ORIGIN LABELING REQUIREMENTS TO

VENISON.— 

(1) DEFINITION OF COVERED COMMODITY.—Section 

281(2)(A) of the Agricultural Marketing Act of 1946 (7 U.S.C. 

1638(2)(A)) is amended— 

(A) in clause (i), by striking ‘‘and pork’’ and inserting 

‘‘pork, and venison’’; and 

(B) in clause (ii), by striking ‘‘and ground pork’’ and inserting ‘‘ground pork, and ground venison’’. 

(2) NOTICE OF COUNTRY OF ORIGIN.—Section 282(a)(2) of 

the Agricultural Marketing Act of 1946 (7 U.S.C. 1638a(a)(2)) 

is amended— 

(A) in the heading, by striking ‘‘AND GOAT’’ and inserting ‘‘GOAT, AND VENISON’’; 

(B) by striking ‘‘or goat’’ and inserting ‘‘goat, or venison’’ each place it appears in subparagraphs (A), (B), (C), 

and (D); and 

(C) in subparagraph (E)— 

(i) in the heading, by striking ‘‘AND GOAT’’ and inserting ‘‘GOAT, AND VENISON’’; and 

(ii) by striking ‘‘or ground goat’’ each place it appears and inserting ‘‘ground goat, or ground venison’’. 

SEC. 12105. NATIONAL ANIMAL HEALTH LABORATORY NETWORK. 

The Animal Health Protection Act is amended by inserting 

after section 10409 (7 U.S.C. 8308) the following new section: 

‘‘SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY NETWORK. 

‘‘(a) DEFINITION OF ELIGIBLE LABORATORY.—In this section, the 

term ‘eligible laboratory’ means a diagnostic laboratory that meets 

specific criteria developed by the Secretary, in consultation with 

State animal health officials, State veterinary diagnostic laboratories, and veterinary diagnostic laboratories at institutions of 

higher education (as defined in section 101 of the Higher Education 

Act of 1965 (20 U.S.C. 1001)). 

‘‘(b) IN GENERAL.—The Secretary, in consultation with State 

veterinarians, shall offer to enter into contracts, grants, cooperative 

agreements, or other legal instruments with eligible laboratories 

for any of the following purposes: 

‘‘(1) To enhance the capability of the Secretary to respond 

in a timely manner to emerging or existing bioterrorist threats 

to animal health. 

‘‘(2) To provide the capacity and capability for standardized— 

‘‘(A) test procedures, reference materials, and equipment; 

‘‘(B) laboratory biosafety and biosecurity levels; 

‘‘(C) quality management system requirements; 

‘‘(D) interconnected electronic reporting and transmission of data; and 

‘‘(E) evaluation for emergency preparedness. 

‘‘(3) To coordinate the development, implementation, and 

enhancement of national veterinary diagnostic laboratory capabilities, with special emphasis on surveillance planning and 

vulnerability analysis, technology development and validation, 

training, and outreach. 


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‘‘(c) PRIORITY.—To the extent practicable and to the extent capacity and specialized expertise may be necessary, the Secretary 

shall give priority to existing Federal facilities, State facilities, and 

facilities at institutions of higher education. 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section $15,000,000 for 

each of fiscal years 2014 through 2018.’’. 

SEC. 12106. FOOD SAFETY INSPECTION. 

(a) INSPECTIONS.— 

(1) IN GENERAL.—Section 1(w) of the Federal Meat Inspection Act (21 U.S.C. 601(w)) is amended by striking paragraph 

(2) and inserting the following: 

‘‘(2) all fish of the order Siluriformes; and’’. 

(2) CONDITIONS.—Section 6 of the Federal Meat Inspection 

Act (21 U.S.C. 606) is amended by striking subsection (b) and 

inserting the following: 

‘‘(b) CERTAIN FISH.—In the case of an examination and inspection under subsection (a) of a meat food product derived from any 

fish described in section 1(w)(2), the Secretary shall take into account the conditions under which the fish is raised and transported 

to a processing establishment.’’. 

(3) INAPPLICABILITY.—Section 25 of the Federal Meat Inspection Act (21 U.S.C. 625) is amended by striking ‘‘not apply’’ 

and all that follows and inserting ‘‘not apply to any fish described in section 1(w)(2).’’. 

(4) CONFORMING AMENDMENT.—Section 203(n) of the Agricultural Marketing Act of 1946 (7 U.S.C. 1622(n)) is amended 

by striking paragraph (1) and inserting the following: 

‘‘(1) all fish of the order Siluriformes; and’’. 

(b) IMPLEMENTATION.— 

(1) IN GENERAL.—The Secretary shall— 

(A) not later than 60 days after the date of enactment 

of this Act, issue final regulations to carry out the amendments made by section 11016(b)(1) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 

Stat. 2130), as further clarified by the amendments made 

by this section; and 

(B) not later than 1 year after the date of enactment 

of this Act, implement the amendments described in subparagraph (A). 

(2) NOTIFICATION.—Beginning 30 days after the date of enactment of this Act and every 30 days thereafter until the date 

of full implementation of the amendments described in paragraph (1)(A), the Secretary shall submit a report describing the 

status of implementation to— 

(A) the Committee on Agriculture of the House of Representatives; 

(B) the Committee on Agriculture, Nutrition and Forestry of the Senate; 

(C) the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies of the Committee on Appropriations of the House of 

Representatives; and 


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(D) the Subcommittee on Agriculture, Rural Development, and Related Agencies of the Committee on Appropriations of the Senate. 

(3) PROCEDURE.—Section 1601(c)(2) applies to the promulgation of the regulations and administration of this section and 

the amendments made by this section. 

(4) CONFORMING AMENDMENT.—Section 11016(b) of the 

Food, Conservation, and Energy Act of 2008 (Public Law 110– 

246; 122 Stat. 2130) is amended by striking paragraph (2) and 

inserting the following: 

‘‘(2) IMPLEMENTATION.— ‘‘(A) REGULATIONS.—Not later than 60 days after the 

date of enactment of the Agricultural Act of 2014, the Secretary, in consultation with the Commissioner of Food and 

Drugs, shall issue final regulations to carry out the 

amendments made by paragraph (1) and section 12106 of 

that Act in a manner that ensures that there is no duplication in inspection activities. 

‘‘(B) INTERAGENCY COORDINATION.—Not later than 60 

days after the date of enactment of the Agricultural Act of 

2014, the Secretary shall execute a memorandum of understanding with the Commissioner of Food and Drugs for the 

following purposes: 

‘‘(i) To improve interagency cooperation on food 

safety and fraud prevention, building upon any other 

prior agreements, including provisions, performance 

metrics, and timelines as appropriate. 

‘‘(ii) To maximize the effectiveness of limited personnel and resources by ensuring that— 

‘‘(I) inspections conducted by the Department 

satisfy requirements under the Federal Food, 

Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); 

‘‘(II) inspections of shipments and processing 

facilities for fish of the order Siluriformes by the 

Department and the Food and Drug Administration are not duplicative; and 

‘‘(III) any information resulting from examination, testing, and inspections conducted is considered in making risk-based determinations, including the establishment of inspection priorities.’’. 

(c) EFFECTIVE DATE.—This section and the amendments made 

by this section shall take effect as if enacted as part of section 

11016(b) of the Food, Conservation, and Energy Act of 2008 (Public 

Law 110–246; 122 Stat. 2130). 

SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN. 

The Secretary of Agriculture shall ensure that the Department 

of Agriculture continues to administer the diagnostic surveillance 

program for H5/H7 low pathogenic avian influenza with respect to 

commercial poultry under section 146.14 of title 9, Code of Federal 

Regulations (or a successor regulation), without amending the regulations in section 147.43 of title 9, Code of Federal Regulations (as 

in effect on the date of the enactment of this Act), with respect to 

the governance of the General Conference Committee established 

under such section. The Secretary of Agriculture shall maintain— 

(1) the operations of the General Conference Committee— 


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(A) in the physical location at which the Committee 

was located on the date of the enactment of this Act; and 

(B) with the organizational structure within the Department of Agriculture in effect as of such date; and 

(2) the funding levels for the National Poultry Improvement Plan for Commercial Poultry (established under part 146 

of title 9, Code of Federal Regulations, or a successor regulation) at the fiscal year 2013 funding levels for the Plan. 

SEC. 12108. SENSE OF CONGRESS REGARDING FERAL SWINE ERADICATION. 

It is the sense of the Congress that— 

(1) the Secretary of Agriculture should recognize the threat 

feral swine pose to the domestic swine population and the entire agriculture industry; and 

(2) feral swine eradication is a high priority that the Secretary should carry out under the authorities of the Animal 

Health Protection Act (7 U.S.C. 8301 et seq.). 

Subtitle B—Socially Disadvantaged Producers and Limited 

Resource Producers 

SEC. 12201. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS AND RANCHERS AND VETERAN FARMERS AND RANCHERS. 

(a) OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED

FARMERS AND RANCHERS AND VETERAN FARMERS AND RANCHERS.— Section 2501 of the Food, Agriculture, Conservation, and Trade Act 

of 1990 (7 U.S.C. 2279) is amended— 

(1) in the section heading, by inserting ‘‘AND VETERAN

FARMERS AND RANCHERS’’ after ‘‘RANCHERS’’; 

(2) in subsection (a)— 

(A) in paragraph (1), in the matter preceding subparagraph (A), by inserting ‘‘and veteran farmers or ranchers’’ 

after ‘‘ranchers’’; 

(B) in paragraph (2)(B)(i), by inserting ‘‘and veteran 

farmers or ranchers’’ after ‘‘ranchers’’; and 

(C) in paragraph (4)— 

(i) in subparagraph (A)— 

(I) in the subparagraph heading, by striking 

‘‘2012’’ and inserting ‘‘2018’’; 

(II) in clause (i), by striking ‘‘and’’ at the end; 

(III) in clause (ii), by striking the period at 

the end and inserting ‘‘; and’’; and 

(IV) by adding at the end the following new 

clause: 

‘‘(iii) $10,000,000 for each of fiscal years 2014 

through 2018.’’; and 

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

‘‘(E) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to carry out this section 

$20,000,000 for each of fiscal years 2014 through 2018.’’; 

(3) in subsection (b)(2), by inserting ‘‘or veteran farmers 

and ranchers’’ after ‘‘socially disadvantaged farmers and ranchers’’; 

(4) in subsection (c)— 


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(A) in paragraph (1)(A), by inserting ‘‘veteran farmers 

or ranchers and’’ before ‘‘members’’; and 

(B) in paragraph (2)(A), by inserting ‘‘veteran farmers 

or ranchers and’’ before ‘‘members’’; and 

(5) in subsection (e)(5)(A)— 

(A) in clause (i), by inserting ‘‘and veteran farmers or 

ranchers’’ after ‘‘ranchers’’; and 

(B) in clause (ii), by inserting ‘‘and veteran farmers or 

ranchers’’ after ‘‘ranchers’’. 

(b) DEFINITION OF VETERAN FARMER OR RANCHER.—Section 

2501(e) of the Food, Agriculture, Conservation, and Trade Act of 

1990 (7 U.S.C. 2279(e)) is amended by adding at the end the following new paragraph: 

‘‘(7) VETERAN FARMER OR RANCHER.—The term ‘veteran 

farmer or rancher’ means a farmer or rancher who has served 

in the Armed Forces (as defined in section 101(10) of title 38 

United States Code) and who— 

‘‘(A) has not operated a farm or ranch; or 

‘‘(B) has operated a farm or ranch for not more than 

10 years.’’. 

SEC. 12202. OFFICE OF ADVOCACY AND OUTREACH. 

Paragraph (3) of section 226B(f) of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6934(f)) is amended 

to read as follows: 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection— 

‘‘(A) such sums as are necessary for each of fiscal 

years 2009 through 2013; and 

‘‘(B) $2,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 12203. SOCIALLY DISADVANTAGED FARMERS AND RANCHERS 

POLICY RESEARCH CENTER. 

Section 2501 of the Food, Agriculture, Conservation, and Trade 

Act of 1990 (7 U.S.C. 2279), as amended by section 12201, is 

amended by adding at the end the following new subsection: 

‘‘(i) SOCIALLY DISADVANTAGED FARMERS AND RANCHERS POLICY

RESEARCH CENTER.—The Secretary shall award a grant to a college 

or university eligible to receive funds under the Act of August 30, 

1890 (7 U.S.C. 321 et seq.), including Tuskegee University, to establish a policy research center to be known as the ‘Socially Disadvantaged Farmers and Ranchers Policy Research Center’ for the 

purpose of developing policy recommendations for the protection 

and promotion of the interests of socially disadvantaged farmers 

and ranchers.’’. 

SEC. 12204. RECEIPT FOR SERVICE OR DENIAL OF SERVICE FROM 

CERTAIN DEPARTMENT OF AGRICULTURE AGENCIES. 

Section 2501A(e) of the Food, Agriculture, Conservation, and 

Trade Act of 1990 (7 U.S.C. 2279–1(e)) is amended by striking 

‘‘and, at the time of the request, also requests a receipt’’. 


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Subtitle C—Other Miscellaneous Provisions 

SEC. 12301. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFETY, AND 

TRAINING OF AGRICULTURAL LABOR FORCE. 

Subsection (d) of section 14204 of the Food, Conservation, and 

Energy Act of 2008 (7 U.S.C. 2008q–1) is amended to read as follows: 

‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this section— 

‘‘(1) such sums as are necessary for each of fiscal years 

2008 through 2013; and 

‘‘(2) $10,000,000 for each of fiscal years 2014 through 

2018.’’. 

SEC. 12302. PROGRAM BENEFIT ELIGIBILITY STATUS FOR PARTICIPANTS IN HIGH PLAINS WATER STUDY. 

Section 2901 of the Food, Conservation, and Energy Act of 

2008 (Public Law 110–246; 122 Stat. 1818) is amended by striking 

‘‘this Act or an amendment made by this Act’’ and inserting ‘‘this 

Act, an amendment made by this Act, the Agricultural Act of 2014, 

or an amendment made by the Agricultural Act of 2014’’. 

SEC. 12303. OFFICE OF TRIBAL RELATIONS. 

Title III of the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 is amended by adding after section 308 (7 U.S.C. 3125a note; Public Law 103–354) the 

following new section: 

‘‘SEC. 309. OFFICE OF TRIBAL RELATIONS. 

‘‘The Secretary shall maintain in the Office of the Secretary an 

Office of Tribal Relations, which shall advise the Secretary on policies related to Indian tribes and carry out such other functions as 

the Secretary considers appropriate.’’. 

SEC. 12304. MILITARY VETERANS AGRICULTURAL LIAISON. 

Subtitle A of the Department of Agriculture Reorganization Act 

of 1994 is amended by inserting after section 218 (7 U.S.C. 6918) 

the following new section: 

‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON. 

‘‘(a) AUTHORIZATION.—The Secretary shall establish in the Department the position of Military Veterans Agricultural Liaison. 

‘‘(b) DUTIES.—The Military Veterans Agricultural Liaison 

shall— 

‘‘(1) provide information to returning veterans about, and 

connect returning veterans with, beginning farmer training 

and agricultural vocational and rehabilitation programs appropriate to the needs and interests of returning veterans, including assisting veterans in using Federal veterans educational 

benefits for purposes relating to beginning a farming or ranching career; 

‘‘(2) provide information to veterans concerning the availability of, and eligibility requirements for, participation in agricultural programs, with particular emphasis on beginning 

farmer and rancher programs; 

‘‘(3) serve as a resource for assisting veteran farmers and 

ranchers, and potential farmers and ranchers, in applying for 

participation in agricultural programs; and 


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‘‘(4) advocate on behalf of veterans in interactions with employees of the Department. 

‘‘(c) CONTRACTS AND COOPERATIVE AGREEMENTS.—For purposes 

of carrying out the duties under subsection (b), the Military Veterans Agricultural Liaison may enter into contracts or cooperative 

agreements with the research centers of the Agricultural Research 

Service, institutions of higher education (as defined in section 101 

of the Higher Education Act of 1965 (20 U.S.C. 1001)), or nonprofit 

organizations for— 

‘‘(1) the conduct of regional research on the profitability of 

small farms; 

‘‘(2) the development of educational materials; 

‘‘(3) the conduct of workshops, courses, and certified vocational training; 

‘‘(4) the conduct of mentoring activities; or 

‘‘(5) the provision of internship opportunities.’’. 

SEC. 12305. NONINSURED CROP ASSISTANCE PROGRAM. 

(a) IN GENERAL.—Section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) is amended— 

(1) in subsection (a)— 

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

‘‘(1) IN GENERAL.— ‘‘(A) COVERAGES.—In the case of an eligible crop described in paragraph (2), the Secretary of Agriculture shall 

operate a noninsured crop disaster assistance program to 

provide coverages based on individual yields (other than 

for value-loss crops) equivalent to— 

‘‘(i) catastrophic risk protection available under 

section 508(b) of the Federal Crop Insurance Act (7 

U.S.C. 1508(b)); or 

‘‘(ii) except in the case of crops and grasses used 

for grazing, additional coverage available under subsections (c) and (h) of section 508 of that Act (7 U.S.C. 

1508) that does not exceed 65 percent, as described in 

subsection (l). 

‘‘(B) ADMINISTRATION.—The Secretary shall carry out 

this section through the Farm Service Agency (referred to 

in this section as the ‘Agency’).’’; and 

(B) in paragraph (2)— 

(i) in subparagraph (A)— 

(I) in clause (i), by striking ‘‘and’’ after the 

semicolon at the end; 

(II) by redesignating clause (ii) as clause (iii); 

and 

(III) by inserting after clause (i) the following: 

‘‘(ii) for which additional coverage under 

subsections (c) and (h) of section 508 of that 

Act (7 U.S.C. 1508) is not available; and’’; and 

(ii) in subparagraph (B), by striking ‘‘and industrial crops’’ and inserting ‘‘sweet sorghum, biomass 

sorghum, and industrial crops (including those grown 

expressly for the purpose of producing a feedstock for 

renewable biofuel, renewable electricity, or biobased 

products)’’; 


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(2) in subsection (i)(2), by striking ‘‘$100,000’’ and inserting ‘‘$125,000’’; 

(3) in subsection (k)(2), by striking ‘‘limited resource farmer’’ and inserting ‘‘limited resource, beginning, or socially disadvantaged farmer’’; and 

(4) by adding at the end the following: 

‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL COVERAGE.— ‘‘(1) IN GENERAL.—The Secretary shall make available noninsured assistance under this subsection (other than for crops 

and grasses used for grazing) at a payment amount that is 

equivalent to an indemnity for additional coverage under subsections (c) and (h) of section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) and equal to the product obtained by 

multiplying— 

‘‘(A) the amount that— 

‘‘(i) the additional coverage yield, which shall be 

equal to the product obtained by multiplying— 

‘‘(I) an amount not less than 50 percent nor 

more than 65 percent, as elected by the producer 

and specified in 5-percent increments; and 

‘‘(II) the approved yield for the crop, as determined by the Secretary; exceeds 

‘‘(ii) the actual yield; 

‘‘(B) 100 percent of the average market price for the 

crop, as determined by the Secretary; and 

‘‘(C) a payment rate for the type of crop, as determined 

by the Secretary, that reflects— 

‘‘(i) in the case of a crop that is produced with a 

significant and variable harvesting expense, the decreasing cost incurred in the production cycle for the 

crop that is, as applicable— 

‘‘(I) harvested; 

‘‘(II) planted but not harvested; or 

‘‘(III) prevented from being planted because of 

drought, flood, or other natural disaster, as determined by the Secretary; or 

‘‘(ii) in the case of a crop that is produced without 

a significant and variable harvesting expense, such 

rate as shall be determined by the Secretary. 

‘‘(2) SERVICE FEE AND PREMIUM.—To be eligible to receive 

a payment under this subsection, a producer shall pay— 

‘‘(A) the service fee required by subsection (k); and 

‘‘(B) the lesser of— 

‘‘(i) the sum of the premiums for each eligible 

crop, with the premium for each eligible crop obtained 

by multiplying— 

‘‘(I) the number of acres devoted to the eligible 

crop; 

‘‘(II) the yield, as determined by the Secretary 

under subsection (e); 

‘‘(III) the coverage level elected by the producer; 

‘‘(IV) the average market price, as determined 

by the Secretary; and 

‘‘(V) a 5.25-percent premium fee; or 


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‘‘(ii) the product obtained by multiplying— 

‘‘(I) a 5.25-percent premium fee; and 

‘‘(II) the applicable payment limit. 

‘‘(3) ADDITIONAL AVAILABILITY.— ‘‘(A) IN GENERAL.—As soon as practicable after October 

1, 2013, the Secretary shall make assistance available to 

producers of an otherwise eligible crop described in subsection (a)(2) that suffered losses— 

‘‘(i) to a 2012 annual fruit crop grown on a bush 

or tree; and 

‘‘(ii) in a county covered by a declaration by the 

Secretary of a natural disaster for production losses 

due to a freeze or frost. 

‘‘(B) ASSISTANCE.—The Secretary shall make assistance available under subparagraph (A) in an amount 

equivalent to assistance available under paragraph (1), 

less any fees not previously paid under paragraph (2). 

‘‘(4) LIMITED RESOURCE, BEGINNING, AND SOCIALLY DIS- ADVANTAGED FARMERS.—The coverage made available under 

this subsection shall be available to limited resource, beginning, and socially disadvantaged farmers, as determined by the 

Secretary, in exchange for a premium that is 50 percent of the 

premium determined under paragraph (2). 

‘‘(5) EFFECTIVE DATE.—Except as provided in paragraph 

(3)(A), additional coverage under this subsection shall be available for each of the 2015 through 2018 crop years.’’. 

(b) PROHIBITION ON CATASTROPHIC RISK PROTECTION.—Section 

508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is 

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

‘‘(1) COVERAGE AVAILABILITY.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), the Corporation shall offer a catastrophic risk 

protection plan to indemnify producers for crop loss due to 

loss of yield or prevented planting, if provided by the Corporation, when the producer is unable, because of drought, 

flood, or other natural disaster (as determined by the Secretary), to plant other crops for harvest on the acreage for 

the crop year. 

‘‘(B) EXCEPTION.—Coverage described in subparagraph 

(A) shall not be available for crops and grasses used for 

grazing.’’. 

SEC. 12306. ACER ACCESS AND DEVELOPMENT PROGRAM. 

(a) GRANTS AUTHORIZED.—The Secretary of Agriculture may 

make competitive grants to States, tribal governments, and research institutions to support the efforts of such States, tribal governments, and research institutions to promote the domestic maple 

syrup industry through the following activities: 

(1) Promotion of research and education related to maple 

syrup production. 

(2) Promotion of natural resource sustainability in the 

maple syrup industry. 

(3) Market promotion for maple syrup and maple-sap products. 

(4) Encouragement of owners and operators of privately 

held land containing species of trees in the genus Acer— 


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(A) to initiate or expand maple-sugaring activities on 

the land; or 

(B) to voluntarily make the land available, including 

by lease or other means, for access by the public for maplesugaring activities. 

(b) APPLICATION.—In submitting an application for a competitive grant under this section, a State, tribal government, or research institution shall include— 

(1) a description of the activities to be supported using the 

grant funds; 

(2) a description of the benefits that the State, tribal government, or research institution intends to achieve as a result 

of engaging in such activities; and 

(3) an estimate of the increase in maple-sugaring activities 

or maple syrup production that the State, tribal government, 

or research institution anticipates will occur as a result of engaging in such activities. 

(c) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed so as to preempt a State or tribal government law, including a State or tribal government liability law. 

(d) DEFINITION OF MAPLE-SUGARING.—In this section, the term 

‘‘maple-sugaring’’ means the collection of sap from any species of 

tree in the genus Acer for the purpose of boiling to produce food. 

(e) REGULATIONS.—The Secretary of Agriculture shall promulgate such regulations as are necessary to carry out this section. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to carry out this section $20,000,000 for each of 

fiscal years 2014 through 2018. 

SEC. 12307. SCIENCE ADVISORY BOARD. 

Section 8 of the Environmental Research, Development, and 

Demonstration Authorization Act of 1978 (42 U.S.C. 4365) is 

amended— 

(1) by striking subsection (e) and inserting the following: 

‘‘(e) COMMITTEES.— 

‘‘(1) MEMBER COMMITTEES.— 

‘‘(A) IN GENERAL.—The Board is authorized to establish such member committees and investigative panels as 

the Administrator and the Board determine to be necessary to carry out this section. 

‘‘(B) CHAIRMANSHIP.—Each member committee or investigative panel established under this subsection shall 

be chaired by a member of the Board. 

‘‘(2) AGRICULTURE-RELATED COMMITTEES.— 

‘‘(A) IN GENERAL.—The Administrator and the Board— 

‘‘(i) shall establish a standing agriculture-related 

committee; and 

‘‘(ii) may establish such additional agriculture-related committees and investigative panels as the Administrator and the Board determines to be necessary 

to carry out the duties under subparagraph (C). 

‘‘(B) MEMBERSHIP.—The standing committee and each 

agriculture-related committee or investigative panel established under subparagraph (A) shall be— 

‘‘(i) composed of— 


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‘‘(I) such quantity of members as the Administrator and the Board determines to be necessary; 

and 

‘‘(II) individuals who are not members of the 

Board on the date of appointment to the committee or investigative panel; and 

‘‘(ii) appointed by the Administrator and the 

Board, in consultation with the Secretary of Agriculture. 

‘‘(C) DUTIES.—The agriculture-related standing committee and each additional committee and investigative 

panel established under subparagraph (A) shall provide 

scientific and technical advice to the Board relating to 

matters referred to the Board that the Administrator and 

the Board determines, in consultation with the Secretary 

of Agriculture, to have a significant direct impact on enterprises that are engaged in the business of the production 

of food and fiber, ranching and raising livestock, aquaculture, and all other farming- and agriculture-related industries.’’; and 

(2) by adding at the end the following: 

‘‘(h) PUBLIC PARTICIPATION AND TRANSPARENCY.—The Board 

shall make every effort, consistent with applicable law, including 

section 552 of title 5, United States Code (commonly known as the 

‘Freedom of Information Act’) and section 552a of title 5, United 

States Code (commonly known as the ‘Privacy Act’), to maximize 

public participation and transparency, including making the scientific and technical advice of the Board and any committees or investigative panels of the Board publically available in electronic 

form on the website of the Environmental Protection Agency. 

‘‘(i) REPORT TO CONGRESS.—The Administrator shall annually 

report to the Committees on Environment and Public Works and 

Agriculture of the Senate and the Committees on Transportation 

and Infrastructure, Energy and Commerce, and Agriculture of the 

House of Representatives regarding the membership and activities 

of the standing agriculture-related committee established pursuant 

to subsection (e)(2)(A)(i).’’. 

SEC. 12308. AMENDMENTS TO ANIMAL WELFARE ACT. 

(a) LICENSING OF DEALERS AND EXHIBITORS.— (1) DEFINITION.—Section 2 of the Animal Welfare Act (7 

U.S.C. 2132) is amended— 

(A) in the matter preceding subsection (a), by striking 

‘‘When used in this Act—’’ and inserting ‘‘In this Act:’’; 

(B) in subsection (f), by striking ‘‘(2) any dog for hunting, security, or breeding purposes’’ and all that follows 

through the semicolon at the end and inserting ‘‘(2) any 

dog for hunting, security, or breeding purposes. Such term 

does not include a retail pet store (other than a retail pet 

store which sells any animals to a research facility, an exhibitor, or another dealer).’’; 

(C) in each of subsections (a), (b), (d), (e), (g), (h), (i), 

(j), (k), and (m), by striking the semicolon at the end and 

inserting a period; and 

(D) in subsection (n), by striking ‘‘; and’’ at the end 

and inserting a period. 


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(2) LICENSING.—Section 3 of the Animal Welfare Act (7 

U.S.C. 2133) is amended by striking ‘‘: Provided, however, That 

any retail pet store’’ and all that follows through ‘‘under this 

Act.’’ and inserting the following ‘‘: Provided, however, That a 

dealer or exhibitor shall not be required to obtain a license as 

a dealer or exhibitor under this Act if the size of the business 

is determined by the Secretary to be de minimis.’’. 

(b) PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING

AN INDIVIDUAL WHO HAS NOT ATTAINED THE AGE OF 16 TO ATTEND

AN ANIMAL FIGHT; ENFORCEMENT OF ANIMAL FIGHTING PROVISIONS.— 

(1) PROHIBITION ON ATTENDING AN ANIMAL FIGHT OR CAUSING AN INDIVIDUAL WHO HAS NOT ATTAINED THE AGE OF 16 TO

ATTEND AN ANIMAL FIGHT.—Section 26(a) of the Animal Welfare Act (7 U.S.C. 2156(a)) is amended— 

(A) in the heading, by striking ‘‘SPONSORING OR EXHIBITING AN ANIMAL IN’’ and inserting ‘‘SPONSORING OR EXHIBITING AN ANIMAL IN, ATTENDING, OR CAUSING AN INDIVIDUAL WHO HAS NOT ATTAINED THE AGE OF 16 TO ATTEND,’’; and 

(B) in paragraph (1)— 

(i) in the heading, by striking ‘‘IN GENERAL’’ and 

inserting ‘‘SPONSORING OR EXHIBITING’’; and 

(ii) by striking ‘‘paragraph (2)’’ and inserting 

‘‘paragraph (3)’’; 

(iii) by redesignating paragraph (2) as paragraph 

(3); and 

(iv) by inserting after paragraph (1) the following: 

‘‘(2) ATTENDING OR CAUSING AN INDIVIDUAL WHO HAS NOT

ATTAINED THE AGE OF 16 TO ATTEND.—It shall be unlawful for 

any person to— 

‘‘(A) knowingly attend an animal fighting venture; or 

‘‘(B) knowingly cause an individual who has not attained the age of 16 to attend an animal fighting venture.’’. 

(2) ENFORCEMENT OF ANIMAL FIGHTING PROHIBITIONS.— 

Section 49 of title 18, United States Code, is amended— 

(A) by striking ‘‘Whoever’’ and inserting ‘‘(a) IN GENERAL.—Whoever’’; 

(B) in subsection (a), as designated by subparagraph 

(A), by striking ‘‘subsection (a),’’ and inserting ‘‘subsection 

(a)(1),’’; and 

(C) by adding at the end the following: 

‘‘(b) ATTENDING AN ANIMAL FIGHTING VENTURE.—Whoever violates subsection (a)(2)(A) of section 26 of the Animal Welfare Act 

(7 U.S.C. 2156) shall be fined under this title, imprisoned for not 

more than 1 year, or both, for each violation. 

‘‘(c) CAUSING AN INDIVIDUAL WHO HAS NOT ATTAINED THE AGE

OF 16 TO ATTEND AN ANIMAL FIGHTING VENTURE.—Whoever violates subsection (a)(2)(B) of section 26 (7 U.S.C. 2156) of the Animal Welfare Act shall be fined under this title, imprisoned for not 

more than 3 years, or both, for each violation.’’. 


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SEC. 12309. PRODUCE REPRESENTED AS GROWN IN THE UNITED 

STATES WHEN IT IS NOT IN FACT GROWN IN THE UNITED 

STATES. 

(a) TECHNICAL ASSISTANCE TO CBP.—The Secretary of Agriculture shall make available to U.S. Customs and Border Protection technical assistance related to the identification of produce 

represented as grown in the United States when it is not in fact 

grown in the United States. 

(b) REPORT TO CONGRESS.—The Secretary shall submit to the 

Committee on Agriculture of the House of Representatives and the 

Committee on Agriculture, Nutrition, and Forestry of the Senate a 

report on produce represented as grown in the United States when 

it is not in fact grown in the United States. 

SEC. 12310. REPORT ON WATER SHARING. 

Not later than 120 days after the date of the enactment of this 

Act and annually thereafter, the Secretary of State shall submit to 

Congress a report on efforts by Mexico to meet its treaty deliveries 

of water to the Rio Grande in accordance with the Treaty between 

the United States and Mexico Respecting Utilization of waters of 

the Colorado and Tijuana Rivers and of the Rio Grande (done at 

Washington, February 3, 1944). 

SEC. 12311. SCIENTIFIC AND ECONOMIC ANALYSIS OF THE FDA FOOD 

SAFETY MODERNIZATION ACT. 

(a) IN GENERAL.—When publishing a final rule with respect to 

‘‘Standards for the Growing, Harvesting, Packing, and Holding of 

Produce for Human Consumption’’ published by the Department of 

Health and Human Services on January 16, 2013 (78 Fed. Reg. 

3504), the Secretary of Health and Human Services (referred to in 

this section as the ‘‘Secretary’’) shall ensure that the final rule (referred to in this section as the ‘‘final rule’’) includes the following 

information: 

(1) An analysis of the scientific information used to promulgate the final rule, taking into consideration any information about farming and ranching operations of a variety of 

sizes, with regional differences, and that have a diversity of 

production practices and methods. 

(2) An analysis of the economic impact of the final rule. 

(3) A plan to systematically— 

(A) evaluate the impact of the final rule on farming 

and ranching operations; and 

(B) develop an ongoing process to evaluate and respond to business concerns. 

(b) REPORT.—Not later than 1 year after the date on which the 

Secretary promulgates the final rule referred to in subsection (a), 

the Comptroller General of the United States shall submit to the 

Committee on Agriculture, Nutrition, and Forestry and the Committee on Health, Education, and Labor of the Senate and the 

Committee on Agriculture and the Committee on Energy and Commerce of the House of Representatives a report on the effectiveness 

of the ongoing evaluation and response process referred to in subsection (a)(3)(B). Not later than one year after the date on which 

such report is submitted, the Comptroller General of the United 

States shall submit to such committees an updated report on such 

process. 


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SEC. 12312. PAYMENT IN LIEU OF TAXES. 

Section 6906 of title 31, United States Code, is amended, in the 

matter preceding paragraph (1), by striking ‘‘2013’’ and inserting 

‘‘2014’’. 

SEC. 12313. SILVICULTURAL ACTIVITIES. 

Section 402(l) of the Federal Water Pollution Control Act (33 

U.S.C. 1342(l)) is amended by adding at the end the following: 

‘‘(3) SILVICULTURAL ACTIVITIES.— 

‘‘(A) NPDES PERMIT REQUIREMENTS FOR SILVICULTURAL ACTIVITIES.—The Administrator shall not require a 

permit under this section nor directly or indirectly require 

any State to require a permit under this section for a discharge from runoff resulting from the conduct of the following silviculture activities conducted in accordance with 

standard industry practice: nursery operations, site preparation, reforestation and subsequent cultural treatment, 

thinning, prescribed burning, pest and fire control, harvesting operations, surface drainage, or road construction 

and maintenance. 

‘‘(B) OTHER REQUIREMENTS.—Nothing in this paragraph exempts a discharge from silvicultural activity from 

any permitting requirement under section 404, existing 

permitting requirements under section 402, or from any 

other federal law. 

‘‘(C) The authorization provided in Section 505(a) does 

not apply to any non-permitting program established 

under 402(p)(6) for the silviculture activities listed in 

402(l)(3)(A), or to any other limitations that might be 

deemed to apply to the silviculture activities listed in 

402(l)(3)(A).’’. 

SEC. 12314. PIMA AGRICULTURE COTTON TRUST FUND. 

(a) ESTABLISHMENT OF TRUST FUND.—There is established in 

the Treasury of the United States a trust fund to be known as the 

‘‘Pima Agriculture Cotton Trust Fund’’ (in this section referred to 

as the ‘‘Trust Fund’’), consisting of such amounts as may be transferred to the Trust Fund pursuant to subsection (h), and to be used 

for the purpose of reducing the injury to domestic manufacturers 

resulting from tariffs on cotton fabric that are higher than tariffs 

on certain apparel articles made of cotton fabric. 

(b) DISTRIBUTION OF FUNDS.—From amounts in the Trust 

Fund, the Secretary shall make payments annually beginning in 

calendar year 2014 for calendar years 2014 through 2018 as follows: 

(1) Twenty-five percent of the amounts in the Trust Fund 

shall be paid to one or more nationally recognized associations 

established for the promotion of pima cotton for use in textile 

and apparel goods. 

(2) Twenty-five percent of the amounts in the Trust Fund 

shall be paid to yarn spinners of pima cotton that produce ring 

spun cotton yarns in the United States, to be allocated to each 

spinner in an amount that bears the same ratio as— 

(A) the spinner’s production of ring spun cotton yarns, 

measuring less than 83.33 decitex (exceeding 120 metric 

number) from pima cotton in single and plied form during 


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calendar year 2013 (as evidenced by an affidavit provided 

by the spinner that meets the requirements of subsection 

(c)), bears to— 

(B) the production of the yarns described in subparagraph (A) during calendar year 2013 for all spinners who 

qualify under this paragraph. 

(3) Fifty percent of the amounts in the Trust Fund shall 

be paid to manufacturers who cut and sew cotton shirts in the 

United States who certify that they used imported cotton fabric 

during calendar year 2013, to be allocated to each such manufacturer in an amount that bears the same ratio as— 

(A) the dollar value (excluding duty, shipping, and related costs) of imported woven cotton shirting fabric of 80s 

or higher count and 2-ply in warp purchased by the manufacturer during calendar year 2013 (as evidenced by an affidavit provided by the manufacturer that meets the requirements of subsection (d)) used in the manufacturing of 

men’s and boys’ cotton shirts, bears to— 

(B) the dollar value (excluding duty, shipping, and related costs) of the fabric described in subparagraph (A) 

purchased during calendar year 2013 by all manufacturers 

who qualify under this paragraph. 

(c) AFFIDAVIT OF YARN SPINNERS.—The affidavit required by 

subsection (b)(2)(A) is a notarized affidavit provided annually by an 

officer of a producer of ring spun yarns that affirms— 

(1) that the producer used pima cotton during the year in 

which the affidavit is filed and during calendar year 2013 to 

produce ring spun cotton yarns in the United States, measuring less than 83.33 decitex (exceeding 120 metric number), 

in single and plied form; 

(2) the quantity, measured in pounds, of ring spun cotton 

yarns, measuring less than 83.33 decitex (exceeding 120 metric 

number), in single and plied form during calendar year 2013; 

and 

(3) that the producer maintains supporting documentation 

showing the quantity of such yarns produced, and evidencing 

the yarns as ring spun cotton yarns, measuring less than 83.33 

decitex (exceeding 120 metric number), in single and plied form 

during calendar year 2013. 

(d) AFFIDAVIT OF SHIRTING MANUFACTURERS.— 

(1) IN GENERAL.—The affidavit required by subsection 

(b)(3)(A) is a notarized affidavit provided annually by an officer 

of a manufacturer of men’s and boys’ shirts that affirms— 

(A) that the manufacturer used imported cotton fabric 

during the year in which the affidavit is filed and during 

calendar year 2013, to cut and sew men’s and boys’ woven 

cotton shirts in the United States; 

(B) the dollar value of imported woven cotton shirting 

fabric of 80s or higher count and 2-ply in warp purchased 

by the manufacturer during calendar year 2013; 

(C) that the manufacturer maintains invoices along 

with other supporting documentation (such as price lists 

and other technical descriptions of the fabric qualities) 

showing the dollar value of such fabric purchased, the date 


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of purchase, and evidencing the fabric as woven cotton fabric of 80s or higher count and 2-ply in warp; and 

(D) that the fabric was suitable for use in the manufacturing of men’s and boys’ cotton shirts. 

(2) DATE OF PURCHASE.—For purposes of the affidavit 

under paragraph (1), the date of purchase shall be the invoice 

date, and the dollar value shall be determined excluding duty, 

shipping, and related costs. 

(e) FILING DEADLINE FOR AFFIDAVITS.—Any person required to 

provide an affidavit under this section shall file the affidavit with 

the Secretary or as directed by the Secretary— 

(1) in the case of an affidavit required for calendar year 

2014, not later than 60 days after the date of the enactment 

of this Act; and 

(2) in the case of an affidavit required for any of calendar 

years 2015 through 2018, not later than March 15 of that calendar year. 

(f) TIMING OF DISTRIBUTIONS.—The Secretary shall make a 

payment under paragraph (2) or (3) of subsection (b)— 

(1) for calendar year 2014— 

(A) not later than the date that is 30 days after the 

filing of the affidavit required with respect to that payment; or 

(B) if the Secretary is unable to make the payment by 

the date described in subparagraph (A), as soon as practicable thereafter; and 

(2) for calendar years 2015 through 2018, not later than 

the date that is 30 days after the filing of the affidavit required 

with respect to that payment. 

(g) MEMORANDUM OF UNDERSTANDING.—The Secretary and the 

Commissioner responsible for U.S. Customs and Border Protection 

shall, as soon as practicable after the date of the enactment of this 

Act, negotiate a memorandum of understanding to establish procedures pursuant to which the Commissioner will assist the Secretary in carrying out the provisions of this section. 

(h) FUNDING.—Of the funds of the Commodity Credit Corpora- tion, the Secretary shall transfer to the Trust Fund $16,000,000 for 

each of calendar years 2014 through 2018, to remain available 

until expended. 

SEC. 12315. AGRICULTURE WOOL APPAREL MANUFACTURERS TRUST 

FUND. 

(a) ESTABLISHMENT OF TRUST FUND.—There is established in 

the Treasury of the United States a trust fund to be known as the 

‘‘Agriculture Wool Apparel Manufacturers Trust Fund’’ (in this section referred to as the ‘‘Trust Fund’’), consisting of such amounts 

as may be transferred to the Trust Fund pursuant to subsection (f), 

and to be used for the purpose of reducing the injury to domestic 

manufacturers resulting from tariffs on wool fabric that are higher 

than tariffs on certain apparel articles made of wool fabric. 

(b) DISTRIBUTION OF FUNDS.— 

(1) IN GENERAL.—From amounts in the Trust Fund, the 

Secretary may make payments annually beginning in calendar 

year 2014 for calendar years 2010 through 2019 as follows: 

(A) To each eligible manufacturer under paragraph (3) 

of section 4002(c) of the Wool Suit and Textile Trade ExVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00357 Fmt 6659 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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tension Act of 2004 (Public Law 108–429; 118 Stat. 2600), 

as amended by section 1633(c) of the Miscellaneous Trade 

and Technical Corrections Act of 2006 (Public Law 109– 

280; 120 Stat. 1166) and section 325(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (division C of Public Law 110–343; 122 Stat. 3875), and any 

successor-in-interest to such a manufacturer as provided 

for under paragraph (4) of such section 4002(c), that submits an affidavit in accordance with paragraph (2) for the 

year of the payment— 

(i) for calendar years 2010 through 2015, payments that, when added to any other payments made 

to the manufacturer or successor-in-interest under 

paragraph (3) of such section 4002(c) in such calendar 

years, equal the total amount of payments authorized 

to be provided to the manufacturer or successor-in-interest under that paragraph, or the provisions of this 

section, in such calendar years; and 

(ii) for calendar years 2016 through 2019, payments in amounts authorized under that paragraph. 

(B) To each eligible manufacturer under paragraph (6) 

of such section 4002(c)— 

(i) for calendar years 2010 through 2014, payments that, when added to any other payments made 

to eligible manufacturers under that paragraph in 

such calendar years, equal the total amount of payments authorized to be provided to the manufacturer 

under that paragraph, or the provisions of this section, 

in such calendar years; and 

(ii) for calendar years 2015 through 2019, payments in amounts authorized under that paragraph. 

(2) SUBMISSION OF AFFIDAVITS.—An affidavit required by 

paragraph (1)(A) shall be submitted— 

(A) in each of calendar years 2010 through 2015, to 

the Commissioner responsible for U.S. Customs and Border Protection not later than April 15; and 

(B) in each of calendar years 2016 through 2019, to 

the Secretary, or as directed by the Secretary, and not 

later than March 1. 

(c) PAYMENT OF AMOUNTS.—The Secretary shall make payments to eligible manufacturers and successors-in-interest described in paragraphs (1) and (2) of subsection (b)— 

(1) for calendar years 2010 through 2014, not later than 30 

days after the transfer of amounts from the Commodity Credit 

Corporation to the Trust Fund under subsection (f); and 

(2) for calendar years 2015 through 2019, not later than 

April 15 of the year of the payment. 

(d) MEMORANDA OF UNDERSTANDING.—The Secretary shall, as 

soon as practicable after the date of the enactment of this Act, negotiate memoranda of understanding with the Commissioner responsible for U.S. Customs and Border Protection and the Secretary of Commerce to establish procedures pursuant to which the 

Commissioner and the Secretary of Commerce will assist in carrying out the provisions of this section. 


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(e) INCREASE IN PAYMENTS IN THE EVENT OF EXPIRATION OF

DUTY SUSPENSIONS.— (1) IN GENERAL.—In any calendar year in which the suspension of duty on wool fabrics provided for under headings 

9902.51.11, 9902.51.13, 9902.51.14, 9902.51.15, and 9902.51.16 

of the Harmonized Tariff Schedule of the United States are not 

in effect, the amount of any payment described in subsection 

(b)(1) to a manufacturer or successor-in-interest shall be increased by an amount the Secretary, after consultation with 

the Secretary of Commerce, determines is equal to the amount 

the manufacturer or successor-in-interest would have saved 

during the calendar year of the payment if the suspension of 

duty on wool fabrics were in effect. 

(2) NO APPEAL OF DETERMINATIONS.—A determination of 

the Secretary under this subsection shall be final and not subject to appeal or protest. 

(f) FUNDING.— (1) IN GENERAL.—Of the funds of the Commodity Credit 

Corporation, the Secretary shall transfer to the Trust Fund for 

each of calendar years 2014 through 2019 an amount equal to 

the lesser of— 

(A) the amount the Secretary determines to be necessary to make payments required by this section in that 

calendar year; or (B) $30,000,000. 

(2) AVAILABILITY.—Amounts transferred to the Trust Fund 

under paragraph (1) shall remain available until expended. 

SEC. 12316. WOOL RESEARCH AND PROMOTION. 

(a) IN GENERAL.—Of the funds of the Commodity Credit Corporation, the Secretary shall use to provide grants described in section 506(d) of the Trade and Development Act of 2000 (7 U.S.C. 

7101 note) $2,250,000 for each of calendar years 2015 through 

2019, to remain available until expended. 

(b) AUTHORIZATION TO DISTRIBUTE UNEXPENDED BALANCE.—In 

addition to funds made available under subsection (a) and notwithstanding subsection (f) of section 506 of the Trade and Development Act of 2000 (7 U.S.C. 7101 note), the Secretary may use any 

unexpended balances remaining in the Wool Research, Development, and Promotion Trust Fund established under that section as 

of December 31, 2014, to provide grants described in subsection (d) 

of that section. 

Subtitle D—Oilheat Efficiency, Renewable Fuel Research 

and Jobs Training 

SEC. 12401. SHORT TITLE. 

This subtitle may be cited as the ‘‘Oilheat Efficiency, Renewable Fuel Research and Jobs Training Act of 2014’’. 

SEC. 12402. FINDINGS AND PURPOSES. 

Section 702 of the National Oilheat Research Alliance Act of 

2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended— 

(1) in paragraph (4), by striking ‘‘and’’ after the semicolon 

at the end; 

(2) by striking the period at the end and inserting a semicolon; and 


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(3) by adding at the end the following: 

‘‘(6) consumers of oilheat fuel are provided service by thousands of small businesses that are unable to individually develop training programs to facilitate the entry of new and 

qualified workers into the oilheat fuel industry; 

‘‘(7) small businesses and trained employees are in an 

ideal position— 

‘‘(A) to provide information to consumers about the 

benefits of improved efficiency; and 

‘‘(B) to encourage consumers to value efficiency in energy choices and assist individuals in conserving energy; 

‘‘(8) additional research is necessary— 

‘‘(A) to improve oilheat fuel equipment; and 

‘‘(B) to develop domestic renewable resources that can 

be used to safely and affordably heat homes; 

‘‘(9) since there are no Federal resources available to assist 

the oilheat fuel industry, it is necessary and appropriate to develop a self-funded program dedicated— 

‘‘(A) to improving efficiency in customer homes; 

‘‘(B) to assist individuals to gain employment in the 

oilheat fuel industry; and 

‘‘(C) to develop domestic renewable resources; 

‘‘(10) both consumers of oilheat fuel and retailers would 

benefit from the self-funded program; and 

‘‘(11) the oilheat fuel industry is committed to providing 

appropriate funding necessary to carry out the purposes of this 

title without passing additional costs on to residential consumers.’’. 

SEC. 12403. DEFINITIONS. 

(a) IN GENERAL.—Section 703 of the National Oilheat Research 

Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended— 

(1) by redesignating paragraphs (3) through (15) as paragraphs (4) through (16), respectively; 

(2) by inserting after paragraph (2) the following: 

‘‘(3) COST-EFFECTIVE.—The term ‘cost-effective’, with respect to a program or activity carried out under section 

707(f)(4), means that the program or activity meets a total resource cost test under which— 

‘‘(A) the net present value of economic benefits over 

the life of the program or activity, including avoided supply and delivery costs and deferred or avoided investments; is greater than 

‘‘(B) the net present value of the economic costs over 

the life of the program or activity, including program costs 

and incremental costs borne by the energy consumer.’’; and 

(3) by striking paragraph (8) (as redesignated in paragraph 

(1)) and inserting the following: 

‘‘(8) OILHEAT FUEL.—The term ‘oilheat fuel’ means fuel 

that— 

‘‘(A) is— 

‘‘(i) No. 1 distillate; 

‘‘(ii) No. 2 dyed distillate; 

‘‘(iii) a liquid blended with No. 1 distillate or No. 

2 dyed distillate; or 


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‘‘(iv) a biobased liquid; and 

‘‘(B) is used as a fuel for nonindustrial commercial or 

residential space or hot water heating.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) The National Oilheat Research Alliance Act of 2000 (42 

U.S.C. 6201 note; Public Law 106–469) is amended by striking 

‘‘oilheat’’ each place it appears and inserting ‘‘oilheat fuel’’. 

(2) Section 704(d) of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended in the subsection heading by striking ‘‘OILHEAT’’ and 

inserting ‘‘OILHEAT FUEL’’. 

(3) Section 706(c)(2) of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended in the paragraph heading by striking ‘‘OILHEAT’’ and 

inserting ‘‘OILHEAT FUEL’’. 

(4) Section 707(c) of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended in the subsection heading by striking ‘‘OILHEAT’’ and 

inserting ‘‘OILHEAT FUEL’’. 

SEC. 12404. MEMBERSHIP. 

(a) SELECTION.—Section 705 of the National Oilheat Research 

Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended by striking subsection (a) and inserting the following: 

‘‘(a) SELECTION.— 

‘‘(1) LIST.— 

‘‘(A) IN GENERAL.—The Alliance shall provide to the 

Secretary a list of qualified nominees for membership in 

the Alliance. 

‘‘(B) REQUIREMENT.—Except as provided in subsection 

(c)(1)(C), members of the Alliance shall be representatives 

of the oilheat fuel industry in a State, selected from a list 

of nominees submitted by the qualified State association in 

the State. 

‘‘(2) VACANCIES.—A vacancy in the Alliance shall be filled 

in the same manner as the original selection. 

‘‘(3) SECRETARIAL ACTION.— 

‘‘(A) IN GENERAL.—The Secretary shall have 60 days to 

review nominees provided under paragraph (1). 

‘‘(B) FAILURE TO ACT.—If the Secretary takes no action 

during the 60-day period described in subparagraph (A), 

the nominees shall be considered to be members of the Alliance.’’. 

(b) REPRESENTATION.—Section 705(b) of the National Oilheat 

Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 

106–469) is amended in the matter preceding paragraph (1) by 

striking ‘‘qualified industry organization’’ and inserting ‘‘Alliance’’. 

(c) NUMBER OF MEMBERS.—Section 705(c) of the National 

Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public 

Law 106–469) is amended— 

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

‘‘(1) IN GENERAL.—The Alliance shall be composed of the 

following members: 

‘‘(A) 1 member representing each State participating 

in the Alliance. 


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‘‘(B) 5 representatives of retail marketers, of whom 1 

shall be selected by each of the qualified State associations 

of the 5 States with the highest volume of annual oilheat 

fuel sales. 

‘‘(C) 5 additional representatives of retail marketers. 

‘‘(D) 21 representatives of wholesale distributors. 

‘‘(E) 6 public members, who shall be representatives of 

significant users of oilheat fuel, the oilheat fuel research 

community, State energy officials, or other groups with expertise in oilheat fuel, including consumer and low-income 

advocacy groups.’’; and 

(2) in paragraph (2), by striking ‘‘the qualified industry organization or’’. 

SEC. 12405. FUNCTIONS. 

(a) RENEWABLE FUEL RESEARCH.—Section 706(a)(3)(B)(i)(I) of 

the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 

note; Public Law 106–469) is amended by inserting before the semicolon at the end the following: ‘‘, including research to develop renewable fuels and to examine the compatibility of different renewable fuels with oilheat fuel utilization equipment, with priority 

given to research on the development and use of advanced 

biofuels’’. 

(b) BIENNIAL BUDGETS.—Section 706(e) of the National Oilheat 

Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 

106–469) is amended— 

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

‘‘(1) PUBLICATION OF PROPOSED BUDGET.—Not later than 

August 1, 2014, and every 2 years thereafter, the Alliance 

shall, in consultation with the Secretary, develop and publish 

for public review and comment a proposed biennial budget for 

the next 2 calendar years, including the probable operating 

and planning costs of all programs, projects, and contracts and 

other agreements.’’; and 

(2) by striking paragraph (4) and inserting the following: 

‘‘(4) IMPLEMENTATION.— 

‘‘(A) IN GENERAL.—The Alliance shall not implement a 

proposed budget until the expiration of 60 days after submitting the proposed budget to the Secretary. 

‘‘(B) RECOMMENDATIONS FOR CHANGES BY SECRETARY.— 

‘‘(i) IN GENERAL.—The Secretary may recommend 

to the Alliance changes to the budget programs and 

activities of the Alliance that the Secretary considers 

appropriate. 

‘‘(ii) RESPONSE BY ALLIANCE.—Not later than 30 

days after the receipt of any recommendations made 

under clause (i), the Alliance shall submit to the Secretary a final budget for the next 2 calendar years 

that incorporates or includes a description of the response of the Alliance to any changes recommended 

under clause (i).’’. 


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SEC. 12406. ASSESSMENTS. 

(a) IN GENERAL.—Section 707 of the National Oilheat Research 

Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is 

amended— 

(1) by striking subsection (a) and inserting the following: 

‘‘(a) RATE.—The assessment rate shall be equal to 2⁄10 of 1 cent 

per gallon of oilheat fuel.’’; and 

(2) in subsection (b), by adding at the end the following: 

‘‘(8) PROHIBITION ON PASS THROUGH.—None of the assessments collected under this title may be passed through or otherwise required to be paid by residential consumers of oilheat 

fuel.’’. 

(b) FUNDS MADE AVAILABLE TO QUALIFIED STATE ASSOCIATIONS.—Section 707(e)(2) of the National Oilheat Research Alliance 

Act of 2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended 

by adding at the end the following: 

‘‘(B) SEPARATE ACCOUNTS.—As a condition of receipt of 

funds made available to a qualified State association under 

this title, the qualified State association shall deposit the 

funds in an account that is separate from other funds of 

the qualified State association.’’. 

(c) ADMINISTRATION.—Section 707 of the National Oilheat Research Alliance Act of 2000 (42 U.S.C. 6201 note; Public Law 106– 

469) is amended by adding at the end the following: 

‘‘(f) USE OF ASSESSMENTS.— 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

this title, the Secretary and the Alliance shall ensure that assessments collected for each calendar year under this title are 

allocated and used in accordance with this subsection. 

‘‘(2) RESEARCH, DEVELOPMENT, AND DEMONSTRATION.— 

‘‘(A) IN GENERAL.—The Alliance shall ensure that not 

less than 30 percent of the assessments collected for each 

calendar year under this title are used by qualified State 

associations or the Alliance to conduct research, development, and demonstration activities relating to oilheat fuel, 

including the development of energy-efficient heating and 

the transition and facilitation of the entry of energy efficient heating systems into the marketplace. 

‘‘(B) COORDINATION.—The Alliance shall coordinate 

with the Secretary to develop priorities for the use of assessments under this paragraph. 

‘‘(C) PLAN.—The Alliance shall develop a coordinated 

research plan to carry out research programs and activities 

under this section. 

‘‘(D) REPORT.— 

‘‘(i) IN GENERAL.—No later than 1 year after the 

date of enactment of this subsection, the Alliance shall 

prepare a report on the use of biofuels in oilheat fuel 

utilization equipment. 

‘‘(ii) CONTENTS.—The report required under clause 

(i) shall— 

‘‘(I) provide information on the environmental 

benefits, economic benefits, and any technical limitations on the use of biofuels in oilheat fuel utilization equipment; and 


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‘‘(II) describe market acceptance of the fuel, 

and information on State and local governments 

that are encouraging the use of biofuels in oilheat 

fuel utilization equipment. 

‘‘(iii) COPIES.—The Alliance shall submit a copy of 

the report required under clause (i) to— 

‘‘(I) Congress; 

‘‘(II) the Governor of each State, and other appropriate State leaders, in which the Alliance is 

operating; and 

‘‘(III) the Administrator of the Environmental 

Protection Agency. 

‘‘(E) CONSUMER EDUCATION MATERIALS.—The Alliance, 

in conjunction with an institution or organization engaged 

in biofuels research, shall develop consumer education materials describing the benefits of using biofuels as or in 

oilheat fuel based on the technical information developed 

in the report required under subparagraph (D) and other 

information generally available. 

‘‘(3) COST SHARING.— 

‘‘(A) IN GENERAL.—In carrying out a research, development, demonstration, or commercial application program 

or activity that is commenced after the date of enactment 

of this subsection, the Alliance shall require cost-sharing 

in accordance with this section. 

‘‘(B) RESEARCH AND DEVELOPMENT.— ‘‘(i) IN GENERAL.—Except as provided in clauses 

(ii) and (iii), the Alliance shall require that not less 

than 20 percent of the cost of a research or development program or activity described in subparagraph 

(A) to be provided by a source other than the Alliance. 

‘‘(ii) EXCLUSION.—Clause (i) shall not apply to a 

research or development program or activity described 

in subparagraph (A) that is of a basic or fundamental 

nature, as determined by the Alliance. 

‘‘(iii) REDUCTION.—The Alliance may reduce or 

eliminate the requirement of clause (i) for a research 

and development program or activity of an applied nature if the Alliance determines that the reduction is 

necessary and appropriate. 

‘‘(C) DEMONSTRATION AND COMMERCIAL APPLICATION.— 

The Alliance shall require that not less than 50 percent of 

the cost of a demonstration or commercial application program or activity described in subparagraph (A) to be provided by a source other than the Alliance. 

‘‘(4) HEATING OIL EFFICIENCY AND UPGRADE PROGRAM.— 

‘‘(A) IN GENERAL.—The Alliance shall ensure that not 

less than 15 percent of the assessments collected for each 

calendar year under this title are used by qualified State 

associations or the Alliance to carry out programs to assist 

consumers— 

‘‘(i) to make cost-effective upgrades to more fuel 

efficient heating oil systems or otherwise make cost-effective modifications to an existing heating system to 

improve the efficiency of the system; 


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‘‘(ii) to improve energy efficiency or reduce energy 

consumption through cost-effective energy efficiency 

programs for consumers; or 

‘‘(iii) to improve the safe operation of a heating 

system. 

‘‘(B) PLAN.—The Alliance shall, to the maximum extent practicable, coordinate, develop, and implement the 

programs and activities of the Alliance in conjunction with 

existing State energy efficiency program administrators. 

‘‘(C) ADMINISTRATION.— 

‘‘(i) IN GENERAL.—In carrying out this paragraph, 

the Alliance shall, to the maximum extent practicable, 

ensure that heating system conversion assistance is 

coordinated with, and developed after consultation 

with, persons or organizations responsible for administering— 

‘‘(I) the low-income home energy assistance 

program established under the Low-Income Home 

Energy Assistance Act of 1981 (42 U.S.C. 8621 et 

seq.); 

‘‘(II) the Weatherization Assistance Program 

for Low-Income Persons established under part A 

of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); or 

‘‘(III) other energy efficiency programs administered by the State or other parties in the State. 

‘‘(ii) DISTRIBUTION OF FUNDS.—The Alliance shall 

ensure that funds distributed to carry out this paragraph are— 

‘‘(I) distributed equitably to States based on 

the proportional contributions of the States 

through collected assessments; 

‘‘(II) used to supplement (and not supplant) 

State or alternative sources of funding for energy 

efficiency programs; and 

‘‘(III) used only to carry out this paragraph. 

‘‘(5) CONSUMER EDUCATION, SAFETY, AND TRAINING.—The 

Alliance shall ensure that not more than 30 percent of the assessments collected for each calendar year under this title are 

used— 

‘‘(A) to conduct consumer education activities relating 

to oilheat fuel, including providing information to consumers on— 

‘‘(i) energy conservation strategies; 

‘‘(ii) safety; 

‘‘(iii) new technologies that reduce consumption or 

improve safety and comfort; 

‘‘(iv) the use of biofuels blends; and 

‘‘(v) Federal, State, and local programs designed to 

assist oilheat fuel consumers; 

‘‘(B) to conduct worker safety and training activities 

relating to oilheat fuel, including energy efficiency training 

(including classes to obtain Building Performance Institute 

or Residential Energy Services Network certification); 


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‘‘(C) to carry out other activities recommended by the 

Secretary; or 

‘‘(D) to the maximum extent practicable, a data collection process established, in collaboration with the Secretary or other appropriate Federal agencies, to track 

equipment, service, and related safety issues and to develop measures to improve safety. 

‘‘(6) ADMINISTRATIVE COSTS.— ‘‘(A) IN GENERAL.—The Alliance shall ensure that not 

more than 5 percent of the assessments collected for each 

calendar year under this title are used for— 

‘‘(i) administrative costs; or 

‘‘(ii) indirect costs incurred in carrying out paragraphs (1) through (5). 

‘‘(B) ADMINISTRATION.—Activities under this section 

shall be documented pursuant to a transparent process 

and procedures developed in coordination with the Secretary. 

‘‘(7) REPORTS.— 

‘‘(A) ANNUAL REPORTS.— 

‘‘(i) IN GENERAL.—Each qualified State association 

or the Alliance shall prepare an annual report describing the development and administration of this section, and yearly expenditures under this section. 

‘‘(ii) CONTENTS.—Each report required under 

clause (i) shall include a description of the use of proceeds under this section, including a description of— 

‘‘(I) advancements made in energy-efficient 

heating systems and biofuel heating oil blends; 

and 

‘‘(II) heating system upgrades and modifications and energy efficiency programs funded 

under this section. 

‘‘(iii) VERIFICATION.— 

‘‘(I) IN GENERAL.—The Alliance shall ensure 

that an independent third-party reviews each report described in clause (i) and verifies the accuracy of the report. 

‘‘(II) COUNCILS.—If a State has a stakeholder 

efficiency oversight council, the council shall be 

the entity that reviews and verifies the report of 

the State association or Alliance for the State 

under clause (i). 

‘‘(B) REPORTS ON HEATING OIL EFFICIENCY AND UPGRADE PROGRAM.—At least once every 3 years, the Alliance 

shall prepare a detailed report describing the consumer 

savings, cost-effectiveness of, and the lifetime and annual 

energy savings achieved by heating system upgrades and 

modifications and energy efficiency programs funded under 

paragraph (4). 

‘‘(C) AVAILABILITY.—Each report, and any subsequent 

changes to the report, described in this paragraph shall be 

made publically available, with notice of availability provided to the Secretary, and posted on the website of the Alliance.’’. 


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SEC. 12407. MARKET SURVEY AND CONSUMER PROTECTION. 

Section 708 of the National Oilheat Research Alliance Act of 

2000 (42 U.S.C. 6201 note; Public Law 106–469) is repealed. 

SEC. 12408. LOBBYING RESTRICTIONS. 

Section 710 of the National Oilheat Research Alliance Act of 

2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended— 

(1) by striking ‘‘No funds’’ and inserting the following: 

‘‘(a) IN GENERAL.—No funds’’; 

(2) by inserting ‘‘or to lobby’’ after ‘‘elections’’; and 

(3) by adding at the end the following: 

‘‘(b) ASSESSMENTS.— 

‘‘(1) IN GENERAL.—Subject to paragraph (2), no funds derived from assessments collected by the Alliance under section 

707 shall be used, directly or indirectly, to influence Federal, 

State, or local legislation or elections, or the manner of administering of a law. 

‘‘(2) INFORMATION.—The Alliance may use funds described 

in paragraph (1) to provide information requested by a Member 

of Congress, or an official of any Federal, State, or local agency, in the course of the official business of the Member or official.’’. 

SEC. 12409. NONCOMPLIANCE. 

Section 712 of the National Oilheat Research Alliance Act of 

2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended by 

adding at the end the following: 

‘‘(g) NONCOMPLIANCE.—If the Alliance, a qualified State association, or any other entity or person violates this title, the Secretary shall— 

‘‘(1) notify Congress of the noncompliance; and 

‘‘(2) provide notice of the noncompliance on the Alliance 

website.’’. 

SEC. 12410. SUNSET. 

Section 713 of the National Oilheat Research Alliance Act of 

2000 (42 U.S.C. 6201 note; Public Law 106–469) is amended by 

striking ‘‘9 years’’ and inserting ‘‘18 years’’. 

And the Senate agree to the same. 

From the Committee on Agriculture, for consideration of 

the House amendment and the Senate amendment, and 

modifications committed to conference: 

FRANK D. LUCAS, 

RANDY NEUGEBAUER, 

MIKE ROGERS of Alabama, 

MICHAEL K. CONAWAY, 

GLENN THOMPSON of 

Pennsylvania, 

AUSTIN SCOTT of Georgia, 

ERIC A. ‘‘RICK’’ CRAWFORD, 

MARTHA ROBY, 

KRISTI L. NOEM, 

JEFF DENHAM, 

RODNEY DAVIS of Illinois, 

COLLIN C. PETERSON, 

MIKE MCINTYRE, 

JIM COSTA, 


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TIMOTHY J. WALZ, KURT SCHRADER, SUZAN K. DELBENE, GLORIA NEGRETE MCLEOD, FILEMON VELA, From the Committee on Foreign Affairs, for consideration 

of title III of the House amendment, and title III of the 

Senate amendment, and modifications committed to conference: 

EDWARD R. ROYCE, TOM MARINO, ELIOT L. ENGEL, 

From the Committee on Ways and Means, for consideration of secs. 1207 and 1301, of the House amendment, 

and secs. 1301, 1412, 1435 and 4204 of the Senate amendment, and modifications committed to conference: 

DAVE CAMP, 

SAM JOHNSON of Texas, 

For consideration of the House amendment and the Senate 

amendment, and modifications committed to conference: 

STEVE SOUTHERLAND II, 

MARCIA L. FUDGE, Managers on the Part of the House. 

DEBBIE STABENOW, 

PATRICK J. LEAHY, 

TOM HARKIN, 

MAX BAUCUS, 

SHERROD BROWN, 

AMY KLOBUCHAR, 

MICHAEL F. BENNET, 

THAD COCHRAN, 

SAXBY CHAMBLISS, 

JOHN BOOZMAN, 

JOHN HOEVEN, 

Managers on the Part of the Senate. 


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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF

CONFERENCE

The managers on the part of the House and the Senate at the 

conference on the disagreeing votes of the two Houses on the 

amendment of the House to the amendment of the Senate to the 

bill (H.R. 2642), to provide for the reform and continuation of agricultural and other programs of the Department of Agriculture 

through fiscal year 2018, and for other purposes, submit the following joint statement to the House and the Senate in explanation 

of the effect of the action agreed upon by the managers and recommended in he accompanying conference report: 

The Senate amendment struck all of the House bill after the 

enacting clause and inserted a substitute text. 

The House amendment struck out that matter proposed to be 

inserted by the Senate amendment and inserted a substitute text. 

The House recedes from its amendment to the amendment of 

the Senate and agrees to the same with an amendment that is a 

substitute for the House amendment and the Senate amendment. 

The difference between the House amendment, the Senate amendment, and the substitute agreed to in conference are noted below, 

except for clerical corrections, conforming changes made necessary 

by agreements reached by the conferees, and minor drafting and 

clarifying changes. 

TITLE I—COMMODITIES

(1) Repeal of Direct Payments 

Section 1101 of the House bill repeals direct payments effective 

with the 2014 crop year. The section continues direct payments for 

the 2013 crop year for all covered commodities and peanuts, consistent with the extension of the 2008 Farm Bill. The section continues direct payments for the 2014 and 2015 crop years for upland 

cotton only except that the term ‘‘payment acres’’ is amended to 

mean the following: (1) for crop year 2014, 70 percent of the base 

acres of upland cotton on a farm on which direct payments are 

made; and (2) for crop year 2015, 60 percent of the base acres of 

upland cotton on a farm on which direct payments are made. (Section 1101) 

The Senate amendment, in section 1101, repeals direct payments effective with the 2014 crop year. The section continues direct payments for the 2013 crop year for all covered commodities 

(except pulse crops) and peanuts. (Section 1101) 

The Conference substitute adopts the House provision with an 

amendment to delete the continued application for the 2014 and 

2015 crop years. (Section 1101) 


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Transition assistance for producers of upland cotton 

The House bill, in section 1101, continued application of direct 

payments to producers of upland cotton as a transition to STAX, 

including on 70 percent of base acres in the 2014 crop year and on 

60 percent of base acres in the 2015 crop year. 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision allowing 

for a transition payment but not through a continuation of the Direct Payment or any portion thereof. The section provides transition payments to producers of upland cotton in light of the repeal 

of direct payments, the ineligibility of cotton producers for PLC or 

ARC, and the delayed implementation of STAX. The section provides that transition payments will be made with respect to the 

2014 crop year to upland cotton producers with cotton base in the 

2013 crop year, and with respect to the 2015 crop year to upland 

cotton producers with base in the 2013 crop year and who are located in counties where STAX is not available for that crop year. 

The transition assistance rate is equal to the product obtained 

when multiplying the June 12, 2013 midpoint estimate for the marketing year average price of upland cotton for the marketing year 

beginning August 1, 2013 less the December 10, 2013 midpoint estimate for the marketing year average price of upland cotton for 

the marketing year beginning August 1, 2013 as contained in the 

applicable WASDE report published by USDA and the national 

program yield for upland cotton of 597 pounds per acre. The section 

provides that the amount of transition assistance shall be equal to 

the product obtained when multiplying, for the 2014 crop year, 60 

percent, and for the 2015 crop year, 36.5 percent, of the cotton base 

acres in effect for crop year 2013; the transition assistance rate in 

effect for the particular crop year and the payment yield for upland 

cotton under section 1103(c)(3) of the 2008 Farm Bill divided by the 

national program yield of 597 pounds per acre. The section requires 

transition payments to be made on October 1 or as soon as practicable thereafter. The section applies the same pay limits to this 

transition assistance as was applied to section 1103 of the 2008 

Farm Bill. The section provides that the pay limits provided for 

under the 2014 Farm Bill do not apply to transition payments and 

transition payments received under this section shall not count toward pay limits under the 2014 Farm Bill limits. (Section 1119) 

(2) Definitions 

The House bill defines terms necessary for implementation of 

this Act: actual county revenue, base acres, county revenue loss 

coverage trigger, covered commodity, effective price, extra long staple cotton, farm base acres, medium grain rice, midseason price, 

other oilseed, payment acres, payment yield, price loss coverage, 

producer, pulse crop, reference price, revenue loss coverage, Secretary, state, temperate Japonica rice, transitional yield, United 

States, and United States premium factor. (Section 1104) 

The Senate amendment defines terms necessary for implementation of this Act: actual crop revenue, adverse market payment, 

agriculture risk coverage guarantee, agriculture risk coverage payment, average individual yield, base acres, county coverage, covered commodity, eligible acres, extra long staple cotton, individual 


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coverage, medium grain rice, other oilseed, payment acres, payment yield, producer, pulse crop, state, reference price, transitional 

yield, United States, and United States premium factor. (Section 

1104) 

The Conference substitute defines the terms necessary for implementation of this Act: actual crop revenue, agriculture risk coverage, agriculture risk coverage guarantee, base acres, county coverage, covered commodity, effective price, extra long staple cotton, 

generic base acres, individual coverage, medium grain rice, other 

oilseed, payment acres, payment yield, price loss coverage, producer, pulse crop, reference price, Secretary, state, temperate Japonica rice, transitional yield, United States, and United States 

premium factor. (Section 1111) 

The Managers intend that, for purposes of the reallocation of 

base acres under section 1112; the establishment of a reference 

price (as required under section 1116(g)) and an effective price pursuant to section 1116; and the determination of the actual crop revenue and agriculture risk coverage guarantee pursuant to section 

1117, medium and short grain rice produced in California shall be 

deemed Temperate Japonica Rice. For all other purposes, the Managers intend that Temperate Japonica Rice be treated as medium 

grain rice. 

Payment Acres 

The House bill, in the definitions section, provides that payment acres for price loss coverage and revenue loss coverage means 

85 percent of total acres planted for the year to each covered commodity on a farm and 30 percent of total acres approved as prevented from being planted, except that the total of payment acres 

may not exceed farm base acres. The provision requires the Secretary to reduce payment acres applicable to each crop proportionately. The provision excludes from the term payment acres any 

crop subsequently planted during the same crop year on the same 

land for which the first crop is eligible for payments unless the 

crop was approved for double cropping. (Section 1104) 

The Senate bill, in the definitions section, provides that payment acres means 85 percent of the base acres for a covered commodity on a farm on which adverse market payments are made. 

(Section 1104) 

The Conference substitute adopts the House provision with 

modifications. The section establishes payment acres for both price 

loss coverage and agriculture risk coverage for each covered commodity on a farm at 85 percent of the sum of the total base acres 

for each covered commodity on the farm and any generic base acres 

on the farm planted to the covered commodity for the crop year. 

The section establishes payment acres for individual coverage 

under agriculture risk coverage at 65 percent of the sum of total 

base acres and any generic base acres planted to a covered commodity for the crop year. The section provides that price loss coverage and agriculture risk coverage payments are made only with 

respect to generic base acres planted to a covered commodity for 

the crop year. The section provides that if a single covered commodity is planted on generic base acres and the total acreage exceeds that generic base, the generic base acres are attributed to 


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that covered commodity in an amount equal to the total number of 

generic base acres. The section provides that if multiple covered 

commodities are planted to generic base acres and the total number of acres planted exceeds generic base, the generic base acres 

are attributed to each of the covered commodities on a pro rata 

basis to reflect the ratio of the acreage planted to a covered commodity on the farm to the total acreage planted to all covered commodities on the farm. The section provides that if the total number 

of acres planted to all covered commodities does not exceed the generic base acres then the number of acres planted to a covered 

commodity is attributed to that covered commodity. The section 

provides that when generic base acres are planted to a covered 

commodity or acreage planted to a covered commodity is attributed 

to generic base, the generic base acres are in addition to other base 

acres on the farm. The section further provides that the quantity 

of payment acres may not include any crop subsequently planted 

during the same crop year on the same land for which the first 

crop is eligible for price loss coverage or agriculture risk coverage 

unless the crop was approved for double cropping. The section prohibits price loss coverage or agriculture risk coverage payments to 

a producer on a farm if base acres are 10 acres or less, except in 

the case of socially disadvantaged or limited resource farmers and 

ranchers. The section requires that for purposes of calculating payment acres, base acres must be reduced in any crop year when 

fruits, vegetables (other than mung beans and pulse crops), or wild 

rice are planted on base acres. In the case of price loss coverage 

payments and agriculture risk coverage payments using county 

coverage, the reduction will be equal to the acreage planted to 

fruits, vegetables (with the two exceptions), or wild rice in excess 

of 15 percent of base acres; 35 percent of base acres in the case of 

individual level agriculture risk coverage payments. No such reduction is required under the section where the crops are grown solely 

for conservation purposes and not for use or sale, in any region in 

which there is a history of double cropping these crops with covered 

commodities and the crops were double cropped on base acres, or 

where the crops were planted on generic base acres. (Section 1114) 

(3) Base Acres 

The House bill, in section 1105(a), requires the Secretary to 

provide for appropriate adjustments to base acres for covered commodities and cotton when a Conservation Reserve Program (CRP) 

contract expires or is voluntarily terminated, when cropland is released from coverage under a conservation reserve contract, or 

when the producer has eligible oilseed acreage as the result of the 

Secretary designating additional oilseeds which must be determined in the same manner as under the 2008 Farm Bill. Section 

1105(a) further requires that, for the crop year in which an adjustment in base is made, an owner of a farm elect price loss coverage 

or revenue loss coverage with respect to acreage added to the farm 

under an adjustment in base acres or a prorated payment under 

the conservation reserve contract, but not both. Section 1105(b) requires the Secretary to reduce the base acres for 1 or more covered 

commodities or cotton so the sum of base acres does not exceed the 

actual crop acreage of the farm. For purposes of carrying out any 


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required reduction, the provision requires the Secretary to include 

any acreage enrolled in CRP or WRP, or successor programs, any 

other acreage enrolled in a federal conservation program for which 

payments are made in exchange for not producing a crop, or any 

eligible oilseed acreage if the Secretary designates additional oilseeds. The section requires the Secretary to allow the owner of the 

farm to select base acres against which any reduction is to be 

made. The section requires an exception to be made in regard to 

any required reduction in the case of double cropping. Section 

1105(c) authorizes an owner on a farm to reduce base acres at any 

time and the reduction will be permanent. Finally, the section requires the Secretary to proportionately reduce base acres on a farm 

for land that has been subdivided and developed for multiple residential units or non-farming uses if the land is unlikely to return 

to agriculture uses unless the producers on the farm demonstrate 

that the land remains devoted to agricultural production or is likely to be returned to previous agriculture use. The Secretary is required to establish procedures to identify such lands. (Section 1105) 

The Senate amendment is similar to the House provision except the section refers to covered commodities rather than covered 

commodities and cotton. The provision also allows an adjustment 

in base acres if a conservation reserve contract was terminated or 

expired, or if cropland is released from a conservation reserve contract, between October 1, 2012 and the date of enactment of the 

2014 Farm Bill; if the producer has eligible pulse crop acreage determined in the same manner as eligible oilseed acreage under section 1101(a)(2) of the 2002 Farm Bill; or when the producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds which must be determined in the same manner as 

under the 2002 Farm Bill. The section includes the same special 

conservation reserve acreage payment rules as the House provision 

except it is with respect to a producer rather than owner of a farm. 

The section provides peanut producers with a one-time opportunity 

to adjust peanut base acres. The section, in regard to prevention 

of excess base acres, is the same as the House provision except the 

section refers to covered commodities rather than covered commodities and cotton relative to required reductions to base. With regard 

to other acreage to be included as part of any required reduction, 

the section refers to the Agricultural Conservation Easement Program instead of WRP or successor programs; includes any eligible 

pulse crop acreage which must be determined in the same manner 

as eligible oilseed acreage under section 1101(a)(2) of the 2002 

Farm Bill; and includes any eligible oilseeds if the Secretary designates additional oilseeds determined under section 1101(a)(2) of 

the 2002 Farm Bill rather than subsection (a)(1)(c) of the 2014 

Farm Bill. The section allows the producer to decide what base 

acres to reduce if any reduction is required rather than the owner 

of the farm. Similarly, the section allows the farmer to elect to reduce base acres at any time, rather than allowing the owner of the 

farm to do so. The section requiring the Secretary to proportionally 

reduce base acres for land not in agricultural use refers to covered 

commodities rather than covered commodities and cotton. The section also requires a report to Congress that only farmers received 

Farm Bill payments. (Section 1105) 


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The Conference substitute adopts the House provision with an 

amendment to allow owners of a farm to retain base acres, including generic base acres, or to reallocate all base acres, other than 

generic base. The section provides notice requirements concerning 

the option to retain or reallocate base and provides that failure to 

make an election results in the retention of existing base acres. 

The section provides that an election to retain the number of acres 

established sections 1001 and 1301 of the 2008 Farm Bill, as adjusted pursuant to sections 1101, 1108, and 1302 of the 2008 Farm 

Bill in effect as of September 30, 2013. The section provides that 

generic base is automatically retained. The section authorizes an 

owner of a farm to reallocate all of the base acres for covered commodities among those covered commodities planted on the farm at 

any time during the 2009 through 2012 crop years. The section requires that the reallocation of base acres be in proportion to the 

ratio of the 4-year average of the acreage planted on the farm to 

each covered commodity for harvest, grazing, haying, silage, or 

other similar purposes for the 2009 through 2012 crop years and 

any acreage that the producers were prevented from planting during the same years because of drought, flood, natural disasters, or 

other condition beyond the control of producers as determined by 

the Secretary, to the 4-year average of the acreage planted on the 

farm to all covered commodities for harvest, grazing, haying, silage 

or other similar purposes for the crop years and any acreage on the 

farm that the producers were prevented from planting during the 

crop years to covered commodities for the same reasons prescribed 

above. The section requires that generic base is retained and may 

not be reallocated. The section prohibits the Secretary from excluding any year in which a covered commodity was not planted for 

purposes of determining the 4-year average. The section provides 

that if acreage that was planted or prevented from being planted 

was devoted to another covered commodity in the same crop year 

(other than under an established practice of double cropping), the 

owner may elect the commodity to be used for that crop year in determining the 4-year average but may not include both the initial 

commodity and the subsequent commodity. The section requires 

that the reallocation of base acres may not result in a total number 

of base acres (including generic base) for the farm that exceed the 

number of base acres in effect on the farm on September 30, 2013. 

The section requires that the election made by an owner on a farm 

or deemed to be made applies to all covered commodities on the 

farm. With respect to provisions concerning the adjustment of base 

acres, prevention of excess base acres, and reduction in base acres, 

reference is made to generic base instead of cotton. (Section 1112) 

(4) Payment yields 

The House bill maintains the provisions of section 1102 of the 

2008 Farm Bill except it drops the directive that the Secretary establish yields for eligible pulse crops and directs the Secretary to 

establish yields for designated oilseeds not established under section 1102 of the 2008 Farm Bill rather than the 2002 Farm Bill. 

The section requires that if no payment yield is otherwise established the Secretary must establish an appropriate payment yield. 

In establishing appropriate payment yields, the Secretary is reVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00374 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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quired to take into consideration payment yields applicable to the 

covered commodity for similarly situated farms. The section authorizes owners to update yields on a commodity-by-commodity basis 

for purposes of price loss coverage payments. Owners must make 

an election to update yields to be in effect beginning with the 2014 

crop year. The section requires that payment yields under any updated yield would be 90 percent of the average of the yield per 

planted acre for the 2008 through 2012 crop years, as determined 

by the Secretary, excluding crop years in which the acreage planted 

to the commodity was zero. The section provides that if the yield 

per planted acre for any of the 2008 through 2012 crop years was 

less than 75 percent of the average of the 2008 through 2012 county yields, the Secretary must assign a yield for the crop year equal 

to 75 percent of the average of the 2008 through 2012 county yield 

for purposes of determining the average yield under an update. The 

section requires that, in the case of a yield update, if no payment 

yield is otherwise established the Secretary must establish an appropriate payment yield. In establishing appropriate payment 

yields in the case of an update, the Secretary is required to take 

into consideration payment yields applicable to the covered commodity for similarly situated farms. (Section 1106) 

The Senate amendment contains similar provisions relative to 

yields for designated oilseeds but adds eligible pulse crops and refers to section 1102 of the 2002 Farm Bill rather than section 1102 

of the 2008 Farm Bill. The provision also allows a yield update for 

rice and a yield update for peanuts if the producer elected to update base. (Section 1106) 

The Conference substitute adopts the House provision except 

that the Secretary shall provide for the establishment of a yield for 

any designated oilseed for which a payment yield was not established under the 2008 Farm Bill for purposes of price loss coverage 

only; the substitute omits the requirement that in the case of establishing yields for designated oilseeds, if historic yield data is not 

available, the Secretary must use a specified ratio for dry peas; and 

the language clarifies that the payment yield update opportunity is 

with respect to each covered commodity, and that the election to 

update yields would take effect beginning with the 2014 crop year. 

(Section 1113) 

For those producers with no payment yield, the Managers intend that, with respect to the yield update offered under section 

1113, the Secretary will assign the producer a payment yield using 

similarly situated farms prior to offering the opportunity to update 

their yield. 

(5) Farm Risk Management Election 

The House bill requires the Secretary to make required payments under Price Loss Coverage (PLC) or Revenue Loss Coverage 

(RLC) with respect to covered commodities of producers on a farm 

except that PLC or RLC payments may not be made on farms with 

10 acres or less of planted acres of a covered commodity unless in 

the case of socially disadvantaged or limited resource farmers or 

ranchers. In the case of PLC, for the 2014 and subsequent crop 

years the Secretary is required to make payments on a covered 

commodity when the effective price for the crop year is less than 


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the reference price, with the effective price being the higher of the 

midseason price or the national average loan rate for the covered 

commodity. The section provides a payment rate equal to the difference between the reference price and the effective price and that 

the payment amount is to be equal to the product when multiplying the payment rate, the payment yield, and the payment 

acres. The section requires that payments be made on October 1 or 

as soon as practicable thereafter. The Secretary is required to use 

an all-barley price when determining the effective price for barley, 

and a reference price for Temperate Japonica Rice that is 115 percent of the reference price for long grain and medium grain rice. 

Reference prices, provided in the definitions section, are: wheat, 

$5.50 per bushel; corn, $3.70 per bushel; grain sorghum, $3.95 per 

bushel; barley, $4.95 per bushel; oats, $2.40 per bushel; long grain 

rice, $14.00 per cwt.; medium grain rice, $14.00 per cwt.; soybeans, 

$8.40 per bushel; other oilseeds, $20.15 per cwt.; peanuts $535.00 

per ton; dry peas, $11.00 per cwt.; lentils, $19.97 per cwt.; small 

chickpeas, $19.04 per cwt.; large chickpeas, $21.54 per cwt. The 

section offers RLC as an alternative to PLC that owners on the 

farm have a one-time, irrevocable election to make on a covered 

commodity-by-covered commodity basis. The section provides that if 

any owners of the farm make different elections with respect to the 

same covered commodity, all owners of the farm will be deemed to 

have not elected RLC. The section requires the Secretary to make 

an RLC payment for the 2014 and subsequent crop years when the 

actual county revenue for a covered commodity in a crop year is 

less than the county revenue loss trigger for the commodity for the 

crop year. The section requires that RLC payments be made on October 1 or as soon as practicable thereafter. The section provides 

that actual county revenue is the product of multiplying the actual 

county yield for each planted acre of the covered commodity in a 

crop year by the higher of the midseason price or the national average loan rate for the covered commodity. The section provides that 

the county RLC trigger is equal to 85 percent of the benchmark 

county revenue which is the product of multiplying the average historical county yield for the most recent 5 crop years, excluding the 

high and the low, by the average national marketing year average 

price for the most recent 5 crop years, excluding the high and the 

low. The section provides a yield plug of 70 percent of the transitional yield where historical county yield is less than 70 percent of 

that transitional yield, and a price plug, the reference price for the 

covered commodity, where the national marketing year average 

price is lower than the reference price. The section provides that 

the payment rate for RLC is equal to the lesser of 10 percent of 

the benchmark county revenue for the covered commodity for the 

crop year, or the difference between the county RLC trigger and 

the actual county revenue. The section provides a payment amount 

equal to the product of the payment rate multiplied by the payment acres of the covered commodity. The section imposes duties 

on the Secretary to ensure that producers on the farm do not reconstitute the farm to void or change the election made between PLC 

and RLC; use all available information and analysis to check for 

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tion practice; assign a benchmark yield on the basis of yield history 

of representative farms in a state, region, or crop reporting district 

where the Secretary cannot establish the benchmark county yield 

in a county or the yield otherwise determined is unrepresentative 

of the average yield for the county; and ensure that producers on 

the farm suffered an actual loss when receiving an RLC payment. 

The section requires a report to Congress on the cost of PLC and 

RLC and their effect on planting, production, price, and exports. 

The section also imposes a cap on total cost of PLC and RLC. (Section 1107) 

The Senate amendment authorizes the Secretary to make Adverse Market Payments (AMP) to eligible producers for each of the 

2014 through 2018 crop years. The section requires a payment any 

time that the actual price for a covered commodity is less than the 

reference price. The section establishes the actual price at a level 

equal to the higher of the national average market price received 

during the 12-month marketing year or the national average loan 

rate. The actual price for rice is determined in the same way except 

separately for long grain rice and medium grain rice. The section 

establishes reference prices at 55 percent of the average national 

marketing year average price for the most recent 5 crop years, 

dropping the high and the low except that for long grain rice and 

medium grain rice the reference price will be $13.30 per hundredweight and for peanuts the reference price will be $523.77 per ton. 

The section provides that the payment rate will be the difference 

by which the reference price exceeds the actual price, and that the 

payment amount is calculated by multiplying the payment rate by 

the payment acres and payment yield. The section requires the 

Secretary to determine actual price and reference price by type or 

class for sunflowers; barley, using malting values; and wheat. The 

section provides that payments must be made by October 1 or as 

soon as practicable thereafter. (Section 1107) 

The Senate amendment also authorizes Agriculture Risk Coverage (ARC) payments for the 2014 through 2018 crop years. The 

section requires producers to make a one time, irrevocable election 

to receive individual coverage or county coverage where there is 

sufficient county data. The election would bind the producer with 

respect to all acres under the operational control of the producer, 

including acres brought under the control of the producer after the 

election is made. Acres no longer under the producer’s operational 

control after an election are not subject to the producer’s election 

but the election of the subsequent producer. The section requires 

the Secretary to ensure that producers do not take actions to alter 

or reverse their elections. An ARC payment is required whenever 

the actual crop revenue for the covered commodity is less than the 

ARC guarantee. The section provides that payments are to be made 

on October 1 or as soon as practicable thereafter. The section provides that actual crop revenue is the product of the multiplication 

of the actual average individual yield (for individual coverage) or 

the actual average yield for the county (for county coverage) and 

the higher of the national average market price received during the 

12-month marketing year or, if applicable, the reference price established for the covered commodity under section 1107. The section provides that the ARC guarantee is equal to 88 percent of the 


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benchmark revenue. The section requires that the benchmark revenue be the product of multiplying the average individual yield for 

the most recent 5 crop years, dropping the high and the low (for 

individual coverage) or the average county yield for the most recent 

5 crop years, dropping the high and the low (for county coverage) 

by the average national marketing year average price for the most 

recent 5 crop years, excluding the high and the low. The section 

provides a 60 percent yield plug for the 2013 and prior crop years 

and a 65 percent yield plug for the 2014 and subsequent crop 

years. The section establishes a payment rate equal to the lesser 

of the amount that the ARC guarantee exceeds the actual crop revenue or 10 percent of the benchmark revenue for the covered commodity. The section established a payment amount at an amount 

equal to the product obtained by multiplying the payment rate by 

65 percent of the planted eligible acres and 45 percent of the eligible acres that were prevented from being planted (for individual 

coverage) and by 80 percent and 45 percent, respectively (for county coverage). The section imposes duties on the Secretary including 

using all available information and analysis to check for anomalies 

in ARC payments; to calculate separate actual crop revenue and 

ARC guarantees by irrigation practice; differentiate by type or class 

the national average price for sunflowers; barley, using malting 

barley values; and wheat; and assign yields on the basis of yield 

history of representative farms in the state, region, or crop reporting districts if the Secretary cannot establish a county yield if the 

yield otherwise determined is unrepresentative of an average yield 

for the covered commodity. (Section 1108) 

The Conference substitute adopts the House provision with 

amendments. The substitute creates a new section, section 1115, 

establishing rules for a producer election between PLC and ARC. 

For the 2014 through 2018 crop years the substitute requires all 

of the producers on a farm to make a 1-time, irrevocable election 

to receive price loss coverage on a covered commodity-by-coveredcommodity basis or agriculture risk coverage. The substitute requires that producers on a farm that elect ARC must unanimously 

select whether to receive county coverage on a covered commodityby-covered-commodity basis or individual coverage applicable to all 

of the covered commodities on the farm. The substitute provides 

that if all the producers on a farm fail to make a unanimous election for the 2014 crop year, the Secretary may not make any ARC 

or PLC payments with respect to the farm for the 2014 crop year 

and the producers on the farm will be deemed to have elected PLC 

for all covered commodities on the farm for the 2015 through 2018 

crop years. The substitute provides that if all the producers on a 

farm select ARC county coverage for a covered commodity, the Secretary may not make PLC payments to the producers on the farm 

for that covered commodity. The substitute provides that if all the 

producers on a farm select individual ARC coverage, the Secretary 

must consider for purposes of making specified calculations the producer’s share of all farms in the same State in which the producer 

has an interest and for which individual coverage has been selected. Finally, the substitute requires the Secretary to ensure that 

producers on a farm do not reconstitute the farm to void or change 

an election or selection made. 


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The Conference substitute provides, in section 1116, that if all 

of the producers on a farm make an election to receive PLC for a 

covered commodity or are deemed to have made such an election, 

then the Secretary shall make PLC payments to producers on the 

farm on a covered commodity-by-covered-commodity basis if the 

Secretary determines that, for any of the 2014 through 2018 crop 

years, the effective price for a covered commodity is less than the 

reference price in a crop year. The section establishes that the effective price for a covered commodity is the higher of the national 

average market price during the 12-month marketing year or the 

national average loan rate. The section provides that the payment 

rate is equal to the difference between the reference price and the 

effective price. The section further provides that the payment 

amount shall be the product of multiplying the payment rate, the 

payment yield, and the payment acres and that payments are to 

be made by October 1 or as soon as practicable thereafter. The section requires that the all-barley price is to be used when determining the effective price for barley, and that the reference price 

for Temperate Japonica Rice is 115 percent of the reference price 

for long grain or medium grain rice. Reference prices are the same 

as provided in the House bill. 

The Conference substitute, in section 1117, also includes the 

ARC that closely mirrors the Senate provision with some modifications. The substitute provides that if all producers on a farm make 

an election to receive ARC, then ARC payments are required to be 

made to producers on the farm when the Secretary determines 

that, for any of the 2014 through 2018 crop years, actual crop revenue is less than the ARC guarantee for a crop year. The section 

provides that actual crop revenue for a county is equal to the product obtained when multiplying the actual average county yield per 

planted acre for the covered commodity and the higher of the national average market price received during the 12-month marketing year or the national average loan rate. The section provides 

that in the case of individual ARC, the actual crop revenue for a 

producer for a crop is based on the producer’s share of all covered 

commodities planted on all farms in which the producer has an interest and for which individual coverage has been selected, to be 

determined by the Secretary as follows: for each covered commodity, by obtaining the product of multiplying the total production of the covered commodity on the farm by the higher of the national average market price received during the 12-month marketing year or the national average loan rate; by then determining 

the sum of the amounts determined, above, for all covered commodities on the farm; and then arriving at the quotient obtained when 

dividing the amount, immediately above, by the total planted acres 

of all covered commodities on the farms. The section provides that 

the ARC guarantee for a covered commodity in a crop year is 86 

percent of the benchmark revenue, which for county coverage is the 

product obtained by multiplying the average historical yield for the 

most recent 5 crop years, excluding the high and the low, by the 

national average market price received by producers during the 12- 

month marketing year for the most recent 5 crop years, dropping 

the high and the low. The section provides that benchmark revenue 

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ered commodities planted on all farms which the producer has an 

interest and for which individual coverage has been selected to be 

determined by the Secretary as follows: for each covered commodity 

for each of the most recent 5 years, the product obtained by multiplying the yield per planted acre for the covered commodity on the 

farm by the national average market price received by producers 

during the 12-month marketing year; for each covered commodity, 

the average of the revenues determined above for the most recent 

5 crops, dropping the high and the low; for each of the 2014 

through 2018 crop years, the sum of the amounts determined immediately above for all covered commodities on the farms, but adjusted to reflect the ratio between the total number of acres planted on the farms to a covered commodity and the total acres of all 

covered commodities planted on the farms. The section provides a 

yield plug of 70 percent of the transitional yield when the yield per 

planted acre or historical county yield for any of the 5 most recent 

crop years is less than 70 percent of the transitional yield, and a 

price plug equal to the reference price for the covered commodity 

when the national average market price received by producers during the 12-month marketing year for any of the 5 most recent crop 

years is lower than the reference price. The section establishes that 

the payment rate is equal to the lesser of the amount that the ARC 

guarantee exceeds the actual crop revenue or 10 percent of the 

benchmark revenue. The section further provides that the payment 

amount is to be determined by multiplying the payment rate by the 

payment acres determined under section 1114, and that payments 

are required to be made by October 1 or as soon as practicable 

thereafter. The section imposes duties on the Secretary to use all 

available information and analysis to check for anomalies in ARC 

payments; to provide separate actual crop revenue and ARC guarantees for a covered commodity by irrigation practice; assign an individual yield for a farm on the basis of the yield history of representative farms in the state, region, or crop reporting district if 

the farm has planted acreage in a quantity that is insufficient to 

calculate a representative average yield for the farm; and assign a 

benchmark county yield for each planted acre on the basis of the 

yield history of representative farms in the state, region, or crop reporting district where the Secretary cannot establish the actual or 

benchmark county yield or the yield calculated is an unrepresentative average yield. (Sections 1115, 1116, and 1117) 

The Managers recognize that all producers on the farm have 

a one-time opportunity to elect either PLC or ARC for each crop on 

the farm on a commodity-by-commodity basis, with the exception 

that if a producer elects individual-level ARC, the producer must 

elect individual-level ARC for all crops on the farm. However, the 

Managers intend for USDA to have an annual signup to participate 

in the program for the applicable year based on the producer election that was made. The Managers stress that FSA has always had 

an annual signup into available programs, which is simply a decision to participate in a given year. Absent an annual signup, producers may well fail to notify FSA of ownership changes, complete 

AGI certifications, and other information required to be provided 

by the producer to FSA. The signup period is the one time each 


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year where producers are certain to complete all of the necessary 

records and forms. 

(6) Producer Agreements 

The House bill, in section 1108, retains a producer agreement 

requirement from the 2008 Farm Bill except that benefits under 

this subtitle are referred to rather than 2008 subtitle programs and 

planting flexibility, agricultural and conserving use, and production 

report requirements are dropped, as is a provision that prohibits 

any benefit penalties against a producer for an inaccurate acreage 

or production report unless the producer knowingly and willfully 

falsified the reports. 

The Senate amendment is similar except agricultural and conserving uses and production reports requirements and prohibition 

on penalties are not dropped as compared to the 2008 Farm Bill. 

The section includes a data reporting requirement that the Secretary must use data reported by the producer to meet crop insurance requirements to meet acreage reporting and production reporting requirements, and the section clarifies that producers are 

required to meet the noxious weed control requirement if the agriculture or conserving use involves non-cultivation of any portion of 

land referenced in the agriculture and conserving use requirement 

provision. 

The Conference substitute adopts the House provision except 

agricultural and conserving use requirements under the 2008 Farm 

Bill are retained and certain production reports are required. (Section 1118) 

(7) Senate Amendment 

The Senate amendment provides that Sections 1104 (Definitions) through 1109 (Producer Agreements) shall be effective beginning with the 2014 crop year of each covered commodity through 

the 2018 crop year. (Section 1110) 

The House bill provides no comparable provision and instead 

indicates in each section that the provision applies for the 2014 and 

each subsequent crop year. 

The Conference substitute adopts the Senate effective period 

for sections 1111 (Definitions) through 1118 (producer agreements). 

(8) Availability of marketing assistance loans 

The House bill extends the 2008 Farm Bill’s provision requiring the availability of nonrecourse marketing assistance loans for 

loan commodities for the 2014 and succeeding crop years except 

that peanuts are included in the definition of loan commodity rather than there being a separate section of the law providing loan assistance for peanuts. The special rules for peanuts authorized 

under the 2008 Farm Bill are also carried over into this section. 

(Section 1201) 

The Senate amendment is the same as the House bill except 

that the provision is reauthorized through 2018 and requires producers to agree to use the land on the farm for an agriculture or 

conserving use, and to effectively control noxious weeds and maintain the land in accordance with sound agricultural practices if it 

involves the noncultivation of any portion of the land. The SecVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00381 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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retary is required under the provision to issue rules necessary to 

enforce compliance. The section also authorizes the Secretary to 

modify the requirements of this section if the modification is consistent with the purposes of this subsection. (Section 1201) 

The Conference substitute adopts the House provision except 

that the provision of loans is required for the 2014 through 2018 

crop years. (Section 1201) 

The Managers intend that Subtitle B, including but not limited 

to the Marketing Assistance Loan Program, the Economic Adjustment Assistance Program, and the ELS Competitiveness Program, 

will be administered in the same manner as under the 2008 Farm 

Bill. 

(9) Loan Rates for Nonrecourse Marketing Assistance Loans 

The House bill extends the 2008 Farm Bill’s provision establishing loan rates for nonrecourse marketing assistance loans for 

the 2014 and succeeding crop years except the loan rate for upland 

cotton is established at the simple average of the adjusted prevailing world price for the two immediately preceding marketing 

years, as determined by the Secretary and announced October 1 

preceding the next domestic plantings but in no case may the loan 

rate be less than 47 cents per pound or more than 52 cents per 

pound. The section also includes an extension of the 2008 Farm 

Bill’s loan rate for peanuts. (Section 1202) 

The Senate amendment is similar to the House provision except that the loan rates are extended through the 2018 crop year 

and the minimum loan rate for upland cotton is established at 45 

cents per pound. (Section 1202) 

The Conference substitute adopts the Senate provision. (Section 1202) 

The Managers stress that the loan rate reduction authority 

granted under this section is intended to address the cotton domestic support elements of Brazil’s dispute with the United States 

(WT/DS 267) before the World Trade Organization. This authority 

is in addition to other reforms to U.S. cotton policy made by the 

2014 Farm Bill, including repeal of the suite of commodity policies 

made available to cotton producers under the 2002 and 2008 Farm 

Bills, the ineligibility of cotton producers to participate in successor 

policies contained in the 2014 Farm Bill, the authorization of expenditure of funds in connection with certain research and development activities on behalf of Brazilian cotton, and other reforms, including with respect to the export credit guarantee elements of the 

dispute, statutory reforms to the GSM 102 Export Credit Guarantee Program. The Managers intend that these reforms lead to a 

negotiated resolution of the dispute. 

(10) Repayment of Loans 

The House bill generally extends the repayment of loan provisions of the 2008 Farm Bill for the 2014 and succeeding crop years 

except the section incorporates peanuts consistent with repayment 

provisions of the 2008 Farm Bill for that crop, and provides for a 

10 percent reduction in cotton storage payment rates as compared 

to the rates in effect for the 2006 crop year. (Section 1204) 


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The Senate bill is similar to the House Bill provisions except 

that the provision is authorized for the 2014 through 2018 crop 

years and cotton storage payment rates are reduced by 20 percent 

as compared to the rates in effect for the 2006 crop year. (Section 

1204) 

The Conference substitute adopts the House provision except 

that the provision is reauthorized for the 2014 through 2018 crop 

years. (Section 1204) 

(11) Loan Deficiency Payments 

The House bill extends the provision in the 2008 Farm Bill requiring loan deficiency payments for the 2014 crop year and each 

succeeding crop year. (Section 1205) 

The Senate bill is similar to the House bill except loan deficiency payments are authorized for the 2014 through 2018 crop 

years. (Section 1205) 

The Conference Substitute adopts the Senate provision. (Section 1205) 

(12) Payments in Lieu of LDPs for Grazed Acreage 

The House bill extends such provisions of the 2008 Farm Bill 

for the 2014 and succeeding crop years but used the payment yield 

under price loss coverage rather than the direct payment for purposes of calculating payment quantity. (Section 1206) 

The Senate amendment is similar except the provision applies 

to the 2014 through 2018 crop years and uses the payment yield 

for the agriculture risk coverage program as well as the payment 

yield for the 2008 Farm Bill in the case of a farm without a payment yield for wheat. (Section 1206) 

The Conference substitute adopts the House provision except 

the payments are required for the 2014 through 2018 crop years. 

(Section 1206) 

(13) Special Marketing Loan Provisions for Upland Cotton 

The House bill extends the provision of the 2008 Farm Bill authorizing the President to carry out a special import quota starting 

August 1, 2014 and a limited global import quota. The section authorizes the use of official data of USDA if available or estimates 

of the Secretary in carrying out the section. The section also provides for economic adjustment assistance to users of upland cotton 

at 3 cents per pound beginning August 1, 2013. (Section 1207) 

The Senate provision provides for economic adjustment assistance similar to the House except the 3 cents per pound amount begins August 1, 2012. (Section 1207) 

Conference substitute adopts the House provision except the 

starting date of the special import quota is August 1, 2014 and the 

3 cent per pound economic adjustment assistance begins August 1, 

2013. (Section 1207) 

(14) Special Competitive Provisions for Extra Long Staple Cotton 

The House bill permanently extends current law in this regard. 

(Section 1208) 

The Senate amendment extends current law through July 31, 

2019, beginning on the date of enactment of this Act. (Section 1208) 


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The Conference substitute adopts the House provision except 

that the program is authorized beginning on the date of enactment 

through July 31, 2019. (Section 1208) 

(15) Availability of Recourse Loans for High Moisture Feed Grains 

and Seed Cotton 

The House bill extends the provision of the 2008 Farm Bill providing recourse loans for the 2014 and each succeeding crop year 

except for purposes of calculating the quantity of corn or grain sorghum, the lower of the farm program payment yield used to make 

payments under the new Farm Bill or the actual yield is used instead of the lower of the countercyclical payment yield under the 

2008 Farm Bill or the actual yield. (Section 1209) 

The Senate amendment is similar except recourse loans are extended for the 2014 through 2018 crop years and the calculation is 

based on the lower of the actual average yield used to make payments under the new Farm Bill or the actual yield. (Section 1209) 

The Conference substitute adopts the House provision except 

that the recourse loans are required for the 2014 through 2018 crop 

years. 

(16) Adjustments of Loans 

The House bill is the same as current law except any adjustments must be made so the average loan level for the commodity 

will be equal to the level of support determined in accordance with 

this subtitle and subtitle C and revisions to quality adjustments for 

upland cotton provision is deleted. (Section 1210) 

The Senate amendment is similar except the average loan level 

must be equal to the level of support determined under this subtitle and subtitles C through E, revisions to quality adjustment for 

upland cotton provision is retained, and authority is provided to revise or revoke any actions taken pursuant to that revision authority. (Section 1210) 

The Conference substitute adopts the House provision. 

(17) Sugar Policy 

The House bill permanently extends current sugar policy for 

the 2012 crop year and each succeeding crop year. (Section 1301) 

The Senate amendment extends current sugar policy for each 

of the 2014 through 2018 crop years. (Section 1301) 

The Conference substitute adopts the Senate provision, extending current sugar policy for the 2012 through 2018 crop years. 

(18) Definitions for the Dairy Producer Margin Insurance Program 

The House bill defines the new terms and establishes the 

Dairy Producer Margin program in the new section 1511(a) of the 

Food Conservation and Energy Act of 2008. (Section 1401) 

The Senate amendment is similar and gives the definitions for 

the ‘‘Dairy Margin Protection Program’’ and the ‘‘Dairy Market Stabilization Program’’. (Section 1401) 

The Conference substitute adopts the House provision with an 

amendment. The amendment replaces the term ‘‘Dairy Producer’’ 

with ‘‘Dairy Operation’’; the ‘‘Margin Insurance Program’’ is instead 

referred to as the ‘‘Margin Protection Program’’; and definitions are 


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included for ‘‘Margin Protection Program Payment’’ and ‘‘Secretary’’. (Section 1401) 

(19) Calculation of Average Feed and Actual Dairy Production 

The House bill establishes the calculation for the average feed 

cost and actual dairy producer margins. (Section 1401) 

The Senate amendment is similar to the House provision but 

it includes provisions unique to the stabilization program. (Section 

1402) 

The Conference substitute adopts the House provision with an 

amendment to include Senate language related to the time for calculation. (Section 1402) 

(20) Establishment of Dairy Producer Margin Insurance Program 

The House bill establishes the Dairy Producer Margin Insurance Program to be effective October 1, 2013. (Section 1401) 

The Senate amendment similarly establishes the Dairy Product Margin Protection Program, but requires the program be effective not later than 120 days after the effective date of this subtitle. 

(Section 1411) 

The Conference substitute directs the Secretary to establish a 

margin protection program for dairy producers not later than September 1, 2014. (Section 1403) 

(21) Eligibility and Registration of Dairy Producers for Margin Insurance Program 

The House bill requires that all dairy producers in the United 

States shall be eligible to participate in the margin insurance program. It sets out an annual registration process and provides for 

retroactivity of the program. (Section 1401) 

The Senate amendment is similar to the House provision but 

does not provide for retroactivity of the program. It instead provides for a transition period from MILC to the Production Margin 

Protection Program and describes rules and restrictions for producers during this period. It establishes an annual administrative 

fee schedule for producers to participate in the Production Margin 

Protection Program. It also establishes a fund for the use of fees 

collected and authorizes a range of uses for this fund. It prohibits 

a producer from participating in both the Livestock Margin Program and the Production Margin Protection Program. (Section 

1412) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment eliminates the tiered fee structure 

and waiver and instead requires that all participating producers 

pay a single annual fee of $100. The Secretary is authorized to 

specify the manner and form in which producers may register. 

(Section 1404) 

(22) Production History of Participating Dairy Producers 

The House bill requires the Secretary to determine the production history of each producer in the margin insurance program and 

allows for annual updates. Annual updates are based on the producer’s highest annual milk marketings during any of the 3 immediately preceding calendar years. It provides a mechanism for the 


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Secretary to determine production history of producers in operation 

for less than one year. It lists the required information a participating dairy producer must submit to the Secretary for establishing 

production history. It details how production history is transferred 

by sale or by lease. It prohibits the producer to whom the production history is transferred from choosing a different coverage level. 

It prohibits the Secretary from transferring production history established for a new entrant to another person. It allows the production history of a producer to move to a new location with the producer. (Section 1401) 

The Senate amendment is specific to basic margin protection 

which has a one-time registration without opportunity for annual 

updating of the producer’s production history. It requires the Secretary to determine the actual production history of a producer who 

purchases supplemental production coverage. It sets out a new producer’s options to determine basic production history. Similar to 

the House bill, it lists the required information a participating 

dairy producer must submit to the Secretary for establishing production history. It requires the Secretary to specify how production 

history is to be transferred. Similar to the House bill, it prohibits 

the producer to whom the production history is transferred from 

choosing a different coverage level and also extends the prohibition 

to transfers within the supplemental production margin protection 

program. It allows the basic and annual production history of a 

producer to move to a new location with the producer. (Section 

1413) It allows a participating dairy operation to purchase supplemental production margin protection. (Section 1415)) 

The Conference substitute adopts the House provision with an 

amendment. It sets production history equal to the highest annual 

milk marketings from the 2011, 2012, or 2013 calendar years. The 

Secretary shall adjust the production history to reflect any increase 

in the national average milk production. New dairy operations 

shall elect one of two methods to establish production history: (1) 

the volume of actual milk marketings for the months the dairy operation has been in operation extrapolated to a yearly amount; or 

(2) an estimate of the actual milk marketings based on herd size 

relative to the national herd average data published by the Secretary. (Section 1405) 

(23) Margin Insurance 

The House bill allows a participating dairy producer to annually purchase margin insurance. The producer shall elect a coverage level between $4 and $8. It requires a producer to select a 

coverage percentage between 25 percent and 80 percent of production history. It sets the margin insurance payment for a consecutive 2-month period equal to the product of the shortfall in actual 

margins below a chosen threshold, the coverage percentage selected 

by the producer, and the lesser of the producer’s actual marketings 

or actual production history. (Section 1401) 

The Senate amendment requires the Secretary to make a payment whenever the margin for a 2-month period is less than $4 per 

cwt. It sets the basic margin production payment amount equal to 

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history, divided by 6; or the actual quantity of milk marketed by 

the dairy operation during the 2 month period. (Section 1414) 

The Conference substitute adopts the House provision with an 

amendment. The amendment allows for coverage percentages between 25 percent and 90 percent. (Section 1406) 

(24) Producer Premiums 

The House bill requires a participating producer to pay an annual premium. It sets the premium schedule for the first 4 million 

pounds of milk. It also sets the premium schedule for production 

in excess of 4 million pounds. It establishes a schedule for the timing of premium payments including options for subsequent years, 

single annual payments, and semi-annual payments. It sets out the 

producer premium obligations including a pro-ration of the first 

year obligations, and a legal obligation to pay the premium except 

in the case of death and retirement. It requires that a producer 

shall receive a margin insurance payment whenever the average 

actual producer margin is less than the coverage threshold selected 

by the producer. It requires the Secretary to make margin insurance payments when the average actual production for a consecutive two-month period is less than the coverage level threshold selected by the dairy producer. It allows the Secretary to use the 

funds of the CCC to carry out this section. It establishes that the 

program start date is October 1, 2013. (Section 1401) 

The Senate amendment is similar to the House bill, but contains slight differences in premiums. It requires the Secretary to 

provide for more than one method by which a dairy operation can 

pay premiums. Unlike the House bill, it allows the Secretary to 

waive the legal obligation to pay the premium in case of death, retirement, or other circumstances as the Secretary considers appropriate. It establishes the payment threshold and calculation method for Supplemental Production Margin Payments. (Section 1415) 

The Conference substitute includes premium schedules for the 

first 4 million pounds of production and for production in excess of 

4 million pounds. The premiums for the first 4 million pounds are 

reduced by 25 percent for calendar years 2014 and 2015. (Section 

1407) 

(25) Establishment of the Dairy Market Stabilization Program 

The Senate amendment requires the Secretary to establish and 

administer a dairy market stabilization program applicable to participating dairy operations for the purpose of assisting in balancing 

the supply of milk with demand. (Section 1431) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(26) Threshold for Implementation and Reduction in Dairy Payments 

The Senate amendment provides that the Secretary shall announce that the stabilization program is in effect and order reduced 

payments by handlers to participating dairy operations that exceed 

the applicable percentage of the participating dairy operation’s stabilization program base under certain circumstances. (Section 

1432) 


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The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(27) Milk Marketings Information 

The Senate amendment requires the Secretary to establish a 

process to collect from participating dairy operations and handlers 

such information that the Secretary considers necessary for each 

month during which the stabilization program is in effect. (Section 

1433) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position (but see 

Section 1405(c)). 

(28) Calculation and Collection of Reduced Dairy Operation Payments 

The Senate amendment requires each handler, during any 

month in which payment reductions are in effect under the stabilization program, to reduce payments to each participating dairy 

operation from whom the handler receives milk. (Section 1435) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(29) Remitting Funds to the Secretary and Use of Funds 

The Senate amendment requires, as soon as practicable after 

the end of each month during which payment reductions are in effect under the stabilization program, each handler to remit to the 

Secretary an amount equal to the amount by which payments to 

participating dairy operations are reduced by the handler under 

section 1434. (Section 1435) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(30) Suspension of Reduced Payment Requirement 

The Senate amendment requires reduced payments to be suspended under certain circumstances. (Section 1436) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(31) Enforcement 

The Senate amendment makes it unlawful and a violation of 

this subpart for any person subject to the stabilization program to 

willfully fail, refuse to provide, or delay the timely reporting of accurate information and remittance of funds to the Secretary. (Section 1437) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(32) Audit Requirements 

The Senate amendment authorizes the Secretary to conduct 

audits to ensure compliance by participating dairy operations and 

handlers with the stabilization program. (Section 1438) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 


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(33) Study; Report 

The Senate amendment requires the Secretary, acting through 

the Office of the Chief Economist, to conduct a study of the impacts 

of the program established under section 1431(a). (Section 1451) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(34) Duration 

The Senate amendment terminates the production margin protection program and the stabilization program on December 31, 

2018. (Section 1439) 

The House bill has no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 1409) 

(35) Rulemaking 

The House bill requires the promulgation of regulations for the 

initiation of the margin insurance program. It also requires administration of the margin insurance program to comply with the Administrative Procedure Act, but does not require compliance with 

the Paperwork Reduction Act. It repeals the deadline for the Secretary to consider the state of California’s reentry into the federal 

milk marketing order system. (Section 1402) 

The Senate amendment requires the Secretary to promulgate 

regulations to address administrative and enforcement issues involved in carrying out the production margin protection, supplemental production margin protection, and market stabilization programs. It also requires regulations for an appeals process. (Section 

1452) 

The Conference substitute adopts the House provision with an 

amendment. The amendment requires the Secretary to promulgate 

regulations to address administrative and enforcement issues and 

prohibit reconstitution of a dairy operation for the purpose of the 

dairy producer receiving margin protection payments. (Section 

1410). 

The Managers intend for the Secretary to conduct a hearing 

prior to the issuance of an order designating the State of California 

as a Federal milk marketing order. The provision provides the Secretary of Agriculture with the discretion, if a California Federal 

milk marketing order is requested, to recognize the longstanding 

California quota system, established under state marketing regulations, in whatever manner is appropriate on the basis of a rulemaking hearing record. 

Section 1504 of the Food, Conservation, and Energy Act of 

2008 amended the Agricultural Adjustment Act (7 U.S.C. 608c) to 

establish timeframes for the hearing process for amending federal 

milk marketing orders. The Managers expect the Secretary to adhere to such timeframes, to the maximum extent practicable, for 

the process of designating California as a Federal milk marketing 

order. 

(36) Dairy Product Mandatory Reporting 

The Senate amendment changes the dairy product mandatory 

reporting process so that each manufacturer has to report to the 


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Secretary, more frequently than once per month, information concerning the price, quantity, and moisture content of dairy products 

sold by the manufacturer. (Section 1461) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(37) Federal Milk Marketing Order Program Pre-Hearing Procedure 

for Class III pricing 

The Senate amendment requires the Secretary to use the prehearing procedure described in this section to consider alternative 

formulas for Class III milk product pricing under section 8c of the 

Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with 

amendments by the Agricultural Marketing Agreement Act of 1937. 

(Section 1462) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

The Managers have heard concerns from various dairy stakeholders in regards to the Class III and Class IV milk product pricing systems. The Managers recognize that the Secretary has the 

authority and ability to conduct a pre-hearing procedure to consider alternative pricing formulas for Class III and Class IV milk 

products. If petitioned by industry, the Secretary is encouraged to 

engage in public, pre-hearing information sessions that allow the 

opportunity for interested parties to discuss alternative price formula proposals. The Managers believe that through review of proposals from interested parties, this process will help address concerns from industry, assist with the stabilization of the price of 

milk and provide greater certainty for dairy producers. It is the 

Managers understanding that the Dairy Industry Advisory Committee has recommended that the Secretary take such action and 

review interested party proposals to address Class III and Class IV 

pricing formula changes in this participatory and transparent manner. 

(38) Repeal of Dairy product Support and MILC programs 

The House bill repeals both sections of current law that establish the dairy product support and MILC programs. (Section 1411) 

The Senate amendment is similar to the House bill but continues MILC payments at the 45% payment rate through June 30, 

2014. MILC is repealed effective July 1, 2014. It repeals the Dairy 

Export Incentive Program, and extends the Dairy Forward Pricing 

Program, the Dairy Indemnity Program, and the Dairy Promotion 

and Research Program. (Sections 1471–1475) 

The Conference substitute adopts the Senate provisions. (Section 1422) 

(39) Repeal of the Federal Milk Marketing Order Review Commission 

The House bill repeals section 1509 of the Food, Conservation 

Act of 2008. (Section 1416) 

The Senate amendment extends the order review commission. 

(Section 1476) 

The Conference substitute adopts the House provision. (Section 

1427) 


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(40) Federal Milk Marketing Orders 

The Senate amendment requires the Secretary to provide an 

analysis on the effects of amending each Federal milk marketing 

order issued under section 8c of the Agricultural Adjustment Act. 

(Section 1481) 

The House bill has no comparable provision. 

The Conference substitute adopts the House position. 

(41) Supplemental Agriculture Disaster Assistance 

The House bill provides definitions as necessary to carry out 

the Livestock Indemnity Program. The provision requires Livestock 

Indemnity Payments to be made to eligible producers from funds 

of the Commodity Credit Corporation (CCC) for fiscal year 2012 

and each succeeding fiscal year with respect to livestock losses in 

excess of normal mortality due to adverse weather or attacks by 

federally reintroduced animals, including wolves or avian predators. The provision provides for an indemnity rate of 75% of the 

market value of the applicable livestock. The provision provides 

definitions as necessary to carry out the Livestock Forage Program. 

The provision requires that, for the 2012 and each succeeding fiscal 

year, the Livestock Forage Program must provide compensation 

from the funds of the CCC for losses to eligible livestock producers 

due to grazing losses on account of prescribed drought conditions 

or fire. The provision provides that an eligible producer may receive assistance only for grazing losses for covered livestock on land 

that is native or improved pastureland with permanent vegetative 

cover or is planted to a crop for the purpose of providing grazing 

for covered livestock. The provision excludes assistance for grazing 

losses on land used for haying or grazing under a CRP contract. 

The provision establishes that in the case of drought, a payment 

rate for a single month is to be equal to 60 percent of the lesser 

of the monthly feed cost for covered livestock, owned or leased, or 

the monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land. The provision requires a payment rate of 80 percent of the aforementioned payment rate in the 

case of an eligible livestock producer that sold or disposed of livestock due to drought in one or both of the two production years preceding the current production year. The provision also prescribes 

the means by which monthly feed costs, feed grain equivalents, and 

corn price per pound are determined. The provision requires the 

Secretary to determine normal carrying capacity and normal grazing period in the county served by the applicable committee and 

prohibits any change in the determination without the request of 

the State and county FSA committees. The provision establishes a 

schedule of payments to be made to producers in D2, D3, and D4 

drought conditions as follows: D2 for at least 8 consecutive weeks, 

1 monthly payment; D3 for any period, 3 monthly payments; D3 for 

at least 4 weeks or D4 any time, 4 monthly payments; D4 for at 

least 4 weeks, 5 monthly payments. The provision establishes assistance for eligible livestock producers that sustain grazing losses 

on federal lands when a federal agency prohibits grazing on the 

federal lands due to fire at a rate equal to 50 percent of the monthly feed cost. The provision further establishes that such producers 

are eligible for assistance beginning on the date they are denied 


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grazing on federal lands until such time that their lease expires. 

The provision prohibits duplicative drought and fire payments covering the same losses. The provision requires the Secretary to use 

not more than $20 million of CCC funds for each of the 2012 and 

succeeding fiscal years to provide emergency relief to eligible producers of livestock, honey bees, and farm raised fish to help in the 

reduction of losses due to disease, adverse weather, or other conditions not covered under Livestock Indemnity Payments or the Livestock Forage Disaster Program. The provision requires that funds 

be used to reduce losses due to feed or water shortages, disease, or 

other factors determined by the Secretary and that the funds be 

available until expended. The provision contains definitions as necessary to carry out the Tree Assistance Program. The provision requires the Secretary to use CCC funds for each of the 2012 and 

subsequent fiscal years to provide assistance to eligible orchardists 

and nursery tree growers that planted and lost trees intended for 

commercial purposes due to natural disaster, and orchardists and 

nursery tree growers that have a production history for commercial 

purposes but lost trees due to natural disaster. The provision requires a tree mortality loss in excess of 15 percent to qualify for 

assistance with assistance consisting of 65 percent of the cost of replanting trees lost in excess of 15 percent or, at the Secretary’s discretion, sufficient seedling to reestablish a stand, and 50 percent of 

the cost of pruning, removal, and other costs incurred to salvage 

existing trees or to prepare land to replant trees, in excess of 15 

percent. The provision establishes a $125,000 payment limit under 

the Tree Assistance Program, with a 500 acre cap as well. The provision also provides for a $125,000 payment limit on assistance provided under section 1501, with direct attribution requirements. The 

provision omits the minimum risk management purchase requirement and does not reauthorize the SURE program of the 2008 

Farm Bill. (Section 1501) 

The Senate amendment is similar to the House provision, except that definitions vary; programs required under subtitle E are 

authorized for the 2014 through 2018 fiscal years; payment rates 

under the Livestock Indemnity Program are established at 65 percent of the market value; the functions of other programs are folded into the Livestock Forage Program, including the noninsured 

crop disaster program, the emergency assistance for livestock, 

honey bees, and farm-raised fish program, and the Livestock Forage Disaster Program; Livestock Forage Disaster Program assistance is not excluded on CRP contract acreage if the land is grassland eligible; the monthly payment rate under the Livestock Forage Disaster Program is 50 percent; the calculation for determining 

the corn price per pound is based on a different corn price; the normal grazing period under the Livestock Forage Disaster Program 

may not exceed 240 days; the drought intensity payment schedule 

is distinguished from the House bill as follows: D3 at any time, 2 

monthly payments, and D3 for 4 weeks or D4 at any time, 3 

monthly payments; authorizes annual payments based on drought 

determined by means other than the drought monitor and assistance for eligible forage losses due to other than drought or fire; up 

to $15 million for each fiscal year is authorized under the Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish; 


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the payment limits imposed on the Tree Assistance Program is 

$100,000 and the limit under the section is also $100,000; and the 

timing of payments is prescribed. (Section 1501) 

The Conference substitute adopts the House provision. (Section 

1501) 

The Managers intend that, with respect to any livestock program signup for 2012, 2013, or 2014, the Secretary be flexible in 

establishing signup deadlines. In past years, when livestock programs have had a firm signup date for one year and another 

signup begins for the following year soon thereafter, it is easy for 

producers to confuse the years for which an application has been 

filed and those that have not. Limited county office budgets for 

mailings exacerbate this problem. The Managers also recognize 

that in many cases producers will have to compile records on livestock inventories by type and weight along with the number of livestock purchased and sold, for example, for much of the past three 

years. As such, the Managers intend that, with regard to 2012 and 

2013, the Secretary take into consideration that the compilation of 

records by the producer can be extremely difficult or even impossible and to exercise flexibility when determining what constitutes 

an acceptable record. 

(42) National Drought Council and National Drought Policy Action 

Plan 

The House bill establishes in the Office of the Secretary a ‘‘National Drought Council.’’ (Section 1502) 

The Senate amendment has no comparable provision. 

The Conference substitute deletes the House provision. 

Significant droughts have occurred in the United States more 

than a dozen times since 1900. The 2012 drought, while serious, 

was not unprecedented. The U.S. has faced similar or worse conditions in the 1930’s, 1950’s and 1988. However, the period from 

2000–2013 was the worst consecutive period of drought since the 

1930’s, surpassing that of the 1950’s. The drought conditions 

throughout the United States in 2012 had an estimated cost of $30 

billion to the agriculture sector alone. Impacts were also felt by 

communities through losses due to reduced water and energy resources, reduced recreation revenue, increased wildfires, and dustborne diseases, among others. These impacts highlight the need to 

better align Federal, state and local drought policies. 

The Managers understand that a National Drought Resilience 

Partnership was established in November of 2013 to promote 

strong partnerships between the Federal agencies and to make it 

easier for communities to access Federal drought resources. The 

Managers expect the Secretary to make local, state, and tribal 

stakeholders an integral part of constructing national drought preparedness and response policy. As part of that process, the Secretary should provide clear and easy opportunities for those stakeholders to have a role in the Partnership, including creating a plan 

to coordinate federal polices with state and local policies and establishing robust outreach with communities. 


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(43) Administration Generally 

The House bill requires the Secretary to use the funds, facilities, and authorities of the Commodity Credit Corporation (CCC) to 

carry out this title and provides that determinations made by the 

Secretary under this title are final and conclusive. The section further requires that except as otherwise required in this subsection, 

the Secretary and the CCC must promulgate necessary regulations 

to implement this title and amendments made by this title within 

90 days of enactment of this Act. The section requires that regulations and administration of this title and amendments made by 

this title as well as sections 10003 and 10016 (supplemental coverage option and stacked income protection for producers of upland 

cotton) of this Act are made in compliance with the Administrative 

Procedures Act (APA) but without regard to the Paperwork Reduction Act or the Statement of Policy of the Secretary of Agriculture. 

The section also carries over adjustment authority relating to trade 

agreement compliance from the 2008 Farm Bill. (Section 1601) 

The Senate amendment is similar to the House except that the 

regulations and administration of the title are not subject to the 

APA and the Congressional review of agency rulemaking provision 

from the 2008 Farm Bill is carried over. (Section 1601) 

The Conference substitute adopts the Senate provision. (Section 1601) 

(44) Repeal of Permanent Price Support Authority 

The House bill repeals specific sections of the Agriculture Adjustment Act of 1938 and the Agriculture Act of 1949 historically 

suspended under previous Farm Bills during their effective period 

except section 377 of the 1938 Act which is suspended during the 

period of the new Farm Bill as it relates to cotton. (Section 1602) 

The Senate amendment is the same as current law except the 

suspensions are applicable to the 2014 through 2018 crop years 

and through December 31, 2018, in the case of dairy. (Section 1602) 

The Conference substitute adopts the Senate provision. (Section 1602) 

The Managers note that, along with the suspension of other 

authorities, the general permanent price support authority provided under 7 U.S.C. 1446(a) must be suspended by the 2014 Farm 

Bill, as it has been under previous Farm Bills, since section 1446(a) 

would otherwise require USDA to make available price support for 

the commodities specified in subsection (a) in a manner that is in 

accordance or consistent (i.e., not incompatible or in conflict) with 

the support required to be provided to other commodities under 

Title II (7 U.S.C. 1446 et. seq.), including as prescribed or previously carried out under 7 U.S.C. 1446(b), (c), or (f), or in any combination of these approaches. In sum, 7 U.S.C. 1446(a) provides 

broad authority to offer the required price support in a manner 

that is consistent with the tenor of price support provided elsewhere in Title II, and must be suspended for the effective period 

of the 2014 Farm Bill. Finally, the Managers would observe that 

there are also additional authorities, including under the other titles of 7 U.S.C. 1421 et. seq., that apply to certain commodities 

specified in 7 U.S.C. 1446(a). Therefore, the additional authorities 

provided under 7 U.S.C. 1421 et. seq., as they relate to certain 


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commodities under 7 U.S.C. 1446(a), must also be suspended for 

the effective period of the 2014 Farm Bill. This section accomplishes these objectives. 

(45) Payment Limitations 

The House bill defines legal entity, excluding general partnerships or joint ventures. The section imposes a limit on the amount 

of payments indirectly or directly received by a person or legal entity for covered commodities and peanuts under Title I to not more 

than $125,000, with not more than $75,000 consisting of marketing 

loan gains and loan deficiency payments and not more than 

$50,000 consisting of other payments made with respect to covered 

commodities and peanuts under Title I. The section also sets forth 

spousal equity rules for pay limit purposes, limiting the amount a 

person and spouse may jointly receive to double the enumerated 

limits; provides for conforming amendments; and makes the limits 

effective in time for the 2014 crop year. (Section 1603) 

The Senate amendment limits the total amount of payments 

received, directly or indirectly, by a person or legal entity (except 

a joint venture or general partnership) for any crop year under subtitle A of title I of the Act to $50,000 for peanuts and $50,000 for 

1 or more other covered commodities. The section provides that the 

total amount of marketing loan gains and loan deficiency payments 

received for peanuts may not exceed $75,000 and for 1 or more 

other loan commodities may not exceed $75,000. The section provides for conforming amendments and that the section is to be effective in time for the 2014 crop year. (Section 1603) 

The Conference substitute adopts the House provision, except 

that the House definition of legal entity is dropped, a separate payment limit for peanuts is maintained, limitations within the overall 

payment limit of $125,000 are omitted, and the proposed change to 

the spousal rule is also dropped. (Section 1603) 

The Managers note that the 2008 Farm Bill provided for a $65,000 payment limitation for Countercyclical Payments and 

ACRE; a $40,000 payment limitation for Direct Payments; unlimited marketing loan gains (MLGs) and loan deficiency payments 

(LDPs); as well as $100,000 under the SURE program for a combined total of $205,000, not including marketing loan gains and 

LDPs. The payment limitations provided for the suite of policies in 

this section that are intended to replace the 2008 Farm Bill provisions in terms of risks covered are $80,000 less and the cap on payments includes MLGs and LDPs. Specifically, this section provides 

for one cap of $125,000 under which all PLC, ARC, MLGs, and 

LDPs must fit. The Managers would particularly stress that this 

amount does not include any benefit derived by the producer from 

forfeitures. The Managers fully intend that the marketing assistance loan continue to operate as a nonrecourse loan. The Managers 

intend that nothing in this section shall be construed to limit the 

right of a producer to forfeit the crop which the producer has 

pledged as collateral in full satisfaction of the loan. 

(46) Payment Limited to Active Farmers 

The House bill qualifies how farm managers can qualify as actively engaged in the farming operation. (Section 1603A) 


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The Senate amendment is similar to the House bill except with 

respect to the Farm Managers provision. (Section 1604) 

The Conference substitute adopts the House provision, except 

that amendments made to the Food Security Act of 1985 are 

dropped and instead a new regulation is required to be promulgated within a specified period of time and with opportunity for notice and comment. The substitute requires the regulation to define 

significant contribution of active personal management for purposes of carrying out the applicable statute. The substitute further 

provides that the regulations may, where appropriate, include limits on the number of individuals who may be considered actively 

engaged when a significant contribution of active personal management is the basis used by an individual or entity to meet actively 

engaged requirements under the law. The regulation is required to 

take into account the size, nature, and management requirements 

of farming operations, the changing nature of active personal management due to advancement of farming operations, and the degree 

to which the impact of the regulation would adversely impact the 

long-term viability of the farm. The substitute provides that the 

regulation does not apply to individuals or entities comprised solely 

of family members. The substitute requires that the regulation include a plan for monitoring the status of compliance reviews, and 

prohibits the imposition of any additional paperwork burdens associated with the new regulation on those not subject to the new regulation. Finally, the substitute clarifies that the provision is not to 

be construed as authorizing broader regulations, and requires that 

the regulation promulgated apply beginning with the 2015 crop 

year. (Section 1604) 

The Managers note that the purpose of this rulemaking is to 

strengthen the verification process for members of a farming operation claiming to be actively engaged under section 1001A of the 

Food Security Act of 1985 on the basis of a significant contribution 

of active personal management. From that definition, the Managers 

intend that the Secretary will develop clear and objective standards 

that can be easily measured and accounted for by members of the 

farming operation. The Managers would also stress that this section in no way changes any aspect of current applicable law, referring in this Act to the breadth of title 7 of the United States Code. 

Rather, the Managers intend that the section only authorizes a 

rulemaking to modify current regulations to add clarity and objectivity where this section specifically requires in order to better enforce existing law. 

The Managers recognize with the inclusion of subsection (c) 

that family farming operations are an important part of American 

agriculture. The Managers do not intend the regulations promulgated pursuant to this subsection to adversely affect the manner in 

which such family farms allocate responsibilities among the members of their family. However, the Managers also do not intend for 

subsection (c) to overly restrict the Secretary’s authority to implement the reforms under this section, and intend for the term entity 

to include the entity ultimately receiving the payment. 

The Managers further intend that the Secretary will develop 

standards that are fair, equitable, and will enhance program integrity. The Managers are aware that under current rules the agency 


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has had difficulty in determining the significance of a management 

contribution. The Managers also understand that this difficulty is 

often exacerbated when the person considered to be actively engaged lives a significant distance from the farming operation or 

does not visit the farming operation on a regular basis. 

The Managers intend that the Secretary take into account the 

size and complexity of farming operations across different regions 

of the country. Further, the Managers intend that the Secretary 

will look carefully at certain activities or services that a person 

may perform which have a significant impact on the long-term viability of the farming operation. In particular, the Managers expect 

that the Secretary will give careful consideration to the following 

activities: labor contracting; decisions made to achieve regulatory 

compliance; marketing, including hedging and forward contracting; 

financing, including securing production loans; land utilization 

management, including conservation planning; decisions made regarding risk management and legal liability, including insurance 

coverage; decisions made regarding cropping choices; input purchasing; and decisions made regarding equipment, including purchases, financing, and maintenance. The Managers also intend for 

the Secretary to take into account the changing nature of active 

personal management due to technological and economic advancements of farming operations, including crop genetics, farming practices such as no-till and minimal-till farming, and telecommuting. 

The Managers intend that any additional paperwork required 

by these new requirements be focused solely on the individuals and 

entities subject to the new requirements. Finally, the Managers 

urge the Secretary to be mindful that stable, predictable and equitable farm policy is essential to the continued viability of commercial farming operations that need access to financing for annual 

production costs, equipment, and land. Lastly, the Managers stress 

that accessibility to a strong farm safety net is important to continued prosperity in rural America, particularly in small towns where 

agriculture is at the center of the local economy. 

(47) Adjusted Gross Income Limitation 

The House bill makes changes to Section 1001D of the Food 

Security Act of 1985. The section replaces the two income limitation tests (farm and non-farm incomes) with a single $950,000 adjusted gross income limitation for certain commodity programs as 

well as conservation programs. The section applies the new limit 

to payments under the Farm Risk Management Election, marketing loan gains or loan deficiency payments, payments from Supplemental Agricultural Disaster Assistance Programs, payments 

from conservation programs, the Agriculture Management Assistance program authorized in the Federal Crop Insurance Act, and 

payments from the Noninsured Crop Disaster Assistance Program. 

The section requires that payment limits in effect on the day before 

the enactment of this Act apply to the 2013 crop, fiscal or program 

year. (Section 1604) 

The Senate amendment makes changes to Section 1001D of the 

Food Security Act of 1985. The section replaces the two income limitation tests (farm and nonfarm incomes) with a single $750,000 

adjusted gross income limitation for commodity programs if the avVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00397 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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erage adjusted gross income over the last 3 taxable years is in excess of $750,000. The section applies the new limit to payments 

under the Adverse Market Program and the Agriculture Risk Coverage program, marketing loan gains or loan deficiency payments, 

payments from Supplemental Agricultural Disaster Assistance Programs, and payments from the Noninsured Crop Disaster Assistance Program. (Section 1605) 

The Conference substitute adopts the House provision except that the AGI limitation is established at $900,000. 

(48) Geographically Disadvantaged Farmers and Ranchers 

The House bill is the same as current law except authorizes 

payments for fiscal year 2009 and each succeeding fiscal year. (Section 1605) 

The Senate amendment extends current law through fiscal 

year 2018. (Section 1606) 

The Conference substitute adopts the House provision. (Section 

1605) 

(49) Appeals 

The Senate amendment amends the current appeals process by 

clarifying, among other things, that the Director of the National 

Appeals Division shall be free from the direction and control of any 

person other than the Secretary or the Deputy Secretary of Agriculture. (Section 1609) 

The House bill has no comparable provision. 

The Conference substitute adopts the Senate provision (Section 

1610) 

(50) Technical Corrections 

The House bill includes technical corrections. (Section 1608) 

The Senate amendment includes technical corrections. (Section 

1610) 

The Conference substitute adopts the House provision with a 

technical change. 

(51) Implementation 

The House bill requires the Secretary to seek to reduce administrative burdens and costs to producers by streamlining and reducing paperwork, forms, and other administrative requirements; improve coordination, information sharing, and administrative work 

with the Risk Management Agency and the Natural Resources 

Conservation Service; and take advantage of new technologies to 

enhance efficiency and effectiveness of program delivery to producers. The section also requires the Secretary to maintain records 

on base acres and payment yields from the 2008 Farm Bill. The 

section also requires the Secretary to maintain records for the separate base acres of long grain rice and medium grain rice subject 

to the total base under the 2008 Farm Bill and any adjustment. 

The section requires the Secretary to make $100 million available 

to the Farm Service Agency to carry out this title. (Section 1612) 

The Senate amendment has similar streamlining requirements 

but does not require maintenance of base acres and payment 

yields. The section also requires the Secretary to maintain a record 


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of farms with upland cotton base acres in effect on the day before 

the date of enactment of this Act and to make $97 million available 

to the Farm Service Agency to carry out this title. (Section 1614) 

The Conference substitute adopts the House provision but adds 

the requirement that the Acreage Crop Reporting and Streamlining 

Initiative (ACRSI) be implemented and that the ACRSI ensure that 

a producer, or an agent of the producer acting on the producer’s behalf, may report information (including geospatial information) to 

USDA either electronically or conventionally; that upon the request 

of the producer or the agent of the producer, USDA must electronically share with the producer or the agent of the producer, in real 

time and without cost, common land unit data, related farm level 

data, and other information of the producer; that this reporting and 

sharing of information must comply with existing privacy requirements. The substitute also provides an additional $10 million to 

the Farm Service Agency on October 1, 2014 if the Secretary notifies the Agriculture Committees of Congress by September 30, 2014 

that substantial progress has been made in implementing ACRSI 

and the reporting and sharing requirements of this section. An additional $10 million is also provided to FSA if by September 30, 

2015 the Secretary reports to the Agriculture Committees that 

these requirements have been fully implemented and the Committees concur, with the added funding available on the later of the 

date of concurrence or October 1, 2015. The substitute further provides that of the base amount of implementation dollars provided 

to FSA under this section, $3 million is to be provided by the Secretary to state extension services or equivalent agencies for producer education concerning subtitles A, D, and E of this title and 

under section 196 of the Federal Agriculture Improvement and Reform Act of 1996. The substitute also requires the Secretary to engage one or more qualified universities to develop web-based decision aids to assist producers in understanding available options 

under subtitle A, with the FSA required to obligate funds for this 

purpose within 30 days of enactment of the Farm Bill and webbased decision aids to be made available to producers via the internet within 45 days, and with $3 million provided for this purpose. 

Finally, the substitute provides loan implementation requirements. 

(Section 1613) 

The Managers intend by this section and the implementation 

section within the Crop Insurance Title of this Act for the Secretary to undertake the streamlining efforts prescribed. As part of 

the implementation of ACRSI, the Managers intend for the Secretary to provide for an expedited means for the reporting and 

sharing of information as required under this section. The Managers would particularly note that this information is the private 

and proprietary information of the producer and, as such, is strictly 

protected by statute from disclosure, with very limited and specifically prescribed exceptions, including disclosures made upon the 

consent of the agricultural producer or owner of the agricultural 

land. The Managers intend that an agent of the producer evidence 

the consent of the producer when acting on the producer’s behalf 

in the reporting and sharing of information in a manner that complies with the requirements of section 1619 of the 2008 Farm Bill 


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and without unnecessarily encumbering or delaying the reporting 

and sharing. 

The Managers also intend that regulations be quickly finalized 

to allow a Farm Storage Facility Loan of up to $100,000 with no 

additional security. The Managers recognize that the Farm Service 

Agency had properly implemented the program in this manner, 

consistent with Congressional intent, from August of 2012 to February of 2013 before the program reverted back to $50,000 with no 

additional security. The Managers commend FSA for the agency’s 

work to fulfill Congressional intent and intend that regulations to 

allow a Farm Storage Facility Loan of $100,000 with no additional 

security be finalized and implemented without further delay. 

The Managers intend, with respect to loan implementation, 

that the Secretary would use the authority provided to carry out 

loans described in subsection (d) in a manner where the loans to 

producers would be administered as though an order described in 

that subsection had not been issued for that crop year. The Managers intend that the administration of this subsection not result 

in the disruption or delay in the orderly marketing of commodities 

under loans. The Managers intend that a producer that repays a 

loan under subtitles B or C at an amount equal to the loan rate 

for the applicable commodity plus interest must repay the amount 

that is provided pursuant to subsection (d). The Managers do not 

intend that the amount provided pursuant to subsection (d) be repaid in the case of a producer receiving a loan deficiency payment, 

a marketing loan gain benefit, or a benefit derived from the forfeiture of a commodity. 

(52) Protection of Producer Information 

The House bill prohibits the Secretary of Agriculture or officials or employees of other federal agencies from releasing certain 

information given to the government pursuant to Title I or Title II 

of this Act or other information provided by a producer or owner 

of agricultural land in order to participate in USDA or other federal agency programs. The section provides for limited exceptions 

to the rule and a requirement that disclosures made under these 

exceptions be reported to the Agriculture Committees. (Section 

1613) 

The Senate amendment has no comparable provision. 

The Conference substitute deletes the House provision. 

TITLE II—CONSERVATION

SUBTITLE A—CONSERVATION RESERVE PROGRAM

(1) Extension and Enrollment Requirements 

The House bill amends the maximum acres as follows: 

27,500,000 acres in fiscal year 2014; 26,000,000 acres in fiscal year 

2015; 25,000,000 acres in fiscal year 2016; 24,000,000 acres in fiscal year 2017; and 24,000,000 acres in fiscal year 2018. Additionally, the House bill caps grassland enrollment at 2,000,000 acres at 

any one time. (Section 2001) 

The Senate amendment amends the maximum acres as follows: 30,000,000 acres in fiscal year 2014; 27,500,000 acres in fiscal 


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year 2015; 26,500,000 acres in fiscal year 2016; 25,500,000 acres in 

fiscal year 2017; and 25,000,000 acres in fiscal year 2018. Additionally, the Senate amendment caps grassland enrollment at 

1,500,000 acres at any one time. (Section 2001) 

The Conference substitute adopts the House provision. (Section 

2001) 

The Managers agreed to an overall reduction in the maximum 

acres that could be enrolled in the Conservation Reserve Program 

(CRP), however, this should not serve as an indicator of declining 

support for CRP. The Managers intend for CRP to be implemented 

at authorized levels, using the statutory flexibility, and for the program to continue as one of USDA’s key conservation programs in 

concert with working lands conservation efforts. 

Within the overall acreage cap, the Conference substitute provides for grasslands to be enrolled in CRP and authorizes the Secretary to grant priority to lands expiring from current CRP contracts that will retain grass cover. This modification accommodates 

acreage that previously would have been eligible for short-term 

rental contracts under the Grassland Reserve Program (GRP) for 

working grasslands. 

The specific priority designations for the Chesapeake Bay Region, the Great Lakes Region, and the Long Island Sound Region 

are removed. The authority for the Secretary to designate conservation priority areas is retained, recognizing the importance of the 

program for addressing regional and State-identified areas of special environmental sensitivity. 

(2) Farmable Wetland Program 

The House bill decreases the overall cap to 750,000 acres. (Section 2002) 

The Senate amendment contains no comparable amendments 

and maintains the current law cap of 1,000,000. (Section 2002) 

The Conference substitute adopts the House provision with an 

amendment to include a clerical amendment from the Senate language. (Section 2002) 

(3) Duties of the Secretary 

The House bill amends current law by striking ‘‘allotment history’’ and by moving out certain activities from section 1232(a)(8). 

Additionally, the House bill permits certain activities in case of 

drought or other emergency caused by a natural disaster where the 

activity may occur without a reduction in the rental rate. The bill 

includes a reduction of not less than 25 percent of the rental rate 

and establishes the frequency during which managed harvesting 

may be conducted as not more than once every three years. The bill 

also establishes the frequency during which routine grazing may 

occur at not more than once every two years and adds a new subsection that requires the Secretary to permit certain haying and 

grazing practices on grasslands specifically. Lastly, it includes a 

provision for individuals with expiring contracts to initiate conservation and land improvement practices in the final year of contract. To comply, an owner or operator must develop and implement a conservation plan for these activities. Re-enrollment of such 

lands is prohibited for five years. (Section 2004) 


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The Senate amendment is similar to the House. However, it 

specifies flooding as an emergency for the purposes of carrying out 

certain activities without a reduction in the rental rate payment. 

Such other emergencies do not need to be a result of a natural disaster. Additionally, the Senate amendment allows for limited grazing by a beginning farmer or rancher without any reduction in the 

rental rate and includes habitat during the primary nesting season 

for critical birds. The Senate amendment establishes a frequency 

during which managed harvesting may be conducted at least once 

every five but not more than once every three years and allows for 

prescribed grazing for the control of invasive species to occur annually. The frequency for routine grazing is similar to the House bill. 

However, the Senate amendment specifies that the Secretary must 

take into account the presence of threatened or endangered wildlife 

and wildlife habitat and requires conservation and land improvement practices in the last year of the contract to maintain the protection of highly erodible land. Lastly, it states that the annual 

payment amount shall be reduced by an amount commensurate 

with any income or compensation received as a result of these activities. (Section 2004) 

The Conference substitute adopts the House provision by eliminating ‘‘allotment history.’’ The substitute adopts the Senate language including flooding or other emergencies as an emergency not 

a result of a natural disaster and adds limited grazing by livestock 

of a beginning farmer or rancher without a reduction in rental rate. 

The Conference substitute did not specify the range of situations under which CRP could be used to mitigate the impacts on 

agricultural producers resulting from adverse and extreme weather 

events or conditions. While these acres can provide additional forage when they are located within the disaster footprint, these forages also could assist in meeting livestock forage needs when near 

to the affected area, or when CRP contract holders are willing to 

make their forage available to those affected by the emergency, or 

when flooding displaces grazing livestock. The Managers expect the 

Secretary to make this forage available in response to disasters 

that affect other producers without regard to the location of the enrolled lands. This section establishes the frequency of harvesting 

and routine grazing on acres enrolled in CRP contracts, consistent 

with a conservation plan, and provides for the incidental use of 

buffers adjacent to agricultural lands. 

Authorized activities for newly eligible grasslands include grazing, haying, mowing, or harvesting for seed production. The Secretary shall permit activities such as fire pre-suppression, rehabilitation and construction of fire breaks, fencing, livestock watering, 

and necessary cultural practices. These uses of the land are consistent with those allowed for existing GRP rental contracts and 

are carried over here to align with the authorized activities for 

those grasslands to be enrolled in the conservation reserve. 

The substitute adopts the Senate provision on primary nesting 

season with an amendment to change critical birds to birds in the 

local area that are in significant decline. 

The substitute adopts the Senate language on managed harvesting frequency, prescribed grazing for invasive species, and installation of wind turbines. 


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The substitute adopts the Senate provision on land improvement and practices in the last year of the contract with an amendment. The amendment limits applicability to enrolled land and 

clarifies that the land can be used for economic use. (Section 2004) 

Provisions are added to allow conservation and land improvement 

practices in the final year of a contract, with a commensurate reduction in rental value only when the participant derives economic 

benefit from use of the forage. Re-enrollment of lands modified 

through this provision is prohibited for at least five years. 

The Managers intend that the intensity of all specified activities permitted by the revisions to Section 1233(b) of current law be 

conducted in accordance with the parameters outlined in the statute. The Conference substitute also requires that specified activities are carried out in accordance with soil, water quality, and 

wildlife habitat conservation plans to control invasive species while 

also maintaining the health and viability of the established cover. 

The Secretary should not require management activities at the 

specified frequency when it is determined to be technically unnecessary for the cover because drought, fire, or other factors have reduced the need for such cover management action. Additionally, 

the Secretary, with advice from State Technical Committees, shall 

ensure that the frequency and duration of all specified activities 

permitted are reflected in associated conservation plans appropriate for the local climatic conditions, precipitation, soils, and 

other necessary factors in order to meet the purposes of the program. 

The revisions made to section 1233(b)(2) of the current statute 

clarify the intent of the Managers to expand some uses of the conservation reserve when the activities are consistent with and/or 

beneficial to the health and viability of the established cover. In 

doing so, the Managers focused on grasslands-related activities 

since grasslands are the predominant cover for the program. The 

Managers intend for this to be sufficient authority to allow such activities to occur when doing so would be a similar benefit to the 

health and vigor of the cover. For example, the pre-commercial 

thinning of pine plantings, or the harvesting of pine straw may be 

allowed with commensurate reduction of rental rates if these activities would be a technically accepted activity for improving the 

health and viability of the stand, as reflected in the conservation 

plan. The Managers encourage the Secretary to utilize options 

other than burning for the disposal of residue removed from CRP 

lands, as well as lands enrolled in a conservation easement, for 

contract management and maintenance. The Managers suggest the 

Secretary coordinate with state government officials to donate this 

residue to Indian tribes, small and disadvantaged farmers or other 

similar persons or entities. 

(4) Payments 

The House bill amends the payment section of CRP by eliminating in-kind payments. (Section 2005) 

The Senate amendment allows for incentive payments for 

thinning activities and allows for the National Agricultural Statistics Service (NASS) survey of dryland cash rental rates to be used 

as a factor in determining rental rates, as determined by the SecVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00403 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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retary. In addition to eliminating in-kind payments, the Senate 

amendment adds requirements that payments be made using funds 

from the Commodity Credit Corporation. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment strikes the Commodity Credit Corporation payment requirement. (Section 2005) The Managers recommend that the new authority provided under section 1234(c) is 

used by the Secretary to incentivize owners and operators to conduct practices and utilize management tools that would promote 

forest management, enhance the overall health of tree stands, improve the condition of resources, or provide valuable habitat for 

wildlife. Such practices and management tools should be used to 

encourage landowners to promote pine savannah habitat or other 

beneficial resource wildlife habitat practices such as tree thinning, 

disking, and prescribed burning. Further, the Managers intend for 

the Secretary to determine any other appropriate practices and 

management tools that could be employed to achieve the objective 

of the provision. The Managers acknowledge that similar authority 

was provided by the Food, Conservation, and Energy Act of 2008, 

but it did not achieve the goal of incentivizing owners and operators to conduct the necessary practices that section 1234(c) is intended to remedy. Under some situations, local market conditions 

will greatly affect the cost of implementing the appropriate forest 

management practices making them costly and difficult to implement. The Managers expect USDA to use the authority under section 1234(c) to provide incentive payments in an amount that will 

overcome any disincentive for owners and operators to implement 

these practices in order to improve the condition of the resources, 

promote forest management or enhance the wildlife habitat on the 

land. 

The Managers intend that CRP continue as one of USDA’s key 

conservation programs. The Managers remain concerned, however, 

that USDA does not offer annual payments to producers commensurate with local prevailing rental rates to ensure that enrollment 

is competitive with other land uses. The 2008 Farm Bill authorized 

the use of NASS surveys of cropland values; even so, the Managers 

are aware that in some parts of the country, CRP rental rates continue to trail—in some cases by a large margin—local prevailing 

rental rates. The Managers intend for USDA to use NASS survey 

data and other local data on cash rental rates and farmland prices, 

developed through land grant universities or other sources. The 

Managers expect USDA to review this data at least annually, and 

update CRP rental rates to reflect local prevailing rental rates. 

(5) Contract Requirements 

The House bill updates the early termination provisions to 

allow for an early termination option in fiscal year 2015 only of a 

contract that has been in effect for five years and expands the list 

of land that is eligible for early termination. Additionally, the 

House bill makes adjustments to the transition option provisions 

language to allow a retired farmer or rancher to transfer land to 

a beginning farmer or rancher to prepare such land to plant an agricultural crop. (Section 2006) 


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The Senate amendment adds ‘‘veteran farmer or rancher’’. 

(Section 2006) 

The Conference substitute adopts both the House and Senate 

provisions with amendment changing the year for offering early 

termination to fiscal year 2015. (Section 2006) 

The Managers are concerned that USDA has not been fully utilizing CRP technical assistance authorities and funding enacted in 

the 2008 Farm Bill for agency infrastructure, including outreach, 

training, and other technical services. The Managers expect USDA 

to better utilize this authority for internal support and to support 

outreach and partnerships with non-governmental organizations 

and other qualified entities to ensure that producers and landowners are fully aware of their options under the program. 

The Managers also encourage USDA to continue to make their 

staff available to attend meetings of agricultural producers at the 

local, State and national level to educate and inform producers of 

the programs available to meet natural resource needs on their operations. 

The Managers direct the Secretary to, within one year of enactment, report to Congress on the quality of land currently enrolled 

in CRP based on the land capability classification system, the 

erodibility index, other eligible lands criteria, and natural resource 

benefits. The report should include justification for using the prescribed environmental benefits index threshold for any acres enrolled into the program after enactment. The Secretary shall complete such a report five years thereafter and include the same information on land quality and decisions to enroll types of acres 

based on the environmental benefits index. If the decision is made 

to use a different environmental benefits index threshold or methodology for making decisions to enroll program contracts, reasons 

for the decision should be included in the report. 

Additionally the Managers direct the Secretary, within two 

years of enactment, to complete a comprehensive economic impact 

study that specifically evaluates the impact the CRP has had on 

rural communities. The report should include the average county 

rental rates and rental rates paid for CRP land. 

The Managers support ongoing USDA efforts to target the CRP 

through enrollment of highly-desirable practices such as buffers, 

filter strips, riparian buffers, acreage of importance to States and 

local communities, certain wetlands, duck and upland bird habitat 

buffers, highly erodible land, longleaf pine, and pollinator habitat. 

This widely-supported targeting effort ensures that critical acreage 

is protected and productive land remains available for production. 

The Managers intend that USDA accelerate this evolution of targeted practices to include important natural resource priorities. Examples of such priorities include: water quality and quantity, wildlife habitat, and recreation purposes. The Managers encourage the 

Secretary to include the use of potentially larger tracts than have 

previously been awarded a contract in order to continue meeting 

wildlife habitat needs. 

In addition to the Managers’ intention that USDA expand the 

use of continuous and Conservation Reserve Enhancement Program (CREP) practices, the Managers understand that there are 

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uous practices, including State Acres for Wildlife Enhancement or 

so-called ‘‘SAFE’’ acres. The Managers encourage the Secretary to 

continue efforts to meet the demand for these practices, which have 

proved popular in some states. The Managers also expect the Secretary to utilize these acres to meet demand for acreage that will 

impact threatened or endangered species or species of economic significance in a state or region. 

The Managers also intend that the provisions in section 2602 

regarding availability of Commodity Credit Corporation funding for 

farm bill conservation programs will ensure the Department has 

adequate acreage available to meet the demand for the various continuous practices. 

SUBTITLE B—CONSERVATION STEWARDSHIP PROGRAM

(6) Conservation Stewardship Program 

The House bill amends the definitions section to strike the definition of ‘‘conservation measurement tool’’ and thereby conform 

with later amendments; relocates the definition of ‘‘eligible land’’ 

and ‘‘agricultural operation’’ to the definitions section; adds pasture 

land to the list of eligible land; and expands other eligible agricultural areas to land capable of being used for livestock production. 

Additionally, it reauthorized the program for FY 2014 through 

2018. It states that to be eligible for CSP, a producer must demonstrate that, at the time of the contract offer, the producer meets 

or exceeds the stewardship threshold for at least two priority resource concerns. The House bill also states that in order to renew 

the contract, the producer must demonstrate compliance with the 

initial contract, agree to adopt and continue to integrate conservation activities, and at a minimum meet or exceed the threshold of 

at least two additional priority resource concerns or exceed the 

threshold for two existing priority resource concerns. Also, the 

House bill provides an annual enrollment limitation of 8,695,000 

acres for FY 2014 through 2021 and provides for additional payments to producers that agree to adopt or improve resource conserving crop rotations. (Section 2101) 

The Senate amendment is similar to the House bill, but does 

not include ‘‘capable of being used’’ for the production of livestock; 

adds improving and conserving the quality and condition of natural 

resources on purpose; and states that to be eligible for a payment 

under the Conservation Stewardship Program (CSP), a producer 

must demonstrate that, at the time of the contract offer, the producer is meeting the stewardship threshold for at least two priority 

resource concerns. Also, the amendment requires producers to 

agree to, at a minimum, meet or exceed the stewardship threshold 

for at least two additional priority resource concerns. Additionally, 

the Senate amendment provides an annual enrollment limitation of 

10,348,000 acres for FY 2012 through 2022. (Section 2101) 

The Conference substitute adopts the House provision to include land capable of being used for livestock production in the definition of other eligible land. Section 1238D in the Conference substitute streamlines and consolidates key definitions for the program. The meaning of agricultural operation is consistent with current law. Conservation activities involve conservation systems, 


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practices, and management measures. The term has an inclusive 

plain language meaning to encompass, for example, conservation 

planning. The Managers recognize that in developing a conservation plan, a producer incurs significant costs in time, labor, management, and foregone income. The specific mention in the statute 

of inclusions does not exclude conservation activities that are otherwise within the definition. The definition of conservation stewardship plan makes it clear the plan is to inventory and identify priority resource concerns and to contain the additional specified elements encompassing new as well as existing conservation activities. Eligible land is defined to mean private and tribal land on 

which agricultural commodities, livestock, or forest-related products are produced plus associated land on which priority resource 

concerns could be addressed through a contract under the program. 

A priority resource concern is defined to mean a natural resource concern or problem that is identified at the national, state, 

or local level as a priority for a particular area, and that represents 

a significant concern in a state or region that is likely to be addressed successfully through implementing conservation activities. 

The Managers understand that the process of identifying priority 

resource concerns should involve consultation at the state and local 

levels to the maximum extent practicable, such as with State Technical Committees and local work groups. The stewardship threshold is the level of management required to conserve and improve 

the quality and condition of a natural resource. The stewardship 

threshold for a natural resource is a science-based standard at an 

advanced level of conservation providing for the long-term continued productivity, use, and quality of the resource. 

The substitute adopts the Senate provision that includes improving and conserving the quality and condition of natural resources as a program purpose. 

The substitute adopts the House provision relating to the requirement that the producer meet or exceed the stewardship 

threshold of at least two priority resource concerns. It further 

adopts the House provision on the contract renewal requirement 

that the producer meet at least two additional resource concerns or 

exceed two existing resource concerns. The Managers encourage 

the Secretary to place emphasis on adopting new practices; with 

new contracts addressing at least one additional priority resource 

concern and renewing contracts that address at least two priority 

resource concerns. 

The substitute also adopts the House provision which allows 

eligible producers to receive supplemental payments for making improvements to resource-conserving crop rotations. The Managers 

intend for the supplemental payment to encourage producers to 

adopt new or additional beneficial crop rotations that provide significant conservation benefits. The payments are to be available to 

producers across the country and should not be limited to a particular crop, cropping system, or region of the country. In the 

Southeast, peanuts are an example of a crop that responds well to 

increased rotation lengths, which help peanut producers, conserve 

water, more effectively control disease, and reduce inputs to control 

disease and increase productivity. Alfalfa is another important rotation crop in many parts of the country and plays a role in adding 


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value to a producer’s operation as well as providing natural resource benefits. The Managers recognizes the very significant contributions that sorghum has made to resource conservation as a 

water-conserving crop and expects the Secretary to include sorghum in any supplemental payments for resource conserving crop 

rotations made available under the CSP. 

The substitute lists six criteria for ranking contract offers, prohibits giving a higher ranking to a contract offer based on the applicant’s willingness to accept a reduced payment, and allows the 

development and use of additional criteria to ensure national, 

state, and local priority resource concerns are addressed effectively. 

Such additional criteria, should they be developed and used, are 

not to supersede or be more heavily weighted than the six statutory ranking criteria. The language includes as one of six ranking 

factors ‘‘the number of applicable priority resource concerns proposed to be treated to meet or exceed the stewardship threshold by 

the end of the contract.’’ The Managers expect that, in using this 

factor to rank applications, the Natural Resources Conservation 

Service (NRCS) will verify not only the number of priority resource 

concerns proposed to be treated at the initial application ranking 

stage, but also the extent to which the conservation activity proposed for the priority resource concern will meet or exceed the 

stewardship threshold for that priority resource concern at the expiration of the contract. 

The substitute includes an annual enrollment cap of 10,000,000 acres at $18/acre for the program for the remainder of 

fiscal year 2014 through fiscal year 2022. (Section 2101) 

The Secretary shall prioritize for enrollment in the program 

lands that are expiring from the CRP in an effort to protect the 

taxpayer’s conservation investment by continuing conservation benefits on those lands and enabling the transition from CRP to a sustainable grass-based or other type of agricultural operation where 

many of the conservation benefits will continue. The Managers encourage the Secretary to conduct outreach to producers and to facilitate enrollment of such land into the CSP in order to maintain 

and improve conservation values, such as through grass-based production systems. The subsection also updates the provision excluding land recently converted to cropland. 

The Managers believe conservation programs as implemented 

by USDA should recognize the use of innovative technology such as 

enhanced efficiency fertilizers. Enhanced efficiency fertilizers, 

which reduce nitrate losses to the environment, help protect water 

quality, and reduce greenhouse gas emissions, include slow- and 

controlled-release fertilizers (absorbed, coated, occluded or reacted) 

and stabilized nitrogen fertilizers (nitrification inhibitors and nitrogen stabilizers). These tools are recognized in USDA’s conservation 

standards and specifications for nutrient management and related 

practices and by State regulators of fertilizers. 

The Managers recognizes the changing nature of agriculture 

including technological advances, weather-related factors, and markets under which producers must operate their business. During 

the term of a 5–year agreement, an agriculture operation may 

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sential to the continuing their operation. The Managers expect that 

the Secretary will ensure producers have the opportunity to adjust 

their operations while maintaining comparable or enhanced conservation performance of the enrolled acreage and still continuing 

their contracts. 

SUBTITLE C—ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

(7) Establishment and Administration 

The House bill states that not more than 50 percent of a payment under the Environmental Quality Incentives Program (EQIP) 

may be made in advance for the purpose of purchasing materials 

or contracting. Funds not expended in 90 days shall be returned. 

Additionally, the bill maintains the 60 percent allocation for livestock production and adds a 7.5 percent allocation targeted towards 

practices benefiting wildlife habitat. The House bill also provides a 

clerical amendment using the term ‘‘Indian Tribes’’. The bill includes payments to producers for practices that support the restoration, development, protection, and improvement of wildlife 

habitat as well as recurring practices for the term of the contract. 

It also adds a new provision for alternative funding arrangements 

with eligible irrigation associations. (Section 2202) 

The Senate amendment changes the practices for forgone income payment and gives greater significance to addressing resource 

concerns such as: soil health; water quality and quantity improvement; nutrient management; pest management; air quality improvement; wildlife habitat development, including pollinator habitat; invasive species management; or other resource issues of regional or national significance. Additionally, the amendment maintains and consolidates the authority for the Wildlife Habitat Incentive Program (WHIP) within EQIP. The amendment also maintains 

the 60 percent allocation for livestock production, provides at least 

a 5 percent allocation targeted towards practices benefiting wildlife 

habitat, and strikes the subsection providing for alternative funding arrangements for Native American Indian Tribes and Alaska 

Native Corporations. Additionally, the alternative funding arrangement provision is expanded to include CSP. The Senate amendment does not include recurring practices for the term of the contract and requires the Secretary to consult at least once a year 

with the State Technical Committees when determining practices 

eligible for wildlife habitat incentive payments. The Secretary may 

make wildlife habitat incentive payments to a state or local government to enroll land that is riparian to or submerged under a water 

body or wetland. (Section 2202) 

The Conference substitute adopts the Senate provision updating the list of practices the Secretary may give special significance 

to in determining income forgone with an amendment. The list is 

revised to better reflect natural resource objectives. 

The Conference substitute adopts the Senate provision with 

amendment regarding the revision of the practice list the Secretary 

may give special significance to when determining income forgone. 

The Managers intend for the revision to better reflect natural resource objectives and to clarify that conservation practices with a 

longer lifespan may include more than one year of income forgone 


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when it is necessary to encourage full adoption and maintenance 

of the practice. 

The substitute adopts the House provision that increases the 

percentage of an EQIP payment that may be made in advance for 

the purposes of purchasing materials and contracting from 30 percent to 50 percent. 

The substitute adopts the Senate provision that maintains the 

60 percent allocation for livestock production and further provides 

for an allocation of at least 5 percent for targeted practices benefiting wildlife habitat. It further adopts the Senate provision striking alternative funding arrangements for Indian Tribes as a conforming amendment to [section 2606] which moves the alternative 

funding arrangement for EQIP, while adding CSP, to section 

1244(l) of the Food Security Act of 1985, as amended. The Managers recognize the broad and significant role of the EQIP program 

in promoting environmental stewardship among livestock and poultry producers around the country and maintains that 60% of the 

funding allocation go to these producers. Within six months of enactment, USDA is directed to report to the House Committee on 

Agriculture and Senate Committee on Agriculture, Nutrition, and 

Forestry on funds spent over the duration of the last Farm Bill and 

on whether NRCS has met its statutory obligations. 

The substitute adopts the Senate provision on payments to producers for practices that support the restoration, development, protection, and improvement of wildlife habitat. The Managers acknowledge the need to consolidate and streamline conservation programs which is why WHIP was merged within EQIP with the primary goal to provide farmers and ranchers with assistance to improve wildlife habitat on working lands. 

The substitute deletes the House provision for alternative 

funding arrangements with eligible irrigation associations. 

The substitute adopts the Senate provision requiring the Secretary to consult at least once a year with the State Technical 

Committees when determining eligible practices for wildlife habitat 

incentive payments. The Managers intend that under section 

1240B(g)(2) regarding funding of wildlife habitat practices, the Secretary should prioritize fish and wildlife species identified in State, 

regional, or national wildlife plans and initiatives. However, the 

Managers did not include the Senate provision that would allow for 

wildlife habitat incentive payments to a state or local government 

to enroll land that is riparian to or submerged under a water body 

or wetland. (Section 2203) 

(8) Limitations on Payments 

The House bill provides for a payment limitation of $450,000 

to a person or legal entity for all EQIP contracts entered during FY 

2014 through FY 2018. (Section 2205) 

The Senate amendment maintains the $300,000 payment limitation but strikes the six year period timeframe and inserts FY 

2014 through FY 2018. The amendment also maintains the waiver 

authority ‘‘for not more than $450,000’’ in current law. (Section 

2205) 

The Conference substitute adopts the House provision. (Section 

2206) 


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(9) Conservation Innovation Grants 

The House bill adds facilitating on-farm research and demonstration activities and facilitating pilot testing of new technologies or innovative conservation practices to the types of project 

the Secretary may fund with Conservation Innovation Grants. Additionally, the bill eliminates payments to producers who implement practices to address air quality concerns. (Section 2206) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment to include payments to producers who implement practices to address air quality concerns at a reduced funding level of 

$25 million. (Section 2207) The Managers intend for there to be increased transparency by USDA in the area of innovative conservation projects and monitoring that these innovative conservation approaches are later incorporated into common conservation practices. 

(10) Definitions 

The Senate amendment combines the definitions of ‘‘National 

Organic Program’’ and ‘‘Organic System Plan’’ for simplification 

purposes. (Section 2202) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 2202) 

Section 1240B of the Food Security Act of 1985, as amended, 

provides the Secretary the option to accept financial assistance 

from other sources. The Secretary should not create additional burdens on the participant, state or private organization in an effort 

to account for non-Federal resources provided in support of conservation practices installed under the program by this authority. 

The Managers intend that conservation programs should recognize the use of innovative technology, such as enhanced efficiency 

fertilizers (e.g., slow and controlled-release fertilizers, stabilized nitrogen fertilizers). This innovative technology can help producers to 

protect water quality and reduce greenhouse emissions, and are 

recognized by State regulators of fertilizers. In the case of EQIP 

applications involving manure-to-energy projects, the Managers encourage the Secretary to consider whether the projects include an 

integrative approach to addressing nutrient management and 

water quality issues. 

Additionally, the Managers encourage NRCS to evaluate its 

education program and make sure that it is providing all potential 

users within each state an opportunity to become educated about 

the EQIP program and how each farmer can incorporate EQIP into 

their farm stewardship management plans. There is concern that 

not all producers may be fully aware of all of the services, practices, components, and other information needed to participate fully 

in farm bill conservation programs. The state NRCS offices shall 

notify producers, in a readily accessible and understandable form, 

the practices available that may be applicable to various livestock 

species and crops. These notifications shall also include the payment levels available and the period in which payment for a particular practice is available. The Managers also request a breakdown of livestock and poultry operation practices available by 


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state, and what practices were funded in each state to be included 

in the report. Finally, the Managers encourage USDA to continue 

to make their staff available to attend meetings of agricultural producers at the local, State and national level to educate and inform 

producers of the programs available to meet natural resource and 

energy efficiency needs on their operations. 

SUBTITLE D—AGRICULTURAL CONSERVATION EASEMENT PROGRAM

(11) Agricultural Conservation Easement Program 

The House bill states the definition of ‘‘agricultural land easement’’ for the purposes of the new Agricultural Conservation Easement Program (ACEP). The House bill includes land that is conveyed for the purpose of protecting natural resources and the agriculture nature of the land. It also provides the definition of ‘‘eligible land’’ in the case of an agricultural land easement. It includes 

agricultural land that the protection of which will further a State 

or local policy consistent with the purposes of the program. Additionally, there is a definition of ‘‘eligible land’’ in the case of a wetland easement. The bill provides that eligible land includes cropland or grassland that was used for agricultural production prior 

to the natural overflow of a closed basin lake and adjacent land dependent on it, if the State or other entity is willing to provide 50 

percent cost-share. It provides for an exception for grasslands of 

special environmental significance by allowing the Secretary to pay 

up to 75 percent of the fair market value as the Federal cost-share 

of the easement. It authorizes an eligible entity to use its own 

terms and conditions for an agricultural land easement as long as 

the Secretary determines such terms and conditions meet several 

requirements, and establishes the use of permanent easements or 

easements for the maximum duration allowed under State law for 

agricultural land easements. The bill establishes the method of enrollment for wetland easements and deems 30-year contracts to be 

considered 30-year easements for the purposes of the wetlands 

easements and establishes a land ownership requirement of 24- 

months. It also provides that, among other things, an owner entering into a wetland easement shall agree to permanently retire any 

existing base history. The bill states a wetland easement must include, among other things, a term or condition that provides for the 

efficient and effective establishment of wildlife functions and values, and the bill allows the Secretary to delegate any easement 

management, monitoring, and enforcement responsibilities to Federal or State agencies that have the appropriate authority, expertise and resources. It adds authority for the Secretary to delegate 

any easement management responsibilities to other conservation 

organizations determined by the Secretary. Lastly, it allocates 

funding for agricultural land easement at no less than 40 percent 

in FY 2014 through 2017 and no less than 50 percent in fiscal year 

2018, and amends the acreage limitation to include the repealed 

Wetlands Reserve Program (WRP) acres when calculating the 25 

percent country acreage cap in addition to CRP and the new wetland easements. (Section 2301) 

The Senate amendment is similar to the House but adds the 

purpose of promoting agriculture viability for future generations, 


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adds agricultural land the protection of which could conserve grassland or agricultural landscapes of significant ecological value, incorporates ‘‘reserve’’ into the definition of a wetland reserve easement, and does not include the 50 percent cost-share included in 

the House for closed basin lakes. The Senate amendment includes 

the same exception as the House but also authorizes the Secretary 

to waive any portion of the eligible entity cash contribution requirement for projects of special significance, subject to an increase of 

private landowner voluntary donation equal to the amount of the 

waiver. It includes a requirement that the terms and conditions are 

permanent or for the maximum duration allowed under State law. 

It does not provide that 30-year contracts should be considered as 

30-year easements for wetlands purposes. The amendment establishes a land ownership requirement of 12-months and it also 

agrees to retire allotment history as included in comparable provision of current law. In the amendment, the term or condition must 

provide for the efficient and effective establishment of wetland 

functions and values. The amendment also allows the Secretary to 

delegate any easement management, monitoring, and enforcement 

responsibilities to Federal or State agencies that have the appropriate authority, expertise and resources or to other conservation 

organizations as determined by the Secretary. It includes a limitation that the Secretary shall not delegate monitoring or enforcement to conservation organizations. Finally, land enrolled in WRP, 

GRP, and Farmland Protection Program (FPP) are considered enrolled in the ACEP program, and the amendment adds to the current law exclusion for shelterbelts and windbreaks; wetland and 

saturated soils, not subjecting such cropland with subclass w in the 

land capability classes IV through VII. (Section 2301) 

The Conference substitute adopts the Senate provision on promoting agriculture viability for future generations with an amendment. The amendment includes a reference to agricultural future 

viability in the Establishment and Purposes section while striking 

viability for future generations from the definition of agricultural 

land easement (ALE). The amendment also adopts the Senate provision incorporating ‘‘reserve’’ in the definition of a wetland reserve 

easement. 

The substitute adopts the House definition of eligible land in 

the case of an agricultural land easement with an amendment. The 

amendment uses the Senate’s concept of better incorporating grasslands into the definition. 

The substitute also adopts the House definition of eligible land 

in the case of a wetland reserve easement. The Managers do not 

intend for these slight modifications or adjustments to significantly 

alter the way NRCS has evaluated, ranked, enrolled and protected 

wetlands. 

The substitute adopts the Senate provision on the waiver of 

any portion of the cash contribution requirement for projects of special significance with an amendment. The amendment limits the 

land to property that is in active agricultural production. To ensure 

the purpose of the GRP is appropriately included in ALE, the term 

‘‘grassland of special significance’’ is included as eligible lands for 

ALE. The term encompasses grasslands with high biodiversity values; large intact natural grassland areas; rare or threatened ecoVerDate Mar 15 2010 07:12 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00413 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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systems; grasslands with critical ecosystem importance; and grasslands that meet any one or more of these values that are of importance to local communities and working agriculture land preservation efforts. 

The substitute deletes the House provision that deems 30-year 

contracts as easements with an amendment. The amendment includes language in the definition of wetland reserve easement that 

gives the Secretary discretion to enter into 30-year contracts with 

Indian Tribes where relevant. 

The substitute adopts the House provision establishing a land 

ownership requirement of 24-months and the House provision that 

strikes allotment history. The substitute adopts the Senate language on the administrative delegation of easements. The Managers are aware that NRCS enters into cooperative agreements and 

Memorandums of Understanding with conservation groups and this 

provision does not prohibit NRCS from continuing these types of 

agreements under section 1242(d) of the Food Security Act of 1985, 

as amended, to help administer and implement easements. 

The substitute adopts the Senate language on land considered 

enrolled in ACEP with an amendment to clarify that this language 

is consistent with the transition language for the repealed programs. 

The substitute deletes the House provision on allocating ACEP 

funding between the two easements. The Managers expect NRCS 

to administer the ACEP funding, to the extent practicable, in a 

manner that allows for State flexibility to prioritize their easement 

needs while making sure that NRCS distributes funding to address 

the multiple purposes of the new consolidated program. 

The Managers further intend for the Secretary to have the 

flexibility to make adjustments to this allocation based upon the 

Department’s stewardship responsibilities for lands already enrolled as the easement portfolio increases over time. 

The substitute further adopts the House provision amending 

the acreage limitation to include the cropland acreage currently enrolled under the WRP when calculating the 25 percent country 

acreage cap in addition to CRP and the new wetland easements. 

The substitute adopts the Senate provision adding to the current law exclusion for shelterbelts and windbreaks, wetland and 

saturated soils, not subjecting such cropland with subclass w in the 

land capability classes IV through VII to statutory acreage limitations. (Section 2301) 

SUBTITLE E—REGIONAL CONSERVATION PARTNERSHIP PROGRAM

(12) Regional Conservation Partnership Program 

The House bill provides the definition of ‘‘eligible activity’’ for 

the new Regional Conservation Partnership Program (RCPP), 

which includes air quality improvement. It also provides the definition of ‘‘eligible land’’ and the definition of ‘‘eligible partner’’ for the 

new RCCP program, which includes a water district, irrigation district, rural water district or association, or other organization with 

specific water delivery authority to producers on agricultural land. 

The bill establishes the duties of partners under RCPP including 

conducting outreach to producers for potential participation, and alVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00414 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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lows the Secretary to give priority to certain applications. It gives 

the Secretary discretion to adjust program rules for a covered program, and it allows the Secretary to make payments to producers 

participating in a project that addresses water quantity concerns 

for five years in an amount sufficient to encourage conversion from 

irrigation to dryland farming. The bill provides $100 million in 

mandatory funding during FY 2014 through 2018, reserves 6 percent of funds and acres made available under the covered programs 

as additional funding to carry out RCPP, and requires the Secretary to allocate, from all funds and acres of the program, 25 percent to projects based on a State competitive process, 50 percent 

based on a national competitive process, and 25 percent for critical 

conservation areas. Additionally, the bill requires a report to Congress on December 31, 2014, and every two years thereafter. It 

states that the Secretary shall designate eight geographical areas 

as critical conservation areas under RCPP. Lastly, the bill also 

makes available to the Secretary the authorities under the Watershed Protection and Flood Prevention program (except the Small 

Watershed Rehabilitation Program) to carry out projects in a designated critical conservation area. (Section 2401) 

The Senate amendment is similar to House except that it does 

not include air quality improvement or water district language. It 

does include forest restoration, specifies the conversion of irrigated 

cropland to the production of less water-intensive agricultural commodities or dryland farming under water quality restoration or enhancement projects, includes a municipal water or wastewater 

treatment entity, and includes education along with outreach to 

producers for potential participation as a duty of partners under 

RCPP. The amendment requires the Secretary to give priority to 

certain applications and allows the Secretary to give priority to others, and priority for providing innovation in the improvement and 

delivery of water quality or water quantity. Additionally, the 

amendment provides operational guidance and requirements for a 

covered program and non-statutory, regulatory rules or provisions. 

Further, it includes a provision prohibiting the Secretary from limiting eligibility on the basis of irrigation history for States where 

irrigation has not been significantly used for agricultural purposes. 

It requires the Secretary to enter into at least 10 but no more than 

20 alternative funding arrangements with multi-state water resource agencies or authorities. It also adds producers participating 

in projects that address water quality concerns in an amount sufficient to encourage adoption of practices that improve nutrient management, and provides $110 million of mandatory funding during 

FY 2014 through 2018. The amendment reserves 8 percent of funds 

and acres made available under the covered programs as additional 

funding to carry out RCPP. It requires the Secretary to allocate, 

from all funds and acres of the program, 25 percent to projects 

based on a State competitive process, 40 percent based on a national competitive process, and 35 percent for critical conservation 

areas, and also requires that a description of how the funds are 

being administered be included in the report. The Secretary shall 

designate six geographical areas as critical conservation areas 

under RCPP. The critical conservation area designation expires 


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after five years, subject to redesignation. The Secretary may withdraw from such area. (Section 2401) 

The Conference substitute adopts the House provision on the 

definition of eligible activity with an amendment. The amendment 

narrows the language and adds forest restoration as an eligible activity. 

The substitute adopts the House definition of eligible land. It 

further adopts the House definition of an eligible partner with an 

amendment. The amendment adds the Senate’s inclusion of water 

or wastewater treatment entity as an eligible partner. 

The substitute adopts the Senate provision that includes education along with outreach as a duty of an eligible partner. 

The substitute adopts the House provision on priority to certain applications. 

The substitute adopts the Senate provision on operational 

guidance and requirements for a covered program and non-statutory, regulatory rules or provisions with clarifying amendments. It 

further adopts the Senate provision prohibiting the Secretary from 

limiting eligibility on the basis of irrigation history for States 

where irrigation has not been significantly used for agricultural 

purposes. 

The substitute adopts the Senate provision that provides for alternative funding arrangements with an amendment. The amendment allows the Secretary to enter into no more than 20 alternative funding arrangements with multi-state water resource agencies but eliminates the requirement that the Secretary enter into 

at least 10 of the arrangements. 

The substitute adopts the Senate provision on payments to producers for projects that address both water quantity and water 

quality. 

The substitute adopts the House mandatory funding level of $100 million and sets the percentage of acres reserved for the program at 7 percent. 

The substitute adopts the Senate provision on the allocation of 

the percentage of the funds going to the states, the Department 

and reserved for critical conservation areas. It further adopts the 

Senate provision on reporting by the Department on how funds are 

being administered. 

The substitute adopts the House provision on the number of 

critical conservation areas with an amendment. The amendment 

includes the Senate provisions on expiration of and withdrawal 

from designation of the critical conservation area. 

The substitute includes the House provision on including authorities under P.L. 566 in the Regional program. (Section 2401) 

The Managers encourage the Secretary to distribute funding 

equitably across the nation and to not ignore different natural resource concerns that may be unique to each region. The substitute 

includes provisions from the Senate amendment regarding education and outreach duties for partners, which the Managers view 

as a vital component due to the important role those duties will 

have in the success of the program and in achieving large-scale 

conservation benefits on the ground. The Managers recognize the 

existing capabilities of the land grant institutions in each state, including the Cooperative Extension Service system, which have a 


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proven track record of effectively working with producers providing 

outreach and education, and encourage the Secretary and potential 

partners to seek ways to utilize these existing resources and systems. 

The Managers intend that projects not be limited solely to geographic areas but that regional and non-contiguous multi-state 

areas be considered as well, provided that all program requirements are met. 

The Managers expect the contribution of the partner to be a 

significant portion of the overall costs. The Managers urge the Secretary to resist defining this as a set percentage of the cost as a 

minimum standard to be applied to all applications. The Secretary 

should evaluate the overall merits of each proposal and the significance of the partner’s contribution to the potential successful implementation. There is concern that a set percentage might preclude proposals from partners that require high financial assistance from USDA to the producer while the partner’s support is 

from a smaller, but essential technical assistance contribution. 

SUBTITLE F—OTHER CONSERVATION PROGRAMS

(13) Conservation on Private Land 

The House bill reauthorizes the Conservation on Private Grazing Land program at previous levels of $60 million per year 

through FY 2018. (Section 2501) 

The Senate amendment reauthorizes the Conservation on Private Grazing Land program at reduced level of $30 million per year 

through FY 2018. (Section 2501) 

The Conference substitute adopts the House provision. (Section 

2501) 

(14) Grassroots Source Water Protection Program 

The House bill reauthorizes the Grassroots Source Water Protection Program at previous levels of $20 million per year through 

FY 2018. Additionally, it authorizes a one-time $5 million in mandatory money to remain available until expended. (Section 2502) 

The Senate amendment reauthorizes the Grassroots Source 

Water Protection Program at reduced appropriated levels of $15 

million per year through FY 2018. (Section 2502) 

The Conference substitute adopts the House provision. (Section 

2502) 

(15) Voluntary Public Access and Habitat Incentive Program 

The House bill reauthorizes the Voluntary Public Access and 

Habitat Incentive Program at a reduced level of $30 million in 

mandatory money per year from FY 2014 though FY 2018. (Section 

2503) 

The Senate amendment reauthorizes the Voluntary Public Access and Habitat Incentive Program at a reduced level of $40 million in mandatory money per year from FY 2014 though FY 2018. 

Amendments become effective October 1, 2013. (Section 2503) 

The Conference substitute adopts the Senate provision. (Section 2503) 


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(16) Small Watershed Rehabilitation Program 

The House bill reauthorizes the Small Watershed Rehabilitation Program at previous appropriated levels of $85 million per 

year through FY 2018 and authorizes $250 million in mandatory 

money for FY 2014, to remain available until expended. (Section 

2505) 

The Senate amendment reauthorizes the Small Watershed Rehabilitation Program at previous appropriated levels of $85 million 

per year through FY 2018. No mandatory money. 

The Conference substitute adopts the House provision. (Section 

2505) 

(17) Agricultural Management Assistance Program 

The House bill eliminates tree plantings and soil erosion control from the list of approved uses, and permanently authorizes the 

Agricultural Management Assistance Program at $10 million in 

mandatory money each fiscal year. It sets aside 30 percent to 

NRCS for conservation, 10 percent to the Agricultural Marketing 

Service for organic certification, and 60 percent to the Risk Management Agency for risk management. (Section 2506) 

The Senate amendment eliminates the specific state designations and tree planting authorities. It adds to the authority for organic certification, risk management education and outreach, and 

management assistance grants for conservation practices and risk 

mitigation. It provides for $23 million in funding to be distributed 

at levels of: 50 percent for organic certification; 26 percent for risk 

management; and 24 percent for conservation and mitigation. (Section 11034) 

The Conference substitute deletes both the House and the Senate provisions. 

(18) Emergency Watershed Protection Program 

The House bill adds a priority for projects that mitigate risks 

and remediate the effects of catastrophic wildfires on land that is 

the source of drinking water for landowners and land users. (Section 2507) 

The Senate amendment authorizes the Secretary to modify and 

terminate floodplain easements provided the current landowner 

agrees, and the modification or termination addresses a compelling 

public need where there is no practical alternative and it is in the 

public interest. (Section 2506) 

The Conference substitute adopts the Senate provision. (Section 2506) 

The substitute provides the Secretary limited authority to modify or terminate a floodplain easement which is similar authority 

under other conservation programs. The Managers intend for the 

Secretary to enter into compensatory agreements with third parties 

to allow for flexibility to modify or terminate the floodplain easements. 

(19) Terminal Lakes Assistance 

The Senate amendment strikes and replaces current law with 

a Terminal Lakes Assistance program. It adds a definition for eligible land and terminal lake. Additionally, it adds a new voluntary 


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land purchase grant program with a $25 million authorization of 

appropriations, to remain available until expended. The bill includes a transfer of $150 million in mandatory funds to the Bureau 

of Reclamation. (Section 2507) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 2507) 

(20) Soil and Water Resources Conservation 

The Senate amendment adds Indian tribes as eligible to cooperate with and participate in the soil and water conservation program. (Section 2509) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 2508) 

SUBTITLE G—FUNDING AND ADMINISTRATION

(21) Funding 

The House bill provides mandatory funding to carry out CRP 

including $25 million for FY 2014 through 2018 to facilitate transfer of land from retired or retiring owners and operators to beginning or socially disadvantaged farmers or ranchers. Additionally, 

the bill provides mandatory funding for ACEP at the following levels: $425 million in FY 2014; $450 million in FY 2015; $475 million 

in FY 2016; $500 million in FY 2017; $200 million in FY 2018. It 

also provides mandatory funding for EQIP at $1.75 billion each 

year for FY 2014 through 2018 and eliminates Regional Equity. 

(Section 2601) 

The Senate amendment provides mandatory funding to carry 

out CRP including $10 million to provide cost-share payments for 

thinning activities and $50 million to facilitate transfer of land 

from retired or retiring owners and operators to beginning or socially disadvantaged farmers or ranchers. It also provides mandatory funding for ACEP at the following levels: $450 million in FY 

2014; $475 million in FY 2015; $500 million in FY 2016; $525 million in FY 2017; $250 million in FY 2018. The amendment also provides mandatory funding for EQIP at the following levels: $1.5 billion for FY 2014; $1.6 billion for FY 2015; $1.65 billion FY 2016 

through 2018. The Senate amendment also retains regional equity, 

amends current law by eliminating the $15 million annual requirement, and allows states in the first quarter of the fiscal year to establish that they can use a total of 0.6 percent of certain conservation funds, in which case they may receive such funds exclusive of 

the CRP funding. (Section 2603) 

The Conference substitute adopts the Senate provision on mandatory funding for CRP with an amendment. The amendment includes the funding level for transition payments at $33 million. 

The Conference substitute adopts the Senate provision for 

mandatory funding for ACEP with an amendment. Funding levels 

are: $400 million in FY 2014; $425 million in FY 2015; $450 million 

in FY 2016; $500 million in FY 2017; $250 million in FY 2018. 

The Conference substitute adopts the Senate provision for 

EQIP with an amendment. The amendment provides mandatory 


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funding for EQIP at the following levels: $1.35 billion for FY 2014; 

$1.6 billion for FY 2015; $1.65 billion for FY 2016; $1.65 billion for 

FY 2017; and $1.75 billion in FY 2018. (Section 2602) 

The Conference adopts the Senate provisions for Regional Equity. (Section 2603) 

(22) Technical Assistance 

The House bill continues to make mandatory money for conservation programs available for technical assistance and requires 

a report from the Secretary not later than December 31, 2013, on 

the amount of funds requested and apportioned. (Section 2602) 

The Senate amendment is similar to the House but requires 

the apportionment for technical assistance be at the sole discretion 

of the Secretary. Further, the Senate amendment requires the Secretary to give priority to producers who request technical assistance to comply with subtitles B and C for the first time and submit 

a report not later than 270 days after enactment on the extent to 

which conservation compliance requirements affect specialty crop 

growers. The Secretary must also submit, not later than November 

1 of each year, a report on highly erodible lands/wetland conservation determinations. (Section 2642) 

The Conference substitute adopts the Senate provision. (Section 2602) 

(23) Reservation of Funds to Provide Assistance to Certain Farmers 

or Ranchers for Conservation Access 

The House bill reauthorizes the EQIP and CSP set-aside 

through FY 2018. It also provides a preference for veteran farmers 

or ranchers eligible under the provision. Amendments take effect 

on October 1, 2013. (Section 2603) 

The Senate amendment is the same as the House, but has no 

effective date. (Section 2604) 

The Conference substitute adopts the Senate provision. (Section 2604) 

(24) Annual Report on Program Enrollment and Assistance 

The House bill amends the reporting requirement to reflect the 

repeal of the relevant programs. The amendments take effect on 

October 1, 2013. (Section 2604) 

The Senate amendment is similar to the House, but adds reporting requirements for CSP payments and waivers for grasslands 

under ACEP. It does not include an effective date. (Section 2605) 

The Conference substitute adopts the Senate provision. (Section 2605) 

(25) Review of Conservation Practice Standards 

The House bill requires the Secretary to review the conservation practice standards in effect on the date of enactment of the 

Farm Bill. (Section 2605) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate amendment making no change to current law. 


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(26) Administrative Requirements Applicable to All Conservation 

Programs 

The House bill makes veteran farmers or ranchers eligible for 

incentives. Additionally, it makes other clarifying and conforming 

amendments. The amendments take effect October 1, 2013. (Section 2606) 

The Senate amendment allows for flexible funding arrangements for Indian Tribes and includes EQIP and CSP as applicable 

programs. It does not include an effective date. (Section 2606) 

The Conference substitute adopts the Senate provision. (Section 2606) 

The Conference substitute combines language on improved administrative efficiency and streamlining from individual programs 

and places it in a central location to apply to all conservation programs. It expands and clarifies requirements for developing a 

streamlined conservation application process. It clarifies that any 

payment received under Title II is in addition to and does not affect total payments that an owner or operator is otherwise eligible 

to receive. The Managers encourage the Secretary to significantly 

increase the use of computer-based conservation practice planning 

tools that incorporate Light Detection and Ranging elevation data 

to modernize and simplify conservation planning, improve efficiency of technical assistance, and improve service to private landowners. 

Further, the Managers encourage the Secretary, in delivering 

conservation programs, to give priority within the tallgrass prairie 

region to the use of appropriate tallgrass prairie species for watershed management, flood mitigation/prevention, reduction of soil 

erosion and nutrient loss, biomass crop production, and other conservation measures. 

The Managers recognize the unique challenges facing producers whose operations contain muck soils and encourage the Secretary to continue to work with these farmers to allow them to utilize this productive type of ground. 

The conferees direct NRCS to ensure agency staff, partners, 

and producers are aware of new and interim conservation practice 

standards and conservation activity plans to address herbicide-resistant weeds. The agency is also to make certain there is awareness that financial assistance is available through certain conservation programs to assist producers in their efforts to control these 

weeds. 

The Managers expect that the principles and guidelines developed pursuant to section 103 of the Water Resources Planning Act, 

or revised pursuant to section 2031 of the Water Resources Development Act of 2007, and any guidelines developed thereunder, shall 

not apply and require no new administrative process, rulemaking, 

or administrative procedures for programs administered by NRCS, 

the Forest Service, RMA, Farm Service Agency (FSA), or Rural Development. With respect to USDA programs, section 103 of the 

Water Resources Planning Act is intended to only focus on large 

scale water infrastructure projects, not individual farm based water 

conservation, water quality, or assistance to rural communities for 

drinking water. 


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As NRCS is the agency responsible for helping farmers and 

ranchers implement voluntary, incentive-based conservation practices that are all locally-led, the federal objective of the principles 

and guidelines is already being met. Furthermore, the Forest Service, RMA, FSA and Rural Development all play important roles in 

helping farmers, ranchers, and rural communities with finding critical solutions to problems that are unique to farming, ranching and 

rural America, and should not face unnecessary burden in complying with this administrative requirement. 

The Managers are concerned by reports that Federal agencies 

other than USDA, as well as State and local governments, are 

seeking to impose more stringent and larger buffer requirements 

on land being enrolled in USDA conservation programs. The Managers expect NRCS to continue to utilize their own Field Office 

Technical Guide and conservation planning tools to determine what 

is reasonable and needed to accomplish the natural resource concerns to be addressed. 

(27) Wetlands Mitigation 

The House bill eliminates the requirement to provide equivalent functions and values when more acreage is needed in wetland 

conversion mitigation than a 1-for-1 acreage basis. (Section 2609) 

The Senate amendment requires the Secretary to conduct a 

wetland mitigation study no later than 180 days after enactment 

to assess the use of wetland mitigation to determine certain impacts on wildlife. The study also should include recommendations 

for improving wetland mitigation procedures and increasing use of 

the wetland mitigation process by producers. Lastly, the Senate 

amendment requires the Secretary to submit a report of its findings to Congress no later than two years after the date of enactment. (Section 2508) 

The Conference substitute adopts neither the House nor Senate provisions but provides $10 million in mandatory funding for 

mitigation banking efforts. (Section 2609) The Managers recognize 

that the use of wetlands mitigation is an important tool for wetland 

habitat development and agriculture crop production. The Managers encourage the Secretary to use mitigation with the conversion of a natural wetland and equivalent wetlands functions at a 

ratio not to exceed a ratio of 1-to-1 acreage. 

(28) Lesser Prairie Chicken Conservation Report 

The House bill requires the Secretary to submit a report to 

Congress no later than 90 days after enactment which considers all 

USDA administered programs that benefit the lesser prairie-chicken. (Section 2610) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with 

amendment. The amendment includes the addition of State plans 

to the list of programs pertaining to the conservation of the lesser 

prairie-chicken. (Section 2610) 


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(29) Highly Erodible Land and Wetland Conservation for Crop Insurance 

The Senate amendment requires conservation compliance for 

eligibility to receive premium assistance on crop insurance, creates 

new provisions for determinations, administration, and penalties 

unique to crop insurance, and gives technical assistance priority to 

producers that need to come under compliance. (Section 2609) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with 

amendment. (Section 2611) The amendment clarifies that for compliance on highly erodible lands ineligibility for premium assistance can only apply for reinsurance years after the year in which 

there has been a final determination of a violation and cannot 

apply to the reinsurance year in which the final determination was 

made nor any reinsurance year prior to the year the final determination was made. A determination is not final until after the 

producer has exhausted all administrative appeal rights. The substitute revises the application to existing operations with prior violations so that the date for compliance is the date of enactment of 

this Act. This means that if a person is found to be out of compliance and would have been out of compliance since that date, had 

they participated in any programs requiring compliance, then they 

have two reinsurance years to develop and comply with a conservation plan. 

The substitute also provides for the coordination of certification 

processes so that the procedures and paperwork that are required 

by this section for eligibility based on wetlands compliance are also 

used for determining eligibility based on highly erodible lands compliance. The amendment clarifies the provisions for compliance 

with wetlands conservation placing all of the components of compliance for crop insurance premium assistance in a separate subsection. The substitute also makes clear that ineligibility only applies to premium assistance in reinsurance years after the year in 

which a final determination is made and not to the reinsurance 

year in which the final determination is made nor to any year prior 

to that year. 

The substitute revises the categories for the application based 

on the conversion of a wetland. If the wetland is converted at any 

time after the date of enactment of this Act, the person becomes 

ineligible for premium assistance in the reinsurance year after 

final determination, unless an exemption applies or if the wetland 

converted constitutes less than five acres of the person’s entire 

farm in which case the person can choose to make a contribution 

to conservation equal to 150 percent of the cost of mitigation. If, 

however, the wetland was converted at any time prior to the date 

of enactment of this Act, the person cannot be found in violation 

and thus ineligible for premium assistance based on that conversion. 

Finally, if a new policy or plan of insurance becomes available 

after the date of enactment, ineligibility for premium assistance 

can only apply to conversions that take place after the date the 

new policy or plan of insurance first becomes available to the person. In this case the person has two reinsurance years to mitigate 

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surance year. The substitute also clarifies that a person who becomes subject to wetlands compliance solely because of the enactment of this Act has two reinsurance years after the year in which 

a final determination is made to mitigate the conversion, and that 

a person who is found to have converted a wetland in good faith 

is also given two reinsurance years to mitigate the conversion. The 

Managers do not intend for this language to cause any change in 

current law or USDA policy relating to third-party or landowner/ 

tenant determinations of compliance, violations, or attribution. 

With regard to the provisions for equitable contribution, the 

Managers expect that the Secretary will determine the period of 

violation to be the date on which the violation occurred, then adjust 

for the later of the following: (1) the first certification period for 

crop insurance assistance following date of enactment, or (2) the 

first date for which the individual was eligible for and made application for a crop insurance premium subsidy following the date of 

violation. The maximum amount will include the equivalent of the 

insurance subsidy provided in the year of the improper certification 

and all subsequent years through the date of final determination. 

Payment of the equitable contribution does not remove or limit 

their responsibility to comply with the soil erosion requirements or 

wetland conservation, restoration or mitigation requirements within the prescribed timeframes to retain the benefits of premium assistance in subsequent years. (Section 2611) 

(30) Adjusted Gross Income Limitation for Conservation Programs 

The House bill replaces the two income limitation test (farm 

and nonfarm income) with a single $950,000 adjusted gross income 

limitation for commodity and conservation programs. (Section 1604) 

The Senate amendment eliminates the Secretary’s waiver authority to protect environmentally sensitive land of special significance. (Section 2610) 

The Conference substitute adopts the House provision with an 

amendment. The amendment sets the cap to $900,000. (Section 

1605) 

SUBTITLE H—REPEAL OF SUPERSEDED PROGRAM AUTHORITIES AND

TRANSITIONAL PROVISIONS; TECHNICAL AMENDMENTS

(31) Wetlands Reserve Program 

The House bill repeals WRP with transition language for current contracts and easements. It allows the Secretary to use ACEP 

funds and becomes effective October 1, 2013. (Section 2704) 

The Senate amendment allows the use of prior year Commodity Credit Corporation (CCC) funds for contracts entered into 

before October 1, 2012. (Section 2704) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments providing authority for the 

Secretary to continue the necessary administrative actions and utilize prior year funding to fulfill the commitment and obligations of 

agreements, contracts, and easements entered into prior to date of 

enactment. (Section 2703) 

The Managers expect USDA to exhaust available prior year 

funding to address any costs associated with fully implementing 


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prior year wetland reserve program easement enrollments, including closing, restoration, management, and maintenance of wetland 

easements in an effort to protect, restore, and enhance wetland 

functions and values. 

Section 2712 of the Conference Report is added to address the 

variety of effective dates distributed through the conservation title 

in the House bill and the Senate amendment. By including this 

language the Managers stress to USDA the importance of continuing program services and providing certainty to farmers and 

ranchers amid the passage of this bill. Therefore, the Managers intend for USDA to continue to operate the existing conservation programs as necessary through the current fiscal year using existing 

regulations while the Department works to expediently develop the 

regulations needed to implement the amendments made by this 

Title. The Managers further intend for existing regulations to be 

used for the interim administration of EQIP and CSP while the revisions to these programs are being implemented. 

(32) Farmland Protection and Farm Viability Program 

The House bill repeals FPP with transition language for current contracts and easements. The bill also allows the Secretary to 

use ACEP funds. It includes an effective date of October 1, 2013. 

(Section 2704) 

The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. It does not allow 

the use of ACEP funds. No conforming amendment for heading. 

(Section 2704) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments providing authority for the 

Secretary to continue the necessary administrative actions and utilize prior year funding to fulfill the commitment and obligations of 

agreements, contracts, and easements entered into prior to date of 

enactment. (Section 2704) 

(33) Grassland Reserve Program 

The House bill repeals GRP with transition language for current contracts, agreements and easements. (Section 2705) 

The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. (Section 2705) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments providing authority for the 

Secretary to continue the necessary administrative actions and utilize prior year funding to fulfill the commitment and obligations of 

agreements, contracts, and easements entered into prior to date of 

enactment. (Section 2705) 

(34) Agricultural Water Enhancement Program 

The House bill repeals the Agricultural Water Enhancement 

Program (AWEP) with transition language for current contracts 

and agreements. (Section 2706) 

The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. (Section 2706) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments providing the authority for 


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the Secretary to continue the necessary administrative actions and 

utilize prior year funding to fulfill the commitment and obligations 

of agreements, contracts, and easements entered into prior to date 

of enactment. (Section 2706) 

With the continuation and consolidation of AWEP authorities 

in the RCPP, the Managers intend the Secretary to continue assistance to agricultural producers that address irrigation and water 

management challenges across various regions of the country. The 

Managers urge NRCS to continue to give priority to cost-sharing 

proposals which incorporate irrigation management systems that 

involve water metering, soil moisture monitoring, proven irrigation 

delivery systems, and telemetry to ensure accurate water use 

measurement and management. The Managers urge NRCS to consider multiple producer applications or applications submitted on 

behalf of entities representing a group of producers to encourage 

greater participation in the program and maximize the benefits of 

water management. 

(35) Wildlife Incentive Program 

The House bill repeals WHIP with transition language for current contracts. It allows use of EQIP funds. (Section 2707) 

The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. EQIP funds may 

be used but only after prior year funding is exhausted. (Section 

2707) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments providing authority for the 

Secretary to continue the necessary administrative actions and utilize prior year funding to fulfill the commitment and obligations of 

agreements, contracts, and easements entered into prior to date of 

enactment. (Section 2707) 

(36) Great Lakes Basin Program 

The House bill repeals the Great Lakes Basin Program with an 

effective date of October 1, 2013. (Section 2708) 

The Senate amendment includes the same provision. (Section 

2708) 

The Conference substitute adopts the House provision with an 

amendment of the effective date. 

The Managers recognize that the Great Lakes Basin Program 

has been an important and successful program for 22 years that 

has implemented over 400 projects that have reduced soil erosion 

and improved water quality in Great Lakes watersheds. Since 

2008, the program has supported implementation of both the Great 

Lakes Regional Collaboration (GLRC) and the Great Lakes Restoration Initiative (GLRI) by directing resources to priority watersheds. The Managers intend the program to continue serving this 

purpose for the duration of the GLRI. (Section 2708) 

(37) Chesapeake Bay Watershed Program 

The House bill repeals the Chesapeake Bay Watershed Program with transition language for current contracts, agreements, 

and easements. The bill allows use of RCPP funds. (Section 2709) 


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The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. (Section 2709) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments. (Section 2709) 

The Managers recognize that the Chesapeake Bay Watershed 

Program established in 2008 complemented other conservation programs by enhancing their reach and effectiveness within the tributary watersheds. Since 2008, the program has supported farm level 

implementation of conservation practices benefiting water quality 

by improving nutrient management, reducing sedimentation, and 

restoring riparian areas. With the consolidation of the Chesapeake 

Bay Watershed Program into the Regional Conservation Partnership Program, the Managers intend the RCPP to continue assistance to agricultural producers consistent with the purposes of the 

Chesapeake Bay Watershed Program. 

(38) Cooperative Conservation Partnership Initiative 

The House bill repeals the Cooperative Conservation Partnership Initiative with transition language for current contracts and 

agreements. It allows the use of RCPP funds. (Section 2710) 

The Senate amendment allows the use of prior year CCC funds 

for contracts entered into before October 1, 2012. (Section 2710) 

The Conference substitute adopts the Senate provision with 

technical and clarifying amendments. (Section 2710) 

The Managers recognize that the CCPI established in 2008 

was built on successful partnership approaches in previous Farm 

Bills and encouraged the Secretary to work with specific priority 

regions across the country. As such, the Managers expect the Secretary to build from those lessons learned when and where those 

projects were most successful. 

TITLE III—TRADE

(1) General authority 

The House bill clarifies that Title II emergency and nonemergency assistance is to be implemented by the Administrator of 

the U.S. Agency for International Development (USAID). The objectives of Title II programs are modified to include building resilience 

to mitigate food crises and reducing the need for future emergency 

aid. (Section 3001) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

3001) 

The Managers modified the general authorities in Title II of 

the Food for Peace Act to place a greater emphasis on projects 

which focus on building resiliency in the recipient population where 

food shortfalls and droughts are common. This change is intended 

to prompt USAID to require measurable outcomes in multiyear 

projects in order to reduce dependency on foreign aid. 

(2) Support for eligible organizations 

The House bill amends section 202(e)(1) of the Food for Peace 

Act by reducing the maximum allowable cash assistance available 

for administrative costs in non-emergency programs from 13% to 


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11% of the total funds made available for the program. (Section 

3002) 

The Senate amendment amends Section 202(e)(1) to increase 

the maximum allowable cash assistance available for administrative costs in non-emergency programs from 13% to 15% of the total 

funds made available for the program. It also allows funds to be 

used for activities that ‘‘enhance’’ food aid projects. (Section 3001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment increases the maximum allowable 

cash assistance available for administrative costs to 20% of the 

total funds made available for the program. The amendment also 

revises the list of purposes for which the cash assistance may be 

used. (Section 3002) 

The Managers expect that additional funds made available 

under this provision will provide increased flexibility to USAID. 

The Managers understand that an array of programs and tools are 

needed to balance the diverse and complex food aid demands of 

various countries and regions. As such, the Managers sought to 

provide additional cash assistance to accompany current monetization policy. The increased flexibility gained by additional cash assistance will allow USAID to better respond and prioritize food aid 

needs in real time and is intended to assist in the transition of programs from emergency interventions to programs which build resiliency in instances of protracted humanitarian crises. 

(3) Food aid quality 

The House bill amends section 202(h) of the Food for Peace Act 

by requiring the Administrator to consult with the Secretary in 

performing the requirements of this subsection related to food aid 

quality by establishing a mechanism for USDA and USAID to 

evaluate food aid commodities and implement appropriate changes; 

by instructing the agencies to update program guidance on the use 

of new commodities; and by limiting the available funding for these 

purposes to $1 million. (Section 3003) 

The Senate amendment replaces and expands Section 202(h)(1) 

to require that the Administrator use funds available to carry out 

Title II to assess types and quality of agricultural commodities donated as food aid; adjust products and formulation as necessary to 

meet nutrient needs of target populations; test prototypes; adopt 

new specifications or improve existing specifications for micronutrient food aid products based on the latest development in food 

and nutrition science; develop new program guidance for eligible 

organizations to facilitate improved matching of products to purposes; develop improved guidance on how to address nutritional efficiencies among long-term recipients of food aid; and evaluate the 

performance and cost-effectiveness of new/modified food products 

and program approaches to meet nutritional needs of vulnerable 

groups. It also extends authority to fund this section for fiscal 

years 2014 through FY2018. (Section 3002) 

The Conference substitute adopts the Senate provision. (Section 3003) 

In May 2011, the Government Accountability Office (GAO) 

completed a report which cites deficiencies in the nutrition and 

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port are recommendations that USAID review food aid packaging, 

track food aid quality throughout the supply chain, and ensure that 

available food aid commodities meet the nutritional needs of recipients. The Managers expect USAID to set verifiable goals and to 

maximize strong public-private partnerships with food manufacturers and other stakeholders to more quickly address the deficiencies 

highlighted in the May 2011 report by using currently available 

studies on food aid quality and nutrition. The Managers encourage 

USAID to establish multi-year approaches to the procurement of 

high-value products. Longer term procurement, to the extent practicable, is expected to encourage investment of specialized equipment needed to deliver critical products in a timely and cost-effective manner. In recognition of the importance associated with close 

collaboration between USDA and USAID on approving new products, the Managers expect both agencies to adopt clear guidelines 

to facilitate the swift adoption of new products in order to quickly 

capture the benefits of the research and testing under this section. 

(4) Food Aid Consultative Group 

The House bill amends Section 205 of the Food for Peace Act 

by reauthorizing the Food Aid Consultative Group (the ‘‘Group’’) 

through December 31, 2018. Section 205 is also amended by adding 

representatives from the processing sector to the Group. The provision further requires the Administrator to consult with the Group 

on the implementation of food aid quality provisions and requires 

the Administrator to provide the Group at least 45 days for review 

and comment before a proposed regulation handbook or guideline, 

or revision thereof, becomes final. (Section 3005) 

The Senate amendment reauthorizes FACG through December 

31, 2018. (Section 3004) 

The Conference substitute adopts the House provision. (Section 

3005) 

The Managers note that while USAID places significant burdens for the success of programs upon implementing partners and 

other stakeholders, feedback from these groups through the Food 

Aid Consultative Group (FACG) is not adequately incorporated into 

program guidelines. Before new guidance is finalized, the Managers expect USAID to give sufficient notice to stakeholders when 

changes are made to the Food for Peace Guidelines and require 

new guidance to be promulgated in a timely manner after any 

changes to the Food for Peace Act. 

(5) Oversight, monitoring, and evaluation 

The House bill amends Section 207 (c) by requiring that all 

regulations and revisions to agency guidance necessary for implementation of the Federal Agricultural Reform and Risk Management Act be issued within 270 days of enactment. 

The provision removes authority for purchasing new computer 

systems, removes obsolete reporting requirements, and provides 

$10 million per year for monitoring and evaluation. Further, the 

provision requires a report on the extent of monitoring and evaluation required by eligible organizations participating in Food for 

Peace programs. (Section 3006) 

The Senate amendment contains no comparable provision. 


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The Conference substitute adopts the House provision with an amendment. The amendment provides $17 million per year for 

monitoring and evaluation for each of fiscal years 2014 through 

2018, and permits up to $500,000 of those funds in each fiscal year 

to be used for maintaining information technology systems. (Section 3006) 

The Managers understand that monitoring is essential to ensuring that USAID’s food aid programs in developing countries are 

implemented as intended. As such, the Managers want to convey 

their strong support for the Famine Early Warning Systems Network (FEWS Net). FEWS Net is an integral component of our nation’s ability to effectively and efficiently respond to crisis situations worldwide. 

The Managers also expect USAID to complete development of 

IT systems without additional Food for Peace resources. Funding is 

continued for additional monitoring and evaluation of programs at 

a level which reflects resources available for Food for Peace programs. The Managers note that in 2009 the GAO concluded that 

monitoring of programs was inconsistent and that program management was not modified to reflect information gained from the 

monitoring and evaluation conducted by or for USAID. The Managers expect USAID to make improvements in program guidance 

based on the monitoring and evaluation conducted. 

(6) General monetization provisions 

The House bill amends section 403 of the Food for Peace Act 

by requiring USDA and USAID to seek information on the potential benefits of monetization to local economies. The provision clarifies that implementing partners should sell monetized commodities 

at ‘‘fair market value.’’ The Secretary and the Administrator are 

also instructed to coordinate assessments which guide the use of 

monetization to ensure consistency across programs. The provision 

requires USAID to issue a report detailing the use of funds made 

available for implementing partners, including funds for administrative and indirect costs. (Section 3008) 

The Senate amendment amends Section 403 of the Food for 

Peace Act to require that the rate of return for a commodity monetized (sold in recipient countries) be at least 70 percent. The ‘‘rate 

of return’’ is defined as equal to the proportion that the proceeds 

the implementing partners generate through monetization bears to 

the cost to the federal government to procure and ship the commodities to a recipient country for monetization. (Section 3007) 

The Conference substitute adopts the House provision with an 

amendment. The amendment strikes the clarification regarding 

monetizing commodities at fair market value and the provision requiring that the Secretary and Administrator coordinate assessments. The amendment revises the report on use of funds to require that the Administrator report on the amount of funds spent 

on each project; how the funds were used; the rate of return on 

monetized commodities; and for rates of return less than 70 percent, the reason for such rate of return. (Section 3008) 

In June 2011, GAO reported on inefficiencies and adverse impacts of monetization. The Managers agree that both USDA and 

USAID should have consistent policies governing both agencies’ 


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monetization activities. The Managers expect USAID to consider 

the full impact of monetization when considering a proposal under 

Food for Peace. The Managers note existing requirements for 

USDA and USAID to approve only those sales which will not disrupt the usual marketing and processing of commodities in the recipient country. The Managers support the use of a variety of food 

assistance modalities in responding to emergency and non-emergency food aid needs, including the use of monetized in-kind commodities. However, the Managers are aware of concerns with lack 

of accountability and efficiency, including low rates of return realized on monetized commodities. As such, the report requested in 

this Act seeks to enhance transparency and increase accountability 

while ensuring rates of return which reflect reasonable market 

prices on monetized commodities. This is a part of the Managers’ 

larger effort to provide greater flexibility to USAID and USDA so 

the agencies have the ability to use the most effective food assistance tool in each situation. 

(7) Additional prepositioning sites and testing 

The House bill allows the Administrator discretion to establish 

additional prepositioning sites based on the results of assessments 

of need, technology, feasibility, and cost. Funding for prepositioning 

is increased to $15,000,000 per year. (Section 3009) 

The Senate amendment allows funds to be used for the testing 

of food aid shipments. (Section 3009) 

The Conference substitute adopts the House provision. (Section 

3009) 

The Managers note the rapid response which was possible due 

to prepositioned commodities when USAID responded to a natural 

disaster in 2013 in the Philippines. The Conference substitute 

clarifies existing authority for USAID to consider additional 

prepositioning sites, and the Managers expect that additional funds 

ensure USAID will be able to effectively deploy and manage critical 

commodities ahead of any future crisis. The Managers also note 

USAID’s efforts to field additional food aid products and expect 

prepositioning these products will be useful in responding quickly 

to acute humanitarian needs. 

(8) Annual report on food aid programs and activities 

The House bill amends section 407(f) of the Food for Peace Act 

by requiring the annual report regarding food aid programs and activities to include information on the actual beneficiaries of the programs and by specifying the report include the McGovern-Dole 

International Food for Education and Child Nutrition Program. 

(Section 3010) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

3010) 

(9) Funding 

The House bill amends section 412 of the Food for Peace Act 

by reducing the authorization for appropriations from $2.5 to $2 

billion per year. (Section 3012) 

The Senate amendment contains no comparable provision. 


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The Conference substitute adopts the Senate position. 

(10) Safebox funding 

The House bill requires a minimum of $400 million be expended for nonemergency assistance in each of fiscal years 2014 

through 2018. (Section 3012) 

The Senate amendment repeals Section 412(e) and requires 

that of funds made available under the Food for Peace Act, not less 

than 20% nor more than 30% shall be expended for nonemergency 

food aid under Title II. Further, the amount made available to 

carry out nonemergency food aid programs under Title II shall not 

be less than $275 million for any fiscal year. (Section 3011) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment sets the minimum level of nonemergency assistance at $350,000,000. (Section 3012) 

The Managers affirm the importance of maintaining strong development programs in support of building030 resilient communities and reducing dependency on foreign assistance. The Managers expect this flexibility to help USAID efficiently and effectively allocate funds in a timely manner. By including a percentage 

structure to be applied to annual appropriations, the managers intend to provide USAID the flexibility to respond to urgent situations when needed or to allocate additional funds for development 

in years without significant emergency needs. 

(11) Farmer-to-Farmer program 

The House bill provides for the Farmer-to-Farmer program not 

less than the greater of $15,000,000 or 0.5 percent of the funds 

made available to carry out the Act. (Section 3014) 

The Senate amendment provides for the Farmer-to-Farmer 

program not less than the greater of $10,000,000 or 0.6 percent of 

the funds made available to carry out the Act. (Section 3014) 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides not less than the greater of 

$15,000,000 or 0.6% of the funds made available to carry out this 

Act for the Farmer-to-Farmer program. The amendment adds a 

GAO report to review the program and provide recommendations 

to improve the monitoring and evaluation of the program. (Section 

3014) 

(12) Flexibility of CCC funds 

The Senate amendment revises Section 406 of the Food for 

Peace Act to permit the use of funds available under the Act to pay 

costs of up to 20% of activities conducted in recipient countries by 

nonprofit voluntary organizations, cooperative, or intergovernmental organizations. (Section 3008) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House position. 

(13) Coordination of foreign assistance programs report 

The Senate amendment strikes the language requiring a report 

on improved procurement planning. (Section 3012) 

The House bill contains no comparable provision. 


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The Conference substitute adopts the Senate provision. (Section 3015) 

(14) Prohibition on assistance for North Korea 

The Senate amendment states that Title II funds cannot be 

used to provide assistance to North Korea. The President can waive 

this funding prohibition if the President determines and certifies to 

the House and Senate Agriculture Committees, the House Foreign 

Affairs Committee and the Senate Foreign Relations Committee 

that the waiver is in the national interest of the United States. 

(Section 3015) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House position. 

(15) Export Credit Guarantee programs 

The House bill amends section 211 of the Agricultural Trade 

Act of 1978 by reauthorizing funding for the Export Credit Guarantee Program through 2018. (Section 3101) 

The Senate amendment extends funding through fiscal year 

2018 and reduces the amount of allowable credit guarantees to $4.5 

billion. (Section 3101) 

The Conference substitute adopts the House provision with an 

amendment. The amendment removes outdated language applicable to previous fiscal years and allows the Secretary to implement 

the program in a manner consistent with WTO obligations by including language authorizing the Secretary to adjust the program; 

reducing the maximum tenor for loan guarantees made available 

under the program to 24 months; striking a provision requiring 

that the Secretary maximize the amount of credit guarantees made 

available each fiscal year; and by striking a provision restricting 

the Secretary’s ability to adjust program fees. (Section 3101) 

The Managers affirm the importance of export programs that 

yield mutual benefits for both American agriculture and international trading partners. The Managers are aware of outstanding 

questions generated by the World Trade Organization dispute 

WTO/DS267, and the Conference substitute includes reforms to improve existing programs. It is the Managers’ strong intent that any 

discretion provided to the Administration with regard to dispute 

WTO/DS267 be used to reach a negotiated solution to the dispute. 

(16) Food for Progress 

The Senate amendment permits use of funds available under 

the Food for Peace Act to pay costs of up to 20% of activities conducted in recipient countries by nonprofit voluntary organizations, 

cooperative, or intergovernmental organizations. It requires that 

the rate of return for a commodity monetized (sold in recipient 

countries) be at least 70%. The ‘‘rate of return’’ is defined as equal 

to the proportion that the proceeds the implementing partners generate through monetization bears to the cost to the federal government to procure and ship the commodities to a recipient country for 

monetization. (Section 3201) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House position. 


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(17) Spiny Dogfish study 

The House bill requires the Secretary of Agriculture to conduct 

a study on the market for the U.S. Atlantic Spiny Dogfish. (Section 

3205) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

3205) 

(18) Global Crop Diversity Trust 

The House bill amends section 3202(c) of the Food, Conservation, and Energy Act of 2008 by reauthorizing USAID to make a 

contribution of up to $50 million over 5 years to the Global Crop 

Diversity Trust. (Section 3206) 

The Senate amendment reauthorizes U.S. contribution to the 

Global Crop Diversity Trust for fiscal years 2014–2018 at current 

levels. (Section 3206) 

The Conference substitute adopts the Senate provision. (Section 3206) 

(19) Undersecretary for Foreign Agricultural Services 

The House bill amends Subtitle B of the Department of Agriculture Reorganization Act of 1994 by adding a new section allowing USDA to establish the position of Under Secretary for Foreign 

Agricultural Services, which would be appointed by the President 

with the advice and consent of the Senate. (Section 3207) 

The Senate amendment requires the Secretary, in consultation 

with the House and Senate Agriculture Committees and House and 

Senate Appropriations Committees to propose a plan for reorganization of the trade functions of USDA, including the establishment of an Under Secretary of Agriculture for Trade and Foreign 

Agricultural Affairs. The Secretary is required to report on the plan 

180 days after the farm bill’s enactment, and within one year of 

submission of the report, the Secretary shall implement the reorganization plan including establishment of the Under Secretary position. (Section 3209) 

The Conference substitute adopts the Senate provision. (Section 3208) 

The Managers recognize that international trade is critically 

important to the economic vitality of the U.S. agriculture and food 

industry and a major engine of U.S. economic growth. Trade currently accounts for more than 25 percent of U.S. farm receipts, and 

the production from one out of every three acres planted is exported. Our vast and efficient export system, including handling, 

processing and distribution of our food and agricultural products, 

creates millions of U.S. jobs and helps feed hundreds of millions all 

over the globe. Our $32 billion net trade balance in agriculture and 

food products in 2012 represented the single largest contribution to 

our balance of payments. 

The trade organizational structure at USDA has remained unchanged since it was last reorganized in 1978. Over this period, the 

value and nature of U.S. agriculture exports has changed dramatically. In 1978, U.S. agriculture exports totaled $29 billion, whereas 

in 2012 they reached $136 billion. Meanwhile, over the last 30 

years the challenges that U.S. agriculture faces in global markets 


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have increased and markedly changed from primarily tariff barriers to phytosanitary and other non-tariff trade barriers. 

The Managers agree that an Under Secretary for Trade and 

Foreign Agricultural Affairs will provide a singular focus on trade 

and foster more effective coordination of transparent, rules-based 

trade policies in other USDA agencies. Such a position will bring 

unified, high level representation to key trade negotiations with 

senior, foreign officials and within the Executive Branch. Furthermore, the creation of this Under Secretary position will help 

streamline management, create greater efficiencies and enhance 

emphasis in the Office of the Under Secretary responsible for key 

domestic programs. 

Given the importance of this provision, the Managers expect 

USDA to keep Congress regularly informed as to the progress on 

the preparation of the reorganization report and, once completed, 

its efforts to implement the reorganization plan within the statutory deadlines. 

(20) USDA certificates of origin 

The House bill requires the Secretary of Agriculture to seek to 

ensure that USDA certificates of origin are accepted by any country 

with which the United States has entered into a Free Trade Agreement providing preferential duty treatment. (Section 3208) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 

(21) Local and regional food aid procurement projects 

The Senate amendment establishes a local and regional pro- curement program with appropriations of $60 million authorized 

for each of fiscal years 2014 through 2018. Preference in carrying 

out this program may be given to eligible organizations that have, 

or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program. (Section 

3207) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes appropriations of 

$80,000,000 for each of fiscal years 2014 through 2018. (Section 

3207) 

The Managers further note that the Local and Regional Procurement (LRP) pilot program authorized by Section 3206 of the 

Food, Conservation, and Energy Act of 2008 was completed, with 

23 field-based projects carried out in 2009–2011 by the UN World 

Food Program and PVOs. A study of the projects was undertaken 

by a consortium of PVOs participating in the pilot and economists 

at Cornell University, as well as an independent study conducted 

as required in the legislation. The statutorily required study found 

that in the majority of circumstances, food aid commodities procured locally or regionally were both less costly for some commodities and delivered more quickly than comparable commodities 

sourced in the United States and shipped to the study countries. 

However, the Managers note the absence of any comparison to 

prepositioned commodities when reviewing timeliness of deliveries. 

The Managers further note on page 1 of the study, that ‘‘LRP may 


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pose risks for local markets and vulnerable households’’, indicating 

care should be taken in pursuing the most appropriate areas in 

which to implement LRP projects. In support of the broader emphasis on building resiliency, the Managers expect USDA to give 

priority to projects with the greatest long-term developmental benefits. 

Section 3207 extends the LRP pilot program into an authorized 

program to improve U.S. international food assistance, by providing 

a new, more flexible programming tool. The Managers intend for 

the new program to complement existing food aid programs, especially the McGovern-Dole program, and to fill in nutritional gaps 

for targeted populations or food availability gaps generated by unexpected emergencies. To be eligible for this program, such gaps 

should be readily addressable by procurement from local or regional food supplies. In order to facilitate meeting the latter objective, some portion of available funds should be reserved for dispersal during the second half of each fiscal year, to be available to 

address emergencies occurring after program proposal deadlines 

expire. If, as certified by the Administrator, no such emergencies 

occur, the conference substitute provides authority for the Secretary to award reserved funds to augment projects approved earlier in the fiscal year. 

(22) Donald Payne Horn of Africa Food Resilience Program 

The Senate amendment establishes a pilot program to effectively integrate all U.S.-funded emergency and long-term development activities that aim to improve food security in the Horn of Africa. It authorizes $10 million to carry out the pilot project, subject 

to appropriations, and also requires the USAID Administrator to 

report to appropriate committees of Congress on the outcomes of 

the project. (Section 3208) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House position. 

TITLE IV—NUTRITION

(1) Preventing payment of cash to recipients of supplemental nutrition assistance benefits for the return of empty bottles and cans 

used to contain food purchased with benefits provided under 

the program 

The House bill prevents the use of benefits to pay for substantial bottle deposits that can be returned for a cash refund. (Section 

4001) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4001) 

(2) Retail food stores 

The House bill requires retailers to provide perishable items in 

at least three of the staple food categories. (Section 4002(a)) The 

House bill requires that retailers will be responsible for purchasing 

and paying for point-of-sale equipment and supplies and terminates the use of manual vouchers except in cases of disasters or 

other similar situations and requires parties providing electronic 


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benefit transfer services to maintain unique terminal identification 

numbers throughout the Supplemental Nutrition Assistance Program (SNAP) routing system. Retailers are also required to maintain a unique business identification number. (Section 4002(b)) The 

House bill amends section 7 of the Act by removing outdated language related to the use of coupons (Section 4002(c)), and amends 

section 9 of the Act by allowing the Secretary to consider the location of applicants in areas with significantly limited access to food 

when approving retailers. The House bill also adds and strengthens 

requirements about the adequacy of the store’s Electronic Benefits 

Transfer (EBT) service. (Section 4002(d)) 

The Senate amendment requires that retailers will be responsible for purchasing and paying for point-of-sale equipment and 

supplies and terminates the use of manual vouchers except in cases 

of disasters or other similar situations. The Senate amendment requires parties providing electronic benefit transfer services to 

maintain unique terminal identification numbers throughout the 

SNAP routing system. The Senate amendment removes outdated 

language related to the use of coupons and allows the Secretary to 

consider the location of applicants in areas with significantly limited access to food when approving retailers. The Senate amendment gives USDA authority to consider a store’s depth of stock, variety of staple food items, and the sale of excepted items when approving a retailer. (Section 4006(b)) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment strikes the language providing USDA 

authority to consider a store’s depth of stock, variety of staple food 

items, and the sale of excepted items when approving a retailer. 

The amendment requires that retailers offer for sale on a continuous basis a variety of at least seven foods in each of the four categories of staple foods categories. The amendment requires that 

point of sale systems set and enforce sales restrictions based on 

item eligibility through scanning or product lookup entry and deny 

benefit tenders for manually entered sales of ineligible items. The 

amendment also requires that retailer purchase invoices and other 

program-related records be made available for auditing. (Section 

4002) 

The conference substitute reduces fraud at retail stores by requiring a more rigorous standard for stores to become eligible to 

process SNAP benefits. Section 4002 requires participating retailers to stock perishable items in at least three of the four staple 

food categories: dairy products; meat, poultry, or fish; fruits or 

vegetables; and bread or cereals. Currently, a store stocking as few 

as twelve food items, many of which have limited nutritional value, 

could be eligible to be a SNAP retailer. To address this, the conference substitute requires retailers to stock, at a minimum, seven 

food items in each of the staple food categories to be eligible. The 

Managers intend for this requirement to serve as a minimum requirement and do not intend in any way to discourage or prevent 

more robust depth of stock. The Managers remain concerned with 

retailers that meet the minimum of the existing regulations as a 

way to gain entry into SNAP for the sole purpose of expanding 

sales of excepted items, including liquor and tobacco, which is decidedly contrary to the intent of the program. 


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To further combat fraud, this section places additional preventative control requirements on EBT systems and provides USDA the 

authority to inspect additional invoice and other program-related 

records. The Managers intend for these measures to be implemented in a way that reduces fraud without reducing access, stigmatizing SNAP participants, or requiring overly burdensome recordkeeping. Specifically regarding the new EBT system requirements, the Managers expect that USDA will work to ensure that 

these changes will not result in a considerable increase in transaction errors, will not prevent split transactions, will not increase 

delays in check-out lines, and will not otherwise increase instances 

in which SNAP participants are differentiated from other retail 

customers. Regarding purchase invoices and other program-related 

records, the Managers believe that retention for not longer than 36 

months is an appropriate requirement, and is consistent with requirements in other federal nutrition assistance programs. 

This section also requires SNAP retailers to pay 100 percent 

of the cost of electronic benefit transfer (EBT) machines, with some 

exemptions, and restricts states from issuing manual vouchers for 

SNAP unless the Secretary deems it necessary for emergency purposes. By including this provision, the Managers are targeting 

fraud within the program, and do not intend for credit card companies, banks, or others to impose any additional fees in regard to the 

acceptance of SNAP EBT benefits. Additionally, the Managers expect the Secretary to work with retailers and relevant stakeholders 

in developing regulations to implement a unique terminal identification system. Credit card associations are considering implementation of this practice across the entire retail industry in the near 

future, and it is imperative that the Secretary work with SNAPapproved retailers to ensure there are no additional costs or burdens that are duplicative or inconsistent with common commercial 

practices. The Managers acknowledge that many small businesses 

and direct-to-consumer retailers continue to face challenges related 

to the cost of utilizing EBT and advanced technologies. 

Having placed new requirements on retailers, the Managers 

are concerned by the unpredictable and growing variation in the 

timeline for retailer application approvals. The Managers encourage the Secretary to work with retailers in the licensing approval 

process in a timely manner. 

The Managers recognize that current SNAP EBT transactions 

running on the QUEST network do so efficiently and at minimal 

or no cost to the retailer. The Managers encourage USDA to continue to work with the states to ensure that all retailers maintain 

the ability to use the QUEST network and do so without being assessed new or added fees for its use. 

Recognizing that issuance of SNAP benefits to all participants 

on the same date within a month creates many challenges both for 

suppliers and retailers, the Managers encourage the Secretary to 

work with states to stagger the monthly issuance of SNAP benefits 

across an entire month. 

The Managers support preserving food access in food shortage 

areas and encourage the Secretary to give broad consideration to 

the impacts additional requirements will have on food access in 

food deserts or other areas with limited food access. 


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The Managers also encourage the Secretary to continue to 

identify innovative ways in which to assist stores that do provide 

critical food access to SNAP recipients in improving inventory 

standards and stocking a robust supply of staple food items. 

The Managers also recognize that, in remote communities in 

non-contiguous states, it is not unusual for there to be only one retail food store in operation. These retail stores are typically located 

in communities that are connected neither to the rest of the state’s 

road network nor to a major electrical grid. Food is typically transported to the community via small aircraft, and diesel generators 

generally provide electrical power to such communities, posing 

challenges for such stores to operate adequate refrigeration and 

freezing equipment to store perishable foods. The Managers intend 

for the Secretary to consider all of the aforementioned unique criteria when evaluating applications by retail food stores located in 

remote communities in non-contiguous states that are either applying to participate in the SNAP program or currently participate in 

the program. 

(3) Food distribution program on Indian reservations 

The House bill reauthorizes the Traditional and Locally-Grown 

Food Fund in the Food Distribution Program on Indian Reservations (FDPIR). (Section 4004) The House bill requires USDA to 

study the feasibility of a demonstration project for Tribes administering nutrition assistance programs in lieu of states. (Section 

4041) 

The Senate amendment requires USDA to study the feasibility 

of a demonstration project for Tribes to administer nutrition assistance programs in lieu of states. The Senate amendment allows 

Tribes to substitute local, tribal foods for up to five percent of their 

FDPIR entitlement commodities. (Section 4002) 

The Conference substitute adopts the Senate provision with an 

amendment. 

The amendment provides $1,000,000 to conduct the study. The 

amendment strikes the provision stating that up to five percent of 

entitlement commodities may be used for purchasing local and tribal foods and directs the Secretary to carry out a demonstration 

project for the purchase of traditional and local foods. (Section 

4004) 

The Managers recognize that federal regulations and certification requirements can often be burdensome for small producers, 

especially those on reservations. Often located in remote locations, 

producers on reservations may not be close to the Agricultural 

Marketing Service (AMS) inspectors necessary for certification 

needed to provide fruits, vegetables, and other agricultural commodities to federal nutrition programs. Costs, including payments 

for inspector travel time, make certification unachievable for many 

producers on reservations. As a result, federal nutrition program 

recipients lose access to locally produced, fresh commodities, and 

producers lose access to a local market that would assist economic 

development on reservations. To address this issue, the Managers 

encourage the Secretary to work with Tribal Organizations to enable the use of accredited third party certifiers; existing infrastructure on reservations, such as extension agents; or properly trained 


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and certified Tribal employees or officers to certify producers on 

reservations. 

(4) Updating program eligibility 

The House bill restricts categorical eligibility for SNAP to only 

those households receiving cash assistance through other low-income assistance programs. (Section 4005) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 

(5) Exclusion of medical marijuana from excess medical expense deduction 

The House bill prohibits medical marijuana from being treated 

as a medical expense for purposes of income deductions. (Section 

4006) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4005) 

Currently, eighteen States have State statutory provisions that 

allow for the prescription of medicinal marijuana to patients in limited circumstances. Five states had previously allowed for the deduction of medicinal marijuana as an allowable medical expense 

when calculating SNAP benefits. In July 2012, USDA issued guidance to states, reaffirming its long-standing policy that households 

may not receive a medical deduction for medicinal marijuana. Because the Controlled Substance Act (21 U.S.C. 801 et seq.) currently classifies marijuana as a Schedule I controlled substance 

that has no currently accepted medical use and cannot be prescribed for medicinal purposes, the Managers expect that the Secretary will continue to administer this provision in accordance with 

current practice and procedures for illegal substances under federal 

law. 

(6) Standard utility allowances based on the receipt of energy assistance payments 

The House bill provides that only Low Income Home Energy 

Assistance Program (LIHEAP) payments above $20 would trigger 

a standard utility allowance (‘‘SUA’’) deduction. (Section 4007) 

The Senate amendment provides that only LIHEAP payments 

above $10 would trigger a SUA deduction. (Section 4003) 

The Conference substitute adopts the House provision. (Section 

4006) 

(7) Repeal of work program waiver authority 

The House bill requires all able-bodied adults to meet applicable work requirements by eliminating the ability of the Secretary 

to grant waivers for states in areas of high unemployment. The 

House bill maintains states’ ability to provide an exemption from 

the work requirements for 15 percent of their Able-Bodied Adults 

Without Dependents (ABAWD) population. (Section 4009) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 


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(8) Technology modernization for retail food stores 

The House bill requires the Secretary of Agriculture to implement a pilot program to test the feasibility of allowing retailers to 

accept SNAP benefits through mobile transactions. (Section 4012) 

The Senate amendment requires the Secretary of Agriculture 

to conduct demonstration projects to authorize redemption of SNAP 

benefits online and with mobile technologies. By 2016, the Secretary shall allow redemption by these processes in all States unless the results of the demonstrations indicate these activities will 

not be beneficial to the program. (Section 4008) 

The Conference substitute adopts the Senate provision. (Section 4011) 

(9) Mandating State immigration verification 

The House bill requires states to use an electronic immigration 

status verification system to verify applicants’ immigration status. 

(Section 4015) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4015) 

(10) Data exchange standardization for improved interoperability 

The House bill establishes requirements, consistent with other 

means tested programs, for the electronic content and format of 

data used in the administration of SNAP. (Section 4016) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4016) 

The Conference substitute expands upon the bipartisan work 

begun by the Committee on Ways and Means Human Resources 

Subcommittee to allow data both within and across key federal assistance programs to operate more efficiently. These standardization activities promote transparency, flexibility, and consistency so 

data can be shared across the various information technology platforms established by federal and state agencies, increasing administrative efficiency and reducing improper payments. This provision 

is not intended to provide additional authority to standardize data 

but to drive the process to occur across multiple federal agencies. 

As identity theft and manipulation based fraud is on the rise in the 

United States, the Managers direct the Secretary to carefully analyze the possibility of identity theft and manipulation-based fraud 

on SNAP participants and to ensure that the Secretary is taking 

necessary steps to protect program beneficiaries’ personally identifiable information against unauthorized disclosure. 

(11) Pilot projects to improve Federal-State cooperation in identifying and reducing fraud in the Supplemental Nutrition Assistance Program 

The House bill requires USDA to implement a pilot program 

to allow states to operate EBT retailer fraud investigation programs. (Section 4017) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4017) 


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(12) Prohibiting government-sponsored recruitment activities 

The House bill prevents USDA from conducting recruitment 

activities, advertising the SNAP program through television, radio 

and billboard advertisements and from entering into agreements 

with foreign governments to promote SNAP benefits. The section 

further prevents States from being reimbursed for similar activities. (Section 4018) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4018) 

The Managers do not intend to prohibit activities that provide 

basic program information including rights, program rules, client 

responsibilities, and benefits. The Managers acknowledge that certain vulnerable populations such as elderly, homeless, or disabled 

individuals may require additional assistance in applying for 

SNAP. The Managers do not intend to preclude any specialized 

services for these populations. 

(13) Performance bonus payments 

The House bill eliminates the performance bonuses provided to 

states for effectively administering SNAP. (Section 4019) 

The Senate amendment requires states to reinvest bonus payments to prevent fraud and abuse and improve the administration 

of the SNAP program. (Section 4012) 

The Conference substitute adopts the Senate provision. (Section 4021) 

(14) Funding of employment and training programs 

The House bill reduces the formula-funded allocation to State 

agencies to carry out employment and training programs from $90 

million to $79 million per year. (Section 4020) 

The Senate amendment provides $90 million in mandatory 

funds in FY2014, FY2015, FY2016, and FY2017. The Senate 

amendment reduces mandatory funding to $80 million for 2018 and 

each fiscal year thereafter. (Section 4013) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides $90 million per year in mandatory funds. (Section 4022) 

(15) Monitoring employment and training programs 

The House bill requires that the Secretary of Agriculture implement monitoring and performance measures for State employment and training programs. The section requires that the Secretary of Agriculture, in consultation with the Secretary of Labor, 

develop reporting measures for participants in employment and 

training programs and that states report annually on such measures. The section further provides that if a State agency’s performance is inadequate, the Secretary of Agriculture may require the 

State agency to modify its employment and training plan. (Section 

4021) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4022) 


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(16) Cooperation with program research and evaluation 

The House bill requires entities that participate in SNAP to cooperate with the Department of Agriculture and its agents in conducting evaluations and studies authorized under the Act. (Section 

4022) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4023) 

(17) Pilot projects to reduce dependency and increase work requirements and work effort under Supplemental Nutrition Assistance 

Program 

The House bill requires USDA to conduct a pilot project to 

identify best practices for employment and training programs to 

raise the number of work registrants who obtain unsubsidized employment, increase their earned income, and reduce their dependence on public assistance. (Section 4023) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment incorporates certain provisions of the 

House language into the pilot project described in (32), below. (Section 4022) 

(18) Authorization of appropriations 

The House bill reauthorizes appropriations for SNAP and related programs through FY2016. (Section 4024) 

The Senate amendment reauthorizes appropriations for SNAP 

and related programs through FY2018. (Section 4014) 

The Conference substitute adopts the Senate provision. (Section 4024) 

(19) Review, report, and regulation of cash nutrition assistance program benefits provided to Puerto Rico 

The House bill ensures that no funds made available to the 

Commonwealth of Puerto Rico may be used to provide nutrition assistance in the form of cash. (Section 4025) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment directs the Secretary to conduct a review of, and report on, the provision of nutrition assistance in the 

form of cash in Puerto Rico. The Secretary is directed to phase out 

the provision of cash assistance by FY 2021. Notwithstanding the 

phase-out, the Secretary may approve a plan that provides cash to 

certain categories of participants if the Secretary determines that 

discontinuation of cash benefits will cause significant adverse effects. (Section 4025) 

Since 1982, Puerto Rico has operated the Nutrition Assistance 

Program (NAP) from federal funds received as a block grant instead of the Supplemental Nutrition Assistance Program (SNAP). 

Under the terms of the block grant, Puerto Rico has had broad authority in its administration of these funds, and currently permits 

up to 25 percent of benefits to be issued in the form of cash. Permission to issue benefits in cash was granted in 2001, intended to 

alleviate concerns regarding lack of EBT access in Puerto Rico. 


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With advancement in technologies and the institution of a 

Commonwealth-wide sales tax in 2006, the vast majority of food retailers in Puerto Rico now accept EBT unless they choose not to. 

With this change in EBT capability and the Managers’ ongoing interest in ensuring that each dollar of nutrition funding be used to 

reduce food insecurity, rigorous review and phase-out of the use of 

cash benefits is necessary. 

However, as noted in the 2010 study conducted by Insight Policy research on behalf of the Food and Nutrition Service (FNS), 

Supplemental Nutrition Assistance Program in Puerto Rico: A Feasibility Study, ‘‘It is difficult to determine what the full impact of 

a completely non-cash allotment would be on Puerto Rico retailers 

and participants.’’ Recognizing this and that there are factors in 

Puerto Rico that complicate the ability of program participants to 

access nutrition through EBT redemption, the Managers have directed the Secretary to review the situation. The Managers expect 

the Secretary to consider all relevant factors in exercising the discretion provided in exempting program participants or categories of 

participants that may be harmed by the discontinuation of cash 

benefits. 

(20) Assistance for community food projects 

The House bill provides an additional $10 million per fiscal year for Community Food Projects and directs that $5 million be 

used for incentives. (Section 4026) 

The Senate amendment continues support for Community Food 

Projects while incorporating an increased food insecurity focus, 

along with hunger-free communities goals. Grants under this program are subject to a 50 percent matching requirement and periodic effectiveness reports. The Senate amendment eliminates the 

Healthy Urban Food Enterprise Development Center and Innovative Programs for Addressing Common Community Problems provisions. Funding remains at $5 million in annual mandatory funds. 

(Section 4015) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides $9 million in annual mandatory funds. (Section 4026) 

(21) Emergency food assistance 

The House bill provides an additional $70 million in FY2014 

and FY2015 and an additional $20 million per fiscal year thereafter for Emergency Food Assistance. Inflation adjustments remain 

in place. (Section 4027) 

The Senate amendment increases funding by $54 million over 

10 years. Entitlement commodity funding increases are in the first 

five years of the budget window: +$22 million for FY2014, +$18 

million for FY2015, +$10 million for FY2016, +$4 million for 

FY2017. Inflation adjustment between years remains in place. (Section 4016) 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides an increase in funding of 

$50 million for fiscal year 2015, $40,000,000 for fiscal year 2016, 

$20,000,000 for fiscal year 2017, and $15,000,000 for fiscal year 

2018. Funding for fiscal year 2019 and each fiscal year thereafter 


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will be indexed from the fiscal year 2018 funding level. (Section 

4027) 

The Managers strongly encourage the Secretary to review potential bonus and surplus removal purchases on a real-time basis 

and adjust the timing of mandatory food purchases and deliveries 

to address periods when bonus and specialty crop deliveries are expected to be low. Having a more balanced delivery of both mandatory and bonus food purchases will enable emergency feeding organizations to better serve those in need. 

The Managers also intend for the Secretary to consider the cost 

of regulatory changes on the operation of emergency feeding operations in order to prevent such regulatory changes from adversely 

affecting the services provided by the emergency feeding organizations. The Managers encourage the Secretary to work with emergency feeding organizations to address these concerns. 

Recognizing that some food banks also provide Commodity 

Supplemental Food Program (CSFP) commodities, the Managers 

understand the importance of CSFP as a critical nutrition program. 

Currently, CSFP provides nutritious food, often in the forms of food 

boxes for home delivery, that are designed to meet the dietary 

needs of seniors, women and children in 39 states, two Indian tribal organizations, and the District of Columbia. In fiscal year 2013, 

97 percent of the recipients were elderly individuals with an annual income at or below $14,937. CSFP serves a unique niche by 

providing nutritious commodities to homebound seniors who are at 

severe risk for hunger. 

The Managers fully support the continued operation of the program and recognize the need for expansion of the CSFP to reach 

additional elderly Americans at severe risk for hunger. The Managers note that there are six states that have currently been approved by USDA for entry into CSFP, subject to the availability of 

appropriations. Provided that sufficient funds are appropriated by 

Congress, the Managers encourage the Secretary to approve all remaining states for participation and to take action to reach all seniors at severe risk for hunger in all participating states and other 

jurisdictions. 

(22) Nutrition education 

The House bill adds ‘‘promoting physical activity’’ as an allowable use of funding. (Section 4028) The House bill reduces funding 

for FY2014 from $401 million to $372 million and then adjusts for 

inflation in subsequent years. 

The Senate amendment adds ‘‘promoting physical activity’’ as 

an allowable use of funding. (Section 4017) 

The Conference substitute adopts the Senate provision. (Section 4028) 

(23) Retail food store and recipient trafficking 

The House bill provides USDA $5 million annually in additional mandatory funding to track and prevent SNAP trafficking. 

(Section 4029) 

The Senate amendment provides USDA $5 million in FY2014 

in additional mandatory funding to track and prevent SNAP trafficking using data mining technologies. The Senate amendment 


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also authorizes $12 million subject to appropriations for each year 

FY2014–FY2018. (Section 4018) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides one-time mandatory funding 

of $15 million in FY 2014 to remain available until expended, and 

an authorization of $5 million per year. (Section 4029) 

(24) Tolerance level for excluding small errors 

The House bill prevents the Secretary from excluding payment errors greater than $25 from improper payments calculations. (Section 4031) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment sets the tolerance level for excluding 

payment errors from improper payment calculations at $37 and indexes the level to the thrifty food plan. (Section 4019) 

(25) Commonwealth of the Northern Mariana Islands pilot program 

The House bill requires the Secretary of Agriculture to conduct 

a study to assess the capabilities of the Commonwealth of the 

Northern Mariana Islands (CNMI) to operate the SNAP program 

in the same manner it is operated in the states. The section requires that if, following the study, the Secretary of Agriculture determines that it is feasible for the CNMI to operate the SNAP program in the same manner it is operated by the states, the Secretary of Agriculture shall establish a pilot program in CNMI for 

such purposes. (Section 4032) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides that if the Secretary does 

not conduct a pilot with the funds provided in this section, the 

funds shall be used for program administration within CNMI. (Section 4031) 

(26) Annual State report on verification of SNAP participation 

The House bill requires states to submit an annual report to 

the Secretary sufficient to show that the state is verifying that its 

SNAP recipients are not receiving benefits in more than one state, 

no benefits are being paid to deceased individuals, and no benefits 

are being paid to previously disqualified individuals. (Section 4033) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment sets the penalty for failure to comply 

at up to 50 percent of the state’s administrative match. The amendment provides that the Secretary is to complete a study on methods 

to prevent payment of benefits to recipients in multiple states and 

report to Congress on how to implement the results of the study. 

(Section 4032) 

(27) Termination of existing agreement 

The House bill terminates the existing agreement for SNAP 

Outreach between USDA FNS and the Mexican government. (Section 4034) 

The Senate amendment contains no comparable provision. 


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The Conference substitute adopts the House provision. (Section 

4211) 

(28) Service of traditional foods in public facilities 

The House bill grants the Secretary of Agriculture authority to 

permit the donation, preparation and consumption of traditional 

Native food in public facilities primarily serving Alaska Natives 

and American Indians. (Section 4035) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment makes technical and clarifying revisions, including ensuring that food safety laws apply to the donation, preparation, and consumption of foods provided under this 

section. (Section 4033) 

(29) Testing applicants for unlawful use of controlled substances 

The House bill allows states to conduct drug testing on SNAP 

applicants at state expense as a condition for receiving benefits. 

(Section 4036) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 

(30) Eligibility disqualifications for certain convicted felons 

The Senate amendment bars individuals convicted of specified 

federal crimes (including murder, rape, certain crimes against children), and state offenses determined by the Attorney General to be 

substantially similar, from receiving SNAP. The Senate amendment still allows the disqualified ex-offender’s household members 

to apply for and potentially receive benefits. The Senate amendment requires the state agency to collect, in writing, information on 

SNAP applicants’ convictions. (Section 4020) 

The House bill is similar to the Senate amendment but specifies that restrictions will only apply to individuals with convictions 

after the date of enactment. (Section 4037) 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides that the restrictions only 

apply to an individual convicted of the stated crimes if the individual is not in compliance with the terms of their sentence. (Section 4008) 

(31) Expungement of unused SNAP benefits 

The House bill requires a state agency to expunge SNAP benefits that have not been accessed by a household after a period of 

60 days. (Section 4038) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 

(32) Pilot projects to promote work and increase State accountability 

in SNAP 

The House bill creates a pilot program to allow states to engage able-bodied parents in Temporary Assistance for Needy Families (TANF)-type work and job training as part of receiving SNAP 

benefits. The House bill provides that employment and training 


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(E&T) cost share funds are only available to states that adopt the 

work provisions within this section. (Section 4039) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment directs the Secretary to carry out a 

pilot program in up to ten states to develop and test methods, including operating work programs that engage able-bodied adults in 

TANF-type work and job training requirements, for employment 

and training programs and services to raise the number of work 

registrants who obtain unsubsidized employment, increase the 

earned income of the registrants, and reduce the reliance of the 

registrants on public assistance. $200 million in mandatory funds 

are provided to operate the pilots. 

States must commit to participate in the evaluation described 

in this section, collaborate with the state workforce board, and not 

supplant existing employment and training funds. The Secretary is 

required to select a range of pilot projects in various geographic 

areas, including projects that require mandatory participation and 

voluntary participation, as well as projects that target groups of individuals with varying skills and work experience. 

States that require mandatory participation in work activities 

are provided specific authority to sanction individuals for failure to 

participate. The Secretary is required to establish standards for 

certain employment activities to ensure that failure to work for 

reasons beyond an individual’s control shall not result in ineligibility. Various protections currently provided in SNAP E&T law 

are incorporated into the program, including ensuring that individuals subject to mandatory work requirements be offered a corresponding work or training activity, individuals be provided adequate transportation and childcare, and that elderly, disabled and 

those responsible for the care of children under the age of six are 

exempt from work requirements. (Section 4022) 

The Managers recognize the need for better data and outcomes 

from current E&T programs. To further improve the accountability 

of the SNAP E&T program, the conference substitute demands outcomes by requiring states to set performance goals relating to enhancement of skills, training, work, or experience that leads to 

work, for SNAP participants. In addition, states must report annually on these goals. 

The Managers also recognize that the best way to improve the 

lives of beneficiaries is through sustainable employment and increased income. Therefore, the Managers direct the Secretary to operate up to ten pilot projects to develop and improve innovative approaches to raise the number of beneficiaries who obtain unsubsidized employment and decrease the need for nutrition assistance. 

The Managers intend that all state expenses, including for wraparound services, related to the pilot projects may be reimbursed out 

of the funds provided under section 16(h)(1)(F)(viii). 

The Managers expect the Secretary to approve pilot projects 

that test a range of strategies to ensure Congress is provided data 

on the effectiveness of various employment and training programs. 

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the programs. All pilots shall be subject to the protections and conditions of participation and duration of ineligibility provided under 

section 6(d) of the Food and Nutrition Act (including household ineligibility provided under paragraph (B)). 

The Managers recognize that a number of states are currently 

operating innovative and effective employment and training programs and expect the Secretary to test the ability to expand and 

replicate such programs. The Managers also recognize that some 

states have developed effective employment and training programs 

through the TANF Program and encourage the Secretary to test 

similar mandatory employment and training programs that transition beneficiaries to stable employment. 

(33) Improved wage verification using the National Directory of 

New Hires 

The House bill requires all states to data-match with the National Directory of New Hires. (Section 4040) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment clarifies that states are only required 

to data-match at the time of certification. (Section 4013) 

(34) Farmers’ market nutrition program 

The House bill expands the program purposes to allow additional at-risk populations to be served and by requiring the Secretary to specify terms and conditions to encourage expanding the 

participation of small scale farmers in federal nutrition programs. 

The House bill requires that 50 percent of the funds be reserved 

for seniors. (Section 4046) 

The Senate amendment reauthorizes and continues to provide Commodity Credit Corporation (CCC) mandatory funding of $20.6 

million annually through FY2018. (Section 4202) 

The Conference substitute adopts the Senate provision. (Section 4203) 

(35) Pilot project for canned, frozen, or dried fruits and vegetables 

The House bill expands the forms of fruits and vegetables 

made available to students through the Fresh Fruit and Vegetable 

Program to include canned, frozen, and dried. (Section 4048) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment reauthorizes the Fresh Fruit and 

Vegetable program without revision. The amendment adds a new 

section creating a pilot project in schools participating in the Fresh 

Fruit and Vegetable Program in not less than five states to evaluate the impact of allowing schools to offer all forms of fruits and 

vegetables as part of the Program. $5 million in mandatory funding 

is provided to carry out the pilot project. (Section 4214) 

The Managers recognize that the Fresh Fruit and Vegetable 

Program (FFVP) has been highly effective in increasing consumption of fruits and vegetables among low income students. Studies 

have shown that children participating in FFVP have a statistically 

significant (15 percent) increase in consumption of fruits and vegetables. The Managers do not intend to minimize the effectiveness 


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of the current FFVP by establishing pilots for all forms. The Managers expect USDA to determine interested schools in an efficient 

manner and to implement the pilot at the start of the 2014 school 

year. The Managers expect USDA to quickly inform schools of the 

ability to participate in the pilot and to develop criteria based on 

recent school nutrition regulations and the Dietary Guidelines for 

Americans. Recognizing that food packaging technologies include 

processes such as shelf-stable cups and pouches that allow for safe 

handling while maximizing quality and nutrient retention, the Secretary should ensure that this program does not exclude these additional packaging methods. The Managers encourage USDA to 

work closely with participating schools to gather information on the 

types of schools that participate, identify how the pilot program is 

implemented in those schools, determine continued interest in participating in such a program, and learn from students and teachers 

about students’ attitudes and actual behavior during the pilot program. The Managers intend for USDA to conduct a robust evaluation of the outcomes of these pilots, and the Secretary shall provide 

periodic updates to the House and Senate Committees on Agriculture on the implementation, operation, and evaluation of this 

pilot. 

(36) Additional authority for purchase of fresh fruits, vegetables, 

and other specialty food crops/encouraging locally and regionally grown and raised food 

The House bill includes a pilot program that would allow five 

states to use the fresh fruit and vegetable funding for their own 

local sourcing of produce. (Section 4049) The House bill allows 

USDA to permit school food authorities with low annual commodity 

entitlement values to substitute local foods entirely or partially for 

USDA provided foods. The House bill gives USDA discretion to establish cost-neutral farm-to-school demonstration projects. (Section 

4050) 

The Senate amendment continues the ‘‘DoD Fresh Program’’ 

through FY2018. (Section 4201) The Senate amendment requires 

USDA to conduct demonstration projects ‘‘to facilitate the purchase 

of unprocessed and minimally processed locally grown and locally 

raised agricultural products’’ for schools that participate in the National School Lunch and Breakfast program. (Section 4208) 

The Conference substitute adopts the House provision with an 

amendment. The amendment directs the Secretary to carry out a 

pilot project in not more than eight states that provides the selected states flexibility in procuring unprocessed fruits and vegetables by allowing the states to use multiple suppliers and products 

and by allowing geographic preference. (Sections 4201 and 4202) 

The Managers acknowledge that USDA is already conducting 

pilot projects in two states for the purpose of developing new methods for local procurement. The Conference substitute pilots are intended to complement these efforts. The Managers expect the Secretary to select states with a variety of in-state agricultural economies, noting that states, such as Vermont, Oregon, and New York, 

have demonstrated an assortment of local procurement practices. 

The Managers expect the Secretary to work with the selected 

states in order to maximize flexibility for geographic preferences, 


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including allowing schools to specifically request local products as 

long as competition is maintained, during procurement. Further, 

the Managers expect the Secretary to tailor the pilots to state specific needs regarding the size and structure of school systems and 

enactment of reporting requirements. 

(37) Review of public health benefits of white potatoes 

The House bill requires the Secretary to conduct a review of 

the economic and public health benefits of white potatoes on lowincome families at nutritional risk. (Section 4051) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate position. 

(38) Review of sole-source contracts in Federal nutrition programs 

The House bill directs USDA to conduct a study on sole-source 

contracting in federal nutrition programs to evaluate the effects 

such contracts have on program participation, program goals, nonprogram consumers, retailers and free market dynamics. (Section 

4053) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4212) 

(39) Purchase of Halal and Kosher food for emergency food assistance program 

The House bill requires USDA to facilitate purchases of Kosher 

and Halal foods within the Emergency Food Assistance Program. 

(Section 4054) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

4207) 

(40) Quality control standards 

The Senate amendment strikes the Secretary’s authority to 

waive quality control (QC) penalties. (Section 4011) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 4020) 

(41) Food Insecurity Nutrition Incentive 

The Senate amendment amends the hunger-free community 

grants to establish ‘‘incentive grants’’ for projects that incentivize 

SNAP participants to buy fruits and vegetables. The Senate 

amendment limits federal cost share to 50 percent and provides 

$100 million in mandatory funding over five years. The Senate 

amendment provides discretionary authority of $5 million per year. 

(Section 4204) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment renames the program the Food Insecurity Nutrition Incentive. (Section 4208) 

The Managers intend for these grants to improve access to and 

reduce the cost of fruits and vegetables for SNAP recipients. The 

Managers intend for the grants to test new methods and techVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00451 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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nologies that facilitate the purchase of fresh fruits and vegetables 

by SNAP recipients from a variety of sources, including direct to 

consumer markets. The Managers encourage the Secretary to consult with non-profit organizations with experience conducting similar programs on the design and implementation of the incentive 

grants. 

(42) Pulse crop products 

The Senate amendment creates a pilot project to purchase 

pulse crops (dry beans, dry peas, lentils, and chick peas) and pulse 

crop products for schools. The Senate amendment authorizes up to 

$10 million in discretionary appropriations. (Section 4206) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 4213) 

(43) Dietary Guidelines for Americans 

The Senate amendment requires that the guidelines include 

specifications for pregnant women and children under the age of 

two years, by no later than the 2020 edition. (Section 4207) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 4204) 

(44) Multiagency task force 

The Senate amendment requires USDA to establish a multiagency task force to provide guidance to the commodity distribution 

programs. The task force must be composed of at least four members, representing FNS’s Food Distribution Division, Agricultural 

Marketing Service (AMS), Farm Service Agency (FSA), and Food 

Safety and Inspection Service (FSIS). The task force is to report to 

Congress not later than one year after convening. (Section 4209) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 4205) 

(45) Food and agriculture service learning program 

The Senate amendment creates a Food and Agriculture Service 

Learning Program with statutory purposes that include: increasing 

capacity for food, garden, and nutrition education; complementing 

the work of the federal farm-to-school grants; and coordinating 

with the related National Institute of Food and Agriculture (NIFA) 

work. USDA is to evaluate the program regularly and report the 

results to congressional committees of jurisdiction. $25 million is 

authorized to be appropriated and is to remain available until expended. 20 percent of funds are set aside for NIFA for particular 

purposes, and funding is to ‘‘supplement not supplant’’ current efforts. (Section 4210) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment places the program under the jurisdiction of the National Institute of Food and Agriculture (NIFA) 

and structures it as a competitive grant program. Further, the 

amendment deletes the ‘‘Definitions’’ subsection and removes the 


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20 percent funding set-aside previously designated to NIFA for 

housing, training, and overseeing participants. (Section 4209) 

TITLE V—CREDIT

(1) Persons Eligible for Real Estate Loans 

The House bill adds ‘‘and such other legal entities as the Secretary deems appropriate’’. It also requires that an owner-operator 

own at least 75 percent of an embedded entity and gives the Secretary authority to set the appropriate ownership level. It also 

gives authority to the Secretary to define the acceptable experience 

necessary to qualify for direct farm ownership loans. (Section 5001) 

The Senate amendment is similar to the House provision but 

does not require 75 percent ownership of an embedded entity, and 

does not explicitly require that a farmer prove ‘‘sufficient’’ credit is 

obtainable elsewhere. (Section 3101) 

The Conference substitute adopts the House provision. 

(2) Conservation Loan and Loan Guarantee Program 

The House bill gives USDA discretion to allow alternative legal 

entities to qualify for conservation loans and increases the maximum conservation loan guarantee to 90 percent. It additionally 

authorizes the conservation loan program through FY 2018. (Section 5002) 

The Senate amendment gives USDA similar discretion, by reference. (Section 3103) 

The Conference substitute adopts the House provision with an 

amendment. The amendment increases the amount of the conservation loan guarantee from 75 percent to 80 percent. For socially disadvantaged farmers or ranchers and beginning farmers 

and ranchers, the conservation loan guarantee is increased to 90 

percent. The program is authorized to be appropriated 

$150,000,000 through fiscal year 2018. (Section 5002) 

(3) Down payment loan program 

The House bill increases the maximum down payment loan to 

45 percent of $667,000. (Section 5003) 

The Senate amendment is the same as the House bill. (Section 

3107) 

The Conference substitute adopts the House provision. (Section 

5005) 

(4) Mineral rights 

The House bill eliminates the requirement that mineral rights 

be appraised. (Section 5004) 

The Senate amendment is the same as current law. (Section 

3105) 

The Conference substitute adopts the House provision. (Section 

5004) 

(5) Operating loans, Persons who are eligible 

The House bill gives USDA discretion to allow alternative legal 

entities to qualify for farm operating loans and allows an embedded 

entity of a borrower to be deemed eligible for an operating loan if 


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the entity borrower owns at least 75 percent of the embedded entity. (Section 5101) 

The Senate amendment is the same as the House bill. (Section 

3201) 

The Conference substitute adopts the House provision. (Section 

5101) 

(5.1) Term Limits on Direct Loans 

The House bill is the same as current law. 

The Senate amendment extends direct loan term limits to ten 

years and allows borrowers to earn back eligibility, one year in the 

program for every year out. (Section 3201) 

The Conference substitute adopts the House provision with an 

amendment. The amendment maintains current law but requires 

the Secretary of Agriculture to submit an annual report to Congress that details the status of the Department’s direct farm operation loan program, and the impact of term limits on direct loan 

borrowers. (Section 5104) 

(5.2) Term Limits on Guaranteed Loans 

The House bill is the same as current law. 

The Senate amendment removes the provision. 

The Conference substitute adopts the Senate provision. (Section 5107) 

(6) Operating loans, rural residency requirements 

The House bill eliminates the rural residency requirement for 

youth loans. (Section 5102) 

The Senate amendment is the same as current law. 

The Conference substitute adopts the House provision. (Section 

5102) 

(7) Personal liability of youth loan borrower 

The House bill gives USDA the option to waive personal liability for youth loans if default is due to circumstances beyond the 

borrower’s control. (Section 5103) 

The Senate amendment allows a borrower who defaults on a 

youth loan to still qualify for educational loans. (Section 3201) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes the Secretary of Agriculture to, on a case by case basis, provide debt forgiveness of a 

youth loan if the borrower was unable to repay the loan due to circumstances beyond the control of the borrower. The debt forgiveness provided by this section shall not be used by other Federal 

agencies in determining eligibility of the borrower for any loan 

made or guaranteed by that agency. In no case shall a delinquent 

borrower or a borrower provided debt forgiveness be denied a loan 

or loan guarantee from the Federal government to pay for educational expenses of the borrower. (Section 5103) 

(8) Microloans 

The House bill authorizes the Secretary to make operating 

loans of $35,000 to eligible borrowers with a total microloan indebtedness of $70,000 to any borrower. It also authorizes intermediary 


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lending projects and exempts microloans from counting toward direct loan limits. The bill applies limited resource loan rates to beginning and veteran farmers or ranchers. (Section 5104) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment sets the total indebtedness level at 

$50,000. It also authorizes the Secretary to conduct a pilot project 

to contract with community development financial institutions to 

make or guarantee microloans and to provide business, financial 

and marketing services to borrowers. The Secretary is limited to 

$10 million worth of loans through the new pilot project in any fiscal year. (Section 5106) 

To further clarify, the Conference substitute authorizes the Department of Agriculture to establish cooperative lending pilot 

projects to aid administration of microloans. The Managers believe 

that the Farm Service Agency should maintain its mission focus on 

direct lending, and consider the agency’s existing staffing and expertise when determining how to operate a pilot. The Managers expect the Secretary to carefully review intermediaries’ loan loss reserve funds, underwriting standards, and other factors that preserve program integrity. Therefore, the Conference substitute provides that when carrying out this pilot program, the Department 

should utilize community financial institutions that have been approved by the Department of the Treasury in order to maximize the 

effectiveness of U.S. government resources. 

(9) Emergency loans eligibility 

The House bill gives USDA discretion to allow alternative legal 

entities to qualify for an emergency loan. Additionally, it allows an 

embedded entity of a borrower to be deemed eligible for an operating loan if the entity borrower owns at least 75 percent of the 

embedded entity. (Section 5201) 

The Senate amendment is the same as the House bill. (Section 

3301) 

The Conference substitute adopts the House provision. (Section 

5201) 

(10) Beginning Farmer and Rancher individual development pilot 

program 

The House bill authorizes current law through 2018. (Section 

5301) 

The Senate amendment is the same as the House bill. (Section 

3428) 

The Conference substitute adopts the Senate provision. (Section 5301) 

(11) Eligible Beginning Farmers and Ranchers 

The House bill expands the definition of a qualified beginning 

farmer or rancher to include ‘‘or other such legal entity’’. It also 

changes the acreage ownership limitation from 30 percent of the 

median acreage of farms in the county to 30 percent of the average 

acreage of farms in the county. (Section 5302) 

The Senate amendment replaces ‘‘median’’ with ‘‘average’’ in 

the definition and has the same 30 percent limitation, but does not 


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give USDA discretion to allow alternative legal entities to qualify 

as a beginning farmer or rancher. (Section 3002) 

The Conference substitute adopts the House provision with an 

amendment. The amendment includes language that will ensure 

that any legal entity included in the definition of beginning farmer 

or rancher for purposes of qualifying for USDA loans (including cooperatives, corporations, partnerships, joint operations, or other 

such legal entities as the Secretary considers appropriate), will 

have members, stockholders, partners, or joint operators who all 

qualify individually as beginning farmers. This provision is meant 

to ensure that any priorities given to beginning farmers or ranchers are restricted to individual beginning farmers or ranchers or 

entities comprised entirely of beginning farmers or ranchers. (Section 5303) 

(12) Loan Authorization Levels 

The House bill reauthorizes the Secretary’s ability to make 

loans under each subtitle through 2018. (Section 5303) 

The Senate amendment is the same as the House bill. (Section 

3431) 

The Conference substitute adopts the House provision. (Section 

5304) 

(13) Beginning Farmer and Rancher, priorities 

The House bill adds a new priority for beginning farmer and 

rancher direct loans to those applicants who apply under the down 

payment loan program or with joint financing arrangements. (Section 5304) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment establishes a floating interest rate 

with a floor of 2.5 percent for joint financing arrangements (arrangements where the direct farm ownership loan does not exceed 

50 percent of any total loan). (Section 5003) 

The Managers intend for modifications to the interest rates for 

joint financing arrangements (in Sec. 307(a)(3)(D) of the Con Act) 

to encourage Beginning Farmer and Rancher borrowers to first rely 

on the down payment loan program (in Sec. 310E of the Con Act) 

for their ownership credit needs. They should then look to joint financing arrangements, and lastly, to the Direct Farm Ownership 

Loan programs. This will help maximize the number of borrowers 

served by prioritizing programs that incorporate public-private 

partnerships or personal investments 

(14) Loan Fund Set-Asides 

The House bill reauthorizes the loan fund set asides through 

2018. (Section 5305) 

The Senate amendment is the same as the House bill. (Section 

3431) 

The Conference substitute adopts the Senate provision. (Section 5304) 


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(15) Conforming amendment 

The House bill strikes ‘‘section 302(a)(2) or 311(a)(2)’’ and inserts ‘‘section 302(a)(1)(B) or 311 (a)(1)(B)’’. (Section 5306) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

5306) 

(16) Agricultural Mediation programs 

The House bill reauthorizes the state agricultural mediation 

programs through 2018. (Section 5401) 

The Senate amendment is the same as the House. (Section 

5101) 

The Conference substitute adopts the Senate provision. (Section 5401) 

(17) Loans to Purchasers of Highly Fractionated Land 

The House bill authorizes the use of a revolving loan fund for 

purchasers of highly fractionated land. (Section 5501) 

The Senate amendment includes the House language, updates 

references to other laws, and requires interagency consultation between USDA and the Department of the Interior. Additionally, it 

simplifies appraisals for purchasers of highly fractionated land by 

requesting only one appraisal recognized by USDA or the Department of the Interior. (Section 5102 and Section 5103) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment strikes the requirement that USDA 

consult with the Department of Interior. (Sections 5402 and 5403) 

It is the intent of the Managers that the Department should 

consult with the Secretary of the Interior when determining regulations and procedures to define eligible purchasers of highly 

fractionated land relevant to provisions (Sections 5402 and 5403) in 

this Title. 

(18) Compensation disclosure by farm credit system institutions 

The Senate amendment requires the Farm Credit Administration to review rules regarding compensation packages of senior officers in order to improve compensation disclosure. (Section 5104) 

The House bill contains no comparable provisions. 

The Conference substitute adopts the Senate provision. (Section 5404) 

The Managers support reasonable transparency practices at 

Farm Credit System (FCS) institutions that support stockholders’ 

understanding of the operation of those institutions. The Managers 

also recognize that the Farm Credit Act clearly authorizes the 

Farm Credit Administration (FCA) to require appropriate disclosure from FCS institutions, including disclosures describing compensation practices. The Farm Credit Act does not explicitly contemplate stockholder voting on specific issues such as compensation, and the Managers are concerned such actions could interfere 

with the explicit responsibility and duty of the board. Therefore, 

the Agency should take this into consideration as it reviews its regulation. 


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(19) Emergency loan, equine farmers 

The House bill is the same as current law. 

The Senate amendment does not mention equine farmers and 

ranchers (nor in Sec. 3301). (Section 3002) 

The Conference substitute adopts the House provision. (Section 

5201) 

(20) Repayment Requirements for Farm Ownership Loans 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law. 

(Section 3105) 

The Conference substitute adopts the House provision. 

(21) Limited-Resource Loans 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3106) 

The Conference substitute adopts the House provision. 

(22) Beginning Farmer and Socially Disadvantaged Farmer Contract Land Sales Program 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3108) 

The Conference substitute adopts the Senate provision. 

(23) Loans to gleaners 

The Senate amendment creates a pilot program to support 

Healthy Foods for the Hungry. It authorizes individual loans of between $500 and $5,000 to gleaners and other regular farm operating loan borrowers for the purpose of assisting the borrowers in 

providing food for the hungry. The program is funded from within 

the farm operating loan program, up to a maximum total of 

$500,000 for the entire program. (Section 3201) 

The House bill contains no comparable provision. 

The Conference substitute amends and moves this section to 

Title IV. (Section 4026) 

(24) Direct loans, locally produced agriculture products 

The Senate amendment adds the assistance of a farmer in the 

production of a locally or regionally produced agricultural food 

product as a new purpose for direct loans. (Section 3202 (a)(11)) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

Pertaining to (24), (25), (25.1), and (25.2) of this conference report, the Managers affirm the Department’s authority to directly 

lend to and guarantee loans for producers of local/regional foods. 

Congress expects the Department to incorporate information on 

local/regional markets and food production into its loan officer 

training and into any borrower or potential borrower outreach. The 

Managers also intend that valuations of local/regional food under 

Section 5105 will be incorporated into this training and outreach. 

Given the potential for price premiums paid for local/regional food, 

the valuation is an important part of understanding the markets 


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for local/regional foods. The Managers expect the Secretary to develop a publically available and defensible methodology for assessing and factoring local food price premiums into loan decisions 

made by the Department. 

(25) Loan officers, training for loans to local/regional farmers 

The Senate amendment requires the Secretary to train loan officers in pricing of local and regional food production. (Section 

3202(e)(1)) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

(25.1) Valuation for local/regional crops for purposes of lending 

The Senate amendment requires the Secretary to develop valuation methods for local/regional food for purposes of lending to 

local/regional food producers. (Section 3202(e)(2) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 5105) 

(25.2) Outreach for lending to local/regional food producers 

The Senate amendment requires the Secretary to develop an 

outreach strategy to provide loans to local/regional food producers. 

(Section 3302(e)(3)) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

(26) Emergency loans, commercial fishermen 

The Senate amendment adds commercial fishermen to the list 

of eligible borrowers for emergency loans. (Section 3301(a)) 

The House amendment contains no comparable provision. 

The Conference substitute adopts the House provision. 

(27) Hazard insurance, poultry farmers exception 

The Senate amendment omits any exception for poultry farmers in the hazard insurance requirement. (Section 3301(d)) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

(28) Basic Terms for Loans 

The House bill is the same as current law. 

The Senate amendment does not include section 307(a)(5)(B). 

The Conference substitute adopts the House position. 

The Managers of the House Agriculture Committee and the 

Senate Committee on Agriculture, Nutrition, and Forestry believe 

it is important to periodically review and update statutory language such as the Consolidated Farm and Rural Development Act 

and will do so as time allows. 

(29) Guaranteed Farmer Loans 

The House bill is the same as current law. 


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The Senate amendment is substantially similar to current law 

though it eliminates coordination with the state in (i). (Section 

3402) 

The Conference substitute adopts the House provision. 

(30) Administrative Provisions 

The House bill is the same as current law. 

The Senate amendment does not include Section 309(b)–(g) 

(the Federal Credit reform Act of 1990 rendered these provisions— 

no longer a revolving fund). Also does not include section 309(i). 

The Conference substitute adopts the House provision. 

(31) Soil Conservation District Loans 

The House bill is the same as current law. 

The Senate amendment does not include Section 314. 

The Conference substitute adopts the House provision. 

(32) Interest rate, term of loan, and line of credit 

The House bill is the same as current law. 

The Senate amendment does not include section 316(b) except 

for the first two sentences that provide the operating loan at seven 

years. (Section 3411) 

The Conference substitute adopts the House provision. 

(32.1) Line of Credit Loans, Qualifying Commodities 

The House bill is the same as current law. 

The Senate amendment does not include Section 316(c)(5)(B) 

which made line of credit loans available to commodities eligible for 

price support programs before the 1996 Farm Bill. 

The Conference substitute adopts the House provision. 

(33) Purpose for emergency loans 

The House bill is the same as current law. 

The Senate amendment does not include Section 321(b)(3). 

The Conference substitute adopts the House provision. 

(34) Considerations for making emergency loans 

The House bill is the same as current law. 

The Senate amendment does not include Section 322(a) nor 

322(b). 

The Conference substitute adopts the House provision. 

(35) Emergency Credit Revolving Fund 

The House bill is the same as current law. 

The Senate amendment does not include Section 326. 

The Conference substitute adopts the House provision. 

(36) Liquidation of loans become part of the Emergency Credit Revolving Fund 

The House bill is the same as current law. 

The Senate amendment does not include Section 327. 

The Conference substitute adopts the House provision. 


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(37) General Powers all loan programs 

The House bill is the same as current law. 

The Senate amendment does not include Section 331(a), but 

see ‘‘Section 3403’’ below. 

The Conference substitute adopts the House provision. 

(38) Timing for the processing of farm loan applications 

The House bill is the same as current law. 

The Senate amendment does not include Section 333A(d)–(e), 

but instead includes Section 3403 as follows: 

‘‘Section 3403. Provision of information to borrowers. 

‘‘Approval Notification—The Secretary shall approve or disapprove an application for a loan or loan guarantee made under 

this subtitle, and notify the applicant of such action, not later than 

60 days after the date on which the Secretary has received a complete application for the loan or loan guarantee. 

‘‘(b) List of Lenders.—The Secretary shall make available to 

any farmer, on request, a list of lenders in the area that participate 

in guaranteed farmer program loan programs established under 

this subtitle, and other lenders in the area that express a desire 

to participate in the programs and that request inclusion on the 

list. 

‘‘(c) Other Information.— 

‘‘(1) In general.—On the request of a borrower, the Secretary 

shall make available to the borrower— 

‘‘(A) a copy of each document signed by the borrower; ’’ 

‘‘(B) a copy of each appraisal performed with respect to the 

loan; and 

‘‘(C) any document that the Secretary is required to provide to 

the borrower under any law in effect on the date of the request. 

(2) Rule of construction.—Paragraph (1) shall not supersede 

any duty imposed on the Secretary by a law in effect on January 

5, 1988, unless the duty directly conflicts with a duty under paragraph (1).’’ 

The Conference substitute adopts the House provision. 

(39) Rules and Regulations for Debt Service and Margin Requirements 

The House bill is the same as current law. 

The Senate amendment does not include Section 339(b) or Section 339(e). 

The Conference substitute adopts the House provision. 

(40) Notice of Loan Service Programs 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3404) 

The Conference substitute adopts the House provision. 

(41) Planting and Production History Guidelines 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3405) 

The Conference substitute adopts the House provision. 


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(42) Special Conditions and Limitations on Loans 

The House bill is the same as current law. 

The Senate amendment is similar to current law though it deletes the word ‘‘sufficient’’. It also combines the provisions of Section 333 and 333A in current law. (Section 3406) 

The Conference substitute adopts the House provision. 

(43) Graduation of Borrowers 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3407) 

The Conference substitute adopts the House provision. 

(44) Debt Adjustment and Credit Counseling 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3408) 

The Conference substitute adopts the House provision. 

(45) Security Servicing 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law. 

(Section 3409) 

The Conference substitute adopts the House provision. 

(46) Contracts on Loan Security Properties 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law. 

(Section 3410) 

The Conference substitute adopts the House provision. 

(47) Debt Restructuring and Loan Servicing 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law. 

(Section 3411) 

The Conference substitute adopts the House provision. 

(48) Relief for Mobilized military Reservists from Certain Agricultural loan obligations 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3412) 

The Conference substitute adopts the House provision. 

(49) Interest Rate Reduction Program 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law 

though it restricts the program to loans under this ‘‘subtitle’’. (Section 3413) 

The Conference substitute adopts the House provision. 

(50) Rules and Regulations for Debt Service and Margin Requirements 

The House bill is the same as current law. 


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The Senate amendment does not include Section 339(b) or 

339(e). 

The Conference substitute adopts the House provision. 

(51) Homestead Property 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3414) 

The Conference substitute adopts the House provision. 

(52) Transfer of Inventory Land 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3415) 

The Conference substitute adopts the House provision. 

(53) Target Participation Rates 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3416) 

The Conference substitute adopts the House provision. 

(54) Compromise or adjustment of debts or claims by guaranteed 

lender 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3417) 

The Conference substitute adopts the House provision. 

(55) Waiver of Mediation Rights by Borrowers 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3418) 

The Conference substitute adopts the House provision. 

(56) Borrower Training 

The House bill is the same as current law. 

The Senate amendment is substantially similar to current law. 

It eliminates the ‘‘(as determined by the appropriate county committee)’’. (Section 3419) 

The Conference substitute adopts the House provision. 

(57) Loan Assessments 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3420) 

The Conference substitute adopts the House provision. 

(58) Supervised Credit 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3421) 

The Conference substitute adopts the House provision. 


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(59) Market Placement 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3422) 

The Conference substitute adopts the House provision. 

(60) Recordkeeping of Loans by Gender of Borrower 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3423) 

The Conference substitute adopts the House provision. 

(61) Crop Insurance Requirement 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3424) 

The Conference substitute adopts the House provision. 

(62) Loan and Loan Servicing Limitations 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3425) 

The Conference substitute adopts the House provision. 

(63) Short Form Certification of Farm Program Borrower Compliance 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3426) 

The Conference substitute adopts the House provision. 

(64) Underwriting Forms and Standards 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3427) 

The Conference substitute adopts the House provision. 

(65) Farmer Loan Pilot Projects 

The House bill is the same as current law. 

The Senate amendment authorizes the Secretary to conduct 

pilot projects of limited scope and duration to evaluate processes 

and techniques that may improve the efficiency and effectiveness 

of the programs carried out by this subtitle. (Section 3429) 

The Conference substitute adopts the Senate provision. (Section 5302) 

(66) Prohibition on use of Loans for Certain Purposes 

The House bill is the same as current law. 

The Senate amendment is the same as current law. (Section 

3430) 

The Conference substitute adopts the House provision. 

(67) Repeal of the application of the Bankhead Jones Act 

The House bill is the same as current law. 


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The Senate amendment outlines an AGRICULTURAL CREDIT 

INSURANCE FUND. The fund established pursuant to section 

11(a) of the Bankhead-Jones Farm Tenant Act (60 Stat. 1075, 

chapter 964) shall be known as the Agricultural Credit Insurance 

Fund (referred to in this section as the ‘Fund’, unless the context 

otherwise requires) for the discharge of the obligations of the Secretary under agreements insuring loans under this subtitle and 

loans and mortgages insured under prior authority. (Section 3401) 

The Conference substitute adopts the House provision. 

(68) Definitions 

The House bill is the same as current law. 

The Senate amendment contains the definition of the terms 

‘‘farmer’’, ‘‘beginning farmer or rancher’’, ‘‘United States’’, ‘‘direct 

loan’’, ‘‘farmer program loan’’, ‘‘qualified beginning farmer’’, ‘‘debt 

forgiveness’’, ‘‘rural area’’, ‘‘borrower’’, ‘‘loan service program’’, and 

‘‘primary loan servicing program’’. Additionally, it does not include 

the definitions of the terms ‘‘owner-operator’’, ‘‘insured’’, ‘‘contract 

of insurance’’, ‘‘joint operation’’, and ‘‘preservation loan servicing 

program’’. (Section 3002) 

The Conference substitute adopts the House provision. 

(69) Limitations for insured loans and guaranteed loans 

The House bill is the same as current law. 

The Senate amendment does not include Section 344. 

The Conference substitute adopts the House provision. 

(70) Maximum amounts for loans authorized, long-term cost projections 

The House bill is the same as current law. 

The Senate amendment does not include Section 346(a). 

The Conference substitute adopts the House provision. 

(71) Other Federal agencies provisions of technical assistance to 

farmer with loans 

The House bill is the same as current law. 

The Senate amendment does not include Section 347. 

The Conference substitute adopts the House provision. 

(72) Debt for nature 

The House bill is the same as current law. 

The Senate amendment defines the terms ‘‘highly erodible 

land’’ and ‘‘wildlife’’ in Section 3002, but does not include definitions for the terms ‘‘governmental entity’’ and ‘‘recreational purposes’’. (Section 3002) 

The Conference substitute adopts the House provision. 

(73) Purposes of farm loan programs 

The House bill is the same as current law. 

The Senate amendment does not include Section 350. 

The Conference substitute adopts the House provision. 

(74) Debt restructuring and loan servicing 

The House bill is the same as current law. 


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The Senate amendment does not include Section 353(f) or (h). 

The Conference substitute adopts the House provision. 

(75) Rural Development and Farm Loan Program Activities 

The House bill is the same as current law. 

The Senate amendment is the same as current law—included 

in (Section 3913). 

The Conference substitute adopts the House provision. 

(76) Payment of Interest as a condition of loan servicing for borrowers 

The House bill is the same as current law. 

The Senate amendment does not include Section 372. 

The Conference substitute adopts the House provision. 

(77) Making and Servicing of Loans by Personnel of State, County 

or Area Committees 

The House bill is the same as current law. 

The Senate amendment does not include Section 376. 

The Conference substitute adopts the House provision. 

(78) Eligibility of Employees of State, County, or Area Committee 

for loans and loan Guarantees 

The House bill is the same as current law. 

The Senate amendment does not include Section 377. 

The Conference substitute adopts the House provision. 

TITLE VI—RURAL DEVELOPMENT

(1) Water, Waste Disposal, and Wastewater Facility Grants 

The House bill reauthorizes the authorization of appropriations 

for fiscal years 2014 through 2018. (Section 6001) 

The Senate amendment is the same as the House. (Section 

6001) 

The Conference substitute adopts the House provision. (Section 

6001) 

(2) Rural Business Opportunity Grants 

The House bill reauthorizes the authorization of appropriations 

for fiscal years 2014 through 2018. (Section 6002) 

The Senate amendment authorizes appropriations of 

$65,000,000 for fiscal years 2014 through 2018 and combines the 

Rural Business Enterprise Grant and RBOG programs. (Section 

6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment strikes Sections 310B(c) and 

306(a)(11) in the Con Act and replaces them with the Rural Business Development Grant authority, allocating not more than 10 

percent of amounts appropriated for the purposes previously authorized under the Rural Business Opportunity Grant authority. 

(Section 6012) 

The Managers made an effort to streamline and consolidate 

programs whenever possible. The conference substitute combines 

two existing programs, the Rural Business Opportunity Grants proVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00466 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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gram and the Rural Business Enterprise Grants program, into a 

single program to be known as the Rural Business Development 

Grants program. The Managers intend for this new program to 

function in a manner similar to its predecessors and to award competitive grants to public agencies and non-profit community development organizations for business development, planning, technical 

assistance, or job training in rural areas. 

(3) Elimination of Reservation of Community Facilities Grant Program Funds 

The House bill repeals the reservation of funds. (Section 6003) 

The Senate amendment does not include the reservation of 

funds. (Section 6001) 

The Conference substitute adopts the House provision. (Section 

6002) 

(4) Utilization of Loan Guarantees for Community Facilities 

The House bill authorizes the Secretary to utilize loan guarantees for community facilities to the maximum extent possible. (Section 6004) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6004) 

(5) Rural Water and Wastewater Circuit Rider Program 

The House bill authorizes the Secretary to continue a national 

rural water and wastewater circuit rider program. Additionally, the 

bill authorizes appropriations of $20,000,000 for each fiscal year. 

(Section 6005) 

The Senate amendment authorizes appropriations of $25,000,000 for each fiscal year. 

The Conference substitute adopts the House provision. (Section 

6003) 

(6) Tribal College and University Essential Community Facilities 

The House bill authorizes appropriations of $5,000,000 for fiscal years 2014 through 2018. (Section 6006) 

The Senate amendment authorizes appropriations of 

$10,000,000 for fiscal years 2014 through 2018. Additionally, the 

amendment authorizes the Secretary to establish the maximum 

percentage of the cost of the project covered by this grant and limits the amount of non-Federal support to no more than 5 percent 

of the total cost of the project. The amendment also establishes 

grant priorities, the maximum grant amount, grant rate and local 

share requirements applicable to these grants. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations through 2018. (Section 6005) 

(7) Essential Community Facilities Technical Assistance and Training 

The House bill authorizes technical assistance and training for 

essential community facilities. Additionally, the bill reserves not 

less than 3 nor more than 5 percent of any funds appropriated to 


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carry out each of the community facilities programs authorized 

under subsection 306(a). (Section 6007) 

The Senate amendment authorizes technical assistance to applicants and participants for community facilities programs. Additionally, under the amendment, the Secretary may not use more 

than 3 percent of the amount of funds made available to participants for a fiscal year for a community facilities program to provide 

technical assistance. (Section 6001) 

The Conference substitute adopts the House provision. (Section 

6006) 

The Managers understand that rural communities, primarily 

due to limited staffing, often need technical assistance when developing funding applications. The conference substitute authorizes as 

much as 5 percent of the funding available through the Community 

Facilities Loan and Grant Program for technical assistance to help 

smaller communities in the development of their applications to the 

program. 

(8) Emergency Imminent Community Water Assistance Grant Program 

The House bill authorizes appropriations of $27,000,000 for fiscal years 2014 through 2018. (Section 6008) 

The Senate amendment authorizes appropriations of $35,000,000 for fiscal years 2014 through 2018. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations through 2018. (Section 6007) 

(9) Household Water Well Systems 

The House bill authorizes appropriations of $5,000,000 for fiscal years 2014 through 2018. (Section 6009) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6009) 

(10) Rural Business and Industry Loan Program 

The House bill amends subsection 310B(a) to include working 

capital as a loan purpose. Additionally, paragraph 310B(g)(7) is 

amended to authorize the Secretary, when determining whether a 

cooperative organization is eligible for a guaranteed business and 

industry loan, to take accounts receivable as security for obligations, and a borrower may use accounts receivable as collateral to 

secure a loan. (Section 6010) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment clarifies that the additional loan purpose is the financing of working capital. (Section 6010) 

The Managers recognize the importance of ‘‘Main Street’’ businesses to rural communities, and that the recent economic downturn has reduced the affordability of credit in rural areas, putting 

considerable strain on these small businesses. The Conference substitute addresses this issue through changes to the Business & Industry (B&I) Loan Program intended to ensure working capital is 

an eligible use of funds. 


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The Conference substitute also provides flexibility for the Secretary to consider accounts receivable for the purposes of collateral 

to allow lenders to help meet the capital needs of small businesses 

in rural areas. The Managers encourage USDA to examine additional ways to guarantee lending to small brick-and-mortar, community-owned businesses, such as an increased loan guarantee percentage for smaller loans, a streamlined process for making B&I 

loans of less than $250,000, and making operating lines of credit 

eligible as a program use. 

Additionally, the Managers encourage USDA to better coordinate with the Small Business Administration on outreach to rural 

lenders related to the B&I loan guarantee program. 

(11) Rural Cooperative Development Grants 

The House bill authorizes appropriations of $40,000,000 for fiscal years 2014 through 2018. (Section 6011) 

The Senate amendment authorizes appropriations of $50,000,000 for fiscal years 2014 through 2018 and an interagency 

working group to foster cooperative development and ensure coordination with Federal agencies and cooperative organizations. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes appropriations of 

$40,000,000 for each fiscal year 2014 through 2018 and an interagency working group to foster cooperative development and ensure 

coordination with Federal agencies and cooperative organizations. 

(Section 6013) 

(12) Locally or Regionally Produced Agricultural Food Products 

The House bill authorizes a reservation of funds through fiscal 

year 2018 of not less than 5 percent and not more than 7 percent 

of the funds made available to carry out subsection (g), business 

and industry direct and guaranteed loans. (Section 6012) 

The Senate amendment authorizes a reservation of funds for 

fiscal years 2014 through 2018, not less than 5 percent of the total 

amount of funds made available to carry out subsection (e), loans 

to private business enterprises and business and industry direct 

and guaranteed loans. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the reservation of funds 

through 2018. (Section 6014) 

(13) Intermediary Relending Program 

The House bill moves the authorization of the Intermediary 

Relending Program (IRP) to the Consolidated Farm and Rural Development Act (Con Act). Additionally, it authorizes $10,000,000 for 

fiscal years 2014 through 2018. (Section 6013) 

The Senate amendment moves authorization of IRP to the Con 

Act. Additionally, it authorizes $50,000,000 for fiscal years 2014 

through 2018. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment prohibits the Secretary from making 

IRP loans under another authority, authorizes appropriations of 

$25,000,000 for each fiscal year 2014 through 2018, and eliminates 

another authority for the program. (Section 6017) 


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(14) Rural College Coordinated Strategy 

The House bill authorizes the Secretary to develop a rural community college coordinated strategy across the Rural Development 

mission area. (Section 6014) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6018) 

The Managers recognize the contributions that rural community and technical colleges make in the development of a welltrained workforce in rural communities. These institutions serve 

over 3.5 million students, and train sixty-percent of first responders and allied health care providers in rural communities. The 

Managers expect the Secretary to work closely with the rural community and technical colleges to create a coordinated strategy 

which would guide the investments USDA already makes through 

rural development programs. Noting that a number of programs 

have varying eligibility criteria and purposes, the Managers expect 

the Secretary to look across the entire suite of rural development 

programs when creating a coordinated strategy to help deploy the 

most appropriate resources for each of the needs identified in consultation with representatives from the rural community and technical colleges. These investments should continue to utilize appropriate authorities under both the Rural Electrification Act and the 

Consolidated Farm and Rural Development Act, including investments in technology and facilities, to better serve rural students. 

(15) Rural Water and Waste Disposal Infrastructure 

The House bill authorizes the Secretary, with respect to water 

and waste disposal direct and guaranteed loans, to encourage to 

the maximum extent practicable, private or cooperative lenders to 

finance rural water and waste disposal facilities by maximizing the 

use of loan guarantees in communities where the population exceeds 5,500, maximizing the use of direct loans where the impact 

on rate payers will be material when compared to a loan guarantee, in the case of projects that require interim financing above 

$500,000 requiring those projects to initially seek such financing 

from a private or cooperative lender and determining if existing direct borrowers can refinance with a private or cooperative lender 

prior to providing a new direct loan. (Section 6015) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6019) 

The Managers note that there is over $3 billion in pending applications for water and wastewater projects throughout rural 

America. Reauthorization of water infrastructure programs is a 

vital component to rural economic development. Access to water 

systems promotes the health of rural communities and attracts 

businesses to invest in communities which are well supported by 

critical infrastructure. To address the current backlog, the Conference substitute directs USDA to maximize the use of guarantees 

through private or cooperative lenders for projects for larger communities. The Managers expect these provisions to leverage available funds to serve more communities than might otherwise be 

served solely through direct loans. 


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(16) Simplified Applications 

The House bill requires the Secretary, to the maximum extent 

practicable, to develop a simplified application process for covered 

programs authorized by the Con Act. It also requires a report to 

Congress on implementation of the simplified applications. (Section 

6016) 

The Senate amendment requires the Secretary to expedite the 

process of creating user-friendly and accessible application forms 

and procedures prioritizing programs and applications at the individual level. It also requires the Secretary to offer a simplified application form and process for project proposals requesting less 

than $50,000 for VAPG. (Section 6001) 

The Conference substitute adopts the House provision. (Section 

6020) 

(17) Grants for NOAA Weather Radio Transmitters 

The House bill authorizes appropriations of $1,000,000 for fiscal years 2014 through 2018. (Section 6017) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6022) 

(18) Rural Microentrepreneur Assistance Program 

The House bill authorizes appropriations of $20,000,000 for fiscal years 2014 through 2018. (Section 6018) 

The Senate amendment allots the CCC $3,000,000 funds for 

each of fiscal years 2014 through 2018 to be available until expended. Additionally, the amendment defines Microenterprise Development Organization to include an organization that is a collaboration of rural nonprofit entities serving a region or State, if 

one lead nonprofit entity is the sole underwriter of all loans and 

is responsible for associated risks. The amendment defines the 

term ‘‘training’’ to mean teaching broad business principles or general business skills in a group or public setting and the term ‘‘technical assistance’’ to mean working with a business client in a oneto-one manner. The amendment requires 15 percent matching 

funds, the form of which can be community development block 

grants. (Section 6001) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes of funds from the Commodity Credit Corporation $3,000,000 for each fiscal year 2014 

through 2018 and reauthorizes the authorization of appropriations 

through 2018. (Section 6023) 

(19) Delta Regional Authority 

The House bill authorizes appropriations of $12,000,000 for fiscal years 2014 through 2018. It also extends the termination of authority until October 1, 2018. (Section 6019) 

The Senate amendment authorizes appropriations of 

$30,000,000 for fiscal years 2014 through 2018. The termination 

extension is the same as the House. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the Authority through 


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2018 and the authorization of appropriations for fiscal years 2014 

through 2018. (Section 6026) 

(20) Northern Great Plains Regional Authority 

The House bill authorizes appropriations of $2,000,000 for fiscal years 2014 through 2018 and extends the termination of authority. (Section 6020) 

The Senate amendment authorizes appropriations of 

$30,000,000 for fiscal years 2014 through 2018, has a similar termination of authority provision as the House, and amends the annual audit requirement. (Section 6001) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authority through 

2018 and the authorization of appropriations for fiscal years 2014 

through 2018, as well as requires an annual audit only if funds are 

appropriated to the subtitle. (Section 6027) 

(21) Rural Business Investment Program 

The House bill authorizes appropriations of $20,000,000 for fiscal years 2014 through 2018. (Section 6021) 

The Senate amendment authorizes appropriations of 

$25,000,000 through fiscal year 2018 and requires each rural business investment company to meet capital requirements as provided 

by the Secretary. (Section 6001) 

The Conference substitute adopts the House provision. (Section 

6028) 

(22) Definitions, ‘‘Section 3002’’, Apply to Both Credit and RD in 

Rewrite 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. (Section 6001) 

The House bill is the same as current law. 

The Conference substitute adopts the House provision. 

(23) Water and Waste Disposal Loans, Loan Guarantees, and 

Grants 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. (Section 6001) 

The House bill is the same as current law. 

The Conference substitute adopts the House provision. 

(24) Water and Waste Facility Loans and Grants to Alleviate Health 

Risks and Alaska Water 

The Senate amendment authorizes water and waste facility 

loans and grants to alleviate health risks and give the Secretary 

the authority to give priority to applications from eligible entities 

that provide services to colonias, the residents of Indian reservations, rural or native villages in Alaska and Native Hawaiian 

Home Lands. The amendment authorizes appropriations for grants 

at $60,000,000 for each fiscal year and for loans at $60,000,000 for 

each fiscal year. In addition to the match requirement from the 

State of Alaska for grants awarded to its rural or native villages, 

grants to native tribal health consortiums and public agencies shall 


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require a match from the State in which the project shall occur. 

(Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations through 2018. (Section 6008) 

(25) Solid Waste Management Grants 

The Senate amendment authorizes solid waste management grants and authorizes appropriations of $10,000,000 for each fiscal 

year 2014 through 2018. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes appropriations of 

$10,000,000 for each fiscal year 2014 through 2018. (Section 6011) 

(26–31) Consolidated Farm and Rural Development Act 

The Senate amendments rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. (Section 6001) 

The House bill is the same as current law. 

The Conference substitute adopts the House provisions. 

(32) Delta Health 

The Senate amendment authorizes appropriations of $3,000,000 for fiscal years 2014 through 2018. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations for each fiscal year 2014 through 2018. (Section 6024) 

(33) Value-Added Agricultural Product Market Development Grants 

The Senate amendment allows the Secretary to award grants 

and gives independent producers direction regarding grantee strategies. The amendment states that priority is given to projects that 

contribute to increasing opportunities for operators of small and 

medium sized farms. Priority is given to projects at least 1⁄4 of the 

recipients of which are beginning farmers or socially disadvantaged 

farmers. The Secretary shall provide substantial weight to these 

priorities. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

(34) Appropriate Technology Transfer for Rural Areas Program 

The Senate amendment authorizes the Appropriate Technology 

Transfer for Rural Areas program, and authorizes appropriations of 

$5,000,000 for each fiscal year 2014 through 2018. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations for each fiscal year 2014 through 2018. (Section 6015) 

(35) B&I Loans 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. 


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The House bill is the same as current law. 

The Conference substitute adopts the House provision. 

(36) General Provisions for Loans and Grants 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. 

The House bill is the same as current law. 

The Conference substitute adopts the House provision. 

(37) Regional Authority 

The Senate amendment authorizes a regional priority, including a reservation of funds from funding available for functional categories, for projects that are part of a multijurisdictional development plan. (Section 6001) 

The House bill has no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes a priority for specific rural 

development programs only if an eligible application is carried out 

solely in a rural area (as described for its functional category) and 

also supports development plans on a multijurisdictional basis. A 

higher priority shall be awarded to applications that support multijurisdictional development plans with particular attributes. A ten 

percent reservation of funds is made available from funding available for functional categories. Any approved application may be 

amended to qualify for the reservation of funds. All funding, including the reservation of funds, is available to certain approved applications. (Section 6025) 

The Managers expect rural entities to utilize Rural Development programs in a manner that supports projects and initiatives 

that develop long-term community and economic growth strategies. 

Traditionally, rural development programs have been used to meet 

an immediate need. The Managers recognize that it is essential 

that versatile programs such as the Community Facilities Loan and 

Grant Program are available to rural residents to address pressing 

needs and concerns, and the Managers want to ensure that the 

programs authorized in this title continue to provide that type of 

assistance. The Managers also understand that regional plans cannot always address every need, and expect USDA will only devote 

funds specifically to regional projects beyond the funds set aside for 

this purpose if such can be done without preventing the funding of 

otherwise eligible projects in areas where regional plans have not 

been developed or the applicant does not feel it is in their best interest to pursue a regional approach. 

To the extent possible, the Managers encourage USDA to work 

with rural communities to consider how they might use Rural Development resources to address multi-jurisdictional needs, by 

leveraging federal, state, local or private funding, or otherwise capitalize upon the unique strengths of the rural area to support successful community and economic development. The Managers recognize the work conducted by the national network of 540 multijurisdictional regional planning and development organizations to 

develop such plans and expect that, where possible, USDA will ensure any priority given to applications under this section to rely on 

these plans. Further, the Managers expect that priority will be 


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given only to proposals that are consistent with an adopted regional economic or community development plan. 

The Managers believe that projects that reflect the characteristics described above can help to maximize the impact of resources 

available at all levels of government and ultimately help rural communities reach their full potential. For these reasons, the conference substitute has provided the Secretary with the discretion to 

prioritize applications for funding that reflect an applicant’s efforts 

to maximize resources and support strategic community and economic development and reserved funding within select programs 

for this purpose. 

(38) Rural Development Insurance Fund 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. 

The House bill is the same as current law. 

The Conference substitute adopts the House provision. 

(39) Rural Economic Area Partnership Zones 

The Senate authorizes the Secretary to carry out rural economic area partnership zones in effect on the date of enactment of 

this Act. It also authorizes the Secretary to designate additional 

rural economic area partnership zones. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes the Secretary to carry out 

rural economic area partnership zones in effect on the date of enactment of this Act. (Section 6016) 

(40) Rural Development Partnership 

The Senate amendment authorizes the State Rural Development Partnership. It does not include the Coordinating Committee 

in the Partnership. It outlines that the purposes of the Partnership 

are to be accomplished in a manner that maximizes collaborative 

public-and-private-sector cooperation and minimizes regulatory redundancy. The Coordinating Panel includes representatives from 

State rural development councils and shall facilitate effective communication among members of the Partnership. It also authorizes 

Federal agencies to enter into cooperative agreements with and 

provide grants and other assistance to State rural development 

councils and authorizes State rural development councils, but does 

not include a duty to work with the Coordinating Committee on 

strategies. It authorizes an annual plan and report to the Secretary 

and authorizes appropriations of $5,000,000 for each fiscal year 

2014 through 2018. Federal agencies are authorized to enter into 

several types of agreements with State rural development councils 

and terminates such authority on Sept. 30, 2018. (Section 6001) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the National Rural Development Partnership through 2018. (Section 6021) 


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(41–76) Consolidated Farm and Rural Development Act 

The Senate amendment rewrote and reorganized portions of 

the Consolidated Farm and Rural Development Act. (Section 6001) 

The House bill is the same as current law. 

The Conference substitute adopts the House provisions. 

(77) Energy Efficiency 

The House bill authorizes the Secretary to make loans to borrowers for the purpose of relending to ultimate consumers for energy efficiency. It also authorizes the Secretary, acting through the 

Rural Utilities Service, to make loans and grants from the Cushion 

Credit subaccount. (Section 6101) 

The Senate amendment authorizes a Rural Energy Savings 

Program to create jobs, promote rural development, and help rural 

families and small businesses achieve cost savings by providing 

loans to qualified consumers to implement durable cost-effective 

energy efficiency measures. The program provides 0% interest rate 

loans to eligible Rural Utilities Service borrowers to fund loans to 

qualified consumers to implement energy efficiency measures. (Section 6203) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes a Rural Energy Savings 

Program to create jobs, promote rural development, and help rural 

families and small businesses achieve cost savings by providing 

loans to qualified consumers to implement durable cost-effective 

energy efficiency measures. The program provides 0% interest rate 

loans to eligible Rural Utilities Service borrowers to fund loans to 

qualified consumers. The amendment strikes the authority for Fast 

Start Demonstration projects and rulemaking requirements as well 

as authorizes appropriations of $75,000,000 for each fiscal year 

2014 through 2018. (Section 6205) 

The Managers have authorized this new authority as an addition to any other authority the Secretary may have to offer loans. 

(78) Fees for Certain Loan Guarantees 

The House bill authorizes the Secretary, at the request of the 

borrower, to charge an upfront fee to cover the cost of an electrification base load generation loan guarantee equal to the cost of 

the loan guarantee. (Section 6102) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6101) 

(79) Rural Utilities Service Contracting Authority 

The House bill amends current law to update its reference to 

the ‘‘Rural Utilities Service’’, reflect the current authorization of cooperative agreements and not allow a contract funded by a borrower to be considered a public contract within the meaning of title 

41 of the U.S. Code. (Section 6103) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 


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(80) Access to Broadband Telecommunications Services in Rural 

Areas 

The House bill amends paragraph (c)(2) of the Rural Electrification Act of 1936 to provide the highest priority to applicants 

that offer to provide broadband service to the greatest proportion 

of households that would otherwise not have a service provider. It 

authorizes a priority to applicants where the application is not predominantly for business service only, but offers to provide 

broadband service to at least 25 percent of customers that are commercial interests. Additionally, it amends paragraph (d)(5) to require the Secretary to publish a notice for each application describing the application including the amount and type of support requested and a list of the census block groups or tracts proposed to 

be so served. It amends subsection (d) to require the Secretary to 

establish a process where an incumbent service provider who provides broadband service to a remote rural area may submit to the 

Secretary information regarding the broadband services that a provider offers in a proposed service territory so that the Secretary 

may assess whether the application is an eligible project. The bill 

also amends subsection (e) to require the Secretary, when considering the technology needs of customers in a proposed service territory, to take into consideration the upgrade or replacement cost for 

the construction or acquisition of facilities and equipment in the 

territory. Lastly, the House bill reauthorizes the authorization of 

appropriations and the termination of authority through fiscal year 

2018. (Section 6106) 

The Senate amendment amends paragraph (c)(2) to provide the 

highest priority to applicants that offer to provide broadband service to the greatest proportion of households that would otherwise 

not have broadband service that meets a minimum acceptable 

level. It authorizes a priority to projects that serve rural communities with a population of less than 20,000, experiencing outmigration, with a high percentage of low-income residents and which are 

isolated. It also authorizes evaluation periods each fiscal year to 

compare applications and prioritize awards to rural communities 

that do not have residential broadband service that meets a minimum acceptable level. Paragraph (d)(8) requires the Secretary to 

post on the RUS website information that identifies an applicant, 

the amount and type of support requested by each applicant and 

a list of the census block groups or proposed service territory. It 

amends paragraph (d)(5) to require the Secretary to publish a notice of each application describing the estimated number and proportion relative to the service territory of households without terrestrial-based broadband service. Paragraph (d)(8) requires the Secretary to allow broadband service providers to submit information 

about the broadband services that the providers offer in the groups 

or tracts in the list of the census block groups or proposed service 

territory so that the Secretary may assess whether the application 

is an eligible project. It authorizes appropriations for $50,000,000 

through fiscal year 2018 and program authority through fiscal year 

2018. 

Additionally, the amendment amends subsection (l) (as redesignated) to authorize from amounts made available for each fiscal 


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year a set aside of at least 1 percent for oversight and implementing accountability measures. 

It also amends Section 601 of the Rural Electrification Act of 

1936 by authorizing a grant program for facilities and equipment 

for broadband service in rural areas, and amends paragraph (b)(3) 

to define ‘‘rural area’’ as any area described in section 3002 of the 

Consolidated Farm and Rural Development Act. It amends subsection (b) to define the term ‘‘ultra-high speed service’’. 

It also amends clause (d)(1)(A)(i) to require an eligible entity 

to demonstrate the ability to furnish, improve in order to meet a 

minimum acceptable level of broadband service, or extend service 

to all or part of an unserved rural area or an area below a minimum acceptable level of broadband service or to demonstrate the 

ability to carry out a project under a pilot program that provides 

a proposed service territory with ultra-high speed service. Clause 

(d)(2)(A)(i) is amended to authorize assistance only if not less than 

25 percent of the households in the proposed service territory are 

unserved or have service levels below a minimum acceptable level. 

Clause (d)(2)(A)(ii) is amended to authorize assistance only if 

broadband service is not provided in any part of the proposed service territory by 2 or more incumbent service providers. Subparagraph (d)(2)(B) is amended to authorize an increase or decrease to 

the 25 percent requirement under certain circumstances. Clause 

(d)(2)(C)(i) is amended to provide an exception to the 3 or more incumbent service provider requirement if the incumbent service provider is upgrading broadband service to a minimum acceptable 

level of service. Clause (d)(2)(C)(ii) is amended to not apply the exception to the 3 or more incumbent service provider requirement if 

the project is being carried out under a pilot program to provide 

a proposed service territory with ultra-high speed service, unless 

an incumbent is providing ultra-high speed service. Subparagraph 

(d)(2)(C) is amended to require a market survey be certified by an 

affected community and demonstrated on a broadband map. Paragraph (d)(4) is amended to authorize pilot programs to address 

areas that are unserved or have service levels below a minimum 

acceptable level of service, or provide a proposed service territory 

with ultra-high speed service. 

It amends subsection (d) to authorize certain reporting requirements by the entity receiving assistance to the Secretary including 

the use by the entity of the assistance and the progress towards 

fulfilling the objective of the assistance. The Secretary is required 

to maintain a fully searchable database accessible on the Internet 

and at no cost to the public that contains information regarding applicants and data regarding entities receiving assistance. The Secretary must also establish written procedures for all broadband 

programs administered by the Secretary. The Secretary may also 

establish additional report and information requirements for recipients to ensure compliance. The Secretary is also authorized, if no 

broadband service provider submits information in regard to 

whether an application submitted meets the eligibility requirements in the program, to consider the number of providers in the 

group or tract to be established. 

Subsection (e) is amended to define the minimum acceptable 

level of broadband service as at least 4-Mbps downstream transVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00478 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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mission capacity and a 1-Mbps upstream transmission capacity. 

The Senate amendment authorizes the Secretary to adjust the minimum acceptable level of service and consider whether the 

broadband service is fixed or mobile. Paragraph (g)(2) is amended 

to authorize the Secretary to establish a limited initial deferral period or comparable terms necessary to achieve the financial feasibility and long-term sustainability of the project. Subsection (j) is 

amended to require the Administrator to report on the number of 

loans applied for and provided, including any loan terms or conditions for which the Secretary provided additional assistance to 

unserved areas and the overall progress towards fulfilling the goal 

of improving the quality of rural life by expanding rural broadband 

access, as demonstrated by metrics. It amends Section 601 by authorizing the Secretary to require address-level broadband buildout 

data. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment requires the Secretary to establish at 

least 2 evaluation periods each year to compare applications to the 

program and prioritize applications for all or part of rural communities that do not have residential service that meets the minimum 

acceptable level of broadband service defined as at least 4-Mbps 

downstream and 1-Mbps upstream transmission capacity, as reviewed and adjusted by the Secretary. Priority is also authorized 

for applicants that offer to provide service, not predominantly for 

businesses, where at least 25 percent of the customers would be 

commercial interests. The highest priority shall be given to applicants that offer to provide broadband service to the greatest proportion of unserved households or households that do not have 

service that meets the minimum acceptable level of service as defined. The Secretary is directed to give equal consideration to all 

qualified applicants, whether or not they are a previous USDA borrower in the program. 

The amendment requires eligible entities to demonstrate the 

ability to furnish, improve in order to meet the minimum acceptable level of broadband service as defined or extend service to an 

unserved rural area or an area below the minimum acceptable level 

of broadband service as defined. An eligible project, in general, requires not less than 15 percent of the households in the proposed 

service territory to be unserved or have service levels below the 

minimum acceptable level of broadband service as defined. The incumbent service provider requirement for project eligibility will not 

apply if an incumbent service provider is upgrading broadband 

service for an existing service territory to meet the minimum acceptable level of broadband service as defined. Information submitted for the market survey requirement must be certified or 

demonstrated with address-level data or the National Broadband 

Map. 

The amendment requires the Secretary to promptly provide a 

fully searchable database on the RUS website that contains certain 

information regarding applications received and entities receiving 

assistance. The Secretary will require any entity receiving assistance to submit a semiannual report for 3 years after completion of 

the project including certain information. The Secretary is also directed, to the maximum extent practicable, to establish written proVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00479 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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cedures for all broadband programs administered by the RUS to recover funds from loan defaults, deobligate any awards, re-award 

funds and minimize overlap among programs. The Secretary is directed to allow broadband service providers to submit information 

concerning the service that they offer in relation to applications received and information posted on the RUS website in order to assess whether the application is eligible and, if no information is received, to consider the number of providers by using the most current National Broadband Map or other data. The amendment authorizes the Secretary to consider whether the recipient is or would 

be serving an unserved area or one with service levels below the 

minimum acceptable level of broadband service as defined when determining the terms and conditions of a loan or loan guarantee, 

and if such determination is made, the Secretary may establish a 

limited initial deferral period. The Secretary is also required to 

submit in his annual report information that includes any loan 

terms or conditions for which the Secretary provided additional assistance to unserved areas, as well as overall progress towards expanding rural broadband access as demonstrated by metrics. The 

amendment authorizes a study of the ways that data collected 

under USDA broadband programs could be shared with the FCC 

to support the national Broadband Map. The amendment reauthorizes the program and authorization of appropriations through 2018. 

It also authorizes the Rural Gigabit Network Pilot Program to 

provide grants, loans or loan guarantees to furnish or extend ultrahigh speed service to rural areas, with an authorization of appropriations of $10,000,000 for each of fiscal years 2014 through 2018. 

(Sections 6104 and 6105) 

Through the Broadband Program, USDA provides funds for the 

construction, improvement, and acquisition of facilities and equipment needed to provide broadband service in rural communities. 

The conference substitute directs the program to target funds to 

rural communities currently unserved or without a minimum acceptable level of broadband service. 

The conference substitute provides that equal consideration 

should be given to all qualified applicants, including those that 

have not previously received loans or loan guarantees. The Managers expect this provision not to be interpreted in a manner that 

would compel the agency to make loans, regardless of the technology utilized, to provide broadband service in geographic areas in 

which it has an outstanding telecom or broadband loan. Further, 

the Managers also expect the agency to have in place processes 

that ensure that all incumbent service providers, particularly those 

with existing agency loans, are made aware of all applications in 

their service areas along with a mechanism for these companies to 

provide the agency with relevant information on the impact of the 

proposal. Finally, the managers intend that the provision in subsection (c)(2)(C) be interpreted by the Secretary as not reducing the 

priority of applications for loans or loan guarantees from applicants 

with an existing loan or loan guarantee under this program to the 

extent that the application for additional financing is designed to 

ensure the financial viability of the project and reduce the risk of 

loss for the Secretary and taxpayers with respect to the existing 

loan or loan guarantee. 


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The Managers expect the Secretary, when reviewing the minimum broadband speed, to provide updates in the Federal Register 

through a notice only, and not through a formal rulemaking process. 

The Managers are aware of concerns about network security 

and data surety, especially as broadband networks expand in part 

due to efforts supported by this program to promote wider 

broadband coverage throughout the country. The House Permanent 

Select Committee on Intelligence has released an investigative report on network security issues in recent months, and the Managers encourage the Department to take reports such as this one 

into consideration as it administers this program. 

The Conference substitute adopts provisions which encourage 

USDA to consider the number of business subscribers in a potential 

project. With economic development at the core of the broadband 

loan program, the Managers expect USDA to consider the benefits 

to the community of projects which will provide sufficient levels of 

service for business connections, both in main-street establishments and those businesses which are operated out of the owner’s 

residence. 

The conference substitute also makes the application process 

more transparent and strengthens the reporting requirements for 

successful applicants to ensure the public can access information as 

to how program funding is utilized. 

(81) Definition of Rural Area 

The Senate amendment amends current law to define the term 

‘‘rural area’’ as any area described in clause 3002(28)(A)(i) of the 

Consolidated Farm and Rural Development Act, as amended by 

Section 6001. That clause defines ‘‘rural’’ and ‘‘rural area’’ to mean 

any area other than a city or town that has a population of greater 

than 50,000 inhabitants. (Section 6101) 

The House bill has no comparable provision. 

The Conference substitute adopts the House provision. 

(82) Distance Learning and Telemedicine 

The House bill authorizes appropriations of $65,000,000 for fiscal years 2014 through 2018. (Section 6201) 

The Senate amendment authorizes appropriations of 

$100,000,000 through fiscal year 2018. (Section 6201) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes appropriations of 

$75,000,000 for each fiscal year 2014 through 2018. (Section 6201) 

(83) Value-Added Agricultural Market Development Program 

Grants 

The House bill authorizes $50,000,000 of the funds of the Commodity Credit Corporation and reauthorizes appropriations through 

fiscal year 2018. (Section 6202) 

The Senate amendment reauthorizes appropriations through 

fiscal year 2017. It also amends section 231(b)(6) to authorize priority for projects that contribute to increasing opportunities for veteran farmers or ranchers. (Section 6207) 


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The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes a priority to operators of 

small and medium sized farms and ranches, beginning farmers and 

ranchers, socially disadvantaged farmers or ranchers and veteran 

farmers or ranchers when awarding grants to eligible independent 

producers. The amendment also authorizes a priority to projects 

that create or increase marketing opportunities for those same 

groups when awarding grants to eligible agricultural producer 

groups, cooperatives and majority-controlled producer-based ventures. The amendment also authorizes $63,000,000 in mandatory 

funding on the date of enactment of this Act and reauthorizes the 

authorization of appropriations through 2018. (Section 6203) The conference substitute includes $63 million in mandatory 

funding for the Value-Added Agricultural Product Market Development Grant Program. The Managers are aware of the increasing 

interest of local and regional supply chains and food hubs in securing assistance through the program. Mid-tier value chains that include independent producers or farm cooperatives and businesses 

controlled by producers as full partners in marketing and pricing 

strategy decisions already have funds reserved for them under the 

program. The Managers encourage the Department to define those 

eligible for the mid-tier value chain reserved fund to include food 

distribution networks and centers that coordinate agricultural production and the aggregation, storage, processing, distribution, or 

marketing of locally or regionally produced agricultural products, 

provided that such entities and networks are otherwise eligible. 

The Managers recognize the importance of ensuring a diverse 

portfolio of projects which help to build markets for farmers and 

farmer cooperatives. While the conference substitute maintains setasides established in the 2008 Farm Bill designed to encourage the 

participation of selected groups, the Managers are cognizant of concerns expressed by some stakeholders that program funds have 

been too narrowly targeted. The Managers urge USDA to ensure 

the program funds a range of projects. In particular, the Managers 

recognize that farmer cooperatives efficiently spread the benefits of 

the VAPG among a large number of producers in the aggregate. 

Cooperatives by their nature bring many producers together who 

individually do not have the size, expertise and resources to take 

advantage of the value chain beyond the farm gate, and they give 

them the opportunity to profit from those down-stream activities. 

Therefore, funds invested and the benefits of projects generated by 

cooperatives through the VAPG are distributed to a wide number 

of producers. Likewise, by investing in initiatives of cooperatives, 

such projects lower the overall costs to the government in program 

administration per individual farmer that benefits. Therefore, the 

Managers encourage USDA to view cooperatives as a priority in administering the VAPG. 

(84) Agriculture Innovation Center Demonstration Program 

The House bill allots $1,000,000 authorization of appropriations for fiscal years 2014 through 2018. (Section 6203) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

6204) 


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(85) Program Metrics 

The House bill requires the Secretary to collect data regarding 

economic activities created through grants and loans, including any 

technical assistance provided as a component of the grant or loan, 

and measure the short and long term viability of award recipients 

and any entities to whom those recipients provide assistance using 

award funds under certain covered programs. It also requires the 

Secretary to submit a periodic report to Congress. (Section 6204) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment requires the Secretary to collect data 

regarding economic activities created through grants and loans, including technical assistance, and measure the short and long term 

viability of award recipients and any entities to whom those recipients provide assistance using award funds under certain covered 

programs. The amendment requires the Secretary to submit a periodic report to Congress with information including the percentage 

increase of employees and the number of business starts and clients served. (Section 6209) 

In recognition of GAO recommendations to measure the effectiveness of rural development programs, the Managers expect the 

Secretary to collect data regarding economic activity created 

through the loans and grants provided to rural communities. The 

Managers expect these efforts will create a harmonized baseline of 

information for effective use by USDA and Congress. It is the intent of the Managers that this collected information be integrated 

with program changes and rulemaking. Through implementation of 

this section, the Managers expect USDA to create a universal form 

or appropriate type of notice to ensure applicants are aware of the 

reporting requirements and will be prepared to provide the information in a timely manner. 

(86) Study of Rural Transportation Issues 

The House bill authorizes an updated version of the study described in Section 6206 to be reported to Congress. It also amends 

the study to include the sufficiency of infrastructure along waterways of the U.S. and the impact on the movement of agricultural 

goods, as well as the benefits derived through upgrades and repairs 

to locks and dams. (Section 6205) 

The Senate amendment reauthorizes the study in Section 6206 

to be reported to Congress. It also requires a triennial update of 

the study. (Section 6205) 

The Conference substitute adopts the House provision. (Section 

6206) 

The Managers agree that collecting information to determine 

the status of critical river infrastructure is an important component of updating the study, but expect USDA to seek available information from the Army Corps of Engineers, or any other appropriate Federal entity, to the greatest extent practicable in order to 

expedite the collection of data and to minimize the time and cost 

of implementing this section. 


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(87) Certain Federal Actions not to be Considered Major 

The House bill states that an action by the Secretary that does 

not involve the provision of Federal dollars or a Federal loan guarantee shall not be considered a major Federal action in the case of 

a loan, loan guarantee, or grant program in the rural development 

mission area of USDA. (Section 6206) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

The Managers intend for the Secretary, acting through the 

Rural Utilities Service, to act in accordance with 7 C.F.R. 1794.3 

as finalized in 1998, consistent with applicable law. 

(88) Telemedicine and Distance Learning Services in Rural Areas 

The House bill amends subsection 2333 (d) to authorize a priority based on whether the applicant is located in a designated 

health professional shortage area. (Section 6207) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(89) Definition of Rural Area for Purposes of the Housing Act of 

1949 

The Senate amendment amends section 520 of the Housing Act 

of 1949 so that any area with a population of less than 35,000 that 

has been deemed to be a ‘‘rural area’’ for purposes of this title any 

time prior to or after October 1, 1990, and any time during the period between January 1, 2000, and ending on December 31, 2010, 

shall continue to be so deemed until the 2020 Census data is received by USDA. (Section 6202) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 6208) 

(90) Funding of Pending Rural Development Loan and Grant Applications 

The Senate amendment funds pending rural development loan 

and grant applications according to the terms and conditions in 

Section 6029 from Commodity Credit Corporation funds in the 

amount of $150,000,000, to remain available until expended. (Section 6204) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 6210) 

(91) Agriculture Transportation Policy 

The Senate amendment amends Section 203 of the Agricultural Marketing Act of 1946 to direct the Secretary to participate 

in all proceedings of the Surface Transportation Board that may establish freight rail transportation policy affecting agriculture and 

rural America. (Section 6206) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes the Secretary to make 

complaint to or petition the Surface Transportation Board. (Section 

6202) 


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TITLE VII—RESEARCH

SUBTITLE A—NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND

TEACHING POLICY ACT OF 1977 

(1) Option to be included as Non-Land-Grant College of Agriculture 

The House bill authorizes a Hispanic-serving Agricultural College and University and any institution eligible to receive funds 

under the McIntire-Stennis Cooperative Forestry Act of 1962 to opt 

out of their respective designation in order to qualify as a NonLand-Grant College of Agriculture. (Section 7101) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment allows a Hispanic-serving agricultural college and university and any institution eligible to receive 

funds under the McIntire-Stennis Cooperative Forestry Act to opt 

out of their respective designation in order to qualify as a NonLand-Grant College of Agriculture. The amendment also requires a 

NLGCA institution to offer a baccalaureate or higher degrees in the 

study of food and agricultural sciences and the Secretary to establish a process for NLGCA designation. (Section 7101) 

The Managers do not take a position on how an institution 

should be designated, but have provided the Hispanic Serving Agricultural Colleges and Universities, as well as institutions eligible 

to receive funding under the McIntire-Stennis Cooperative Forestry 

Research Program, with the option to choose whether to be designated as such or to opt out of their designation for purposes of 

access to program funding eligibility. The Managers believe institutions with degree programs in the agricultural sciences that may 

automatically qualify as a Hispanic Serving Institution or as a 

McIntire-Stennis Cooperative Forestry Research institution should 

not be precluded from being able to opt out of those programs in 

favor of qualifying as a Non-Land-Grant College of Agriculture. 

(2) Specialty Crop Committee 

The House bill authorizes the current annual report to include 

recommendations regarding the improvement of quality and taste 

of processed specialty crops and programs that would improve remote sensing. (Section 7103) 

The Senate amendment authorizes the current annual report 

to include an analysis of alignment of Specialty Crop Committee 

recommendations with specialty crop research initiative grants, requires membership on the Specialty Crop Committee to reflect diversity in the specialty crops represented and that the Specialty 

Crop Committee to consult on an ongoing basis with diverse sectors 

of the specialty crop industry. (Section 7102) 

The Conference substitute adopts the Senate provision, including Section 12212, with an amendment. The amendment requires 

that the Specialty Crop Committee membership reflect diversity in 

the specialty crops represented, that the annual report include recommendations regarding the improvement of quality and taste of 

processed specialty crops, programs that would improve remote 

sensing, and an analysis of alignment of committee recommendations with specialty crop research grants and that the specialty 


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crops committee to consult with diverse sectors of the specialty crop 

industry. The amendment also establishes a Citrus Disease Subcommittee and its duties. (Section 7103) 

The Managers intend the NAREEEAB and Specialty Crop 

Committee to consult with industry groups on agricultural research, extension, education, and economics, and to make recommendations to the Secretary and Congress based on that consultation. 

In creating the NAREEEAB and Specialty Crop Committee, 

Congress intended for these entities to recommend policies, to identify short and long-term national priorities for REE programs, and 

to evaluate program results and effectiveness among other assigned duties. Congress has since added multiple duties and consultative functions to the Board’s mandate. In doing so, the Managers are aware that the work load and learning curve of the volunteer members is high. It has become apparent to the Managers 

that it can take several years for new board members to become 

comfortable not only with the diverse subject matter under review, 

but likewise the law and administrative functions they are required 

to evaluate. While the statute defines the length of a board member’s individual term, Congress has never intended for board members to be subject to a limit on the number of terms they can serve. 

Unfortunately, the Managers have become aware that USDA has 

instituted an arbitrary term limit policy on advisory board members that inhibits the individual members and the advisory board’s 

effectiveness. The Managers strongly encourage the Secretary to reverse this policy. 

The Managers recognize the interest in growing agricultural 

commodities in less traditional production areas. As such, the Managers encourage the Secretary in consultation with the 

NAREEEAB, in both the intramural research carried out by the 

Agricultural Research Service and in the competitive grants programs carried out through AFRI and other authorities, to carry out 

and fund research into the unique situations facing producers in 

urban areas. These unique situations may include reclaiming land 

previously used for industrial purposes or neglected residential 

areas, and addressing needs such as the remediation of soils to 

make them capable of producing agricultural commodities for 

human consumption. 

(3) Veterinary Services Grant program 

The House authorizes a Veterinary Services Grant program to 

award competitive grants to develop, implement and sustain veterinary services. (Section 7104) 

The Senate amendment authorizes a Veterinary Service Grant 

program to award competitive grants to develop, implement and 

sustain veterinary services. The amendment authorizes the Secretary to develop additional grant preferences and requires a 25 

percent match requirement unless waived by the Secretary. (Section 7103) 

The Conference substitute adopts the House provision. (Section 

7104) 

Our veterinary workforce is responsible for ensuring that the 

food we eat is safe, but the nation faces a critical shortage in the 


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public, private, industrial and academic sectors. Our nation’s largeanimal veterinarians are truly on the front lines of food safety, 

public health, animal health and national security. The demand for 

large-animal veterinarians is increasing, and the lack of these specialists in many areas of the country will continue to put our agricultural economy and the safety of our food supply at risk. 

Since the fall of 2000, the House and Senate Agriculture Committees have worked on ways of resolving the serious veterinary 

shortage problem confronting many rural communities. With the 

passage of the National Veterinary Medical Service Act in December of 2003, a program was authorized to incentivize large animal 

veterinarians to practice in communities that USDA designated as 

veterinarian shortage areas. With this program in place, large animal veterinarians are able to apply on a competitive basis for educational loan repayment assistance in exchange for their commitment to practice in shortage areas. 

To the extent that the loan program is successful, it is important to consider that this was just the first step. While this assistance will be very helpful in attracting veterinarians to these communities, gaps remain in veterinarian recruitment, attracting and 

training technical support staff, and simply meeting the long-term 

costs of operating veterinarian practices in these communities. 

The Veterinarian Services Investment Act is meant to address 

these secondary needs and is designed to complement the loan repayment program to help large animal veterinarians become established in these rural communities. 

The Conference substitute recognizes and addresses a real 

problem in rural America by authorizing grants to address workforce shortages based on the needs of underserved areas. For example, grants could be used to recruit veterinarians and veterinary 

technicians in shortage areas and communities, expanding and establishing practices in high-need areas. The program could also establish mobile portable clinics and televet services and establish 

education programs, including continuing education, distance education, and increase recruitment in veterinary science. 

(4) Policy Research Centers 

The House bill requires the Secretary, acting through the Office of the Chief Economist, to make competitive grants to or enter 

into cooperative agreements with eligible recipients that possess a 

history of providing unbiased, nonpartisan economic analysis to 

Congress. The provision authorizes other public research institutions and organizations as eligible recipients. The Secretary is directed to give a preference to policy research centers that have extensive databases, models and demonstrated experience in providing Congress with agricultural market projections, rural development and agricultural policy analysis and baseline projections at 

the farm, multiregional, national, and international levels. The bill 

also authorizes appropriations of $5,000,000 for each fiscal years 

2014 through 2018. (Section 7106) 

The Senate amendment requires the Secretary, acting through 

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izes other public research institutions and organizations as eligible 

recipients. The Secretary is directed to give a preference to policy 

research centers that have extensive databases, models and demonstrated experience in providing Congress with agricultural market projections, rural development and agricultural policy analysis 

and baseline projections at the farm, multiregional, national, and 

international levels, including information, analysis and research 

relating to drought mitigation. The amendment also authorizes appropriations of $10,000,000 for fiscal year 2013 and each fiscal year 

thereafter and authorizes funding for activities including developing theoretical applied and research methods. (Section 7015) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment requires the Secretary, acting 

through the Office of the Chief Economist, to make competitive 

grants or cooperative agreements with eligible recipients and to 

award a preference to policy research centers with extensive databases, models and demonstrated experience in providing Congress 

with various types of information or drought mitigation information, analysis and research. The amendment also authorizes funding for applied research methods and authorizes appropriations of 

$10,000,000 for each of fiscal years 2014 through 2018. (Section 

7106) 

The Managers recognize the invaluable role that the Drought 

Monitor, produced at the National Drought Mitigation Center, in 

coordination with USDA and the National Oceanic and Atmospheric Administration, plays on several fronts. The conference substitute includes the provision of information, analysis and research 

relating to drought mitigation as one of the preferences for funding 

under this section. The Managers expect that the Drought Monitor 

will continue to be available for use in determining eligibility for 

Federal disaster response programs, as well as providing invaluable information for other segments of government, agricultural 

producers and the sectors that support agricultural production. 

(5) Human Nutrition Intervention and Health Promotion Research 

program 

The House bill repeals section 1424. (Section 7107) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7108) 

The Conference substitute builds upon the efforts from 2008, 

either repealing or allowing unfunded and unused program authorities to expire with fiscal year 2013, and combining, consolidating and streamlining authorities to make a more concentrated 

and effective use of limited funding. The remaining authorities are 

extended through fiscal year 2018 with few changes. 

(6) Pilot research program to combine medical and agricultural research 

The House bill repeals section 1424A. (Section 7108) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7109) 


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(7) Continuing animal health and disease research programs 

The House bill authorizes appropriations of $15,000,000 for 

each fiscal year 2014 through 2018. (Section 7110) 

The Senate amendment reauthorizes appropriations through 

fiscal year 2018. (Section 7108) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes and allocates the authorization of appropriations through 2018 between the capacity 

program in current law and the newly authorized competitive grant 

program. (Section 7111) 

The Managers have heard concerns from stakeholders that 

there has been a lack of emphasis on animal science by USDA. Additional focus needs to be placed on critical issues facing animal agriculture. Advancements in animal science will play an important 

role in meeting a growing global demand for food while making efficient use of natural resources, strengthening the competitiveness 

of American agriculture and addressing critical animal health 

issues. The expansion of Section 1433 includes a competitive mechanism that will enable the Department to better focus resources on 

key animal science priorities. 

The Managers appreciate the efforts brought forward by the 

Farm Animal Integrated Research 2012 (FAIR 2012) priority setting process which identified food security, one health and stewardship as key focal areas for future investments in animal science. 

The Managers encourage the Department to use these focal areas 

and the underlying priorities identified in FAIR 2012 as a starting 

point and to regularly consult with industry when developing requests for proposal under the new competitive component of Section 1433. 

(8) Research on national or regional programs 

The House bill repeals section 1434. (Section 7111) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

The Conference substitute reauthorizes many critical agricultural research programs. In so doing, the Managers recognize the 

need to streamline the authorities in this title and permitted some 

authorities that had not received funding in recent years to expire. 

(9) Grants to upgrade agriculture and food science facilities and 

equipment at insular area land-grant institutions 

The House bill authorizes grants to support tropical and subtropical agricultural research, including pest and disease research 

and reauthorizes appropriations through fiscal year 2018. (Section 

7113) 

The Senate amendment reauthorizes appropriations through 

fiscal year 2018. (Section 7110) 

The Conference substitute adopts the House provision. (Section 

7113) 

(10) National research and training virtual centers 

The House bill repeals section 1448. (Section 7114) 

The Senate amendment contains no comparable provision. 


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The Conference substitute adopts the House provision. (Section 

7114) 

(11) Competitive grants program for Hispanic agricultural workers 

and youth 

The House bill authorizes the award of competitive grants to 

provide for training in the food and agricultural sciences of Hispanic agricultural workers and Hispanic youth working in the food 

and agricultural sciences. (Section 7116) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7116) 

(12) Research equipment grants 

The House bill declares repeals section 1462A. (Section 7118) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7118) 

(13) Auditing, reporting, bookkeeping, and administrative requirements 

The House bill states that notwithstanding any other provision 

of law, the Secretary may retain not more than 4 percent of 

amounts made available for agricultural research, extension, and 

teaching assistance programs for the administration of those programs authorized under this Act or any other Act, except for peer 

panel expenses or any other provision that contains a limitation of 

less than 4 percent. The Secretary is authorized, to the maximum 

extent practicable and for the purposes of supporting ongoing research and information dissemination activities, to enter into 

grants, contracts, cooperative agreements, or other legal instruments with former Department of Agriculture agricultural research 

facilities. The Secretary is also authorized, for the purposes of receiving support for agricultural research, to enter into grants, contracts, cooperative agreements or other legal instruments with agricultural research organizations. (Section 7121) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes the Secretary to enter into 

agreements with former USDA agricultural research facilities. 

(Section 7121) 

Agricultural research, extension, and education programs serve 

the food and agriculture sector, consumers of American agricultural 

products, and rural communities throughout the United States. Research programs and funding are primarily delivered by two agencies at USDA: the Agriculture Research Service (ARS), which focuses on ‘intramural’ research and basic research; and the National 

Institute of Food and Agriculture (NIFA) which was created by the 

2008 Farm Bill to restructure, combine and improve ‘extramural’ 

research functions at USDA to make better use of limited funds. 

The Managers are concerned about the increasing use of assessments, fees, and higher indirect costs rates imposed on its university partners by ARS. These university partners play a major 

role in achieving ARS research priorities and objectives. In a time 


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of scarce budgetary resources, ARS must ensure limited research 

dollars are maximized and administrative costs are reduced to the 

fullest extent possible. In recent years, ARS has imposed a variety 

of administrative assessments on its university partners, effectively 

reducing funds intended for important research projects. The Managers expect ARS to operate within historical administrative cost 

parameters, namely by imposing a total indirect cost rate not exceeding four percent. All administrative assessments, fees, dues, or 

charges, of any type, must be included within this overall administrative cost cap. ARS must administer its programs more efficiently 

to ensure valuable research funds are maximized so it may continue to maintain a robust agricultural research enterprise. The 

Managers encourage ARS to continue university research partnerships to ensure our nation’s premier educational and clinical institutions play a major role in achieving ARS and congressional research objectives. 

The Managers encourage the Secretary, acting through ARS, to 

continue and expand the Agricultural Technology Innovation Partnership (ATIP). The Managers recognize the success of the ATIP 

initiative in facilitating technology transfer from USDA to the private sector, and particularly encourage the Secretary to support the 

further development of public-private partnerships to provide venture development training, promote the sustainability of soil health 

for multiple agricultural uses, and expand the National Nutrient 

Database to facilitate a healthier food supply. 

The Managers encourage the Secretary to review and assess 

technological solutions for the disposal of acid whey associated with 

the production of certain dairy products. The Managers recognize 

that USDA and the ARS can maximize resources through publicprivate partnerships to develop technologies to effectively process 

acid whey in an effort to address concerns of the dairy and food industries. 

(14) Special authorization for biosecurity planning and response 

The House bill authorizes authorization of appropriations of 

such sums as necessary through fiscal year 2013 and $10,000,000 

for fiscal years 2014 through 2018. (Section 7126) 

The Senate amendment amends the authorization of appropriations of such sums as necessary through fiscal year 2013 and 

$20,000,000 for each fiscal year 2014 through 2018. (Section 7119) 

The Conference substitute adopts the Senate provision. (Section 7126) 

(15) Matching funds requirement 

The House bill authorizes the requirement of matching funds 

from the recipient of competitive grants under certain covered laws. 

The recipient shall provide, from sources other than funds provided 

through the grant, funds or in-kind contributions or a combination 

of both to match at least 100 percent of the amount of the grant. 

The match requirement shall not apply to grants awarded to a research agency of the USDA, an entity eligible to receive funds 

under a capacity and infrastructure program as defined in the Department of Agriculture Reorganization Act of 1994 or to the partner of such eligible entity. (Section 7128) 


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The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment requires at least a 100 percent match 

from the recipient of competitive grants under certain covered laws 

but exempts grants awarded to a research agency of the USDA and 

entities, including their partners, that are eligible to receive capacity funds. The amendment authorizes the Secretary to waive the 

match requirement if the grant involves research or extension activities that the NAREEE Advisory Board has determined is a national priority specific to a statutory purpose of the program under 

which the grant is awarded. The match policy will apply to new 

grants awarded after October 1, 2014. (Section 7128) 

The use of matching funds has proven to be an effective tool 

in leveraging limited Federal resources with commitments from 

those benefitting from agricultural research and extension. Unfortunately, concerns about the consistency of USDA’s application of 

these policies have been brought to the attention of the Managers. 

Efforts by the Congress to develop a comprehensive policy on 

research and extension matching funds originated during the development of the 2008 farm bill. At the time, it was noted that as 

research programs have been authorized or modified, the incorporation of matching requirements was done in a subjective manner. 

An effort was initiated during the 2008 farm bill conference to harmonize the matching requirements, but due to the complexity of 

the task and time constraints, the effort was dropped with the understanding that the Congress and USDA would undertake a 

stakeholder process designed to provide recommendations in advance of the 2012 farm bill. Unfortunately that process never materialized after passage of the 2008 bill. 

The House Agriculture Committee maintained an interest in 

engaging stakeholders in a discussion about how to harmonize 

these policies to improve consistency and transparency in their application. Several requests were made for suggestions on how best 

to approach this issue and the consensus seemed to be that the 

Committee should propose a discussion draft. The language included in the 2012 House Committee legislation was the result of 

technical assistance received by the USDA and was meant to begin 

this discussion. 

As part of the discussion that commenced following release of 

the 2012 House Agriculture Committee farm bill draft, several comments were received and a consensus was formed regarding an effort to utilize matching fund policies to leverage Federal investment, while at the same time reducing the administrative and accounting burden on USDA and grant recipients. 

The Conference substitute recognizes the value of matching 

funds, but likewise takes into account the long-standing Federal investment in research, extension and teaching capacity and infrastructure programs (as defined in Sec. 251(f)(1)(C) of the Department of Agriculture Reorganization Act of 1994). Whereas the 2012 

House draft bill allowed for capacity and infrastructure program 

funds to be utilized in meeting the matching requirement for competitive research and extension grants, the resulting accounting 

burden was deemed to be counterproductive. In the conference substitute, eligibility to receive capacity and infrastructure program 


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funds is deemed to be sufficient to authorize a blanket exemption 

from competitive grant matching requirements. Likewise, any individual grant awarded to multiple recipients would be exempt from 

matching requirements if at least one of the recipients is eligible 

to receive capacity and infrastructure program funds from USDA. 

The Conference substitute includes a provision requiring the 

Secretary to establish an ongoing process through which institutions may apply for designation as a Non-Land Grant College of 

Agriculture. The Managers expect the Secretary to take all reasonable steps for the purposes of ensuring additional institutions that 

meet the criteria can be designated as a Non-Land Grant College 

of Agriculture. 

Additionally, the conference substitute provides the Secretary 

the authority to issue a waiver of the matching funds requirement 

for competitively awarded grants that support research or extension activities that the National Agricultural Research, Extension, 

Education, and Economics Advisory Board has deemed to be a national priority. The Managers expect the national priorities identified by the Board to be consistent with the priorities established in 

the authorizing statute for the various agricultural research, education and extension programs. 

(16) Sense of Congress regarding expansion of the Land Grant program 

The House bill provides a Sense of Congress that land-grant 

programs should be expanded to include enhanced funding and additional institutions should be considered. (Section 7129) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment designates Central State University 

as a land grant institution, but prohibits the University from receiving formula funds for two years. (Section 7129) 

(17) Education grants program for Alaska and Hawaiian Native 

serving institutions 

The Senate amendment eliminates grants without regard to 

any requirement for competition and reauthorizes appropriations 

through 2018. (Section 7106) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 7107) 

SUBTITLE B—FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT

OF 1990 

(18) Sustainable agriculture technology development and transfer 

The House bill authorizes authorization of appropriations of 

$5,000,000 for fiscal years 2014 through 2018. (Section 7203) 

The Senate amendment amends authorization of appropriations of such sums as necessary for fiscal years 2014 through 2018. 

(Section 7203) 

The Conference substitute adopts the House provision. (Section 

7203) 


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(19) National Agricultural Weather Information System 

The House bill repeals Title XVI. (Section 7206) 

The Senate amendment authorizes appropriations of $1,000,000 for fiscal years 2014 through 2018. (Section 7206) 

The Conference substitute adopts the Senate provision. (Section 7206) 

The Managers are aware that advanced weather forecasts, 

using systems such as Tropospheric Airborne Meteorological Data 

Reporting, have been utilized by various Federal agencies for nearly a decade. The Managers support advanced forecasting in that it 

enhances U.S. meteorological forecasting systems, which are particularly useful in agricultural weather forecasts. The Managers 

therefore encourage continued use of these systems. 

(20) Rural Electronic Commerce Extension Program 

The House bill repeals section 1670. (Section 7207) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7207) 

(21) Agricultural Genome Initiative 

The House bill repeals Section 1671. (Section 7208) 

The Senate amendment authorizes the Secretary to encourage 

awards to consortia of eligible entities. (Section 7207) 

The Conference substitute adopts the Senate provision. (Section 7208) 

(22) High-priority research and extension initiatives 

The House bill repeals high-priority research and extension 

areas in subsections (e), (f) and (i). Pollinator protection is reauthorized through fiscal year 2018 and an annual report is amended 

to address honey bee health disorders and best management practices. A coffee plant health initiative is authorized as well as the 

authorization of appropriations through 2018. Section 7405(b)(2)(C) 

addresses research needs regarding cervidae and Section 6405 authorizes a Pulse Health Initiative. (Section 7209) 

The Senate amendment repeals certain high-priority research 

and extension areas. Pollinator protection is reauthorized through 

fiscal year 2018. A cervidae initiative, a Corn, Soybean Meal, Cereal Grains, and Grain Byproducts Research and Extension priority, Forestry Products Advanced Utilization Research, Training 

Coordination for Food and Agriculture Protection, and Farm Animal Agriculture Integrated Research are authorized as well as the 

authorization of appropriations through 2018. (Section 7208) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment reauthorizes the authorization of appropriations through 2018, strikes certain high-priority research 

and extension areas, authorizes a coffee plant health initiative, a 

corn and soy meal high-priority research and extension area, a 

pulse crop health initiative, and training coordination for food and 

agriculture protection. Pollinator protection is reauthorized and 

amended to include health and population status surveillance. The 

amendment also authorizes Forestry products advanced utilization 

research in Section 7310. (Section 7209 and 7310) 


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The Managers recognize that it is in the economic interest of 

agricultural producers and American consumers to ensure a 

healthy, sustainable population of native and managed pollinators, 

including managed honey bees. Pollinators are essential to the production of an estimated one-third of the human diet and to the reproduction of at least 80 percent of flowering plants. Insect-pollinated agricultural commodities result in significant income for agricultural producers and account for about $20 billion in U.S. agricultural output yearly. 

The Managers remain concerned about the decline in the 

health and viability of managed honey bees due in part to a loss 

of appropriate habitat. As a result, the conference substitute continues to include a priority for creating pollinator habitat utilizing 

the Title II conservation programs. The Managers remain committed to pollinator protection activities, including the granting of 

priority treatment to conservation program applicants who commit 

to providing pollinator habitat. The Managers expect the Secretary 

to continue to utilize conservation programs to create, restore and 

enhance native and managed pollinator habitat quantity and quality, and specifically encourage the Secretary to ensure that conservation programs are resulting in sufficient high-quality pollinator habitat for managed honey bees—habitat that includes common alfalfa and sweet clover varieties utilized effectively in farm 

bill conservation programs. 

The Conference substitute also continues the authorization for 

research on pollinator protection, and adds a consideration for 

honey bee health disorders and best management practices related 

to colony collapse disorder to the annual report that the Secretary 

is required to submit to Congress. The Managers also recognize the 

need to assist honey bee producers who suffer from disasters in the 

commodity title with the funding provided for the emergency assistance program that includes honey bees. Additionally, the Managers are aware that specialty crop producers groups are working 

collaboratively with institutions of higher learning on research and 

education activities. The Managers applaud these actions and encourage the Secretary to support their efforts. 

The Cooperative Extension system is a nationwide, non-formal 

educational network. Each state, territory, and the District of Columbia has an office at its land-grant universities and a network 

of local or regional offices which are staffed by experts who provide 

practical, research-based education to agricultural producers, small 

business owners, youth, consumers, and others in rural and urban 

communities. The Managers encourage the Secretary to ensure 

that Cooperative Extension is effectively utilized to deliver the educational component of USDA programs. The Secretary is also encouraged to engage in discussions with other federal departments 

and agencies to consider ways to use the Cooperative Extension to 

deliver education for other federal programs as practicable. 

In addition, the Managers recognize the unique knowledge and 

information that the Cooperative Extension system experts provide 

to various groups regarding farm and food systems. As mentioned, 

this education and information is disseminated through a network 

of local or regional offices, and when the Secretary utilizes the Cooperative Extension to deliver the educational component of the 


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various programs at the Department, to the extent practicable, the 

Rural Development mission area programs should be included. 

During the creation of the Reservation Extension Agent Program, the Congress required the Secretary to consult with Native 

American farmers and ranchers in establishing Extension programs on Indian reservations and tribal jurisdictions. The Managers understand that changes in the operation of grant programs 

have impacted this consultation, and expect that the Secretary 

would find ways to continue the dialogue on the operation of these 

Extension programs with the populations that they are serving. 

The Conference substitute moves the Forestry Products Advanced Utilization Research Initiative provision from High Priority 

Research and includes it as a separate provision in the Agricultural 

Research, Extension, and Education Reform Act of 1998. The Managers intend for this provision to address research needs of the forestry sector and their respective regions. The Conference substitute 

directs the Secretary to ensure that this program is administered 

in coordination with the U.S. Forest Service Research and Development Program and the Forest Products Laboratory. The Managers 

encourage the U.S. Forest Service Research and Development Program to contribute funding to carry out this initiative. The Managers also recognize the benefits the Land Grant System can offer 

this initiative in terms of developing and disseminating sciencebased tools through research and extension activities. 

(23) Nutrient management research and extension initiative 

The House bill repeals section 1672A. (Section 7210) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7210) 

(24) Organic agriculture research and extension initiative 

The House bill eliminates the funds transfer, encourages farm business management, authorizes $20,000,000 in mandatory funding for each fiscal year 2014 through 2018 and reauthorizes appropriations for 2014 through 2018. (Section 7211) 

The Senate amendment eliminates the funds transfer and authorizes $16,000,000 in mandatory funding for each fiscal year 

2014 through 2018. (Section 7209) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes competitive grant purposes, including farm business management, reauthorizes the authorization of appropriations and authorizes $20,000,000 of Commodity Credit Corporation funds for each fiscal year 2014 through 

2018. (Section 7211) 

The Conference substitute provides additional funding for the 

Organic Research and Education Initiative. One of the primary activities necessary to encourage continued market growth, improved 

food safety and risk management for both of these industries is 

adequate dedicated research support. The Managers recognize that 

research is one of the primary means by which the Farm Bill provides assistance to organic farmers, so conference substitute increases funding beyond the levels in the 2008 Farm Bill, consistent 

with increased market needs. 


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The Managers encourage the USDA to explore technology that 

meets the requirements of the National Organic Program and that 

can control weeds and pests while maintaining healthy water resources. 

(25) Agricultural bioenergy feedstock and energy efficiency research 

and extension initiative 

The House bill repeals section 1672C. (Section 7212) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7212) 

(26) Centers of excellence 

The House bill moves the authority in subsection 1672(i) requiring the Secretary to prioritize any center of excellence established for specific agricultural commodities for the receipt of funding for any competitive research or extension program administered by the Secretary. A center of excellence is composed of 1 or 

more eligible entities specified in subsection (b)(7) of the Competitive, Special, and Facilities Research Grant Act that provide financial or in-kind support to the center. Certain criteria will be considered for recognition as a center of excellence and where practicable, 

the criteria for consideration shall include efforts to improve teaching capacity and infrastructure at colleges and universities. (Section 7214) 

The Senate amendment moves the authority in subsection 

1672(i) providing that the Secretary may prioritize regional centers 

of excellence established for specific agricultural commodities for 

the receipt of funding and authorizes appropriations of $10,000,000 

for fiscal years 2014 through 2018. (Section 7211) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes the Secretary to prioritize 

centers of excellence established for the purposes of carrying out research, extension, and education activities relating to the food and 

agricultural sciences for the receipt of funding for any competitive 

research or extension program. (Section 7214) 

With limited resources to invest in critical programs, the Managers considered multiple options by which Federal funds can be leveraged to improve overall program effectiveness. With the recognition that multiple institutions and organizations participate in 

projects of similar interest, the Managers have sought to 

incentivize the formation of formal partnerships and other organizational structures as Centers of Excellence. The conference substitute directs that such centers that meet established criteria be 

granted priority in receipt of competitive research and extension 

grants. 

The Managers would recommend that USDA establish procedures to implement this provision in accordance with appropriate 

regulatory procedures in order to allow interested stakeholders to 

gain a firm understanding of USDA’s implementation of the provision. 

(27) Red Meat Safety Research Center 

The House bill repeals section 1676. (Section 7215) 


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The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7215) 

(28) Assistive Technology Program for Farmers with Disabilities 

The House bill authorizes appropriations of $6,000,000 for fiscal year 2013 and $3,000,000 for each fiscal year 2014 through 

2018. (Section 7216) 

The Senate amendment authorizes appropriations of 

$6,000,000 for fiscal year 2013 and $5,000,000 for each fiscal year 

2014 through 2018. (Section 7212) 

The Conference substitute adopts the Senate provision. (Section 7216) 

SUBTITLE C—AGRICULTURAL RESEARCH, EXTENSION, AND

EDUCATION REFORM ACT OF 1998 

(29) Coordinated program to improve visibility of small and medium size dairy, livestock and poultry operations 

The House bill repeals section 407. (Section 7303) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(30) Fusarium Graminearum 

The House bill authorizes appropriations of such sums as necessary through fiscal year 2013 and $7,500,000 for each fiscal year 

2014 through 2018. (Section 7304) 

The Senate amendment authorizes appropriations of 

$10,000,000 for each fiscal year 2014 through 2018. (Section 7303) 

The Conference substitute adopts the Senate provision. (Section 7303) 

(31) Bovine Johne’s Disease Control Program 

The House bill repeals section 409. (Section 7305) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7304) 

(32) Specialty Crop Research Initiative 

The House bill authorizes research in plant breeding, genetics 

and genomics to include other methods and also authorizes handling and processing. It authorizes the Secretary to award competitive grants on the basis of an initial scientific peer review and a 

final funding determination made by the Secretary based on a review and ranking for merit, relevance and impact conducted by a 

panel of specialty crop industry representatives for the specific 

crop. $50,000,000 of mandatory monies is authorized for fiscal 

years 2014 and 2015, $55,000,000 for fiscal years 2016 and 2017, 

and $65,000,000 for fiscal year 2018 and each fiscal year thereafter 

and the authorization of appropriations is reauthorized for 2014 

through 2018. Section 6128 provides a universal match policy that 

applies to this provision. (Section 7307) 

The Senate amendment authorizes the Secretary to consult 

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view process. $25,000,000 of mandatory monies is authorized for 

fiscal year 2014, $30,000,000 for fiscal years 2015 and 2016, 

$65,000,000 for fiscal year 2017 and $50,000,000 fiscal year 2018 

and each fiscal year thereafter. The amendment also eliminates the 

non-federal funds limitation on the match requirement. (Section 

7305) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes the initiative to address 

research in genomics and other methods as well as efforts to improve handling and processing. The Secretary is directed to award 

competitive grants on the basis of a scientific peer review and a review and ranking for merit, relevance and impact and to consult 

each fiscal year with the Specialty Crops Committee and report to 

Congress the results of the consultation and the committee’s review 

of the grants awarded in the previous year, including the Citrus 

Disease subcommittee’s consultation and grant review in Section 

1408(g) of the National Agricultural Research, Extension, and 

Teaching Policy Act of 1977. The amendment also authorizes 

$80,000,000 of Commodity Credit Corporation funds for fiscal year 

2014 and each fiscal year thereafter and reauthorizes the authorization of appropriations for each year 2014 through 2018. 

The amendment also adopts the Senate amendment, Section 

12212, with an amendment, authorizing an Emergency Citrus Disease Research and Extension Program with a reservation of Commodity Credit Corporation funds authorized for SCRI of 

$25,000,000 for fiscal year 2014 through 2018, available and reserved until expended, and an authorization of appropriations of 

$25,000,000 for each fiscal year 2014 through 2018. (Section 7306) 

The Managers are aware of concerns that the current merit review process for competitive research grants generally and the Specialty Crops Research Initiative can provide a significantly better 

approach to evaluating the relevancy of the proposed research 

projects through industry participation. The conference substitute 

incorporates amendments to strengthen the merit review process to 

address these shortcomings. 

As the Secretary implements the amendments to sections 103 

and 412 of the Agricultural Research, Extension, and Education 

Reform Act of 1998; and section 1408A of the National Agricultural 

Research, Extension, and Teaching Policy Act of 1977, the Managers intend the Secretary to institute a grant review process that 

will consist of a scientific peer review and a merit/relevance review 

of proposals to be conducted by panels of industry representatives 

for the specific crop or livestock species being evaluated to assess 

industry relevance. 

While the Managers do not specify the order of review between 

scientific peer review and merit/relevance review, it is understood 

that there exists an initial preference among industry, academia 

and the Department that merit/relevance review should be 

sequenced first. If the Secretary chooses to sequence merit/relevance review prior to scientific peer review, the Managers expect 

future modifications to the overall process to be guided by an ongoing evaluation to be conducted by the National Agricultural Research, Extension, Education, and Economics Advisory Board, and 

the Specialty Crop Committee (for merit/relevance review related 


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to the Specialty Crop Research Initiative). The advisory committee 

review of this process should occur before and after each annual 

funding cycle. The results of these reviews should be made publicly 

available and forwarded to the House Committee on Agriculture, 

the Senate Committee on Agriculture, Nutrition and Forestry, and 

the Appropriations Subcommittees on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies in the 

House and Senate. 

The Managers further understand that the Department is considering a pre-proposal process to conduct an enhanced merit/relevance review. While a pre-proposal process is neither authorized 

nor prohibited, the Managers expect that if the Secretary uses his 

discretion to pursue this process, this too would be evaluated as 

part of the ongoing review of program effectiveness. 

In order to sufficiently evaluate the pre-proposals for merit/relevance, the Managers expect the submission must include: the 

process used to obtain stakeholder input to identify the industry 

need and proposed project objectives; the problem, rationale, significance, and hypotheses; how the proposed research approach will 

address each objective; the process to be used for continued stakeholder engagement to achieve project objectives; how the project 

will translate results into delivery of usable information to the entire stakeholder community in a timely fashion; and documentation 

of the relevance of the Principal Investigator(s) scientific background to project objectives. 

Applicants submitting project pre-proposals that are found to 

rank high on merit/relevance review would then be invited to submit full proposals for scientific peer review conducted by a panel 

of subject matter experts from Federal agencies, non-Federal entities, and the industry. Among those project proposals that pass scientific peer review, final awards determinations should, to the 

maximum extent practicable, emphasize the results of the merit/ 

relevance review process. 

The Managers encourage the Secretary to prioritize competitive grants to address imminent threats which may impact the future of specialty crop production in this country. 

The Conference substitute provides additional funding for the 

Initiative. One of the primary activities necessary to encourage continued market growth, improved food safety, and risk management 

is adequate dedicated research support. The Managers recognize 

that research is one of the primary means by which the Farm Bill 

provides assistance to specialty crop producers, so the reported bill 

significantly increases funding beyond the levels in the 2008 Farm 

Bill, consistent with increased market needs. 

The U.S. citrus industry has been devastated by 

huanglongbing, an invasive disease also known as citrus greening 

disease, which has been spread by a foreign pest known as the 

Asian Citrus Psyllid. Citrus greening poses an imminent threat to 

the viability of this multibillion dollar industry in several states 

and promises to ravage the rest of the U.S. citrus producing sector 

if a cure or effective treatment is not found expeditiously. USDA 

has already affirmed this emergency with the citrus quarantine for 

Florida, Alabama, Georgia, Hawaii, Louisiana, and Mississippi as 

well as parts of California, South Carolina, and Arizona in October 


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2012. Citrus greening spreads quickly, and because of its dormancy 

period, surrounding groves are often already destroyed by the time 

the disease has been discovered. 

The conference substitute establishes a research program dedicated to discovering or developing a cure or effective treatment for 

citrus greening and any other diseases and pests, domestic or 

invasive, that emerge to threaten the U.S. citrus producing and 

processing industry. The Managers recognize the need to target research toward citrus greening in a sustained and adequately funded manner. The urgent need to find a cure or effective treatments 

for citrus greening that will be useful in all of the major citrus-producing states of Arizona, California, Florida, and Texas is paramount. This urgency should guide the Department’s operation of 

this program. 

The Managers also recognize the importance of ensuring close 

collaboration between the Department, the industry stakeholders 

described in this section, and the relevant entities engaged in scientific research under this program. The Managers intend that the 

Department will consult closely and regularly with the industry 

stakeholders in the formulation, consideration, and approval of research projects performed under this program and will give great 

weight to input from these stakeholders. Those persons selected to 

serve as industry stakeholders should be chosen in a manner that 

reflects the views and interests of the commercial citrus-producing 

sectors in the major citrus-producing states. 

(33) National Swine Research Center 

The House bill repeals section 612. (Section 7309) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7308) 

(34) Studies of agricultural research, extension and education 

The House bill repeals Subtitle C of title VI. (Section 7311) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7311) 

SUBTITLE D—OTHER LAWS

(35) Equity in Educational Land-Grant Status Act of 1994 

The House bill adds Aaniih Nakota College, College of the 

Muscogee Nation, Keweenaw Bay Ojibwa Community College, and 

Navajo Technical College and removes Crownpoint Institute of 

Technology, Fort Belknap College, and Si Tanka/Huron University 

to the authority and updates the names of Chief Dull Knife College 

and Sisseton Wahpeton College. The bill reauthorizes appropriations through fiscal year 2018 and requires certification that research will be performed under a cooperative agreement with ARS 

or at least one other land grant college or university (exclusive of 

another 1994 Institution), at least one non-land grant college of agriculture or at least one cooperating forestry school. (Section 7402) 

The Senate amendment adds the same institutions as the 

House bill and updates the name of the Sisseton Wahpeton College, 


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reauthorizes appropriations through fiscal year 2018 and requires 

the same certification as the House provision. 

Amends subsection (a)(2)(A)(ii) to except 1994 Institutions as 

provided under section 3(b)(3) of Smith-Lever, and for programs for 

children, youth and families at risk and for Federally recognized 

tribes implemented under section 3(d) of that Act (subsection (b)). 

(Section 7402) 

The Conference substitute adopts the House provision. (Section 

7402) 

The Managers remain concerned about the agency’s operation 

of FRTEP as if it were a 3(d) program. The Reservation Extension 

Agent Program was not authorized under Section 3(d) of the SmithLever Act. While this may have made administration of grants 

easier for the agency, it has led to confusion and unintended consequences. The Managers encourage the agency to follow congressional intent when implementing programs, old and new. 

(36) Carbon cycle research 

The House bill repeals section 221. (Section 7404) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

The Managers encourage the Agricultural Research Service to 

continue their field studies around the country to assess how 

biochar affects crop productivity and soil quality. Preliminary studies show promising results of how hardwood biochar can improve 

soil structure and the ability of sandy soils to retain water. 

(37) Competitive, Special, and Facilities Research Grant Act 

The House bill reauthorizes appropriations through fiscal year 

2018. The provision authorizes priority areas on plant-based foods 

that are major sources of nutrients of concern, the research and development of surveillance methods, vaccines, vaccination delivery 

systems or diagnostic test for pests and diseases in wildlife reservoirs, the identification of animal drug needs, conservation practices and technologies addressing nutrient loss and improving 

water quality, and the economic costs of adopting conservation 

practices and technologies to improve water quality. The bill requires the Secretary to establish procedures under which State or 

Federal commodity promotion entities may directly submit proposals for requests for applications to address issues related to established priorities and award grants to eligible entities that submit proposals. Eligible entities are amended to include foundations. 

The Inter-regional research project number 4 is amended to include 

pesticides for use on specialty crops. Subsection (k) is repealed. 

(Section 7405) 

The Senate amendment reauthorizes appropriations through 

fiscal year 2018. Section 7208(6) authorizes the Pulse Health Initiative, including an authorization of appropriations of $25,000,000 

for fiscal years 2014 through 2018. Sec. 12101 amends Title IV of 

the Agricultural Research, Extension, and Education Reform Act of 

1998 to establish a wildlife reservoir zoonotic disease initiative to 

provide grants for research and development of surveillance methods, vaccines, vaccination delivery systems, or diagnostic tests for 

covered diseases. Sec. 7308 authorizes four regional integrated pest 


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management centers to provide research and extension programs, 

outreach, and response to information needs, among other purposes. The amendment also requires that not less than 30 percent 

of funding be made available for integrated research, extension and 

education activities and requires the Secretary to submit a report 

to Congress regarding streamlining the AFRI grant application 

process. (Section 7404) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes appropriations through 

2018, and adds priority areas to the competitive grant program and 

foundations to the list of eligible entities. The amendment also directs the Secretary to establish procedures under which a commodity promotion board or a State commodity board (or its equivalent) may submit to the Secretary for consideration proposals for 

requests for applications that address issues related to the priority 

areas of this grant program. Grants will not be funded under this 

authority unless the grant is matched with an equal contribution 

of funds from the entities submitting proposals for requests for applications. The Inter-regional research project number 4 is amended to include specialty crops. (Section 7404) 

The Agriculture and Food Research Initiative (AFRI) is the 

premier competitive research and extension grants program within 

the USDA. The AFRI program was established in 2008 as a successor program to the National Research Initiative Competitive 

Grants Program and the Initiative for Future Agriculture and Food 

Systems. The statutory priorities for the AFRI program are purposefully broad. In developing these priorities, the Congress was 

aware that as science evolves, a balance needed to be achieved between the need for flexibility to respond to new and emerging 

threats and opportunities, and the need for transparency and accountability in the expenditure of taxpayer funds. 

Concerns are periodically raised regarding the annual allocations among the various statutory programmatic priorities and sub 

priorities. The Managers were aware of these qualitative concerns 

but lacked quantitative information on which to base any policy 

modifications. As a continuation of the programmatic audit carried 

out by the House Committee on Agriculture in preparation for developing the FARRM Act, USDA was requested to provide a listing 

of recent awards under the AFRI program sorted according to the 

corresponding statutory priorities and sub priorities. That data revealed a dramatic shift in awards funding away from traditional 

areas of production agriculture. For instance, awards for research 

in plant systems dropped from 38.7 percent of available funds in 

fiscal year 2007, the final full year under the predecessor programs, to 18.4 percent in 2011. Awards for research in animal systems fell from 22.4 percent to 9.4 percent over the same time period. 

Following receipt of a final report in February 2013, there remained concern that the allocation of research and extension 

awards under the AFRI program was inconsistent with national 

priorities. As a result of the analysis, commitments were made by 

senior leadership of the National Institutes of Food and Agriculture 

(NIFA) to address these concerns. Efforts undertaken by the Director of NIFA to incorporate enhancements in the fiscal year 2014 


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budget submission, while still lacking in certain respects, demonstrate the seriousness to which these commitments are being 

upheld. 

While the Managers are encouraged by the progress being 

made, there remains a desire to codify the transparency and accountability measures contained within this budget submission language (section 7513). 

The Managers recognize the importance of basic animal health 

research. The Conference substitute includes a priority for the research and development of surveillance methods, vaccines, vaccination delivery systems and diagnostic tests for pests and diseases 

that cause epizootic diseases in domestic livestock (including deer, 

elk, bison, and other cervidae) and zoonotic diseases (including bovine brucellosis and bovine tuberculosis) in domestic livestock or 

wildlife reservoirs that present a potential concern to public health. 

The Managers recognize the growing importance of and need 

for comprehensive and practical scientific and economic assessments of agricultural practices and technologies intended to improve agriculture’s water quality and quantity performance. This is 

particularly the case as states work with producers on high priority 

or high profile water quality challenges. Such scientific and economic assessments are needed for the major crop producing regions 

of the country, taking into account soils, climate, crops grown, and 

the technologies and agricultural practices in use. The goal of such 

assessments should be to develop information and continue to build 

on the tools already in place. The assessments should continue to 

develop new and innovative approaches to help producers and policy makers in states understand what is affordable, achievable and 

sustainable for producers. The assessment can then be used to consider how different water quality policy choices relate to other important societal objectives involving agriculture. The Managers encourage the Secretary to initiate a multi-year effort to help the 

states and USDA continue to develop this base of science and 

knowledge through the funding of proposals from qualified institutions capable of supporting interdisciplinary teams of researchers 

and experts to carry out such efforts. 

The Managers recognize the success of the Conservation Effects Assessment Project (CEAP) and the cross collaborative approach between multiple agencies at USDA, and strongly encourages USDA to continue and expand on those efforts. The Managers 

do not intend for this provision to be a replacement for or duplication of CEAP, but rather as a source of sound, complementary economic and technical information that could be used in conjunction 

with CEAP to create more accurate assessments of the effects of 

prospective conservation measures on agricultural land. 

The Managers recognize that maintaining and enhancing wild 

rice, a uniquely American specialty crop, depends on continued use 

of traditional breeding methods, along with the application of new 

genetic tools to make conventional breeding more efficient. Genetic 

analysis of shattering, disease resistance, reduced plant height, and 

other traits require not only development of new genetic markers 

for wild rice, but also new methods for gathering accurate 

phenotypic information on the plants. The use of these improved 

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ability through reliable seed storage methods. Some research has 

been done on maintaining viability of stored seeds, but these need 

to be translated into reliable and useful methods at the local level 

to ensure breeding progress. 

The Managers would hope that the Secretary would consider 

the following research objectives regarding wild rice genetic resources: preserving and enhancing wild rice breeding lines for testing and release as future varieties; developing phenotyping methods and genotypic markers for various traits; using genotypic and 

phenotypic information to identify superior genetic resources for 

breeding and to develop more efficient breeding methods; evaluating and maintaining the genetic distinctiveness of wild rice 

breeding lines and populations; and developing improved methods 

for short- and medium-term storage of wild rice breeding lines and 

populations. 

The Managers are concerned about the spread of tick-borne illnesses, particularly Lyme Disease in humans. The disease is heavily concentrated in the Northeast and upper Midwest. Lyme Disease, along with other tick-borne illnesses which affect livestock, 

presents a public health concern, particularly in the Agriculture 

community. Recognizing the impact of pests such as ticks, the Managers have reauthorized important research and development priorities and urge NIFA, in conjunction with other agencies, to build 

upon its existing efforts and pest management resources to protect 

humans and livestock from tick-borne illnesses. 

The Managers recognize that eligible applicants with limited 

institutional capacity may face unique challenges in successfully 

competing for funding administered by NIFA. The Managers encourage the Secretary to assess these challenges and to consider 

appropriate methods of streamlining the competitive grants application process. 

(38) Remote sensing data 

The House bill repeals section 892. (Section 7408) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7407) 

(39) Reports under Farm Security and Rural Investment Act of 2002 

The House bill repeals Sections 7409, 7410 and 7411. (Section 

7409) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7408) 

(40) Beginning Farmer and Rancher Development Program 

The House bill amends the authorized areas for programs and 

services and includes school-based agricultural educational organizations as a priority recipient. The bill requires that not less than 

5 percent of the funds in a fiscal year used to make grants be used 

to support programs and services that address the needs of military veteran beginning farmers and ranchers and authorizes the 

Secretary to coordinate between a recipient of a grant used for this 

purpose and a recipient of a grant under section 1680 of the Food, 


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Agriculture, Conservation and Trade Act of 1990 in addressing the 

needs of military veteran beginning farmers and ranchers with disabilities. The provision prohibits a recipient of a grant from using 

more than 10 percent of grant funds for the indirect costs of carrying out an authorized grant initiatives. Of the funds of the Commodity Credit Corporation, $20,000,000 for each fiscal year 2014 

through 2018 is authorized and the authorization of appropriations 

is extended for fiscal years 2014 through 2018. (Section 7410) 

The Senate amendment includes beginning farmers and ranchers who are veterans in the current set-aside of funding and authorizes competitive grants to States to establish and improve farm 

safety program at the local level. Of the funds of the Commodity 

Credit Corporation, $17,000,000 for each fiscal year 2014 through 

2018 is authorized and the authorization of appropriations is extended for fiscal years 2014 through 2018. (Section 7408) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes grant purposes including 

farm safety and awareness and a priority for school-based agricultural educational organizations. It also specifies that an eligible entity may be a community-based or nongovernmental organization 

and provides at least a 5 percent set-aside for those programs and 

services already qualified for the set-aside in current law as well 

as another 5 percent set-aside for veteran farmers and ranchers. 

The amendment limits indirect costs and permits coordination with 

recipients of an assistive technology program for farmers with disabilities grant. $20,000,000 of Commodity Credit Corporation funds 

for each fiscal year 2014 through 2018, to remain available until 

expended, is authorized and the authorization of appropriations is 

extended through 2018. (Section 7409) 

The Conference substitute reauthorizes and provides mandatory funding to the Beginning Farmer and Rancher Development 

Program, which develops and offers education, training, outreach 

and mentoring programs to ensure the success of the next generation of farmers. The conference substitute expands eligibility to include military veterans who wish to begin a career in agriculture. 

(41) McIntire-Stennis Cooperative Forestry Act 

The House bill amends the definition of state to include American Samoa, the Federated States of Micronesia and the Commonwealth of the Northern Mariana Islands. (Section 7411) 

The Senate amendment amends the definition of state to include the Federated States of Micronesia, American Samoa, the 

Northern Mariana Islands and the District of Columbia and exempts eligible 1890 Institutions from the matching funds requirement if the allocation is below $200,000. (Section 8301) 

The Conference substitute adopts neither the House nor the 

Senate provision. Both the House bill and Senate amendment included amendments to the McIntire-Stennis cooperative forestry 

program to extend eligibility to the 1862 land grant colleges in insular areas not currently specified in the Act. USDA has since provided the Managers with technical assistance clarifying that those 

institutions were already eligible to participate by virtue of other 

law, specifically section 1361(a) of P.L. 96–374, thus negating the 

need for this provision. 


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The National Association of University Forest Resources Programs (NAUFRP), (formerly the National Association of Professional Forestry Schools and Colleges) represents 69 of our nation’s 

universities and their respective scientists, educators and extension 

specialists. NAUFRP’s purpose is to advance the health, productivity, and sustainability of America’s forests by providing university-based natural resource education, research, science, extension 

and international programs. The Managers would encourage USDA 

to engage in discussions with NAUFRP to ensure that their proposals for resource management are appropriately addressed. 

SUBTITLE E—FOOD, CONSERVATION, AND ENERGY ACT OF 2008 

(42) Enhanced Use Lease Authority Pilot Program 

The House bill states that section 308 is amended to terminate 

10 years after the date of enactment of section 308 and reports are 

required not later than 6, 8, and 10 years after enactment. (Section 

7511) 

The Senate amendment states that subparagraph (b)(6)(A) is 

amended to extend the authority of this section on September 30, 

2018. (Section 7405) 

The Conference substitute adopts the House provision. (Section 

7511) 

(43) Grazinglands Research Laboratory 

The House bill amends section 7502 to extend the authority for 

10 years beginning on the date of enactment of the Act. (Section 

7512) 

The Senate amendment amends section 7502 to extend the authority until September 30, 2018. (Section 7511) 

The Conference substitute adopts the House provision. (Section 

7512) 

(44) Budget submission and funding 

The House bill requires information regarding each research 

program carried out by the ARS or ERS for which annual appropriations are requested in the annual budget submission of the 

President and each competitive program carried out by the NIFA 

for which annual appropriations are requested in the annual budget submission of the President, requires additional information for 

each funding request for a covered program to be submitted to Congress each year together with the annual budget submission of the 

President, prohibits the President from carrying out any program 

under certain authorities during the fiscal year unless the President submits the information required and described for a fiscal 

year and requires an annual report to Congress. (Section 7512) 

The Senate amendment requires information regarding each 

research program carried out by the ARS or ERS for which annual 

appropriations are requested in the annual budget submission of 

the President and each competitive program carried out by the 

NIFA for which annual appropriations are requested in the annual 

budget submission of the President, requires additional information 

for each funding request for a covered program to be submitted to 

Congress each year together with the annual budget submission of 


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the President, and requires an annual report to Congress. (Section 

7512) 

The Conference substitute adopts the House provision. (Section 

7513) 

The Managers are aware of the need for the statutory priorities for the various agricultural research, education and extension 

programs to be written with sufficient flexibility so that the Administrators of the USDA research agencies can respond quickly and 

efficiently to emerging problems and opportunities. Further, recent 

changes in Congressional appropriations procedures have only enhanced USDA’s flexibility in administering these programs. The 

Managers are nevertheless cognizant of the need for taxpayer 

funds to be used in a transparent and accountable manner. 

Given the spending discretion that USDA has gained in recent 

years, it is incumbent upon the Department to manage the research, education and extension programs in a most transparent 

manner. This transparency assures Congress and stakeholders of 

the integrity of these programs. 

In the past year, the Managers have expressed concerns about 

funding allocations under various research, education, and extension programs to the senior leadership of the National Institute of 

Food and Agriculture (NIFA). These fruitful discussions with NIFA 

leadership resulted in several commitments to address the underlying concerns of the Managers as well as to enhance the information available in future budget submissions. 

In order to increase the ability of Congress to appropriately 

oversee funding allocations, the conference substitute seeks to codify the commitments that have been made by NIFA leadership in 

order to provide transparency and accountability with regard to the 

research, extension and education budget. It is the intent of the 

Managers that USDA provide increasingly detailed spending plans 

to Congress in advance of the development of annual appropriations measures so that Congress and interested constituencies can 

weigh the merits of these allocations against evolving priorities, 

and as a representative body, Congress can approve or disapprove 

of the proposed allocations. 

The Managers believe that receipt of the information requested 

in this section will be beneficial to the long-term goal of expanding 

resources available for agricultural research, extension and education. The Managers believe that enhanced transparency in the 

budgeting process can only increase awareness and broad-based 

support for these critical programs. 

It is likewise the intent of the Managers that the process of 

submitting information concerning the budget outline would be an 

iterative process and that the research agencies would consult with 

the Congressional authorizing committees and appropriating subcommittees to ensure clarity of the budget request. To this end, the 

conference substitute specifically authorizes the research agencies 

to submit corrections and clarifications in a reasonable period of 

time to fulfill the requirements of this section. 

The Managers are aware that the ARS is shifting its funding 

priorities from core work in areas impacting crop protection and 

livestock production to environmental stewardship. The Managers 

are concerned that this action is short-sighted, especially in light 


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of the fact that many plant disease issues may be magnified under 

varying weather conditions, and this is especially the case in the 

work on fusarium head blight in wheat and barley. 

The Managers are aware of budgetary constraints throughout 

the Department; nevertheless, the Managers question the priority 

setting process on how funds are allocated with regard to aquaculture. In particular, the Managers are aware of the continuing 

threat of predators to aquaculture operations and encourage the 

Secretary to continue to fund these important livestock protection 

programs. 

The Managers recognize that historical funding levels for 

equine sciences have been limited and encourage the Secretary to 

consider increasing resources allocated to research priorities for 

equine health in the Department’s annual budget submission. 

The Mangers recognize that historical funding levels for rangeland and prairie grass research has been limited and encourage the 

Secretary to consider increasing resources allocated to research priorities for rangeland and prairie grass research, including tallgrass and other native vegetation. 

The Managers recognize the importance of nationally coordinated, regionally managed canola research and education programs. In awarding grants for these activities, the Managers encourage the Secretary to seek input from stakeholders and give priority consideration to proposals that address research needs in production areas with the greatest potential to expand as well as those 

where canola production is established and needs to be maintained. 

The Managers would like to encourage the Secretary to fund 

competitive research into the fundamental issues of stabilizing food 

prices to enhance food security in the U.S. and globally. One area 

of interest is an examination of the economic factors leading to increased food security in the U.S. The Managers are also interested 

in how financial markets and the expansion of the bioenergy industry globally has impacted global food prices. 

(45) Research and education grants for the study of antibiotic-resistant bacteria 

The House bill reauthorizes appropriations through 2018. (Section 7514) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(46) Farm and Ranch Stress Assistance Network 

The House bill repeals Section 7522. (Section 7515) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(47) Seed distribution 

The House bill repeals Section 7523. (Section 7516) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7514) 


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(48) Sun Grant Program 

The House bill authorizes the Secretary to coordinate among 

appropriate Federal agencies, authorizes grants to be used towards 

integrated, multistate research, extension and education programs 

on technology development and implementation, repeals Funding 

allocations for specific programs, amends requirements for the plan 

for research activities to be funded to address bioproducts and priorities of appropriate Federal agencies and reauthorizes the program. (Section 7518) 

The Senate amendment authorizes the Secretary to coordinate 

among appropriate Federal agencies, authorizes grants to be used 

towards integrated, multistate research, extension and education 

programs on technology development and implementation, repeals 

Funding allocations for specific programs, amends requirements for 

the plan for research activities to be funded to address bioproducts 

and priorities of appropriate Federal agencies, reauthorizes the 

program, and authorizes grants to a Sun Grant Center for each region. (Section 7514) 

The Conference substitute adopts the Senate provision. (Section 7516) 

The Conference substitute directs the Secretary to utilize and 

leverage the investment, resources, and capacities of the current 

regional Sun Grant Program Centers and Sub-center to continue 

their leadership and management of the regional Sun Grant competitive grants program. 

The Conference substitute reauthorizes, consolidates, and 

amends the Sun Grant Program to expand input from other appropriate federal agencies, authorize bio products, eliminate authorization for gasification research and make the program competitive. 

The Managers recognize the leadership and work of the Sun Grant 

Centers in each region and intends that the revisions to the program to make it competitive do not reduce the effectiveness of the 

overall program. The Managers also recognize the importance of 

the collaborative nature of the Sun Grant Centers and is requiring 

that applicants represent consortia of universities with prior experience working collaboratively to pursue the intent of the program. 

The Managers recognize the importance of demonstrated experience in working with multiple federal agencies and in awarding 

and managing funding provided through competitive grants to land 

grant institutions and institutions partnering with land grant institutions. Accordingly, the Secretary is encouraged to competitively 

select a single association of universities that will implement the 

Sun Grant Program for the duration of this farm bill authorization. 

This association of universities should be made up of a university 

from each of the sun grant regions and sub region that will serve 

as the Sun Grant Center or Sub center for that region or sub region. In making the competitive selection, the Secretary should consider giving preference to an association of universities that has 

demonstrated experience in managing regional competitive grant 

programs for research and education programs that support the development of bioenergy, biomass feedstocks, and biobased products. 

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tices in the selection, management, and dissemination of research 

projects. 

(49) Study and report on food deserts 

The House bill repeals Section 7527. (Section 7519) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7517) 

(50) Agricultural and rural transportation research and education 

The House bill repeals Section 7529. (Section 7520) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7518) 

SUBTITLE F—MISCELLANEOUS PROVISIONS

(51) Agreements with nonprofit organizations for National Arboretum 

The House bill authorizes the Secretary to negotiate agreements with nonprofit organizations that support the purpose of the 

National Arboretum and use the proceeds of the organizations towards operation and maintenance of the facilities. In addition, a 

nonprofit organization that entered into such agreement may recognize donors if such recognition is approved by the Secretary. (Section 7601) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes the Secretary to negotiate 

concessions and agreements for the National Arboretum with nonprofit scientific or educational organizations and nonprofit organizations that entered into a concession or agreement to recognize donors. (Section 7602) 

(52) Cotton Disease Research Report 

The House bill requires the Secretary to submit to Congress a 

Cotton Disease Research Report. (Section 7602) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7604) 

(53) Acceptance of facility for Agricultural Research Service 

The House bill authorizes the Secretary to allow a non-Federal 

entity to construct a facility for use and on land owned by the Agricultural Research Service under certain conditions. (Section 7603) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(54) Technical Corrections 

The House bill makes miscellaneous technical corrections. (Section 7604) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

7605) 


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(55) Legitimacy of industrial hemp research 

The House bill authorizes research using industrial hemp at an 

institution of higher education if the growing or cultivating of industrial hemp is allowed under the laws of the State where the institution of higher education is located and the research occurs. Industrial hemp is defined. (Section 7605) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes an institution of higher 

education or State department of agriculture to grow or cultivate 

industrial hemp for research purposes if the laws of the State permit its growth and cultivation. (Section 7606) 

(56) Foundation for food and agriculture research 

The Senate amendment authorizes a foundation for food and 

agriculture research, a new nonprofit corporation designed to supplement USDA’s basic and applied research activities. On Oct. 1, 

2013, of the funds of the Commodity Credit Corporation, the Secretary shall transfer to the Foundation $200,000,000 to remain 

available until expended. (Section 7601) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment authorizes a foundation for food and 

agricultural research designed to supplement USDA’s basic and applied research activities and $200,000,000 of Commodity Credit 

Corporation funding to the Foundation to remain available until 

expended. (Section 7601) 

The Managers recognize the significant need for agricultural 

research and the challenge to find funding in the current fiscal environment. As such the conference substitute creates a new nonprofit foundation, the Foundation for Food and Agriculture Research, to leverage private funding, matched with federal dollars, 

to support public agricultural research. This approach will foster 

continued innovation in agricultural research. 

The increased productivity and boost in crop yields experienced 

by American farmers can be attributed to research investments 

made 30 to 50 years ago. Federal investment in public agricultural 

research has been trending downward at a time when the demands 

of a growing population require that American agriculture research 

again take a leading role in pushing forward food production. 

USDA, the National Academy of Sciences, the National Science 

Foundation and agricultural research stakeholders will play an integral role in establishing the Foundation. 

The Managers do not intend for the Foundation to be duplicative of current funding or research efforts, but rather to foster public-private partnerships among the agricultural research community, including federal agencies, academia, non-profit organizations, 

corporations and individual donors to identify and prioritize the 

most pressing needs facing agriculture. It is the Managers view 

that the Foundation will complement the work of USDA basic and 

applied research activities and further advance USDA’s research 

mission. Furthermore, the Managers do not intend in any way for 

the Foundation’s funding to offset or allow for a reduction in the 

appropriated dollars that go to agricultural research. 


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(57) Agricultural and food law research, legal tools and information 

The Senate amendment authorizes the Secretary, acting 

through the National Agricultural Library, to support the dissemination of agricultural and food law research, legal tools and information by entering into cooperative agreements with institutions of 

higher education. The Secretary may not use more than $5,000,000 

of the amounts made available to the national Agricultural Library. 

(Section 7602) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment directs the Secretary, through the 

National Agricultural Library, to support the dissemination of agricultural and food law research, legal tools and information by entering into cooperative agreements with institutions of higher education and authorizes $5,000,000 in appropriations for fiscal year 

2014 and each year thereafter. (Section 7603) 

The Managers recognize that farms, ranches, and forests in the 

United States are impacted by a complex and rapidly evolving web 

of competition and international, Federal, State, and local laws, including regulations. The agricultural community of the United 

States, including farmers, ranchers, foresters, attorneys, policymakers, and extension personnel, need access to agricultural and 

food law research and information provided by objective, scholarly, 

and neutral sources. 

TITLE VIII—FORESTRY

SUBTITLE A—REPEAL OF CERTAIN FORESTRY PROGRAMS

(1) Watershed Forestry Assistance Program 

The House bill repeals the Watershed Forestry Assistance Program in the Cooperative Forestry Assistance Act of 1978, effective 

on October 1, 2013. (Section 8002) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment eliminates the effective date. (Section 

8002) 

(2) Expired Cooperative National Forest Products Marketing Program 

The House bill repeals the Cooperative National Forest Products Marketing Program in the Cooperative Forestry Assistance 

Act of 1978 which has been expired. (Section 8003) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8003) 

(3) Separate forest service decision making and appeals process 

The House bill repeals Section 322 of the Department of the 

Interior and Related Agencies Appropriations Act, 1993. It prohibits application of Section 428 of the Consolidated Appropriations 

Act, 2012 to any project or activity implementing a land and resource management plan that is categorically excluded from an EA 

or EIS under NEPA. (Section 8006) 


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The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8006) 

This provision clarifies the intent of Congress regarding administrative review of projects and activities implementing land 

and resource management plants. This language came as a result 

of a federal court decision in March 2012 that the Forest Service 

must engage in this process for noncontroversial, common sense actions that provide jobs, public safety, community fire protection, 

and clean water. This is not required of the Department of the Interior or any other federal agency. This provision would return the 

agency to the procedures that were in place prior to the 2012 court 

decision. 

SUBTITLE B—REAUTHORIZATION OF COOPERATIVE FORESTRY

ASSISTANCE ACT OF 1978 PROGRAMS

(4) State-wide assessment and strategies for forest resources 

The House bill requires the State Forester or equivalent State 

official in developing or updating the State-wide assessment and 

strategy for forest resources to coordinate with, when feasible, appropriate military installations. (Section 8101) 

The Senate amendment extends the authorization of appropriations for the state-wide assessment and strategies for forest resources through 2018. 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides for the extension of the authorization of appropriations for state-wide assessment and strategies for forest resources that was in the Senate amendment. (Section 8101) 

The 2008 farm bill conference report included language directing state foresters to perform statewide assessments of forest lands 

within their borders to better understand how to properly manage 

these resources. The first reports came back in 2010. The Managers 

considered these reports a success and adopted the House provision 

that directs state foresters to coordinate with military facilities 

within their borders when developing future plans. 

(5) Forest Legacy Program 

The House bill eliminates the authorization for the Forest Legacy Program of such sums as necessary and replaces it with an authorization of appropriations of $55,000,000 for fiscal years 2014 

through 2018. (Section 8102) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(6) Community Forest and Open Space Conservation Program 

The House bill eliminates the authorization for the Community 

Forest and Open Space Conservation Program of such sums as necessary and replaces it with an authorization of appropriations of 

$1,500,000 for fiscal years 2014 through 2018. (Section 8103) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 


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SUBTITLE C—REAUTHORIZATION OF OTHER FORESTRY-RELATED

LAWS

(7) Office of International Forestry 

The House bill authorizes appropriations of $6,000,000 for fiscal years 2014 through 2018 for the Office of International Forestry. (Section 8202) 

The Senate amendment extends authorization of appropriations through fiscal year 2018. (Section 8202) 

The Conference substitute adopts the Senate provision. (Section 8202) 

(8) Change in funding source for Healthy Forests Reserve Program 

The House bill authorizes appropriations of $9,750,000 for fiscal years 2014 through 2018. Appropriated funds may be used to 

carry out the Soil Conservation and Domestic Allotment Act for 

land enrolled in the program. (Section 8203) 

The Senate amendment is the same as the House. It defines 

the term ‘‘Acreage Owned by Indian Tribes’’ for the purposes of 

Section 502(e)(3). (Section 8205) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment increases the authorization levels 

from $9,750,000 to $12,000,000. (Section 8203) 

The Managers intend to clarify the definition of Indian-owned 

acreage for the program managed by NCRS. Further, as a result 

of the potential increase in participation in the program, the Managers increased the authorization level. 

(9) Stewardship end result contracting project authority 

The House bill states that section 347 of the Department of the 

Interior and Related Agencies Appropriations Act, 1999 is reauthorized through fiscal year 2018. It authorizes the Secretary to 

consider a Stewardship Contract as a contract for the sale of property. Further, it requires the Chief of the Forest Service and the 

Director of Bureau of Land Management to issue fire liability provisions for use in all contracts and agreements under section 347. 

(Section 8204) 

The Senate amendment repeals Section 347 of the Department 

of the Interior and Related Agencies Appropriations Act, 1999. It 

authorizes the Secretary to consider a Stewardship Contract as a 

contract for the sale of property. It further adds Stewardship End 

Result Contracting Projects to the Healthy Forests Restoration Act 

of 2003, authorizing the Forest Service and Bureau of Land Management to enter into stewardship end-result contracting projects 

(Stewardship Contracts) for services that achieve land management 

goals. The authorization is permanent. (Section 8204) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment includes the House language that requires the Chief of the Forest Service and the Director of the Bureau of Land Management to issue fire liability provisions for use 

in all contracts and agreements under section 347. (Section 8205) 

The Managers provide the Forest Service with a permanent extension of stewardship contracting authority. This approach to land 

management has proved to be effective nationwide since it was 


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first authorized in 1999 and extended in 2003. Stewardship Contracting allows the Forest Service to conduct important forest restoration work by allowing the value of wood removed to help offset 

the cost of needed restoration treatments, like forest thinning, introduction of prescribed fire, and habitat improvements for a variety of species. The Managers include in this extension, provisions 

that allow for designation by prescription for the marking of timber 

under this program. The Conference substitute also includes language which provides the same fire liability provisions utilized 

under the current timber sales program to be available for Stewardship Contracts. The Managers do not intend for Stewardship 

Contracting to replace, diminish, or adversely impact the U.S. Forest Service’s timber sales program. 

The Managers expect the Chief to work with purchasers of Forest Service timber to address concerns they have raised about 

methods of selecting the winning bidders on Stewardship Contracts, and to provide feedback to losing bidders to help increase 

their understanding of the process to become more effective in the 

future. 

(10) Insect and disease infestation 

The Senate amendment authorizes the designation of treatment areas, as part of an insect and disease treatment program, 

one or more subwatersheds in at least one National Forest in each 

State that is experiencing an insect or disease epidemic within 60 

days after the date of enactment of this Act. Additional areas may 

be designated as needed after the initial 60 day period. The Secretary may carry out priority projects on Federal land in designated subwatersheds to reduce the risk or extent of, or increase 

the resilience to, insect or disease infestation. Priority projects 

shall maximize the retention of old-growth and large trees, as appropriate and to the extent the trees promote stands resilient to insects and disease. The Senate amendment authorizes appropriations of $200,000,000 for fiscal years 2014 through 2018. (Section 

8203) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment replaces the subwatershed size treatment area with a landscape scale and includes a limited categorical 

exclusion for projects smaller than 3,000 acres. The program is authorized for 10 years through 2024. (Section 8204) 

The outbreak of the pine bark beetle afflicting states across the 

nation is a great concern to the Managers. To date, an estimated 

41 million acres have been affected across the United States, creating potentially hazardous fuel loads in several western states. 

The Managers agreement includes provisions to provide the Forest 

Service with increased flexibility to address this issue and work 

with partners to mitigate the potential damage. 

The Conference substitute recognizes that the current system 

for managing national forests affected by historic insect infestations has not been responsive to the speed and widespread impact 

of the infestations. The final language builds on current law familiar to all stakeholders, the Healthy Forests Restoration Act, by targeting the law’s application for a ten-year period to insect- and disVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00516 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ease-affected forests. It appropriately focuses on landscape-scale 

restoration work and protects old-growth and large trees to the extent their retention promotes resilient stands in a given type of forest. The final language also includes a Categorical Exclusion (CE) 

under the National Environmental Policy Act that is subject to several critical sideboards. 

The most important limitation is that any projects subject to 

a CE must be developed and implemented through a collaborative 

process that is transparent, nonexclusive, and includes multiple 

and diverse stakeholders. Collaborative forest restoration partnerships have a proven record of fostering the social license that is 

crucial to managing our public lands appropriately. The Conference 

substitute recognizes the success of forest collaboratives and encourages their continued work across the country. Additional limitations to use of the CE include that projects may be no larger than 

3,000 acres; projects may only take place in the wildland-urban 

interface or in forests facing a risk of fire greater than their historical norm; no permanent roads may be constructed and any temporary roads must be decommissioned within three years; and the 

Forest Service must report to Congress each year about its use of 

the CE. 

The Mountain Pine Beetle Response Project (MPBR) in the 

Black Hills National Forest can be used as a model for the type 

and scale of projects that are to be conducted with these provisions 

to keep pace with expanding insect infestations. The MPBR Project 

encompasses approximately 248,000 acres of National Forest System lands and includes approximately 122,000 acres of thinning or 

other measures aimed at reducing stand density and hazardous 

fuels. The Managers expect that acres covered by the projects are 

tailored to the local circumstances depending on the size of the forest and scope of the infestation. The authority in these provisions 

provides the Forest Service with additional tools to replicate these 

types of landscape scale projects across the country in coordination 

with local stakeholders. 

SUBTITLE D—NATIONAL FOREST CRITICAL AREA RESPONSE

(11) Definitions 

The House bill defines the terms ‘‘Critical Area’’, ‘‘National 

Forest System’’, and ‘‘Secretary’’ for the purposes of this title. (Section 8301) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(12) Designation of critical areas 

The House bill provides for the designation of critical areas 

within the National Forest System to address deteriorating forest 

health conditions due to insect infestation, drought, disease or 

storm damage and the future risk of insect infestations or disease 

outbreaks through preventative treatments. (Section 8302) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 


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(13) Application of expedited procedures and activities of the 

Healthy Forests Restoration Act of 2003 to critical areas 

The House bill authorizes the application of Title I of the 

Healthy Forests Restoration Act of 2003 to all Forest Service 

projects and activities carried out in a critical area and requires 

the same projects and activities be consistent with the applicable 

land and resource management plan. However, Sec. 322 of P.L. 

102–381 will not apply to projects conducted in accordance with 

this section, and in applying Title I, the authority shall apply to 

the entire critical area and all projects and activities of the Forest 

Service shall be considered as authorized hazardous fuel reduction 

projects. Certain smaller projects shall be considered an action categorically excluded from the requirements of an environmental assessment or an environmental impact statement and exempt from 

section 105 of the Healthy Forests Restoration Act of 2003. (Section 

8303) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(14) Good neighbor authority 

The House bill authorizes the Secretary to enter into cooperative agreements or contracts with a state forester to provide forest, 

rangeland, and watershed restoration, management and protection 

services on National Forest System land. (Section 8304) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. (Section 8206) 

The Conference substitute includes language that allows for 

the Secretary to enter into cooperative agreements with state foresters nationwide to engage in management activity, otherwise 

known as Good Neighbor Authority. This practice allows for better 

coordination between federal and state officials in promoting 

healthy state forests. The Managers note the successful implementation of this program in Colorado and Utah and recognize the benefit to extending this authority nationwide. The Managers expect 

the Secretary to seek projects which utilize the full range of contracting tools available to accomplish the objectives of Good Neighbor Authority. 

SUBTITLE E—MISCELLANEOUS PROVISIONS

(15) Forest service participation in ACES program 

The House bill authorizes the Secretary to use funds from conservation-related programs on National Forest lands to utilize the 

Agriculture Conservation Experienced Services Program to provide 

technical service on conservation-related programs. (Section 8402) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8302) 

The Managers are concerned about the increasing number of 

retirements among Forest Service employees in recent years and 

the loss of institutional knowledge as a result. The Conference substitute includes language to allow the Forest Service to hire retired 

employees under the Agriculture Conservation Experienced ServVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00518 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ices (ACES) program. The Forest Service will continue to see a 

large number of retirements in the coming years. Allowing the Forest Service to participate in the ACES program allows the agency 

to retain the institutional knowledge acquired through the years by 

these senior employees. 

(16) Green Science and Technology Transfer Research under Forest 

and Rangeland Renewable Resources Research Act of 1978 

The House bill includes as a priority science and technology 

transfer through the Forest Products Lab to demonstrate the beneficial characteristics of wood as a green building material. It requires the Secretary to submit an annual report describing the research conducted in furtherance of the priority added above, the 

number of buildings the Forest Service has built with wood and the 

investments made by the Forest Service in green building wood 

promotion. (Section 8403) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(17) Extension of stewardship contract authority 

The House bill authorizes designation by description and designation by prescription as valid methods of designation for timber 

sales. Both methods may be supervised by use of post-harvest 

cruise, sample weight scaling or other methods. (Section 8404) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8303) 

(18) Reimbursement of fire funds 

The House bill requires that the State seeking reimbursement 

and the State providing reimbursement must each have a mutual 

assistance agreement with the Forest Service or an agency of the 

Department of the Interior. (Section 8405) 

The Senate amendment requires that the State seeking reimbursement and the State providing reimbursement must each have 

a mutual assistance agreement with the Forest Service or another 

Federal agency. (Section 8303) 

The Conference substitute adopts the Senate provision. (Section 8304) 

(19) Ability of National Forest System lands to meet needs of local 

wood producing facilities for raw materials 

The House bill requires the Secretary to submit to Congress a 

report regarding raw material needs of wood producing facilities 

within the boundaries of each National Forest System unit or within 100 miles of such boundaries and the ability of each unit to meet 

the needs of such facilities, including information on the volume of 

timber available, sold and harvested from each unit. (Section 8406) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

Although the Managers did not adopt the House provision directing the Secretary to issue a report to Congress on its ability to 

provide raw material to facilities within 100 miles of a national forest, the Managers enourage the Forest Service to engage with the 


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sawmill owners who utilize material harvested from National Forest System land. The Managers are concerned that certain regions 

within the National Forest System are not meeting the timber production target laid out in their management plans. The Managers 

note that many wood producing facilities are dependent on material produced on National Forest land and that all 10 regions of the 

National Forest System should strive to meet their target where 

appropriate. 

(20) Report on the National Forest System roads 

The House bill requires the Secretary to submit to Congress a 

report regarding National Forest System roads and trails. (Section 

8407) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

Although the Managers did not adopt the House provision 

which required the Secretary to issue a report to Congress on the 

state of the National Forest System roads, the Managers believe 

this is an important issue and encourage the Forest Service to 

prioritize the maintenance of currently used roads. 

(21) Forest Service Large Airtanker and Aerial Asset Firefighting 

Recapitalization Pilot Program 

The House bill authorizes the Secretary to establish a large 

airtanker and aerial asset lease program. (Section 8408) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8305) 

The 2012 and 2013 wildfire seasons have been some of the 

worst on record. The devastating wildfires are important reminders 

that the Forest Service’s current available large airtanker fleet is 

vastly inadequate to meet our expected firefighting needs now or 

in the coming years. The U.S. Forest Service’s Large Airtanker 

Modernization Strategy, released in 2012, recommended a ‘‘next 

generation’’ aerial solution and specifically stated that ‘‘[airtankers] 

are important to the Federal, state, and local wild land firefighting 

missions of protecting communities and natural resources from 

wildfires and to successfully managing wildfires in this country.’’ 

The report also stated that ‘‘the current fleet of large airtankers is 

old, with an average of age of more than 50 years. . . With rising 

age, the cost of maintaining large airtankers is rapidly increasing, 

as are the risks associated with using them.’’ Support for implementing the modernization strategy is urgently needed before the 

Forest Service is unable to adequately respond to future fires. The 

Managers strongly support the establishment of a large airtanker 

and aerial asset lease program to support the Forest Service’s vital 

modernization strategy for its firefighting large airtanker fleet. 

(22) Land conveyance, Jefferson National Forest in Wise County, 

Virginia 

The House bill authorizes the Secretary to convey upon payment all right, title and interest of the U.S. in and to a parcel of 

National Forest System land in the Jefferson National Forest in 

Wise County, Virginia. (Section 8409) 


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The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

8306) 

(23) Categorical exclusion for forest projects in response to emergencies 

The House bill states that any forest project carried out to 

clean up or restore damaged National Forest System land during 

a two-year period following the date of a presidential disaster or 

emergency declaration shall be categorically excluded from an environmental assessment or environmental impact statement. (Section 

8410) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

TITLE IX—ENERGY

(1) Definitions 

The House bill modifies the definition of ‘‘biobased product’’ to 

explicitly include forestry materials and forest products that meet 

biobased content requirements, notwithstanding the market share 

the product holds, the age of the product, or whether the market 

for the product is new or emerging. (Section 9001(1)) The bill also 

defines ‘‘forest product’’ to ensure that mature forest products are 

treated in the same manner as other biobased products. (Section 

9001(3)) Additionally, the bill defines ‘‘renewable energy system’’ to 

limit the eligible projects in the Rural Energy for America Program. (Section 9001(4)) 

The Senate amendment defines ‘‘renewable chemical’’ as a 

monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass. (Section 9002(3)) 

The Conference substitute adopts the House provision with an 

amendment. The amendment includes the Senate definition of ‘‘renewable chemical’’. The modification of the definition of ‘‘biobased 

product’’ is moved to Section 9002. (Section 9001) 

(2) Biobased Markets 

The House bill extends current law through FY2018. No mandatory funding is authorized. The bill authorizes to be appropriated 

$2 million annually for FY2014–FY2018. (Section 9002(h)) 

The Senate amendment establishes a targeted biobased-only 

procurement requirement for federal agencies. The amendment 

limits reporting on the availability, relative price, performance and 

environmental and public health benefits of biobased materials 

subject to the availability of data. It adds reporting requirements 

of quantities and types of biobased products purchased by procuring federal agencies and a focus on biobased content requirements (explicitly including forest products). The amendment mandates (within one year of enactment) designation of intermediate 

ingredients or feedstocks and assembled and finished biobased 

products according to guidelines. (Section 9002(a)(1)) Additionally, 

the amendment adds auditing and compliance activities to ensure 

proper use of biobased labeling. (Section 9002(a)(2)) It adds an outreach, education, and promotion component (with annual reports) 


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to increase awareness of biobased products. (Section 9002(a)(4)) It 

also mandates a study (and report) by USDA to assess the economic impact of the biobased product industry, due 180 days after 

enactment. It encourages coordination, review and approval (with 

appropriate technical assistance) of forest-related biobased products. (Section 9002(a)(5)) The amendment also authorizes mandatory funding of $3 million annually for FY2014–FY2018. Lastly, it 

authorizes to be appropriated $2 million annually for FY2014– 

FY2018. (Section 9002(a)(7)) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment removes the outreach, education and 

promotion component and provides that the economic impact study 

be completed within one year of enactment. (Section 9002) 

The Conference substitute reauthorizes the BioPreferred Program and the Federal Government Procurement Preference Program with modifications to include reporting of biobased purchases 

by the federal agencies, as well as providing for auditing and enforcement of biobased purchasing activities. The Conference substitute also clarifies that all forest products are eligible for inclusion in the BioPreferred Program and the Federal Government Procurement Program if they meet biobased content requirements and 

the innovation standards for the program as outlined in Section 

9002(a)(1)(B)(i)(III)(vi). Finally, the Conference substitute provides 

$3 million in mandatory funding each fiscal year. 

The Managers are cognizant of concerns that the USDA 

Biobased Markets Program has excluded most forest products. This 

exclusion, created in USDA rulemaking, has effectively made many 

forest products ineligible for the program. Therefore, Sections 

9001(2) and 9002(a)(1)(B)(i)(III) are intended to clarify that all forest products, regardless of the market share the product holds, the 

age of the product, or whether the product’s market is new or 

emerging, are eligible for the procurement and labeling program as 

long as the product meets biobased content requirements and the 

innovation standards for the program as outlined in Section 

9002(a)(1)(B)(i)(III). It is the Managers’ intention that all products 

in the program use innovative approaches in the growing, harvesting, sourcing, procuring, processing, manufacturing, or application of the biobased product. 

The Managers believe that most forest products, including 

products with recovered fiber content, apply innovative approaches 

in the growing, harvesting, sourcing, procuring, and manufacturing 

of the product. Innovative approaches for forest products include, 

but are not limited to, sourcing fiber from non-controversial, responsible or certified sources identified in the ASTM 7612–10 

standard; using an environmental product declaration that meets 

the ISO 14025:2006 standard; improving wood, recovered fiber and 

virgin fiber processing technologies; or modifying manufacturing facilities to make them more energy efficient and enhance their ability to use renewable energy sources. The Managers also believe innovative approaches should capture any innovation in the application of the forest product. Such innovative approaches should include the use of raw forestry materials, processed forestry materials, as well as recovered fiber. The Managers direct USDA to 

work through the USDA Forest Products Laboratory to provide 


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technical assistance as necessary to forest product applicants to ensure that forest products are included in the program. 

Finally, the Managers recognize the tremendous opportunity 

that exists for Biobased products to be used in food packaging and 

the food service industry. Products made from wheat straw can 

play an important role in this effort, and the Managers expect 

USDA to continue to work with companies bringing these types of 

products to market under the BioPreferred label. 

(3) Biorefinery Assistance 

The House bill eliminates grant funding to ensure that program funds are spent more efficiently through loan guarantees. 

(Section 9003(a)) Additionally, no mandatory funding is authorized. 

The bill authorizes to be appropriated $75 million annually for 

FY2014–FY2018. (Section 9003(b)) 

The Senate amendment renames the program as the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. It extends and expands the program to 

include renewable chemical and biobased product manufacturing 

(defined as development, construction, and retrofitting of technologically new commercial-scale processing and manufacturing 

equipment and required facilities used to convert renewable chemicals and other biobased outputs into commercial-scale end products). It extends grant and loan guarantee availability to the development and construction of renewable chemical and biobased product manufacturing facilities. (Section 9003(a)) The amendment authorizes mandatory funding of $100 million for FY2014 and $58 

million each for FY2015–FY2016, but not more than $25 million of 

FY2014–FY2015 may be used to promote biobased product manufacturing. It authorizes to be appropriated $150 million annually 

for FY2014–FY2018. (Section 9003(b)) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment eliminates grant funding, directs the 

Secretary to ensure that there is diversity in the types of projects 

approved, and caps the amount of funds used for loan guarantees 

to promote biobased product manufacturing at 15% of the total 

available mandatory funds. Mandatory funding of $100,000,000 is 

provided for FY2014, $50,000,000 for each of FY2015 and FY2016 

and an authorization of $75,000,000 is provided for each of fiscal 

years 2014 through 2018. (Section 9003) 

(4) Repowering Assistance Program 

The House bill extends current law through FY2018. Additionally, no mandatory funding is authorized. It authorizes to be appropriated $10 million annually for FY2014–FY2018. (Section 9004) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment provides mandatory funding of 

$12,000,000 in fiscal year 2014, available until expended. (Section 

9004) 

(5) Bioenergy Program for Advanced Biofuels 

The House bill extends the program through FY2018. Additionally, no mandatory funding is authorized. The bill authorizes to be 


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appropriated $50 million annually for FY2014–FY2018. (Section 

9005) 

The Senate amendment extends the program through FY2018. 

Additionally, no mandatory funding is authorized. It authorizes to 

be appropriated $20 million annually for FY2014–FY2018. (Section 

9004) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides mandatory funding of 

$15,000,000 for each of fiscal years 2014 through 2018. (Section 

9005) 

(6) Biodiesel Fuel Education Program 

The House bill extends the Biodiesel Fuel Education Program 

through FY2018. Additionally, no mandatory funding is authorized. 

The bill authorizes to be appropriated $2 million annually for 

FY2014–FY2018. 

The Senate amendment extends the Biodiesel Fuel Education 

Program through FY2018. The amendment authorizes mandatory 

funding of $1 million annually for FY2014–FY2018. It authorizes 

to be appropriated $1 million annually for FY2014–FY2018. 

The Conference substitute adopts the Senate provision. (Section 9006) 

(7) Rural Energy for America Program 

The House bill creates a three-tiered application process for 

loan guarantees and grants. (Section 9007(a)) Additionally, no 

mandatory funding is authorized. The bill authorizes to be appropriated $45 million annually for FY 2014–FY2018. (Section 

9007(b)) 

The Senate amendment creates a three-tiered application process with language similar to the House provision. The amendment 

adds a council (as defined in section 1528 of the Agriculture and 

Food Act of 1981) as an eligible entity, and adds ‘‘such as for agricultural and associated residential purposes’’ to clarify the type of 

renewable energy systems that may be purchased. It repeals the 

use of REAP funds for feasibility studies and limits grants to the 

lesser of $500,000 or 25% of the cost of the RES or EEI activity. 

(Section 9006(a)) The amendment authorizes mandatory funding of 

$68.2 million annually for FY2014–FY2018. It authorizes to be appropriated $20 million annually for FY2014–FY2018. (Section 

9006(b)) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment strikes the provision clarifying the 

type of renewable energy systems that may be purchased and 

strikes the $500,000 cap on grants for renewable energy systems 

and energy efficiency improvements. Mandatory funding of 

$50,000,000 is provided for fiscal year 2014 and each fiscal year 

thereafter. (Section 9007) 

The Managers encourage the Department to continue to support renewable and energy efficiency projects to help farmers and 

rural small businesses cut costs. The Managers also encourage the 

Department to consider and fund a diverse range of projects. 

The Managers clarify that the intent of the program has been 

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ergy, rather than energy delivery. Therefore, renewable fuel blender pumps or other mechanisms to dispense fuel are not a use of the 

program consistent with this purpose. 

(8) Biomass Research and Development 

The House bill extends BRDI through FY2018. Additionally, no 

mandatory funding is authorized. The bill authorizes to be appropriated $20 million annually for FY2014–FY2018. (Section 9008) 

The Senate amendment extends BRDI through FY2018. The amendment authorizes mandatory funding of $26 million annually 

for FY2014–FY2018. It authorizes to be appropriated $30 million 

annually for FY2014–FY2018. (Section 9007) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides mandatory funding of 

$3,000,000 for each of fiscal years 2014 through 2017 and discretionary funding of $20,000,000 for each of fiscal years 2014 through 

2018. (Section 9008) 

The purpose of the Biomass Research and Development Initiative (BRDI) is to promote research and development regarding the 

production of biofuels and biobased products. The Managers encourage the Department to support research, development and 

demonstration efforts focused on reducing the costs of producing 

sugars from cellulosic biomass. The Managers also encourage the 

Department to prioritize and focus investment in projects that use 

pre-commercialization processes and methods to advance product 

development. 

The Managers are aware of a number of advanced manufacturing facilities around the country that can play an active part in 

the development phase of biofuels and biobased products and urge 

the Secretary to encourage their involvement in BRDI projects. 

(9) Biomass Crop Assistance Program 

The House bill eliminates collection, harvest, storage, and 

transportation payments. The bill adds ‘‘existing project areas that 

have received funding’’ to the factors the Secretary shall consider 

when selecting project areas. Additionally, no mandatory funding is 

authorized. The bill authorizes to be appropriated $75 million annually for FY2014–FY2018. (Section 9010) 

The Senate amendment rewrites Sec. 9011 of Farm Security 

and Rural Investment Act of 2002 including the following revisions: 

changes enrolled land eligibility; includes residue from crops receiving Title I payments as eligible material, but extends exclusion to 

any whole grain from a Title I crop, as well as bagasse and algae. 

One-time establishment payments are limited to no more than 50% 

of cost of establishment, not to exceed $500 per acre ($750/acre for 

socially disadvantaged farmers or ranchers). CHST matching payments may not exceed $20 per dry ton but are available for a four 

year period. Not later than four years after enactment, USDA shall 

submit a report on best practice data and information gathered 

from participants. It authorizes mandatory funding of $38.6 million 

annually for FY2014–FY2018. Not less than 10% or more than 50% 

of funding may be used for CHST. (Section 9011) 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment provides that CHST payments are 


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available for a period of two years and provides that funding under 

the subsection shall be available for technical assistance. The 

amendment provides mandatory funding of $25,000,000 for each of 

fiscal years 2014 through 2018. (Section 9010) 

(10) Forest Biomass for Energy 

The Senate amendment repeals the program. (Section 9010) 

The House bill has no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 9011) 

(11) Community Wood Energy Program 

The House bill extends the Community Wood Energy Program 

through FY2018. The bill authorizes to be appropriated $2 million 

annually for FY2014–FY2018. (Section 9011) 

The Senate amendment defines ‘‘Biomass Consumer Cooperative’’. The amendment authorizes grants of up to $50,000 to be 

made to establish or expand biomass consumer cooperatives that 

will provide consumers with services or discounts relating to the 

purchase of biomass heating systems or products (including their 

delivery and storage). Any biomass consumer cooperative that receives a grant must match at least the equivalent of 50% of the 

funds toward the establishment or expansion of a biomass consumer cooperative. (Section 9011(a)–(c)) It authorizes to be appropriated $5 million annually for FY2014–FY2018. (Section 9011(d)) 

The Conference substitute adopts the Senate provision. (Section 9012) 

(12) Biofuels Infrastructure Study 

The House bill repeals the study. (Section 9012) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision. (Section 

9013) 

(13) Renewable Fertilizer Study 

The House bill repeals the study. (Section 9013) 

The Senate amendment repeals the study. (Section 9012) 

The Conference substitute adopts the House provision. (Section 

9014) 

(14) Energy Efficiency Report for USDA Facilities 

The House bill requires USDA to submit a report to the House 

and Senate Agriculture Committees on energy use and energy efficiency projects at USDA facilities within 180 days. 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision (Section 

9015) 

TITLE X—HORTICULTURE

(1) Farmers’ Market and Local Food Promotion Program 

The House bill amends section 6 of the Farmer-to-Consumer 

Direct Marketing Act of 1976 to authorize local food promotion and 

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gram purposes are amended to include the increase of domestic 

consumption and consumer access to locally and regionally produced agricultural products. The purposes are further amended to 

include local and regional food business enterprises that process, 

distribute, aggregate, and store locally or regionally produced food 

products. Eligible entities receiving a grant from this program 

must provide a 25 percent match and may not use the grant towards a building or structure. The section authorizes $30,000,000 

of Commodity Credit Corporation funds for fiscal years 2014 

through 2018 and $10,000,000 in appropriated funds for fiscal 

years 2014 through 2018. It requires 50 percent of the funds made 

available to carry out the program in a fiscal year be used towards 

domestic farmers’ markets, roadside stands, community-supported 

agriculture programs, agritourism activities and other direct producer-to-consumer market opportunities and the other 50 percent 

to be used towards local and regional food business enterprises. 

The section further limits administrative expenses to not more 

than 3 percent. (Section 10003) 

The Senate amendment amends section 6 of the Farmer-toConsumer Direct marketing Act of 1976 is amended to authorize 

local food promotion and local food capacity development. The program purposes are amended to include the increase of domestic 

consumption and consumer access to locally and regionally produced agricultural products. This purpose is authorized to be accomplished by developing, improving, expanding and providing outreach, training and technical assistance. Program purposes are further amended to include local and regional food enterprises that 

are not direct producer-to-consumer markets but process, distribute, aggregate, store and market locally or regionally produced 

food products. The section authorizes $20,000,000 of Commodity 

Credit Corporation funds for fiscal years 2014 through 2018 and 

$20,000,000 of appropriated funds for fiscal years 2014 through 

2018. It limits administrative expenses to not more than 10 percent. The section further authorizes priorities for grant applications 

that benefit underserved communities, develop market opportunities for small and mid-sized farm and ranch operations and include 

a strategic plan to maximize the use of fund to build capacity for 

local and regional food systems in a community. (Section 10003) 

The Conference substitute adopts the House provision with 

amendment. The amendment includes the Senate language on the 

purposes of the program as well as food enterprises that are not 

direct-to-consumer markets. The amendment sets the limitation of 

administrative expenses at 4 percent. It further includes the Senate language on giving priority to applications that include projects 

that benefit underserved communities. (Section 10003) 

The Managers do not intend for this language to restrict resources for other key uses such as cold storage or equipment including mobile processing units or shelf stable packing activities. 

(2) Organic Agriculture 

The House bill reauthorizes the organic production and market 

data initiative authorization of appropriations for fiscal years 2014 

through 2018, amends the Organic Foods Production Act to authorize the Secretary to modernize database and technology systems of 


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the National Organic Program (NOP) and authorizes appropriations of $11,000,000 for fiscal years 2014 through 2018 for the 

same. The House bill also repeals the National Organic Certification Cost-Share Program. In addition, section 501 of the Federal 

Agriculture Improvement and Reform Act of 1996 is amended to 

exempt certified organic products from promotion order assessments regardless of whether a person also handles conventional 

products and authorize an organic commodity promotion order and 

section 513(1) of the Commodity Promotion, Research, and Information Act of 1996 is amended to add organic products as a class 

to the definition of ‘‘agricultural commodity’’. (Section 10004) 

The Senate amendment reauthorizes the organic production 

and market data initiative authorization of appropriations for fiscal 

years 2014 through 2018, and authorizes $5,000,000 in mandatory 

monies to remain available until expended and an annual report to 

Congress regarding implementation of the program and additional 

data needs as well as a description of how data collection agencies 

are coordinating with data user agencies to ensure data collected 

can be used by data users, including RMA to offer price elections 

for all organic crops. The amendment also authorizes the Secretary 

to modernize database and technology systems of the NOP, provides an authorization of appropriations of $15,000,000 for fiscal 

years 2014 through 2018 as well as $5,000,000 in mandatory monies towards modernization. Section 11034(b)(1)(A) of Senate 

Amendment requires 50 percent of the funds to go to organic certification. In addition, section 501 of the Federal Agriculture Improvement and Reform Act of 1996 is amended to exempt certified 

organic products from promotion order assessments regardless of 

whether a person also handles conventional products and authorize 

an organic commodity promotion order and section 513(1) of the 

Commodity Promotion, Research, and Information Act of 1996 is 

amended to add organic products as a class to the definition of ‘‘agricultural commodity’’. (Section 10005) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes an Organic Production 

and Market Data Initiative annual report to Congress, including a 

description how data collection and user agencies are coordinating 

to ensure data can be utilized, and reauthorizes $5,000,000 of Commodity Credit Corporation funds for this initiative and the authorization of appropriations through fiscal year 2018. The amendment 

authorizes annual appropriations of $15,000,000 for fiscal years 

2014 through 2018 for the National Organic Program and 

$5,000,000 of Commodity Credit Corporation funds for modernization and technology upgrades. The National Organic Certification 

Cost Share Program is reauthorized with $11,500,000 of Commodity Credit Corporation funds for each fiscal year 2014 through 

2018, to remain available until expended. The amendment also authorizes an exemption of certified organic products from promotion 

order assessments and an organic commodity promotion order. 

(Section 10004) 

In the Conference substitute, research and promotion programs 

or ‘‘checkoffs’’ occupy a unique place within the broad range of programs overseen by USDA’s Agricultural Marketing Service (AMS). 

One distinctive attribute of these programs is their structure, 


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under which the message of the promotional campaign undertaken 

is effectively controlled by the Federal Government itself. Johanns 

v. Livestock Marketing Ass’n, 544 U.S. 550 (2005). 

The organic checkoff program as agreed to by the Managers 

would differ from existing checkoffs, which are specific to a particular commodity. For the first time, a checkoff program is not 

solely commodity-specific, but could be established on the basis of 

a specific set of production and processing practices. 

The Commodity Promotion, Research and Information Act of 

1996, under which this provision is established, prohibits any advertising that may be disparaging to another commodity. As with 

any time a new checkoff is formed, a new potential for disparagement of all types of products arises. As with all checkoff programs, 

the Managers remain concerned about the potential for disparagement of other commodities, production and processing methods for 

the same commodity, competitors, processes, and products under 

this new authority. 

Should an organic checkoff program be developed and approved, the Managers strongly encourage USDA AMS to review 

and revise, as appropriate, the November 4, 2010, ‘‘Guidelines for 

AMS Oversight of Commodity Research and Promotion Programs’’ 

to ensure these guidelines address potential disparagement in both 

commodity and process based checkoff programs. 

(3) Organic Enforcement 

The House bill authorizes recordkeeping requirements and investigative powers to the Secretary as well as suspension and revocation of an organic certification of a producer, handler or the accreditation of a certifying agent. (Section 10005) 

The Senate amendment authorizes recordkeeping requirements 

and investigative powers to the Secretary as well as the stop sale 

of an agricultural product and revocation of an organic certification 

of a producer, handler or the accreditation of a certifying agent. 

(Section 10005) 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes investigative powers to 

the Secretary and recordkeeping requirements for persons who sell, 

label or represent agricultural products as produced or handled 

using organic methods. Refusal to provide accurate information is 

made unlawful and a violation of the Organic Foods Production 

Act. Information shall be made public in a manner that ensures 

confidentiality. (Section 10005) 

(4) Food Safety Education Initiatives 

The House bill amends Section 10105 of the Food, Conservation and Energy Act of 2008 to authorize the education of farm 

workers and education regarding additional food safety practices 

and contamination. It reauthorizes appropriations for fiscal years 

through 2018. (Section 10006) 

The Senate amendment reauthorizes appropriations for fiscal 

years through 2018. (Section 10006) 

The Conference substitute adopts the Senate provision. 

(Section10006) 


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(5) Specialty Crop Block Grants 

The House bill reauthorizes section 101 of the Specialty Crops 

Competitiveness Act of 2004 through fiscal year 2018. The section 

provides that the amount of grants to the States be based on value 

production and acreage. It further amends eligibility requirements 

to include an application that contains an assurance that any grant 

funds for equipment or capital-related research costs will be supplemented by State funds at not less than 50 percent during the 

fiscal year and completely replaced by State funds after the fiscal 

year is over. The House section requires the Secretary to issue 

guidance for the purpose of making grants for projects involving 

food safety, plant pests and disease, research and crop-specific 

projects. It makes certain administrative requirements including 

an authorization of multistate projects. Of the funds of the Commodity Credit Corporation, $72,500,000 for fiscal years 2014 

through 2017 and $85,000,000 for fiscal year 2018 is authorized. 

(Section 10007) 

The Senate amendment is similar to the House language. However, it requires the Secretary to issue guidance for the purpose of 

making grants for projects involving food safety, plant pests and 

disease and crop-specific projects. Of the funds of the Commodity 

Credit Corporation, $70,000,000 for fiscal year 2014 and each fiscal 

year thereafter is authorized. (Section 10008) 

The Conference substitute adopts the House provision with 

amendment. The amendment eliminates the House language on 

the State supplement for equipment or capital-related research 

costs. The amendment further established the mandatory funding 

level for fiscal year 2018 and each of the fiscal years thereafter. 

(Section 10010) 

The Managers recognize the difficulty in coordinating and 

funding multi-state projects within the block grant program, and 

the Managers expect the USDA to issue guidance and work with 

states in making grants available for such projects. These multistate projects may include food safety, research, plant pest and disease, and crop specific projects. These projects have the ability to 

link growers across state lines and promote much needed collaborative research. The Managers also encourage the Department to 

work with states to allow for funding for priority research objectives that are supported by the states and that comply with the 

purposes of the Specialty Crops Competitiveness Act. 

The Managers believe that many specialty crop growers benefit 

from the programs dedicated to the production and marketing of 

specialty crops and products derived from them. Throughout this 

legislation, the Managers have sought to bolster support for the 

specialty crop sector, but recognize that some specialty crop products continue to have production and marketing concerns outside 

of the policies specifically addressed in this legislation. One such 

specialty crop product is olive oil. In addition to the challenges associated with the production of an agriculture commodity, olive 

growers and olive oil processors face additional concerns related to 

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Regarding standards, the International Olive Council, an intergovernmental organization under the auspices of the United Nations, has traditionally set standards for olive oil throughout the 

world. USDA standards for olive oil closely match those of the IOC, 

even though the United States is not an IOC member. 

However, testing standards continue to be an area of dispute 

due to differences in naturally occurring compounds, rapid chemical decomposition in olive oil, challenges related to sensory testing, 

and disagreement over what constitutes adulteration. Because of 

the difficulty in establishing an enforceable national standard of 

identity, there is potential for consumer confusion in cases where 

blending of oils and lesser quality oils into extra virgin olive oil is 

alleged to have occurred. In fact, Connecticut, New York, and Oregon have recently enacted olive oil grade standards to address 

consumer concerns. 

A recent U.S. International Trade Commission report, ‘‘Olive 

Oil: Conditions of Competition between U.S. and Major Foreign 

Supplier Industries (Investigation No. 332–537),’’ issued September 

12, 2013, at the behest of the U.S. House of Representatives Committee on Ways and Means documents some of these concerns. 

The Commission’s staff interviewed U.S. olive oil importers, 

European olive oil producers and exporters, U.S. olive growers and 

processors, government officials and others involved in the world 

olive oil industry. In the U.S. the total value of domestic and imported olive oil exceeds $1 billion and at the retail level the value 

is in excess of $5 billion. The report provided evidence of different 

olive oil standards in the U.S. and in foreign markets, which adds 

to the confusion. 

Highlights from the report point indicate that: 

Current international standards for extra virgin olive oil 

allow a wide range of oil qualities to be marketed as extra 

virgin. In addition, the standards are widely unenforced. 

Mandatory testing with penalties for noncompliance exists 

only in Canada and the European Union. However, testing 

in the EU is only mandatory for a very small share of production (0.1 percent). Broad and unforced standards lead 

to adulterated and mislabeled products, weakening the 

competitiveness of high-quality producers, such as those in 

the United States, who try to differentiate their product 

based on quality. 

Olive oil consumption has risen due to a recent focus on the 

benefits of a healthy diet, and as a result, the olive oil industry has 

great potential for our nation’s farmers. However, barriers remain 

for domestic production. Many consumers also make purchasing decisions based on price. The Managers acknowledge that additional 

testing procedures could have an effect on olive oil importers and 

consumers. 

The Managers urge the U.S. Department of Agriculture, U.S. 

Trade Representative and the U.S. Food and Drug Administration 

to study the U.S. International Trade Commission report and take 

action to remove the obstacles that are preventing the U.S. olive 

oil industry from reaching its potential. The Managers encourage 

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keting order for olive oil would effectively address concerns, benefit 

the U.S. consumer, and protect domestic growers and importers. 

The Managers expect the Secretary to enforce the regulations 

contained in 7 CFR Part 46.44, Good Delivery Standards for Lettuce. The Managers are particularly concerned about contracts and 

invoices that use disclaimers to exempt product from the condition 

standards for damages due to bruising and discoloration following 

bruising. The Managers expect the Secretary to investigate any 

contracts or invoices that violate standards and leave perishable 

product receivers no recourse for damages beyond the Good Delivery Standards for Lettuce. 

Another important issue to the specialty crop industry is the 

challenges surrounding a federal standard of identity for honey. 

The conference substitute requires the Secretary to consult 

with honey industry stakeholders, including the American Honey 

Producers Association, the American Beekeeping Federation, the 

National Honey Packers and Dealers Association, the Sioux Honey 

Association, and the Western States Honey Packers and Dealers 

Association, on a report describing the contents of a new federal 

standard of identity for honey. The honey industry is currently 

faced with a number of major challenges, including the dilution of 

honey with increased quantities of other substances as well as the 

addition or substitution of substances in order to mask dilution. 

The subsection requires that this report be submitted to the Commissioner of the Food and Drug Administration (FDA) within 180 

days of enactment. 

A citizens’ petition was filed with the FDA in March 2006, 

which represents the honey industry’s previous effort to develop a 

federal honey standard of identity. Since 2006, a number of states 

have enacted differing honey standards raising concerns about inconsistencies, the flow of commerce within the honey industry, confusion in the market place and unanticipated legal challenges. The 

honey industry is now undertaking efforts to develop a consensus 

federal standard of identity for consideration in the Secretary’s report to the FDA. 

(6) Department of Agriculture Consultation Regarding Enforcement 

of Certain Labor Law Provisions 

The House bill Requires the Secretary of Agriculture to consult 

with the Secretary of Labor regarding the restraining of shipments 

of agriculture commodities or the confiscation of such commodities 

by the Department of Labor for actual or suspected labor law violations to consider the perishable nature of such commodities, impact 

on economic viability of farming operations and the competitiveness 

of specialty crops through the Specialty Crop Block Grant Program. 

(Section 10008) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment requires the consultation between the 

Secretaries of Agriculture and Labor regarding the restraining of 

shipments or confiscation of agriculture commodities by the DoL for 

labor law violations as well as a report to Congress describing the 

number of instances that the DoL has contacted a purchaser of perishable agricultural commodities to notify them of an investigation 


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or pending enforcement action against a producer from whom the 

purchaser bought such commodities. (Sec. 10011) 

(7) Bulk Shipment of Apples to Canada 

The House bill amends Section 4 of the Export Apple Act to 

allow apples shipped to Canada in bulk bins without complying 

with the Act. It requires the Secretary to issue regulations to carry 

out this provision. (Section 10010) 

The Senate amendment provides that the Secretary of Agriculture has no authority to inspect apples in bulk bins prior to export in Canada. (Section 10011) 

The Conference substitute adopts the House provision with 

amendment. The amendment clarifies that the section applies to 

apples shipped in any bulk container and is not limited to bulk 

bins. (Section 10009) 

(8) Consolidation of Plant Pest and Disease Management and Disaster Prevention Programs 

The House bill relocates legislative language authorizing the 

National Clean Plant Network to the Plant Protection Act, authorizes funds of the Commodity Credit Corporation, $62,500,000 for 

fiscal years 2014 through 2017 and $75,000,000 for fiscal year 

2018, including $5,000,000 of those funds for the Clean Plant Network, and provides technical assistance shall not be considered an 

allotment or fund transfer from the CCC for purposes of the limit 

on expenditures for technical assistance. (Section 10011) 

The Senate amendment provides relocates legislative language 

authorizing the National Clean Plant Network, authorizes funds of 

the Commodity Credit Corporation, $60,000,000 for fiscal years 

2014 through 2017 and $65,000,000 for fiscal year 2018, and provides technical assistance shall not be considered an allotment or 

fund transfer from the CCC for purposes of the limit on expenditures for technical assistance. (Section 10007) 

The Conference substitute adopts the House provision with an 

amendment. The amendment relocates the authorization of the National Clean Plant Network, authorizes $62,500,000 for fiscal years 

2014 through 2017 and $75,000,000 for fiscal year 2018 and each 

fiscal year thereafter of Commodity Credit Corporation funds for 

Plant Pest and Disease Management and Disaster Prevention, including $5,000,000 of such funds for the National Clean Plant Network, and limits indirect costs for cooperative agreements. The 

amendment also prohibits CCC funds used for technical assistance 

under this title to be considered an allotment or fund transfer from 

the CCC for the purpose of the limit on expenditures for technical 

assistance. (Sections 10007 and 10017) 

The Managers have combined this program with the Pest and 

Disease program and increased baseline funding for both to ensure 

the continued availability of funding for the important work of the 

National Clean Plant Network. The Conference substitute sets a 

funding floor of $5 million per year to the National Clean Plant 

Networks but further encourages the Secretary to provide from 

within the overall allocation under this section additional funds if 

deemed necessary. These funds may be provided to the Network 

without regard to the process for distributing funds to address the 


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other provisions of Section 420 of the Plant Protection Act. The 

Managers recognize that Disease Management and Disaster Prevention Programs as previously authorized in the Food, Conservation, and Energy Act of 2008 includes imminent pressing and persistent threats from pests and disease, such as Citrus Greening, to 

agriculture production. 

The Managers recognize the importance of the Federal government, specifically the USDA, developing and maintaining the highest technological capability of identifying plant pests and invasive 

species. Further, the Managers believe that the advanced technological capabilities acquired through development of plant pest and 

disease detection technologies should facilitate the development of 

a coordinated, interagency response plan for the federal government to effectively mitigate plant pests and disease. The Managers 

encourage USDA to take the appropriate steps to facilitate information and technology sharing with other appropriate agencies of 

the Federal government involved in managing invasive pests such 

as Department of the Interior, Environmental Protection Agency, 

U.S. Customs and Border Protection, U.S. Coast Guard and the 

U.S. Army Corps of Engineers. 

(9) Modification Cancellation, or Suspension on Basis of a Biological Opinion 

The House bill provides that except in the case of a voluntary 

request from a registrant under section 3 of the Federal Insecticide, 

Fungicide, and Rodenticide Act (7 U.S.C. 136a), a registration may 

be modified, canceled or suspended on the basis of the implementation of a Biological Opinion issued by the NMFS or the USFWS 

prior to the completion of the National Academy of Sciences study 

commissioned by the Administrator of the EPA or Jan. 1, 2015, 

whichever is earlier, only if the action is taken pursuant to section 

6 of the Act and the Biological Opinion complies with the recommendations contained in the study. The study shall include at 

minimum: (1) a formal, independent, and external peer review, consistent with OMB policies of each Biological Opinion, (2) an assessment of economic impacts of measures or alternatives recommended in each Biological Opinion, (3) an examination of specific scientific and procedural questions and issues pertaining to 

economic feasibility contained in a June 23, 2011 letter sent to the 

Administrator and other Federal officials from Members of Congress. (Section 10012) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes two reports to Congress 

that describe approaches and actions taken by the EPA, the US 

Fish and Wildlife Service, and the National Marine Fisheries Service to implement recommendations of the report, ‘‘Assessing Risks 

to Endangered and Threatened Species from Pesticides’’, to ensure 

public participation and transparency during such implementation 

and to minimize delays in integrating applicable pesticide registration and registration review requirements and the species and 

habitat protection processes described in sections 7 and 10 of the 

Endangered Species Act (ESA). The final report to Congress shall 

include an evaluation to establish that approaches utilize the best 


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available science, reasonable and prudent alternatives (RPA) are 

technologically and economically feasible, reasonable and prudent 

measures (RPM) are necessary and appropriate and the agencies 

ensure public participation and transparency in the development of 

RPA’s and RPM’s. The amendment also authorizes an update of a 

study to identify reasonable and prudent measures to implement 

the endangered species pesticides labeling program which would 

comply with the ESA and allow the continued production of food 

and fiber and the report to Congress regarding the results of the 

study. (Section 10013) 

Overall Purpose of Provision 

This provision addresses the activities of the Environmental 

Protection Agency (EPA) and the Fish and Wildlife Service and National Marine Fisheries Service (collectively, the Services) in addressing the integration of the consultation requirements of the Endangered Species Act (ESA) and the pesticides registration requirements of the Federal Insecticide, Fungicide and Rodenticide Act 

(FIFRA). 

A longstanding and well-documented inability to resolve fundamental scientific issues central to the integration of these statutory 

requirements led the EPA Administrator and the Secretaries of the 

United States Department of Agriculture (USDA), Department of 

Interior and Department of Commerce to ask the National Research Council (NRC) of the National Academy of Sciences (NAS) 

to provide guidance on certain scientific issues. 

The final report from the NRC, Assessing Risks to Endangered 

and Threatened Species from Pesticides, was completed on April 30, 

2013 (NAS Report). For the following five months EPA, the Services, and USDA worked together and produced an ‘‘interim’’ implementation plan (the ‘‘Interim Plan’’) that was shared with stakeholders in mid-November of 2013. However, the Managers believe 

that further work needs to be done to adequately address the concerns regarding the ‘‘Interim Plan.’’ 

It is the Managers intent through routine oversight to keep all 

involved government entities focused on promptly building the ‘‘Interim Plan’’ into a final set of processes and procedures that will 

maximize the efficient use of limited governmental resources, minimize delays in registration actions under Sections 3 and 33 of 

FIFRA, make it possible for EPA to comply with the FIFRA requirement that all registrations be reviewed every fifteen years, 

and ensure meaningful public participation. Additionally, the Managers through this provision reemphasize Congress’s intention that 

all reasonable and prudent alternatives to address ESA concerns 

are economically and technologically feasible. 

Intent of Specific Subsections 

Subsection (a) requires that two reports be provided to the 

Committees on Agriculture and Natural Resources of the House of 

Representatives and the Committees on Agriculture, Nutrition, and 

Forestry and Environment and Public Works of the Senate jointly 

by the Administrator of the Environmental Protection Agency and 

the Secretaries of Commerce, Agriculture and the Interior, the first 

to be delivered 180 days after enactment of the legislation, and the 


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second six months later. Both reports are to describe the actions 

taken and approaches underway to implement the NAS Report’s 

recommendations and otherwise minimize delays in integrating 

FIFRA’s pesticide registration and registration review requirements and the ESA’s species and habitat protection processes. The 

Managers expect that each report should include an explanation of 

how any remaining delays in this integration are expected to be 

overcome, and a schedule for doing so. 

The provision references both Section 3 and 33 of FIFRA because both require timely EPA registration and registration review 

actions, including specific deadlines for action. It is the view of the 

Managers that the need for ESA compliance does not override 

these deadlines. It is important that the integration processes and 

procedures developed by EPA and the Services assure EPA can 

meet its statutory deadlines. Similarly, the Services should be exploring how habitat conservation plans as part of an Incidental 

Take Permit under Section 10 could be employed to simplify the 

consultation process under Section 7 when processing a permit application. 

The provision underlines the importance of meaningful public 

participation and transparency. In addition to describing approaches and actions to ensure public participation and transparency, the Managers specifically expect the report to address experience with the process described in EPA’s March 2013 paper, 

Enhancing Stakeholder Input in the Pesticide Registration Review 

and ESA Consultation Processes and Development of Economically 

and Technologically Feasible Reasonable and Prudent Alternatives 

and any modifications of that process that have been adopted or 

are anticipated. 

The conference report requires that the second report to Congress address, in addition to an update of the matters discussed in 

the first report, a number of other matters. First, in identifying 

specific actions yet to be undertaken, the report should provide a 

schedule for the initiation and completion of each, which should be 

realistic and allow for public participation. 

Second, the processes adopted both before and after completion 

of the two reports should recognize EPA’s obligations to meet the 

requirements for timely action set forth in FIFRA Sections 3 and 

33 and the resources available to the Services to address pesticiderelated consultations. 

Third, the report should comprehensively explain why the approaches and actions that have been or will be taken to address 

Congress’s concerns in enacting this provision utilize the best available science, assure that reasonable and prudent alternatives presented in biological opinions are technologically and economically 

feasible and that reasonable and prudent measures are necessary 

and appropriate. Among other matters, this explanation should explain how the substantive and procedural concerns that resulted in 

the vacating of certain portions of the regulation appearing in Subpart D of Part 402 of the Code of Federal Regulations in Washington Toxics Coalition v. USEPA, 457 F.Supp. 2d 1158 (W.D. 

Wash. 2006), have been overcome; how the January 4, 2004 letter 

from the Director of the U.S. Fish and Wildlife Service and Assistant Administrator of the National Marine Fisheries Service to the 


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Principal Deputy Assistant Administrator of the Office of Prevention, Pesticides and Toxic Substances of the Environmental Protection Agency has been updated and revised; and how the Alternative 

Consultation Agreement entered into in August, 2004 by the Acting 

Assistant Administrator of the Office of Prevention, Pesticides and 

Toxic Substances of the Environmental Protection Agency, the Director of the U.S. Fish and Wildlife Service, and the Assistant Administrator for Fisheries, National Oceanic and Atmospheric Administration has been revised or whether it is scheduled to be revised. 

Fourth, the report should include an update of the study and 

report on how ESA implementation is being undertaken while 

minimizing the impacts on persons engaged in the production of 

agricultural food and fiber commodities and other affected pesticide 

users and applicators. 

(10) Use and Discharge of Authorized Pesticides 

The House bill amends section 3(f) of the Federal Insecticide, 

Fungicide, and Rodenticide Act prohibiting the Administrator or a 

State from requiring a permit under the Federal Water Pollution 

Control Act for pesticide applications authorized under the Federal 

Insecticide, Fungicide and Rodenticide Act, except in certain instances and amends section 402 of the Federal Water Pollution 

Control Act prohibiting the Administrator or a State from requiring 

a permit under section 402 for the application into navigable 

waters of a pesticide applications authorized under the Federal Insecticide, Fungicide, and Rodenticide Act. Subsection (s)(2) provides 

exceptions for certain instances. (Section 10013) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the Senate provision. 

(11) Seed not Pesticide or Device for Purposes of Importation 

The House bill amends the Federal Insecticide, Fungicide, and 

Rodenticide Act to eliminate the requirement to notify the Administrator for seeds, including treated seeds, of the arrival of pesticides 

and devices. (Section 10014) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment prohibits the requirement of notification to the Administrator of the EPA of the arrival of a plant-incorporated protectant (PIP) contained in a seed. The Secretary, if requested, shall provide to the Administrator a list of seeds containing PIPs. The amendment does not limit the Secretary’s other 

authorities regarding the movement of seeds. (Section 10008) 

(12) Stay on Regulations Related to Christmas Tree Promotion, Research and Information Order 

The House bill requires the Secretary, within 60 days of the 

enactment of this Act, to lift the administrative stay imposed by 

the rule establishing an industry-funded promotion, research and 

information program for fresh cut Christmas trees. (Section 10015) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision. (Section 

10014) 


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(13) Study on Proposed Order Pertaining to Sulfuryl Flouride 

The House bill authorizes a report to Congress regarding the 

potential economic and public health effects that would result from 

finalization of the proposed order pertaining to sulfuryl fluoride. 

(Section 10016) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment directs the Administrator of the EPA 

to exclude nonpesticidal sources of fluoride from aggregate exposure assessments required under section 408 of the FFDCA when 

assessing tolerances associated with residues from the pesticide. 

(Section 10015) 

(14) Study on Local and Regional Food Production and Program 

Evaluation 

The House bill requires the Secretary to collect data on the 

production and marketing of locally or regionally produced agricultural food products, facilitate data sharing, and monitor programs 

designed to aid local and regional food systems. The bill further 

provides a sunset date of September 30, 2018 for the annual report. 

(Section 10017) 

The Senate amendment is similar to the House bill but does 

not include the sunset date. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment adds further requirements for the 

Secretary to collect data on regulatory compliance costs, monitor 

regulatory barriers, and evaluate local food systems. (Sec. 10016) 

(15) Annual Report 

The House bill authorizes a report and annual update to Congress regarding invasive species including a list of each invasive 

species that is in the U.S. as of the date of the report and information regarding each invasive species listed, including the means in 

which the species entered the U.S., cost estimates of the species to 

the public and private sectors and a description of any legal recourse available to people affected by the species. (Section 10018) 

The Senate amendment has no comparable provision. 

The Conference substitute adopts the Senate provision. 

(16) Effective Date 

The Senate amendment provides an effective date of this title 

as October 1, 2013. (Section 10013) 

The House bill has no comparable provision. 

The Conference substitute adopts the House provision. 

TITLE XI—CROP INSURANCE

(1) Information sharing 

The House bill, in section 11001(a), requires the Farm Service 

Agency (FSA), when authorized by the producer, to provide in a 

timely manner information to an agent or an approved insurance 

provider (AIP) that may assist the agent or AIP in insuring the 

producer, providing for privacy protection and limited sharing. Section 11001(b) requires disclosure (by name) of the amount of crop 


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insurance assistance received by Members of Congress, Cabinet 

Secretaries, and members of their immediate families. (Section 

11001) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment deleting the disclosure requirements under section 

11001(b). (Section 11001) 

The Managers intend that the information sharing required 

under this section be effective upon enactment of the Farm Bill. 

The Managers view the requirement of this section as an important 

measure to ensure the timely correction and prevention of errors. 

The Managers intend that the Farm Service Agency provide agents 

or AIPs with information in a timely fashion to fully effectuate the 

intent of this section. 

(2) Publication of information on violations of prohibition on premium adjustments 

The House bill requires the Federal Crop Insurance Corporation (the Corporation) to publish information regarding each violation of the prohibition on rebates or premium adjustments, including any sanctions imposed, in sufficient detail so that the information may serve as effective guidance to AIPs, agents, and producers. (Section 11002) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

11002) 

The Managers stress the importance of timely enforcement and 

publication of violations, especially in the heavy sales period prior 

to the sales closing date. The Managers also intend for the Risk 

Management Agency to investigate reports of violations made to 

the Risk Management Agency by agents or AIPs in the field. The 

Managers observe that the prohibition on rebating under the Federal Crop Insurance Act (FCIA) has not been construed to limit 

customary client relations, including but not limited to providing 

risk management education, maps, or help explaining coverage to 

lenders; promotional materials such as pens, caps, notepads; or engagement of clients in a social or civic setting. The Managers view 

these services and activities as ordinary business expenses common 

to the industry. 

(3) Supplemental coverage option 

The House bill, in section 11003(a), amends section 508(c)(3) of 

the Federal Crop Insurance Act to establish the Supplemental Coverage Option (SCO). Section 508(c)(3)(A) and (B) (as amended by 

section 11003(a) of the House bill) offers producer the option of purchasing additional coverage based on: (1) an individual yield and 

loss basis; (2) an area yield and loss basis; or (3) an individual yield 

and loss basis supplemented with coverage based on an area yield 

and loss basis to cover part of the deductible under the individual 

yield and loss policy. Section 508(c)(3)(C) (as amended by section 

11003(a) of the House bill) establishes coverage on a margin basis 

alone or in combination with coverage on an individual yield and 

loss basis or on an area yield and loss basis, or an individual yield 

and loss basis supplemented with coverage based on an area yield 


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and loss basis. Subsection (b) amends section 508(c)(4) of the Federal Crop Insurance Act to establish the level of coverage available 

under SCO. Section 508(c)(4)(C)(i) (as amended by section 11003(b) 

of the House bill) requires SCO to be available at a county-wide 

level to the fullest extent practicable or, in counties that lack sufficient data, on the basis of a larger area that the Corporation determines will provide sufficient data. Section 508(c)(4)(C)(ii) (as 

amended by section 11003(b) of the House bill) stipulates that indemnities will be triggered only if losses in the area exceed 10 percent of normal levels. Section 508(c)(4)(C)(iii) (as amended by section 11003(b) of the House bill) establishes coverage in an amount 

that does not exceed the difference between 90 percent and the coverage level selected by the producer for the underlying policy or 

plan of insurance. Section 508(c)(4)(C)(iv) (as amended by section 

11003(b) of the House bill) stipulates that crops enrolled in Revenue Loss Coverage or acres enrolled in stacked income protection 

for producers of upland cotton (STAX) are not eligible for SCO. Section 508(c)(4)(C)(v) (as amended by section 11003(b) of the House 

bill) establishes the premium for SCO at an amount that is sufficient to cover anticipated losses and a reasonable reserve and include an amount for operating and administrative expenses. Subsection (c) amends section 508(e)(2) of the Federal Crop Insurance 

Act to establish premium support for SCO at 65 percent of the additional premium associated with the coverage and A&O at 12 percent of the premium used to define loss ratio. Subsection (d) requires the provision of SCO beginning with the 2014 crop year. 

(Section 11003) 

The Senate amendment amends section 508(c)(3) of the Federal Crop Insurance Act to establish SCO in the same manner as 

the House provision. Section 11001(a) amends section 508(c)(3) of 

the Federal Crop Insurance Act to establish SCO. Section 11001(b) 

amends section 508(c)(4) of the Federal Crop Insurance Act to establish the level of coverage available under the SCO. Section 

508(c)(4)(C)(i) (as amended by section 11001(b) of the Senate 

amendment) requires SCO to be available if sufficient data is available (as determined by the Corporation). Section 508(c)(4)(C)(ii)) (as 

amended by section 11001(b) of the Senate amendment) makes coverage under this section subject to a deductible. If a producer selects Agriculture Risk Coverage (ARC), the amount of the deductible is equal to 22 percent of the expected value of the crop. For 

all other producers, the deductible is established at 10 percent. Section 508(c)(4)(C)(iii) (as amended by section 11001(b) of the Senate 

amendment) establishes coverage in an amount that does not exceed the difference between 100 percent and the coverage level selected by the producer for the underlying policy or plan of insurance. Section 508(c)(4)(C)(iv) establishes the premium for A&O in 

the same manner as the House provisions. Subsection (c) establishes premium support and A&O in the same manner as the 

House provision. Subsection (d) provides for a conforming amendment. Section 11013, which establishes a new section 508B of the 

Federal Crop Insurance Act, provides that acres enrolled in STAX 

are ineligible for supplemental coverage. (Sections 11001, 11013) 

The Conference substitute adopts the House provision with 

amendments dropping the establishment of margin coverage proVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00540 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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vided in the House provision from the SCO section, establishing 

that SCO coverage will only be triggered if losses in the area exceed 14 percent of normal levels, limiting SCO coverage to not exceed the difference between 86 percent and the coverage level selected by the producer under the underlying policy, disallowing 

SCO coverage for crops enrolled in ARC (as well as acreage when 

enrolled in STAX), and requiring SCO to be made available beginning with the 2015 crop year. (Section 11003) 

The Managers intend the Supplemental Coverage Option to be 

made available by the Corporation for sale by agents and AIPs in 

time for the 2015 crop year. This is essential given crop insurance 

is assuming a larger role in the risk management of producers in 

the wake of reduced support under the Commodity Title. The Managers particularly note that a producer may purchase a STAX policy and SCO coverage on the same cotton crop in the same county 

provided that they are purchased for separate acreage. The language in this section is clear on this point, precluding SCO coverage and ARC on the same crop but precluding SCO and STAX 

on the same acres. The Managers intend that producers of hybrid 

seed, including but not limited to hybrid seed corn, hybrid popcorn 

seed, hybrid sweet corn seed, hybrid sorghum seed, and hybrid rice 

seed, may supplement their coverage with either a revenue or yield 

SCO coverage option, at the producer’s election. The Managers intend that cotton producers may supplement their cottonseed coverage with SCO yield coverage. 

The Managers strongly urge the Corporation to allow popcorn 

producers to be covered under area risk protection insurance under 

written agreement until applicable policy provisions are amended 

to allow for such coverage. 

Margin Coverage Option 

The House bill, in section 11003(a), authorizes margin coverage 

for producers to elect alone, or in combination with individual yield 

and loss coverage or area yield and loss coverage, or in combination 

with both individual yield and loss coverage and area yield and loss 

coverage. (Section 11003) 

The Senate amendment authorizes margin coverage to be 

made available alone or in combination with either individual yield 

and loss coverage or area yield and loss coverage. (Section 11002) 

The Conference substitute adopts the House provision but authorizes margin coverage under a separate section in the Farm Bill 

from SCO. (Section 11004) 

The Managers intend that margin coverage be approved and 

made available by the Corporation for sale by agents and AIPs in 

time for the 2015 crop year. Timely approval and availability is important to wheat, rice, and interested producers of other commodities. 

(4) Premium amounts for catastrophic risk protection 

The House bill requires the CAT premium to be reduced by the 

percentage equal to the difference between the average loss ratio 

for the crop and 100 percent, plus a reasonable reserve. (Section 

11004) 


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The Senate amendment is the same as the House, except the 

reasonable reserve is ‘‘as determined by the Corporation.’’ (Section 

11003) 

The Conference substitute adopts the Senate provision. (Section 11005) 

(5) Repeal of performance-based discount 

The House bill repeals the performance-based discount. (Section 11005) 

The Senate amendment contains no comparable provision. 

The Conference substitute deletes the House provision. 

(6) Permanent enterprise unit subsidy 

The House bill makes permanent the Corporation’s authority 

to pay a higher portion of the premiums for policies that insure on 

an enterprise unit basis. (Section 11006) 

The Senate amendment is the same as the House. (Section 

11004) 

The Conference substitute adopts the House provision. (Section 

11006) 

(7) Enterprise units for irrigated and non-irrigated crops 

The House bill requires the Corporation to make available separate enterprise units for acreages of irrigated and non-irrigated 

crops beginning with the 2014 crop year. (Section 11007) 

The Senate amendment is the same as the House except that 

separate enterprise units are to be made available beginning with 

the 2013 crop year. (Section 11005) 

The Conference substitute adopts the House provision but 

makes separate enterprise units available beginning with the 2015 

crop year. (Section 11007) 

The Managers intend for Enterprise Units by practice to be 

made available by the Corporation in time for the 2015 crop year. 

(8) Data collection 

The House bill provides authority for the use of data collected 

by the Risk Management Agency (RMA), the National Agricultural 

Statistics Service (NASS), or both, to determine yields. Where sufficient county data is not available, the Secretary is authorized to 

use data from other sources. (Section 11008) 

The Senate amendment is the same as the House. (Section 

11006) 

The Conference substitute adopts the House provision. (Section 

11008) 

The Managers would note that the effectiveness of the improvements made by this Act to the Federal Crop Insurance Act 

hinges considerably on ensuring that necessary data is available 

for implementation of improvements in a manner that benefits all 

producers. The Managers intend that the Corporation will use this 

authority effectively to fully accomplish the objectives of the crop 

insurance title of the Farm Bill. 


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(9) Adjustment in actual production history to establish insurable 

yields 

The House bill strikes the 60 percent yield plug in current law 

and replaces it with a 70 percent yield plug. (Section 11009) 

The Senate amendment provides for a yield plug at 65 percent 

but only with respect to yields for the 2014 and subsequent crop 

years. (Section 11007) 

The Conference substitute adopts the House provision with an 

amendment that drops the proposed replacement of the yield plug 

in current law and authorizes producers to exclude certain yield 

history from their APH database. The provision amends section 

508(g) (as amended by section 11009 of the Farm Bill) by subjecting actual production history requirements under section 

508(g)(2)(A) to the new yield exclusion authority and, under section 

508(g)(4), by requiring an appropriate adjustment in premium 

when a producer elects to exclude yields pursuant to the authorities provided by this provision. The new section 508(g)(4)(C)(i) authorizes a producer to exclude any recorded or appraised yield for 

any crop year in which the per planted acre yield of the agricultural commodity in the county of the producer was at least 50 percent below the simple average of the per planted acre yield of the 

agricultural commodity in the county during the previous 10 consecutive crop years. Section 508(g)(4)(C)(ii) provides that for any 

crop year in which a producer is able to make an election to exclude a yield under clause (i), a producer in a contiguous county 

may also elect to exclude a yield under the authority granted by 

this provision. Section 508(g)(4)(C)(iii) requires this provision to be 

implemented by irrigation practice. (Section 11009) 

The Managers intend that when a producer elects to exclude 

a yield under this section that the Corporation would also exclude 

a year for purposes of calculating the producer’s average actual 

production history. For example, if a producer has 10 years of history and elects to exclude one year pursuant to this section, the 

conferees intend that the Corporation will add the yields from the 

9 remaining years in the database and divide the total by 9, not 

10. The amendment to the Act specifically declares that a producer 

may make an election to exclude one or more yields notwithstanding section 508(g)(2)(A) which requires a data base building 

up to 10 consecutive crop years. Since the statute does not drill 

down further as to how the producer’s average Actual Production 

History is to be calculated by the Corporation, the Managers intend 

that the more general directive in this section along with this clarifying report language is sufficient to ensure proper implementation 

as intended by the Managers without the need to amend Corporation regulations. The Managers note that this provision is effective 

upon the date of enactment of the Farm Bill. To the extent that 

it is not feasible to implement for the 2014 crop year due to the 

reinsurance year already having begun, the Managers intend that 

the provision will be implemented in time for the 2015 crop year. 

The Managers would observe that this provision applies to any 

yield in a producer’s actual production database, including any 

yield that predates the enactment of this section. 

The Managers strongly urge the Corporation to discontinue use 

of downward trending with respect to databases of perennial crops 


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of 5 years or less due to the hardship this inflicts on specialty crop 

producers, including peach producers, who, under the current rules, 

are not allowed to use their own proven APH despite the requirements of section 508(g)(2)(A). The Managers also strongly urge that 

vertically integrated producers be permitted to use adjusters’ appraisals to settle claims and that transition yields for peaches be 

updated to account for technology and innovation. 

(10) Submission and review of policies 

The House bill, in section 11010(a), requires the Corporation to 

review and submit to the Federal Crop Insurance Corporation 

Board of Directors (Board) any policy developed under research and 

development contracting authority or pilot program authority if the 

Corporation, at its sole discretion, finds the policy will likely result 

in a viable and marketable policy, would provide crop insurance 

coverage in a significantly improved form, and adequately protects 

producer interests. The provision also establishes priorities for consideration and approval under section 508(h) of the Federal Crop 

Insurance Act, including a revenue policy for peanuts, a margin 

policy for rice producers, and separate enterprise units by risk rating in time for the 2014 crop year. Section 11010(b) allows for up 

to 75 percent of research and development cost to be paid in advance. (Section 11010) 

The Senate amendment, in section 11008, is substantially similar to the House provision except that the Senate amendment does 

not include the House priorities. Section 11009 also proposes new 

policy review and approval criteria, requiring the Board to approve 

a new policy, plan of insurance, or other material for reinsurance 

and for sale by approved insurance providers to producers at actuarially appropriate rates and under appropriate terms and conditions if the Board determines, at its sole discretion, that the interests of producers are adequately protected; the rates of premium 

and price election methodology are actuarially appropriate; the 

terms and conditions are appropriate and would not unfairly discriminate among producers; the proposed policy or plan of insurance will, at the Board’s sole discretion, result in viable and marketable policy, will provide crop insurance in a significantly improved form or in a manner that addresses a recognized flaw or 

problem, and will provide an improved kind of coverage for crops 

without insurance or experiencing low participation in crop insurance; the proposed policy or plan of insurance would not, in the 

sole discretion of the Board, have a significant adverse impact on 

the crop insurance delivery system; and the policy or plan meets 

other requirements determined appropriate by the Board. Section 

11009 also provides that the Board, at its sole discretion, may establish annual priorities which would be made available on the 

Corporation website as well as a process where priority submissions would be considered and approved first. The Board is to consider making the highest priority those submissions designed to 

serve underserved commodities, including commodities for which 

there is no insurance, and those designed to address existing policies where there is inadequate coverage or low participation levels. 

Section 11018 of the Senate provision modifies the approval of costs 

for research and development, including the allowance of a waiver 


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on the 50 percent limit on advance costs, permitting the Board to 

approve an additional 25 percent advance payment to a submitter 

of a policy intended to provide coverage for a region or crop that 

is underserved by federal crop insurance, including specialty crops. 

(Sections 11008, 11009, 11018) 

The Conference substitute adopts the Senate provisions, combining them into one section with the following amendments. The 

Board is required to review and approve for reinsurance and for 

sale by approved insurance providers to producers at actuarially 

appropriate rates and under appropriate terms and conditions any 

policy, plan of insurance, or other material where the Board determines that the interests of producers are protected. In addition, the 

Board must determine that the proposed policy or plan of insurance will provide a new kind of coverage that is likely to be viable 

and marketable, provide insurance coverage in a manner that addresses a clear and identifiable flaw or problem in an existing policy, or provide a new kind of coverage for a commodity that previously had no crop insurance or has demonstrated a low level of 

participation or coverage level under existing coverage. The Board 

must also determine that the policy or plan of insurance will not 

have a significant adverse impact on the crop insurance delivery 

system. The Board is required, in a timely manner, to first consider 

policies or plans of insurance that address underserved commodities, including commodities for which there is no insurance; secondly, to consider modifications to existing policies or plans of insurance for which there is inadequate coverage or there exists low 

participation levels for a crop; and finally to consider other submissions under section 508(h). The Board is required to make a priority the approval of a revenue policy for peanuts and a margin 

coverage policy for rice in time for the 2015 crop year; and the 

Board is authorized to approve another priority in time for the 

2015 crop year, a submission that allows separate Enterprise Units 

by risk rating. With respect to approval of costs for research and 

development, the requirement that a policy address ‘‘a unique need 

of agricultural producers’’ is dropped as part of the qualifying criteria for the 50 percent advance, and the submitter not having sufficient financial resources to complete the development of the submission into a viable or marketable policy is dropped as part of the 

criteria for an additional 25 percent advance. (Section 11010) 

The Managers observe the importance of a section 508(h) submission process that is highly conducive to the development, approval, and availability of new risk management products for producers. The Managers intend that, provided that largely objective 

standards are met by a submission under section 508(h), the Board 

must approve the policy. The Managers intend that the Board will 

honor the general priorities as required under the amendments 

made to section 508(h) under this section but in a manner that also 

provides for the timely consideration of other policies. The Managers specifically intend for the Board to approve a peanut revenue 

policy and a margin policy for rice producers in time for the 2015 

crop year, as required under this section, and intend for the Board 

to use the authority granted under this section to consider and approve a submission providing for separate Enterprise Units by risk 

rating also in time for the 2015 crop year. The Managers would 


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also strongly urge the Board to place a high priority on the approval of a specialized irrigated grain sorghum policy that establishes improved rates and t-yields based on a certain high level of 

crop management. 

(11) Equitable relief for specialty crop policies 

The House bill provides that for each of the 2011 through 2015 reinsurance years, the Corporation must provide $41 million in reimbursement (in addition to the total amount of funding for A&O 

reimbursement) with respect to eligible insurance contracts for any 

agricultural commodity that is not eligible for a benefit under subtitles A, B, or C of Title I of this Act. (Section 11011) 

The Senate amendment contains no comparable provision. 

The Conference substitute deletes the House provision. 

(12) Consultation 

The Senate amendment requires the submitter of a proposed 

policy to, as part of the 508(h) review process, consult with groups 

representing producers of agricultural commodities in all major 

producing areas for the commodities to be served or potentially impacted, either directly or indirectly. Any submission to the Board 

must include a summary assessment of the consultation and the 

Board must use the assessment to determine if the submission will 

create adverse market distortions. (Section 11010) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision but confines the scope of the new consultation requirements to fruits, vegetables, tree nuts, dried fruits, horticulture, nursery crops, and floriculture. (Section 11011) 

(13) Budget limitations on renegotiation of the Standard Reinsurance Agreement 

The House bill requires that, to the maximum extent practicable, any new SRA negotiated under section 508(k)(8)(A)(ii) shall 

be budget neutral as compared to the previous SRA, that in no 

event may a new SRA significantly depart from budget neutrality, 

and that any incidental savings realized from the renegotiation of 

the Standard Reinsurance Agreement be used to increase premium 

subsidies, A&O reimbursements, or fund pilot programs. (Section 

11012) 

The Senate amendment is similar except that the provision requires any savings realized from the renegotiation of the Standard 

Reinsurance Agreement ‘‘be used for programs administered or 

managed by the Risk Management Agency.’’ (Section 11011) 

The Conference substitute adopts the House provision with an 

amendment to clarify that, to the maximum extent practicable, estimated underwriting gains under any new SRA must be budget 

neutral as compared to estimated underwriting gains under the immediately preceding SRA were the preceding SRA extended over 

the same period of time (Subparagraph (F)(i)(I)). The substitute 

also clarifies that any future SRA must comply with provisions of 

the Federal Crop Insurance Act governing A&O rates but that this 

requirement is subject to the requirement that, to the maximum 

extent practicable, the estimated total amount of A&O under any 


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new SRA shall not be less than the estimated total amount of A&O 

under the immediately preceding SRA were the preceding SRA extended over the same period of time, as estimated on the date of 

enactment of the Farm Bill (Subparagraph (F)(i)(II)). The substitute requires in the same clause that in no event shall a new 

SRA significantly depart from the budget neutrality as defined in 

each of subclauses (I) and (II) unless otherwise required by the 

Federal Crop Insurance Act (Subparagraph (F)(i)(III)). The substitute further requires that to the extent there are any budget 

savings from a future SRA and they do not result in a significant 

departure from the budget neutrality required under each of subparagraphs (F)(i)(I) and (F)(i)(II), the savings must be used to increase A&O or underwriting gains (Subparagraph (F)(ii)). (Section 

11012) 

The Managers note that Federal Crop Insurance has been re- duced by about $17 billion over the past six years, including directly in the 2008 Farm Bill, in the context of the 2011 Standard 

Reinsurance Agreement negotiated in 2010 pursuant to section 

508(k)(8)(A)(i), and in the subsequent premium rerating of policies. 

The Managers intend that, in compliance with this section, any 

SRA negotiated pursuant to section 508(k)(8)(A)(ii) shall not be 

used as a means of achieving further cuts to Federal Crop Insurance. To this end, this provision of law requires forbearance from 

further cuts in any future SRA negotiations to the maximum extent practicable. The Managers observe that this provision imposes 

a clear duty on the FCIC to fulfill the statutory command to the 

extent that it is feasible or possible to do so while still fulfilling the 

purposes of the statute, namely the provision of crop insurance to 

farmers and ranchers through approved insurance providers and 

private sector agents. Absent clear directive under a future Act of 

Congress, the Managers expect that forbearance from budget reductions under any future SRA is, in fact, both feasible and possible. In requiring budget neutrality, it is the intent of the Managers that the authority of the Corporation to carry out its authorities under this subtitle to establish or revise premium rates shall 

not be affected by this amendment. 

The Managers note that this provision of law establishes an effective floor for estimated underwriting gains (UWGs) and A&O 

amounts under any future SRA that is based on estimates under 

the current SRA. Subject to the prescribed minimum amount of 

A&O, the Managers also note that the provision requires the FCIC 

to comply with applicable provisions of the FCIA when establishing 

A&O rates. In contrast to UWGs where there is no statutory instruction, there is significant statutory instruction and history with 

respect to A&O rates. For instance, section 508(k)(4)(A)(ii) established a maximum A&O rate of 24.5 percent of premium used to 

define loss ratio beginning with the 1999 reinsurance year. Section 

508(k)(4)(E) subsequently fixed the rate of A&O at 2.3 percentage 

points below the rate in effect on the date of enactment of the 2008 

Farm Bill with respect to the 2009 and subsequent reinsurance 

years. And section 508(k)(8)(E) authorized alternative methods to 

determine A&O rates for covered reinsurance years under the SRA 

that took effect beginning with the 2011 reinsurance year. The 

Managers would observe that the applicable statutory A&O rates 


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are made subject to the estimated minimum amount of A&O required under this provision of law as well as to any additional A&O 

required in the event of incidental savings from a future SRA negotiated under section 508(k)(8)(A)(ii). The Managers note that Subparagraph (F)(i)(III) enforces the overarching purpose of this provision of law which is to avoid future spending reductions by maintaining budget neutrality. The Managers do not intend that this 

provision be construed to require that funding be increased or decreased with respect to either A&O or UWGs in a manner that 

would increase or decrease such funding relative to a future SRA 

negotiated under section 508(k)(8)(A)(ii) unless an increase or decrease is otherwise required by the operation of law. 

Subparagraph (F)(i)(III) generally restates the overarching 

purpose of this provision of law which is to maintain budget neutrality unless the statute requires otherwise. The Managers note 

that budget neutrality requirements as defined in each of subclauses (I) and (II) and each enforced by subclause (III) may not 

be construed to require a reduction to another program. Subparagraph (F)(ii) holds that any savings from an SRA negotiated under 

section 508(k)(8)(A)(ii) shall be purely incidental and any such savings must be redirected back into A&O and UWGs. Thus, the Managers intend that any savings under a future SRA be, in fact, purely incidental and that these savings be used to increase A&O and 

UWGs in a manner that is not discriminatory or prejudicial to any 

approved insurance provider or agent. The Managers further intend that incidental savings from UWGs should be redirected to 

UWGs and, likewise, incidental savings from A&O should be redirected to A&O. 

(14) Test weight for corn 

The Senate amendment requires the Corporation to establish 

procedures to allow insured producers not more than 120 days to 

settle claims, in accordance with procedures established by the Secretary, involving corn that is determined to have low test weight. 

As soon as practicable after the date of enactment of this provision, 

the Corporation is required to implement this provision on a regional basis based on market conditions and the interests of producers. The authority under this section terminates 5 years from 

implementation. (Section 11012) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 11013) 

(15) Crop production on native sod 

The House bill amends Section 508(o) of the Federal Crop Insurance Act. The provision amends the definition of native sod to 

include land that a producer cannot substantiate has ever been 

tilled. With respect to native sod, the provision requires a reduction 

in crop insurance premium support, and is denied NAP payments 

or Commodity Title payments. The provision requires that during 

the first 4 years of planting a crop on native sod, the premium support for crop insurance will be reduced by 50 percentage points. 

The provision also provides that the required reduction in benefits 

will apply to 65 percent of the transitional yield of the producer 


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and that a producer may not substitute yields on native sod 

ground. The provision is limited in application to the Prairie Pothole National Priority Area. The provision amends the Non-Insured 

Crop Disaster Assistance Program (NAP) program in the same 

fashion. Section 10013(c) requires a cropland report to the House 

and Senate Agriculture Committees and annual updates. (Section 

11013) 

The Senate amendment requires the same reduction in benefits as the House provision except that the Senate provision makes 

the reduction in benefits for planting on native sod nationwide. It 

further requires a cropland report and annual updates. (Section 

11035) 

The Conference substitute provides for a reduction in benefits 

for a producer that has tilled native sod for the production of an 

annual crop under both the Federal Crop Insurance Act and NAP. 

Under the Federal Crop Insurance Act, a producer is subject to a 

reduction in benefits during the first four crop years of planting. 

The crop insurance insured yield would be determined using a 

yield of 65 percent of the transitional yield of the producer. The reduced subsidy would be 50 percentage points less than the premium subsidy that would otherwise apply. The reduction in benefits does not apply to catastrophic level coverage. 

In the case of benefits under NAP, a producer planting on native sod during the first four years is subject to a reduction in benefits. The reduced approved yield is determined by a yield that is 

65 percent of the T yield of the producer. The service fees or premiums would be equal to 200% of the service fee or premium. 

The conference substitute provides that the reduction in benefits for both federal crop insurance and NAP apply only on native 

sod in the states of Minnesota, Iowa, North Dakota, South Dakota, 

Montana, and Nebraska. 

The conference substitute adopts the Senate provision on the 

requirement for a crop land report and annual updates. (Section 

11014) 

The Managers do not intend for approved insurance providers 

(AIP) or agents to be responsible for making any determinations 

relative to this section, nor for AIPs or agents to undertake any liability for changes in eligibility determinations. 

(16) Coverage levels by practice 

The House bill allows a producer that produces an agricultural 

commodity on both dry land and irrigated land to elect a different 

coverage level for each production practice beginning with the 2015 

crop year. (Section 11014) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

11015) 

The Managers intend that this provision will be implemented 

in time for the 2015 crop year. The Managers would observe that 

the risks relative to producing crops on dry land acreage versus irrigated acreage are considerably different and that many producers 

seek different coverage levels that are tailored to those differing 

risks. 


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(17) Beginning farmers and rancher provisions 

The House bill, in section 11015, defines a beginning farmer or 

rancher as one who has not actively operated and managed a farm 

or ranch with a bona fide interest in a crop or livestock as an 

owner-operator, landlord, tenant, or sharecropper for more than 5 

crop years. Except in the case of CAT coverage, beginning farmers 

and ranchers receive premium assistance that is 10 percentage 

points higher than premium assistance otherwise provided. The 

section requires that a beginning farmer or rancher previously involved in a farming or ranching operation, including in decision 

making or physical involvement, be assigned a yield that is the 

higher of the APH of the previous producer of the crop or livestock 

on the acreage or the yield of the producer as otherwise provided 

by statute. The section further provides beginning farmers and 

ranchers with a higher yield plug of 80 percent of the applicable 

transitional yield. (Section 11015) 

The Senate amendment is similar to the House. (Section 

11032) 

The Conference substitute adopts the House provision. (Section 

11016) 

The Managers intend this section to be implemented in a manner that does not discriminate against producers who grew up on 

a farm or ranch, left for post-secondary education or military service, and returned to the farm or ranch. When calculating the 5 crop 

years in this section, the Managers intend that any year when a 

producer was under the age of 18, in post-secondary studies, or 

serving in the U.S. military should not be counted. 

(18) Stacked income protection plan for producers of upland cotton 

The House bill, in section 11016(a), requires the Corporation to 

make available to upland cotton producers, beginning with the 

2014 crop year, a new additional policy which is to provide coverage consistent with the Group Risk Income Protection (GRIP) 

Plan along with the Harvest Revenue Option Endorsement offered 

in the 2011 crop year. The section authorizes the Corporation to 

modify the policy on a program-wide basis provided the plan complies with certain requirements. The section requires coverage for 

revenue loss of not less than 10 percent and not more than 30 percent of expected county revenue, offered in increments of 5 percent. 

The section establishes a deductible under the policy of 10 percent 

of revenue loss in a county. The section requires that the policy be 

made available to all upland cotton producers in all counties of production at a county-wide level to the fullest extent practicable, or 

in counties that lack sufficient data, on the basis of a larger geographical area as determined by the Corporation. The section provides that this coverage may be purchased alone or in addition to 

any other individual or area coverage on the same acreage except 

that in the latter case the coverage may not exceed the deductible 

of the other policy. The section requires that coverage be based on 

the expected price established under existing GRIP or area wide 

policy offered by the Corporation for the county or area and crop 

year and an expected county yield. The section requires that the 

expected county yield be the higher of the expected county yield for 

existing area wide plans for the applicable county (or area) and 


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crop year (or in geographic areas where area-wide plans are not offered, an expected yield determined in a consistent manner with an 

area wide plan) or the average of the applicable yield data for the 

county (or area) for the most recent 5 years, excluding the high and 

low, as observed by RMA, NASS, or both, or other data determined 

appropriate by the Secretary if sufficient county data is not available. The section requires use of a multiplier factor of not less than 

the higher of the level established on a program wide basis or 120 

percent. The section requires an indemnity to be paid based on the 

amount that expected county revenue exceeds actual county revenue as applied to the individual coverage of the producer, except 

that indemnities may not include or overlap the producer’s selected 

deductible. The section requires the availability of this coverage by 

irrigation practice in all counties where data is available. The section establishes the amount of premium and premium support and 

specifies the amount of A&O required for the policy. The section 

clarifies that the policy is in addition to all other coverage available 

to producers of upland cotton. Finally, section 11016(b) provides for 

a conforming amendment. 

The Senate amendment: Section 11013 is similar to the House 

bill except that the Senate requires the stacked income protection 

plan to be made available beginning with the 2014 crop year if 

practicable and requires such protection to be made available by irrigation practice to the maximum extent practicable. (Section 

11013) 

The Conference substitute adopts the House provision except 

that stacked income protection for upland cotton producers is required to be made available beginning not later than the 2015 crop 

year. (Section 11017) 

The Managers intend that the Stacked Income Protection Plan 

for Producers of Upland Cotton be implemented in a manner that 

if a producer participates in both the Stacked Income Protection 

Plan and an area-wide policy, the total indemnification under both 

policies combined does not exceed the total insured value of the 

crop. The Managers intend that the Stacked Income Protection 

Plan for Producers of Upland Cotton be implemented in a manner 

that includes the features of existing area-wide crop insurance 

products, including allowing for producers to select or decline the 

Harvest Price Option. The Managers further intend that the 

Stacked Income Protection Plan be fully implemented by the Corporation as expeditiously as possible. 

(19) Peanut revenue crop insurance 

The House bill, in Section 11017, requires the Corporation to 

make available revenue insurance for peanut producers beginning 

with the 2014 crop year. The section establishes an effective price 

for revenue and multiple peril insurance at a price equal to the 

Rotterdam price index for peanuts, adjusted to reflect the farmer 

stock price of peanuts in the U.S. The section authorizes RMA to 

adjust the effective price to correct distortions in an open and 

transparent manner with a report to the Agriculture Committees 

on the reasons for the adjustment. (Section 11017) 

The Senate amendment is similar to the House provision. (Section 11014) 


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The Conference substitute adopts the House provision except 

that peanut revenue coverage is required beginning with the 2015 

crop year and the effective price must be either the Rotterdam 

price or other appropriate price as determined by the Secretary. 

(Section 11018) 

The Managers note that peanut revenue coverage is required 

to be made available to peanut producers in time for the 2015 crop 

year and that a separate section within the crop insurance title of 

this Act requires that the approval of a peanut revenue policy be 

made a priority. 

(20) Authority to correct errors 

The House bill amends section 515(c) of the Federal Crop Insurance Act to allow an agent or an AIP to correct unintentional 

errors in information that are provided by a producer. Section 

515(c)(3)(A) (as amended by section 11018 of the House bill) specifies that the authority granted by section 10018 shall be in addition to any corrections already permitted and in place on the date 

of enactment of this Act. Section 515(c)(3)(A)(i) provides agents and 

AIPs authority to correct unintentional errors in information provided by the producer to obtain insurance within a reasonable period following the sales closing date. Section 515(c)(3)(A)(ii)(I) also 

provides that, within a reasonable time following the acreage reporting date, agents and AIPs may correct unintentional errors in 

factual information that are provided by a producer after the sales 

closing date to reconcile the information with the information reported by the producer to FSA. Section 515(c)(3)(A)(ii)(II) provides 

that agents and AIPs may make corresponding corrections within 

a reasonable amount of time following the date of any subsequent 

correction of data by the FSA made as a result of the verification 

of information. Section 503(c)(3)(A)(iii) provides that AIPs and 

agents may at any time correct unintentional errors made by FSA, 

agents, or AIPs in transmitting the information provided by the 

producer to the approved insurance provider or the Corporation. 

Section 515(c)(3)(B) provides that in accordance with Corporation 

procedures, the corrections permitted under clauses (i) and (ii) may 

only be made if the corrections do not allow the producer to avoid 

ineligibility requirements; to obtain, enhance or increase an insurance guarantee or avoid a premium owed if a cause of loss exists 

or has occurred before any correction has been made; or to avoid 

an obligation or requirement under federal or state law. Section 

515(c)(3)(C) exempts errors corrected pursuant to this section from 

any late filing sanctions. (Section 11018) 

The Senate amendment amends section 515(c) of the Federal 

Crop Insurance Act to require the Corporation to establish procedures to allow an agent or an AIP to, within a reasonable amount 

of time after the sales closing date, correct errors in specified information that is provided by a producer to ensure the information is 

consistent with information reported to FSA. The section limits the 

ability to correct errors if allowance would allow the producer to obtain a disproportionate benefit under crop insurance or other 

USDA program, avoid ineligibility requirements for crop insurance, 

or avoid an obligation under federal or state law. (Section 11015) 


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The Conference substitute adopts the House provision but requires the Corporation to establish procedures to implement the 

authority to correct errors that are in addition to authorities to correct errors in place as of the day before the date of enactment of 

this Act. The substitute also clarifies that the authority granted 

under Section 508(c)(3)(A)(i) is also to ensure that the information 

is consistent with information reported by the producer for other 

programs administered by the Secretary. The substitute allows an 

agent or approved insurance provider to make corresponding corrections within a reasonable amount of time following the date of 

any correction by the FSA made as a result of the verification of 

information. The substitute also clarifies that at any time an agent 

or an approved insurance provider may correct their electronic 

transmission errors, or the electronic transmission errors of FSA or 

other USDA agencies to the extent that the agent or AIP relied on 

that information. The substitute also provides authority to allow a 

producer to make late payment for crop insurance under certain 

conditions. (Section 11019) 

The Managers would note that the authority to correct errors 

is in addition to any authorities to correct errors in existence on 

the day before the date of enactment of this Act, and that the additional authority provided under this section does not preclude the 

agency from administratively providing other additional authorities 

to correct errors. 

(21) Implementation 

Section 11020 requires the Secretary to maintain and upgrade 

information management systems used in the administration and 

enforcement of the FCIA. The section requires the Secretary to ensure that new hardware and software are compatible with the 

same used by other USDA agencies. The section requires the Secretary to develop and implement an acreage report streamlining 

initiative project. Mandatory funds are authorized by the section 

for systems upgrades ($25 million for FY2014 and $10 million for 

each fiscal year from FY2015 through FY2018) with additional 

funding (an additional $5 million for each fiscal year from FY2015 

through FY2018) made available upon completion of the Acreage 

Crop Reporting Streamlining Initiative (ACRSI). The section requires a report to the Agriculture Committees upon the substantial 

completion of ACRSI. (Section 11019) 

The Senate amendment is similar to the House provision and 

the funding levels are the same, except the expected completion 

date for ACRSI and the submission date of the report to the Agriculture Committees of Congress are different. (Section 11016) 

The Conference substitute adopts the House provision except 

with reduced funding levels, with $14 million in FY2014 and $9 

million in each fiscal year from FY2015 through FY2018 with an 

additional $5 million for each fiscal year from FY2015 through 

FY2018 if the specified conditions are met. (Section 11020) 

(22) Crop insurance fraud 

The Senate amendment amends section 516(b)(2) to require 

that beginning with the 2014 reinsurance year and for each reinsurance year thereafter, the Corporation may use up to $5 million 


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from the insurance fund to pay costs to reimburse expenses incurred for the review of policies, plans of insurance, and related 

materials and assist the Corporation in maintaining program integrity and, in addition to other amounts for this purpose, costs incurred by RMA for compliance operations. (Section 11017) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with 

modifications. The substitute provides that the Corporation may 

use from the insurance fund not more than $9 million for each of 

the 2014 and subsequent reinsurance years to reimburse expenses 

incurred for the operations and review of policies, plans of insurance, and related materials, and to assist the Corporation in maintaining program actuarial soundness and financial integrity. The 

substitute further provides that Secretary may, without further appropriation merge some or all of the funds made available under 

this subparagraph into the accounts of the Risk Management Agency and obligate those funds. The substitute also provides that the 

funds made available under this subparagraph are in addition to 

other funds made available for costs incurred by the Corporation. 

(Section 11021) 

(23), (24), (26) Research and development priorities, Additional Research and Development Contracting Requirements, Alfalfa 

Crop Insurance Policy 

The House bill authorizes the Corporation to conduct research 

and development in addition to current authority to enter into contracts for research and development. The section also makes underserved agricultural commodities, including sweet sorghum, biomass 

sorghum, rice, peanuts, sugarcane, alfalfa, pennycress, and specialty crops research and development priorities. (Section 11020) 

The Senate amendment is similar to the House provision but 

excludes rice, peanuts, alfalfa, and pennycress while adding dedicated energy crops. The section also requires the Corporation to follow consultation requirements before conducting research and development or entering into a contract. (Section 11028) 

The Conference substitute adopts the House provision and, 

within the same section, incorporates specific research and development requirements from section 10021 of the House bill and sections 11019, 11020, 11021, 11022, 11023, 11026 of the Senate bill, 

including House section 11021’s margin coverage for catfish (which 

is the same as Senate section 11022); House section 11021’s biomass and sweet sorghum energy crop insurance policies, which is 

similar to Senate section 11025; the House study on swine catastrophic disease program, which is similar to the study in Senate 

section 11021 except that under the Substitute the Corporation is 

required to contract with 1 or more qualified entities; the House 

whole farm diversified risk management insurance plan, which is 

similar to Senate section 11019, except that the Corporation is 

given up to two years to reach resolution before having to follow 

the directive of the section under the Substitute; the House section 

11021 study on poultry catastrophic disease program; the House 

section 11021 poultry business interruption insurance policy which 

is similar to Senate section 11023 except that under the Substitute 

any coverage is limited to a portion of losses; the House section 


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11021 study of food safety insurance which is similar to Senate section 11020; and Senate section 11026 regarding alfalfa crop insurance policy. (Section 11022) 

The Managers would note that sweet sorghum and biomass 

sorghum are listed as underserved commodities and intend that 

the Corporation give proper priority to the development and ultimate availability of coverage for these crops. The listing of rice and 

peanuts as underserved commodities also prioritizes development 

and availability of new policies serving these crops, including margin coverage for rice and revenue coverage for peanuts. 

The Managers recognize alfalfa to be an important domestic 

forage crop valued for nitrogen fixation, soil conservation, crop rotation, and as a natural habitat. The Managers view alfalfa as having great potential for the national cash hay market and as an affordable means of supporting the forage and intensive grazing 

needs of the horse, cattle, and dairy sectors. However, from 2002 

through 2011, alfalfa acreage has declined 15.7 percent, and in 

2012 alone acreage declined an additional 10 percent. The Managers stress the importance of an alfalfa crop insurance policy to 

ensure that producers have the risk management protection that 

they need to produce this important crop. The Managers urge the 

Secretary to include information regarding regional differences in 

cultivation in the alfalfa crop insurance study. 

In developing the whole farm diversified risk management insurance policy, the Managers recognize that the Corporation may 

include coverage for the value of any packing, packaging, or any 

other similar on-farm activity the Corporation determines to be the 

minimum required in order to remove the commodity from the 

field. Making a crop market-ready may require incidental on-farm 

processing that could occur either in-field or off-field. This activity 

includes packing, packaging, washing, labeling, trimming, and 

other similar activities that occur after harvest in order to ensure 

a marketable commodity. It is the Managers’ view that the production cost of such activities does not add value to the product beyond 

making it a saleable commodity. 

In conducting the study on food safety insurance, the Managers do not intend to delay RMA’s on-going efforts on these issues. 

The Managers are aware of existing RMA pilots on quarantine and 

encourages additional on-the-ground exploration into how risk 

management might work for quarantine in a specialty crop setting 

in both perennial and annual crops. The Managers acknowledge 

that naturally occurring food safety pathogens (a natural peril) 

could be insurable as cause of loss, but in light of the historical 

challenges of insuring these perils urges the agency to make examination of data collection into the extent and severity of these perils 

a priority for this report. The Managers likewise encourage RMA 

to continue to refine how crop insurance might protect against the 

risks associated by naturally occurring food safety pathogens. 

These risks could be associated with either revenue or yield and 

RMA’s on-the-ground product development should not be slowed by 

this study. This study is designed to help specialty crop producers 

and Congress understand how these risks are already being, or 

could be, addressed by the crop insurance system. Special emphasis 

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lieves are present that need to be overcome in order to create actuarially sound products as is required by statute, including, for example, data collection challenges that may be different or unique 

to specialty crops vis-a-vis row crops and the implementation of 

new insurance products on a pilot basis is encouraged as a part of 

an insurance-relevant data collection effort. 

In establishing appropriate maintenance payments under Section 522(b)(4)(D)(ii) of the Federal Crop Insurance Act, the Managers urge the Corporation to consider whether it is appropriate to 

establish such payments at an amount totaling not less than the 

greater of $10 per policy (as adjusted periodically for inflation); one 

half of one percent of the total risk premium applicable to the policy; or, if applicable, the fee per policy approved by the Board 

under this paragraph that was in effect for crop year 2013. 

(25) Study of crop insurance for seafood harvesters 

The Senate amendment requires the Corporation to conduct a 

feasibility study of insuring seafood harvesters and report to Congress on the results of the study. (Section 11024) 

The House bill contains no comparable provision. 

The Conference substitute deletes the Senate provision. 

(27) Crop insurance for organic crops 

The Senate amendment requires as soon as possible but not 

later than for the 2015 reinsurance year, the Corporation shall 

offer producers of organic crops price elections for all organic crops, 

produced in compliance with USDA standards, that reflect the retail or wholesale price, as appropriate. The provision requires the 

Corporation to then report to Congress on progress made in developing and improving crop insurance for organic crops. (Section 

11027) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 11023) 

(28) Program compliance partnerships 

The House bill provides that the purpose of subsection 522(d) 

of the Federal Crop Insurance Act is to authorize the Corporation 

to enter into partnerships with private and public entities for the 

purpose of either increasing availability of loss mitigation, financial, and other risk management tools for producers, with a priority 

given to risk management tools for producers covered by the NonInsured Assistance program (NAP), specialty crops, and underserved commodities or improving analysis tools and technology regarding compliance or identifying and using innovative compliance 

strategies. (Section 11022) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment that rewrites the purposes of section 522(d), as proposed in the House provision, and adds to the objectives provided 

under section 522(d)(3) the improvement of analysis tools and technology regarding compliance or identifying and using innovative 

compliance strategies. (Section 11024) 


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In expanding the Partnerships for Risk Management Development and Implementation to include both improving analytical 

tools and technology and using innovative strategies for compliance 

with the federal crop insurance program, the Managers urge the 

Corporation to utilize this new authority to provide the government 

and industry with additional options with regard to ensuring program compliance. 

(29) Index-based weather insurance pilot programs 

The Senate amendment authorizes $10 million in each of fiscal 

years 2014 through 2018 for the Corporation to conduct a pilot program to provide financial assistance for producers of underserved 

crops and livestock (including specialty crops) to purchase an 

index-based weather insurance product from a private insurance 

company. The Corporation may pay a portion of the premium but 

not in excess of 60 percent. The provision also provides certain eligibility requirements for providers, as well as procedures for administration of the pilot program. (Section 11030) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with 

modifications. The substitute defines livestock to include cattle, 

sheep, swine, goats, poultry, and pasture, rangeland, and forage as 

a source of a feed for livestock. The substitute authorizes the Corporation to conduct two or more pilot programs to provide producers of underserved specialty crops and livestock with indexbased weather insurance. The substitute requires the Board of the 

FCIC to approve two or more policies or plans of insurance of AIPs 

if the Board determines the pilot programs meet the requirements 

above and additional requirements that the AIPs must: have adequate experience underwriting and administering the kinds of policies proposed under the pilot; have sufficient assets or reinsurance 

and have sufficient credit rating; and have applicable authority and 

approval from each state in which the policy will be offered. Pilot 

program applications submitted pursuant to this section are required to be reviewed in a manner consistent with section 508(h) 

as well as the actuarial soundness requirements applied to other 

policies or plans of insurance. The substitute provides priority to 

pilot program policies that provide a new kind of coverage for specialty crops and livestock that have no available crop insurance or 

demonstrate low participation under available coverage. The substitute requires the Corporation to pay a percentage of premium, 

except that the premium support may not exceed 60 percent of 

total premium. The substitute prescribes the calculation of premium support and requires that the Corporation pay the premium 

support in the same manner and under the same terms and conditions as premium support for other policies. The Substitute authorizes A&O unless such costs are included in the premium but prohibits federal reinsurance, research and development cost reimbursement, or other reimbursements or maintenance fees. The substitute provides that the AIP that submitted the pilot program may 

offer the policy exclusively unless, in an exception to the prohibitions on fees, another AIP agrees to pay agreed upon maintenance 

fees that are reasonable and appropriate and the other AIP meets 

other eligibility requirements. The substitute requires the requireVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00557 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ments of paragraph (4) to be met notwithstanding confidentiality 

requirements in paragraph (6). The substitute establishes oversight 

requirements, provides for confidentiality, and prohibits any policy 

or plan of insurance to be approved if it is substantially similar to 

privately available hail insurance. The substitute provides $12.5 

million for each fiscal year 2015 through 2018 with such amounts 

to be made available until expended. The substitute clarifies that 

these amounts for the pilot program are in addition to amounts 

made available under other provisions in the Act. (Section 11026) 

The Managers note that many producers of specialty crops and 

livestock are not adequately served by the existing suite of crop insurance products and that alternative approaches, such as this provision, may be appropriate to extend insurance coverage to those 

producers. Further, the Managers would urge the Corporation to 

use this pilot authority to develop new expertise and collect as 

much information as possible about the future development and 

use the weather-based index insurance as a method for covering 

producers who are currently underserved by existing crop insurance products. Consistent with the requirements of this section, the 

Managers intend for RMA to look at states or regions where the 

level of crop insurance coverage for a particular commodity is significantly below the national average. 

(30) Enhancing producer self-help through farm financial 

benchmarking 

The Senate amendment adds ‘‘farm financial benchmarking’’ to 

the list of objectives under the partnerships authorized under section 522(d) and the education and risk management assistance authorized under section 524(a). (Section 11031) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 11027) 

(31) Limitation on premium subsidy based on average adjusted 

gross income 

The Senate amendment requires that, beginning with the 2014 

reinsurance year, the total amount of premium subsidy for additional coverage for any person or entity that has an average adjusted gross income in excess of $750,000 be 15 percentage points 

less than the premium subsidy that would otherwise be available 

for the applicable policy. This section would only take effect if the 

Secretary, in consultation with the Government Accountability Office, finds that the limitation would not: (1) significantly increase 

the amount of premium paid by producers with a lower AGI; (2) result in a decline in coverage available; and (3) increase the total 

cost of the federal crop insurance program. (Section 11033) 

The House bill contains no comparable provision. 

The Conference substitute deletes the Senate provision. 

(32) Agricultural management assistance, risk management education, and organic certification cost share assistance 

The House bill eliminates tree plantings and soil erosion control from the list of approved uses, and permanently authorizes the 

Agricultural Management Assistance Program at $10 million in 


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mandatory money each fiscal year. It sets aside 30 percent to 

NRCS for conservation, 10 percent to the Agricultural Marketing 

Service for organic certification, and 60 percent to the Risk Management Agency for risk management. (Section 2506) 

The Senate amendment eliminates the list of states eligible for 

agricultural management assistance and specified uses for such assistance and authorizes Agricultural Management Assistance, Risk 

Management Education, and Organic Certification Cost Share Assistance. The provision applies a payment limit of $50,000. The 

provision provides $23 million in mandatory funding for each of fiscal years 2014 through 2018. (Section 11034) 

The Conference substitute deletes both the House and Senate 

provisions. 

(33) Technical amendments 

The House bill strikes the crop insurance coverage requirement 

to receive certain benefits. The provision also eliminates the exclusion from assistance for losses due to drought conditions under the 

Livestock Forage Disaster Program. (Section 11024) 

The Senate amendment strikes the crop insurance coverage requirement to receive certain benefits. (Section 11036) 

The Conference substitute adopts the House provision with 

amendments to clarify that premium subsidy for area revenue and 

area yield plans are separately provided for, and that the Corporation must provide notice to Congress if it elects to renegotiate an 

SRA pursuant to section 508(k)(8)(A)(ii). (Section 11029) 

(34) Advance public notice of crop insurance policy and plan 

changes 

The House bill requires any changes to the terms and conditions of a policy to be published in the Federal Register at least 60 

days before June 30 for fall planted crops and at least 60 days before November 30 for spring planted crops. (Section 11025) 

The Senate amendment contains no comparable provision. 

The Conference substitute deletes the House provision. 

(35) Greater accessibility for crop insurance 

The Senate amendment requires that when issuing regulations 

and guidance relating to plans and policies of crop insurance, RMA 

and the Corporation use plain language, to the greatest extent 

practicable, as required under Executive Orders 12866 and 12988. 

The provision requires the Secretary to improve the website on 

which crop insurance information is disseminated and to report to 

Congress on efforts to accelerate compliance. (Section 11037) 

The House bill contains no comparable provision. 

The Conference substitute deletes the Senate provision. 

(36) GAO crop insurance fraud report 

The Senate amendment requires the Comptroller General of 

the United States, as soon as practicable after the date of enactment of this paragraph, to conduct and submit to Congress a report 

describing the results of a study regarding fraudulent claims filed 

and benefits provided under this subtitle. (Section 11038) 

The House bill contains no comparable provision. 


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The Conference substitute deletes the Senate provision. 

TITLE XII—MISCELLANEOUS

SUBTITLE A—LIVESTOCK

(1) Repeal of the National Sheep Industry Improvement Center 

The House bill repeals the National Sheep Industry Improvement Center. (Section 12101) 

The Senate amendment moves the Sheep Center from the Consolidated Farm and Rural Development Act to the Agricultural 

Marketing Act of 1946. It establishes a competitive grant program 

in the Agricultural Marketing Service to improve the sheep industry. It also provides $1,500,000 in Commodity Credit Corporation 

funds for fiscal year 2014, to remain available until expended. Additionally, the amendment increases the amount of funds that can 

be used for administration from 3 percent to 10 percent, and it 

eliminates the authorization of appropriations. (Section 12104) 

The Conference substitute adopts the Senate provision. (Section 12102) 

(2) Repeal of certain regulations under the Packers and Stockyards 

Act, 1921 

The House bill repeals the requirement to promulgate regulations with respect to the Packers and Stockyards Act; repeals the 

definition of additional capital investment; and prohibits enforcement of certain already promulgated regulations. (Section 12102) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(3) Country of origin labeling 

The House bill requires the Secretary to conduct an economic 

analysis of USDA’s March 12, 2013, proposed rule on country of origin labeling for beef, pork, and chicken. (Section 12105) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment to clarify that the analysis should be conducted on 

USDA’s final version of the rule. (Section 12104) 

(4) Repeal of duplicative catfish inspection program 

The House bill repeals section 11016 of the 2008 Farm Bill, 

thus no longer specifying catfish as amenable species and eliminating the grading program. (Section 12107) 

The Senate amendment contains no comparable provision. 

The Conference substitute amends section 11016 of the 2008 

Farm Bill by clarifying the definition of ‘‘catfish.’’ It also requires 

the Food Safety and Inspection Service (FSIS) and the Food and 

Drug Administration (FDA) to enter into a memorandum of understanding to ensure that inspections of dual jurisdiction facilities by 

the FSIS satisfy the requirements of the FDA, thereby preventing 

duplicative inspection oversight. (Section 12106) 

It is the intent of the Managers to ensure the safety of the 

American food supply from food containing dangerous contaminants and banned substances. The Conference substitute amends 


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section 11016 of the 2008 Farm Bill to address perceived concerns 

regarding duplication; to provide direction to the Secretary regarding covered species; and to otherwise expedite implementation. The 

Managers are aware that the inappropriate and unregulated use of 

chemicals and veterinary drugs in aquaculture in some countries 

raises questions regarding health effects. There exists scientific evidence that demonstrates that the use of substances such as malachite green, nitrofurans, fluoroquinolones, and gentian violet during the stages of production can result in continued presence in edible Siluriforme products. The Managers believe that continuous inspection of farm-raised fish species is a legitimate tool to address 

these concerns. The Managers believe that the catfish inspection 

program authorized in the 2008 farm bill is consistent with the 

principles of most-favored-nation and national treatment, in that 

U.S. and foreign producers, processors, and products would be 

treated equally. Therefore, implementation of the program should 

proceed, as it upholds World Trade Organization responsibilities. 

The Managers are aware of claims that implementation of the 

2008 mandate has been delayed due to confusion related to the definition of catfish to be utilized by the FSIS. The Conference substitute clarifies this definition in a manner that achieves consistency in the application of the program and avoids arbitrary or unjustifiable distinctions in the level of inspection. 

While the Managers fundamentally disagree with claims that 

a transfer of responsibility from one Federal agency to another 

somehow duplicates government oversight, the Managers are nevertheless sensitive to historical examples of bureaucratic jurisdictional conflict and have taken steps to address this concern. Specifically, the conference substitute directs the FSIS and FDA to exercise their existing authority to enter into a memorandum of understanding to improve interagency cooperation and to ensure that 

inspections of dual jurisdiction facilities by the FSIS satisfy the requirements of the FDA, thereby negating any requirement (real or 

perceived) for duplicative inspection oversight. Moreover, FSIS 

should work in collaboration with FDA to improve analysis and 

share information with regard to risk. The Managers are dissatisfied that the implementation process has already exceeded 5 years 

and see no barrier to FSIS completing this MOU and fully implementing the underlying inspection mandate within 60 days from 

the date of enactment of this Act. (Section 12106) 

(5) National Poultry Improvement Program 

The House bill requires the Secretary to administer the surveillance program for low pathogenic avian influenza for commercial poultry without amending the regulations for the governance 

of the General Conference Committee. Requires that the funding 

levels stay at FY 2013 levels. (Section 12108) 

The Senate amendment requires the Secretary to continue to 

administer the avian influenza surveillance program in commercial 

poultry through NPIP. Requires the Secretary to ensure it meets 

any relevant standards established by WTO. (Section 12107) 

The Conference substitute adopts the House provision with an 

amendment changing ‘‘Program’’ to ‘‘Plan’’ in the Section heading. 

(Section 12107) 


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(6) Report on bovine tuberculosis in Texas 

The House bill requires the Secretary to submit a report on the 

incidence of bovine tuberculosis in Texas from January 1, 1997 to 

December 31, 2013. (Section 12109) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(7) Economic fraud in wild and farm-raised seafood 

The House bill requires the Secretary to submit a report to 

Congress on the economic implications for consumers, fishermen, 

and aquaculturists of fraud and mislabeling of wild and farmraised seafood. The report must be submitted within 180 days. 

(Section 12110) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(8) Feral swine eradication pilot program 

The Senate amendment establishes a pilot program to study 

the extent of damage caused by feral swine and to develop methods 

to eradicate or control and to restore damage cause by feral swine. 

The amendment includes a 75 percent Federal cost-share, and it 

authorizes $2 million in appropriated funds for each of fiscal years 

2014 through 2018. (Section 12105) 

The House bill contains no comparable provision, authority expires. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment revises the language as a Sense of 

Congress urging the Secretary of Agriculture to recognize the 

threat feral swine pose to the agricultural industry and to 

prioritize eradication of feral swine. (Section 12108) 

SUBTITLE B—SOCIALLY DISADVANTAGED PRODUCERS AND LIMITED

RESOURCE PRODUCERS

(9) Socially Disadvantaged Farmers and Ranchers Policy Research 

Center 

The House bill requires the Secretary to establish a center for 

developing policy recommendations for the protection and promotion of the interests of socially disadvantaged farmers and 

ranchers. (Section 12203) 

The Senate amendment is similar to the House, but uses a 

competitive grant program. (Section 12002) 

The Conference substitute adopts the House provision. (Section 

12203) 

(10) Receipt for or denial of service from certain Department of Agriculture agencies 

The House bill requires USDA to provide a receipt for service 

to all persons requesting a benefit offered by the Department. (Section 12204) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

12204) 


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SUBTITLE C—OTHER MISC. PROVISIONS

(11) Program benefit eligibility status for participants in high 

plains water study 

The House bill amends Section 2901 to prohibit ineligibility for 

program benefits under the Federal Agriculture Reform and Risk 

Management Act of 2013 or an amendment made by that Act. (Section 12302) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

12302) 

The Managers recognize that the ongoing depletion of the 

Ogallala Aquifer is an acute concern for the eight States that depend on it for agricultural, domestic, industrial uses, and other 

uses. This provision will allow agricultural producers to participate 

in a one-time study of aquifer recharge potential that will help inform State and local water conservation investment and policy to 

aid in managing this critical aquifer. The study is narrowly focused 

on a small number of playa lakes situated on agricultural land over 

the Ogallala Aquifer. 

Playas are temporary wetlands unique to the High Plains of 

North America, numbering more than 60,000. Playas not only serve 

as the primary source of recharge for the Ogallala Aquifer, they are 

the most important wetland type for wildlife in this region. The 

Managers encourage the Department to further recognize the importance of playas through increased communication to landowners 

of the benefits of playas and conservation programs available. The 

Managers also encourage the Department to work with the Playa 

Lakes Joint Venture to enhance the use of such programs like CRP 

to help ensure the protection of playas. 

(12) Military Veterans Agricultural Liaison 

The House bill authorizes the position and duties of a Military 

Veterans Agricultural Liaison at the Department of Agriculture. 

(Section 12304) 

The Senate amendment provides the Liaison the additional authority to enter into contracts or cooperative agreements with the 

research centers of the Agricultural Research Service, institutions 

of higher education or nonprofit organizations for specific purposes. 

(Section 12201) 

The Conference substitute adopts the Senate provision. (Section 12304) 

(13) Prohibition on keeping GSA leased cars overnight 

The House bill prohibits Farm Service Agency employees that 

are issued government cars from taking the cars home overnight 

unless they are on official travel involving per diem. (Section 

12305) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(14) Noninsured Crop Assistance Program 

The House bill allows producers to obtain NAP coverage that 

is equivalent to additional coverage provided under subsections (c) 


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and (h) of the Federal Crop Insurance Act except the coverage level 

may not exceed 65 percent. The provision expands availability of 

NAP coverage for crops for which coverage under subsections (c) 

and (h) of the Federal Crop Insurance Act are not available and 

specifically includes sweet sorghum and biomass sorghum. The provision establishes a premium payment and application deadline 

date and requires the changes to NAP to become effective beginning with the 2015 crop. (Section 12306) 

The Senate amendment is similar to the House provision except the provision excludes crops and grasses used for grazing, as 

well as ferns and tropical fish. The provision increases NAP fees 

per crop per county, per producer per county, and the maximum fee 

amount. The provision provides additional availability of NAP with 

respect to producers suffering losses to their 2012 annual fruit crop 

grown on a bush or tree and producers suffering losses in a county 

covered by a Secretarial disaster declaration due to freeze and 

frost. The provision is repealed effective October 1, 2018 upon 

which date the provision shall be construed to have never been enacted, except the exclusions from coverage provided under the provision are made permanent. (Section 12204) 

The Conference substitute adopts the Senate provision except 

that crops and grasses for grazing may receive NAP coverage 

equivalent to CAT coverage but not additional coverage; sweet sorghum and biomass sorghum, including that which is grown for 

biofuels, renewable electricity, or biobased products is covered 

under NAP; the Secretary may waive the fees with respect to CAT 

equivalent NAP for beginning, limited resource, and socially disadvantaged farmers and these producers pay 50 percent less than 

otherwise required for additional coverage NAP; the applicable pay 

limit is included in the calculation of premium; the effective period 

for the provision is for the 2014 through 2018 crop years; and the 

Federal Crop Insurance Act is amended to exclude CAT coverage 

for crops and grasses uses for grazing. (Section 12305) 

The Managers would observe that NAP is made available with 

respect to crops for which crop insurance has not yet been made 

available. The Managers stress that it is the objective of Congress 

that all crops, to the maximum extent practicable and unless otherwise provided for in law, should ultimately be covered by crop insurance, rather than NAP, where producers pay actuarially sound 

premiums in consideration for coverage and where private sector 

delivery has proven very effective. The Managers intend that the 

additional financial resources and the adjustments to the policy 

submission process under section 508(h), the research and development process, and the pilot program process will achieve this goal. 

(15) Ensuring high standards for agency use of scientific information 

The House bill requires federal agencies, by January 1, 2014, 

to have in effect guidelines to ensure and to maximize the quality, 

objectivity, utility, and integrity of the scientific information upon 

which the agencies rely. It prohibits any policy decision issued by 

an agency after January 1, 2014, from taking effect unless such 

agency has in effect guidelines for use of scientific information that 


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have been approved by the Director of the White House Office of 

Science and Technology Policy. (Section 12307) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(16) Evaluation required for purposes of prohibition on closure or 

relocation of county office for the FSA 

The House bill requires a workload assessment before any 

Farm Service Agency county office closures take place. (Section 

12308) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(17) Acer Access and Development Program 

The House bill authorizes grants to state and tribal governments and research institutions for the purpose of promoting the 

domestic maple syrup industry. It authorizes $20 million in appropriated funds for each of fiscal years 2014 through 2018. (Section 

12309) 

The Senate amendment does not specify that the grants are 

run on a competitive basis and does not include research institutions as eligible for receiving grants. It authorizes appropriations 

for fiscal years 2014 and 2015. (Section 12208) 

The Conference substitute adopts the House provision. (Section 

12306) 

(18) Regulatory review by the Secretary of Agriculture 

The House bill requires the Secretary of Agriculture to review 

publications that provide notice of Environmental Protection Agency guidance, policy, memorandums, regulations or statements, for 

significant impacts on agricultural entities and then take certain, 

specified action. (Section 12310) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment authorizes a standing agriculture-related committee to provide scientific and technical advice to the 

science advisory committee and a report to Congress regarding the 

activities of the committee. (Section 12307) 

The Managers expect the Administrator to consider requests 

received from the House Committee on Agriculture or the Senate 

Committee on Agriculture, Nutrition and Forestry in regard to 

issues or questions that the Committees believe merit action by the 

agriculture-related standing committee. 

(19) Animal fighting venture 

The House bill amends Section 26(a)(1) of the Animal Welfare 

Act to prohibit knowingly attending an animal fighting venture or 

causing a minor to attend an animal fighting venture. Penalties are 

covered by existing authorities in 18 U.S.C. 49. (Section 12311) 

The Senate amendment is the same as the House. It confirms 

that penalties for violations are prescribed and enforced. The 

amendment sets the penalty for each violation for attending an animal fighting venture. It also sets the penalty for causing a minor 

to attend an animal fighting venture. (Section 12209) 


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The Conference substitute adopts the Senate provision with an 

amendment. The amendment changes the age of a minor from a 

person under the age of 18 years old to a person under the age of 

16 years old. (Section 12308) 

The Conference substitute amends the Animal Welfare Act by 

providing ‘‘that a dealer or exhibitor shall not be required to obtain 

a license as a dealer or exhibitor under this Act if the size of business is determined by the Secretary to be de minimus.’’ By limiting 

the scope of dealers and exhibitors who are required to obtain a license, the conference substitute allows the Secretary of Agriculture 

to focus the U.S. Department of Agriculture Animal and Plant 

Health Inspection Service’s limited budget and inspection and enforcement staff on entities that pose the greatest risks to animal 

welfare and public safety. USDA has found that no license is required for small-scale breeders of certain animals (i.e., those that 

maintain four or fewer breeding cats and dogs and who sell only 

the offspring of those animals which were born and raised on the 

premises for pets or exhibition) and the Conference substitute codifies this exemption, allowing USDA to determine that animal 

breeders who raise animals on their own premises need not obtain 

a license if the number of animals they breed or sell, or the gross 

annual dollar amounts earned from such activities, are so minor as 

to merit disregard. The Managers continue to recognize the importance of ensuring that all animals bred, transported, and sold in (or 

substantially affecting) interstate commerce are humanely treated. 

The Conference substitute also allows USDA to determine that certain exhibition businesses are de minimus. An exhibitor’s business 

must not be considered de minimus merely because the facility operates as a non-profit corporation, nor is the exhibition of a small 

number of dangerous animals (including, but not limited to, big 

cats, bears, wolves, nonhuman primates, or elephants) de minimus. 

The Managers expect APHIS to complete this rulemaking expeditiously and would suggest a timeframe not to exceed one year 

from the date of enactment in order that the agency begin receiving 

the benefit the policy provides related to resource allocation. Furthermore, by freeing up resources and more effectively focusing its 

regulatory program, the Managers observe that this policy eliminates a direct obstacle to lifting the stay on the agency’s contingency rule and issuance of the proposed rule to regulate bird dealers and exhibitors, and expect action to be taken on these rules 

without delay. 

The Animal Welfare Act (AWA or the Act, 7 U.S.C. 2131 et 

seq.) seeks to ensure the humane handling, care, treatment, and 

transportation of certain animals that are sold at wholesale and retail for use in research facilities, for exhibition purposes, or for use 

as pets by means of federal licensing and inspection. A revised definition of retail pet store included in the Final Rule published by 

USDA on September 10, 2013, and effective November 18, 2013, restored and amended the exemption in § 2.1(a)(3)(vii) so that any 

person including, but not limited to, purebred dog or cat fanciers, 

who maintains a total of four or fewer breeding female dogs, cats, 

and/or small exotic or wild mammals, and who sells, at retail, only 

the offspring of these dogs, cats, and/or small exotic or wild mammals, which were born and raised on his or her premises, for pets 


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or exhibition, and is not otherwise required to obtain a license, is 

also considered a retail pet store for regulatory purposes. 

The Managers are aware of confusion among the regulated industry and request clarification of two principles pertaining to the 

sale of pets: (1) Current regulatory language uses the term ‘‘breeding female’’ which does not appear in statute and thus lacks statutory direction. The Managers urge APHIS to clarify that only those 

female animals capable of reproduction and actively being used in 

a breeding program qualify as breeding females. (2) The Managers 

also recommend clarifying that USDA oversight of such sales pertains to those transactions in interstate commerce as provided for 

under the Commerce Clause (U.S. Const. amend. I, § 8.)] [and as 

referenced in § 2132(c) of the Animal Welfare Act and regulated 

under authority of the United States Department of Agriculture]. 

(20) Prohibition against interference by state and local governments 

with production or manufacture of items in other states 

The House bill prohibits any state or local government from 

setting standards or conditions on the production or manufacture 

of agricultural products and preventing interstate sales of such agricultural products. The term ‘‘agricultural product’’ is as defined in 

the Agricultural Marketing Act of 1946. (Section 12312) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(21) Increased protection for agricultural interests in the Missouri 

River basin 

The House bill directs the Secretary to take action to promote 

immediate increased flood protection to agricultural interests in the 

Missouri River basin. (Section 12313) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(22) Increased protection for agricultural interests in the Black Dirt 

region 

The House bill directs the Secretary to take action to promote 

immediate increased flood protection for agricultural interest 

around the Wallkill River and the Black Dirt region. (Section 

12314) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(23) Protection of honey bees and other pollinators 

The House bill requires the Secretary to carry out activities to 

protect and ensure the long-term viability of populations of honey 

bees, wild bees, and other beneficial insects of agricultural crops, 

horticultural plants, wild plants, and other plants. The bill directs 

the Secretary to establish a task force to coordinate Federal efforts 

addressing the decline in bee health and assess Federal efforts to 

mitigate pollinator loss. It requires the Secretary to report to Congress within 180 days from the date of enactment. The Secretary 

may conduct feasibility studies to consider relocating and modernizing pollinator research labs. (Section 12315) 

The Senate amendment contains no comparable provision. 


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The Conference substitute adopts the Senate provision. 

(24) Produce represented as grown in the US when it is not in fact 

grown in the US 

The House bill requires the Secretary to provide technical assistance to U.S. Customs and Border Protection for identifying 

produce that is falsely represented as grown in the United States. 

Requires the Secretary to submit to the Agriculture Committees a 

report on produce represented as grown in the U.S. (Section 12316) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision. (Section 

12309) 

(25) Urban agricultural coordination 

The House bill requires the Secretary to compile a list of programs for which urban farmers can apply, to adjust programs to 

enable urban farmers to participate, and to streamline the process 

for urban farmer participation. (Section 12317) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

Urban agriculture may include the use of backyard, roof-top, 

and balcony gardening, community gardening in vacant lots and 

parks, roadside urban fringe agriculture and livestock grazing in 

open space. 

The Managers are aware of the importance of urban agriculture to many urban residents, and its potential for increased entrepreneurship, work opportunities, access to nutritious food, and 

improved quality of life. 

The Managers are also aware that USDA has a number of resources and tools available that are applicable to urban farmers. 

The Managers encourage the Secretary to ensure that relevant 

USDA employees are knowledgeable regarding ways in which 

urban farmers can participate in their programs and include urban 

farmers in their ongoing outreach efforts to build awareness of the 

assistance and services that USDA can offer. 

The Managers also encourage USDA to consider additional 

ways to expand its support of urban agriculture, which may take 

the form of economic analysis, statistical reports, dissemination of 

best practices, in addition to the vast quantity of knowledge and 

assistance already available through USDA’s research, education 

and extension programs. 

(26) Sense of Congress on increased business opportunities for black 

farmers, women, minorities, and small business 

The House bill includes the sense of Congress that the Federal 

Government should increase the number of contracts awarded to 

black farmers, businesses owned and controlled by women, businesses owned and controlled by minorities, and small business concerns. (Section 12318) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

The Managers expect the Secretary to continue efforts to ensure that women and minority owned and controlled businesses 

and small businesses have the opportunity to do business with the 


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Department of Agriculture. The Conference Substitute continues efforts to ensure that socially-disadvantaged, beginning, and limited 

resource farmers and ranchers are aware of the programs and services available to them through USDA offices and initiatives. 

(27) Sense of Congress on agricultural security problems 

The House bill includes the sense of Congress that nutrients 

and chemicals play an important role in agricultural production. 

The Secretary should coordinate with the Department of Homeland 

Security to develop regulations and procedures to handle these agricultural chemicals. (Section 12319) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

Federal agencies have recently proposed a number of regulations in an effort to secure potentially dangerous amounts of chemical ingredients without hampering legitimate use in commercial 

grade fertilizers. While the Managers support regulations to properly secure, store and handle such ingredients, there are valid concerns that proposed regulations could unnecessarily impede American farmers’ access to essential crop input products. 

The Managers remind the Office of Homeland Security and 

Emergency Coordination within the Department of Agriculture’s 

Office of the Secretary to actively work with the Federal departments and agencies responsible for the development and implementation of security programs that affect the availability, storage, 

transportation and use of a variety of chemicals and products used 

in agriculture. 

The Managers recommend that the Office regularly engage 

with the Federal agencies responsible for establishing security programs to ensure they have the information necessary from manufacturers, retailers of crop input products, and the general farm 

community to develop procedures for effective security administration and enforcement while minimizing the potential for adverse 

impact on domestic agricultural productivity. 

(28) Report on water sharing 

The House bill requires the Secretary of State to submit a report to Congress on Mexico’s Rio Grande water deliveries to the 

U.S., and the benefits to the U.S. of cooperation with Mexico on 

reservoir conservation in the Colorado River basin. The report is 

due 120 days from the date of enactment. (Section 12320) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment to strike from the report the paragraph relating to the 

benefits to the U.S. (Section 12310) 

(29) Scientific and economic analysis of the FDA Food Safety Modernization Act 

The House bill requires the Secretary of Health and Human 

Services to provide a scientific economic analysis for the Food Safety Modernization Act (FSMA) before enforcing final regulations and 

to report to the Agriculture Committees on the impact of implementation of FSMA one year after date of enactment of the Farm 

Bill. (Section 12321) 


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The Senate amendment contains no comparable provision. 

The Conference substitute adopts the House provision with an 

amendment. The amendment eliminates the prohibition of enforcement of the regulations and instead simply requires the Secretary, 

when publishing the final rule on Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption, 

to include analysis of the information used in promulgating the 

final rule; an analysis on the economic impact of the rule; and a 

plan to evaluate any impacts and respond to producer concerns. 

The amendment further limits the reporting requirement from an 

annual report on the FDA Food Safety Modernization Act to two 

reports on the plan to evaluate the impact of the produce provisions and the evaluation and response to concerns, specifically. 

(Section 12311) 

(30) Improved Department of Agriculture consideration of economic 

impact of regulation on small business 

The House bill requires the Secretary to complete the procedures consistent with 5 U.S.C. 609(b) when it promulgates any rule 

that will have a significant economic impact on small entities. (Section 12322) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(31) Silvicultural activities 

The House bill restores the specified silvicultural activities to 

nonpoint source status by exempting the listed activities from permits and the discretionary authority of the Environmental Protection Agency (EPA) under section 402(p)(6) of the Clean Water Act 

(CWA). (Section 12323) 

The Senate bill contains no comparable provisions. 

The Conference substitute adopts the House provision with an 

amendment. The amendment clarifies that the exemption applies 

to permits but does not extend to other authorities, including CWA 

section 402(p)(6). It further provides that the specific silvicultural 

activities are excluded from citizen enforcement actions under section 505(a) of the CWA (Section 12313) 

The managers believe that that substitute will help resolve 

legal and economic uncertainty, and also help ensure that forests 

continue to provide important public benefits, like good paying jobs, 

renewable consumer products, and outdoor recreational opportunities. 

The Conference substitute provides legal and economic certainty by codifying the EPA’s long-standing policy that the specified 

silvicultural activities do not require a National Pollutant Discharge Elimination System (NPDES) permit. The amendment explicitly excludes the specified activities from the NPDES permit requirement. The substitute also recognizes that these activities are 

standard industry practice, which refers to normal silviculture as 

practiced in each state. 

The substitute leaves EPA authority to take measures regarding these activities if future circumstances demonstrate the need to 

address adverse impacts to water quality caused by point source 

discharges of stormwater from silvicultural activities. The ManVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00570 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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agers expect the Agency to exercise this authority based on identified threats to water quality. 

The Conference substitute amends the savings provisions. The 

House bill reiterated clarification provided in the EPA Silviculture 

Rule that the amendment does not affect the regulation of dredged 

and fill discharges under CWA section 404. The Managers clarify 

that nothing in the provision should be construed to affect any existing NPDES permit requirement, nor should it be construed to affect any other application of Federal law to these activities. 

By defining these silvicultural activities as nonpoint sources in 

1976, EPA effectively excluded them from citizen enforcement actions under CWA section 505. The Conference substitute recognizes 

this by excluding any program adopted by EPA under section 

402(p)(6) for the specified silvicultural activities from citizen enforcement actions under CWA section 505. The Managers ensure 

that no EPA measure adopted to address runoff associated with the 

specified silvicultural activities as expressly described in this section will be considered an effluent limitation subject to citizen enforcement actions under CWA section 505. 

(32) Applicability of spill prevention, control, and countermeasure 

rule 

The House bill amends the volume threshold that would require a Professional Engineer to certify a Spill Prevention, Control, 

and Countermeasure (SPCC) plan to farms with individual aboveground storage tanks larger than 10,000 gallons, aggregate aboveground storage of greater than 42,000 gallons, or a history of spills. 

Farms with aggregate aboveground storage of more than 10,000 

gallons, but less than 42,000 gallons, and no spill history may selfcertify. Farms with less than 10,000 gallons and no spill history 

are exempt from all SPCC requirements. For calculating aboveground storage capacity, containers on separate parcels of less than 

1,320 gallons and containers approved by FDA for livestock feed 

are exempt. (Section 12324) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(33) Agricultural producer information disclosure 

The House bill prohibits the Environmental Protection Agency 

(EPA) from publicly disclosing names, telephone numbers, email 

addresses, physical addresses, GPS coordinates, or other identifying information of any owner, operator, or employee of an agricultural or livestock operation. The prohibition does not apply when: 

(1) information is in a statistical or aggregated form at the county 

or higher level; (2) the producer consents; or (3) a state agency has 

the authority to collect data. EPA is prohibited from requiring information disclosure for the purposes of the approval of a permit, 

practice, or program administered by the agency. (Section 12325) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(34) Report on National Ocean Policy 

The House bill requires that the Inspector General of USDA 

submit to the Agriculture Committees, within 90 days after enactVerDate Mar 15 2010 06:04 Jan 29, 2014 Jkt 086435 PO 00000 Frm 00571 Fmt 6601 Sfmt 6601 E:\HR\OC\HR333.XXX HR333

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ment, a report on the activities and resources expended on Executive Order 13547 since July 19, 2010. The report shall include any 

budget requests for FY2014 for the implementation of the executive 

order. (Section 12326) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(35) Sunsetting of programs 

The House bill sunsets all discretionary programs in the Farm 

Bill upon expiration of the five-year authorization. (Section 12327) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

(36) Information gathering 

The Senate amendment requires the disclosure of information 

to state and local agencies or subdivisions as needed to implement 

state programs. Information can only be used by the state and is 

not subject to citizen request. (Section 12202) 

The House bill contains no comparable provision. 

The Conference substitute adopts the House provision. 

(37) Bioenergy coverage in noninsured crop assistance program 

The Senate amendment adds industrial crops grown expressly 

for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased products to the list of included 

crops under the Noninsured Crop Assistance Program. (Section 

12205) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision. (Section 12305) 

(38) Pima Cotton Trust Fund 

The Senate amendment establishes a trust fund in the Treasury, funded through appropriations, for the Secretary to make payments to nationally recognized associations that promote pima cotton use, yarn spinners who produced ring spun cotton from January 1, 1998 to December 21, 2003, and manufacturers who cut and 

sew cotton shirts and used imported cotton fabric from January 1, 

1998 through July 1, 2003. Payments to spinners and manufacturers are based on a production ratio and must be certified through 

affidavit. (Section 12210) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment alters the funding mechanism for the 

Trust Fund to use funds from the Commodity Credit Corporation. 

(Section 12314) 

(39) Agricultural Wool Apparel Manufacturers Trust Fund 

The Senate amendment establishes a trust fund in the Treasury, funded through appropriations, for the Secretary to make payments to eligible manufacturers under paragraphs (3) and (6) of 

section 4002(c) of the Wool Suit and Textile Trade Extension Act 

of 2004. Payments are to be made to eligible manufacturers for 

years 2010–2013, no later than 30 days after funds are transferred 


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to the trust fund. For years 2014–2019, payments are to be made 

no later than April 15 of the year of payment. (Section 12211) 

The House bill contains no comparable provision. 

The Conference substitute adopts the Senate provision with an 

amendment. The amendment alters the funding mechanism for the 

Trust Fund to use funds from the Commodity Credit Corporation. 

(Section 12315) 

(40) Citrus Disease Research and Development Trust Fund 

The Senate amendment establishes a trust fund in the Treasury, funded through appropriations, for the Secretary to make payments to entities engaged in 1) scientific research on diseases and 

pests; 2) the dissemination and commercialization of relevant information, techniques, or technology to solve citrus production disease 

or pest problems; and 3) the Citrus Disease Research and Development Trust Fund Advisory Board, if established. The Citrus Advisory Board would have five members from Florida, three from Arizona or California, and one from Texas. Not more than 5 percent 

of the Citrus Trust Fund may be used for the operations of the advisory board. The Secretary shall give strong deference to funding 

research projects on the proximity of citrus producers and the effects of such diseases as huanglongbing (citrus greening). (Section 

12212) 

The House bill contains no comparable provision. 

The Conference substitute amends and moves this provision to 

Title VII. (Sections 7103 & 7306) 

SUBTITLE D—CHESAPEAKE BAY ACCOUNTABILITY AND RECOVERY

(41) Chesapeake Bay Accountability Act of 2013 

The House bill requires the Director of OMB to submit to Congress a crosscut budget on federal and state restoration activities 

in the Chesapeake Bay. It requires the Administrator of the Environmental Protection Agency (EPA) to develop a plan to provide assistance to Chesapeake Bay States to employ adaptive management in carrying out restoration activities. The Administrator shall 

update the plan every two years and report annually to Congress 

on the implementation of the plan. The amendment also requires 

the Administrator to appoint an Independent Evaluator to review 

and report on restoration activities and the use of adaptive management in the Chesapeake Bay watershed. (Section 12401) 

The Senate amendment contains no comparable provision. 

The Conference substitute adopts the Senate provision. 

The Managers continue to support the efforts of farmers in the 

Chesapeake Bay watershed to reduce nutrient and sediment runoff. 

The Managers made significant investments in Title II programs 

aimed at providing financial and technical assistance to producers 

within the watershed. The Managers note the newly-created Regional Conservation Partnership Program which will provide USDA 

additional authorities to promote conservation practices within the 

watershed. 


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COMPLIANCE WITH RULES OF THE HOUSE OF REPRESENTATIVES AND SENATE REGARDING EARMARKS AND CONGRESSIONAL DIRECTED SPENDING ITEMS 

Pursuant to clause 9 of rule XXI of the Rules of the House of 

Representatives and Rule XLIV of the Standing Rules of the Senate, neither this conference report nor the accompanying joint 

statement of managers contains any congressional earmarks, congressionally directed spending items, limited tax benefits, or limited tariff benefits, as defined in such rules. 

From the Committee on Agriculture, for consideration of 

the House amendment and the Senate amendment, and 

modifications committed to conference: 

FRANK D. LUCAS, RANDY NEUGEBAUER, MIKE ROGERS of Alabama, 

MICHAEL K. CONAWAY, GLENN THOMPSON of 

Pennsylvania, 

AUSTIN SCOTT, ERIC A. ‘‘RICK’’ CRAWFORD, MARTHA ROBY, 

KRISTI L. NOEM, 

JEFF DENHAM, 

RODNEY DAVIS of Illinois, 

COLLIN C. PETERSON, 

MIKE MCINTYRE, 

JIM COSTA, 

TIMOTHY J. WALZ, 

KURT SCHRADER, 

SUZAN K. DELBENE, 

GLORIA NEGRETE MCLEOD, 

FILEMON VELA, 

From the Committee on Foreign Affairs, for consideration 

of title III of the House amendment, and title III of the 

Senate amendment, and modifications committed to conference: 

EDWARD R. ROYCE, 

TOM MARINO, 

ELIOT L. ENGEL, 

From the Committee on Ways and Means, for consideration of secs. 1207 and 1301 of the House amendment, and 

secs. 1301, 1412, 1435, and 4204 of the Senate amendment, and modifications committed to conference: 

DAVE CAMP, 

SAM JOHNSON of Texas, 

For consideration of the House amendment and the Senate 

amendment, and modifications committed to conference: 

STEVE SOUTHERLAND II, 

MARCIA L. FUDGE, 

Managers on the Part of the House. 

DEBBIE STABENOW, 

PATRICK J. LEAHY, 

TOM HARKIN, 


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MAX BAUCUS, SHERROD BROWN, AMY KLOBUCHAR, MICHAEL F. BENNET, THAD COCHRAN, SAXBY CHAMBLISS, JOHN BOOZMAN, JOHN HOEVEN, Managers on the Part of the Senate. 

Æ 


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