In the Senate of the United States, 

July 18, 2013. 

Resolved, That the bill from the House of Representatives (H.R. 2642) entitled ‘‘An Act 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.’’, do pass with the following 

AMENDMENT: 

Strike out all after the enacting clause and insert: 

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) IN GENERAL.—This Act may be cited as the ‘‘Agri3 culture Reform, Food, and Jobs Act of 2013’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary. 

TITLE I—COMMODITY PROGRAMS 

Subtitle A—Repeals and Reforms 

Sec. 1101. Repeal of direct payments. 

Sec. 1102. Repeal of counter-cyclical payments. 

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

Sec. 1104. Definitions. 

Sec. 1105. Base acres. 
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Sec. 1106. Payment yields. 

Sec. 1107. Availability of adverse market payments. 

Sec. 1108. Agriculture risk coverage. 

Sec. 1109. Producer agreement required as condition of provision of payments. 

Sec. 1110. Period of effectiveness. 

Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 

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

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

Sec. 1203. Term of loans. 

Sec. 1204. Repayment of loans. 

Sec. 1205. Loan deficiency payments. 

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

Sec. 1207. Economic adjustment assistance to users of 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 program. 

Subtitle D—Dairy 

PART I—DAIRY PRODUCTION MARGIN PROTECTION AND DAIRY MARKET

STABILIZATION PROGRAMS

Sec. 1401. Definitions. 

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

SUBPART A—DAIRY PRODUCTION MARGIN PROTECTION PROGRAM

Sec. 1411. Establishment of dairy production margin protection program. 

Sec. 1412. Participation of dairy operations in production margin protection 

program. 

Sec. 1413. Production history of participating dairy operations. 

Sec. 1414. Basic production margin protection. 

Sec. 1415. Supplemental production margin protection. 

Sec. 1416. Effect of failure to pay administration fees or premiums. 

SUBPART B—DAIRY MARKET STABILIZATION PROGRAM

Sec. 1431. Establishment of dairy market stabilization program. 

Sec. 1432. Threshold for implementation and reduction in dairy payments. 

Sec. 1433. Milk marketings information. 

Sec. 1434. Calculation and collection of reduced dairy operation payments. 

Sec. 1435. Remitting funds to the Secretary and use of funds. 

Sec. 1436. Suspension of reduced payment requirement. 

Sec. 1437. Enforcement. 

Sec. 1438. Audit requirements. 

Sec. 1439. Study; report. 

SUBPART C—ADMINISTRATION

Sec. 1451. Duration. 
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Sec. 1452. Administration and enforcement. 

PART II—DAIRY MARKET TRANSPARENCY

Sec. 1461. Dairy product mandatory reporting. 

Sec. 1462. Federal milk marketing order program pre-hearing procedure for Class 

III pricing. 

PART III—REPEAL OR REAUTHORIZATION OF OTHER DAIRY-RELATED

PROVISIONS

Sec. 1471. Repeal of dairy product price support and milk income loss contract 

programs. 

Sec. 1472. Repeal of dairy export incentive program. 

Sec. 1473. Extension of dairy forward pricing program. 

Sec. 1474. Extension of dairy indemnity program. 

Sec. 1475. Extension of dairy promotion and research program. 

Sec. 1476. Extension of Federal Milk Marketing Order Review Commission. 

PART IV—FEDERAL MILK MARKETING ORDER REFORM

Sec. 1481. Federal milk marketing orders. 

PART V—EFFECTIVE DATE

Sec. 1491. Effective date. 

Subtitle E—Supplemental Agricultural Disaster Assistance Programs 

Sec. 1501. Supplemental agricultural disaster assistance programs. 

Subtitle F—Administration 

Sec. 1601. Administration generally. 

Sec. 1602. Suspension of permanent price support authority. 

Sec. 1603. Payment limitations. 

Sec. 1604. Payments limited to active farmers. 

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. Appeals. 

Sec. 1610. Technical corrections. 

Sec. 1611. Assignment of payments. 

Sec. 1612. Tracking of benefits. 

Sec. 1613. Signature authority. 

Sec. 1614. Implementation. 

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. 
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Sec. 2006. Contract requirements. 

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

Sec. 2008. Effective date. 

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. Effective date. 

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 assistance. 

Sec. 2508. Study of potential improvements to the wetland mitigation process. 

Sec. 2509. Soil and water resource 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 for conservation programs. 

Sec. 2607. Rulemaking authority. 

Sec. 2608. Standards for State technical committees. 

Sec. 2609. Highly erodible land and wetland conservation for crop insurance. 

Sec. 2610. Adjusted gross income limitation for conservation programs. 

Subtitle H—Repeal of Superseded Program Authorities and Transitional 

Provisions 

Sec. 2701. Comprehensive conservation enhancement program. 

Sec. 2702. Emergency forestry conservation reserve program. 
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Sec. 2703. Wetlands reserve program. 

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

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. Technical amendments. 

TITLE III—TRADE 

Subtitle A—Food for Peace Act 

Sec. 3001. Set-aside for support for organizations through which nonemergency 

assistance is provided. 

Sec. 3002. Food aid quality. 

Sec. 3003. Minimum levels of assistance. 

Sec. 3004. Reauthorization of Food Aid Consultative Group. 

Sec. 3005. Oversight, monitoring, and evaluation of Food for Peace Act programs. 

Sec. 3006. Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods. 

Sec. 3007. Limitation on total volume of commodities monetized. 

Sec. 3008. Flexibility. 

Sec. 3009. Procurement, transportation, testing, and storage of agricultural commodities for prepositioning in the United States and foreign 

countries. 

Sec. 3010. Deadline for agreements to finance sales or to provide other assistance. 

Sec. 3011. Minimum level of nonemergency food assistance. 

Sec. 3012. Coordination of foreign assistance programs report. 

Sec. 3013. Micronutrient fortification programs. 

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

Sec. 3015. Prohibition on assistance for North Korea. 

Subtitle B—Agricultural Trade Act of 1978 

Sec. 3101. Export credit guarantee programs. 

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. 

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. Donald Payne Horn of Africa food resilience program. 

Sec. 3209. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. 
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TITLE IV—NUTRITION 

Subtitle A—Supplemental Nutrition Assistance Program 

Sec. 4001. Access to Grocery Delivery for Homebound Seniors and Individuals 

with Disabilities eligible for supplemental nutrition assistance 

benefits. 

Sec. 4002. Food distribution program on Indian reservations. 

Sec. 4003. Standard utility allowances based on the receipt of energy assistance 

payments. 

Sec. 4004. Eligibility disqualifications. 

Sec. 4005. Ending supplemental nutrition assistance program benefits for lottery 

or gambling winners. 

Sec. 4006. Retail food stores. 

Sec. 4007. Improving security of food assistance. 

Sec. 4008. Technology modernization for retail food stores. 

Sec. 4009. Use of benefits for purchase of community-supported agriculture share. 

Sec. 4010. Restaurant meals program. 

Sec. 4011. Quality control standards. 

Sec. 4012. Performance bonus payments. 

Sec. 4013. Funding of employment and training programs. 

Sec. 4014. Authorization of appropriations. 

Sec. 4015 Assistance for community food projects. 

Sec. 4016. Emergency food assistance. 

Sec. 4017. Nutrition education. 

Sec. 4018. Retail food store and recipient trafficking. 

Sec. 4019. Technical and conforming amendments. 

Sec. 4020. Eligibility disqualifications for certain convicted felons. 

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. Seniors farmers’ market nutrition program. 

Sec. 4203. Nutrition information and awareness pilot program. 

Sec. 4204. Hunger-free communities. 

Sec. 4205. Healthy Food Financing Initiative. 

Sec. 4206. Pulse crop products. 

Sec. 4207. Dietary Guidelines for Americans. 

Sec. 4208. Purchases of locally produced foods. 

Sec. 4209. Multiagency task force. 

Sec. 4210. Food and Agriculture Service Learning Program. 

TITLE V—CREDIT 

Subtitle A—Farmer Loans, Servicing, and Other Assistance Under the 

Consolidated Farm and Rural Development Act 

Sec. 5001. Farmer loans, servicing, and other assistance under the Consolidated 

Farm and Rural Development Act. 
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Subtitle B—Miscellaneous 

Sec. 5101. State agricultural mediation programs. 

Sec. 5102. Loans to purchasers of highly fractionated land. 

Sec. 5103. Removal of duplicative appraisals. 

Sec. 5104. Compensation disclosure by Farm Credit System institutions. 

TITLE VI—RURAL DEVELOPMENT 

Subtitle A—Reorganization of the Consolidated Farm and Rural Development 

Act 

Sec. 6001. Reorganization of the Consolidated Farm and Rural Development Act. 

Sec. 6002. Conforming amendments. 

Subtitle B—Rural Electrification 

Sec. 6101. Definition of rural area. 

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. 

Subtitle C—Miscellaneous 

Sec. 6201. Distance learning and telemedicine. 

Sec. 6202. Definition of rural area for purposes of the Housing Act of 1949. 

Sec. 6203. Rural energy savings program. 

Sec. 6204. Funding of pending rural development loan and grant applications. 

Sec. 6205. Study of rural transportation issues. 

Sec. 6206. Agricultural transportation policy. 

Sec. 6207. Value-added agricultural market development program grants. 

TITLE VII—RESEARCH, EXTENSION, AND RELATED MATTERS 

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

Act of 1977 

Sec. 7101. National Agricultural Research, Extension, Education, and Economics 

Advisory Board. 

Sec. 7102. Specialty crop committee. 

Sec. 7103. Veterinary services grant program. 

Sec. 7104. Grants and fellowships for food and agriculture sciences education. 

Sec. 7105. Agricultural and food policy research centers. 

Sec. 7106. Education grants to Alaska Native serving institutions and Native 

Hawaiian serving institutions. 

Sec. 7107. Nutrition education program. 

Sec. 7108. Continuing animal health and disease research programs. 

Sec. 7109. Grants to upgrade agricultural and food sciences facilities at 1890 

land-grant colleges, including Tuskegee University. 

Sec. 7110. Grants to upgrade agricultural and food sciences facilities and equipment at insular area land-grant institutions. 

Sec. 7111. Hispanic-serving institutions. 

Sec. 7112. Competitive grants for international agricultural science and education programs. 

Sec. 7113. University research. 

Sec. 7114. Extension service. 

Sec. 7115. Supplemental and alternative crops. 
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Sec. 7116. Capacity building grants for NLGCA institutions. 

Sec. 7117. Aquaculture assistance programs. 

Sec. 7118. Rangeland research programs. 

Sec. 7119. Special authorization for biosecurity planning and response. 

Sec. 7120. Distance education and resident instruction grants program for insular area institutions of higher education. 

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. Agricultural Genome Initiative. 

Sec. 7208. High-priority research and extension initiatives. 

Sec. 7209. Organic agriculture research and extension initiative. 

Sec. 7210. Farm business management. 

Sec. 7211. Regional centers of excellence. 

Sec. 7212. Assistive technology program for farmers with disabilities. 

Sec. 7213. 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. 

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

caused by Fusarium graminearum or by Tilletia indica. 

Sec. 7304. Grants for youth organizations. 

Sec. 7305. Specialty crop research initiative. 

Sec. 7306. Food animal residue avoidance database program. 

Sec. 7307. Office of pest management policy. 

Sec. 7308. Authorization of regional integrated pest management centers. 

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. Enhanced use lease authority pilot program under Department of Agriculture Reorganization Act of 1994. 

Sec. 7406. Renewable Resources Extension Act of 1978. 

Sec. 7407. National Aquaculture Act of 1980. 

Sec. 7408. Beginning farmer and rancher development program under Farm Security and Rural Investment Act of 2002. 

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

PART I—AGRICULTURAL SECURITY

Sec. 7501. Agricultural biosecurity communication center. 
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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

Sec. 7511. Grazinglands research laboratory. 

Sec. 7512. Budget submission and funding. 

Sec. 7513. Natural products research program. 

Sec. 7514. Sun grant program. 

Subtitle F—Miscellaneous 

Sec. 7601. Foundation for Food and Agriculture Research. 

Sec. 7602. Agricultural and food law research, legal tools, and information. 

TITLE VIII—FORESTRY 

Subtitle A—Repeal of Certain Forestry Programs 

Sec. 8001. Forest land enhancement program. 

Sec. 8002. Hispanic-serving institution agricultural land national resources leadership program. 

Sec. 8003. Tribal watershed forestry assistance program. 

Subtitle B—Reauthorization of Cooperative Forestry Assistance Act of 1978 

Programs 

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

Subtitle C—Reauthorization of Other Forestry-Related Laws 

Sec. 8201. Rural revitalization technologies. 

Sec. 8202. Office of International Forestry. 

Sec. 8203. Insect and disease infestation. 

Sec. 8204. Stewardship end result contracting projects. 

Sec. 8205. Healthy forests reserve program. 

Subtitle D—Miscellaneous Provisions 

Sec. 8301. McIntire-Stennis Cooperative Forestry Act. 

Sec. 8302. Revision of strategic plan for forest inventory and analysis. 

Sec. 8303. Reimbursement of fire funds. 

TITLE IX—ENERGY 

Sec. 9001. Definitions. 

Sec. 9002. Biobased markets program. 

Sec. 9003. Biorefinery, renewable chemical, and biobased product manufacturing 

assistance. 

Sec. 9004. Bioenergy program for advanced biofuels. 

Sec. 9005. Biodiesel fuel education program. 

Sec. 9006. Rural Energy for America Program. 

Sec. 9007. Biomass research and development. 

Sec. 9008. Feedstock flexibility program for bioenergy producers. 

Sec. 9009. Biomass Crop Assistance Program. 

Sec. 9010. Repeal of forest biomass for energy. 

Sec. 9011. Community wood energy program. 
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Sec. 9012. Repeal of renewable fertilizer study. 

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. Study on local food production and program evaluation. 

Sec. 10005. Organic agriculture. 

Sec. 10006. Food safety education initiatives. 

Sec. 10007. Coordinated plant management program. 

Sec. 10008. Specialty crop block grants. 

Sec. 10009. Recordkeeping, investigations, and enforcement. 

Sec. 10010. Report on honey. 

Sec. 10011. Removal of AMS inspection authority over apples in bulk bins. 

Sec. 10012. Organic product promotion orders. 

Sec. 10013. Effective date. 

TITLE XI—CROP INSURANCE 

Sec. 11001. Supplemental coverage option. 

Sec. 11002. Crop margin coverage option. 

Sec. 11003. Premium amounts for catastrophic risk protection. 

Sec. 11004. Permanent enterprise unit. 

Sec. 11005. Enterprise units for irrigated and nonirrigated crops. 

Sec. 11006. Data collection. 

Sec. 11007. Adjustment in actual production history to establish insurable yields. 

Sec. 11008. Submission and review of policies. 

Sec. 11009. Board review and approval. 

Sec. 11010. Consultation. 

Sec. 11011. Budget limitations on renegotiation of the Standard Reinsurance 

Agreement. 

Sec. 11012. Test weight for corn. 

Sec. 11013. Stacked Income Protection Plan for producers of upland cotton. 

Sec. 11014. Peanut revenue crop insurance. 

Sec. 11015. Authority to correct errors. 

Sec. 11016. Implementation. 

Sec. 11017. Crop insurance fraud. 

Sec. 11018. Approval of costs for research and development. 

Sec. 11019. Whole farm risk management insurance. 

Sec. 11020. Study of food safety insurance. 

Sec. 11021. Crop insurance for livestock. 

Sec. 11022. Margin coverage for catfish. 

Sec. 11023. Poultry business disruption insurance policy. 

Sec. 11024. Study of crop insurance for seafood harvesters. 

Sec. 11025. Biomass and sweet sorghum energy crop insurance policies. 

Sec. 11026. Alfalfa crop insurance policy. 

Sec. 11027. Crop insurance for organic crops. 

Sec. 11028. Research and development. 

Sec. 11029. Pilot programs. 

Sec. 11030. Index-based weather insurance pilot program. 

Sec. 11031. Enhancing producer self-help through farm financial benchmarking. 

Sec. 11032. Beginning farmer and rancher provisions. 

Sec. 11033. Limitation on premium subsidy based on average adjusted gross income. 
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Sec. 11034. Agricultural management assistance, risk management education, 

and organic certification cost share assistance. 

Sec. 11035. Crop production on native sod. 

Sec. 11036. Technical amendments. 

Sec. 11037. Greater accessibility for crop insurance. 

Sec. 11038. GAO crop insurance fraud report. 

TITLE XII—MISCELLANEOUS 

Subtitle A—Socially Disadvantaged Producers and Limited Resource Producers 

Sec. 12001. Outreach and assistance for socially disadvantaged farmers and 

ranchers and veteran farmers and ranchers. 

Sec. 12002. Socially disadvantaged farmers and ranchers policy research center. 

Sec. 12003. Office of Advocacy and Outreach. 

Subtitle B—Livestock 

Sec. 12101. Wildlife reservoir zoonotic disease initiative. 

Sec. 12102. Trichinae certification program. 

Sec. 12103. National Aquatic Animal Health Plan. 

Sec. 12104. Sheep production and marketing grant program. 

Sec. 12105. Feral swine eradication pilot program. 

Sec. 12106. National animal health laboratory network. 

Sec. 12107. National poultry improvement plan (NPIP). 

Subtitle C—Other Miscellaneous Provisions 

Sec. 12201. Military Veterans Agricultural Liaison. 

Sec. 12202. Information gathering. 

Sec. 12203. Grants to improve supply, stability, safety, and training of agricultural labor force. 

Sec. 12204. Noninsured crop assistance program. 

Sec. 12205. Bioenergy coverage in noninsured crop assistance program. 

Sec. 12206. Regional economic and infrastructure development. 

Sec. 12207. Office of Tribal Relations. 

Sec. 12208. Acer access and development program. 

Sec. 12209. Prohibition on attending an animal fight or causing a minor to attend an animal fight; enforcement of animal fighting provisions. 

Sec. 12210. Pima cotton trust fund. 

Sec. 12211. Agriculture wool apparel manufacturers trust fund. 

Sec. 12212. Citrus disease research and development trust fund. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Secretary 

3 of Agriculture. 
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1 TITLE I—COMMODITY 

2 PROGRAMS 

3 Subtitle A—Repeals and Reforms 

4 SEC. 1101. REPEAL OF DIRECT PAYMENTS. 

5 (a) REPEAL.—Sections 1103 and 1303 of the Food, 

6 Conservation, and Energy Act of 2008 (7 U.S.C. 8713, 

7 8753) are repealed. 

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

9 Sections 1103 and 1303 of the Food, Conservation, and En10 ergy Act of 2008 (7 U.S.C. 8713, 8753), as in effect on the 

11 day before the date of enactment of this Act, shall continue 

12 to apply through the 2013 crop year with respect to all cov13 ered commodities (as defined in section 1001 of that Act 

14 (7 U.S.C. 8702)) (except pulse crops) and peanuts on a 

15 farm. 

16 SEC. 1102. REPEAL OF COUNTER-CYCLICAL PAYMENTS. 

17 (a) REPEAL.—Sections 1104 and 1304 of the Food, 

18 Conservation, and Energy Act of 2008 (7 U.S.C. 8714, 

19 8754) are repealed. 

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

21 Sections 1104 and 1304 of the Food, Conservation, and En22 ergy Act of 2008 (7 U.S.C. 8714, 8754), as in effect on the 

23 day before the date of enactment of this Act, shall continue 

24 to apply through the 2013 crop year with respect to all cov-
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1 ered commodities (as defined in section 1001 of that Act 

2 (7 U.S.C. 8702)) and peanuts on a farm. 

3 SEC. 1103. REPEAL OF AVERAGE CROP REVENUE ELECTION 

4 PROGRAM. 

5 (a) REPEAL.—Section 1105 of the Food, Conservation, 

6 and Energy Act of 2008 (7 U.S.C. 8715) is repealed. 

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

8 Section 1105 of the Food, Conservation, and Energy Act 

9 of 2008 (7 U.S.C. 8715), as in effect on the day before the 

10 date of enactment of this Act, shall continue to apply 

11 through the 2013 crop year with respect to all covered com12 modities (as defined in section 1001 of that Act (7 U.S.C. 

13 8702)) and peanuts on a farm for which the irrevocable 

14 election under section 1105 of that Act is made before the 

15 date of enactment of this Act. 

16 SEC. 1104. DEFINITIONS. 

17 In this subtitle, subtitle B, and subtitle F: 

18 (1) ACTUAL CROP REVENUE.—The term ‘‘actual 

19 crop revenue’’, with respect to a covered commodity 

20 for a crop year, means the amount determined by the 

21 Secretary under section 1108(c)(3). 

22 (2) ADVERSE MARKET PAYMENT.—The term ‘‘ad23 verse market payment’’ means a payment made to 

24 producers on a farm under section 1107. 
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1 (3) AGRICULTURE RISK COVERAGE GUAR2 ANTEE.—The term ‘‘agriculture risk coverage guar3 antee’’, with respect to a covered commodity for a 

4 crop year, means the amount determined by the Sec5 retary under section 1108(c)(4). 

6 (4) AGRICULTURE RISK COVERAGE PAYMENT.— 

7 The term ‘‘agriculture risk coverage payment’’ means 

8 a payment under section 1108(c). 

9 (5) AVERAGE INDIVIDUAL YIELD.—The term ‘‘av10 erage individual yield’’ means the yield reported by 

11 a producer for purposes of subtitle A of the Federal 

12 Crop Insurance Act (7 U.S.C. 1501 et seq.), to the 

13 maximum extent practicable. 

14 (6) BASE ACRES.—The term ‘‘base acres’’, with 

15 respect to a covered commodity on a farm, means the 

16 number of acres established under section 1101 or 

17 1302 of the Farm Security and Rural Investment Act 

18 of 2002 (7 U.S.C. 7911, 7952) as in effect on the date 

19 of enactment of this Act, subject to any adjustment 

20 under section 1105 of this Act. 

21 (7) COUNTY COVERAGE.—For the purposes of ag22 riculture risk coverage under section 1108, the term 

23 ‘‘county coverage’’ means coverage determined using 

24 the total quantity of all acreage in a county of the 

25 covered commodity that is planted or prevented from 
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1 being planted for harvest by a producer with the yield 

2 determined by the average county yield described in 

3 subsection (c) of that section. 

4 (8) COVERED COMMODITY.— 

5 (A) IN GENERAL.—The term ‘‘covered com6 modity’’ means wheat, corn, grain sorghum, bar7 ley, oats, long grain rice, medium grain rice, 

8 pulse crops, soybeans, other oilseeds, and pea9 nuts. 

10 (B) POPCORN.—The Secretary— 

11 (i) shall study the feasibility of includ12 ing popcorn as a covered commodity by 

13 2014; and 

14 (ii) if the Secretary determines it to be 

15 feasible, shall designate popcorn as a cov16 ered commodity. 

17 (9) ELIGIBLE ACRES.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraphs (B) through (D), the term ‘‘eligi20 ble acres’’ means all acres planted or prevented 

21 from being planted to all covered commodities on 

22 a farm in any crop year. 

23 (B) MAXIMUM.—Except as provided in sub24 paragraph (C), the total quantity of eligible 

25 acres on a farm determined under subparagraph 
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1 (A) shall not exceed the average total acres plant2 ed or prevented from being planted to covered 

3 commodities and upland cotton on the farm for 

4 the 2009 through 2012 crop years, as determined 

5 by the Secretary. 

6 (C) ADJUSTMENT.—The Secretary shall 

7 provide for an adjustment, as appropriate, in 

8 the eligible acres for covered commodities for a 

9 farm if any of the following circumstances oc10 curs: 

11 (i) If a conservation reserve contract 

12 for a farm in a county entered into under 

13 section 1231 of the Food Security Act of 

14 1985 (16 U.S.C. 3831) expires or is volun15 tarily terminated or cropland is released 

16 from coverage under a conservation reserve 

17 contract, the Secretary shall provide for an 

18 adjustment, as appropriate, in the eligible 

19 acres for the farm to a total quantity that 

20 is the higher of— 

21 (I) the total base acreage for the 

22 farm, less any upland cotton base acre23 age, that was suspended during the 

24 conservation reserve contract; or 
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1 (II) the product obtained by mul2 tiplying— 

3 (aa) the average proportion 

4 that— 

5 (AA) the total number of 

6 acres planted to covered com7 modities and upland cotton 

8 in the county for crop years 

9 2009 through 2012; bears to 

10 (BB) the total number 

11 of all acres of covered com12 modities, grassland, and up13 land cotton acres in the 

14 county for the same crop 

15 years; by 

16 (bb) the total acres for which 

17 coverage has expired, voluntarily 

18 terminated, or been released under 

19 the conservation reserve contract. 

20 (ii) The producer has eligible oilseed 

21 acreage as the result of the Secretary desig22 nating additional oilseeds, which shall be 

23 determined in the same manner as eligible 

24 oilseed acreage under section 1101(a)(1)(D) 
18 

† HR 2642 EAS 

1 of the Food, Conservation, and Energy Act 

2 of 2008 (7 U.S.C. 8711(a)(1)(D)). 

3 (iii) The producer has any acreage not 

4 cropped during the 2009 through 2012 crop 

5 years, but placed into an established rota6 tion practice for the purposes of enriching 

7 land or conserving moisture for subsequent 

8 crop years, including summer fallow, as de9 termined by the Secretary. 

10 (D) EXCLUSION.—The term ‘‘eligible acres’’ 

11 does not include any crop subsequently planted 

12 during the same crop year on the same land for 

13 which the first crop is eligible for payments 

14 under this subtitle, unless the crop was planted 

15 in an area approved for double cropping, as de16 termined by the Secretary. 

17 (10) EXTRA LONG STAPLE COTTON.—The term 

18 ‘‘extra long staple cotton’’ means cotton that— 

19 (A) is produced from pure strain varieties 

20 of the Barbadense species or any hybrid of the 

21 species, or other similar types of extra long sta22 ple cotton, designated by the Secretary, having 

23 characteristics needed for various end uses for 

24 which United States upland cotton is not suit25 able and grown in irrigated cotton-growing re-
19 

† HR 2642 EAS 

1 gions of the United States designated by the Sec2 retary or other areas designated by the Secretary 

3 as suitable for the production of the varieties or 

4 types; and 

5 (B) is ginned on a roller-type gin or, if au6 thorized by the Secretary, ginned on another 

7 type gin for experimental purposes. 

8 (11) INDIVIDUAL COVERAGE.—For purposes of 

9 agriculture risk coverage under section 1108, the term 

10 ‘‘individual coverage’’ means coverage determined 

11 using the total quantity of all acreage in a county of 

12 the covered commodity that is planted or prevented 

13 from being planted for harvest by a producer with the 

14 yield determined by the average individual yield of 

15 the producer described in subsection (c) of that sec16 tion. 

17 (12) MEDIUM GRAIN RICE.—The term ‘‘medium 

18 grain rice’’ includes short grain rice. 

19 (13) OTHER OILSEED.—The term ‘‘other oilseed’’ 

20 means a crop of sunflower seed, rapeseed, canola, saf21 flower, flaxseed, mustard seed, crambe, sesame seed, or 

22 any oilseed designated by the Secretary. 

23 (14) PAYMENT ACRES.—The term ‘‘payment 

24 acres’’ means, in the case of adverse market pay25 ments, 85 percent of the base acres for a covered com-
20 

† HR 2642 EAS 

1 modity on a farm on which adverse market payments 

2 are made. 

3 (15) PAYMENT YIELD.—The term ‘‘payment 

4 yield’’ means the yield established for adverse market 

5 payments under section 1102 or 1302 of the Farm Se6 curity and Rural Investment Act of 2002 (7 U.S.C. 

7 7912, 7952) as in effect on the date of enactment of 

8 this Act, or under section 1106 of this Act, for a farm 

9 for a covered commodity. 

10 (16) PRODUCER.— 

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

12 means an owner, operator, landlord, tenant, or 

13 sharecropper that shares in the risk of producing 

14 a crop and is entitled to share in the crop avail15 able for marketing from the farm, or would have 

16 shared had the crop been produced. 

17 (B) HYBRID SEED.—In determining wheth18 er a grower of hybrid seed is a producer, the Sec19 retary shall— 

20 (i) not take into consideration the ex21 istence of a hybrid seed contract; and 

22 (ii) ensure that program requirements 

23 do not adversely affect the ability of the 

24 grower to receive a payment under this 

25 title. 
21 

† HR 2642 EAS 

1 (17) PULSE CROP.—The term ‘‘pulse crop’’ 

2 means dry peas, lentils, small chickpeas, and large 

3 chickpeas. 

4 (18) STATE.—The term ‘‘State’’ means— 

5 (A) a State; 

6 (B) the District of Columbia; 

7 (C) the Commonwealth of Puerto Rico; and 

8 (D) any other territory or possession of the 

9 United States. 

10 (19) REFERENCE PRICE.—The term ‘‘reference 

11 price’’ means the price per bushel, pound, or hundred12 weight (or other appropriate unit) of a covered com13 modity used to determine the payment rate for ad14 verse market payments. 

15 (20) TRANSITIONAL YIELD.—The term ‘‘transi16 tional yield’’ has the meaning given the term in sec17 tion 502(b) of the Federal Crop Insurance Act (7 

18 U.S.C. 1502(b)). 

19 (21) UNITED STATES.—The term ‘‘United 

20 States’’, when used in a geographical sense, means all 

21 of the States. 

22 (22) UNITED STATES PREMIUM FACTOR.—The 

23 term ‘‘United States Premium Factor’’ means the 

24 percentage by which the difference in the United 

25 States loan schedule premiums for Strict Middling 
22 

† HR 2642 EAS 

(SM) 11 1 ⁄8-inch upland cotton and for Middling (M) 

13 2 ⁄32-inch upland cotton exceeds the difference in the 

3 applicable premiums for comparable international 

4 qualities. 

5 SEC. 1105. BASE ACRES. 

6 (a) ADJUSTMENT OF BASE ACRES.— 

7 (1) IN GENERAL.—The Secretary shall provide 

8 for an adjustment, as appropriate, in the base acres 

9 for covered commodities for a farm whenever any of 

10 the following circumstances occurs: 

11 (A) A conservation reserve contract entered 

12 into under section 1231 of the Food Security Act 

13 of 1985 (16 U.S.C. 3831) with respect to the 

14 farm expires or is voluntarily terminated, or was 

15 terminated or expired during the period begin16 ning on October 1, 2012, and ending on the date 

17 of enactment of this Act. 

18 (B) Cropland is released from coverage 

19 under a conservation reserve contract by the Sec20 retary, or was released during the period begin21 ning on October 1, 2012, and ending on the date 

22 of enactment of this Act. 

23 (C) The producer has eligible pulse crop 

24 acreage, which shall be determined in the same 

25 manner as eligible oilseed acreage under section 
23 

† HR 2642 EAS 

1 1101(a)(2) of the Farm Security and Rural In2 vestment Act of 2002 (7 U.S.C. 7911(a)(2)). 

3 (D) The producer has eligible oilseed acre4 age as the result of the Secretary designating ad5 ditional oilseeds, which shall be determined in 

6 the same manner as eligible oilseed acreage 

7 under section 1101(a)(2) of the Farm Security 

8 and Rural Investment Act of 2002 (7 U.S.C. 

9 7911(a)(2)). 

10 (2) SPECIAL CONSERVATION RESERVE ACREAGE

11 PAYMENT RULES.—For the crop year in which a base 

12 acres adjustment under subparagraph (A) or (B) of 

13 paragraph (1) is first made, the producer on the farm 

14 shall elect to receive either adverse market payments 

15 with respect to the acreage added to the farm under 

16 this subsection or a prorated payment under the con17 servation reserve contract, but not both. 

18 (3) OPTIONAL ADJUSTMENT.— 

19 (A) ELECTION.— 

20 (i) IN GENERAL.—For the purpose of 

21 making adverse market payments, the Sec22 retary shall give a producer on a farm a 1- 

23 time opportunity to adjust the peanut base 

24 acres on the farm. 
24 

† HR 2642 EAS 

1 (ii) NOTICE.—As soon as practicable 

2 after the date of enactment of this Act, the 

3 Secretary shall provide notice of the election 

4 described in clause (i) to producers on 

5 farms with peanut base acres, including— 

6 (I) the manner in which the elec7 tion is to be transmitted to the Sec8 retary; 

9 (II) a deadline for transmission; 

10 and 

11 (III) notification that the election 

12 is a 1-time opportunity. 

13 (iii) EFFECT OF FAILURE TO MAKE

14 ELECTION.—If the producer on a farm fails 

15 to notify the Secretary of an election by the 

16 deadline described in clause (ii), the pro17 ducer shall be considered to have not elected 

18 to update the peanut base acres on the farm. 

19 (B) CALCULATION.— 

20 (i) IN GENERAL.—If the producer on a 

21 farm makes the election described in sub22 paragraph (A), the base acres for peanuts 

23 on the farm established pursuant to section 

24 1302 of the Farm Security and Rural In25 vestment Act of 2002 (7 U.S.C. 7952) shall 
25 

† HR 2642 EAS 

1 be equal to the average acreage planted on 

2 the farm to peanuts for harvest or similar 

3 purposes for the 2009 through 2012 crop 

4 years, as determined by the Secretary. 

5 (ii) INCLUSIONS.—In making the cal6 culation described in clause (i), the Sec7 retary shall include— 

8 (I) any acreage on the farm that 

9 the producer was prevented from plant10 ing to peanuts during the 2009 

11 through 2012 crop years because of 

12 drought, flood, or other natural dis13 aster, or other condition beyond the 

14 control of the producer; 

15 (II) any crop year in which pea16 nuts were not planted on the farm; and 

17 (III) any adjustment, as appro18 priate, whenever either of the following 

19 occurs: 

20 (aa) A conservation reserve 

21 contract entered into under sec22 tion 1231 of the Food Security 

23 Act of 1985 (16 U.S.C. 3831) with 

24 respect to the peanut base acres on 
26 

† HR 2642 EAS 

1 the farm expires or is voluntarily 

2 terminated. 

3 (bb) Peanut cropland is re4 leased from coverage under a con5 servation reserve contract by the 

6 Secretary. 

7 (C) LIMIT.— 

8 (i) IN GENERAL.—If the producer on a 

9 farm makes the election described in sub10 paragraph (A), the Secretary shall ensure 

11 that the adjustment does not result in a net 

12 increase in the total base acres for the farm 

13 (including the upland cotton base acres de14 scribed in subsection (e)). 

15 (ii) REDUCTION REQUIRED.—If the ad16 justment in base acres made pursuant to an 

17 election described in subparagraph (A) re18 sults in a net increase in the total base 

19 acres of all covered commodities and upland 

20 cotton on the farm, the Secretary shall re21 duce the base acres on the farm for all cov22 ered commodities (other than peanuts) and 

23 upland cotton proportionately, as deter24 mined by the Secretary. 

25 (b) PREVENTION OF EXCESS BASE ACRES.— 
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† HR 2642 EAS 

1 (1) REQUIRED REDUCTION.—If the sum of the 

2 base acres for a farm, together with the acreage de3 scribed in paragraph (2), exceeds the actual cropland 

4 acreage of the farm, the Secretary shall reduce the 

5 base acres for 1 or more covered commodities for the 

6 farm so that the sum of the base acres and acreage 

7 described in paragraph (2) does not exceed the actual 

8 cropland acreage of the farm. 

9 (2) OTHER ACREAGE.—For purposes of para10 graph (1), the Secretary shall include the following: 

11 (A) Any acreage on the farm enrolled in the 

12 conservation reserve program or agricultural 

13 conservation easement program under subchapter 

14 B of chapter 1 of subtitle D and subtitle H, re15 spectively, of title XII of the Food Security Act 

16 of 1985 (16 U.S.C. 3831 et seq.). 

17 (B) Any other acreage on the farm enrolled 

18 in a Federal conservation program for which 

19 payments are made in exchange for not pro20 ducing an agricultural commodity on the acre21 age. 

22 (C) Any eligible pulse crop acreage, which 

23 shall be determined in the same manner as eligi24 ble oilseed acreage under section 1101(a)(2) of 
28 

† HR 2642 EAS 

1 the Farm Security and Rural Investment Act of 

2 2002 (7 U.S.C. 7911(a)(2)). 

3 (D) If the Secretary designates additional 

4 oilseeds, any eligible oilseed acreage, which shall 

5 be determined in the same manner as eligible oil6 seed acreage under section 1101(a)(2) of the 

7 Farm Security and Rural Investment Act of 

8 2002 (7 U.S.C. 7911(a)(2)). 

9 (3) SELECTION OF ACRES.—The Secretary shall 

10 give the producer on the farm the opportunity to se11 lect the base acres for a covered commodity for the 

12 farm against which the reduction required by para13 graph (1) will be made. 

14 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE15 AGE.—In applying paragraph (1), the Secretary shall 

16 make an exception in the case of double cropping, as 

17 determined by the Secretary. 

18 (c) REDUCTION IN BASE ACRES.— 

19 (1) REDUCTION AT OPTION OF PRODUCER.— 

20 (A) IN GENERAL.—The producer on a farm 

21 may reduce, at any time, the base acres for any 

22 covered commodity for the farm. 

23 (B) EFFECT OF REDUCTION.—A reduction 

24 under subparagraph (A) shall be permanent and 

25 made in a manner prescribed by the Secretary. 
29 

† HR 2642 EAS 

1 (2) REQUIRED ACTION BY SECRETARY.— 

2 (A) IN GENERAL.—The Secretary shall pro3 portionately reduce base acres on a farm for cov4 ered commodities for land that has been sub5 divided and developed for multiple residential 

6 units or other nonfarming uses if the size of the 

7 tracts and the density of the subdivision is such 

8 that the land is unlikely to return to the pre9 vious agricultural use, unless the producers on 

10 the farm demonstrate that the land— 

11 (i) remains devoted to commercial ag12 ricultural production; or 

13 (ii) is likely to be returned to the pre14 vious agricultural use. 

15 (B) REQUIREMENT.—The Secretary shall 

16 establish procedures to identify land described in 

17 subparagraph (A). 

18 (3) REVIEW AND REPORT.—Each year, to ensure, 

19 to the maximum extent practicable, that payments 

20 are received only by producers, the Secretary shall 

21 submit to Congress a report that describes the results 

22 of the actions taken under paragraph (2). 

23 (d) TREATMENT OF FARMS WITH LIMITED BASE

24 ACRES.— 
30 

† HR 2642 EAS 

1 (1) PROHIBITION ON PAYMENTS.—Except as pro2 vided in paragraph (2) and notwithstanding any 

3 other provision of this title, a producer on a farm 

4 may not receive adverse market payments if the sum 

5 of the base acres of the farm is 10 acres or less, as 

6 determined by the Secretary. 

7 (2) EXCEPTIONS.—Paragraph (1) shall not 

8 apply to a farm owned or operated by— 

9 (A) a socially disadvantaged farmer (as de10 fined in section 3002 of the Consolidated Farm 

11 and Rural Development Act); or 

12 (B) a limited resource farmer or rancher, as 

13 defined by the Secretary. 

14 (3) DATA COLLECTION AND PUBLICATION.—The 

15 Secretary shall— 

16 (A) collect and publish segregated data and 

17 survey information about farm profiles, utiliza18 tion of land, and crop production; and 

19 (B) perform an evaluation on the supply 

20 and price of fruits and vegetables based on the 

21 effects of suspension of base acres under this sec22 tion. 

23 (e) TREATMENT OF FARMS WITH UPLAND COTTON

24 BASE ACRES.—The Secretary shall maintain a record of 
31 

† HR 2642 EAS 

1 farms with upland cotton base acres in effect on the day 

2 before the date of enactment of this Act. 

3 SEC. 1106. PAYMENT YIELDS. 

4 (a) DESIGNATED OILSEED OR ELIGIBLE PULSE

5 CROP.— 

6 (1) ADJUSTMENT.—For the purpose of making 

7 adverse market payments under this subtitle, the Sec8 retary shall provide for the establishment of a yield 

9 for each farm for any designated oilseed or eligible 

10 pulse crop for which a payment yield was not estab11 lished under section 1102 of the Farm Security and 

12 Rural Investment Act of 2002 (7 U.S.C. 7912) in ac13 cordance with this section. 

14 (2) PAYMENT YIELDS FOR DESIGNATED OIL15 SEEDS AND ELIGIBLE PULSE CROPS.— 

16 (A) DETERMINATION OF AVERAGE YIELD.— 

17 In the case of designated oilseeds and eligible 

18 pulse crops, the Secretary shall determine the av19 erage yield per planted acre for the designated 

20 oilseed or pulse crop on a farm for the 1998 

21 through 2001 crop years, excluding any crop 

22 year in which the acreage planted to the des23 ignated oilseed or pulse crop was zero. 

24 (B) ADJUSTMENT FOR PAYMENT YIELD.— 
32 

† HR 2642 EAS 

1 (i) IN GENERAL.—The payment yield 

2 for a farm for a designated oilseed or eligi3 ble pulse crop shall be equal to the product 

4 of the following: 

5 (I) The average yield for the des6 ignated oilseed or pulse crop deter7 mined under subparagraph (A). 

8 (II) The ratio resulting from di9 viding the national average yield for 

10 the designated oilseed or pulse crop for 

11 the 1981 through 1985 crops by the na12 tional average yield for the designated 

13 oilseed or pulse crop for the 1998 

14 through 2001 crops. 

15 (ii) NO NATIONAL AVERAGE YIELD IN16 FORMATION AVAILABLE.—To the extent that 

17 national average yield information for a 

18 designated oilseed or pulse crop is not avail19 able, the Secretary shall use such informa20 tion as the Secretary determines to be fair 

21 and equitable to establish a national aver22 age yield under this section. 

23 (C) USE OF PARTIAL COUNTY AVERAGE

24 YIELD.—If the yield per planted acre for a crop 

25 of a designated oilseed or pulse crop for a farm 
33 

† HR 2642 EAS 

1 for any of the 1998 through 2001 crop years was 

2 less than 75 percent of the county yield for that 

3 designated oilseed or pulse crop, the Secretary 

4 shall assign a yield for that crop year equal to 

5 75 percent of the county yield for the purpose of 

6 determining the average under subparagraph 

7 (A). 

8 (D) NO HISTORIC YIELD DATA AVAIL9 ABLE.—In the case of establishing yields for des10 ignated oilseeds and eligible pulse crops, if his11 toric yield data is not available, the Secretary 

12 shall use the ratio for dry peas calculated under 

13 subparagraph (B)(i)(II) in determining the 

14 yields for designated oilseeds and eligible pulse 

15 crops, as determined to be fair and equitable by 

16 the Secretary. 

17 (b) RICE.— 

18 (1) ADJUSTMENT.—For the purpose of making 

19 adverse market payments under this subtitle, the Sec20 retary shall give a producer on a farm a 1-time op21 portunity to adjust the payment yield for base acres 

22 of rice on the farm that was established under section 

23 1102 of the Farm Security and Rural Investment Act 

24 of 2002 (7 U.S.C. 7912). 

25 (2) ELECTION.— 
34 

† HR 2642 EAS 

1 (A) NOTICE.—As soon as practicable after 

2 the date of enactment of this Act, the Secretary 

3 shall provide notice of the election described in 

4 paragraph (1) to producers on farms with rice 

5 base acres, including— 

6 (i) the manner in which the election is 

7 to be transmitted to the Secretary; 

8 (ii) a deadline for transmission; and 

9 (iii) notification that the election is a 

10 1-time opportunity. 

11 (B) EFFECT OF FAILURE TO MAKE ELEC12 TION.—If the producer on a farm fails to notify 

13 the Secretary of an election by the deadline de14 scribed in subparagraph (A), the producer shall 

15 be considered to have not elected to update the 

16 payment yields for base acres of rice on the farm. 

17 (3) CALCULATION.— 

18 (A) IN GENERAL.—If the producer on a 

19 farm makes the election described in paragraph 

20 (2), the Secretary shall adjust the payment 

21 yields for the base acres of rice using an average 

22 yield described in subparagraph (B) and adjust23 ment described in subparagraph (C). 

24 (B) DETERMINATION OF AVERAGE YIELD.— 

25 Subject to subparagraph (D), the Secretary shall 
35 

† HR 2642 EAS 

1 determine the average yield per planted acre for 

2 the rice on the farm for the 2009 through 2012 

3 crop years, excluding any crop year in which the 

4 acreage planted to rice was zero. 

5 (C) DETERMINATION OF ADJUSTMENT.—The 

6 Secretary shall adjust the payment yield for the 

7 base acres of rice on the farm that was estab8 lished under section 1102 of the Farm Security 

9 and Rural Investment Act of 2002 (7 U.S.C. 

10 7912) in accordance with the following: 

11 (i) In a case in which less than 50 per12 cent of the rice base acres on the farm were 

13 planted to rice, on average, during the 2009 

14 through 2012 crop years, the adjustment 

15 shall be equal to the sum obtained by add16 ing to the payment yield— 

17 (I) the product obtained by multi18 plying— 

19 (aa) the difference between 

20 the average yield and the payment 

21 yield; by 

22 (bb) the percent of rice plant23 ed on the base acres of rice on the 

24 farm, on average. 
36 

† HR 2642 EAS 

1 (ii) In a case in which more than 50 

2 percent of the rice base acres on the farm 

3 were planted to rice, on average, during the 

4 2009 through 2012 crop years, the payment 

5 yield shall be equal to the product obtained 

6 by multiplying— 

7 (I) the average yield; by 

8 (II) 90 percent. 

9 (D) USE OF PARTIAL COUNTY AVERAGE

10 YIELD.—If the yield per planted acre for a crop 

11 of rice for a farm for any of the 2009 through 

12 2012 crop years was less than 75 percent of the 

13 county yield for that rice crop, the Secretary 

14 shall assign a yield for that crop year equal to 

15 75 percent of the county yield for purposes of de16 termining the average under subparagraph (B). 

17 (c) PEANUTS.— 

18 (1) ADJUSTMENT.—If the producer on a farm 

19 elects to adjust the peanut base acres for the farm 

20 pursuant to section 1105, the Secretary shall adjust 

21 the payment yields for the base acres of peanuts for 

22 purposes of making adverse market payments. 

23 (2) CALCULATION.—Notwithstanding the pay24 ment yields established under section 1102 of the 

25 Farm Security and Rural Investment Act of 2002 (7 
37 

† HR 2642 EAS 

1 U.S.C. 7912), the payment yield for the base acres of 

2 peanuts adjusted pursuant to section 1105 shall be the 

3 average yield per planted acre for such base acres for 

4 the 2009 through 2012 crop years, excluding any crop 

5 year in which the acreage planted to peanuts was 

6 zero. 

7 (3) USE OF PARTIAL COUNTY AVERAGE YIELD.— 

8 If the yield per planted acre for a crop of peanuts for 

9 a farm for any of the 2009 through 2012 crop years 

10 was less than 75 percent of the county yield for that 

11 peanut crop, the Secretary shall assign a yield for 

12 that crop year equal to 75 percent of the county yield 

13 for purposes of determining the average under para14 graph (2). 

15 SEC. 1107. AVAILABILITY OF ADVERSE MARKET PAYMENTS. 

16 (a) PAYMENT REQUIRED.—For each of the 2014 

17 through 2018 crop years for each covered commodity, the 

18 Secretary shall make adverse market payments to producers 

19 on farms for which payment yields and base acres are estab20 lished with respect to the covered commodity if the Sec21 retary determines that the actual price for the covered com22 modity is less than the reference price for the covered com23 modity. 

24 (b) ACTUAL PRICE.— 
38 

† HR 2642 EAS 

1 (1) COVERED COMMODITIES OTHER THAN

2 RICE.—Except as provided in paragraph (2), for pur3 poses of subsection (a), the actual price for a covered 

4 commodity is equal to the higher of the following: 

5 (A) The national average market price re6 ceived by producers during the 12-month mar7 keting year for the covered commodity, as deter8 mined by the Secretary. 

9 (B) The national average loan rate for a 

10 marketing assistance loan for the covered com11 modity in effect for the applicable period under 

12 subtitle B. 

13 (2) RICE.—In the case of long grain rice and 

14 medium grain rice, for purposes of subsection (a), the 

15 actual price for each type or class of rice is equal to 

16 the higher of the following: 

17 (A) The national average market price re18 ceived by producers during the 12-month mar19 keting year for the type or class of rice, as deter20 mined by the Secretary. 

21 (B) The national average loan rate for a 

22 marketing assistance loan for the type or class of 

23 rice in effect for the applicable period under sub24 title B. 
39 

† HR 2642 EAS 

1 (c) REFERENCE PRICE.—The reference price for a cov2 ered commodity shall be determined as follows: 

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

4 reference price for a covered commodity shall be the 

5 product obtained by multiplying— 

6 (A) 55 percent; by 

7 (B) the average national marketing year 

8 average price for the most recent 5 crop years, 

9 excluding each of the crop years with the highest 

10 and lowest prices. 

11 (2) ALTERNATIVE PRICE FOR RICE AND PEA12 NUTS.—In the case of long and medium grain rice 

13 and peanuts, the reference price shall be— 

14 (A) in the case of long and medium grain 

15 rice, $13.30 per hundredweight; and 

16 (B) in the case of peanuts, $523.77 per ton. 

17 (d) PAYMENT RATE.—The payment rate used to make 

18 adverse market payments with respect to a covered com19 modity for a crop year shall be equal to the amount that— 

20 (1) the reference price under subsection (c) for 

21 the covered commodity; exceeds 

22 (2) the actual price determined under subsection 

23 (b) for the covered commodity. 

24 (e) PAYMENT AMOUNT.—If adverse market payments 

25 are required to be paid under this section for any of the 
40 

† HR 2642 EAS 

1 2014 through 2018 crop years of a covered commodity, the 

2 amount of the adverse market payment to be paid to the 

3 producers on a farm for that crop year shall be equal to 

4 the product of the following: 

5 (1) The payment rate specified in subsection (d). 

6 (2) The payment acres of the covered commodity 

7 on the farm. 

8 (3) The payment yield for the covered commodity 

9 for the farm. 

10 (f) DUTIES OF THE SECRETARY.—ln carrying out the 

11 calculations in subsections (b) and (c), the Secretary shall 

12 differentiate by type or class the national average price of— 

13 (1) sunflower seeds; 

14 (2) barley, using malting barley values; and 

15 (3) wheat. 

16 (g) TIME FOR PAYMENTS.—If the Secretary determines 

17 under subsection (a) that adverse market payments are re18 quired to be made under this section for the crop of a cov19 ered commodity, beginning October 1, or as soon as prac20 ticable thereafter, after the end of the applicable marketing 

21 year for the covered commodity, the Secretary shall make 

22 the adverse market payments for the crop. 

23 SEC. 1108. AGRICULTURE RISK COVERAGE. 

24 (a) PAYMENTS REQUIRED.—If the Secretary deter25 mines that payments are required under subsection (c), the 
41 

† HR 2642 EAS 

1 Secretary shall make payments for each covered commodity 

2 available to producers in accordance with this section. 

3 (b) COVERAGE ELECTION.— 

4 (1) IN GENERAL.—For the period of crop years 

5 2014 through 2018, the producers shall make a 1- 

6 time, irrevocable election to receive— 

7 (A) individual coverage under this section, 

8 as determined by the Secretary; or 

9 (B) in the case of a county with sufficient 

10 data (as determined by the Secretary), county 

11 coverage under this section. 

12 (2) EFFECT OF ELECTION.—The election made 

13 under paragraph (1) shall be binding on the pro14 ducers making the election, regardless of covered com15 modities planted, and applicable to all acres under 

16 the operational control of the producers, in a manner 

17 that— 

18 (A) acres brought under the operational 

19 control of the producers after the election are in20 cluded; and 

21 (B) acres no longer under the operational 

22 control of the producers after the election are no 

23 longer subject to the election of the producers but 

24 become subject to the election of the subsequent 

25 producers. 
42 

† HR 2642 EAS 

1 (3) DUTIES OF THE SECRETARY.—The Secretary 

2 shall ensure that producers are precluded from taking 

3 any action, including reconstitution, transfer, or 

4 other similar action, that would have the effect of al5 tering or reversing the election made under paragraph 

6 (1). 

7 (c) AGRICULTURE RISK COVERAGE.— 

8 (1) PAYMENTS.—The Secretary shall make agri9 culture risk coverage payments available under this 

10 subsection for each of the 2014 through 2018 crop 

11 years if the Secretary determines that— 

12 (A) the actual crop revenue for the crop 

13 year for the covered commodity; is less than 

14 (B) the agriculture risk coverage guarantee 

15 for the crop year for the covered commodity. 

16 (2) TIME FOR PAYMENTS.—If the Secretary de17 termines under this subsection that agriculture risk 

18 coverage payments are required to be made for the 

19 covered commodity, beginning October 1, or as soon 

20 as practicable thereafter, after the end of the applica21 ble marketing year for the covered commodity, the 

22 Secretary shall make the agriculture risk coverage 

23 payments. 

24 (3) ACTUAL CROP REVENUE.—The amount of the 

25 actual crop revenue for a crop year of a covered com-
43 

† HR 2642 EAS 

1 modity shall be equal to the product obtained by mul2 tiplying— 

3 (A)(i) in the case of individual coverage, the 

4 actual average individual yield for the covered 

5 commodity, as determined by the Secretary; or 

6 (ii) in the case of county coverage, the ac7 tual average yield for the county for the covered 

8 commodity, as determined by the Secretary; and 

9 (B) the higher of— 

10 (i) the national average market price 

11 received by producers during the 12-month 

12 marketing year for the covered commodity, 

13 as determined by the Secretary; or 

14 (ii) if applicable, the reference price for 

15 the covered commodity under section 1107. 

16 (4) AGRICULTURE RISK COVERAGE GUAR17 ANTEE.— 

18 (A) IN GENERAL.—The agriculture risk cov19 erage guarantee for a crop year for a covered 

20 commodity shall equal 88 percent of the bench21 mark revenue. 

22 (B) BENCHMARK REVENUE.— 

23 (i) IN GENERAL.—The benchmark rev24 enue shall be the product obtained by multi25 plying— 
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1 (I)(aa) in the case of individual 

2 coverage, subject to clause (ii), the av3 erage individual yield, as determined 

4 by the Secretary, for the most recent 5 

5 crop years, excluding each of the crop 

6 years with the highest and lowest 

7 yields; or 

8 (bb) in the case of county cov9 erage, the average county yield, as de10 termined by the Secretary, for the most 

11 recent 5 crop years, excluding each of 

12 the crop years with the highest and 

13 lowest yields; and 

14 (II) the average national mar15 keting year average price for the most 

16 recent 5 crop years, excluding each of 

17 the crop years with the highest and 

18 lowest prices. 

19 (ii) USE OF TRANSITIONAL YIELDS.—If 

20 the yield determined under clause 

21 (i)(I)(aa)— 

22 (I) for the 2013 crop year or any 

23 prior crop year, is less than 60 percent 

24 of the applicable transitional yield, the 

25 Secretary shall use 60 percent of the 
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1 applicable transitional yield for that 

2 crop year; and 

3 (II) for the 2014 crop year and 

4 any subsequent crop year, is less than 

5 65 percent of the applicable transi6 tional yield, the Secretary shall use 65 

7 percent of the applicable transitional 

8 yield for that crop year. 

9 (5) PAYMENT RATE.—The payment rate for each 

10 covered commodity shall be equal to the lesser of— 

11 (A) the amount that— 

12 (i) the agriculture risk coverage guar13 antee for the covered commodity; exceeds 

14 (ii) the actual crop revenue for the 

15 crop year of the covered commodity; or 

16 (B) 10 percent of the benchmark revenue for 

17 the crop year of the covered commodity. 

18 (6) PAYMENT AMOUNT.—If agriculture risk cov19 erage payments under this subsection are required to 

20 be paid for any of the 2014 through 2018 crop years 

21 of a covered commodity, the amount of the agriculture 

22 risk coverage payment for the crop year shall be equal 

23 to the product obtained by multiplying— 

24 (A) the payment rate under paragraph (5); 

25 and 
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1 (B)(i) in the case of individual coverage the 

2 sum of— 

3 (I) 65 percent of the planted eligible 

4 acres of the covered commodity; and 

5 (II) 45 percent of the eligible acres that 

6 were prevented from being planted to the 

7 covered commodity; or 

8 (ii) in the case of county coverage— 

9 (I) 80 percent of the planted eligible 

10 acres of the covered commodity; and 

11 (II) 45 percent of the eligible acres that 

12 were prevented from being planted to the 

13 covered commodity. 

14 (7) DUTIES OF THE SECRETARY.—In carrying 

15 out the program under this subsection, the Secretary 

16 shall— 

17 (A) to the maximum extent practicable, use 

18 all available information and analysis to check 

19 for anomalies in the determination of payments 

20 under the program; 

21 (B) to the maximum extent practicable, cal22 culate a separate actual crop revenue and agri23 culture risk coverage guarantee for irrigated and 

24 nonirrigated covered commodities; 
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1 (C) differentiate by type or class the na2 tional average price of— 

3 (i) sunflower seeds; 

4 (ii) barley, using malting barley val5 ues; and 

6 (iii) wheat; and 

7 (D) assign a yield for each acre planted or 

8 prevented from being planted for the crop year 

9 for the covered commodity on the basis of the 

10 yield history of representative farms in the State, 

11 region, or crop reporting district, as determined 

12 by the Secretary, if the Secretary cannot estab13 lish the yield as determined under paragraph 

14 (3)(A)(ii) or (4)(B)(i) or if the yield determined 

15 under paragraph (3)(A)(ii) or (4) is an unrepre16 sentative average yield for the covered com17 modity as determined by the Secretary. 

18 SEC. 1109. PRODUCER AGREEMENT REQUIRED AS CONDI19 TION OF PROVISION OF PAYMENTS. 

20 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

21 (1) REQUIREMENTS.—Before the producers on a 

22 farm may receive agriculture risk coverage payments 

23 or adverse market payments, the producers shall 

24 agree, during the crop year for which the payments 

25 are made and in exchange for the payments— 
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1 (A) to comply with applicable conservation 

2 requirements under subtitle B of title XII of the 

3 Food Security Act of 1985 (16 U.S.C. 3811 et 

4 seq.); 

5 (B) to comply with applicable wetland pro6 tection requirements under subtitle C of title XII 

7 of that Act (16 U.S.C. 3821 et seq.); 

8 (C) to use the land on the farm for an agri9 cultural or conserving use in a quantity equal to 

10 the attributable eligible acres of the farm, and 

11 not for a nonagricultural commercial, industrial, 

12 or residential use, as determined by the Sec13 retary; and 

14 (D) to effectively control noxious weeds and 

15 otherwise maintain the land in accordance with 

16 sound agricultural practices, as determined by 

17 the Secretary, if the agricultural or conserving 

18 use involves the noncultivation of any portion of 

19 the land referred to in subparagraph (C). 

20 (2) COMPLIANCE.—The Secretary may issue such 

21 rules as the Secretary considers necessary to ensure 

22 producer compliance with the requirements of para23 graph (1). 

24 (3) MODIFICATION.—At the request of the trans25 feree or owner, the Secretary may modify the require-
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1 ments of this subsection if the modifications are con2 sistent with the objectives of this subsection, as deter3 mined by the Secretary. 

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

5 (1) TERMINATION.— 

6 (A) IN GENERAL.—Except as provided in 

7 paragraph (2), a transfer of (or change in) the 

8 interest of the producers on a farm for which ag9 riculture risk coverage payments or adverse mar10 ket payments are made shall result in the termi11 nation of the payments, unless the transferee or 

12 owner of the acreage agrees to assume all obliga13 tions under subsection (a). 

14 (B) EFFECTIVE DATE.—The termination 

15 shall take effect on the date determined by the 

16 Secretary. 

17 (2) EXCEPTION.—If a producer entitled to an 

18 agriculture risk coverage payment or adverse market 

19 payment dies, becomes incompetent, or is otherwise 

20 unable to receive the payment, the Secretary shall 

21 make the payment, in accordance with rules issued by 

22 the Secretary. 

23 (c) REPORTS.— 

24 (1) ACREAGE REPORTS.—As a condition on the 

25 receipt of any benefits under this subtitle or subtitle 
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1 B, the Secretary shall require producers on a farm to 

2 submit to the Secretary annual acreage reports with 

3 respect to all cropland on the farm. 

4 (2) PRODUCTION REPORTS.—As a condition on 

5 the receipt of any benefits under section 1108, the 

6 Secretary shall require producers on a farm to submit 

7 to the Secretary annual production reports with re8 spect to all covered commodities produced on the 

9 farm. 

10 (3) PENALTIES.—No penalty with respect to ben11 efits under this subtitle or subtitle B shall be assessed 

12 against the producers on a farm for an inaccurate 

13 acreage or production report unless the producers on 

14 the farm knowingly and willfully falsified the acreage 

15 or production report. 

16 (4) DATA REPORTING.—To the maximum extent 

17 practicable, the Secretary shall use data reported by 

18 the producer pursuant to requirements under the Fed19 eral Crop Insurance Act (7 U.S.C. 1501 et seq.) to 

20 meet the obligations described in paragraphs (1) and 

21 (2), without additional submissions to the Depart22 ment. 

23 (d) TENANTS AND SHARECROPPERS.—In carrying out 

24 this subtitle, the Secretary shall provide adequate safe25 guards to protect the interests of tenants and sharecroppers. 
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1 (e) SHARING OF PAYMENTS.—The Secretary shall pro2 vide for the sharing of adverse market payments and agri3 culture risk coverage payments among the producers on a 

4 farm on a fair and equitable basis. 

5 SEC. 1110. PERIOD OF EFFECTIVENESS. 

6 Sections 1104 through 1109 shall be effective beginning 

7 with the 2014 crop year of each covered commodity through 

8 the 2018 crop year. 

9 Subtitle B—Marketing Assistance 

10 Loans and Loan Deficiency Pay11 ments 

12 SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 

13 ASSISTANCE LOANS FOR LOAN COMMOD14 ITIES. 

15 (a) DEFINITION OF LOAN COMMODITY.—In this sub16 title, the term ‘‘loan commodity’’ means wheat, corn, grain 

17 sorghum, barley, oats, upland cotton, extra long staple cot18 ton, long grain rice, medium grain rice, peanuts, soybeans, 

19 other oilseeds, graded wool, nongraded wool, mohair, honey, 

20 dry peas, lentils, small chickpeas, and large chickpeas. 

21 (b) NONRECOURSE LOANS AVAILABLE.— 

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

23 2018 crops of each loan commodity, the Secretary 

24 shall make available to producers on a farm non-
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1 recourse marketing assistance loans for loan commod2 ities produced on the farm. 

3 (2) TERMS AND CONDITIONS.—The marketing as4 sistance loans shall be made under terms and condi5 tions that are prescribed by the Secretary and at the 

6 loan rate established under section 1202 for the loan 

7 commodity. 

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

9 shall be eligible for a marketing assistance loan under sub10 section (b) for any quantity of a loan commodity produced 

11 on the farm. 

12 (d) COMPLIANCE WITH CONSERVATION AND WET13 LANDS REQUIREMENTS.— 

14 (1) REQUIREMENTS.—Before the producers on a 

15 farm may receive a marketing assistance loan or any 

16 other payment or benefit under this subtitle, the pro17 ducers shall agree, for the crop year for which the 

18 payments are made and in exchange for the pay19 ments— 

20 (A) to comply with applicable conservation 

21 requirements under subtitle B of title XII of the 

22 Food Security Act of 1985 (16 U.S.C. 3811 et 

23 seq.); 
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1 (B) to comply with applicable wetland pro2 tection requirements under subtitle C of title XII 

3 of that Act (16 U.S.C. 3821 et seq.); 

4 (C) to use the land on the farm for an agri5 cultural or conserving use in a quantity equal to 

6 the attributable eligible acres of the farm, and 

7 not for a nonagricultural commercial, industrial, 

8 or residential use, as determined by the Sec9 retary; and 

10 (D) to effectively control noxious weeds and 

11 otherwise maintain the land in accordance with 

12 sound agricultural practices, as determined by 

13 the Secretary, if the agricultural or conserving 

14 use involves the noncultivation of any portion of 

15 the land referred to in subparagraph (C). 

16 (2) COMPLIANCE.—The Secretary may issue such 

17 rules as the Secretary considers necessary to ensure 

18 producer compliance with paragraph (1). 

19 (3) MODIFICATION.—At the request of a trans20 feree or owner, the Secretary may modify the require21 ments of this subsection if the modifications are con22 sistent with the purposes of this subsection, as deter23 mined by the Secretary. 

24 (e) SPECIAL RULES FOR PEANUTS.— 
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1 (1) IN GENERAL.—This subsection shall apply 

2 only to producers of peanuts. 

3 (2) OPTIONS FOR OBTAINING LOAN.—A mar4 keting assistance loan under this section, and loan de5 ficiency payments under section 1205, may be ob6 tained at the option of the producers on a farm 

7 through— 

8 (A) a designated marketing association or 

9 marketing cooperative of producers that is ap10 proved by the Secretary; or 

11 (B) the Farm Service Agency. 

12 (3) STORAGE OF LOAN PEANUTS.—As a condi13 tion on the approval by the Secretary of an indi14 vidual or entity to provide storage for peanuts for 

15 which a marketing assistance loan is made under this 

16 section, the individual or entity shall agree— 

17 (A) to provide the storage on a nondiscrim18 inatory basis; and 

19 (B) to comply with such additional require20 ments as the Secretary considers appropriate to 

21 accomplish the purposes of this section and pro22 mote fairness in the administration of the bene23 fits of this section. 

24 (4) STORAGE, HANDLING, AND ASSOCIATED

25 COSTS.— 
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1 (A) IN GENERAL.—To ensure proper storage 

2 of peanuts for which a loan is made under this 

3 section, the Secretary shall pay handling and 

4 other associated costs (other than storage costs) 

5 incurred at the time at which the peanuts are 

6 placed under loan, as determined by the Sec7 retary. 

8 (B) REDEMPTION AND FORFEITURE.—The 

9 Secretary shall— 

10 (i) require the repayment of handling 

11 and other associated costs paid under sub12 paragraph (A) for all peanuts pledged as 

13 collateral for a loan that is redeemed under 

14 this section; and 

15 (ii) pay storage, handling, and other 

16 associated costs for all peanuts pledged as 

17 collateral that are forfeited under this sec18 tion. 

19 (5) MARKETING.—A marketing association or co20 operative may market peanuts for which a loan is 

21 made under this section in any manner that conforms 

22 to consumer needs, including the separation of pea23 nuts by type and quality. 

24 (6) REIMBURSABLE AGREEMENTS AND PAYMENT

25 OF ADMINISTRATIVE EXPENSES.—The Secretary may 
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1 implement any reimbursable agreements or provide 

2 for the payment of administrative expenses under this 

3 subsection only in a manner that is consistent with 

4 those activities in regard to other loan commodities. 

5 SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 

6 ASSISTANCE LOANS. 

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

8 through 2018 crop years, the loan rate for a marketing as9 sistance loan under section 1201 for a loan commodity shall 

10 be equal to the following: 

11 (1) In the case of wheat, $2.94 per bushel. 

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

13 (3) In the case of grain sorghum, $1.95 per bush14 el. 

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

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

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

18 for the 2014 and each subsequent crop year, the sim19 ple average of the adjusted prevailing world price for 

20 the 2 immediately preceding marketing years, as de21 termined by the Secretary and announced October 1 

22 preceding the next domestic plantings, but in no case 

23 less than $0.45 per pound or more than $0.52 per 

24 pound. 
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1 (7) In the case of extra long staple cotton, 

2 $0.7977 per pound. 

3 (8) In the case of long grain rice, $6.50 per hun4 dredweight. 

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

6 hundredweight. 

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

8 (11) In the case of other oilseeds, $10.09 per hun9 dredweight for each of the following kinds of oilseeds: 

10 (A) Sunflower seed. 

11 (B) Rapeseed. 

12 (C) Canola. 

13 (D) Safflower. 

14 (E) Flaxseed. 

15 (F) Mustard seed. 

16 (G) Crambe. 

17 (H) Sesame seed. 

18 (I) Other oilseeds designated by the Sec19 retary. 

20 (12) In the case of dry peas, $5.40 per hundred21 weight. 

22 (13) In the case of lentils, $11.28 per hundred23 weight. 

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

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

2 hundredweight. 

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

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

5 pound. 

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

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

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

9 (b) SINGLE COUNTY LOAN RATE FOR OTHER OIL10 SEEDS.—The Secretary shall establish a single loan rate in 

11 each county for each kind of other oilseeds described in sub12 section (a)(11). 

13 SEC. 1203. TERM OF LOANS. 

14 (a) TERM OF LOAN.—In the case of each loan com15 modity, a marketing assistance loan under section 1201 

16 shall have a term of 9 months beginning on the first day 

17 of the first month after the month in which the loan is 

18 made. 

19 (b) EXTENSIONS PROHIBITED.—The Secretary may 

20 not extend the term of a marketing assistance loan for any 

21 loan commodity. 

22 SEC. 1204. REPAYMENT OF LOANS. 

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

24 producers on a farm to repay a marketing assistance loan 

25 under section 1201 for a loan commodity (other than up-
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1 land cotton, long grain rice, medium grain rice, extra long 

2 staple cotton, peanuts and confectionery and each other 

3 kind of sunflower seed (other than oil sunflower seed)) at 

4 a rate that is the lesser of— 

5 (1) the loan rate established for the commodity 

6 under section 1202, plus interest (determined in ac7 cordance with section 163 of the Federal Agriculture 

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

9 7283)); 

10 (2) a rate (as determined by the Secretary) 

11 that— 

12 (A) is calculated based on average market 

13 prices for the loan commodity during the pre14 ceding 30-day period; and 

15 (B) will minimize discrepancies in mar16 keting loan benefits across State boundaries and 

17 across county boundaries; or 

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

19 alternative methods for calculating a repayment rate 

20 for a loan commodity that the Secretary determines 

21 will— 

22 (A) minimize potential loan forfeitures; 

23 (B) minimize the accumulation of stocks of 

24 the commodity by the Federal Government; 
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1 (C) minimize the cost incurred by the Fed2 eral Government in storing the commodity; 

3 (D) allow the commodity produced in the 

4 United States to be marketed freely and competi5 tively, both domestically and internationally; 

6 and 

7 (E) minimize discrepancies in marketing 

8 loan benefits across State boundaries and across 

9 county boundaries. 

10 (b) REPAYMENT RATES FOR UPLAND COTTON, LONG

11 GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 

12 shall permit producers to repay a marketing assistance loan 

13 under section 1201 for upland cotton, long grain rice, and 

14 medium grain rice at a rate that is the lesser of— 

15 (1) the loan rate established for the commodity 

16 under section 1202, plus interest (determined in ac17 cordance with section 163 of the Federal Agriculture 

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

19 7283)); or 

20 (2) the prevailing world market price for the 

21 commodity, as determined and adjusted by the Sec22 retary in accordance with this section. 

23 (c) REPAYMENT RATES FOR EXTRA LONG STAPLE

24 COTTON.—Repayment of a marketing assistance loan for 

25 extra long staple cotton shall be at the loan rate established 
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1 for the commodity under section 1202, plus interest (deter2 mined in accordance with section 163 of the Federal Agri3 culture Improvement and Reform Act of 1996 (7 U.S.C. 

4 7283)). 

5 (d) PREVAILING WORLD MARKET PRICE.—For pur6 poses of this section, the Secretary shall prescribe by regula7 tion— 

8 (1) a formula to determine the prevailing world 

9 market price for each of upland cotton, long grain 

10 rice, and medium grain rice; and 

11 (2) a mechanism by which the Secretary shall 

12 announce periodically those prevailing world market 

13 prices. 

14 (e) ADJUSTMENT OF PREVAILING WORLD MARKET

15 PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND ME16 DIUM GRAIN RICE.— 

17 (1) RICE.—The prevailing world market price 

18 for long grain rice and medium grain rice determined 

19 under subsection (d) shall be adjusted to United 

20 States quality and location. 

21 (2) COTTON.—The prevailing world market price 

22 for upland cotton determined under subsection (d)— 

23 (A) shall be adjusted to United States qual24 ity and location, with the adjustment to in25 clude— 
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1 (i) a reduction equal to any United 

2 States Premium Factor for upland cotton of 

a quality higher than Middling (M) 13 3 ⁄32- 

4 inch; and 

5 (ii) the average costs to market the 

6 commodity, including average transpor7 tation costs, as determined by the Secretary; 

8 and 

9 (B) may be further adjusted, during the pe10 riod beginning on the date of enactment of this 

11 Act and ending on July 31, 2019, if the Sec12 retary determines the adjustment is necessary— 

13 (i) to minimize potential loan forfeit14 ures; 

15 (ii) to minimize the accumulation of 

16 stocks of upland cotton by the Federal Gov17 ernment; 

18 (iii) to ensure that upland cotton pro19 duced in the United States can be marketed 

20 freely and competitively, both domestically 

21 and internationally; and 

22 (iv) to ensure an appropriate transi23 tion between current-crop and forward-crop 

24 price quotations, except that the Secretary 

25 may use forward-crop price quotations 
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1 prior to July 31 of a marketing year only 

2 if— 

3 (I) there are insufficient current4 crop price quotations; and 

5 (II) the forward-crop price 

6 quotation is the lowest such quotation 

7 available. 

8 (3) GUIDELINES FOR ADDITIONAL ADJUST9 MENTS.—In making adjustments under this sub10 section, the Secretary shall establish a mechanism for 

11 determining and announcing the adjustments in 

12 order to avoid undue disruption in the United States 

13 market. 

14 (f) REPAYMENT RATES FOR CONFECTIONERY AND

15 OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 

16 shall permit the producers on a farm to repay a marketing 

17 assistance loan under section 1201 for confectionery and 

18 each other kind of sunflower seed (other than oil sunflower 

19 seed) at a rate that is the lesser of— 

20 (1) the loan rate established for the commodity 

21 under section 1202, plus interest (determined in ac22 cordance with section 163 of the Federal Agriculture 

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

24 7283)); or 
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1 (2) the repayment rate established for oil sun2 flower seed. 

3 (g) PAYMENT OF COTTON STORAGE COSTS.—Effective 

4 for each of the 2014 through 2018 crop years, the Secretary 

5 shall make cotton storage payments available in the same 

6 manner, and at the same rates as the Secretary provided 

7 storage payments for the 2006 crop of cotton, except that 

8 the rates shall be reduced by 20 percent. 

9 (h) REPAYMENT RATE FOR PEANUTS.—The Secretary 

10 shall permit producers on a farm to repay a marketing as11 sistance loan for peanuts under subsection (a) at a rate that 

12 is the lesser of— 

13 (1) the loan rate established for peanuts under 

14 subsection (b), plus interest (determined in accord15 ance with section 163 of the Federal Agriculture Im16 provement and Reform Act of 1996 (7 U.S.C. 7283)); 

17 or 

18 (2) a rate that the Secretary determines will— 

19 (A) minimize potential loan forfeitures; 

20 (B) minimize the accumulation of stocks of 

21 peanuts by the Federal Government; 

22 (C) minimize the cost incurred by the Fed23 eral Government in storing peanuts; and 
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1 (D) allow peanuts produced in the United 

2 States to be marketed freely and competitively, 

3 both domestically and internationally. 

4 (i) AUTHORITY TO TEMPORARILY ADJUST REPAY5 MENT RATES.— 

6 (1) ADJUSTMENT AUTHORITY.—In the event of a 

7 severe disruption to marketing, transportation, or re8 lated infrastructure, the Secretary may modify the re9 payment rate otherwise applicable under this section 

10 for marketing assistance loans under section 1201 for 

11 a loan commodity. 

12 (2) DURATION.—Any adjustment made under 

13 paragraph (1) in the repayment rate for marketing 

14 assistance loans for a loan commodity shall be in ef15 fect on a short-term and temporary basis, as deter16 mined by the Secretary. 

17 SEC. 1205. LOAN DEFICIENCY PAYMENTS. 

18 (a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 

19 (1) IN GENERAL.—Except as provided in sub20 section (d), the Secretary may make loan deficiency 

21 payments available to producers on a farm that, al22 though eligible to obtain a marketing assistance loan 

23 under section 1201 with respect to a loan commodity, 

24 agree to forgo obtaining the loan for the commodity 
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1 in return for loan deficiency payments under this sec2 tion. 

3 (2) UNSHORN PELTS, HAY, AND SILAGE.— 

4 (A) MARKETING ASSISTANCE LOANS.—Sub5 ject to subparagraph (B), nongraded wool in the 

6 form of unshorn pelts and hay and silage derived 

7 from a loan commodity are not eligible for a 

8 marketing assistance loan under section 1201. 

9 (B) LOAN DEFICIENCY PAYMENT.—Effective 

10 for the 2014 through 2018 crop years, the Sec11 retary may make loan deficiency payments 

12 available under this section to producers on a 

13 farm that produce unshorn pelts or hay and si14 lage derived from a loan commodity. 

15 (b) COMPUTATION.—A loan deficiency payment for a 

16 loan commodity or commodity referred to in subsection 

17 (a)(2) shall be equal to the product obtained by multi18 plying— 

19 (1) the payment rate determined under sub20 section (c) for the commodity; by 

21 (2) the quantity of the commodity produced by 

22 the eligible producers, excluding any quantity for 

23 which the producers obtain a marketing assistance 

24 loan under section 1201. 

25 (c) PAYMENT RATE.— 
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1 (1) IN GENERAL.—In the case of a loan com2 modity, the payment rate shall be the amount by 

3 which— 

4 (A) the loan rate established under section 

5 1202 for the loan commodity; exceeds 

6 (B) the rate at which a marketing assist7 ance loan for the loan commodity may be repaid 

8 under section 1204. 

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

10 pelts, the payment rate shall be the amount by 

11 which— 

12 (A) the loan rate established under section 

13 1202 for ungraded wool; exceeds 

14 (B) the rate at which a marketing assist15 ance loan for ungraded wool may be repaid 

16 under section 1204. 

17 (3) HAY AND SILAGE.—In the case of hay or si18 lage derived from a loan commodity, the payment 

19 rate shall be the amount by which— 

20 (A) the loan rate established under section 

21 1202 for the loan commodity from which the hay 

22 or silage is derived; exceeds 

23 (B) the rate at which a marketing assist24 ance loan for the loan commodity may be repaid 

25 under section 1204. 
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1 (d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.— 

2 This section shall not apply with respect to extra long staple 

3 cotton. 

4 (e) EFFECTIVE DATE FOR PAYMENT RATE DETER5 MINATION.—The Secretary shall determine the amount of 

6 the loan deficiency payment to be made under this section 

7 to the producers on a farm with respect to a quantity of 

8 a loan commodity or commodity referred to in subsection 

9 (a)(2) using the payment rate in effect under subsection (c) 

10 as of the date the producers request the payment. 

11 SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY12 MENTS FOR GRAZED ACREAGE. 

13 (a) ELIGIBLE PRODUCERS.— 

14 (1) IN GENERAL.—Effective for the 2014 through 

15 2018 crop years, in the case of a producer that would 

16 be eligible for a loan deficiency payment under sec17 tion 1205 for wheat, barley, or oats, but that elects to 

18 use acreage planted to the wheat, barley, or oats for 

19 the grazing of livestock, the Secretary shall make a 

20 payment to the producer under this section if the pro21 ducer enters into an agreement with the Secretary to 

22 forgo any other harvesting of the wheat, barley, or 

23 oats on that acreage. 

24 (2) GRAZING OF TRITICALE ACREAGE.—Effective 

25 for the 2014 through 2018 crop years, with respect to 
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1 a producer on a farm that uses acreage planted to 

2 triticale for the grazing of livestock, the Secretary 

3 shall make a payment to the producer under this sec4 tion if the producer enters into an agreement with the 

5 Secretary to forgo any other harvesting of triticale on 

6 that acreage. 

7 (b) PAYMENT AMOUNT.— 

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

9 made under this section to a producer on a farm de10 scribed in subsection (a)(1) shall be equal to the 

11 amount determined by multiplying— 

12 (A) the loan deficiency payment rate deter13 mined under section 1205(c) in effect, as of the 

14 date of the agreement, for the county in which 

15 the farm is located; by 

16 (B) the payment quantity determined by 

17 multiplying— 

18 (i) the quantity of the grazed acreage 

19 on the farm with respect to which the pro20 ducer elects to forgo harvesting of wheat, 

21 barley, or oats; and 

22 (ii)(I) the yield in effect for the cal23 culation of agriculture risk coverage pay24 ments under subtitle A with respect to that 

25 loan commodity on the farm; or 
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1 (II) in the case of a farm without a 

2 payment yield for that loan commodity, an 

3 appropriate yield established by the Sec4 retary. 

5 (2) GRAZING OF TRITICALE ACREAGE.—The 

6 amount of a payment made under this section to a 

7 producer on a farm described in subsection (a)(2) 

8 shall be equal to the amount determined by multi9 plying— 

10 (A) the loan deficiency payment rate deter11 mined under section 1205(c) in effect for wheat, 

12 as of the date of the agreement, for the county in 

13 which the farm is located; by 

14 (B) the payment quantity determined by 

15 multiplying— 

16 (i) the quantity of the grazed acreage 

17 on the farm with respect to which the pro18 ducer elects to forgo harvesting of triticale; 

19 and 

20 (ii)(I) the yield in effect for the cal21 culation of agriculture risk coverage pay22 ments under subtitle A with respect to 

23 wheat on the farm; or 

24 (II) in the case of a farm without a 

25 payment yield for wheat, an appropriate 
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1 yield established by the Secretary in a man2 ner consistent with section 1102 of the 

3 Food, Conservation, and Energy Act of 

4 2008 (7 U.S.C. 8712). 

5 (c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 

6 (1) TIME AND MANNER.—A payment under this 

7 section shall be made at the same time and in the 

8 same manner as loan deficiency payments are made 

9 under section 1205. 

10 (2) AVAILABILITY.— 

11 (A) IN GENERAL.—The Secretary shall es12 tablish an availability period for the payments 

13 authorized by this section. 

14 (B) CERTAIN COMMODITIES.—In the case of 

15 wheat, barley, and oats, the availability period 

16 shall be consistent with the availability period 

17 for the commodity established by the Secretary 

18 for marketing assistance loans authorized by this 

19 subtitle. 

20 (d) PROHIBITION ON CROP INSURANCE INDEMNITY OR

21 NONINSURED CROP ASSISTANCE.—A 2014 through 2018 

22 crop of wheat, barley, oats, or triticale planted on acreage 

23 that a producer elects, in the agreement required by sub24 section (a), to use for the grazing of livestock in lieu of any 

25 other harvesting of the crop shall not be eligible for an in-
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1 demnity under a policy or plan of insurance authorized 

2 under the Federal Crop Insurance Act (7 U.S.C. 1501 et 

3 seq.) or noninsured crop assistance under section 196 of the 

4 Federal Agriculture Improvement and Reform Act of 1996 

5 (7 U.S.C. 7333). 

6 SEC. 1207. ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 

7 OF UPLAND COTTON. 

8 (a) IN GENERAL.—Subject to subsection (b), the Sec9 retary shall, on a monthly basis, make economic adjustment 

10 assistance available to domestic users of upland cotton in 

11 the form of payments for all documented use of that upland 

12 cotton during the previous monthly period regardless of the 

13 origin of the upland cotton. 

14 (b) VALUE OF ASSISTANCE.—Effective beginning on 

15 August 1, 2012, the value of the assistance provided under 

16 subsection (a) shall be 3 cents per pound. 

17 (c) ALLOWABLE PURPOSES.—Economic adjustment 

18 assistance under this section shall be made available only 

19 to domestic users of upland cotton that certify that the as20 sistance shall be used only to acquire, construct, install, 

21 modernize, develop, convert, or expand land, plant, build22 ings, equipment, facilities, or machinery. 

23 (d) REVIEW OR AUDIT.—The Secretary may conduct 

24 such review or audit of the records of a domestic user under 
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1 this subsection as the Secretary determines necessary to 

2 carry out this subsection. 

3 (e) IMPROPER USE OF ASSISTANCE.—If the Secretary 

4 determines, after a review or audit of the records of the do5 mestic user, that economic adjustment assistance under this 

6 subsection was not used for the purposes specified in sub7 section (c), the domestic user shall be— 

8 (1) liable for the repayment of the assistance to 

9 the Secretary, plus interest, as determined by the Sec10 retary; and 

11 (2) ineligible to receive assistance under this sub12 section for a period of 1 year following the determina13 tion of the Secretary. 

14 SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 

15 LONG STAPLE COTTON. 

16 (a) COMPETITIVENESS PROGRAM.—Notwithstanding 

17 any other provision of law, during the period beginning on 

18 the date of enactment of this Act through July 31, 2019, 

19 the Secretary shall carry out a program— 

20 (1) to maintain and expand the domestic use of 

21 extra long staple cotton produced in the United 

22 States; 

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

24 produced in the United States; and 
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1 (3) to ensure that extra long staple cotton pro2 duced in the United States remains competitive in 

3 world markets. 

4 (b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 

5 the program, the Secretary shall make payments available 

6 under this section whenever— 

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

8 market price for the lowest priced competing growth 

9 of extra long staple cotton (adjusted to United States 

10 quality and location and for other factors affecting 

11 the competitiveness of such cotton), as determined by 

12 the Secretary, is below the prevailing United States 

13 price for a competing growth of extra long staple cot14 ton; and 

15 (2) the lowest priced competing growth of extra 

16 long staple cotton (adjusted to United States quality 

17 and location and for other factors affecting the com18 petitiveness of such cotton), as determined by the Sec19 retary, is less than 134 percent of the loan rate for 

20 extra long staple cotton. 

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

22 payments available under this section to domestic users of 

23 extra long staple cotton produced in the United States and 

24 exporters of extra long staple cotton produced in the United 

25 States that enter into an agreement with the Commodity 
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1 Credit Corporation to participate in the program under 

2 this section. 

3 (d) PAYMENT AMOUNT.—Payments under this section 

4 shall be based on the amount of the difference in the prices 

5 referred to in subsection (b)(1) during the fourth week of 

6 the consecutive 4-week period multiplied by the amount of 

7 documented purchases by domestic users and sales for ex8 port by exporters made in the week following such a con9 secutive 4-week period. 

10 SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 

11 MOISTURE FEED GRAINS AND SEED COTTON. 

12 (a) HIGH MOISTURE FEED GRAINS.— 

13 (1) DEFINITION OF HIGH MOISTURE STATE.—In 

14 this subsection, the term ‘‘high moisture state’’ means 

15 corn or grain sorghum having a moisture content in 

16 excess of Commodity Credit Corporation standards 

17 for marketing assistance loans made by the Secretary 

18 under section 1201. 

19 (2) RECOURSE LOANS AVAILABLE.—For each of 

20 the 2014 through 2018 crops of corn and grain sor21 ghum, the Secretary shall make available recourse 

22 loans, as determined by the Secretary, to producers on 

23 a farm that— 
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1 (A) normally harvest all or a portion of 

2 their crop of corn or grain sorghum in a high 

3 moisture state; 

4 (B) present— 

5 (i) certified scale tickets from an in6 spected, certified commercial scale, includ7 ing a licensed warehouse, feedlot, feed mill, 

8 distillery, or other similar entity approved 

9 by the Secretary, pursuant to regulations 

10 issued by the Secretary; or 

11 (ii) field or other physical measure12 ments of the standing or stored crop in re13 gions of the United States, as determined by 

14 the Secretary, that do not have certified 

15 commercial scales from which certified scale 

16 tickets may be obtained within reasonable 

17 proximity of harvest operation; 

18 (C) certify that the producers on the farm 

19 were the owners of the feed grain at the time of 

20 delivery to, and that the quantity to be placed 

21 under loan under this subsection was in fact 

22 harvested on the farm and delivered to, a feedlot, 

23 feed mill, or commercial or on-farm high-mois24 ture storage facility, or to a facility maintained 
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1 by the users of corn and grain sorghum in a 

2 high moisture state; and 

3 (D) comply with deadlines established by 

4 the Secretary for harvesting the corn or grain 

5 sorghum and submit applications for loans 

6 under this subsection within deadlines estab7 lished by the Secretary. 

8 (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 

9 A loan under this subsection shall be made on a 

10 quantity of corn or grain sorghum of the same crop 

11 acquired by the producer equivalent to a quantity de12 termined by multiplying— 

13 (A) the acreage of the corn or grain sor14 ghum in a high moisture state harvested on the 

15 farm of the producer; by 

16 (B) the lower of the actual average yield 

17 used to make payments under subtitle A or the 

18 actual yield on a field, as determined by the Sec19 retary, that is similar to the field from which the 

20 corn or grain sorghum was obtained. 

21 (b) RECOURSE LOANS AVAILABLE FOR SEED COT22 TON.—For each of the 2014 through 2018 crops of upland 

23 cotton and extra long staple cotton, the Secretary shall make 

24 available recourse seed cotton loans, as determined by the 

25 Secretary, on any production. 
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1 (c) REPAYMENT RATES.—Repayment of a recourse 

2 loan made under this section shall be at the loan rate estab3 lished for the commodity by the Secretary, plus interest (de4 termined in accordance with section 163 of the Federal Ag5 riculture Improvement and Reform Act of 1996 (7 U.S.C. 

6 7283)). 

7 SEC. 1210. ADJUSTMENTS OF LOANS. 

8 (a) ADJUSTMENT AUTHORITY.—Subject to subsection 

9 (e), the Secretary may make appropriate adjustments in 

10 the loan rates for any loan commodity (other than cotton) 

11 for differences in grade, type, quality, location, and other 

12 factors. 

13 (b) MANNER OF ADJUSTMENT.—The adjustments 

14 under subsection (a) shall, to the maximum extent prac15 ticable, be made in such a manner that the average loan 

16 level for the commodity will, on the basis of the anticipated 

17 incidence of the factors, be equal to the level of support de18 termined in accordance with this subtitle and subtitles C 

19 through E. 

20 (c) ADJUSTMENT ON COUNTY BASIS.— 

21 (1) IN GENERAL.—The Secretary may establish 

22 loan rates for a crop for producers in individual 

23 counties in a manner that results in the lowest loan 

24 rate being 95 percent of the national average loan 
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1 rate, if those loan rates do not result in an increase 

2 in outlays. 

3 (2) PROHIBITION.—Adjustments under this sub4 section shall not result in an increase in the national 

5 average loan rate for any year. 

6 (d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

7 (1) IN GENERAL.—The Secretary may make ap8 propriate adjustments in the loan rate for cotton for 

9 differences in quality factors. 

10 (2) REVISIONS TO QUALITY ADJUSTMENTS FOR

11 UPLAND COTTON.— 

12 (A) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this Act, the Sec14 retary shall implement revisions in the adminis15 tration of the marketing assistance loan program 

16 for upland cotton to more accurately and effi17 ciently reflect market values for upland cotton. 

18 (B) MANDATORY REVISIONS.—Revisions 

19 under subparagraph (A) shall include— 

20 (i) the elimination of warehouse loca21 tion differentials; 

22 (ii) the establishment of differentials 

23 for the various quality factors and staple 

24 lengths of cotton based on a 3-year, weight25 ed moving average of the weighted des-
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1 ignated spot market regions, as determined 

2 by regional production; 

3 (iii) the elimination of any artificial 

4 split in the premium or discount between 

5 upland cotton with a 32 or 33 staple length 

6 due to micronaire; and 

7 (iv) a mechanism to ensure that no 

8 premium or discount is established that ex9 ceeds the premium or discount associated 

10 with a leaf grade that is 1 better than the 

11 applicable color grade. 

12 (C) DISCRETIONARY REVISIONS.—Revisions 

13 under subparagraph (A) may include— 

14 (i) the use of non-spot market price 

15 data, in addition to spot market price data, 

16 that would enhance the accuracy of the 

17 price information used in determining qual18 ity adjustments under this subsection; 

19 (ii) adjustments in the premiums or 

20 discounts associated with upland cotton 

21 with a staple length of 33 or above due to 

22 micronaire with the goal of eliminating any 

23 unnecessary artificial splits in the calcula24 tions of the premiums or discounts; and 
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1 (iii) such other adjustments as the Sec2 retary determines appropriate, after con3 sultations conducted in accordance with 

4 paragraph (3). 

5 (3) CONSULTATION WITH PRIVATE SECTOR.— 

6 (A) PRIOR TO REVISION.—In making ad7 justments to the loan rate for cotton (including 

8 any review of the adjustments) as provided in 

9 this subsection, the Secretary shall consult with 

10 representatives of the United States cotton indus11 try. 

12 (B) INAPPLICABILITY OF FEDERAL ADVI13 SORY COMMITTEE ACT.—The Federal Advisory 

14 Committee Act (5 U.S.C. App.) shall not apply 

15 to consultations under this subsection. 

16 (4) REVIEW OF ADJUSTMENTS.—The Secretary 

17 may review the operation of the upland cotton quality 

18 adjustments implemented pursuant to this subsection 

19 and may make further revisions to the administration 

20 of the loan program for upland cotton, by— 

21 (A) revoking or revising any actions taken 

22 under paragraph (2)(B); or 

23 (B) revoking or revising any actions taken 

24 or authorized to be taken under paragraph 

25 (2)(C). 
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1 (e) RICE.—The Secretary shall not make adjustments 

2 in the loan rates for long grain rice and medium grain 

3 rice, except for differences in grade and quality (including 

4 milling yields). 

5 Subtitle C—Sugar 

6 SEC. 1301. SUGAR PROGRAM. 

7 (a) CONTINUATION OF CURRENT PROGRAM AND LOAN

8 RATES.— 

9 (1) SUGARCANE.—Section 156(a)(5) of the Fed10 eral Agriculture Improvement and Reform Act of 

11 1996 (7 U.S.C. 7272(a)(5)) is amended by striking 

12 ‘‘the 2012 crop year’’ and inserting ‘‘each of the 2014 

13 through 2018 crop years’’. 

14 (2) SUGAR BEETS.—Section 156(b)(2) of the 

15 Federal Agriculture Improvement and Reform Act of 

16 1996 (7 U.S.C. 7272(b)(2)) is amended by striking 

17 ‘‘2012’’ and inserting ‘‘2018’’. 

18 (3) EFFECTIVE PERIOD.—Section 156(i) of the 

19 Federal Agriculture Improvement and Reform Act of 

20 1996 (7 U.S.C. 7272(i)) is amended by striking 

21 ‘‘2012’’ and inserting ‘‘2018’’. 

22 (b) FLEXIBLE MARKETING ALLOTMENTS FOR

23 SUGAR.— 

24 (1) SUGAR ESTIMATES.—Section 359b(a)(1) of 

25 the Agricultural Adjustment Act of 1938 (7 U.S.C. 
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1 1359bb(a)(1)) is amended by striking ‘‘2012’’ and in2 serting ‘‘2018’’. 

3 (2) EFFECTIVE PERIOD.—Section 359l(a) of the 

4 Agricultural Adjustment Act of 1938 (7 U.S.C. 

5 1359ll(a)) is amended by striking ‘‘2012’’ and insert6 ing ‘‘2018’’. 

7 Subtitle D—Dairy 

8 PART I—DAIRY PRODUCTION MARGIN PROTEC9 TION AND DAIRY MARKET STABILIZATION 

10 PROGRAMS 

11 SEC. 1401. DEFINITIONS. 

12 In this part: 

13 (1) ACTUAL DAIRY PRODUCTION MARGIN.—The 

14 term ‘‘actual dairy production margin’’ means the 

15 difference between the all-milk price and the average 

16 feed cost, as calculated under section 1402. 

17 (2) ALL-MILK PRICE.—The term ‘‘all-milk price’’ 

18 means the average price received, per hundredweight 

19 of milk, by dairy operations for all milk sold to 

20 plants and dealers in the United States, as deter21 mined by the Secretary. 

22 (3) ANNUAL PRODUCTION HISTORY.—The term 

23 ‘‘annual production history’’ means the production 

24 history determined for a participating dairy oper25 ation under section 1413(b) whenever the partici-
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1 pating dairy operation purchases supplemental pro2 duction margin protection. 

3 (4) AVERAGE FEED COST.—The term ‘‘average 

4 feed cost’’ means the average cost of feed used by a 

5 dairy operation to produce a hundredweight of milk, 

6 determined under section 1402 using the sum of the 

7 following: 

8 (A) The product determined by multiplying 

9 1.0728 by the price of corn per bushel. 

10 (B) The product determined by multiplying 

11 0.00735 by the price of soybean meal per ton. 

12 (C) The product determined by multiplying 

13 0.0137 by the price of alfalfa hay per ton. 

14 (5) BASIC PRODUCTION HISTORY.—The term 

15 ‘‘basic production history’’ means the production his16 tory determined for a participating dairy operation 

17 under section 1413(a) for provision of basic produc18 tion margin protection. 

19 (6) CONSECUTIVE 2-MONTH PERIOD.—The term 

20 ‘‘consecutive 2-month period’’ refers to the 2-month 

21 period consisting of the months of January and Feb22 ruary, March and April, May and June, July and 

23 August, September and October, or November and De24 cember, respectively. 

25 (7) DAIRY OPERATION.— 
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1 (A) IN GENERAL.—The term ‘‘dairy oper2 ation’’ means, as determined by the Secretary, 1 

3 or more dairy producers that produce and mar4 ket milk as a single dairy operation in which 

5 each dairy producer— 

6 (i) shares in the pooling of resources 

7 and a common ownership structure; 

8 (ii) is at risk in the production of milk 

9 on the dairy operation; and 

10 (iii) contributes land, labor, manage11 ment, equipment, or capital to the dairy op12 eration. 

13 (B) ADDITIONAL OWNERSHIP STRUC14 TURES.—The Secretary shall determine addi15 tional ownership structures to be covered by the 

16 definition of dairy operation. 

17 (8) HANDLER.— 

18 (A) IN GENERAL.—The term ‘‘handler’’ 

19 means the initial individual or entity making 

20 payment to a dairy operation for milk produced 

21 in the United States and marketed for commer22 cial use. 

23 (B) PRODUCER-HANDLER.—The term in24 cludes a ‘‘producer-handler’’ when the producer 

25 satisfies the definition in subparagraph (A). 
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1 (9) PARTICIPATING DAIRY OPERATION.—The 

2 term ‘‘participating dairy operation’’ means a dairy 

3 operation that— 

4 (A) signs up under section 1412 to partici5 pate in the production margin protection pro6 gram under subpart A; and 

7 (B) as a result, also participates in the sta8 bilization program under subpart B. 

9 (10) PRODUCTION MARGIN PROTECTION PRO10 GRAM.—The term ‘‘production margin protection pro11 gram’’ means the dairy production margin protection 

12 program required by subpart A. 

13 (11) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Agriculture. 

15 (12) STABILIZATION PROGRAM.—The term ‘‘sta16 bilization program’’ means the dairy market sta17 bilization program required by subpart B for all par18 ticipating dairy operations. 

19 (13) STABILIZATION PROGRAM BASE.—The term 

20 ‘‘stabilization program base’’, with respect to a par21 ticipating dairy operation, means the stabilization 

22 program base calculated for the participating dairy 

23 operation under section 1431(b). 

24 (14) UNITED STATES.—The term ‘‘United 

25 States’’, in a geographical sense, means the 50 States, 
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1 the District of Columbia, American Samoa, Guam, 

2 the Commonwealth of the Northern Mariana Islands, 

3 the Commonwealth of Puerto Rico, the Virgin Islands 

4 of the United States, and any other territory or pos5 session of the United States. 

6 SEC. 1402. CALCULATION OF AVERAGE FEED COST AND AC7 TUAL DAIRY PRODUCTION MARGINS. 

8 (a) CALCULATION OF AVERAGE FEED COST.—The Sec9 retary shall calculate the national average feed cost for each 

10 month using the following data: 

11 (1) The price of corn for a month shall be the 

12 price received during that month by farmers in the 

13 United States for corn, as reported in the monthly 

14 Agricultural Prices report by the Secretary. 

15 (2) The price of soybean meal for a month shall 

16 be the central Illinois price for soybean meal, as re17 ported in the Market News–Monthly Soybean Meal 

18 Price Report by the Secretary. 

19 (3) The price of alfalfa hay for a month shall be 

20 the price received during that month by farmers in 

21 the United States for alfalfa hay, as reported in the 

22 monthly Agricultural Prices report by the Secretary. 

23 (b) CALCULATION OF ACTUAL DAIRY PRODUCTION

24 MARGINS.— 
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1 (1) PRODUCTION MARGIN PROTECTION PRO2 GRAM.—For use in the production margin protection 

3 program under subpart A, the Secretary shall cal4 culate the actual dairy production margin for each 

5 consecutive 2-month period by subtracting— 

6 (A) the average feed cost for that consecutive 

7 2-month period, determined in accordance with 

8 subsection (a); from 

9 (B) the all-milk price for that consecutive 2- 

10 month period. 

11 (2) STABILIZATION PROGRAM.—For use in the 

12 stabilization program under subpart B, the Secretary 

13 shall calculate each month the actual dairy produc14 tion margin for the preceding month by subtracting— 

15 (A) the average feed cost for that preceding 

16 month, determined in accordance with subsection 

17 (a); from 

18 (B) the all-milk price for that preceding 

19 month. 

20 (3) TIME FOR CALCULATIONS.—The calculations 

21 required by paragraphs (1) and (2) shall be made as 

22 soon as practicable using the full month price of the 

23 applicable reference month. 
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1 Subpart A—Dairy Production Margin Protection 

2 Program 

3 SEC. 1411. ESTABLISHMENT OF DAIRY PRODUCTION MAR4 GIN PROTECTION PROGRAM. 

5 Effective not later than 120 days after the effective date 

6 of this subtitle, the Secretary shall establish and administer 

7 a dairy production margin protection program under 

8 which participating dairy operations are paid— 

9 (1) basic production margin protection program 

10 payments under section 1414 when actual dairy pro11 duction margins are less than the threshold levels for 

12 such payments; and 

13 (2) supplemental production margin protection 

14 program payments under section 1415 if purchased 

15 by a participating dairy operation. 

16 SEC. 1412. PARTICIPATION OF DAIRY OPERATIONS IN PRO17 DUCTION MARGIN PROTECTION PROGRAM. 

18 (a) ELIGIBILITY.—All dairy operations in the United 

19 States shall be eligible to participate in the production mar20 gin protection program, except that a participating dairy 

21 operation shall be required to register with the Secretary 

22 before the participating dairy operation may receive— 

23 (1) basic production margin protection program 

24 payments under section 1414; and 

25 (2) if the participating dairy operation pur26 chases supplemental production margin protection 
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1 under section 1415, supplemental production margin 

2 protection program payments under such section. 

3 (b) REGISTRATION PROCESS.— 

4 (1) IN GENERAL.—The Secretary shall specify 

5 the manner and form by which a participating dairy 

6 operation may register to participate in the produc7 tion margin protection program. 

8 (2) TREATMENT OF MULTIPRODUCER DAIRY OP9 ERATIONS.—If a participating dairy operation is op10 erated by more than 1 dairy producer, all of the 

11 dairy producers of the participating dairy operation 

12 shall be treated as a single dairy operation for pur13 poses of— 

14 (A) registration to receive basic production 

15 margin protection and election to purchase sup16 plemental production margin protection; 

17 (B) payment of the participation fee under 

18 subsection (d) and producer premiums under sec19 tion 1415; and 

20 (C) participation in the stabilization pro21 gram under subtitle B. 

22 (3) TREATMENT OF PRODUCERS WITH MULTIPLE

23 DAIRY OPERATIONS.—If a dairy producer operates 2 

24 or more dairy operations, each dairy operation of the 

25 producer shall separately register to receive basic pro-
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1 duction margin protection and purchase supple2 mental production margin protection and only those 

3 dairy operations so registered shall be covered by the 

4 stabilization program. 

5 (c) TIME FOR REGISTRATION.— 

6 (1) EXISTING DAIRY OPERATIONS.—During the 

7 15-month period beginning on the date of the initi8 ation of the registration period for the production 

9 margin protection program, a dairy operation that is 

10 actively engaged as of such date may register with the 

11 Secretary— 

12 (A) to receive basic production margin pro13 tection; and 

14 (B) if the dairy operation elects, to pur15 chase supplemental production margin protec16 tion. 

17 (2) NEW ENTRANTS.—A dairy producer that has 

18 no existing interest in a dairy operation as of the 

19 date of the initiation of the registration period for the 

20 production margin protection program, but that, after 

21 such date, establishes a new dairy operation, may 

22 register with the Secretary during the 1-year period 

23 beginning on the date on which the dairy operation 

24 first markets milk commercially— 
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1 (A) to receive basic production margin pro2 tection; and 

3 (B) if the dairy operation elects, to pur4 chase supplemental production margin protec5 tion. 

6 (d) TRANSITION FROM MILC TO PRODUCTION MARGIN

7 PROTECTION.— 

8 (1) DEFINITION OF TRANSITION PERIOD.—In 

9 this subsection, the term ‘‘transition period’’ means 

10 the period during which the milk income loss pro11 gram established under section 1506 of the Food, Con12 servation, and Energy Act of 2008 (7 U.S.C. 8773) 

13 and the production margin protection program under 

14 this subtitle are both in existence. 

15 (2) NOTICE OF AVAILABILITY.—Not later than 30 

16 days after the date of enactment of this Act, the Sec17 retary shall publish a notice in the Federal Register 

18 to inform dairy operations of the availability of basic 

19 production margin protection and supplemental pro20 duction margin protection, including the terms of the 

21 protection and information about the option of dairy 

22 operations during the transition period to make an 

23 election described in paragraph (3). 

24 (3) ELECTION.—Except as provided in para25 graph (4), a dairy operation may elect to participate 
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1 in either the milk income loss program established 

2 under section 1506 of the Food, Conservation, and 

3 Energy Act of 2008 (7 U.S.C. 8773) or the production 

4 margin protection program under this subtitle for the 

5 duration of the transition period. 

6 (4) TRANSFER TO PRODUCTION MARGIN PROTEC7 TION.—A dairy operation that elects to participate in 

8 the milk income loss program established under sec9 tion 1506 of the Food, Conservation, and Energy Act 

10 of 2008 (7 U.S.C. 8773) during the transition period 

11 may, at any time, make a permanent transfer to the 

12 production margin protection program. 

13 (e) ADMINISTRATION FEE.— 

14 (1) ADMINISTRATION FEE REQUIRED.—Except as 

15 provided in paragraph (5), a participating dairy op16 eration shall— 

17 (A) pay an administration fee under this 

18 subsection to register to participate in the pro19 duction margin protection program; and 

20 (B) pay the administration fee annually 

21 thereafter to continue to participate in the pro22 duction margin protection program. 

23 (2) FEE AMOUNT.—The administration fee for a 

24 participating dairy operation for a calendar year 

25 shall be based on the pounds of milk (in millions) 
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1 marketed by the participating dairy operation in the 

2 previous calendar year, as follows: 

Pounds Marketed (in millions) Administration Fee 

less than 1 $100

1 to 5 $250

more than 5 to 10 $350

more than 10 to 40 $1,000

more than 40 $2,500. 

3 (3) DEPOSIT OF FEES.—All administration fees 

4 collected under this subsection shall be credited to the 

5 fund or account used to cover the costs incurred to ad6 minister the production margin protection program 

7 and the stabilization program and shall be available 

8 to the Secretary, without further appropriation and 

9 until expended, for use or transfer as provided in 

10 paragraph (4). 

11 (4) USE OF FEES.—The Secretary shall use ad12 ministration fees collected under this subsection— 

13 (A) to cover administrative costs of the pro14 duction margin protection program and sta15 bilization program; and 

16 (B) to cover costs of the Department of Ag17 riculture relating to reporting of dairy market 

18 news, carrying out the amendments made by sec19 tion 1476, and carrying out section 273 of the 

20 Agricultural Marketing Act of 1946 (7 U.S.C. 
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1 1637b), to the extent funds remain available 

2 after operation of subparagraph (A). 

3 (5) WAIVER.—The Secretary shall waive or re4 duce the administration fee required under paragraph 

5 (1) in the case of a limited-resource dairy operation, 

6 as defined by the Secretary. 

7 (f) LIMITATION.—A dairy operation may only partici8 pate in the production margin protection program or the 

9 livestock gross margin for dairy program under the Federal 

10 Crop Insurance Act (7 U.S.C. 1501 et seq.), but not both. 

11 SEC. 1413. PRODUCTION HISTORY OF PARTICIPATING 

12 DAIRY OPERATIONS. 

13 (a) PRODUCTION HISTORY FOR BASIC PRODUCTION

14 MARGIN PROTECTION.— 

15 (1) DETERMINATION REQUIRED.—For purposes 

16 of providing basic production margin protection, the 

17 Secretary shall determine the basic production history 

18 of a participating dairy operation. 

19 (2) CALCULATION.—Except as provided in para20 graph (3), the basic production history of a partici21 pating dairy operation for basic production margin 

22 protection is equal to the highest annual milk mar23 ketings of the participating dairy operation during 

24 any 1 of the 3 calendar years immediately preceding 

25 the calendar year in which the participating dairy 
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1 operation first signed up to participate in the produc2 tion margin protection program. 

3 (3) ELECTION BY NEW DAIRY OPERATIONS.—In 

4 the case of a participating dairy operation that has 

5 been in operation for less than a year, the partici6 pating dairy operation shall elect 1 of the following 

7 methods for the Secretary to determine the basic pro8 duction history of the participating dairy operation: 

9 (A) The volume of the actual milk mar10 ketings for the months the participating dairy 

11 operation has been in operation extrapolated to 

12 a yearly amount. 

13 (B) An estimate of the actual milk mar14 ketings of the participating dairy operation 

15 based on the herd size of the participating dairy 

16 operation relative to the national rolling herd 

17 average data published by the Secretary. 

18 (4) NO CHANGE IN PRODUCTION HISTORY FOR

19 BASIC PRODUCTION MARGIN PROTECTION.—Once the 

20 basic production history of a participating dairy op21 eration is determined under paragraph (2) or (3), the 

22 basic production history shall not be subsequently 

23 changed for purposes of determining the amount of 

24 any basic production margin protection payments for 
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1 the participating dairy operation made under section 

2 1414. 

3 (b) ANNUAL PRODUCTION HISTORY FOR SUPPLE4 MENTAL PRODUCTION MARGIN PROTECTION.— 

5 (1) DETERMINATION REQUIRED.—For purposes 

6 of providing supplemental production margin protec7 tion for a participating dairy operation that pur8 chases supplemental production margin protection for 

9 a year under section 1415, the Secretary shall deter10 mine the annual production history of the partici11 pating dairy operation under paragraph (2). 

12 (2) CALCULATION.—The annual production his13 tory of a participating dairy operation for a year is 

14 equal to the actual milk marketings of the partici15 pating dairy operation during the preceding calendar 

16 year. 

17 (3) NEW DAIRY OPERATIONS.—Subsection (a)(3) 

18 shall apply with respect to determining the annual 

19 production history of a participating dairy operation 

20 that has been in operation for less than a year. 

21 (c) REQUIRED INFORMATION.—A participating dairy 

22 operation shall provide all information that the Secretary 

23 may require in order to establish— 

24 (1) the basic production history of the partici25 pating dairy operation under subsection (a); and 
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1 (2) the production history of the participating 

2 dairy operation whenever the participating dairy op3 eration purchases supplemental production margin 

4 protection under section 1415. 

5 (d) TRANSFER OF PRODUCTION HISTORIES.— 

6 (1) TRANSFER BY SALE OR LEASE.—In promul7 gating the rules to initiate the production margin 

8 protection program, the Secretary shall specify the 

9 conditions under which and the manner by which the 

10 production history of a participating dairy operation 

11 may be transferred by sale or lease. 

12 (2) COVERAGE LEVEL.— 

13 (A) BASIC PRODUCTION MARGIN PROTEC14 TION.—A purchaser or lessee to whom the Sec15 retary transfers a basic production history under 

16 this subsection shall not obtain a different level 

17 of basic production margin protection than the 

18 basic production margin protection coverage held 

19 by the seller or lessor from whom the transfer 

20 was obtained. 

21 (B) SUPPLEMENTAL PRODUCTION MARGIN

22 PROTECTION.—A purchaser or lessee to whom the 

23 Secretary transfers an annual production history 

24 under this subsection shall not obtain a different 

25 level of supplemental production margin protec-
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1 tion coverage than the supplemental production 

2 margin protection coverage in effect for the seller 

3 or lessor from whom the transfer was obtained 

4 for the calendar year in which the transfer was 

5 made. 

6 (e) MOVEMENT AND TRANSFER OF PRODUCTION HIS7 TORY.— 

8 (1) MOVEMENT AND TRANSFER AUTHORIZED.— 

9 Subject to paragraph (2), if a participating dairy op10 eration moves from 1 location to another location, the 

11 participating dairy operation may transfer the basic 

12 production history and annual production history as13 sociated with the participating dairy operation. 

14 (2) NOTIFICATION REQUIREMENT.—A partici15 pating dairy operation shall notify the Secretary of 

16 any move of a participating dairy operation under 

17 paragraph (1). 

18 (3) SUBSEQUENT OCCUPATION OF VACATED LO19 CATION.—A party subsequently occupying a partici20 pating dairy operation location vacated as described 

21 in paragraph (1) shall have no interest in the basic 

22 production history or annual production history pre23 viously associated with the participating dairy oper24 ation at such location. 
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1 SEC. 1414. BASIC PRODUCTION MARGIN PROTECTION. 

2 (a) PAYMENT THRESHOLD.—The Secretary shall make 

3 a payment to participating dairy operations in accordance 

4 with subsection (b) whenever the average actual dairy pro5 duction margin for a consecutive 2-month period is less 

6 than $4.00 per hundredweight of milk. 

7 (b) BASIC PRODUCTION MARGIN PROTECTION PAY8 MENT.—The basic production margin protection payment 

9 for a participating dairy operation for a consecutive 2- 

10 month period shall be equal to the product obtained by mul11 tiplying— 

12 (1) the difference between the average actual 

13 dairy production margin for the consecutive 2-month 

14 period and $4.00, except that, if the difference is more 

15 than $4.00, the Secretary shall use $4.00; by 

16 (2) the lesser of— 

17 (A) 80 percent of the production history of 

18 the participating dairy operation, divided by 6; 

19 or 

20 (B) the actual quantity of milk marketed by 

21 the participating dairy operation during the 

22 consecutive 2-month period. 

23 SEC. 1415. SUPPLEMENTAL PRODUCTION MARGIN PROTEC24 TION. 

25 (a) ELECTION OF SUPPLEMENTAL PRODUCTION MAR26 GIN PROTECTION.—A participating dairy operation may 
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1 annually purchase supplemental production margin protec2 tion to protect, during the calendar year for which pur3 chased, a higher level of the income of a participating dairy 

4 operation than the income level guaranteed by basic produc5 tion margin protection under section 1414. 

6 (b) SELECTION OF PAYMENT THRESHOLD.—A partici7 pating dairy operation purchasing supplemental produc8 tion margin protection for a year shall elect a coverage level 

9 that is higher, in any increment of $0.50, than the payment 

10 threshold for basic production margin protection specified 

11 in section 1414(a), but not to exceed $8.00. 

12 (c) COVERAGE PERCENTAGE.—A participating dairy 

13 operation purchasing supplemental production margin pro14 tection for a year shall elect a percentage of coverage equal 

15 to not more than 90 percent, nor less than 25 percent, of 

16 the annual production history of the participating dairy 

17 operation. 

18 (d) PREMIUMS FOR SUPPLEMENTAL PRODUCTION

19 MARGIN PROTECTION.— 

20 (1) PREMIUMS REQUIRED.—A participating 

21 dairy operation that purchases supplemental produc22 tion margin protection shall pay an annual premium 

23 equal to the product obtained by multiplying— 
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1 (A) the coverage percentage elected by the 

2 participating dairy operation under subsection 

3 (c); 

4 (B) the annual production history of the 

5 participating dairy operation; and 

6 (C) the premium per hundredweight of 

7 milk, as specified in the applicable table under 

8 paragraph (2) or (3). 

9 (2) PREMIUM PER HUNDREDWEIGHT FOR FIRST

10 4 MILLION POUNDS OF PRODUCTION.—For the first 

11 4,000,000 pounds of milk marketings included in the 

12 annual production history of a participating dairy 

13 operation, the premium per hundredweight cor14 responding to each coverage level specified in the fol15 lowing table is as follows: 

Coverage Level Premium per Cwt. 

$4.50 $0.01

$5.00 $0.02

$5.50 $0.035

$6.00 $0.045

$6.50 $0.09

$7.00 $0.40

$7.50 $0.60

$8.00 $0.95. 

16 (3) PREMIUM PER HUNDREDWEIGHT FOR PRO17 DUCTION IN EXCESS OF 4 MILLION POUNDS.—For 

18 milk marketings in excess of 4,000,000 pounds in19 cluded in the annual production history of a partici20 pating dairy operation, the premium per hundred-
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1 weight corresponding to each coverage level is as fol2 lows: 

Coverage Level Premium per Cwt. 

$4.50 $0.02

$5.00 $0.04

$5.50 $0.10

$6.00 $0.15

$6.50 $0.29

$7.00 $0.62

$7.50 $0.83

$8.00 $1.06. 

3 (4) TIME FOR PAYMENT.—In promulgating the 

4 rules to initiate the production margin protection 

5 program, the Secretary shall provide more than 1 

6 method by which a participating dairy operation that 

7 purchases supplemental production margin protection 

8 for a calendar year may pay the premium under this 

9 subsection for that year in any manner that maxi10 mizes participating dairy operation payment flexi11 bility and program integrity. 

12 (e) PREMIUM OBLIGATIONS.— 

13 (1) PRO-RATION OF PREMIUM FOR NEW DAIRY

14 OPERATIONS.—A participating dairy operation de15 scribed in section 1412(c)(2) that purchases supple16 mental production margin protection for a calendar 

17 year after the start of the calendar year shall pay a 

18 pro-rated premium for that calendar year based on 

19 the portion of the calendar year for which the partici20 pating dairy operation purchases the coverage. 
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1 (2) LEGAL OBLIGATION.—A participating dairy 

2 operation that purchases supplemental production 

3 margin protection for a calendar year shall be legally 

4 obligated to pay the applicable premium for that cal5 endar year, except that the Secretary may waive that 

6 obligation, under terms and conditions determined by 

7 the Secretary, for 1 or more producers in any partici8 pating dairy operation in the case of death, retire9 ment, permanent dissolution of a participating dairy 

10 operation, or other circumstances as the Secretary 

11 considers appropriate to ensure the integrity of the 

12 program. 

13 (f) SUPPLEMENTAL PAYMENT THRESHOLD.—A par14 ticipating dairy operation with supplemental production 

15 margin protection shall receive a supplemental production 

16 margin protection payment whenever the average actual 

17 dairy production margin for a consecutive 2-month period 

18 is less than the coverage level threshold selected by the par19 ticipating dairy operation under subsection (b). 

20 (g) SUPPLEMENTAL PRODUCTION MARGIN PROTEC21 TION PAYMENTS.— 

22 (1) IN GENERAL.—The supplemental production 

23 margin protection payment for a participating dairy 

24 operation is in addition to the basic production mar25 gin protection payment. 
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1 (2) AMOUNT OF PAYMENT.—The supplemental 

2 production margin protection payment for the par3 ticipating dairy operation shall be determined as fol4 lows: 

5 (A) The Secretary shall calculate the dif6 ference between the coverage level threshold se7 lected by the participating dairy operation 

8 under subsection (b) and the greater of— 

9 (i) the average actual dairy production 

10 margin for the consecutive 2-month period; 

11 or 

12 (ii) $4.00. 

13 (B) The amount determined under subpara14 graph (A) shall be multiplied by the percentage 

15 selected by the participating dairy operation 

16 under subsection (c) and by the lesser of the fol17 lowing: 

18 (i) The annual production history of 

19 the participating dairy operation, divided 

20 by 6. 

21 (ii) The actual amount of milk mar22 keted by the participating dairy operation 

23 during the consecutive 2-month period. 
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1 SEC. 1416. EFFECT OF FAILURE TO PAY ADMINISTRATION 

2 FEES OR PREMIUMS. 

3 (a) LOSS OF BENEFITS.—A participating dairy oper4 ation that fails to pay the required administration fee 

5 under section 1412 or is in arrears on premium payments 

6 for supplemental production margin protection under sec7 tion 1415— 

8 (1) remains legally obligated to pay the adminis9 tration fee or premiums, as the case may be; and 

10 (2) may not receive basic production margin 

11 protection payments or supplemental production mar12 gin protection payments until the fees or premiums 

13 are fully paid. 

14 (b) ENFORCEMENT.—The Secretary may take such ac15 tion as necessary to collect administration fees and pre16 mium payments for supplemental production margin pro17 tection. 

18 Subpart B—Dairy Market Stabilization Program 

19 SEC. 1431. ESTABLISHMENT OF DAIRY MARKET STABILIZA20 TION PROGRAM. 

21 (a) PROGRAM REQUIRED; PURPOSE.—Effective not 

22 later than 120 days after the effective date of this subtitle, 

23 the Secretary shall establish and administer a dairy market 

24 stabilization program applicable to participating dairy op25 erations for the purpose of assisting in balancing the supply 
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1 of milk with demand when participating dairy operations 

2 are experiencing low or negative operating margins. 

3 (b) ELECTION OF STABILIZATION PROGRAM BASE

4 CALCULATION METHOD.— 

5 (1) ELECTION.—When a dairy operation signs 

6 up under section 1412 to participate in the produc7 tion margin protection program, the dairy operation 

8 shall inform the Secretary of the method by which the 

9 stabilization program base for the participating dairy 

10 operation will be calculated under paragraph (3). 

11 (2) CHANGE IN CALCULATION METHOD.—A par12 ticipating dairy operation may change the stabiliza13 tion program base calculation method to be used for 

14 a calendar year by notifying the Secretary of the 

15 change not later than a date determined by the Sec16 retary. 

17 (3) CALCULATION METHODS.—A participating 

18 dairy operation may elect either of the following 

19 methods for calculation of the stabilization program 

20 base for the participating dairy operation: 

21 (A) The volume of the average monthly milk 

22 marketings of the participating dairy operation 

23 for the 3 months immediately preceding the an24 nouncement by the Secretary that the stabiliza25 tion program will become effective. 
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1 (B) The volume of the monthly milk mar2 ketings of the participating dairy operation for 

3 the same month in the preceding year as the 

4 month for which the Secretary has announced 

5 the stabilization program will become effective. 

6 SEC. 1432. THRESHOLD FOR IMPLEMENTATION AND REDUC7 TION IN DAIRY PAYMENTS. 

8 (a) WHEN STABILIZATION PROGRAM REQUIRED.—Ex9 cept as provided in subsection (b), the Secretary shall an10 nounce that the stabilization program is in effect and order 

11 reduced payments by handlers to participating dairy oper12 ations that exceed the applicable percentage of the partici13 pating dairy operation’s stabilization program base when14 ever— 

15 (1) the actual dairy production margin has been 

16 $6.00 or less per hundredweight of milk for each of 

17 the immediately preceding 2 months; or 

18 (2) the actual dairy production margin has been 

19 $4.00 or less per hundredweight of milk for the imme20 diately preceding month. 

21 (b) EXCEPTION.—If any of the conditions described in 

22 section 1436(b) have been met during the 2-month period 

23 immediately preceding the month in which the announce24 ment under subsection (a) would otherwise be made by the 
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1 Secretary in the absence of this exception, the Secretary 

2 shall— 

3 (1) suspend the stabilization program; 

4 (2) refrain from making the announcement 

5 under subsection (a) to implement order the stabiliza6 tion payment; or 

7 (3) order reduced payments. 

8 (c) EFFECTIVE DATE FOR IMPLEMENTATION OF PAY9 MENT REDUCTIONS.—Reductions in dairy payments shall 

10 commence beginning on the first day of the month imme11 diately following the date of the announcement by the Sec12 retary under subsection (a). 

13 SEC. 1433. MILK MARKETINGS INFORMATION. 

14 (a) COLLECTION OF MILK MARKETING DATA.—The 

15 Secretary shall establish, by regulation, a process to collect 

16 from participating dairy operations and handlers such in17 formation that the Secretary considers necessary for each 

18 month during which the stabilization program is in effect. 

19 (b) REDUCE REGULATORY BURDEN.—When imple20 menting the process under subsection (a), the Secretary 

21 shall minimize the regulatory burden on participating 

22 dairy operations and handlers. 
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1 SEC. 1434. CALCULATION AND COLLECTION OF REDUCED 

2 DAIRY OPERATION PAYMENTS. 

3 (a) REDUCED PARTICIPATING DAIRY OPERATION PAY4 MENTS REQUIRED.—During any month in which payment 

5 reductions are in effect under the stabilization program, 

6 each handler shall reduce payments to each participating 

7 dairy operation from whom the handler receives milk. 

8 (b) REDUCTIONS BASED ON ACTUAL DAIRY PRODUC9 TION MARGIN.— 

10 (1) REDUCTION REQUIREMENT 1.—If the Sec11 retary determines that the average actual dairy pro12 duction margin has been less than $6.00 but greater 

13 than $5.00 per hundredweight of milk for 2 consecu14 tive months, the handler shall make payments to a 

15 participating dairy operation for a month based on 

16 the greater of the following: 

17 (A) 98 percent of the stabilization program 

18 base of the participating dairy operation. 

19 (B) 94 percent of the marketings of milk for 

20 the month by the participating dairy operation. 

21 (2) REDUCTION REQUIREMENT 2.—If the Sec22 retary determines that the average actual dairy pro23 duction margin has been less than $5.00 but greater 

24 than $4.00 for 2 consecutive months, the handler shall 

25 make payments to a participating dairy operation 

26 for a month based on the greater of the following: 
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1 (A) 97 percent of the stabilization program 

2 base of the participating dairy operation. 

3 (B) 93 percent of the marketings of milk for 

4 the month by the participating dairy operation. 

5 (3) REDUCTION REQUIREMENT 3.—If the Sec6 retary determines that the average actual dairy pro7 duction margin has been $4.00 or less for any 1 

8 month, the handler shall make payments to a partici9 pating dairy operation for a month based on the 

10 greater of the following: 

11 (A) 96 percent of the stabilization program 

12 base of the participating dairy operation. 

13 (B) 92 percent of the marketings of milk for 

14 the month by the participating dairy operation. 

15 (c) CONTINUATION OF REDUCTIONS.—The largest level 

16 of payment reduction required under paragraph (1), (2), 

17 or (3) of subsection (b) shall be continued for each month 

18 until the Secretary suspends the stabilization program and 

19 terminates payment reductions in accordance with section 

20 1436. 

21 (d) PAYMENT REDUCTION EXCEPTION.—Notwith22 standing any preceding subsection of this section, a handler 

23 shall make no payment reductions for a participating dairy 

24 operation for a month if the participating dairy operation’s 

25 milk marketings for the month are equal to or less than 
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1 the percentage of the stabilization program base applicable 

2 to the participating dairy operation under paragraph (1), 

3 (2), or (3) of subsection (b). 

4 SEC. 1435. REMITTING FUNDS TO THE SECRETARY AND USE 

5 OF FUNDS. 

6 (a) REMITTING FUNDS.—As soon as practicable after 

7 the end of each month during which payment reductions 

8 are in effect under the stabilization program, each handler 

9 shall remit to the Secretary an amount equal to the amount 

10 by which payments to participating dairy operations are 

11 reduced by the handler under section 1434. 

12 (b) DEPOSIT OF REMITTED FUNDS.—All funds re13 ceived under subsection (a) shall be available to the Sec14 retary, without further appropriation and until expended, 

15 for use or transfer as provided in subsection (c). 

16 (c) USE OF FUNDS.— 

17 (1) AVAILABILITY FOR CERTAIN COMMODITY DO18 NATIONS.—Not later than 90 days after the funds de19 scribed in subsection (a) are due as determined by the 

20 Secretary, the Secretary shall obligate the funds for 

21 the purpose of— 

22 (A) purchasing dairy products for donation 

23 to food banks and other programs that the Sec24 retary determines appropriate; and 
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1 (B) expanding consumption and building 

2 demand for dairy products. 

3 (2) NO DUPLICATION OF EFFORT.—The Sec4 retary shall ensure that expenditures under para5 graph (1) are compatible with, and do not duplicate, 

6 programs supported by the dairy research and pro7 motion activities conducted under the Dairy Produc8 tion Stabilization Act of 1983 (7 U.S.C. 4501 et seq.). 

9 (3) ACCOUNTING.—The Secretary shall keep an 

10 accurate account of all funds expended under para11 graph (1). 

12 (d) ANNUAL REPORT.—Not later than December 31 of 

13 each year that the stabilization program is in effect, the 

14 Secretary shall submit to the Committee on Agriculture of 

15 the House of Representatives and the Committee on Agri16 culture, Nutrition, and Forestry of the Senate a report that 

17 provides an accurate accounting of— 

18 (1) the funds received by the Secretary during 

19 the preceding fiscal year under subsection (a); 

20 (2) all expenditures made by the Secretary under 

21 subsection (b) during the preceding fiscal year; and 

22 (3) the impact of the stabilization program on 

23 dairy markets. 

24 (e) ENFORCEMENT.—If a participating dairy oper25 ation or handler fails to remit or collect the amounts by 
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1 which payments to participating dairy operations are re2 duced under section 1434, the participating dairy operation 

3 or handler responsible for the failure shall be liable to the 

4 Secretary for the amount that should have been remitted 

5 or collected, plus interest. In addition to the enforcement 

6 authorities available under section 1437, the Secretary may 

7 enforce this subsection in the courts of the United States. 

8 SEC. 1436. SUSPENSION OF REDUCED PAYMENT REQUIRE9 MENT. 

10 (a) DETERMINATION OF PRICES.—For purposes of this 

11 section: 

12 (1) The price in the United States for cheddar 

13 cheese and nonfat dry milk shall be determined by the 

14 Secretary. 

15 (2) The world price of cheddar cheese and skim 

16 milk powder shall be determined by the Secretary. 

17 (b) SUSPENSION THRESHOLDS.—The stabilization 

18 program shall be suspended or the Secretary shall refrain 

19 from making the announcement under section 1432(a) if 

20 the Secretary determines that— 

21 (1) the actual dairy production margin is great22 er than $6.00 per hundredweight of milk for 2 con23 secutive months; 

24 (2) the actual dairy production margin is equal 

25 to or less than $6.00 (but greater than $5.00) for 2 
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1 consecutive months, and during the same 2 consecu2 tive months— 

3 (A) the price in the United States for ched4 dar cheese is equal to or greater than the world 

5 price of cheddar cheese; or 

6 (B) the price in the United States for non7 fat dry milk is equal to or greater than the world 

8 price of skim milk powder; 

9 (3) the actual dairy production margin is equal 

10 to or less than $5.00 (but greater than $4.00) for 2 

11 consecutive months, and during the same 2 consecu12 tive months— 

13 (A) the price in the United States for ched14 dar cheese is more than 5 percent above the 

15 world price of cheddar cheese; or 

16 (B) the price in the United States for non17 fat dry milk is more than 5 percent above the 

18 world price of skim milk powder; or 

19 (4) the actual dairy production margin is equal 

20 to or less than $4.00 for 2 consecutive months, and 

21 during the same 2 consecutive months— 

22 (A) the price in the United States for ched23 dar cheese is more than 7 percent above the 

24 world price of cheddar cheese; or 
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1 (B) the price in the United States for non2 fat dry milk is more than 7 percent above the 

3 world price of skim milk powder. 

4 (c) IMPLEMENTATION BY HANDLERS.—Effective on the 

5 day after the date of the announcement by the Secretary 

6 under subsection (b) of the suspension of the stabilization 

7 program, the handler shall cease reducing payments to par8 ticipating dairy operations under the stabilization pro9 gram. 

10 (d) CONDITION ON RESUMPTION OF STABILIZATION

11 PROGRAM.—Upon the announcement by the Secretary 

12 under subsection (b) that the stabilization program has been 

13 suspended, the stabilization program may not be imple14 mented again until, at the earliest— 

15 (1) 2 months have passed, beginning on the first 

16 day of the month immediately following the an17 nouncement by the Secretary; and 

18 (2) the conditions of section 1432(a) are again 

19 met. 

20 SEC. 1437. ENFORCEMENT. 

21 (a) UNLAWFUL ACT.—It shall be unlawful and a viola22 tion of the this subpart for any person subject to the sta23 bilization program to willfully fail or refuse to provide, or 

24 delay the timely reporting of, accurate information and re-
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1 mittance of funds to the Secretary in accordance with this 

2 subpart. 

3 (b) ORDER.—After providing notice and opportunity 

4 for a hearing to an affected person, the Secretary may issue 

5 an order against any person to cease and desist from con6 tinuing any violation of this subpart. 

7 (c) APPEAL.—An order of the Secretary under sub8 section (b) shall be final and conclusive unless an affected 

9 person files an appeal of the order of the Secretary in 

10 United States district court not later than 30 days after 

11 the date of the issuance of the order. A finding of the Sec12 retary in the order shall be set aside only if the finding 

13 is not supported by substantial evidence. 

14 (d) NONCOMPLIANCE WITH ORDER.—If a person sub15 ject to this subpart fails to obey an order issued under sub16 section (b) after the order has become final and 

17 unappealable, or after the appropriate United States dis18 trict court has entered a final judgment in favor of the Sec19 retary, the United States may apply to the appropriate 

20 United States district court for enforcement of the order. 

21 If the court determines that the order was lawfully made 

22 and duly served and that the person violated the order, the 

23 court shall enforce the order. 
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1 SEC. 1438. AUDIT REQUIREMENTS. 

2 (a) AUDITS OF DAIRY OPERATION AND HANDLER

3 COMPLIANCE.— 

4 (1) AUDITS AUTHORIZED.—If determined by the 

5 Secretary to be necessary to ensure compliance by 

6 participating dairy operations and handlers with the 

7 stabilization program, the Secretary may conduct 

8 periodic audits of participating dairy operations and 

9 handlers. 

10 (2) SAMPLE OF DAIRY OPERATIONS.—Any audit 

11 conducted under this subsection shall include, at a 

12 minimum, investigation of a statistically valid and 

13 random sample of participating dairy operations. 

14 (b) SUBMISSION OF RESULTS.—The Secretary shall 

15 submit the results of any audit conducted under subsection 

16 (a) to the Committee on Agriculture of the House of Rep17 resentatives and the Committee on Agriculture, Nutrition, 

18 and Forestry of the Senate and include such recommenda19 tions as the Secretary considers appropriate regarding the 

20 stabilization program. 

21 SEC. 1439. STUDY; REPORT. 

22 (a) IN GENERAL.—The Secretary shall direct the Of23 fice of the Chief Economist to conduct a study of the im24 pacts of the program established under section 1431(a). 

25 (b) CONSIDERATIONS.—The study conducted under 

26 subsection (a) shall consider— 
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1 (1) the economic impact of the program through2 out the dairy product value chain, including the im3 pact on producers, processors, domestic customers, ex4 port customers, actual market growth and potential 

5 market growth, farms of different sizes, and different 

6 regions and States; and 

7 (2) the impact of the program on the competi8 tiveness of the United States dairy industry in inter9 national markets. 

10 (c) REPORT.—Not later than December 1, 2017, the 

11 Office of the Chief Economist shall submit to the Committee 

12 on Agriculture of the House of Representatives and the 

13 Committee on Agriculture, Nutrition, and Forestry of the 

14 Senate a report that describes the results of the study con15 ducted under subsection (a). 

16 Subpart C—Administration 

17 SEC. 1451. DURATION. 

18 The production margin protection program and the 

19 stabilization program shall end on December 31, 2018. 

20 SEC. 1452. ADMINISTRATION AND ENFORCEMENT. 

21 (a) IN GENERAL.—The Secretary shall promulgate 

22 regulations to address administrative and enforcement 

23 issues involved in carrying out the production margin pro24 tection, supplemental production margin protection, and 

25 market stabilization programs. 
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1 (b) RECONSTITUTION AND ELIGIBILITY ISSUES.— 

2 (1) RECONSTITUTION.—Using authorities under 

3 section 1001(f) and 1001B of the Food Security Act 

4 of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary 

5 shall promulgate regulations to prohibit a dairy pro6 ducer from reconstituting a dairy operation for the 

7 sole purpose of the dairy producer— 

8 (A) receiving basic margin protection; 

9 (B) purchasing supplemental margin pro10 tection; or 

11 (C) avoiding participation in the market 

12 stabilization program. 

13 (2) ELIGIBILITY ISSUES.—Using authorities 

14 under section 1001(f) and 1001B of the Food Security 

15 Act of 1985 (7 U.S.C. 1308(f), 1308–2), the Secretary 

16 shall promulgate regulations— 

17 (A) to prohibit a scheme or device; 

18 (B) to provide for equitable relief; and 

19 (C) to provide for other issues affecting eli20 gibility and liability issues. 

21 (3) ADMINISTRATIVE APPEALS.—Using authori22 ties under section 1001(h) of the Food Security Act of 

23 1985 (7 U.S.C. 1308(h)) and subtitle H of the De24 partment of Agriculture Reorganization Act (7 U.S.C. 

25 6991 et seq.), the Secretary shall promulgate regula-
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1 tions to provide for administrative appeals of deci2 sions of the Secretary that are adverse to participants 

3 of the programs described in subsection (a). 

4 PART II—DAIRY MARKET TRANSPARENCY 

5 SEC. 1461. DAIRY PRODUCT MANDATORY REPORTING. 

6 (a) DEFINITIONS.—Section 272(1)(A) of the Agricul7 tural Marketing Act of 1946 (7 U.S.C. 1637a(1)(A)) is 

8 amended by inserting ‘‘, or any other products that may 

9 significantly aid price discovery in the dairy markets, as 

10 determined by the Secretary’’ after ‘‘of 1937’’. 

11 (b) MANDATORY REPORTING FOR DAIRY PRODUCTS.— 

12 Section 273(b) of the Agricultural Marketing Act of 1946 

13 (7 U.S.C. 1637b(b)) is amended— 

14 (1) by striking paragraph (1) and inserting the 

15 following new paragraph: 

16 ‘‘(1) IN GENERAL.—In establishing the program, 

17 the Secretary shall only— 

18 ‘‘(A)(i) subject to the conditions described in 

19 paragraph (2), require each manufacturer to re20 port to the Secretary, more frequently than once 

21 per month, information concerning the price, 

22 quantity, and moisture content of dairy products 

23 sold by the manufacturer and any other product 

24 characteristics that may significantly aid price 
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1 discovery in the dairy markets, as determined by 

2 the Secretary; and 

3 ‘‘(ii) modify the format used to provide the 

4 information on the day before the date of enact5 ment of this subtitle to ensure that the informa6 tion can be readily understood by market par7 ticipants; and 

8 ‘‘(B) require each manufacturer and other 

9 person storing dairy products (including dairy 

10 products in cold storage) to report to the Sec11 retary, more frequently than once per month, in12 formation on the quantity of dairy products 

13 stored.’’; and 

14 (2) in paragraph (2), by inserting ‘‘or those that 

15 may significantly aid price discovery in the dairy 

16 markets’’ after ‘‘Federal milk marketing order’’ each 

17 place it appears in subparagraphs (A), (B), and (C). 

18 SEC. 1462. FEDERAL MILK MARKETING ORDER PROGRAM 

19 PRE-HEARING PROCEDURE FOR CLASS III 

20 PRICING. 

21 (a) IN GENERAL.—The Secretary shall use the pre22 hearing procedure described in this section to consider alter23 native formulas for Class III milk product pricing under 

24 section 8c of the Agricultural Adjustment Act (7 U.S.C. 
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1 608c), reenacted with amendments by the Agricultural Mar2 keting Agreement Act of 1937. 

3 (b) REQUESTS FOR PROPOSALS.— 

4 (1) IN GENERAL.—Not later than 120 days after 

5 the date of enactment of this Act, the Secretary shall 

6 issue a request for the submission by interested per7 sons of preliminary proposals for replacement of the 

8 Class III milk product pricing formula. 

9 (2) PRELIMINARY PROPOSALS.—Preliminary 

10 proposals submitted under paragraph (1)— 

11 (A) may include competitive pay price for12 mulas; and 

13 (B) shall provide sufficient detail in concept 

14 to serve as the basis for the convening by the Sec15 retary of a public information session for review 

16 and discussion in accordance with section 900.24 

17 of title 7, Code of Federal Regulations (as in ef18 fect on the date of enactment of this Act), but 

19 need not conform with the other procedural re20 quirements of part 900 of title 7, Code of Federal 

21 Regulations (as in effect on the date of enact22 ment of this Act). 

23 (c) PRE-HEARING INFORMATION SESSION REVIEW.— 

24 (1) IN GENERAL.—Not later than 180 days after 

25 the date on which the Secretary issues a request under 
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1 subsection (b)(1), the Secretary shall convene a public 

2 information session in accordance with section 900.24 

3 of title 7, Code of Federal Regulations (as in effect on 

4 the date of enactment of this Act). 

5 (2) REQUIREMENTS.—The Secretary shall review 

6 all preliminary proposals submitted under this sec7 tion that are of sufficient conceptual detail to allow 

8 for the review described in paragraph (b)(2)(B). 

9 (d) HEARING DETERMINATION.— 

10 (1) IN GENERAL.—Not later than 90 days after 

11 the conduct of the public information session under 

12 subsection (c), the Secretary shall determine whether 

13 to conduct a formal hearing in accordance with part 

14 900 of title 7, Code of Federal Regulations (as in ef15 fect on the date of enactment of this Act). 

16 (2) HEARING TO BE CONDUCTED.—If the Sec17 retary determines under paragraph (1) to conduct a 

18 formal hearing, the Secretary shall issue notice and 

19 conduct the hearing in accordance with part 900 of 

20 title 7, Code of Federal Regulations (as in effect on 

21 the date of enactment of this Act). 

22 (3) HEARING NOT TO BE CONDUCTED.—If the 

23 Secretary determines under paragraph (1) not to con24 duct a formal hearing, not later than 90 days after 

25 that determination, the Secretary shall submit to the 
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1 Committee on Agriculture of the House of Representa2 tives and the Committee on Agriculture, Nutrition 

3 and Forestry of the Senate a written report that ex4 plains the basis for the decision. 

5 (e) PROCEEDING WITH A HEARING AT ANY TIME.— 

6 Consistent with the purposes of this section, the Secretary 

7 may dispense with the pre-hearing requirements of this sec8 tion and initiate at any time a formal hearing under part 

9 900 of title 7, Code of Federal Regulations (as in effect on 

10 the date of enactment of this Act). 

11 PART III—REPEAL OR REAUTHORIZATION OF 

12 OTHER DAIRY-RELATED PROVISIONS 

13 SEC. 1471. REPEAL OF DAIRY PRODUCT PRICE SUPPORT 

14 AND MILK INCOME LOSS CONTRACT PRO15 GRAMS. 

16 (a) REPEAL OF DAIRY PRODUCT PRICE SUPPORT

17 PROGRAM.—Section 1501 of the Food, Conservation, and 

18 Energy Act of 2008 (7 U.S.C. 8771) is repealed. 

19 (b) REPEAL OF MILK INCOME LOSS CONTRACT PRO20 GRAM.— 

21 (1) PAYMENTS UNDER MILK INCOME LOSS CON22 TRACT PROGRAM.—Section 1506(c)(3) of the Food, 

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

24 8773(c)(3)) is amended— 
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1 (A) in subparagraph (A), by inserting 

2 ‘‘and’’ after the semicolon; 

3 (B) in subparagraph (B), by striking ‘‘Au4 gust 31, 2013, 45 percent; and’’ and inserting 

5 ‘‘June 30, 2014, 45 percent.’’; and 

6 (C) by striking subparagraph (C). 

7 (2) EXTENSION.—Section 1506(h)(1) of the Food, 

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

9 8773(h)(1)) is amended by striking ‘‘September 30, 

10 2013’’ and inserting ‘‘June 30, 2014’’. 

11 (3) REPEAL.—Effective July 1, 2014, section 

12 1506 of the Food, Conservation, and Energy Act of 

13 2008 (7 U.S.C. 8773) is repealed. 

14 SEC. 1472. REPEAL OF DAIRY EXPORT INCENTIVE PRO15 GRAM. 

16 (a) REPEAL.—Section 153 of the Food Security Act 

17 of 1985 (15 U.S.C. 713a–14) is repealed. 

18 (b) CONFORMING AMENDMENTS.—Section 902(2) of 

19 the Trade Sanctions Reform and Export Enhancement Act 

20 of 2000 (22 U.S.C. 7201(2)) is amended— 

21 (1) by striking subparagraph (D); and 

22 (2) by redesignating subparagraphs (E) and (F) 

23 as subparagraphs (D) and (E), respectively. 
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1 SEC. 1473. EXTENSION OF DAIRY FORWARD PRICING PRO2 GRAM. 

3 Section 1502(e) of the Food, Conservation, and Energy 

4 Act of 2008 (7 U.S.C. 8772(e)) is amended— 

5 (1) in paragraph (1), by striking ‘‘2012’’ and in6 serting ‘‘2018’’; and 

7 (2) in paragraph (2), by striking ‘‘2015’’ and in8 serting ‘‘2021’’. 

9 SEC. 1474. EXTENSION OF DAIRY INDEMNITY PROGRAM. 

10 Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 

11 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

12 SEC. 1475. EXTENSION OF DAIRY PROMOTION AND RE13 SEARCH PROGRAM. 

14 Section 113(e)(2) of the Dairy Production Stabiliza15 tion Act of 1983 (7 U.S.C. 4504(e)(2)) is amended by strik16 ing ‘‘2012’’ and inserting ‘‘2018’’. 

17 SEC. 1476. EXTENSION OF FEDERAL MILK MARKETING 

18 ORDER REVIEW COMMISSION. 

19 Section 1509(a) of the Food, Conservation, and Energy 

20 Act of 2008 (Public Law 110–246; 122 Stat. 1726) is 

21 amended by inserting ‘‘or other funds’’ after ‘‘Subject to the 

22 availability of appropriations’’. 
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1 PART IV—FEDERAL MILK MARKETING ORDER 

2 REFORM 

3 SEC. 1481. FEDERAL MILK MARKETING ORDERS. 

4 (a) AMENDMENTS.—The Secretary shall provide an 

5 analysis on the effects of amending each Federal milk mar6 keting order issued under section 8c of the Agricultural Ad7 justment Act (7 U.S.C. 608c), reenacted with amendments 

8 by the Agricultural Marketing Agreement Act of 1937 (in 

9 this part referred to as a ‘‘milk marketing order’’), as re10 quired by this section. 

11 (b) USE OF END-PRODUCT PRICE FORMULAS.—In 

12 carrying out subsection (a), the Secretary shall— 

13 (1) consider replacing the use of end-product 

14 price formulas with other pricing alternatives; and 

15 (2) submit to the Committee on Agriculture of 

16 the House of Representatives and the Committee on 

17 Agriculture, Nutrition, and Forestry of the Senate a 

18 report describing the findings of the Secretary on the 

19 impact of the action considered under paragraph (1). 

20 PART V—EFFECTIVE DATE 

21 SEC. 1491. EFFECTIVE DATE. 

22 Except as otherwise provided in this subtitle, this sub23 title and the amendments made by this subtitle take effect 

24 on October 1, 2013. 
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1 Subtitle E—Supplemental Agricul2 tural Disaster Assistance Pro3 grams 

4 SEC. 1501. SUPPLEMENTAL AGRICULTURAL DISASTER AS5 SISTANCE PROGRAMS. 

6 (a) DEFINITIONS.—In this section: 

7 (1) ELIGIBLE PRODUCER ON A FARM.— 

8 (A) IN GENERAL.—The term ‘‘eligible pro9 ducer on a farm’’ means an individual or entity 

10 described in subparagraph (B) that, as deter11 mined by the Secretary, assumes the production 

12 and market risks associated with the agricultural 

13 production of crops or livestock. 

14 (B) DESCRIPTION.—An individual or entity 

15 referred to in subparagraph (A) is— 

16 (i) a citizen of the United States; 

17 (ii) a resident alien; 

18 (iii) a partnership of citizens of the 

19 United States; or 

20 (iv) a corporation, limited liability 

21 corporation, or other farm organizational 

22 structure organized under State law. 

23 (2) FARM.— 

24 (A) IN GENERAL.—The term ‘‘farm’’ means, 

25 in relation to an eligible producer on a farm, the 
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1 total of all crop acreage in all counties that is 

2 planted or intended to be planted for harvest, for 

3 sale, or on-farm livestock feeding (including na4 tive grassland intended for haying) by the eligi5 ble producer. 

6 (B) AQUACULTURE.—In the case of aqua7 culture, the term ‘‘farm’’ means, in relation to 

8 an eligible producer on a farm, all fish being 

9 produced in all counties that are intended to be 

10 harvested for sale by the eligible producer. 

11 (C) HONEY.—In the case of honey, the term 

12 ‘‘farm’’ means, in relation to an eligible pro13 ducer on a farm, all bees and beehives in all 

14 counties that are intended to be harvested for a 

15 honey crop for sale by the eligible producer. 

16 (3) FARM-RAISED FISH.—The term ‘‘farm-raised 

17 fish’’ means any aquatic species that is propagated 

18 and reared in a controlled environment. 

19 (4) LIVESTOCK.—The term ‘‘livestock’’ in20 cludes— 

21 (A) cattle (including dairy cattle); 

22 (B) bison; 

23 (C) poultry; 

24 (D) sheep; 

25 (E) swine; 
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1 (F) horses; and 

2 (G) other livestock, as determined by the 

3 Secretary. 

4 (b) LIVESTOCK INDEMNITY PAYMENTS.— 

5 (1) PAYMENTS.—For each of fiscal years 2012 

6 through 2018, the Secretary shall use such sums as 

7 are necessary of the funds of the Commodity Credit 

8 Corporation to make livestock indemnity payments to 

9 eligible producers on farms that have incurred live10 stock death losses in excess of the normal mortality, 

11 as determined by the Secretary, due to— 

12 (A) attacks by animals reintroduced into 

13 the wild by the Federal Government or protected 

14 by Federal law, including wolves; or 

15 (B) adverse weather, as determined by the 

16 Secretary, during the calendar year, including 

17 losses due to hurricanes, floods, blizzards, disease, 

18 wildfires, extreme heat, and extreme cold. 

19 (2) PAYMENT RATES.—Indemnity payments to 

20 an eligible producer on a farm under paragraph (1) 

21 shall be made at a rate of 65 percent of the market 

22 value of the applicable livestock on the day before the 

23 date of death of the livestock, as determined by the 

24 Secretary. 
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1 (3) SPECIAL RULE FOR PAYMENTS MADE DUE TO

2 DISEASE.—The Secretary shall ensure that payments 

3 made to an eligible producer under paragraph (1) are 

4 not made for the same livestock losses for which com5 pensation is provided pursuant to section 10407(d) of 

6 the Animal Health Protection Act (7 U.S.C. 8306(d)). 

7 (c) LIVESTOCK FORAGE DISASTER PROGRAM.— 

8 (1) ESTABLISHMENT.—There is established a 

9 livestock forage disaster program to provide 1 source 

10 for livestock forage disaster assistance for weather-re11 lated forage losses, as determined by the Secretary, by 

12 combining— 

13 (A) the livestock forage assistance functions 

14 of— 

15 (i) the noninsured crop disaster assist16 ance program established by section 196 of 

17 the Federal Agriculture Improvement and 

18 Reform Act of 1996 (7 U.S.C. 7333); and 

19 (ii) the emergency assistance for live20 stock, honey bees, and farm-raised fish pro21 gram under section 531(e) of the Federal 

22 Crop Insurance Act (7 U.S.C. 1531(e)) (as 

23 in existence on the day before the date of en24 actment of this Act); and 
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1 (B) the livestock forage disaster program 

2 under section 531(d) of the Federal Crop Insur3 ance Act (7 U.S.C. 1531(d)) (as in existence on 

4 the day before the date of enactment of this Act). 

5 (2) DEFINITIONS.—In this subsection: 

6 (A) COVERED LIVESTOCK.— 

7 (i) IN GENERAL.—Except as provided 

8 in clause (ii), the term ‘‘covered livestock’’ 

9 means livestock of an eligible livestock pro10 ducer that, during the 60 days prior to the 

11 beginning date of an eligible forage loss, as 

12 determined by the Secretary, the eligible 

13 livestock producer— 

14 (I) owned; 

15 (II) leased; 

16 (III) purchased; 

17 (IV) entered into a contract to 

18 purchase; 

19 (V) was a contract grower; or 

20 (VI) sold or otherwise disposed of 

21 due to an eligible forage loss during— 

22 (aa) the current production 

23 year; or 

24 (bb) subject to paragraph 

25 (4)(B)(ii), 1 or both of the 2 pro-
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1 duction years immediately pre2 ceding the current production 

3 year. 

4 (ii) EXCLUSION.—The term ‘‘covered 

5 livestock’’ does not include livestock that 

6 were or would have been in a feedlot, on the 

7 beginning date of the eligible forage loss, as 

8 a part of the normal business operation of 

9 the eligible livestock producer, as determined 

10 by the Secretary. 

11 (B) DROUGHT MONITOR.—The term 

12 ‘‘drought monitor’’ means a system for 

13 classifying drought severity according to a range 

14 of abnormally dry to exceptional drought, as de15 fined by the Secretary. 

16 (C) ELIGIBLE FORAGE LOSS.—The term 

17 ‘‘eligible forage loss’’ means 1 or more forage 

18 losses that occur due to weather-related condi19 tions, including drought, flood, blizzard, hail, ex20 cessive moisture, hurricane, and fire, occurring 

21 during the normal grazing period, as determined 

22 by the Secretary, if the forage— 

23 (i) is grown on land that is native or 

24 improved pastureland with permanent vege25 tative cover; or 
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1 (ii) is a crop planted specifically for 

2 the purpose of providing grazing for covered 

3 livestock of an eligible livestock producer. 

4 (D) ELIGIBLE LIVESTOCK PRODUCER.— 

5 (i) IN GENERAL.—The term ‘‘eligible 

6 livestock producer’’ means an eligible pro7 ducer on a farm that— 

8 (I) is an owner, cash or share les9 see, or contract grower of covered live10 stock that provides the pastureland or 

11 grazing land, including cash-leased 

12 pastureland or grazing land, for the 

13 covered livestock; 

14 (II) provides the pastureland or 

15 grazing land for covered livestock, in16 cluding cash-leased pastureland or 

17 grazing land that is physically located 

18 in a county affected by an eligible for19 age loss; 

20 (III) certifies the eligible forage 

21 loss; and 

22 (IV) meets all other eligibility re23 quirements established under this sub24 section. 
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1 (ii) EXCLUSION.—The term ‘‘eligible 

2 livestock producer’’ does not include an 

3 owner, cash or share lessee, or contract 

4 grower of livestock that rents or leases 

5 pastureland or grazing land owned by an6 other person on a rate-of-gain basis. 

7 (E) NORMAL CARRYING CAPACITY.—The 

8 term ‘‘normal carrying capacity’’, with respect 

9 to each type of grazing land or pastureland in 

10 a county, means the normal carrying capacity, 

11 as determined under paragraph (4)(D)(i), that 

12 would be expected from the grazing land or 

13 pastureland for livestock during the normal graz14 ing period, in the absence of an eligible forage 

15 loss that diminishes the production of the graz16 ing land or pastureland. 

17 (F) NORMAL GRAZING PERIOD.—The term 

18 ‘‘normal grazing period’’, with respect to a coun19 ty, means the normal grazing period during the 

20 calendar year for the county, as determined 

21 under paragraph (4)(D)(i). 

22 (3) PROGRAM.—For each of fiscal years 2012 

23 through 2018, the Secretary shall use such sums as 

24 are necessary of the funds of the Commodity Credit 

25 Corporation to provide compensation under para-
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1 graphs (4) through (6), as determined by the Sec2 retary for eligible forage losses affecting covered live3 stock of eligible livestock producers. 

4 (4) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES

5 DUE TO DROUGHT CONDITIONS.— 

6 (A) ELIGIBLE FORAGE LOSSES.— 

7 (i) IN GENERAL.—An eligible livestock 

8 producer of covered livestock may receive as9 sistance under this paragraph for eligible 

10 forage losses that occur due to drought on 

11 land that— 

12 (I) is native or improved 

13 pastureland with permanent vegetative 

14 cover; or 

15 (II) is planted to a crop planted 

16 specifically for the purpose of pro17 viding grazing for covered livestock. 

18 (ii) EXCLUSIONS.—An eligible livestock 

19 producer may not receive assistance under 

20 this paragraph for eligible forage losses that 

21 occur on land used for haying or grazing 

22 under the conservation reserve program es23 tablished under subchapter B of chapter 1 of 

24 subtitle D of title XII of the Food Security 

25 Act of 1985 (16 U.S.C. 3831 et seq.), unless 
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1 the land is grassland eligible for the con2 servation reserve program under section 

3 1231(d)(2) of the Food Security Act of 1985 

4 (16 U.S.C. 3831(d)(2)) (as amended by sec5 tion 2001). 

6 (B) MONTHLY PAYMENT RATE.— 

7 (i) IN GENERAL.—Except as provided 

8 in clause (ii), the payment rate for assist9 ance for 1 month under this paragraph 

10 shall, in the case of drought, be equal to 50 

11 percent of the lesser of— 

12 (I) the monthly feed cost for all 

13 covered livestock owned or leased by the 

14 eligible livestock producer, as deter15 mined under subparagraph (C); or 

16 (II) the monthly feed cost cal17 culated by using the normal carrying 

18 capacity of the eligible grazing land of 

19 the eligible livestock producer. 

20 (ii) PARTIAL COMPENSATION.—In the 

21 case of an eligible livestock producer that 

22 sold or otherwise disposed of covered live23 stock due to drought conditions in 1 or both 

24 of the 2 production years immediately pre25 ceding the current production year, as de-
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1 termined by the Secretary, the payment rate 

2 shall be 80 percent of the payment rate oth3 erwise calculated in accordance with clause 

4 (i). 

5 (C) MONTHLY FEED COST.— 

6 (i) IN GENERAL.—The monthly feed 

7 cost shall equal the product obtained by 

8 multiplying— 

9 (I) 30 days; 

10 (II) a payment quantity that is 

11 equal to the feed grain equivalent, as 

12 determined under clause (ii); and 

13 (III) a payment rate that is equal 

14 to the corn price per pound, as deter15 mined under clause (iii). 

16 (ii) FEED GRAIN EQUIVALENT.—For 

17 purposes of clause (i)(II), the feed grain 

18 equivalent shall equal— 

19 (I) in the case of an adult beef 

20 cow, 15.7 pounds of corn per day; or 

21 (II) in the case of any other type 

22 of weight of livestock, an amount deter23 mined by the Secretary that represents 

24 the average number of pounds of corn 

25 per day necessary to feed the livestock. 
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1 (iii) CORN PRICE PER POUND.—For 

2 purposes of clause (i)(III), the corn price 

3 per pound shall equal the quotient obtained 

4 by dividing— 

5 (I) the lesser of— 

6 (aa) the national average 

7 corn price per bushel for the 12- 

8 month period immediately pre9 ceding March 1 of the year for 

10 which the disaster assistance is 

11 calculated; or 

12 (bb) the average national 

13 marketing year average corn price 

14 per bushel for the most recent 5 

15 crop years, excluding each of the 

16 crop years with the highest and 

17 lowest prices; by 

18 (II) 56. 

19 (D) NORMAL GRAZING PERIOD AND

20 DROUGHT MONITOR INTENSITY.— 

21 (i) FSA COUNTY COMMITTEE DETER22 MINATIONS.— 

23 (I) IN GENERAL.—The Secretary 

24 shall determine the normal carrying 

25 capacity and normal grazing period 
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1 for each type of grazing land or 

2 pastureland in the county served by the 

3 applicable Farm Service Agency com4 mittee, except that the normal grazing 

5 period shall not exceed 240 days. 

6 (II) CHANGES.—No change to the 

7 normal carrying capacity or normal 

8 grazing period established for a county 

9 under subclause (I) shall be made un10 less the change is requested by the ap11 propriate State and county Farm 

12 Service Agency committees. 

13 (ii) DROUGHT INTENSITY.— 

14 (I) D2.—An eligible livestock pro15 ducer that owns or leases grazing land 

16 or pastureland that is physically lo17 cated in a county that is rated by the 

18 U.S. Drought Monitor as having a D2 

19 (severe drought) intensity in any area 

20 of the county for at least 8 consecutive 

21 weeks during the normal grazing pe22 riod for the county, as determined by 

23 the Secretary, shall be eligible to re24 ceive assistance under this paragraph 

25 in an amount equal to 1 monthly pay-
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1 ment using the monthly payment rate 

2 determined under subparagraph (B). 

3 (II) D3.—An eligible livestock 

4 producer that owns or leases grazing 

5 land or pastureland that is physically 

6 located in a county that is rated by the 

7 U.S. Drought Monitor as having at 

8 least a D3 (extreme drought) intensity 

9 in any area of the county at any time 

10 during the normal grazing period for 

11 the county, as determined by the Sec12 retary, shall be eligible to receive as13 sistance under this paragraph— 

14 (aa) in an amount equal to 2 

15 monthly payments using the 

16 monthly payment rate determined 

17 under subparagraph (B); or 

18 (bb) if the county is rated as 

19 having a D3 (extreme drought) 

20 intensity in any area of the coun21 ty for at least 4 weeks during the 

22 normal grazing period for the 

23 county, or is rated as having a 

24 D4 (exceptional drought) intensity 

25 in any area of the county at any 
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1 time during the normal grazing 

2 period, in an amount equal to 3 

3 monthly payments using the 

4 monthly payment rate determined 

5 under subparagraph (B). 

6 (iii) ANNUAL PAYMENT BASED ON

7 DROUGHT CONDITIONS DETERMINED BY

8 MEANS OTHER THAN THE U.S. DROUGHT

9 MONITOR.— 

10 (I) IN GENERAL.—An eligible live11 stock producer that owns grazing land 

12 or pastureland that is physically lo13 cated in a county that has experienced 

14 on average, over the preceding calendar 

15 year, precipitation levels that are 50 

16 percent or more below normal levels, 

17 according to sufficient documentation 

18 as determined by the Secretary, may be 

19 eligible, subject to a determination by 

20 the Secretary, to receive assistance 

21 under this paragraph in an amount 

22 equal to not more than 1 monthly pay23 ment using the monthly payment rate 

24 under subparagraph (B). 
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1 (II) NO DUPLICATE PAYMENT.—A 

2 producer may not receive a payment 

3 under both clause (ii) and this clause. 

4 (5) ASSISTANCE FOR LOSSES DUE TO FIRE ON

5 PUBLIC MANAGED LAND.— 

6 (A) IN GENERAL.—An eligible livestock pro7 ducer may receive assistance under this para8 graph only if— 

9 (i) the eligible forage losses occur on 

10 rangeland that is managed by a Federal 

11 agency; and 

12 (ii) the eligible livestock producer is 

13 prohibited by the Federal agency from graz14 ing the normal permitted livestock on the 

15 managed rangeland due to a fire. 

16 (B) PAYMENT RATE.—The payment rate for 

17 assistance under this paragraph shall be equal to 

18 50 percent of the monthly feed cost for the total 

19 number of livestock covered by the Federal lease 

20 of the eligible livestock producer, as determined 

21 under paragraph (4)(C). 

22 (C) PAYMENT DURATION.— 

23 (i) IN GENERAL.—Subject to clause 

24 (ii), an eligible livestock producer shall be 
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1 eligible to receive assistance under this 

2 paragraph for the period— 

3 (I) beginning on the date on 

4 which the Federal agency excludes the 

5 eligible livestock producer from using 

6 the managed rangeland for grazing; 

7 and 

8 (II) ending on the last day of the 

9 Federal lease of the eligible livestock 

10 producer. 

11 (ii) LIMITATION.—An eligible livestock 

12 producer may only receive assistance under 

13 this paragraph for losses that occur on not 

14 more than 180 days per year. 

15 (6) ASSISTANCE FOR ELIGIBLE FORAGE LOSSES

16 DUE TO OTHER THAN DROUGHT OR FIRE.— 

17 (A) ELIGIBLE FORAGE LOSSES.— 

18 (i) IN GENERAL.—Subject to subpara19 graph (B), an eligible livestock producer of 

20 covered livestock may receive assistance 

21 under this paragraph for eligible forage 

22 losses that occur due to weather-related con23 ditions other than drought or fire on land 

24 that— 
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1 (I) is native or improved 

2 pastureland with permanent vegetative 

3 cover; or 

4 (II) is planted to a crop planted 

5 specifically for the purpose of pro6 viding grazing for covered livestock. 

7 (ii) EXCLUSIONS.—An eligible livestock 

8 producer may not receive assistance under 

9 this paragraph for eligible forage losses that 

10 occur on land used for haying or grazing 

11 under the conservation reserve program es12 tablished under subchapter B of chapter 1 of 

13 subtitle D of title XII of the Food Security 

14 Act of 1985 (16 U.S.C. 3831 et seq.), unless 

15 the land is grassland eligible for the con16 servation reserve program under section 

17 1231(d)(2) of the Food Security Act of 1985 

18 (16 U.S.C. 3831(d)(2)) (as amended by sec19 tion 2001). 

20 (B) PAYMENTS FOR ELIGIBLE FORAGE

21 LOSSES.— 

22 (i) IN GENERAL.—The Secretary shall 

23 provide assistance under this paragraph to 

24 an eligible livestock producer for eligible for-
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1 age losses that occur due to weather-related 

2 conditions other than— 

3 (I) drought under paragraph (4); 

4 and 

5 (II) fire on public managed land 

6 under paragraph (5). 

7 (ii) TERMS AND CONDITIONS.—The 

8 Secretary shall establish terms and condi9 tions for assistance under this paragraph 

10 that are consistent with the terms and con11 ditions for assistance under this subsection. 

12 (7) NO DUPLICATIVE PAYMENTS.—An eligible 

13 livestock producer may elect to receive assistance for 

14 eligible forage losses under either paragraph (4), (5), 

15 or (6), if applicable, but may not receive assistance 

16 under more than 1 of those paragraphs for the same 

17 loss, as determined by the Secretary. 

18 (8) DETERMINATIONS BY SECRETARY.—A deter19 mination made by the Secretary under this subsection 

20 shall be final and conclusive. 

21 (d) EMERGENCY ASSISTANCE FOR LIVESTOCK, HONEY

22 BEES, AND FARM-RAISED FISH.— 

23 (1) IN GENERAL.—For each of fiscal years 2012 

24 through 2018, the Secretary shall use not more than 

25 $15,000,000 of the funds of the Commodity Credit 
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1 Corporation to provide emergency relief to eligible 

2 producers of livestock, honey bees, and farm-raised 

3 fish to aid in the reduction of losses due to disease, 

4 adverse weather, or other conditions, such as blizzards 

5 and wildfires, as determined by the Secretary, that 

6 are not covered under subsection (b) or (c). 

7 (2) USE OF FUNDS.—Funds made available 

8 under this subsection shall be used to reduce losses 

9 caused by feed or water shortages, disease, or other 

10 factors as determined by the Secretary. 

11 (3) AVAILABILITY OF FUNDS.—Any funds made 

12 available under this subsection shall remain available 

13 until expended. 

14 (e) TREE ASSISTANCE PROGRAM.— 

15 (1) DEFINITIONS.—In this subsection: 

16 (A) ELIGIBLE ORCHARDIST.—The term ‘‘eli17 gible orchardist’’ means a person that produces 

18 annual crops from trees for commercial purposes. 

19 (B) NATURAL DISASTER.—The term ‘‘nat20 ural disaster’’ means plant disease, insect infes21 tation, drought, fire, freeze, flood, earthquake, 

22 lightning, or other occurrence, as determined by 

23 the Secretary. 

24 (C) NURSERY TREE GROWER.—The term 

25 ‘‘nursery tree grower’’ means a person who pro-
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1 duces nursery, ornamental, fruit, nut, or Christ2 mas trees for commercial sale, as determined by 

3 the Secretary. 

4 (D) TREE.—The term ‘‘tree’’ includes a 

5 tree, bush, and vine. 

6 (2) ELIGIBILITY.— 

7 (A) LOSS.—Subject to subparagraph (B), 

8 for each of fiscal years 2012 through 2018, the 

9 Secretary shall use such sums as are necessary of 

10 the funds of the Commodity Credit Corporation 

11 to provide assistance— 

12 (i) under paragraph (3) to eligible or13 chardists and nursery tree growers that 

14 planted trees for commercial purposes but 

15 lost the trees as a result of a natural dis16 aster, as determined by the Secretary; and 

17 (ii) under paragraph (3)(B) to eligible 

18 orchardists and nursery tree growers that 

19 have a production history for commercial 

20 purposes on planted or existing trees but 

21 lost the trees as a result of a natural dis22 aster, as determined by the Secretary. 

23 (B) LIMITATION.—An eligible orchardist or 

24 nursery tree grower shall qualify for assistance 

25 under subparagraph (A) only if the tree mor-
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1 tality of the eligible orchardist or nursery tree 

2 grower, as a result of damaging weather or re3 lated condition, exceeds 15 percent (adjusted for 

4 normal mortality). 

5 (3) ASSISTANCE.—Subject to paragraph (4), the 

6 assistance provided by the Secretary to eligible or7 chardists and nursery tree growers for losses described 

8 in paragraph (2) shall consist of— 

9 (A)(i) reimbursement of 65 percent of the 

10 cost of replanting trees lost due to a natural dis11 aster, as determined by the Secretary, in excess 

12 of 15 percent mortality (adjusted for normal 

13 mortality); or 

14 (ii) at the option of the Secretary, sufficient 

15 seedlings to reestablish a stand; and 

16 (B) reimbursement of 50 percent of the cost 

17 of pruning, removal, and other costs incurred by 

18 an eligible orchardist or nursery tree grower to 

19 salvage existing trees or, in the case of tree mor20 tality, to prepare the land to replant trees as a 

21 result of damage or tree mortality due to a nat22 ural disaster, as determined by the Secretary, in 

23 excess of 15 percent damage or mortality (ad24 justed for normal tree damage and mortality). 

25 (4) LIMITATIONS ON ASSISTANCE.— 
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1 (A) DEFINITIONS OF LEGAL ENTITY AND

2 PERSON.—In this paragraph, the terms ‘‘legal 

3 entity’’ and ‘‘person’’ have the meaning given 

4 those terms in section 1001(a) of the Food Secu5 rity Act of 1985 (7 U.S.C. 1308(a)). 

6 (B) AMOUNT.—The total amount of pay7 ments received, directly or indirectly, by a per8 son or legal entity (excluding a joint venture or 

9 general partnership) under this subsection may 

10 not exceed $100,000 for any crop year, or an 

11 equivalent value in tree seedlings. 

12 (C) ACRES.—The total quantity of acres 

13 planted to trees or tree seedlings for which a per14 son or legal entity shall be entitled to receive 

15 payments under this subsection may not exceed 

16 500 acres. 

17 (f) PAYMENTS.— 

18 (1) PAYMENT LIMITATIONS.— 

19 (A) DEFINITIONS OF LEGAL ENTITY AND

20 PERSON.—In this subsection, the terms ‘‘legal en21 tity’’ and ‘‘person’’ have the meanings given 

22 those terms in section 1001(a) of the Food Secu23 rity Act of 1985 (7 U.S.C. 1308(a)). 

24 (B) AMOUNT.—The total amount of disaster 

25 assistance payments received, directly or indi-
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1 rectly, by a person or legal entity (excluding a 

2 joint venture or general partnership) under this 

3 section (excluding payments received under sub4 section (e)) may not exceed $100,000 for any 

5 crop year. 

6 (C) DIRECT ATTRIBUTION.—Subsections (d) 

7 and (e) of section 1001 of the Food Security Act 

8 of 1985 (7 U.S.C. 1308) or any successor provi9 sions relating to direct attribution shall apply 

10 with respect to assistance provided under this 

11 section. 

12 (2) PAYMENT DELIVERY.—The Secretary shall 

13 make payments under this section after October 1, 

14 2013, for losses incurred in the 2012 and 2013 fiscal 

15 years, and as soon as practicable for losses incurred 

16 in any year thereafter. 

17 Subtitle F—Administration 

18 SEC. 1601. ADMINISTRATION GENERALLY. 

19 (a) USE OF COMMODITY CREDIT CORPORATION.—The 

20 Secretary shall use the funds, facilities, and authorities of 

21 the Commodity Credit Corporation to carry out this title. 

22 (b) DETERMINATIONS BY SECRETARY.—A determina23 tion made by the Secretary under this title shall be final 

24 and conclusive. 

25 (c) REGULATIONS.— 
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1 (1) IN GENERAL.—Except as otherwise provided 

2 in this subsection, not later than 90 days after the 

3 date of enactment of this Act, the Secretary and the 

4 Commodity Credit Corporation, as appropriate, shall 

5 promulgate such regulations as are necessary to im6 plement this title and the amendments made by this 

7 title. 

8 (2) PROCEDURE.—The promulgation of the regu9 lations and administration of this title and the 

10 amendments made by this title and sections 11001 

11 and 11012 shall be made without regard to— 

12 (A) the notice and comment provisions of 

13 section 553 of title 5, United States Code; 

14 (B) chapter 35 of title 44, United States 

15 Code (commonly known as the ‘‘Paperwork Re16 duction Act’’); and 

17 (C) the Statement of Policy of the Secretary 

18 of Agriculture effective July 24, 1971 (36 Fed. 

19 Reg. 13804), relating to notices of proposed rule20 making and public participation in rulemaking. 

21 (3) CONGRESSIONAL REVIEW OF AGENCY RULE22 MAKING.—In carrying out this subsection, the Sec23 retary shall use the authority provided under section 

24 808 of title 5, United States Code. 
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1 (d) ADJUSTMENT AUTHORITY RELATED TO TRADE

2 AGREEMENTS COMPLIANCE.— 

3 (1) REQUIRED DETERMINATION; ADJUSTMENT.— 

4 If the Secretary determines that expenditures under 

5 this title that are subject to the total allowable domes6 tic support levels under the Uruguay Round Agree7 ments (as defined in section 2 of the Uruguay Round 

8 Agreements Act (19 U.S.C. 3501)) will exceed the al9 lowable levels for any applicable reporting period, the 

10 Secretary shall, to the maximum extent practicable, 

11 make adjustments in the amount of the expenditures 

12 during that period to ensure that the expenditures do 

13 not exceed the allowable levels. 

14 (2) CONGRESSIONAL NOTIFICATION.—Before 

15 making any adjustment under paragraph (1), the 

16 Secretary shall submit to the Committee on Agri17 culture of the House of Representatives and the Com18 mittee on Agriculture, Nutrition, and Forestry of the 

19 Senate a report describing the determination made 

20 under that paragraph and the extent of the adjust21 ment to be made. 

22 SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT 

23 AUTHORITY. 

24 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.—The 

25 following provisions of the Agricultural Adjustment Act of 
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1 1938 shall not be applicable to the 2014 through 2018 crops 

2 of covered commodities (as defined in section 1104), cotton, 

3 and sugar and shall not be applicable to milk during the 

4 period beginning on the date of enactment of this Act 

5 through December 31, 2018: 

6 (1) Parts II through V of subtitle B of title III 

7 (7 U.S.C. 1326 et seq.). 

8 (2) In the case of upland cotton, section 377 (7 

9 U.S.C. 1377). 

10 (3) Subtitle D of title III (7 U.S.C. 1379a et 

11 seq.). 

12 (4) Title IV (7 U.S.C. 1401 et seq.). 

13 (b) AGRICULTURAL ACT OF 1949.—The following pro14 visions of the Agricultural Act of 1949 shall not be applica15 ble to the 2014 through 2018 crops of covered commodities 

16 (as defined in section 1104), cotton, and sugar and shall 

17 not be applicable to milk during the period beginning on 

18 the date of enactment of this Act and through December 31, 

19 2018: 

20 (1) Section 101 (7 U.S.C. 1441). 

21 (2) Section 103(a) (7 U.S.C. 1444(a)). 

22 (3) Section 105 (7 U.S.C. 1444b). 

23 (4) Section 107 (7 U.S.C. 1445a). 

24 (5) Section 110 (7 U.S.C. 1445e). 

25 (6) Section 112 (7 U.S.C. 1445g). 
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1 (7) Section 115 (7 U.S.C. 1445k). 

2 (8) Section 201 (7 U.S.C. 1446). 

3 (9) Title III (7 U.S.C. 1447 et seq.). 

4 (10) Title IV (7 U.S.C. 1421 et seq.), other than 

5 sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 

6 1431). 

7 (11) Title V (7 U.S.C. 1461 et seq.). 

8 (12) Title VI (7 U.S.C. 1471 et seq.). 

9 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 

10 The joint resolution entitled ‘‘A joint resolution relating to 

11 corn and wheat marketing quotas under the Agricultural 

12 Adjustment Act of 1938, as amended’’, approved May 26, 

13 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to 

14 the crops of wheat planted for harvest in the calendar years 

15 2014 through 2018. 

16 SEC. 1603. PAYMENT LIMITATIONS. 

17 (a) IN GENERAL.—Section 1001 of the Food Security 

18 Act of 1985 (7 U.S.C. 1308) is amended by striking sub19 sections (b) and (c) and inserting the following: 

20 ‘‘(b) LIMITATION ON PAYMENTS FOR PEANUTS AND

21 OTHER COVERED COMMODITIES.—The total amount of 

22 payments received, directly or indirectly, by a person or 

23 legal entity (except a joint venture or general partnership) 

24 for any crop year under subtitle A of title I of the Agri25 culture Reform, Food, and Jobs Act of 2013 for— 
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1 ‘‘(1) peanuts may not exceed $50,000; and 

2 ‘‘(2) 1 or more other covered commodities may 

3 not exceed $50,000.’’. 

4 (b) LIMITATION ON MARKETING LOAN GAINS AND

5 LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER

6 LOAN COMMODITIES.—Section 1001 of the Food Security 

7 Act of 1985 (7 U.S.C. 1308) is amended by striking sub8 section (d) and inserting the following: 

9 ‘‘(d) LIMITATION ON MARKETING LOAN GAINS AND

10 LOAN DEFICIENCY PAYMENTS FOR PEANUTS AND OTHER

11 LOAN COMMODITIES.—The total amount of marketing loan 

12 gains and loan deficiency payments received, directly or in13 directly, by a person or legal entity (except a joint venture 

14 or general partnership) for any crop year under subtitle 

15 B of the Agriculture Reform, Food, and Jobs Act of 2013 

16 (or a successor provision) for— 

17 ‘‘(1) peanuts may not exceed $75,000; and 

18 ‘‘(2) 1 or more other loan commodities may not 

19 exceed $75,000.’’. 

20 (c) CONFORMING AMENDMENTS.— 

21 (1) Section 1001 of the Food Security Act of 

22 1985 (7 U.S.C. 1308) is amended— 

23 (A) in subsection (a)(1), by striking ‘‘sec24 tion 1001 of the Food, Conservation, and Energy 

25 Act of 2008’’ and inserting ‘‘section 1104 of the 
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1 Agriculture Reform, Food, and Jobs Act of 

2 2013’’; 

3 (B) in subsection (e)— 

4 (i) in paragraph (1), by striking ‘‘sub5 sections (b) and (c) and a program de6 scribed in paragraphs (1)(C)’’ and inserting 

7 ‘‘subsection (b) and a program described in 

8 paragraph (1)(B)’’; and 

9 (ii) in paragraph (3)(B), by striking 

10 ‘‘subsections (b) and (c)’’ each place it ap11 pears and inserting ‘‘subsection (b)’’; 

12 (C) in subsection (f)— 

13 (i) by striking ‘‘or title XII’’ each place 

14 it appears in paragraphs (5)(A) and (6)(A) 

15 and inserting ‘‘, title I of the Agriculture 

16 Reform, Food, and Jobs Act of 2013, or title 

17 XII’’; 

18 (ii) in paragraph (2), by striking 

19 ‘‘Subsections (b) and (c)’’ and inserting 

20 ‘‘Subsection (b)’’; 

21 (iii) in paragraph (4)(B), by striking 

22 ‘‘subsection (b) or (c)’’ and inserting ‘‘sub23 section (b)’’; 

24 (iv) in paragraph (5)— 
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1 (I) in subparagraph (A), by strik2 ing ‘‘subsection (d)’’ and inserting 

3 ‘‘subsection (c)’’; and 

4 (II) in subparagraph (B), by 

5 striking ‘‘subsection (b), (c), or (d)’’ 

6 and inserting ‘‘subsection (b) or (c)’’; 

7 and 

8 (v) in paragraph (6)— 

9 (I) in subparagraph (A), by strik10 ing ‘‘subsection (d), except as provided 

11 in subsection (g)’’ and inserting ‘‘sub12 section (c), except as provided in sub13 section (f)’’; and 

14 (II) in subparagraph (B), by 

15 striking ‘‘subsections (b), (c), and (d)’’ 

16 and inserting ‘‘subsections (b) and 

17 (c)’’; 

18 (D) in subsection (g)— 

19 (i) in paragraph (1)— 

20 (I) bv striking ‘‘subsection 

21 (f)(6)(A)’’ and inserting ‘‘subsection 

22 (e)(6)(A)’’ and 

23 (II) by striking ‘‘subsection (b) or 

24 (c)’’ and inserting ‘‘subsection (b)’’; 

25 and 
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1 (ii) in paragraph (2)(A), by striking 

2 ‘‘subsections (b) and (c)’’ and inserting 

3 ‘‘subsection (b)’’; and 

4 (E) by redesignating subsections (d) through 

5 (h) as subsections (c) through (g), respectively. 

6 (2) Section 1001A of the Food Security Act of 

7 1985 (7 U.S.C. 1308–1) is amended— 

8 (A) in subsection (a), by striking ‘‘sub9 sections (b) and (c)’’ and inserting ‘‘subsection 

10 (b)’’; and 

11 (B) in subsection (b)(1), by striking ‘‘sub12 section (b) or (c)’’ and inserting ‘‘subsection (b)’’. 

13 (3) Section 1001B(a) of the Food Security Act of 

14 1985 (7 U.S.C. 1308–2(a)) is amended in the matter 

15 preceding paragraph (1) by striking ‘‘subsections (b) 

16 and (c)’’ and inserting ‘‘subsection (b)’’. 

17 (4) Section 1001C(a) of the Food Security Act of 

18 1985 (7 U.S.C. 1308–3(a)) is amended by inserting 

19 ‘‘title I of the Agriculture Reform, Food, and Jobs Act 

20 of 2013,’’ after ‘‘2008,’’. 

21 (d) APPLICATION.—The amendments made by this sec22 tion shall apply beginning with the 2014 crop year. 

23 SEC. 1604. PAYMENTS LIMITED TO ACTIVE FARMERS. 

24 Section 1001A of the Food Security Act of 1985 (7 

25 U.S.C. 1308–1) is amended— 
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1 (1) in subsection (b)(2)— 

2 (A) by striking ‘‘or active personal manage3 ment’’ each place it appears in subparagraphs 

4 (A)(i)(II) and (B)(ii); and 

5 (B) in subparagraph (C), by striking ‘‘, as 

6 applied to the legal entity, are met by the legal 

7 entity, the partners or members making a sig8 nificant contribution of personal labor or active 

9 personal management’’ and inserting ‘‘are met 

10 by partners or members making a significant 

11 contribution of personal labor, those partners or 

12 members’’; and 

13 (2) in subsection (c)— 

14 (A) in paragraph (1)— 

15 (i) by striking subparagraph (A) and 

16 inserting the following: 

17 ‘‘(A) the landowner share-rents the land at 

18 a rate that is usual and customary;’’; 

19 (ii) in subparagraph (B), by striking 

20 the period at the end and inserting ‘‘; and’’; 

21 and 

22 (iii) by adding at the end the fol23 lowing: 
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1 ‘‘(C) the share of the payments received by 

2 the landowner is commensurate with the share of 

3 the crop or income received as rent.’’; 

4 (B) in paragraph (2)(A), by striking ‘‘ac5 tive personal management or’’; 

6 (C) in paragraph (5)— 

7 (i) by striking ‘‘(5)’’ and all that fol8 lows through ‘‘(A) IN GENERAL.—A person’’ 

9 and inserting the following: 

10 ‘‘(5) CUSTOM FARMING SERVICES.—A person’’; 

11 (ii) by inserting ‘‘under usual and cus12 tomary terms’’ after ‘‘services’’; and 

13 (iii) by striking subparagraph (B); 

14 and 

15 (D) by adding at the end the following: 

16 ‘‘(7) FARM MANAGERS.—A person who otherwise 

17 meets the requirements of this subsection other than 

18 (b)(2)(A)(i)(II) shall be considered to be actively en19 gaged in farming, as determined by the Secretary, 

20 with respect to the farming operation, including a 

21 farming operation that is a sole proprietorship, a 

22 legal entity such as a joint venture or general part23 nership, or a legal entity such as a corporation or 

24 limited partnership, if the person— 
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1 ‘‘(A) makes a significant contribution of 

2 management to the farming operation necessary 

3 for the farming operation, taking into account— 

4 ‘‘(i) the size and complexity of the 

5 farming operation; and 

6 ‘‘(ii) the management requirements 

7 normally and customarily required by simi8 lar farming operations; 

9 ‘‘(B) is the only person in the farming oper10 ation qualifying as actively engaged in farming; 

11 ‘‘(C) does not use the management contribu12 tion under this paragraph to qualify as actively 

13 engaged in more than 1 farming operation; and 

14 ‘‘(D) manages a farm operation that does 

15 not substantially share equipment, labor, or 

16 management with persons or legal entities that 

17 with the person collectively receive, directly or 

18 indirectly, an amount equal to more than the 

19 applicable limits under section 1001(b).’’. 

20 SEC. 1605. ADJUSTED GROSS INCOME LIMITATION. 

21 (a) IN GENERAL.—Section 1001D(b)) of the Food Se22 curity Act of 1985 (7 U.S.C. 1308–3a(b)) is amended by 

23 striking paragraph (1) and inserting the following: 

24 ‘‘(1) COMMODITY PROGRAMS.— 
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1 ‘‘(A) LIMITATION.—Notwithstanding any 

2 other provision of law, a person or legal entity 

3 shall not be eligible to receive any benefit de4 scribed in subparagraph (B) during a crop, fis5 cal or program year, as appropriate, if the aver6 age adjusted gross income (or comparable meas7 ure over the 3 taxable years preceding the most 

8 immediately preceding complete taxable year, as 

9 determined by the Secretary) of the person or 

10 legal entity exceeds $750,000. 

11 ‘‘(B) COVERED BENEFITS.—Subparagraph 

12 (A) applies with respect to the following: 

13 ‘‘(i) A payment under section 1107 or 

14 1108 of the Agriculture Reform, Food, and 

15 Jobs Act of 2013. 

16 ‘‘(ii) A marketing loan gain or loan 

17 deficiency payment under subtitle B of title 

18 I of the Agriculture Reform, Food, and Jobs 

19 Act of 2013. 

20 ‘‘(iii) A payment under subtitle E of 

21 the Agriculture Reform, Food, and Jobs Act 

22 of 2013.’’. 

23 ‘‘(iv) A payment under section 196 of 

24 the Federal Agriculture Improvement and 

25 Reform Act of 1996 (7 U.S.C. 7333).’’. 
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1 (b) APPLICATION.—The amendments made by this sec2 tion shall apply beginning with the 2014 crop year. 

3 SEC. 1606. GEOGRAPHICALLY DISADVANTAGED FARMERS 

4 AND RANCHERS. 

5 Section 1621(d) of the Food, Conservation, and Energy 

6 Act of 2008 (7 U.S.C. 8792(d)) is amended by striking 

7 ‘‘2012’’ and inserting ‘‘2018’’. 

8 SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFI9 CIENCIES. 

10 Section 164 of the Federal Agriculture Improvement 

11 and Reform Act of 1996 (7 U.S.C. 7284) is amended by 

12 striking ‘‘and title I of the Food, Conservation, and Energy 

13 Act of 2008’’ each place it appears and inserting ‘‘title I 

14 of the Food, Conservation, and Energy Act of 2008 (7 

15 U.S.C. 8702 et seq.), and title I of the Agriculture Reform, 

16 Food, and Jobs Act of 2013’’. 

17 SEC. 1608. PREVENTION OF DECEASED INDIVIDUALS RE18 CEIVING PAYMENTS UNDER FARM COM19 MODITY PROGRAMS. 

20 (a) RECONCILIATION.—At least twice each year, the 

21 Secretary shall reconcile social security numbers of all indi22 viduals who receive payments under this title, whether di23 rectly or indirectly, with the Commissioner of Social Secu24 rity to determine if the individuals are alive. 
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1 (b) PRECLUSION.—The Secretary shall preclude the 

2 issuance of payments to, and on behalf of, deceased individ3 uals that were not eligible for payments. 

4 SEC. 1609. APPEALS. 

5 (a) DIRECTION, CONTROL, AND SUPPORT.—Section 

6 272 of the Department of Agriculture Reorganization Act 

7 of 1994 (7 U.S.C. 6992) is amended by striking subsection 

8 (c) and inserting the following: 

9 ‘‘(c) DIRECTION, CONTROL, AND SUPPORT.— 

10 ‘‘(1) DIRECTION AND CONTROL.— 

11 ‘‘(A) IN GENERAL.—Except as provided in 

12 paragraph (2), the Director shall be free from the 

13 direction and control of any person other than 

14 the Secretary or the Deputy Secretary of Agri15 culture. 

16 ‘‘(B) ADMINISTRATIVE SUPPORT.—The Di17 vision shall not receive administrative support 

18 (except on a reimbursable basis) from any agen19 cy other than the Office of the Secretary. 

20 ‘‘(C) PROHIBITION ON DELEGATION.—The 

21 Secretary may not delegate to any other officer 

22 or employee of the Department, other than the 

23 Deputy Secretary of Agriculture or the Director, 

24 the authority of the Secretary with respect to the 

25 Division. 
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1 ‘‘(2) EXCEPTION.—The Assistant Secretary for 

2 Administration is authorized to investigate, enforce, 

3 and implement the provisions in law, Executive 

4 order, or regulations that relate in general to competi5 tive and excepted service positions and employment 

6 within the Division, including the position of Direc7 tor, and such authority may be further delegated to 

8 subordinate officials.’’. 

9 (b) CONFORMING AMENDMENT.—Section 296(b) of the 

10 Department of Agriculture Reorganization Act of 1994 (7 

11 U.S.C. 7014(b)) is amended— 

12 (1) in the matter preceding paragraph (1) by 

13 striking ‘‘affect—’’ and inserting ‘‘affect:’’; 

14 (2) by striking ‘‘the authority’’ each place it ap15 pears in paragraphs (1) through (7) and inserting 

16 ‘‘The authority’’; 

17 (3) by striking the semicolon at the end of each 

18 of paragraphs (1) through (5) and inserting a period; 

19 (4) in paragraph (6)(C), by striking ‘‘; or’’ at 

20 the end and inserting a period; and 

21 (5) by adding at the end the following: 

22 ‘‘(8) The authority of the Secretary to carry out 

23 amendments made by the Agriculture Reform, Food, 

24 and Jobs Act of 2013.’’. 
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1 SEC. 1610. TECHNICAL CORRECTIONS. 

2 (a) Section 359f(c)(1)(B) of the Agricultural Adjust3 ment Act of 1938 (7 U.S.C. 1359ff(c)(1)(B)) is amended by 

4 adding a period at the end. 

5 (b)(1) Section 1603(g) of the Food, Conservation, and 

6 Energy Act of 2008 (Public Law 110–246; 122 Stat. 1739) 

7 is amended in paragraphs (2) through (6) and the amend8 ments made by those paragraphs by striking ‘‘1703(a)’’ 

9 each place it appears and inserting ‘‘1603(a)’’. 

10 (2) This subsection and the amendments made by this 

11 subsection take effect as if included in the Food, Conserva12 tion, and Energy Act of 2008 (Public Law 110–246; 122 

13 Stat. 1651). 

14 SEC. 1611. ASSIGNMENT OF PAYMENTS. 

15 (a) IN GENERAL.—The provisions of section 8(g) of the 

16 Soil Conservation and Domestic Allotment Act (16 U.S.C. 

17 590h(g)), relating to assignment of payments, shall apply 

18 to payments made under this title. 

19 (b) NOTICE.—The producer making the assignment, or 

20 the assignee, shall provide the Secretary with notice, in such 

21 manner as the Secretary may require, of any assignment 

22 made under this section. 

23 SEC. 1612. TRACKING OF BENEFITS. 

24 As soon as practicable after the date of enactment of 

25 this Act, the Secretary may track the benefits provided, di-
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1 rectly or indirectly, to individuals and entities under titles 

2 I and II and the amendments made by those titles. 

3 SEC. 1613. SIGNATURE AUTHORITY. 

4 (a) IN GENERAL.—In carrying out this title and title 

5 II and amendments made by those titles, if the Secretary 

6 approves a document, the Secretary shall not subsequently 

7 determine the document is inadequate or invalid because 

8 of the lack of authority of any person signing the document 

9 on behalf of the applicant or any other individual, entity, 

10 general partnership, or joint venture, or the documents re11 lied upon were determined inadequate or invalid, unless the 

12 person signing the program document knowingly and will13 fully falsified the evidence of signature authority or a signa14 ture. 

15 (b) AFFIRMATION.— 

16 (1) IN GENERAL.—Nothing in this section pro17 hibits the Secretary from asking a proper party to af18 firm any document that otherwise would be consid19 ered approved under subsection (a). 

20 (2) NO RETROACTIVE EFFECT.—A denial of bene21 fits based on a lack of affirmation under paragraph 

22 (1) shall not be retroactive with respect to third-party 

23 producers who were not the subject of the erroneous 

24 representation of authority, if the third-party pro25 ducers— 
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1 (A) relied on the prior approval by the Sec2 retary of the documents in good faith; and 

3 (B) substantively complied with all pro4 gram requirements. 

5 SEC. 1614. IMPLEMENTATION. 

6 (a) STREAMLINING.—In implementing this title, the 

7 Secretary shall, to the maximum extent practicable— 

8 (1) seek to reduce administrative burdens and 

9 costs to producers by streamlining and reducing pa10 perwork, forms, and other administrative require11 ments; 

12 (2) improve coordination, information sharing, 

13 and administrative work with the Risk Management 

14 Agency and the Natural Resources Conservation Serv15 ice; and 

16 (3) take advantage of new technologies to en17 hance efficiency and effectiveness of program delivery 

18 to producers. 

19 (b) IMPLEMENTATION.—On October 1, 2013, the Sec20 retary shall make available to the Farm Service Agency to 

21 carry out this title $97,000,000. 
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1 TITLE II—CONSERVATION 

2 Subtitle A—Conservation Reserve 

3 Program 

4 SEC. 2001. EXTENSION AND ENROLLMENT REQUIREMENTS 

5 OF CONSERVATION RESERVE PROGRAM. 

6 (a) EXTENSION.—Section 1231(a) of the Food Security 

7 Act of 1985 (16 U.S.C. 3831(a)) is amended by striking 

8 ‘‘2012’’ and inserting ‘‘2018’’. 

9 (b) ELIGIBLE LAND.—Section 1231(b) of the Food Se10 curity Act of 1985 (16 U.S.C. 3831(b)) is amended— 

11 (1) in paragraph (1)(B), by striking ‘‘the date of 

12 enactment of the Food, Conservation, and Energy Act 

13 of 2008’’ and inserting ‘‘the date of enactment of the 

14 Agriculture Reform, Food, and Jobs Act of 2013’’; 

15 (2) by striking paragraph (2) and redesignating 

16 paragraph (3) as paragraph (2); 

17 (3) by inserting before paragraph (4) the fol18 lowing: 

19 ‘‘(3) grassland that— 

20 ‘‘(A) contains forbs or shrubland (including 

21 improved rangeland and pastureland) for which 

22 grazing is the predominant use; 

23 ‘‘(B) is located in an area historically 

24 dominated by grassland; and 
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1 ‘‘(C) could provide habitat for animal and 

2 plant populations of significant ecological value 

3 if the land is retained in its current use or re4 stored to a natural condition;’’; 

5 (4) in paragraph (4)(C), by striking ‘‘filterstrips 

6 devoted to trees or shrubs’’ and inserting ‘‘filterstrips 

7 and riparian buffers devoted to trees, shrubs, or 

8 grasses’’; and 

9 (5) by striking paragraph (5) and inserting the 

10 following: 

11 ‘‘(5) the portion of land in a field not enrolled 

12 in the conservation reserve in a case in which— 

13 ‘‘(A) more than 50 percent of the land in 

14 the field is enrolled as a buffer or filterstrip or 

15 more than 75 percent of the land in the field is 

16 enrolled in a practice other than as a buffer or 

17 filterstrip; and 

18 ‘‘(B) the remainder of the field is— 

19 ‘‘(i) infeasible to farm; and 

20 ‘‘(ii) enrolled at regular rental rates.’’. 

21 (c) PLANTING STATUS OF CERTAIN LAND.—Section 

22 1231(c) of the Food Security Act of 1985 (16 U.S.C. 

23 3831(c)) is amended by striking ‘‘if’’ and all that follows 

24 through the period at the end and inserting ‘‘if, during the 

25 crop year, the land was devoted to a conserving use.’’. 
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1 (d) ENROLLMENT.—Section 1231 of the Food Security 

2 Act of 1985 (16 U.S.C. 3831) is amended by striking sub3 section (d) and inserting the following: 

4 ‘‘(d) ENROLLMENT.— 

5 ‘‘(1) MAXIMUM ACREAGE ENROLLED.—The Sec6 retary may maintain in the conservation reserve at 

7 any 1 time during— 

8 ‘‘(A) fiscal year 2014, no more than 

9 30,000,000 acres; 

10 ‘‘(B) fiscal year 2015, no more than 

11 27,500,000 acres; 

12 ‘‘(C) fiscal year 2016, no more than 

13 26,500,000 acres; 

14 ‘‘(D) fiscal year 2017, no more than 

15 25,500,000 acres; and 

16 ‘‘(E) fiscal year 2018, no more than 

17 25,000,000 acres. 

18 ‘‘(2) GRASSLAND.— 

19 ‘‘(A) LIMITATION.—For purposes of apply20 ing the limitations in paragraph (1), no more 

21 than 1,500,000 acres of the land described in 

22 subsection (b)(3) may be enrolled in the program 

23 at any 1 time during the 2014 through 2018 fis24 cal years. 
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1 ‘‘(B) PRIORITY.—In enrolling acres under 

2 subparagraph (A), the Secretary may give pri3 ority to land with expiring conservation reserve 

4 program contracts. 

5 ‘‘(C) METHOD OF ENROLLMENT.—In enroll6 ing acres under subparagraph (A), the Secretary 

7 shall make the program available to owners or 

8 operators of eligible land at least once during 

9 each fiscal year.’’. 

10 (e) DURATION OF CONTRACT.—Section 1231(e) of the 

11 Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended 

12 by striking paragraphs (2) and (3) and inserting the fol13 lowing: 

14 ‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In the 

15 case of land devoted to hardwood trees, shelterbelts, 

16 windbreaks, or wildlife corridors under a contract en17 tered into under this subchapter, the owner or oper18 ator of the land may, within the limitations pre19 scribed under this section, specify the duration of the 

20 contract.’’. 

21 (f) CONSERVATION PRIORITY AREAS.—Section 1231(f) 

22 of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is 

23 amended— 
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1 (1) in paragraph (1), by striking ‘‘watershed 

2 areas of the Chesapeake Bay Region, the Great Lakes 

3 Region, the Long Island Sound Region, and other’’; 

4 (2) in paragraph (2), by striking ‘‘WATER5 SHEDS.—Watersheds’’ and inserting ‘‘AREAS.— 

6 Areas’’; and 

7 (3) in paragraph (3), by striking ‘‘a watershed’s 

8 designation—’’ and all that follows through the pe9 riod at the end and inserting ‘‘an area’s designation 

10 if the Secretary finds that the area no longer contains 

11 actual and significant adverse water quality or habi12 tat impacts related to agricultural production activi13 ties.’’. 

14 SEC. 2002. FARMABLE WETLAND PROGRAM. 

15 (a) EXTENSION.—Section 1231B(a)(1) of the Food Se16 curity Act of 1985 (16 U.S.C. 3831b(a)(1)) is amended— 

17 (1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 

18 and 

19 (2) by striking ‘‘a program’’ and inserting ‘‘a 

20 farmable wetland program’’. 

21 (b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 

22 the Food Security Act of 1985 (16 U.S.C. 3831b(b)(1)(B)) 

23 is amended by striking ‘‘flow from a row crop agriculture 

24 drainage system’’ and inserting ‘‘surface and subsurface 

25 flow from row crop agricultural production’’. 
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1 (c) CLERICAL AMENDMENTS.—Section 1231B of the 

2 Food Security Act of 1985 (16 U.S.C. 3831b) is amended— 

3 (1) by striking the heading and inserting the fol4 lowing: 

5 ‘‘SEC. 1231B. FARMABLE WETLAND PROGRAM.’’; 

6 and 

7 (2) in subsection (f)(2), by striking ‘‘section 

8 1234(c)(2)(B)’’ and inserting ‘‘section 

9 1234(c)(2)(A)(ii)’’. 

10 SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 

11 (a) LIMITATION ON HARVESTING, GRAZING OR COM12 MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the Food 

13 Security Act of 1985 (16 U.S.C. 3832(a)(8)) is amended 

14 by striking ‘‘except that’’ and all that follows through the 

15 semicolon at the end of the paragraph and inserting ‘‘except 

16 as provided in section 1233(b);’’. 

17 (b) CONSERVATION PLAN REQUIREMENTS.—Section 

18 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) 

19 is amended by striking subsection (b) and inserting the fol20 lowing: 

21 ‘‘(b) CONSERVATION PLANS.—The plan referred to in 

22 subsection (a)(1) shall set forth— 

23 ‘‘(1) the conservation measures and practices to 

24 be carried out by the owner or operator during the 

25 term of the contract; and 
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1 ‘‘(2) the commercial use, if any, to be permitted 

2 on the land during the term.’’. 

3 (c) RENTAL PAYMENT REDUCTION.—Section 1232 of 

4 the Food Security Act of 1985 (16 U.S.C. 3832) is amended 

5 by striking subsection (d). 

6 SEC. 2004. DUTIES OF THE SECRETARY. 

7 Section 1233 of the Food Security Act of 1985 (16 

8 U.S.C. 3833) is amended to read as follows: 

9 ‘‘SEC. 1233. DUTIES OF THE SECRETARY. 

10 ‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re11 turn for a contract entered into by an owner or operator, 

12 the Secretary shall— 

13 ‘‘(1) share the cost of carrying out the conserva14 tion measures and practices set forth in the contract 

15 for which the Secretary determines that cost sharing 

16 is appropriate and in the public interest; and 

17 ‘‘(2) for a period of years not in excess of the 

18 term of the contract, pay an annual rental payment 

19 in an amount necessary to compensate for— 

20 ‘‘(A) the conversion of highly erodible crop21 land or other eligible land normally devoted to 

22 the production of an agricultural commodity on 

23 a farm or ranch to a less intensive use; 
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1 ‘‘(B) the retirement of any cropland base 

2 and allotment history that the owner or operator 

3 agrees to retire permanently; and 

4 ‘‘(C) the development and management of 

5 grassland for multiple natural resource conserva6 tion benefits, including soil, water, air, and 

7 wildlife. 

8 ‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec9 retary shall permit certain activities or commercial uses of 

10 land that is subject to the contract if those activities or uses 

11 are consistent with a plan approved by the Secretary and 

12 include— 

13 ‘‘(1) harvesting, grazing, or other commercial use 

14 of the forage in response to drought, flooding, or other 

15 emergency without any reduction in the rental rate; 

16 ‘‘(2) grazing by livestock of a beginning farmer 

17 or rancher without any reduction in the rental rate, 

18 if the grazing is— 

19 ‘‘(A) consistent with the conservation of soil, 

20 water quality, and wildlife habitat (including 

21 habitat during the primary nesting season for 

22 critical birds in the area); and 

23 ‘‘(B) described in subparagraph (B) or (C) 

24 of paragraph (3); 
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1 ‘‘(3) consistent with the conservation of soil, 

2 water quality, and wildlife habitat (including habitat 

3 during the primary nesting season for critical birds 

4 in the area) and in exchange for a reduction of not 

5 less than 25 percent in the annual rental rate for the 

6 acres covered by the authorized activity— 

7 ‘‘(A) managed harvesting and other com8 mercial use (including the managed harvesting 

9 of biomass), except that in permitting those ac10 tivities the Secretary, in coordination with the 

11 State technical committee— 

12 ‘‘(i) shall develop appropriate vegeta13 tion management requirements; and 

14 ‘‘(ii) shall identify periods during 

15 which the activities may be conducted, such 

16 that the frequency is at least once every 5 

17 years but not more than once every 3 years; 

18 ‘‘(B) prescribed grazing for the control of 

19 invasive species, which may be conducted annu20 ally; 

21 ‘‘(C) routine grazing, except that in permit22 ting routine grazing, the Secretary, in coordina23 tion with the State technical committee— 

24 ‘‘(i) shall develop appropriate vegeta25 tion management requirements and stocking 
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1 rates for the land that are suitable for con2 tinued routine grazing; and 

3 ‘‘(ii) shall identify the periods during 

4 which routine grazing may be conducted, 

5 such that the frequency is not more than 

6 once every 2 years, taking into consider7 ation regional differences such as— 

8 ‘‘(I) climate, soil type, and nat9 ural resources; 

10 ‘‘(II) the number of years that 

11 should be required between routine 

12 grazing activities; and 

13 ‘‘(III) how often during a year in 

14 which routine grazing is permitted 

15 that routine grazing should be allowed 

16 to occur; and 

17 ‘‘(D) the installation of wind turbines and 

18 associated access, except that in permitting the 

19 installation of wind turbines, the Secretary shall 

20 determine the number and location of wind tur21 bines that may be installed, taking into ac22 count— 

23 ‘‘(i) the location, size, and other phys24 ical characteristics of the land; 
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1 ‘‘(ii) the extent to which the land con2 tains threatened or endangered wildlife and 

3 wildlife habitat; and 

4 ‘‘(iii) the purposes of the conservation 

5 reserve program under this subchapter; and 

6 ‘‘(4) the intermittent and seasonal use of vegeta7 tive buffer practices incidental to agricultural produc8 tion on land adjacent to the buffer such that the per9 mitted use does not destroy the permanent vegetative 

10 cover. 

11 ‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLAND.—Not12 withstanding section 1232(a)(8), for eligible land described 

13 in section 1231(b)(3), the Secretary shall permit the fol14 lowing activities: 

15 ‘‘(1) Common grazing practices, including main16 tenance and necessary cultural practices, on the land 

17 in a manner that is consistent with maintaining the 

18 viability of grassland, forb, and shrub species appro19 priate to that locality. 

20 ‘‘(2) Haying, mowing, or harvesting for seed 

21 production, subject to appropriate restrictions during 

22 the primary nesting season for critical birds in the 

23 area. 

24 ‘‘(3) Fire presuppression, rehabilitation, and 

25 construction of fire breaks. 
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1 ‘‘(4) Grazing-related activities, such as fencing 

2 and livestock watering. 

3 ‘‘(d) RESOURCE CONSERVING USE.— 

4 ‘‘(1) IN GENERAL.—Beginning on the date that 

5 is 1 year before the date of termination of a contract 

6 under the program, the Secretary shall allow an 

7 owner or operator to make conservation and land im8 provements that facilitate maintaining protection of 

9 highly erodible land after expiration of the contract. 

10 ‘‘(2) CONSERVATION PLAN.—The Secretary shall 

11 require an owner or operator carrying out the activi12 ties described in paragraph (1) to develop and imple13 ment a conservation plan. 

14 ‘‘(3) REENROLLMENT PROHIBITED.—Land al15 tered under paragraph (1) may not be reenrolled in 

16 the conservation reserve program for 5 years. 

17 ‘‘(4) PAYMENT.—The Secretary shall provide an 

18 annual payment that is reduced in an amount com19 mensurate with any income or other compensation re20 ceived as a result of the activities carried out under 

21 paragraph (1).’’. 

22 SEC. 2005. PAYMENTS. 

23 (a) TREES, WINDBREAKS, SHELTERBELTS, AND WILD24 LIFE CORRIDORS.—Section 1234(b)(3)(A) of the Food Secu25 rity Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is amended— 
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1 (1) in clause (i), by inserting ‘‘and’’ after the 

2 semicolon; 

3 (2) by striking clause (ii); and 

4 (3) by redesignating clause (iii) as clause (ii). 

5 (b) INCENTIVES.—Section 1234(b)(3)(B) of the Food 

6 Security Act of 1985 (16 U.S.C. 3834(b)(3)(B)) is amend7 ed— 

8 (1) in clause (i), by inserting ‘‘, practices to im9 prove the condition of resources on the land,’’ after 

10 ‘‘operator)’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(iii) INCENTIVES.—In making rental 

13 payments to an owner or operator of land 

14 described in subparagraph (A), the Sec15 retary may provide incentive payments suf16 ficient to encourage proper thinning and 

17 practices to improve the condition of re18 sources on the land.’’. 

19 (c) ANNUAL RENTAL PAYMENTS.—Section 1234(c) of 

20 the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 

21 amended— 

22 (1) in paragraph (1), by inserting ‘‘and other el23 igible land’’ after ‘‘highly erodible cropland’’ both 

24 places it appears; 
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1 (2) by striking paragraph (2) and inserting the 

2 following: 

3 ‘‘(2) METHODS OF DETERMINATION.— 

4 ‘‘(A) IN GENERAL.—The amounts payable 

5 to owners or operators in the form of rental pay6 ments under contracts entered into under this 

7 subchapter may be determined through— 

8 ‘‘(i) the submission of bids for such 

9 contracts by owners and operators in such 

10 manner as the Secretary may prescribe; or 

11 ‘‘(ii) such other means as the Secretary 

12 determines are appropriate. 

13 ‘‘(B) GRASSLAND.—In the case of eligible 

14 land described in section 1231(b)(3), the Sec15 retary shall make annual payments in an 

16 amount that is not more than 75 percent of the 

17 grazing value of the land covered by the con18 tract.’’; and 

19 (3) in paragraph (5)(A)— 

20 (A) by striking ‘‘The Secretary’’ and insert21 ing the following: 

22 ‘‘(i) SURVEY.—The Secretary’’; and 

23 (B) by adding at the end the following: 

24 ‘‘(ii) USE.—The Secretary may use the 

25 survey of dryland cash rental rates de-
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1 scribed in clause (i) as a factor in deter2 mining rental rates under this section as 

3 the Secretary determines appropriate.’’. 

4 (d) PAYMENT SCHEDULE.—Section 1234 of the Food 

5 Security Act of 1985 (16 U.S.C. 3834) is amended by strik6 ing subsection (d) and inserting the following: 

7 ‘‘(d) PAYMENT SCHEDULE.— 

8 ‘‘(1) IN GENERAL.—Except as otherwise provided 

9 in this section, payments under this subchapter shall 

10 be made in cash in such amount and on such time 

11 schedule as is agreed on and specified in the contract. 

12 ‘‘(2) SOURCE.—Payments under this subchapter 

13 shall be made using the funds of the Commodity Cred14 it Corporation. 

15 ‘‘(3) ADVANCE PAYMENT.—Payments under this 

16 subchapter may be made in advance of determination 

17 of performance.’’. 

18 (e) PAYMENT LIMITATION.—Section 1234(f) of the 

19 Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend20 ed— 

21 (1) in paragraph (1), by striking ‘‘, including 

22 rental payments made in the form of in-kind com23 modities,’’; 

24 (2) by striking paragraph (3); and 
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1 (3) by redesignating paragraph (4) as para2 graph (2). 

3 SEC. 2006. CONTRACT REQUIREMENTS. 

4 Section 1235 of the Food Security Act of 1985 (16 

5 U.S.C. 3835) is amended— 

6 (1) in subsection (f)— 

7 (A) in paragraph (1)— 

8 (i) in the matter preceding subpara9 graph (A), by striking ‘‘DUTIES’’ and all 

10 that follows through ‘‘a beginning farmer or 

11 rancher or’’ and inserting ‘‘TRANSITION TO

12 COVERED FARMER OR RANCHER.—In the 

13 case of a contract modification approved in 

14 order to facilitate the transfer of land sub15 ject to a contract from a retired farmer or 

16 rancher to a beginning farmer or rancher, 

17 a veteran farmer or rancher (as defined in 

18 section 2501(e) of the Food, Agriculture, 

19 Conservation, and Trade Act of 1990 (7 

20 U.S.C. 2279(e))), or a’’; 

21 (ii) in subparagraph (D), by striking 

22 ‘‘the farmer or rancher’’ and inserting ‘‘the 

23 covered farmer or rancher’’; and 
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1 (iii) in subparagraph (E), by striking 

2 ‘‘section 1001A(b)(3)(B)’’ and inserting 

3 ‘‘section 1001’’; and 

4 (B) in paragraph (2), by striking ‘‘require5 ment of section 1231(h)(4)(B)’’ and inserting 

6 ‘‘option provided under section 

7 1234(c)(2)(A)(ii)’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary shall 

10 not consider an owner or operator to be in violation of a 

11 term or condition of a conservation reserve contract if— 

12 ‘‘(1) during the year prior to expiration of the 

13 contract, the land is enrolled in the conservation stew14 ardship program; and 

15 ‘‘(2) the activity required under the conservation 

16 stewardship program pursuant to the enrollment is 

17 consistent with this subchapter. 

18 ‘‘(h) LAND ENROLLED IN AGRICULTURAL CONSERVA19 TION EASEMENT PROGRAM.—The Secretary may terminate 

20 or modify a contract entered into under this subchapter if 

21 eligible land that is subject to such contract is transferred 

22 into the agricultural conservation easement program under 

23 subtitle H.’’. 
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1 SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 

2 TO OTHER CONSERVING USES. 

3 Section 1235A of the Food Security Act of 1985 (16 

4 U.S.C. 3835a) is repealed. 

5 SEC. 2008. EFFECTIVE DATE. 

6 (a) IN GENERAL.—The amendments made by this sub7 title shall take effect on October 1, 2013, except, the amend8 ment made by section 2001(d), which shall take effect on 

9 the date of enactment of this Act. 

10 (b) EFFECT ON EXISTING CONTRACTS.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by this subtitle shall 

13 not affect the validity or terms of any contract en14 tered into by the Secretary of Agriculture under sub15 chapter B of chapter 1 of subtitle D of title XII of the 

16 Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 

17 before October 1, 2013, or any payments required to 

18 be made in connection with the contract. 

19 (2) UPDATING OF EXISTING CONTRACTS.—The 

20 Secretary shall permit an owner or operator with a 

21 contract entered into under subchapter B of chapter 

22 1 of subtitle D of title XII of the Food Security Act 

23 of 1985 (16 U.S.C. 3831 et seq.) before October 1, 

24 2013, to update the contract to reflect the activities 

25 and uses of land under contract permitted under the 

26 terms and conditions of paragraphs (1) and (2) of 
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1 section 1233(b) of that Act (as amended by section 

2 2004). 

3 Subtitle B—Conservation 

4 Stewardship Program 

5 SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 

6 (a) REVISION OF CURRENT PROGRAM.—Subchapter B 

7 of chapter 2 of subtitle D of title XII of the Food Security 

8 Act of 1985 (16 U.S.C. 3838d et seq.) is amended to read 

9 as follows: 

10 ‘‘Subchapter B—Conservation Stewardship 

11 Program 

12 ‘‘SEC. 1238D. DEFINITIONS. 

13 ‘‘In this subchapter: 

14 ‘‘(1) AGRICULTURAL OPERATION.—The term ‘ag15 ricultural operation’ means all eligible land, whether 

16 or not contiguous, that is— 

17 ‘‘(A) under the effective control of a pro18 ducer at the time the producer enters into a con19 tract under the program; and 

20 ‘‘(B) operated with equipment, labor, man21 agement, and production or cultivation practices 

22 that are substantially separate from other agri23 cultural operations, as determined by the Sec24 retary. 

25 ‘‘(2) CONSERVATION ACTIVITIES.— 
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1 ‘‘(A) IN GENERAL.—The term ‘conservation 

2 activities’ means conservation systems, practices, 

3 or management measures. 

4 ‘‘(B) INCLUSIONS.—The term ‘conservation 

5 activities’ includes— 

6 ‘‘(i) structural measures, vegetative 

7 measures, and land management measures, 

8 including agriculture drainage management 

9 systems, as determined by the Secretary; 

10 and 

11 ‘‘(ii) planning needed to address a pri12 ority resource concern. 

13 ‘‘(3) CONSERVATION STEWARDSHIP PLAN.—The 

14 term ‘conservation stewardship plan’ means a plan 

15 that— 

16 ‘‘(A) identifies and inventories priority re17 source concerns; 

18 ‘‘(B) establishes benchmark data and con19 servation objectives; 

20 ‘‘(C) describes conservation activities to be 

21 implemented, managed, or improved; and 

22 ‘‘(D) includes a schedule and evaluation 

23 plan for the planning, installation, and manage24 ment of the new and existing conservation activi25 ties. 
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1 ‘‘(4) ELIGIBLE LAND.— 

2 ‘‘(A) IN GENERAL.—The term ‘eligible land’ 

3 means— 

4 ‘‘(i) private and tribal land on which 

5 agricultural commodities, livestock, or for6 est-related products are produced; and 

7 ‘‘(ii) land associated with the land de8 scribed in clause (i) on which priority re9 source concerns could be addressed through 

10 a contract under the program. 

11 ‘‘(B) INCLUSIONS.—The term ‘eligible land’ 

12 includes— 

13 ‘‘(i) cropland; 

14 ‘‘(ii) grassland; 

15 ‘‘(iii) rangeland; 

16 ‘‘(iv) pastureland; 

17 ‘‘(v) nonindustrial private forest land; 

18 and 

19 ‘‘(vi) other agricultural land (includ20 ing cropped woodland, marshes, and agri21 cultural land used for the production of 

22 livestock), as determined by the Secretary. 

23 ‘‘(5) PRIORITY RESOURCE CONCERN.—The term 

24 ‘priority resource concern’ means a natural resource 
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1 concern or problem, as determined by the Secretary, 

2 that— 

3 ‘‘(A) is identified at the national, State or 

4 local level, as a priority for a particular area of 

5 the State; 

6 ‘‘(B) represents a significant concern in a 

7 State or region; and 

8 ‘‘(C) is likely to be addressed successfully 

9 through the implementation of conservation ac10 tivities under this program. 

11 ‘‘(6) PROGRAM.—The term ‘program’ means the 

12 conservation stewardship program established by this 

13 subchapter. 

14 ‘‘(7) STEWARDSHIP THRESHOLD.—The term 

15 ‘stewardship threshold’ means the level of manage16 ment required, as determined by the Secretary, to 

17 conserve and improve the quality and condition of a 

18 natural resource. 

19 ‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 

20 ‘‘(a) ESTABLISHMENT AND PURPOSE.—During each of 

21 fiscal years 2014 through 2018, the Secretary shall carry 

22 out a conservation stewardship program to encourage pro23 ducers to address priority resource concerns and improve 

24 and conserve the quality and condition of natural resources 

25 in a comprehensive manner— 
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1 ‘‘(1) by undertaking additional conservation ac2 tivities; and 

3 ‘‘(2) by improving, maintaining, and managing 

4 existing conservation activities. 

5 ‘‘(b) EXCLUSIONS.— 

6 ‘‘(1) LAND ENROLLED IN OTHER CONSERVATION

7 PROGRAMS.—Subject to paragraph (2), the following 

8 land (even if covered by the definition of eligible land) 

9 is not eligible for enrollment in the program: 

10 ‘‘(A) Land enrolled in the conservation re11 serve program, unless— 

12 ‘‘(i) the conservation reserve contract 

13 will expire at the end of the fiscal year in 

14 which the land is to be enrolled in the pro15 gram; and 

16 ‘‘(ii) conservation reserve program 

17 payments for land enrolled in the program 

18 cease prior to the date on which the first 

19 program payment is made to the applicant 

20 under this subchapter. 

21 ‘‘(B) Land enrolled in the agricultural con22 servation easement program in a wetland reserve 

23 easement. 

24 ‘‘(C) Land enrolled in the conservation se25 curity program. 
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1 ‘‘(2) CONVERSION TO CROPLAND.—Eligible land 

2 used for crop production after October 1, 2013, that 

3 had not been planted, considered to be planted, or de4 voted to crop production for at least 4 of the 6 years 

5 preceding that date shall not be the basis for any pay6 ment under the program, unless the land does not 

7 meet the requirement because— 

8 ‘‘(A) the land had previously been enrolled 

9 in the conservation reserve program; 

10 ‘‘(B) the land has been maintained using 

11 long-term crop rotation practices, as determined 

12 by the Secretary; or 

13 ‘‘(C) the land is incidental land needed for 

14 efficient operation of the farm or ranch, as deter15 mined by the Secretary. 

16 ‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 

17 ‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eligi18 ble to participate in the conservation stewardship program, 

19 a producer shall submit a contract offer for the agricultural 

20 operation that— 

21 ‘‘(1) demonstrates to the satisfaction of the Sec22 retary that the producer, at the time of the contract 

23 offer, is meeting the stewardship threshold for at least 

24 2 priority resource concerns; and 
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1 ‘‘(2) would, at a minimum, meet or exceed the 

2 stewardship threshold for at least 1 additional pri3 ority resource concern by the end of the stewardship 

4 contract by— 

5 ‘‘(A) installing and adopting additional 

6 conservation activities; and 

7 ‘‘(B) improving, maintaining, and man8 aging existing conservation activities on the ag9 ricultural operation in a manner that increases 

10 or extends the conservation benefits in place at 

11 the time the contract offer is accepted by the Sec12 retary. 

13 ‘‘(b) EVALUATION OF CONTRACT OFFERS.— 

14 ‘‘(1) RANKING OF APPLICATIONS.—In evaluating 

15 contract offers the Secretary shall rank applications 

16 based on— 

17 ‘‘(A) the level of conservation treatment on 

18 all applicable priority resource concerns at the 

19 time of application; 

20 ‘‘(B) the degree to which the proposed con21 servation activities effectively increase conserva22 tion performance; 

23 ‘‘(C) the number of applicable priority re24 source concerns proposed to be treated to meet or 
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1 exceed the stewardship threshold by the end of the 

2 contract; 

3 ‘‘(D) the extent to which other priority re4 source concerns will be addressed to meet or ex5 ceed the stewardship threshold by the end of the 

6 contract period; 

7 ‘‘(E) the extent to which the actual and an8 ticipated conservation benefits from the contract 

9 are provided at the least cost relative to other 

10 similarly beneficial contract offers; and 

11 ‘‘(F) the extent to which priority resource 

12 concerns will be addressed when transitioning 

13 from the conservation reserve program to agri14 cultural production. 

15 ‘‘(2) PROHIBITION.—The Secretary may not as16 sign a higher priority to any application because the 

17 applicant is willing to accept a lower payment than 

18 the applicant would otherwise be eligible to receive. 

19 ‘‘(3) ADDITIONAL CRITERIA.—The Secretary may 

20 develop and use such additional criteria that the Sec21 retary determines are necessary to ensure that na22 tional, State, and local priority resource concerns are 

23 effectively addressed. 

24 ‘‘(c) ENTERING INTO CONTRACTS.—After a determina25 tion that a producer is eligible for the program under sub-
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1 section (a), and a determination that the contract offer 

2 ranks sufficiently high under the evaluation criteria under 

3 subsection (b), the Secretary shall enter into a conservation 

4 stewardship contract with the producer to enroll the eligible 

5 land to be covered by the contract. 

6 ‘‘(d) CONTRACT PROVISIONS.— 

7 ‘‘(1) TERM.—A conservation stewardship con8 tract shall be for a term of 5 years. 

9 ‘‘(2) REQUIRED PROVISIONS.—The conservation 

10 stewardship contract of a producer shall— 

11 ‘‘(A) state the amount of the payment the 

12 Secretary agrees to make to the producer for each 

13 year of the conservation stewardship contract 

14 under section 1238G(d); 

15 ‘‘(B) require the producer— 

16 ‘‘(i) to implement a conservation stew17 ardship plan that describes the program 

18 purposes to be achieved through 1 or more 

19 conservation activities; 

20 ‘‘(ii) to maintain and supply informa21 tion as required by the Secretary to deter22 mine compliance with the conservation 

23 stewardship plan and any other require24 ments of the program; and 
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1 ‘‘(iii) not to conduct any activities on 

2 the agricultural operation that would tend 

3 to defeat the purposes of the program; 

4 ‘‘(C) permit all economic uses of the eligible 

5 land that— 

6 ‘‘(i) maintain the agricultural nature 

7 of the land; and 

8 ‘‘(ii) are consistent with the conserva9 tion purposes of the conservation steward10 ship contract; 

11 ‘‘(D) include a provision to ensure that a 

12 producer shall not be considered in violation of 

13 the contract for failure to comply with the con14 tract due to circumstances beyond the control of 

15 the producer, including a disaster or related con16 dition, as determined by the Secretary; 

17 ‘‘(E) include provisions where upon the vio18 lation of a term or condition of the contract at 

19 any time the producer has control of the land— 

20 ‘‘(i) if the Secretary determines that 

21 the violation warrants termination of the 

22 contract— 

23 ‘‘(I) to forfeit all rights to receive 

24 payments under the contract; and 
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1 ‘‘(II) to refund all or a portion of 

2 the payments received by the producer 

3 under the contract, including any in4 terest on the payments, as determined 

5 by the Secretary; or 

6 ‘‘(ii) if the Secretary determines that 

7 the violation does not warrant termination 

8 of the contract, to refund or accept adjust9 ments to the payments provided to the pro10 ducer, as the Secretary determines to be ap11 propriate; 

12 ‘‘(F) include provisions in accordance with 

13 paragraphs (3) and (4) of this section; and 

14 ‘‘(G) include any additional provisions the 

15 Secretary determines are necessary to carry out 

16 the program. 

17 ‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT TO

18 A CONTRACT.— 

19 ‘‘(A) IN GENERAL.—At the time of applica20 tion, a producer shall have control of the eligible 

21 land to be enrolled in the program. Except as 

22 provided in subparagraph (B), a change in the 

23 interest of a producer in eligible land covered by 

24 a contract under the program shall result in the 
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1 termination of the contract with regard to that 

2 land. 

3 ‘‘(B) TRANSFER OF DUTIES AND RIGHTS.— 

4 Subparagraph (A) shall not apply if— 

5 ‘‘(i) within a reasonable period of time 

6 (as determined by the Secretary) after the 

7 date of the change in the interest in all or 

8 a portion of the land covered by a contract 

9 under the program, the transferee of the 

10 land provides written notice to the Sec11 retary that duties and rights under the con12 tract have been transferred to, and assumed 

13 by, the transferee for the portion of the land 

14 transferred; 

15 ‘‘(ii) the transferee meets the eligibility 

16 requirements of the program; and 

17 ‘‘(iii) the Secretary approves the trans18 fer of all duties and rights under the con19 tract. 

20 ‘‘(4) MODIFICATION AND TERMINATION OF CON21 TRACTS.— 

22 ‘‘(A) VOLUNTARY MODIFICATION OR TERMI23 NATION.—The Secretary may modify or termi24 nate a contract with a producer if— 
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1 ‘‘(i) the producer agrees to the modi2 fication or termination; and 

3 ‘‘(ii) the Secretary determines that the 

4 modification or termination is in the public 

5 interest. 

6 ‘‘(B) INVOLUNTARY TERMINATION.—The 

7 Secretary may terminate a contract if the Sec8 retary determines that the producer violated the 

9 contract. 

10 ‘‘(5) REPAYMENT.—If a contract is terminated, 

11 the Secretary may, consistent with the purposes of the 

12 program— 

13 ‘‘(A) allow the producer to retain payments 

14 already received under the contract; or 

15 ‘‘(B) require repayment, in whole or in 

16 part, of payments received and assess liquidated 

17 damages. 

18 ‘‘(e) CONTRACT RENEWAL.—At the end of the initial 

19 5-year contract period, the Secretary may allow the pro20 ducer to renew the contract for 1 additional 5-year period 

21 if the producer— 

22 ‘‘(1) demonstrates compliance with the terms of 

23 the existing contract; 
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1 ‘‘(2) agrees to adopt and continue to integrate 

2 conservation activities across the entire agricultural 

3 operation as determined by the Secretary; and 

4 ‘‘(3) agrees, at a minimum, to meet or exceed the 

5 stewardship threshold for at least 2 additional pri6 ority resource concerns on the agricultural operation 

7 by the end of the contract period. 

8 ‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 

9 ‘‘(a) IN GENERAL.—To achieve the conservation goals 

10 of a contract under the conservation stewardship program, 

11 the Secretary shall— 

12 ‘‘(1) make the program available to eligible pro13 ducers on a continuous enrollment basis with 1 or 

14 more ranking periods, 1 of which shall occur in the 

15 first quarter of each fiscal year; 

16 ‘‘(2) identify not less than 5 priority resource 

17 concerns in a particular watershed or other appro18 priate region or area within a State; and 

19 ‘‘(3) establish a science-based stewardship thresh20 old for each priority resource concern identified under 

21 paragraph (2). 

22 ‘‘(b) ALLOCATION TO STATES.—The Secretary shall al23 locate acres to States for enrollment, based— 
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1 ‘‘(1) primarily on each State’s proportion of eli2 gible land to the total acreage of eligible land in all 

3 States; and 

4 ‘‘(2) also on consideration of— 

5 ‘‘(A) the extent and magnitude of the con6 servation needs associated with agricultural pro7 duction in each State; 

8 ‘‘(B) the degree to which implementation of 

9 the program in the State is, or will be, effective 

10 in helping producers address those needs; and 

11 ‘‘(C) other considerations to achieve equi12 table geographic distribution of funds, as deter13 mined by the Secretary. 

14 ‘‘(c) ACREAGE ENROLLMENT LIMITATION.—During 

15 the period beginning on October 1, 2013, and ending on 

16 September 30, 2022, the Secretary shall, to the maximum 

17 extent practicable— 

18 ‘‘(1) enroll in the program an additional 

19 10,348,000 acres for each fiscal year; and 

20 ‘‘(2) manage the program to achieve a national 

21 average rate of $18 per acre, which shall include the 

22 costs of all financial assistance, technical assistance, 

23 and any other expenses associated with enrollment or 

24 participation in the program. 

25 ‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 
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1 ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec2 retary shall provide annual payments under the pro3 gram to compensate the producer for— 

4 ‘‘(A) installing and adopting additional 

5 conservation activities; and 

6 ‘‘(B) improving, maintaining, and man7 aging conservation activities in place at the op8 eration of the producer at the time the contract 

9 offer is accepted by the Secretary. 

10 ‘‘(2) PAYMENT AMOUNT.—The amount of the 

11 conservation stewardship annual payment shall be de12 termined by the Secretary and based, to the max13 imum extent practicable, on the following factors: 

14 ‘‘(A) Costs incurred by the producer associ15 ated with planning, design, materials, installa16 tion, labor, management, maintenance, or train17 ing. 

18 ‘‘(B) Income forgone by the producer. 

19 ‘‘(C) Expected conservation benefits. 

20 ‘‘(D) The extent to which priority resource 

21 concerns will be addressed through the installa22 tion and adoption of conservation activities on 

23 the agricultural operation. 
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1 ‘‘(E) The level of stewardship in place at 

2 the time of application and maintained over the 

3 term of the contract. 

4 ‘‘(F) The degree to which the conservation 

5 activities will be integrated across the entire ag6 ricultural operation for all applicable priority 

7 resource concerns over the term of the contract. 

8 ‘‘(G) Such other factors as determined by 

9 the Secretary. 

10 ‘‘(3) EXCLUSIONS.—A payment to a producer 

11 under this subsection shall not be provided for— 

12 ‘‘(A) the design, construction, or mainte13 nance of animal waste storage or treatment fa14 cilities or associated waste transport or transfer 

15 devices for animal feeding operations; or 

16 ‘‘(B) conservation activities for which there 

17 is no cost incurred or income forgone to the pro18 ducer. 

19 ‘‘(4) DELIVERY OF PAYMENTS.—In making stew20 ardship payments, the Secretary shall, to the extent 

21 practicable— 

22 ‘‘(A) prorate conservation performance over 

23 the term of the contract so as to accommodate, 

24 to the extent practicable, producers earning equal 
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1 annual stewardship payments in each fiscal 

2 year; and 

3 ‘‘(B) make stewardship payments as soon as 

4 practicable after October 1 of each fiscal year for 

5 activities carried out in the previous fiscal year. 

6 ‘‘(e) SUPPLEMENTAL PAYMENTS FOR RESOURCE-CON7 SERVING CROP ROTATIONS.— 

8 ‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec9 retary shall provide additional payments to producers 

10 that, in participating in the program, agree to adopt 

11 resource-conserving crop rotations to achieve bene12 ficial crop rotations as appropriate for the eligible 

13 land of the producers. 

14 ‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec15 retary shall determine whether a resource-conserving 

16 crop rotation is a beneficial crop rotation eligible for 

17 additional payments under paragraph (1), based on 

18 whether the resource-conserving crop rotation is de19 signed to provide natural resource conservation and 

20 production benefits. 

21 ‘‘(3) ELIGIBILITY.—To be eligible to receive a 

22 payment described in paragraph (1), a producer shall 

23 agree to adopt and maintain the resource-conserving 

24 crop rotations for the term of the contract. 
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1 ‘‘(4) RESOURCE-CONSERVING CROP ROTATION.— 

2 In this subsection, the term ‘resource-conserving crop 

3 rotation’ means a crop rotation that— 

4 ‘‘(A) includes at least 1 resource conserving 

5 crop (as defined by the Secretary); 

6 ‘‘(B) reduces erosion; 

7 ‘‘(C) improves soil fertility and tilth; 

8 ‘‘(D) interrupts pest cycles; and 

9 ‘‘(E) in applicable areas, reduces depletion 

10 of soil moisture or otherwise reduces the need for 

11 irrigation. 

12 ‘‘(f) PAYMENT LIMITATIONS.—A person or legal entity 

13 may not receive, directly or indirectly, payments under the 

14 program that, in the aggregate, exceed $200,000 under all 

15 contracts entered into during fiscal years 2014 through 

16 2018, excluding funding arrangements with Indian tribes, 

17 regardless of the number of contracts entered into under the 

18 program by the person or legal entity. 

19 ‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 

20 The Secretary shall ensure that outreach and technical as21 sistance are available, and program specifications are ap22 propriate to enable specialty crop and organic producers 

23 to participate in the program. 

24 ‘‘(h) COORDINATION WITH ORGANIC CERTIFI25 CATION.—The Secretary shall establish a transparent 
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1 means by which producers may initiate organic certifi2 cation under the Organic Foods Production Act of 1990 (7 

3 U.S.C. 6501 et seq.) while participating in a contract under 

4 the program. 

5 ‘‘(i) REGULATIONS.—The Secretary shall promulgate 

6 regulations that— 

7 ‘‘(1) prescribe such other rules as the Secretary 

8 determines to be necessary to ensure a fair and rea9 sonable application of the limitations established 

10 under subsection (f); and 

11 ‘‘(2) otherwise enable the Secretary to carry out 

12 the program.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by this 

14 section shall take effect on October 1, 2013. 

15 (c) EFFECT ON EXISTING CONTRACTS.— 

16 (1) IN GENERAL.—The amendment made by this 

17 section shall not affect the validity or terms of any 

18 contract entered into by the Secretary of Agriculture 

19 under subchapter B of chapter 2 of subtitle D of title 

20 XII of the Food Security Act of 1985 (16 U.S.C. 

21 3838d et seq.) before October 1, 2013, or any pay22 ments required to be made in connection with the 

23 contract. 

24 (2) CONSERVATION STEWARDSHIP PROGRAM.— 

25 Funds made available under section 1241(a)(4) of the 
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1 Food Security Act of 1985 (16 U.S.C. 3841(a)(4)) (as 

2 amended by section 2601(a)) may be used to admin3 ister and make payments to program participants en4 rolled into contracts during any of fiscal years 2009 

5 through 2013. 

6 Subtitle C—Environmental Quality 

7 Incentives Program 

8 SEC. 2201. PURPOSES. 

9 Section 1240 of the Food Security Act of 1985 (16 

10 U.S.C. 3839aa) is amended— 

11 (1) in paragraph (3)— 

12 (A) in subparagraph (A), by striking ‘‘and’’ 

13 at the end; 

14 (B) by redesignating subparagraph (B) as 

15 subparagraph (C) and, in such subparagraph, by 

16 inserting ‘‘and’’ after the semicolon; and 

17 (C) by inserting after subparagraph (A) the 

18 following: 

19 ‘‘(B) develop and improve wildlife habitat; 

20 and’’; 

21 (2) in paragraph (4), by striking ‘‘; and’’ and 

22 inserting a period; and 

23 (3) by striking paragraph (5). 
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1 SEC. 2202. DEFINITIONS. 

2 Section 1240A of the Food Security Act of 1985 (16 

3 U.S.C. 3839aa–1) is amended— 

4 (1) by striking paragraph (2) and redesignating 

5 paragraphs (3) through (6) as paragraphs (2) 

6 through (5), respectively; and 

7 (2) in paragraph (2) (as so redesignated), by in8 serting ‘‘established under the Organic Foods Produc9 tion Act of 1990 (7 U.S.C. 6501 et seq.)’’ after ‘‘na10 tional organic program’’. 

11 SEC. 2203. ESTABLISHMENT AND ADMINISTRATION. 

12 Section 1240B of the Food Security Act of 1985 (16 

13 U.S.C. 3839aa–2) is amended— 

14 (1) in subsection (a), by striking ‘‘2014’’ and in15 serting ‘‘2018’’; 

16 (2) in subsection (b), by striking paragraph (2) 

17 and inserting the following: 

18 ‘‘(2) TERM.—A contract under the program shall 

19 have a term that does not exceed 10 years.’’; 

20 (3) in subsection (d)— 

21 (A) in paragraph (3), by striking subpara22 graphs (A) through (G) and inserting the fol23 lowing: 

24 ‘‘(A) soil health; 

25 ‘‘(B) water quality and quantity improve26 ment; 
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1 ‘‘(C) nutrient management; 

2 ‘‘(D) pest management; 

3 ‘‘(E) air quality improvement; 

4 ‘‘(F) wildlife habitat development, including 

5 pollinator habitat; 

6 ‘‘(G) invasive species management; or 

7 ‘‘(H) other resource issues of regional or na8 tional significance, as determined by the Sec9 retary.’’; and 

10 (B) in paragraph (4)— 

11 (i) in subparagraph (A) in the matter 

12 preceding clause (i), by inserting ‘‘, veteran 

13 farmer or rancher (as defined in section 

14 2501(e) of the Food, Agriculture, Conserva15 tion, and Trade Act of 1990 (7 U.S.C. 

16 2279(e))),’’ before ‘‘or a beginning farmer or 

17 rancher’’; and 

18 (ii) by striking subparagraph (B) and 

19 inserting the following: 

20 ‘‘(B) ADVANCE PAYMENTS.— 

21 ‘‘(i) IN GENERAL.—Not more than 30 

22 percent of the amount determined under 

23 subparagraph (A) may be provided in ad24 vance for the purpose of purchasing mate25 rials or contracting. 
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1 ‘‘(ii) RETURN OF FUNDS.—If funds 

2 provided in advance are not expended dur3 ing the 90-day period beginning on the date 

4 of receipt of the funds, the funds shall be re5 turned within a reasonable time frame, as 

6 determined by the Secretary.’’; 

7 (4) by striking subsection (f) and inserting the 

8 following: 

9 ‘‘(f) ALLOCATION OF FUNDING.— 

10 ‘‘(1) LIVESTOCK.—For each of fiscal years 2014 

11 through 2018, at least 60 percent of the funds made 

12 available for payments under the program shall be 

13 targeted at practices relating to livestock production. 

14 ‘‘(2) WILDLIFE HABITAT.—For each of fiscal 

15 years 2014 through 2018, at least 5 percent of the 

16 funds made available for payments under the pro17 gram shall be targeted at practices benefitting wildlife 

18 habitat under subsection (g).’’; and 

19 (5) by striking subsection (g) and inserting the 

20 following: 

21 ‘‘(g) WILDLIFE HABITAT INCENTIVE PROGRAM.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall provide 

23 payments under the environmental quality incentives 

24 program for conservation practices that support the 
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1 restoration, development, and improvement of wildlife 

2 habitat on eligible land, including— 

3 ‘‘(A) upland wildlife habitat; 

4 ‘‘(B) wetland wildlife habitat; 

5 ‘‘(C) habitat for threatened and endangered 

6 species; 

7 ‘‘(D) fish habitat; 

8 ‘‘(E) habitat on pivot corners and other ir9 regular areas of a field; and 

10 ‘‘(F) other types of wildlife habitat, as de11 termined by the Secretary. 

12 ‘‘(2) STATE TECHNICAL COMMITTEE.—In deter13 mining the practices eligible for payment under para14 graph (1) and targeted for funding under subsection 

15 (f), the Secretary shall, at a minimum, consult with 

16 the relevant State technical committee once a year. 

17 ‘‘(3) WAIVER.—Notwithstanding any other pro18 vision of this chapter, the Secretary may make pay19 ments to a State or local unit of government to enroll 

20 land that is riparian to, or submerged under, a water 

21 body or wetland if the Secretary determines that the 

22 inclusion of the land would support the restoration, 

23 development, and improvement of wildlife habitat.’’. 
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1 SEC. 2204. EVALUATION OF APPLICATIONS. 

2 Section 1240C(b) of the Food Security Act of 1985 (16 

3 U.S.C. 3839aa–3(b)) is amended— 

4 (1) in paragraph (1), by striking ‘‘environ5 mental’’ and inserting ‘‘conservation’’; and 

6 (2) in paragraph (3), by striking ‘‘purpose of the 

7 environmental quality incentives program specified in 

8 section 1240(1)’’ and inserting ‘‘purposes of the pro9 gram’’. 

10 SEC. 2205. DUTIES OF PRODUCERS. 

11 Section 1240D(2) of the Food Security Act of 1985 (16 

12 U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, ranch, 

13 or forest’’ and inserting ‘‘enrolled’’. 

14 SEC. 2206. LIMITATION ON PAYMENTS. 

15 Section 1240G of the Food Security Act of 1985 (16 

16 U.S.C. 3839aa–7) is amended— 

17 (1) in subsection (a)— 

18 (A) by striking ‘‘by the person or entity 

19 during any six-year period,’’ and inserting 

20 ‘‘during fiscal years 2014 through 2018’’; and 

21 (B) by striking ‘‘federally recognized’’ and 

22 all that follows through the period and inserting 

23 ‘‘Indian tribes under section 1244(l).’’; and 

24 (2) in subsection (b)(2), by striking ‘‘any six25 year period’’ and inserting ‘‘fiscal years 2014 through 

26 2018’’. 
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1 SEC. 2207. CONSERVATION INNOVATION GRANTS AND PAY2 MENTS. 

3 Section 1240H of the Food Security Act of 1985 (16 

4 U.S.C. 3839aa–8) is amended— 

5 (1) in subsection (b)(2), by striking ‘‘2012’’ and 

6 inserting ‘‘2018’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(c) REPORTING.—Not later than December 31, 2014, 

9 and every 2 years thereafter, the Secretary shall submit to 

10 the Committee on Agriculture, Nutrition, and Forestry of 

11 the Senate and the Committee on Agriculture of the House 

12 of Representatives a report on the status of projects funded 

13 under this section, including— 

14 ‘‘(1) funding awarded; 

15 ‘‘(2) project results; and 

16 ‘‘(3) incorporation of project findings, such as 

17 new technology and innovative approaches, into the 

18 conservation efforts implemented by the Secretary.’’. 

19 SEC. 2208. EFFECTIVE DATE. 

20 (a) IN GENERAL.—The amendments made by this sub21 title shall take effect on October 1, 2013. 

22 (b) EFFECT ON EXISTING CONTRACTS.—The amend23 ments made by this title shall not affect the validity or 

24 terms of any contract entered into by the Secretary of Agri25 culture under chapter 4 of subtitle D of title XII of the Food 

26 Security Act of 1985 (16 U.S.C. 3839aa et seq.) before Octo-
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1 ber 1, 2013, or any payments required to be made in con2 nection with the contract. 

3 Subtitle D—Agricultural 

4 Conservation Easement Program 

5 SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT PRO6 GRAM. 

7 (a) ESTABLISHMENT.—Title XII of the Food Security 

8 Act of 1985 is amended by adding at the end the following: 

9 ‘‘Subtitle H—Agricultural 

10 Conservation Easement Program 

11 ‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 

12 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish 

13 an Agricultural Conservation Easement Program for the 

14 conservation of eligible land and natural resources through 

15 easements or other interests in land. 

16 ‘‘(b) PURPOSES.—The purposes of the program are 

17 to— 

18 ‘‘(1) combine the purposes and coordinate the 

19 functions of the wetlands reserve program established 

20 under section 1237, the grassland reserve program es21 tablished under section 1238N, and the farmland pro22 tection program established under section 1238I; 

23 ‘‘(2) restore, protect, and enhance wetland on eli24 gible land; 
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1 ‘‘(3) protect the agricultural use, viability, and 

2 related conservation values of eligible land by lim3 iting nonagricultural uses of that land; and 

4 ‘‘(4) protect grazing uses and related conserva5 tion values by restoring and conserving eligible land. 

6 ‘‘SEC. 1265A. DEFINITIONS. 

7 ‘‘In this subtitle: 

8 ‘‘(1) AGRICULTURAL LAND EASEMENT.—The 

9 term ‘agricultural land easement’ means an easement 

10 or other interest in eligible land that— 

11 ‘‘(A) is conveyed for the purposes of pro12 tecting natural resources and the agricultural 

13 nature of the land, and of promoting agricul14 tural viability for future generations; and 

15 ‘‘(B) permits the landowner the right to 

16 continue agricultural production and related 

17 uses subject to an agricultural land easement 

18 plan. 

19 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti20 ty’ means— 

21 ‘‘(A) an agency of State or local government 

22 or an Indian tribe (including farmland protec23 tion board or land resource council established 

24 under State law); or 

25 ‘‘(B) an organization that is— 
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1 ‘‘(i) organized for, and at all times 

2 since the formation of the organization has 

3 been operated principally for, 1 or more of 

4 the conservation purposes specified in clause 

5 (i), (ii), (iii), or (iv) of section 170(h)(4)(A) 

6 of the Internal Revenue Code of 1986; 

7 ‘‘(ii) an organization described in sec8 tion 501(c)(3) of that Code that is exempt 

9 from taxation under section 501(a) of that 

10 Code; or 

11 ‘‘(iii) described in— 

12 ‘‘(I) paragraph (1) or (2) of sec13 tion 509(a) of that Code; or 

14 ‘‘(II) section 509(a)(3) of that 

15 Code and is controlled by an organiza16 tion described in section 509(a)(2) of 

17 that Code. 

18 ‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 

19 means private or tribal land that is— 

20 ‘‘(A) in the case of an agricultural land 

21 easement, agricultural land, including land on a 

22 farm or ranch— 

23 ‘‘(i) that is subject to a pending offer 

24 for purchase from an eligible entity; 

25 ‘‘(ii) that— 
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1 ‘‘(I) has prime, unique, or other 

2 productive soil; 

3 ‘‘(II) contains historical or ar4 chaeological resources; or 

5 ‘‘(III) the protection of which 

6 could, consistent with the purposes of 

7 the program— 

8 ‘‘(aa) further a State or local 

9 policy; or 

10 ‘‘(bb) conserve grassland or 

11 agricultural landscapes of signifi12 cant ecological value; and 

13 ‘‘(iii) that is— 

14 ‘‘(I) cropland; 

15 ‘‘(II) rangeland; 

16 ‘‘(III) grassland or land that con17 tains forbs, or shrubland for which 

18 grazing is the predominant use; 

19 ‘‘(IV) pastureland; or 

20 ‘‘(V) nonindustrial private forest 

21 land that contributes to the economic 

22 viability of an offered parcel or serves 

23 as a buffer to protect such land from 

24 development; 
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1 ‘‘(B) in the case of a wetland reserve ease2 ment, a wetland or related area, including— 

3 ‘‘(i) farmed or converted wetland, to4 gether with the adjacent land that is func5 tionally dependent on that land if the Sec6 retary determines it— 

7 ‘‘(I) is likely to be successfully re8 stored in a cost effective manner; and 

9 ‘‘(II) will maximize the wildlife 

10 benefits and wetland functions and 

11 values as determined by the Secretary 

12 in consultation with the Secretary of 

13 the Interior at the local level; 

14 ‘‘(ii) cropland or grassland that was 

15 used for agricultural production prior to 

16 flooding from the natural overflow of a 

17 closed basin lake or pothole, as determined 

18 by the Secretary, together (where prac19 ticable) with the adjacent land that is func20 tionally dependent on the cropland or grass21 land; 

22 ‘‘(iii) farmed wetland and adjoining 

23 land that— 

24 ‘‘(I) is enrolled in the conserva25 tion reserve program; 
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1 ‘‘(II) has the highest wetland 

2 functions and values; and 

3 ‘‘(III) is likely to return to pro4 duction after the land leaves the con5 servation reserve program; 

6 ‘‘(iv) riparian areas that link wetland 

7 that is protected by easements or some other 

8 device that achieves the same purpose as an 

9 easement; or 

10 ‘‘(v) other wetland of an owner that 

11 would not otherwise be eligible if the Sec12 retary determines that the inclusion of such 

13 wetland in such easement would signifi14 cantly add to the functional value of the 

15 easement; and 

16 ‘‘(C) in the case of both an agricultural 

17 land easement or wetland reserve easement, other 

18 land that is incidental to eligible land if the Sec19 retary determines that it is necessary for the effi20 cient administration of the easements under this 

21 program. 

22 ‘‘(4) PROGRAM.—The term ‘program’ means the 

23 Agricultural Conservation Easement Program estab24 lished by this subtitle. 
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1 ‘‘(5) WETLAND RESERVE EASEMENT.—The term 

2 ‘wetland reserve easement’ means a reserved interest 

3 in eligible land that— 

4 ‘‘(A) is defined and delineated in a deed; 

5 and 

6 ‘‘(B) stipulates— 

7 ‘‘(i) the rights, title, and interests in 

8 land conveyed to the Secretary; and 

9 ‘‘(ii) the rights, title, and interests in 

10 land that are reserved to the landowner. 

11 ‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 

12 ‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 

13 shall facilitate and provide funding for— 

14 ‘‘(1) the purchase by eligible entities of agricul15 tural land easements and other interests in eligible 

16 land; and 

17 ‘‘(2) technical assistance to provide for the con18 servation of natural resources pursuant to an agricul19 tural land easement plan. 

20 ‘‘(b) COST-SHARE ASSISTANCE.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall provide 

22 cost-share assistance to eligible entities for purchasing 

23 agricultural land easements to protect the agricul24 tural use, including grazing, and related conservation 

25 values of eligible land. 
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1 ‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 

2 ‘‘(A) FEDERAL SHARE.—Subject to sub3 paragraph (C), an agreement described in para4 graph (4) shall provide for a Federal share deter5 mined by the Secretary of an amount not to ex6 ceed 50 percent of the fair market value of the 

7 agricultural land easement or other interest in 

8 land, as determined by the Secretary using— 

9 ‘‘(i) the Uniform Standards of Profes10 sional Appraisal Practices; 

11 ‘‘(ii) an area-wide market analysis or 

12 survey; or 

13 ‘‘(iii) another industry approved meth14 od. 

15 ‘‘(B) NON-FEDERAL SHARE.— 

16 ‘‘(i) IN GENERAL.—Subject to subpara17 graph (C), under the agreement, the eligible 

18 entity shall provide a share that is at least 

19 equivalent to that provided by the Sec20 retary. 

21 ‘‘(ii) SOURCE OF CONTRIBUTION.—An 

22 eligible entity may include as part of its 

23 share a charitable donation or qualified 

24 conservation contribution (as defined by 

25 section 170(h) of the Internal Revenue Code 
224 

† HR 2642 EAS 

1 of 1986) from the private landowner if the 

2 eligible entity contributes its own cash re3 sources in an amount that is at least 50 

4 percent of the amount contributed by the 

5 Secretary. 

6 ‘‘(C) WAIVER AUTHORITY.— 

7 ‘‘(i) GRASSLAND.—In the case of grass8 land of special environmental significance, 

9 as determined by the Secretary, the Sec10 retary may provide up to 75 percent of the 

11 fair market value of the agricultural land 

12 easement. 

13 ‘‘(ii) CASH CONTRIBUTION.—For pur14 poses of subparagraph (B)(ii), the Secretary 

15 may waive any portion of the eligible entity 

16 cash contribution requirement for projects of 

17 special significance, subject to an increase 

18 in the private landowner donation that is 

19 equal to the amount of the waiver, if the do20 nation is voluntary. 

21 ‘‘(3) EVALUATION AND RANKING OF APPLICA22 TIONS.— 

23 ‘‘(A) CRITERIA.—The Secretary shall estab24 lish evaluation and ranking criteria to maximize 
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† HR 2642 EAS 

1 the benefit of Federal investment under the pro2 gram. 

3 ‘‘(B) CONSIDERATIONS.—In establishing the 

4 criteria, the Secretary shall emphasize support 

5 for— 

6 ‘‘(i) protecting agricultural uses and 

7 related conservation values of the land; and 

8 ‘‘(ii) maximizing the protection of 

9 areas devoted to agricultural use. 

10 ‘‘(C) BIDDING DOWN.—If the Secretary de11 termines that 2 or more applications for cost12 share assistance are comparable in achieving the 

13 purpose of the program, the Secretary shall not 

14 assign a higher priority to any of those applica15 tions solely on the basis of lesser cost to the pro16 gram. 

17 ‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 

18 ‘‘(A) IN GENERAL.—The Secretary shall 

19 enter into agreements with eligible entities to 

20 stipulate the terms and conditions under which 

21 the eligible entity is permitted to use cost-share 

22 assistance provided under this section. 

23 ‘‘(B) LENGTH OF AGREEMENTS.—An agree24 ment shall be for a term that is— 
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† HR 2642 EAS 

1 ‘‘(i) in the case of an eligible entity 

2 certified under the process described in 

3 paragraph (5), a minimum of 5 years; and 

4 ‘‘(ii) for all other eligible entities, at 

5 least 3, but not more than 5 years. 

6 ‘‘(C) MINIMUM TERMS AND CONDITIONS.— 

7 An eligible entity shall be authorized to use its 

8 own terms and conditions for agricultural land 

9 easements so long as the Secretary determines 

10 such terms and conditions— 

11 ‘‘(i) are consistent with the purposes of 

12 the program; 

13 ‘‘(ii) are permanent or for the max14 imum duration allowed under applicable 

15 State law; 

16 ‘‘(iii) permit effective enforcement of 

17 the conservation purposes of such easements, 

18 including appropriate restrictions depend19 ing on the purposes for which the easement 

20 is acquired; 

21 ‘‘(iv) include a right of enforcement for 

22 the Secretary if terms of the easement are 

23 not enforced by the holder of the easement; 
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† HR 2642 EAS 

1 ‘‘(v) subject the land in which an in2 terest is purchased to an agricultural land 

3 easement plan that— 

4 ‘‘(I) describes the activities which 

5 promote the long-term viability of the 

6 land to meet the purposes for which the 

7 easement was acquired; 

8 ‘‘(II) requires the management of 

9 grassland according to a grassland 

10 management plan; and 

11 ‘‘(III) includes a conservation 

12 plan, where appropriate, and requires, 

13 at the option of the Secretary, the con14 version of highly erodible cropland to 

15 less intensive uses; and 

16 ‘‘(vi) include a limit on the impervious 

17 surfaces to be allowed that is consistent with 

18 the agricultural activities to be conducted. 

19 ‘‘(D) SUBSTITUTION OF QUALIFIED

20 PROJECTS.—An agreement shall allow, upon mu21 tual agreement of the parties, substitution of 

22 qualified projects that are identified at the time 

23 of the proposed substitution. 
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† HR 2642 EAS 

1 ‘‘(E) EFFECT OF VIOLATION.—If a violation 

2 occurs of a term or condition of an agreement 

3 under this subsection— 

4 ‘‘(i) the agreement may be terminated; 

5 and 

6 ‘‘(ii) the Secretary may require the eli7 gible entity to refund all or part of any 

8 payments received by the entity under the 

9 program, with interest on the payments as 

10 determined appropriate by the Secretary. 

11 ‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 

12 ‘‘(A) CERTIFICATION PROCESS.—The Sec13 retary shall establish a process under which the 

14 Secretary may— 

15 ‘‘(i) directly certify eligible entities 

16 that meet established criteria; 

17 ‘‘(ii) enter into long-term agreements 

18 with certified eligible entities; and 

19 ‘‘(iii) accept proposals for cost-share 

20 assistance for the purchase of agricultural 

21 land easements throughout the duration of 

22 such agreements. 

23 ‘‘(B) CERTIFICATION CRITERIA.—In order 

24 to be certified, an eligible entity shall dem25 onstrate to the Secretary that the entity will 
229 

† HR 2642 EAS 

1 maintain, at a minimum, for the duration of the 

2 agreement— 

3 ‘‘(i) a plan for administering ease4 ments that is consistent with the purposes of 

5 the program described in paragraphs (3) 

6 and (4) of section 1265(b); 

7 ‘‘(ii) the capacity and resources to 

8 monitor and enforce agricultural land ease9 ments; and 

10 ‘‘(iii) policies and procedures to en11 sure— 

12 ‘‘(I) the long-term integrity of ag13 ricultural land easements on eligible 

14 land; 

15 ‘‘(II) timely completion of acqui16 sitions of easements; and 

17 ‘‘(III) timely and complete eval18 uation and reporting to the Secretary 

19 on the use of funds provided under the 

20 program. 

21 ‘‘(C) REVIEW AND REVISION.— 

22 ‘‘(i) REVIEW.—The Secretary shall 

23 conduct a review of eligible entities certified 

24 under subparagraph (A) every 3 years to 

25 ensure that such entities are meeting the 
230 

† HR 2642 EAS 

1 criteria established under subparagraph 

2 (B). 

3 ‘‘(ii) REVOCATION.—If the Secretary 

4 finds that the certified entity no longer 

5 meets the criteria established under sub6 paragraph (B), the Secretary may— 

7 ‘‘(I) allow the certified entity a 

8 specified period of time, at a minimum 

9 180 days, in which to take such actions 

10 as may be necessary to meet the cri11 teria; and 

12 ‘‘(II) revoke the certification of the 

13 entity, if after the specified period of 

14 time, the certified entity does not meet 

15 such criteria. 

16 ‘‘(c) TECHNICAL ASSISTANCE.—The Secretary may 

17 provide technical assistance, if requested, to assist in— 

18 ‘‘(1) compliance with the terms and conditions of 

19 easements; and 

20 ‘‘(2) implementation of an agricultural land 

21 easement plan. 

22 ‘‘SEC. 1265C. WETLAND RESERVE EASEMENTS. 

23 ‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 

24 shall provide assistance to owners of eligible land to restore, 

25 protect, and enhance wetland through— 
231 

† HR 2642 EAS 

1 ‘‘(1) easements and related wetland reserve ease2 ment plans; and 

3 ‘‘(2) technical assistance. 

4 ‘‘(b) EASEMENTS.— 

5 ‘‘(1) METHOD OF ENROLLMENT.—The Secretary 

6 shall enroll eligible land through the use of— 

7 ‘‘(A) 30-year easements; 

8 ‘‘(B) permanent easements; 

9 ‘‘(C) easements for the maximum duration 

10 allowed under applicable State laws; or 

11 ‘‘(D) as an option for Indian tribes only, 

12 30-year contracts. 

13 ‘‘(2) LIMITATIONS.— 

14 ‘‘(A) INELIGIBLE LAND.—The Secretary 

15 may not acquire easements on— 

16 ‘‘(i) land established to trees under the 

17 conservation reserve program, except in 

18 cases where the Secretary determines it 

19 would further the purposes of the program; 

20 and 

21 ‘‘(ii) farmed wetland or converted wet22 land where the conversion was not com23 menced prior to December 23, 1985. 

24 ‘‘(B) CHANGES IN OWNERSHIP.—No ease25 ment shall be created on land that has changed 
232 

† HR 2642 EAS 

1 ownership during the preceding 12-month period 

2 unless— 

3 ‘‘(i) the new ownership was acquired 

4 by will or succession as a result of the death 

5 of the previous owner; 

6 ‘‘(ii)(I) the ownership change occurred 

7 because of foreclosure on the land; and 

8 ‘‘(II) immediately before the fore9 closure, the owner of the land exercises a 

10 right of redemption from the mortgage hold11 er in accordance with State law; or 

12 ‘‘(iii) the Secretary determines that the 

13 land was acquired under circumstances that 

14 give adequate assurances that such land was 

15 not acquired for the purposes of placing it 

16 in the program. 

17 ‘‘(3) EVALUATION AND RANKING OF OFFERS.— 

18 ‘‘(A) CRITERIA.—The Secretary shall estab19 lish evaluation and ranking criteria to maximize 

20 the benefit of Federal investment under the pro21 gram. 

22 ‘‘(B) CONSIDERATIONS.—When evaluating 

23 offers from landowners, the Secretary may con24 sider— 
233 

† HR 2642 EAS 

1 ‘‘(i) the conservation benefits of obtain2 ing an easement or 30-year contract, in3 cluding the potential environmental benefits 

4 if the land was removed from agricultural 

5 production; 

6 ‘‘(ii) the cost-effectiveness of each ease7 ment or 30-year contract, so as to maximize 

8 the environmental benefits per dollar ex9 pended; 

10 ‘‘(iii) whether the landowner or an11 other person is offering to contribute finan12 cially to the cost of the easement or 30-year 

13 contract to leverage Federal funds; and 

14 ‘‘(iv) such other factors as the Sec15 retary determines are necessary to carry out 

16 the purposes of the program. 

17 ‘‘(C) PRIORITY.—The Secretary shall place 

18 priority on acquiring easements based on the 

19 value of the easement for protecting and enhanc20 ing habitat for migratory birds and other wild21 life. 

22 ‘‘(4) AGREEMENT.—To be eligible to place eligi23 ble land into the program through a wetland reserve 

24 easement, the owner of such land shall enter into an 

25 agreement with the Secretary to— 
234 

† HR 2642 EAS 

1 ‘‘(A) grant an easement on such land to the 

2 Secretary; 

3 ‘‘(B) authorize the implementation of a wet4 land reserve easement plan; 

5 ‘‘(C) create and record an appropriate deed 

6 restriction in accordance with applicable State 

7 law to reflect the easement agreed to; 

8 ‘‘(D) provide a written statement of consent 

9 to such easement signed by those holding a secu10 rity interest in the land; 

11 ‘‘(E) comply with the terms and conditions 

12 of the easement and any related agreements; and 

13 ‘‘(F) permanently retire any existing crop14 land base and allotment history for the land on 

15 which the easement has been obtained. 

16 ‘‘(5) TERMS AND CONDITIONS OF EASEMENT.— 

17 ‘‘(A) IN GENERAL.—A wetland reserve ease18 ment shall include terms and conditions that— 

19 ‘‘(i) permit— 

20 ‘‘(I) repairs, improvements, and 

21 inspections on the land that are nec22 essary to maintain existing public 

23 drainage systems; and 

24 ‘‘(II) owners to control public ac25 cess on the easement areas while iden-
235 

† HR 2642 EAS 

1 tifying access routes to be used for res2 toration activities and management 

3 and easement monitoring; 

4 ‘‘(ii) prohibit— 

5 ‘‘(I) the alteration of wildlife 

6 habitat and other natural features of 

7 such land, unless specifically author8 ized by the Secretary; 

9 ‘‘(II) the spraying of such land 

10 with chemicals or the mowing of such 

11 land, except where such spraying or 

12 mowing is authorized by the Secretary 

13 or is necessary— 

14 ‘‘(aa) to comply with Federal 

15 or State noxious weed control 

16 laws; 

17 ‘‘(bb) to comply with a Fed18 eral or State emergency pest treat19 ment program; or 

20 ‘‘(cc) to meet habitat needs of 

21 specific wildlife species; 

22 ‘‘(III) any activities to be carried 

23 out on the owner’s or successor’s land 

24 that is immediately adjacent to, and 

25 functionally related to, the land that is 
236 

† HR 2642 EAS 

1 subject to the easement if such activi2 ties will alter, degrade, or otherwise di3 minish the functional value of the eli4 gible land; and 

5 ‘‘(IV) the adoption of any other 

6 practice that would tend to defeat the 

7 purposes of the program, as determined 

8 by the Secretary; 

9 ‘‘(iii) provide for the efficient and ef10 fective establishment of wetland functions 

11 and values; and 

12 ‘‘(iv) include such additional provi13 sions as the Secretary determines are desir14 able to carry out the program or facilitate 

15 the practical administration thereof. 

16 ‘‘(B) VIOLATION.—On the violation of the 

17 terms or conditions of the easement, the easement 

18 shall remain in force and the Secretary may re19 quire the owner to refund all or part of any pay20 ments received by the owner under the program, 

21 together with interest thereon as determined ap22 propriate by the Secretary. 

23 ‘‘(C) COMPATIBLE USES.—Land subject to a 

24 wetland reserve easement may be used for com25 patible economic uses, including such activities 
237 

† HR 2642 EAS 

1 as hunting and fishing, managed timber harvest, 

2 or periodic haying or grazing, if such use is spe3 cifically permitted by the wetland reserve ease4 ment plan and is consistent with the long-term 

5 protection and enhancement of the wetland re6 sources for which the easement was established. 

7 ‘‘(D) RESERVATION OF GRAZING RIGHTS.— 

8 The Secretary may include in the terms and con9 ditions of an easement a provision under which 

10 the owner reserves grazing rights if— 

11 ‘‘(i) the Secretary determines that the 

12 reservation and use of the grazing rights— 

13 ‘‘(I) is compatible with the land 

14 subject to the easement; 

15 ‘‘(II) is consistent with the histor16 ical natural uses of the land and long17 term protection and enhancement goals 

18 for which the easement was established; 

19 and 

20 ‘‘(III) complies with the wetland 

21 reserve easement plan; and 

22 ‘‘(ii) the agreement provides for a com23 mensurate reduction in the easement pay24 ment to account for the grazing value, as 

25 determined by the Secretary. 
238 

† HR 2642 EAS 

1 ‘‘(E) APPLICATION.—The relevant provi2 sions of this paragraph shall also apply to a 30- 

3 year contract. 

4 ‘‘(6) COMPENSATION.— 

5 ‘‘(A) DETERMINATION.— 

6 ‘‘(i) IN GENERAL.—The Secretary shall 

7 pay as compensation for a permanent ease8 ment acquired an amount necessary to en9 courage enrollment in the program based on 

10 the lowest of— 

11 ‘‘(I) the fair market value of the 

12 land, as determined by the Secretary, 

13 using the Uniform Standards of Pro14 fessional Appraisal Practices or an 

15 area-wide market analysis or survey; 

16 ‘‘(II) the amount corresponding to 

17 a geographical cap, as determined by 

18 the Secretary in regulations; or 

19 ‘‘(III) the offer made by the land20 owner. 

21 ‘‘(ii) OTHER.—Compensation for a 30- 

22 year contract or 30-year easement shall be 

23 not less than 50 percent, but not more than 

24 75 percent, of the compensation that would 

25 be paid for a permanent easement. 
239 

† HR 2642 EAS 

1 ‘‘(B) FORM OF PAYMENT.—Compensation 

2 shall be provided by the Secretary in the form of 

3 a cash payment, in an amount determined under 

4 subparagraph (A). 

5 ‘‘(C) PAYMENT SCHEDULE.— 

6 ‘‘(i) EASEMENTS VALUED AT LESS

7 THAN $500,000.—For easements valued at 

8 $500,000 or less, the Secretary may provide 

9 easement payments in not more than 10 an10 nual payments. 

11 ‘‘(ii) EASEMENTS VALUED AT MORE

12 THAN $500,000.—For easements valued at 

13 more than $500,000, the Secretary may 

14 provide easement payments in at least 5, 

15 but not more than 10 annual payments, ex16 cept that, if the Secretary determines it 

17 would further the purposes of the program, 

18 the Secretary may make a lump sum pay19 ment for such an easement. 

20 ‘‘(c) EASEMENT RESTORATION.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall provide 

22 financial assistance to carry out the establishment of 

23 conservation measures and practices and protect wet24 land functions and values, including necessary main-
240 

† HR 2642 EAS 

1 tenance activities, as set forth in a wetland reserve 

2 easement plan. 

3 ‘‘(2) PAYMENTS.—The Secretary shall— 

4 ‘‘(A) in the case of a permanent easement, 

5 pay an amount that is not less than 75 percent, 

6 but not more than 100 percent, of the eligible 

7 costs; and 

8 ‘‘(B) in the case of a 30-year contract or 

9 30-year easement, pay an amount that is not 

10 less than 50 percent, but not more than 75 per11 cent, of the eligible costs. 

12 ‘‘(d) TECHNICAL ASSISTANCE.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall assist 

14 owners in complying with the terms and conditions 

15 of easements and 30-year contracts. 

16 ‘‘(2) CONTRACTS OR AGREEMENTS.—The Sec17 retary may enter into 1 or more contracts with pri18 vate entities or agreements with a State, non-govern19 mental organization, or Indian tribe to carry out nec20 essary restoration, enhancement or maintenance of an 

21 easement if the Secretary determines that the contract 

22 or agreement will advance the purposes of the pro23 gram. 

24 ‘‘(e) WETLAND ENHANCEMENT OPTION.—The Sec25 retary may enter into 1 or more agreements with a State 
241 

† HR 2642 EAS 

1 (including a political subdivision or agency of a State), 

2 nongovernmental organization, or Indian tribe to carry out 

3 a special wetland enhancement option that the Secretary 

4 determines would advance the purposes of the program. 

5 ‘‘(f) ADMINISTRATION.— 

6 ‘‘(1) WETLAND RESERVE EASEMENT PLAN.—The 

7 Secretary shall develop a wetland reserve easement 

8 plan for eligible land subject to a wetland reserve 

9 easement, which will include the practices and activi10 ties necessary to restore, protect, enhance, and main11 tain the enrolled land. 

12 ‘‘(2) DELEGATION OF EASEMENT ADMINISTRA13 TION.— 

14 ‘‘(A) IN GENERAL.—The Secretary may del15 egate any of the easement management, moni16 toring, and enforcement responsibilities of the 

17 Secretary to other Federal or State agencies that 

18 have the appropriate authority, expertise and re19 sources necessary to carry out such delegated re20 sponsibilities or to other conservation organiza21 tions if the Secretary determines the organiza22 tion has similar expertise and resources. 

23 ‘‘(B) LIMITATION.—The Secretary shall not 

24 delegate any of the monitoring or enforcement re-
242 

† HR 2642 EAS 

1 sponsibilities under the program to conservation 

2 organizations. 

3 ‘‘(3) PAYMENTS.— 

4 ‘‘(A) TIMING OF PAYMENTS.—The Secretary 

5 shall provide payment for obligations incurred 

6 by the Secretary under this section— 

7 ‘‘(i) with respect to any easement res8 toration obligation as soon as possible after 

9 the obligation is incurred; and 

10 ‘‘(ii) with respect to any annual ease11 ment payment obligation incurred by the 

12 Secretary as soon as possible after October 

13 1 of each calendar year. 

14 ‘‘(B) PAYMENTS TO OTHERS.—If an owner 

15 who is entitled to a payment dies, becomes in16 competent, is otherwise unable to receive such 

17 payment, or is succeeded by another person or 

18 entity who renders or completes the required per19 formance, the Secretary shall make such pay20 ment, in accordance with regulations prescribed 

21 by the Secretary and without regard to any other 

22 provision of law, in such manner as the Sec23 retary determines is fair and reasonable in light 

24 of all of the circumstances. 
243 

† HR 2642 EAS 

1 ‘‘SEC. 1265D. ADMINISTRATION. 

2 ‘‘(a) INELIGIBLE LAND.—The Secretary may not ac3 quire an easement under the program on— 

4 ‘‘(1) land owned by an agency of the United 

5 States, other than land held in trust for Indian tribes; 

6 ‘‘(2) land owned in fee title by a State, including 

7 an agency or a subdivision of a State, or a unit of 

8 local government; 

9 ‘‘(3) land subject to an easement or deed restric10 tion which, as determined by the Secretary, provides 

11 similar protection as would be provided by enrollment 

12 in the program; and 

13 ‘‘(4) land where the purposes of the program 

14 would be undermined due to on-site or off-site condi15 tions, such as risk of hazardous substances, proposed 

16 or existing rights of way, infrastructure development, 

17 or adjacent land uses. 

18 ‘‘(b) PRIORITY.—In evaluating applications under the 

19 program, the Secretary may give priority to land that is 

20 currently enrolled in the conservation reserve program in 

21 a contract that is set to expire within 1 year and— 

22 ‘‘(1) in the case of an agricultural land ease23 ment, is grassland that would benefit from protection 

24 under a long-term easement; and 

25 ‘‘(2) in the case of a wetland reserve easement, 

26 is a wetland or related area with the highest functions 
244 

† HR 2642 EAS 

1 and values and is likely to return to production after 

2 the land leaves the conservation reserve program. 

3 ‘‘(c) SUBORDINATION, EXCHANGE, MODIFICATION, AND

4 TERMINATION.— 

5 ‘‘(1) IN GENERAL.—The Secretary may subordi6 nate, exchange, terminate, or modify any interest in 

7 land, or portion of such interest, administered by the 

8 Secretary, either directly or on behalf of the Com9 modity Credit Corporation under the program when 

10 the Secretary determines that— 

11 ‘‘(A) it is in the Federal Government’s in12 terest to subordinate, exchange, modify or termi13 nate the interest in land; 

14 ‘‘(B) the subordination, exchange, modifica15 tion, or termination action— 

16 ‘‘(i) will address a compelling public 

17 need for which there is no practicable alter18 native, or 

19 ‘‘(ii) such action will further the prac20 tical administration of the program; and 

21 ‘‘(C) the subordination, exchange, modifica22 tion, or termination action will result in com23 parable conservation value and equivalent or 

24 greater economic value to the United States. 
245 

† HR 2642 EAS 

1 ‘‘(2) CONSULTATION.—The Secretary shall work 

2 with the current owner, and eligible entity if applica3 ble, to address any subordination, exchange, termi4 nation, or modification of the interest, or portion of 

5 such interest in land. 

6 ‘‘(3) NOTICE.—At least 90 days before taking 

7 any termination action described in paragraph (1), 

8 the Secretary shall provide written notice of such ac9 tion to the Committee on Agriculture of the House of 

10 Representatives and the Committee on Agriculture, 

11 Nutrition, and Forestry of the Senate. 

12 ‘‘(d) LAND ENROLLED IN OTHER PROGRAMS.— 

13 ‘‘(1) CONSERVATION RESERVE PROGRAM.—The 

14 Secretary may terminate or modify an existing con15 tract entered into under section 1231(a) if eligible 

16 land that is subject to such contract is transferred 

17 into the program. 

18 ‘‘(2) OTHER.—Land enrolled in the wetlands re19 serve program, grassland reserve program, or farm20 land protection program shall be considered enrolled 

21 in this program.’’. 

22 (b) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

23 Before an eligible entity or owner of eligible land may re24 ceive assistance under subtitle H of title XII of the Food 

25 Security Act of 1985, the eligible entity or person shall 
246 

† HR 2642 EAS 

1 agree, during the crop year for which the assistance is pro2 vided and in exchange for the assistance— 

3 (1) to comply with applicable conservation re4 quirements under subtitle B of title XII of that Act 

5 (16 U.S.C. 3811 et seq.); and 

6 (2) to comply with applicable wetland protection 

7 requirements under subtitle C of title XII of that Act 

8 (16 U.S.C. 3821 et seq.). 

9 (c) CROSS-REFERENCE.—Section 1244 of the Food Se10 curity Act of 1985 (16 U.S.C. 3844) is amended— 

11 (1) in subsection (c)— 

12 (A) in paragraph (1)— 

13 (i) by inserting ‘‘and’’ at the end of 

14 subparagraph (A); 

15 (ii) by striking ‘‘and’’ at the end of 

16 subparagraph (B); and 

17 (iii) by striking subparagraph (C); 

18 (B) by redesignating paragraph (2) as 

19 paragraph (3); and 

20 (C) by inserting after paragraph (1) the fol21 lowing: 

22 ‘‘(2) the Agricultural Conservation Easement 

23 Program established under subtitle H; and’’; and 

24 (2) in subsection (f)— 

25 (A) in paragraph (1)— 
247 

† HR 2642 EAS 

1 (i) in subparagraph (A), by striking 

2 ‘‘programs administered under subchapters 

3 B and C of chapter 1 of subtitle D’’ and in4 serting ‘‘conservation reserve program estab5 lished under subchapter B of chapter 1 of 

6 subtitle D and the Agricultural Conserva7 tion Easement Program under subtitle H 

8 using wetland reserve easements under sec9 tion 1265C’’; and 

10 (ii) in subparagraph (B), by striking 

11 ‘‘subchapter C of chapter 1 of subtitle D’’ 

12 and inserting ‘‘the Agricultural Conserva13 tion Easement Program under subtitle H 

14 using wetland reserve easements under sec15 tion 1265C’’; and 

16 (B) by striking paragraph (4) and inserting 

17 the following: 

18 ‘‘(4) EXCLUSIONS.— 

19 ‘‘(A) SHELTERBELTS AND WINDBREAKS.— 

20 The limitations established under paragraph (1) 

21 shall not apply to cropland that is subject to an 

22 easement under subchapter C of chapter 1 that 

23 is used for the establishment of shelterbelts and 

24 windbreaks. 
248 

† HR 2642 EAS 

1 ‘‘(B) WET AND SATURATED SOILS.—For the 

2 purposes of enrolling land in a wetland reserve 

3 easement under subtitle H, the limitations estab4 lished under paragraph (1) shall not apply to 

5 cropland designated by the Secretary with sub6 class w in the land capability classes IV through 

7 VIII because of severe use limitations due to soil 

8 saturation or inundation.’’. 

9 (d) EFFECTIVE DATE.—The amendments made by this 

10 section shall take effect on October 1, 2013. 

11 Subtitle E—Regional Conservation 

12 Partnership Program 

13 SEC. 2401. REGIONAL CONSERVATION PARTNERSHIP PRO14 GRAM. 

15 (a) IN GENERAL.—Title XII of the Food Security Act 

16 of 1985 is amended by inserting after subtitle H (as added 

17 by section 2301) the following: 

18 ‘‘Subtitle I—Regional Conservation 

19 Partnership Program 

20 ‘‘SEC. 1271. ESTABLISHMENT AND PURPOSES. 

21 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish 

22 a Regional Conservation Partnership Program to imple23 ment eligible activities through— 

24 ‘‘(1) partnership agreements with eligible part25 ners; and 
249 

† HR 2642 EAS 

1 ‘‘(2) contracts with producers. 

2 ‘‘(b) PURPOSES.—The purposes of the program are— 

3 ‘‘(1) to combine the purposes and coordinate the 

4 functions of— 

5 ‘‘(A) the agricultural water enhancement 

6 program established under section 1240I; 

7 ‘‘(B) the Chesapeake Bay watershed pro8 gram established under section 1240Q; 

9 ‘‘(C) the cooperative conservation partner10 ship initiative established under section 1243; 

11 and 

12 ‘‘(D) the Great Lakes basin program for soil 

13 erosion and sediment control established under 

14 section 1240P; 

15 ‘‘(2) to further the conservation, restoration, and 

16 sustainable use of soil, water, wildlife, and related 

17 natural resources on a regional or watershed scale; 

18 and 

19 ‘‘(3) to encourage partners to cooperate with pro20 ducers in— 

21 ‘‘(A) meeting or avoiding the need for na22 tional, State, and local natural resource regu23 latory requirements related to production; and 

24 ‘‘(B) implementing projects that will result 

25 in the installation and maintenance of eligible 
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1 activities that affect multiple agricultural or 

2 nonindustrial private forest operations on a 

3 local, regional, State, or multi-State basis. 

4 ‘‘SEC. 1271A. DEFINITIONS. 

5 ‘‘In this subtitle: 

6 ‘‘(1) COVERED PROGRAMS.—The term ‘covered 

7 programs’ means— 

8 ‘‘(A) the agricultural conservation easement 

9 program; 

10 ‘‘(B) the environmental quality incentives 

11 program; 

12 ‘‘(C) the conservation stewardship program; 

13 and 

14 ‘‘(D) the healthy forests reserve program es15 tablished under section 501 of the Healthy For16 ests Restoration Act of 2003 (16 U.S.C. 6571). 

17 ‘‘(2) ELIGIBLE ACTIVITY.—The term ‘eligible ac18 tivity’ means any of the following conservation activi19 ties when delivered through a covered program: 

20 ‘‘(A) Water quality restoration or enhance21 ment projects, including nutrient management 

22 and sediment reduction. 

23 ‘‘(B) Water quantity conservation, restora24 tion, or enhancement projects relating to surface 

25 water and groundwater resources, including— 
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1 ‘‘(i) the conversion of irrigated crop2 land to the production of less water-inten3 sive agricultural commodities or dryland 

4 farming; and 

5 ‘‘(ii) irrigation system improvement 

6 and irrigation efficiency enhancement. 

7 ‘‘(C) Drought mitigation. 

8 ‘‘(D) Flood prevention. 

9 ‘‘(E) Water retention. 

10 ‘‘(F) Habitat conservation, restoration, and 

11 enhancement. 

12 ‘‘(G) Erosion control. 

13 ‘‘(H) Forest restoration, including recovery 

14 of threatened and endangered species, improve15 ment of biodiversity, and enhancement of carbon 

16 sequestration. 

17 ‘‘(I) Other related activities that the Sec18 retary determines will help achieve conservation 

19 benefits. 

20 ‘‘(3) ELIGIBLE PARTNER.—The term ‘eligible 

21 partner’ means any of the following: 

22 ‘‘(A) An agricultural or silvicultural pro23 ducer association or other group of producers. 

24 ‘‘(B) A State or unit of local government. 

25 ‘‘(C) An Indian tribe. 
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1 ‘‘(D) A farmer cooperative. 

2 ‘‘(E) An institution of higher education. 

3 ‘‘(F) A municipal water or wastewater 

4 treatment entity. 

5 ‘‘(G) An organization or other nongovern6 mental entity with an established history of 

7 working cooperatively with producers on agricul8 tural land, as determined by the Secretary, to 

9 address— 

10 ‘‘(i) local conservation priorities re11 lated to agricultural production, wildlife 

12 habitat development, and nonindustrial pri13 vate forest land management; or 

14 ‘‘(ii) critical watershed-scale soil ero15 sion, water quality, sediment reduction, or 

16 other natural resource concerns. 

17 ‘‘(4) PARTNERSHIP AGREEMENT.—The term 

18 ‘partnership agreement’ means an agreement between 

19 the Secretary and an eligible partner. 

20 ‘‘(5) PROGRAM.—The term ‘program’ means the 

21 Regional Conservation Partnership Program estab22 lished by this subtitle. 

23 ‘‘SEC. 1271B. REGIONAL CONSERVATION PARTNERSHIPS. 

24 ‘‘(a) PARTNERSHIP AGREEMENTS AUTHORIZED.—The 

25 Secretary may enter into a partnership agreement with an 
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1 eligible partner to implement a project that will assist pro2 ducers with installing and maintaining an eligible activity. 

3 ‘‘(b) LENGTH.—A partnership agreement shall be for 

4 a period not to exceed 5 years, except that the Secretary 

5 may extend the agreement 1 time for up to 12 months when 

6 an extension is necessary to meet the objectives of the pro7 gram. 

8 ‘‘(c) DUTIES OF PARTNERS.— 

9 ‘‘(1) IN GENERAL.—Under a partnership agree10 ment, the eligible partner shall— 

11 ‘‘(A) define the scope of a project, includ12 ing— 

13 ‘‘(i) the eligible activities to be imple14 mented; 

15 ‘‘(ii) the potential agricultural or non16 industrial private forest operations affected; 

17 ‘‘(iii) the local, State, multi-State or 

18 other geographic area covered; and 

19 ‘‘(iv) the planning, outreach, imple20 mentation and assessment to be conducted; 

21 ‘‘(B) conduct outreach and education to 

22 producers for potential participation in the 

23 project; 
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1 ‘‘(C) at the request of a producer, act on be2 half of a producer participating in the project in 

3 applying for assistance under section 1271C; 

4 ‘‘(D) leverage financial or technical assist5 ance provided by the Secretary with additional 

6 funds to help achieve the project objectives; 

7 ‘‘(E) conduct an assessment of the project’s 

8 effects; and 

9 ‘‘(F) at the conclusion of the project, report 

10 to the Secretary on its results and funds lever11 aged. 

12 ‘‘(2) CONTRIBUTION.—A partner shall provide a 

13 significant portion of the overall costs of the scope of 

14 the project as determined by the Secretary. 

15 ‘‘(d) APPLICATIONS.— 

16 ‘‘(1) COMPETITIVE PROCESS.—The Secretary 

17 shall conduct a competitive process to select applica18 tions for partnership agreements and may assess and 

19 rank applications with similar conservation purposes 

20 as a group. 

21 ‘‘(2) CRITERIA USED.—In carrying out the proc22 ess described in paragraph (1), the Secretary shall 

23 make public the criteria used in evaluating applica24 tions. 
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1 ‘‘(3) CONTENT.—An application to the Secretary 

2 shall include a description of— 

3 ‘‘(A) the scope of the project as described in 

4 subsection (c)(1)(A); 

5 ‘‘(B) the plan for monitoring, evaluating, 

6 and reporting on progress made towards achiev7 ing the project’s objectives; 

8 ‘‘(C) the program resources requested for the 

9 project, including the covered programs to be 

10 used and estimated funding needed from the Sec11 retary; 

12 ‘‘(D) the partners collaborating to achieve 

13 project objectives, including their roles, respon14 sibilities, capabilities, and financial contribu15 tion; and 

16 ‘‘(E) any other elements the Secretary con17 siders necessary to adequately evaluate and com18 petitively select applications for funding under 

19 the program. 

20 ‘‘(4) APPLICATION SELECTION.— 

21 ‘‘(A) PRIORITY TO CERTAIN APPLICA22 TIONS.—The Secretary shall give a higher pri23 ority to applications that— 
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1 ‘‘(i) assist producers in meeting or 

2 avoiding the need for a natural resource 

3 regulatory requirement; 

4 ‘‘(ii) significantly leverage non-Federal 

5 financial and technical resources and co6 ordinate with other local, State, regional, or 

7 national efforts; 

8 ‘‘(iii) deliver high percentages of ap9 plied conservation to address conservation 

10 priorities or local, State, regional, or na11 tional conservation initiatives; 

12 ‘‘(iv) provide innovation in conserva13 tion methods and delivery, including out14 come-based performance measures and 

15 methods; or 

16 ‘‘(v) provide innovation in the im17 provement and delivery of water quality or 

18 quantity, including outcome-based perform19 ance measures and methods. 

20 ‘‘(B) OTHER APPLICATIONS.—The Secretary 

21 may give priority to applications that— 

22 ‘‘(i) have a high percentage of pro23 ducers in the area to be covered by the 

24 agreement; or 
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1 ‘‘(ii) meet other factors that are impor2 tant for achieving the purposes of the pro3 gram, as determined by the Secretary. 

4 ‘‘SEC. 1271C. ASSISTANCE TO PRODUCERS. 

5 ‘‘(a) IN GENERAL.—The Secretary shall enter into con6 tracts to provide financial and technical assistance to— 

7 ‘‘(1) producers participating in a project with 

8 an eligible partner as described in section 1271B; or 

9 ‘‘(2) producers that fit within the scope of a 

10 project described in section 1271B or a critical con11 servation area designated pursuant to section 1271F, 

12 but who are seeking to implement an eligible activity 

13 independent of a partner. 

14 ‘‘(b) TERMS AND CONDITIONS.— 

15 ‘‘(1) CONSISTENCY WITH PROGRAM RULES.— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 paragraph (2) and subparagraph (B), the Sec18 retary shall ensure that the terms and conditions 

19 of a contract under this section are consistent 

20 with the applicable rules of the covered programs 

21 to be used as part of the partnership agreement, 

22 as described in the application under section 

23 1271B(d)(3)(C). 

24 ‘‘(B) ADJUSTMENTS.— 
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1 ‘‘(i) IN GENERAL.—The Secretary may 

2 adjust rules of a covered program, includ3 ing— 

4 ‘‘(I) operational guidance and re5 quirements for a covered program at 

6 the discretion of the Secretary so as to 

7 provide a simplified application and 

8 evaluation process; and 

9 ‘‘(II) nonstatutory, regulatory 

10 rules or provisions to better reflect 

11 unique local circumstances and pur12 poses if the Secretary determines such 

13 adjustments are necessary to achieve 

14 the purposes of the covered program. 

15 ‘‘(ii) LIMITATION.—The Secretary shall 

16 not adjust the application of statutory re17 quirements for a covered program, includ18 ing requirements governing appeals, pay19 ment limits, and conservation compliance. 

20 ‘‘(iii) IRRIGATION.—In States where 

21 irrigation has not been used significantly 

22 for agricultural purposes, as determined by 

23 the Secretary, the Secretary shall not limit 

24 eligibility under section 1271B or this sec25 tion on the basis of prior irrigation history. 
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1 ‘‘(2) ALTERNATIVE FUNDING ARRANGEMENTS.— 

2 ‘‘(A) IN GENERAL.—Notwithstanding para3 graph (1)(A), for the purposes of providing as4 sistance for land described in subsection (a) and 

5 section 1271F, the Secretary may enter into al6 ternative funding arrangements with a 

7 multistate water resource agency or authority 

8 if— 

9 ‘‘(i) the Secretary determines that the 

10 goals and objectives of the program will be 

11 met by the alternative funding arrange12 ments; 

13 ‘‘(ii) the agency or authority certifies 

14 that the limitations established under this 

15 section on agreements with individual pro16 ducers will not be exceeded; and 

17 ‘‘(iii) all participating producers meet 

18 applicable payment eligibility provisions. 

19 ‘‘(B) CONDITIONS.—As a condition on re20 ceipt of funding under subparagraph (A), the 

21 multistate water resource agency or authority 

22 shall agree— 

23 ‘‘(i) to submit an annual independent 

24 audit to the Secretary that describes the use 

25 of funds under this paragraph; 
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1 ‘‘(ii) to provide any data necessary for 

2 the Secretary to issue a report on the use of 

3 funds under this paragraph; and 

4 ‘‘(iii) not to use any of the funds pro5 vided pursuant to subparagraph (A) for ad6 ministration or provide for administrative 

7 costs through contracts with another entity. 

8 ‘‘(C) LIMITATION.—The Secretary may 

9 enter into at least 10 but not more than 20 alter10 native funding arrangements under this para11 graph. 

12 ‘‘(c) PAYMENTS.— 

13 ‘‘(1) IN GENERAL.—In accordance with statutory 

14 requirements of the covered programs involved, the 

15 Secretary may make payments to a producer in an 

16 amount determined by the Secretary to be necessary 

17 to achieve the purposes of the program. 

18 ‘‘(2) PAYMENTS TO CERTAIN PRODUCERS.—The 

19 Secretary may provide payments for a period of 5 

20 years— 

21 ‘‘(A) to producers participating in a project 

22 that addresses water quantity concerns and in 

23 an amount sufficient to encourage conversion 

24 from irrigated to dryland farming; and 
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1 ‘‘(B) to producers participating in a project 

2 that addresses water quality concerns and in an 

3 amount sufficient to encourage adoption of con4 servation practices and systems that improve nu5 trient management. 

6 ‘‘(3) WAIVER AUTHORITY.—To assist in the im7 plementation of the program, the Secretary may 

8 waive the applicability of the limitation in section 

9 1001D(b)(2) of this Act for participating producers if 

10 the Secretary determines that the waiver is necessary 

11 to fulfill the objectives of the program. 

12 ‘‘SEC. 1271D. FUNDING. 

13 ‘‘(a) AVAILABILITY OF FUNDS.—The Secretary shall 

14 use $110,000,000 of the funds of the Commodity Credit Cor15 poration for each of fiscal years 2014 through 2018 to carry 

16 out the program established under this subtitle. 

17 ‘‘(b) DURATION OF AVAILABILITY.—Funds made 

18 available under subsection (a) shall remain available until 

19 expended. 

20 ‘‘(c) ADDITIONAL FUNDING AND ACRES.— 

21 ‘‘(1) IN GENERAL.—In addition to the funds 

22 made available under subsection (a), the Secretary 

23 shall reserve 8 percent of the funds and acres made 

24 available for a covered program for each of fiscal 

25 years 2014 through 2018 in order to ensure addi-
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1 tional resources are available to carry out this pro2 gram. 

3 ‘‘(2) UNUSED FUNDS AND ACRES.—Any funds or 

4 acres reserved under paragraph (1) for a fiscal year 

5 from a covered program that are not obligated under 

6 this program by April 1 of that fiscal year shall be 

7 returned for use under the covered program. 

8 ‘‘(d) ALLOCATION OF FUNDING.—Of the funds and 

9 acres made available for the program under subsections (a) 

10 and (c), the Secretary shall allocate— 

11 ‘‘(1) 25 percent of the funds and acres to projects 

12 based on a State competitive process administered by 

13 the State conservationist, with the advice of the State 

14 technical committee; 

15 ‘‘(2) 40 percent of the funds and acres to projects 

16 based on a national competitive process to be estab17 lished by the Secretary; and 

18 ‘‘(3) 35 percent of the funds and acres to projects 

19 for the critical conservation areas designated in sec20 tion 1271F. 

21 ‘‘(e) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

22 None of the funds made available under the program may 

23 be used to pay for the administrative expenses of partners. 
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1 ‘‘SEC. 1271E. ADMINISTRATION. 

2 ‘‘(a) DISCLOSURE.—In addition to the criteria used 

3 in evaluating applications as described in section 

4 1271B(d)(2), the Secretary shall make publicly available 

5 information on projects selected through the competitive 

6 process described in section 1271B(d)(1). 

7 ‘‘(b) REPORTING.—Not later than December 31, 2014, 

8 and for every 2 years thereafter, the Secretary shall submit 

9 to the Committee on Agriculture of the House of Representa10 tives and the Committee on Agriculture, Nutrition, and 

11 Forestry of the Senate a report on the status of projects 

12 funded under the program, including— 

13 ‘‘(1) the number and types of partners and pro14 ducers participating in the partnership agreements 

15 selected; 

16 ‘‘(2) the number of producers receiving assist17 ance; 

18 ‘‘(3) total funding committed to projects, includ19 ing Federal and non-Federal resources; and 

20 ‘‘(4) a description of how the funds under section 

21 1271C(b)(3) are being administered, including— 

22 ‘‘(A) any oversight mechanisms that the 

23 Secretary has implemented; 

24 ‘‘(B) the process through which the Sec25 retary is resolving appeals by program partici26 pants; and 
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1 ‘‘(C) the means by which the Secretary is 

2 tracking adherence to any applicable provisions 

3 for payment eligibility. 

4 ‘‘SEC. 1271F. CRITICAL CONSERVATION AREAS. 

5 ‘‘(a) IN GENERAL.—When administering the funding 

6 described in section 1271D(d)(3), the Secretary shall select 

7 applications for partnership agreements and producer con8 tracts within designated critical conservation areas. 

9 ‘‘(b) CRITICAL CONSERVATION AREA DESIGNA10 TIONS.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall des12 ignate up to 6 geographical areas as critical conserva13 tion areas based on the degree to which an area— 

14 ‘‘(A) includes multiple States with signifi15 cant agricultural production; 

16 ‘‘(B) is covered by an existing regional, 

17 State, binational, or multistate agreement or 

18 plan that has established objectives, goals and 

19 work plans and is adopted by a Federal, State, 

20 or regional authority; 

21 ‘‘(C) has water quality concerns, including 

22 concerns for reducing erosion, promoting sedi23 ment control, and addressing nutrient manage24 ment activities affecting large bodies of water of 

25 regional, national, or international significance; 
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1 ‘‘(D) has water quantity concerns, includ2 ing— 

3 ‘‘(i) concerns for groundwater, surface 

4 water, aquifer, or other water sources; or 

5 ‘‘(ii) a need to promote water retention 

6 and flood prevention; 

7 ‘‘(E) is vital habitat for migrating wildlife; 

8 or 

9 ‘‘(F) is subject to regulatory requirements 

10 that could reduce the economic scope of agricul11 tural operations within the area. 

12 ‘‘(2) EXPIRATION.—Critical conservation area 

13 designations under this section shall expire after 5 

14 years, subject to redesignation, except that the Sec15 retary may withdraw designation from an area if the 

16 Secretary finds the area no longer meets the condi17 tions described in paragraph (1). 

18 ‘‘(c) ADMINISTRATION.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the Secretary shall administer any part21 nership agreement or producer contract under this 

22 section in a manner that is consistent with the terms 

23 of the program. 

24 ‘‘(2) RELATIONSHIP TO EXISTING ACTIVITY.— 

25 The Secretary shall, to the maximum extent prac-
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1 ticable, ensure that eligible activities carried out in 

2 critical conservation areas designated under this sec3 tion complement and are consistent with other Fed4 eral and State programs and water quality and 

5 quantity strategies.’’. 

6 (b) EFFECTIVE DATE.—The amendment made by this 

7 section shall take effect on October 1, 2013. 

8 Subtitle F—Other Conservation 

9 Programs 

10 SEC. 2501. CONSERVATION OF PRIVATE GRAZING LAND. 

11 Section 1240M(e) of the Food Security Act of 1985 (16 

12 U.S.C. 3839bb(e)) is amended inserting ‘‘and $30,000,000 

13 for each of fiscal years 2014 through 2018’’ before the period 

14 at the end. 

15 SEC. 2502. GRASSROOTS SOURCE WATER PROTECTION PRO16 GRAM. 

17 Section 1240O(b) of the Food Security Act of 1985 (16 

18 U.S.C. 3839bb–2(b)) is amended by inserting ‘‘and 

19 $15,000,000 for each of fiscal years 2014 through 2018’’ be20 fore the period at the end. 

21 SEC. 2503. VOLUNTARY PUBLIC ACCESS AND HABITAT IN22 CENTIVE PROGRAM. 

23 (a) FUNDING.—Section 1240R(f)(1) of the Food Secu24 rity Act of 1985 (16 U.S.C. 3839bb–5(f)(1)) is amended— 
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1 (1) in the heading, by striking ‘‘FISCAL YEARS

2 2009 THROUGH 2012’’ and inserting ‘‘MANDATORY

3 FUNDING’’; and 

4 (2) by inserting ‘‘and $40,000,000 for the period 

5 of fiscal years 2014 through 2018’’ before the period 

6 at the end. 

7 (b) REPORT ON PROGRAM EFFECTIVENESS.—Not later 

8 than 2 years after the date of enactment of this Act, the 

9 Secretary of Agriculture shall submit to the Committee on 

10 Agriculture of the House of Representatives and the Com11 mittee on Agriculture, Nutrition, and Forestry of the Senate 

12 a report evaluating the effectiveness of the voluntary public 

13 access and habitat incentive program established by section 

14 1240R of the Food Security Act of 1985 (16 U.S.C. 3839bb– 

15 5), including— 

16 (1) identifying cooperating agencies; 

17 (2) identifying the number of land holdings and 

18 total acres enrolled by State; 

19 (3) evaluating the extent of improved access on 

20 eligible land, improved wildlife habitat, and related 

21 economic benefits; and 

22 (4) any other relevant information and data re23 lating to the program that would be helpful to such 

24 Committees. 
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1 (c) EFFECTIVE DATE.—The amendment made by this 

2 section shall take effect on October 1, 2013. 

3 SEC. 2504. AGRICULTURE CONSERVATION EXPERIENCED 

4 SERVICES PROGRAM. 

5 (a) FUNDING.—Section 1252 of the Food Security Act 

6 of 1985 (16 U.S.C. 3851) is amended by striking subsection 

7 (c) and inserting the following: 

8 ‘‘(c) FUNDING.— 

9 ‘‘(1) IN GENERAL.—The Secretary may carry out 

10 the ACES program using funds made available to 

11 carry out each program under this title. 

12 ‘‘(2) EXCLUSION.—Funds made available to 

13 carry out the conservation reserve program may not 

14 be used to carry out the ACES program.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall take effect on October 1, 2013. 

17 SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM. 

18 Section 14(h)(2)(E) of the Watershed Protection and 

19 Flood Prevention Act (16 U.S.C. 1012(h)(2)(E)) is amended 

20 by striking ‘‘2012’’ and inserting ‘‘2018’’. 

21 SEC. 2506. EMERGENCY WATERSHED PROTECTION PRO22 GRAM. 

23 Section 403 of the Agricultural Credit Act of 1978 (16 

24 U.S.C. 2203) is amended— 
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1 (1) by striking ‘‘SEC. 402.—The Secretary’’ and 

2 inserting the following: 

3 ‘‘SEC. 402. EMERGENCY MEASURES. 

4 ‘‘(a) IN GENERAL.—The Secretary’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(b) FLOODPLAIN EASEMENTS.— 

7 ‘‘(1) MODIFICATION AND TERMINATION.—The 

8 Secretary may modify or terminate a floodplain ease9 ment administered by the Secretary under this section 

10 if— 

11 ‘‘(A) the current owner agrees to the modi12 fication or termination; and 

13 ‘‘(B) the Secretary determines that the 

14 modification or termination— 

15 ‘‘(i) will address a compelling public 

16 need for which there is no practicable alter17 native; and 

18 ‘‘(ii) is in the public interest. 

19 ‘‘(2) CONSIDERATION.— 

20 ‘‘(A) TERMINATION.—As consideration for 

21 termination of an easement and associated 

22 agreements under paragraph (1), the Secretary 

23 shall enter into compensatory arrangements as 

24 determined to be appropriate by the Secretary. 
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1 ‘‘(B) MODIFICATION.—In the case of a 

2 modification under paragraph (1)— 

3 ‘‘(i) as a condition of the modification, 

4 the current owner shall enter into a com5 pensatory arrangement (as determined to be 

6 appropriate by the Secretary) to incur the 

7 costs of modification; and 

8 ‘‘(ii) the Secretary shall ensure that— 

9 ‘‘(I) the modification will not ad10 versely affect the floodplain functions 

11 and values for which the easement was 

12 acquired; 

13 ‘‘(II) any adverse impacts will be 

14 mitigated by enrollment and restora15 tion of other land that provides greater 

16 floodplain functions and values at no 

17 additional cost to the Federal Govern18 ment; and 

19 ‘‘(III) the modification will result 

20 in equal or greater environmental and 

21 economic values to the United States.’’. 

22 SEC. 2507. TERMINAL LAKES ASSISTANCE. 

23 Section 2507 of the Food, Security, and Rural Invest24 ment Act of 2002 (43 U.S.C. 2211 note; Public Law 107– 

25 171) is amended to read as follows: 
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1 ‘‘SEC. 2507. TERMINAL LAKES ASSISTANCE. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) ELIGIBLE LAND.—The term ‘eligible land’ 

4 means privately owned agricultural land (including 

5 land in which a State has a property interest as a 

6 result of state water law)— 

7 ‘‘(A) that a landowner voluntarily agrees to 

8 sell to a State; and 

9 ‘‘(B) which— 

10 ‘‘(i)(I) is ineligible for enrollment as a 

11 wetland reserve easement established under 

12 the Agricultural Conservation Easement 

13 Program under subtitle H of the Food Secu14 rity Act of 1985; 

15 ‘‘(II) is flooded to— 

16 ‘‘(aa) an average depth of at least 

17 6.5 feet; or 

18 ‘‘(bb) a level below which the 

19 State determines the management of 

20 the water level is beyond the control of 

21 the State or landowner; or 

22 ‘‘(III) is inaccessible for agricultural 

23 use due to the flooding of adjoining prop24 erty (such as islands of agricultural land 

25 created by flooding); 
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1 ‘‘(ii) is located within a watershed 

2 with water rights available for lease or pur3 chase; and 

4 ‘‘(iii) has been used during at least 5 

5 of the immediately preceding 30 years— 

6 ‘‘(I) to produce crops or hay; or 

7 ‘‘(II) as livestock pasture or graz8 ing. 

9 ‘‘(2) PROGRAM.—The term ‘program’ means the 

10 voluntary land purchase program established under 

11 this section. 

12 ‘‘(3) TERMINAL LAKE.—The term ‘terminal lake’ 

13 means a lake and its associated riparian and water14 shed resources that is— 

15 ‘‘(A) considered flooded because there is no 

16 natural outlet for water accumulating in the lake 

17 or the associated riparian area such that the wa18 tershed and surrounding land is consistently 

19 flooded; or 

20 ‘‘(B) considered terminal because it has no 

21 natural outlet and is at risk due to a history of 

22 consistent Federal assistance to address critical 

23 resource conditions, including insufficient water 

24 available to meet the needs of the lake, general 

25 uses, and water rights. 
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1 ‘‘(b) ASSISTANCE.—The Secretary shall— 

2 ‘‘(1) provide grants under subsection (c) for the 

3 purchase of eligible land impacted by a terminal lake 

4 described in subsection (a)(3)(A); and 

5 ‘‘(2) provide funds to the Secretary of the Inte6 rior pursuant to subsection (e)(2) with assistance in 

7 accordance with subsection (d) for terminal lakes de8 scribed in subsection (a)(3)(B). 

9 ‘‘(c) LAND PURCHASE GRANTS.— 

10 ‘‘(1) IN GENERAL.—Using funds provided under 

11 subsection (e)(1), the Secretary shall make available 

12 land purchase grants to States for the purchase of eli13 gible land in accordance with this subsection. 

14 ‘‘(2) IMPLEMENTATION.— 

15 ‘‘(A) AMOUNT.—A land purchase grant 

16 shall be in an amount not to exceed the lesser 

17 of— 

18 ‘‘(i) 50 percent of the total purchase 

19 price per acre of the eligible land; or 

20 ‘‘(ii)(I) in the case of eligible land that 

21 was used to produce crops or hay, $400 per 

22 acre; and 

23 ‘‘(II) in the case of eligible land that 

24 was pasture or grazing land, $200 per acre. 
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1 ‘‘(B) DETERMINATION OF PURCHASE

2 PRICE.—A State purchasing eligible land with a 

3 land purchase grant shall ensure, to the max4 imum extent practicable, that the purchase price 

5 of such land reflects the value, if any, of other 

6 encumbrances on the eligible land to be pur7 chased, including easements and mineral rights. 

8 ‘‘(C) COST-SHARE REQUIRED.—To be eligi9 ble to receive a land purchase grant, a State 

10 shall provide matching non-Federal funds in an 

11 amount equal to 50 percent of the amount de12 scribed in subparagraph (A), including addi13 tional non-Federal funds. 

14 ‘‘(D) CONDITIONS.—To receive a land pur15 chase grant, a State shall agree— 

16 ‘‘(i) to ensure that any eligible land 

17 purchased is— 

18 ‘‘(I) conveyed in fee simple to the 

19 State; and 

20 ‘‘(II) free from mortgages or other 

21 liens at the time title is transferred; 

22 ‘‘(ii) to maintain ownership of the eli23 gible land in perpetuity; 

24 ‘‘(iii) to pay (from funds other than 

25 grant dollars awarded) any costs associated 
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1 with the purchase of eligible land under this 

2 section, including surveys and legal fees; 

3 and 

4 ‘‘(iv) to keep eligible land in a con5 serving use, as defined by the Secretary. 

6 ‘‘(E) LOSS OF FEDERAL BENEFITS.—Eligi7 ble land purchased with a grant under this sec8 tion shall lose eligibility for any benefits under 

9 other Federal programs, including— 

10 ‘‘(i) benefits under title XII of the Food 

11 Security Act of 1985 (16 U.S.C. 3801 et 

12 seq.); 

13 ‘‘(ii) benefits under the Federal Crop 

14 Insurance Act (7 U.S.C. 1501 et seq.); and 

15 ‘‘(iii) covered benefits described in sec16 tion 1001D(b) of the Food Security Act of 

17 1985 (7 U.S.C. 1308–3a). 

18 ‘‘(F) PROHIBITION.—Any Federal rights or 

19 benefits associated with eligible land prior to 

20 purchase by a State may not be transferred to 

21 any other land or person in anticipation of or 

22 as a result of such purchase. 

23 ‘‘(d) WATER ASSISTANCE.— 

24 ‘‘(1) IN GENERAL.—The Secretary of the Inte25 rior, acting through the Commissioner of Reclama-
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1 tion, may use the funds described in subsection (e)(2) 

2 to administer and provide financial assistance to 

3 carry out this subsection to provide water and assist4 ance to a terminal lake described in subsection 

5 (a)(3)(B) through willing sellers or willing partici6 pants only— 

7 ‘‘(A) to lease water; 

8 ‘‘(B) to purchase land, water appurtenant 

9 to the land, and related interests; and 

10 ‘‘(C) to carry out research, support and con11 servation activities for associated fish, wildlife, 

12 plant, and habitat resources.’’ 

13 ‘‘(2) EXCLUSIONS.—The Secretary of the Interior 

14 may not use this subsection to deliver assistance to 

15 the Great Salt Lake in Utah, lakes that are consid16 ered dry lakes, or other lakes that do not meet the 

17 purposes of this section, as determined by the Sec18 retary of the Interior. 

19 ‘‘(3) TRANSITIONAL PROVISION.— 

20 ‘‘(A) IN GENERAL.—Notwithstanding any 

21 other provision of this section, any funds made 

22 available before the date of enactment of the Ag23 riculture Reform, Food, and Jobs Act of 2013 

24 under a provision of law described in subpara25 graph (B) shall remain available using the pro-
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1 visions of law (including regulations) in effect on 

2 the day before the date of enactment of that Act. 

3 ‘‘(B) DESCRIBED LAWS.—The provisions of 

4 law described in this section are— 

5 ‘‘(i) section 2507 of the Farm Security 

6 and Rural Investment Act of 2002 (43 

7 U.S.C. 2211 note; Public Law 107–171) (as 

8 in effect on the day before the date of enact9 ment of the Agriculture Reform, Food, and 

10 Jobs Act of 2013); 

11 ‘‘(ii) section 207 of the Energy and 

12 Water Development Appropriations Act, 

13 2003 (Public Law 108–7; 117 Stat. 146); 

14 ‘‘(iii) section 208 of the Energy and 

15 Water Development Appropriations Act, 

16 2006 (Public Law 109–103; 119 Stat. 2268, 

17 123 Stat. 2856); and 

18 ‘‘(iv) section 208 of the Energy and 

19 Water Development and Related Agencies 

20 Appropriations Act, 2010 (Public Law 111– 

21 85; 123 Stat. 2858, 123 Stat. 2967, 125 

22 Stat. 867). 

23 ‘‘(e) FUNDING.— 

24 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

25 There is authorized to be appropriated to the Sec-
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1 retary to carry out subsection (c) $25,000,000, to re2 main available until expended. 

3 ‘‘(2) COMMODITY CREDIT CORPORATION.—As 

4 soon as practicable after the date of enactment of the 

5 Agriculture Reform, Food, and Jobs Act of 2013, the 

6 Secretary shall transfer to the Bureau of Reclamation 

7 Water and Related Resources Account $150,000,000 

8 from the funds of the Commodity Credit Corporation 

9 to carry out subsection (d), to remain available until 

10 expended.’’. 

11 SEC. 2508. STUDY OF POTENTIAL IMPROVEMENTS TO THE 

12 WETLAND MITIGATION PROCESS. 

13 (a) IN GENERAL.—Not later than 180 after the date 

14 of enactment of this Act, the Secretary shall carry out a 

15 study— 

16 (1) to evaluate the use of wetland mitigation 

17 procedures under this title and the amendments made 

18 by this title; 

19 (2) to determine the impact to wildlife habitat of 

20 relaxing the acre-for-acre requirement for wetland 

21 mitigation plans that result in new wetland that pos22 sesses a function and value greater than the wetland 

23 that is replaced; and 

24 (3) to provide legislative recommendations for 

25 how wetland mitigation procedures could be improved 
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1 to better enable agricultural producers to use wetland 

2 mitigation in a manner that— 

3 (A) benefits wildlife habitat; and 

4 (B) allows producers greater access to the 

5 wetland mitigation process. 

6 (b) REPORT.—Not later than 2 years after the date 

7 of enactment of this Act, the Secretary shall— 

8 (1) submit to Congress a report that contains— 

9 (A) the findings of the study; and 

10 (B) any legislative recommendations under 

11 subsection (a)(3); and 

12 (2) publish the findings of the study on a public 

13 website and in the Federal Register. 

14 SEC. 2509. SOIL AND WATER RESOURCE CONSERVATION. 

15 (a) CONGRESSIONAL POLICY AND DECLARATION OF

16 PURPOSE.—Section 4 of the Soil and Water Resources Con17 servation Act of 1977 (16 U.S.C. 2003) is amended— 

18 (1) in subsection (b), by inserting ‘‘and tribal’’ 

19 after ‘‘State’’ each place it appears; and 

20 (2) in subsection (c)(2), by inserting ‘‘, tribal,’’ 

21 after ‘‘State’’. 

22 (b) CONTINUING APPRAISAL OF SOIL, WATER, AND

23 RELATED RESOURCES.—Section 5 of the Soil and Water 

24 Resources Conservation Act of 1977 (16 U.S.C. 2004) is 

25 amended— 
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1 (1) in subsection (a)(4), by striking ‘‘and State’’ 

2 and inserting ‘‘, State, and tribal’’; 

3 (2) in subsection (b), by inserting ‘‘, tribal’’ after 

4 ‘‘State’’ each place it appears; and 

5 (3) in subsection (c)— 

6 (A) by striking ‘‘State soil’’ and inserting 

7 ‘‘State and tribal soil’’; and 

8 (B) by striking ‘‘local’’ and inserting ‘‘local, 

9 tribal,’’. 

10 (c) SOIL AND WATER CONSERVATION PROGRAM.—Sec11 tion 6(a) of the Soil and Water Resources Conservation Act 

12 of 1977 (16 U.S.C. 2005(a)) is amended— 

13 (1) by inserting ‘‘, tribal’’ after ‘‘State’’ each 

14 place it appears; and 

15 (2) by inserting ‘‘, tribal,’’ after ‘‘private’’. 

16 (d) UTILIZATION OF AVAILABLE INFORMATION AND

17 DATA.—Section 9 of the Soil and Water Resources Con18 servation Act of 1977 (16 U.S.C. 2008) is amended by in19 serting ‘‘, tribal’’ after ‘‘State’’. 

20 Subtitle G—Funding and 

21 Administration 

22 SEC. 2601. FUNDING. 

23 (a) IN GENERAL.—Section 1241 of the Food Security 

24 Act of 1985 (16 U.S.C. 3841) is amended by striking sub25 section (a) and inserting the following: 
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1 ‘‘(a) ANNUAL FUNDING.—For each of fiscal years 2014 

2 through 2018, the Secretary shall use the funds, facilities, 

3 and authorities of the Commodity Credit Corporation to 

4 carry out the following programs under this title (including 

5 the provision of technical assistance): 

6 ‘‘(1) The conservation reserve program under 

7 subchapter B of chapter 1 of subtitle D, including, to 

8 the maximum extent practicable— 

9 ‘‘(A) $10,000,000 for the period of fiscal 

10 years 2014 through 2018 to provide payments 

11 under paragraph (3) of section 1234(b) in con12 nection with thinning activities conducted on 

13 land described in subparagraph (B)(iii) of that 

14 paragraph; and 

15 ‘‘(B) $50,000,000 for the period of fiscal 

16 years 2014 through 2018 to carry out section 

17 1235(f) to facilitate the transfer of land subject 

18 to contracts from retired or retiring owners and 

19 operators to beginning farmers or ranchers and 

20 socially disadvantaged farmers or ranchers. 

21 ‘‘(2) The Agricultural Conservation Easement 

22 Program under subtitle H using to the maximum ex23 tent practicable— 

24 ‘‘(A) $450,000,000 for fiscal year 2014; 

25 ‘‘(B) $475,000,000 for fiscal year 2015; 
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1 ‘‘(C) $500,000,000 for fiscal year 2016; 

2 ‘‘(D) $525,000,000 for fiscal year 2017; and 

3 ‘‘(E) $250,000,000 for fiscal year 2018. 

4 ‘‘(3) The conservation security program under 

5 subchapter A of chapter 2 of subtitle D, using such 

6 sums as are necessary to administer contracts entered 

7 into before September 30, 2008. 

8 ‘‘(4) The conservation stewardship program 

9 under subchapter B of chapter 2 of subtitle D. 

10 ‘‘(5) The environmental quality incentives pro11 gram under chapter 4 of subtitle D, using, to the 

12 maximum extent practicable— 

13 ‘‘(A) $1,500,000,000 for fiscal year 2014; 

14 ‘‘(B) $1,600,000,000 for fiscal year 2015; 

15 and 

16 ‘‘(C) $1,650,000,000 for each of fiscal years 

17 2016 through 2018.’’. 

18 (b) GUARANTEED AVAILABILITY OF FUNDS.—Section 

19 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) 

20 is amended— 

21 (1) by redesignating subsections (b) through (h) 

22 as subsections (c) through (i), respectively; 

23 (2) by inserting after subsection (a) the fol24 lowing: 
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1 ‘‘(b) AVAILABILITY OF FUNDS.—Amounts made avail2 able by subsection (a) shall be used by the Secretary to carry 

3 out the programs specified in such subsection for fiscal 

4 years 2014 through 2018 and shall remain available until 

5 expended. Amounts made available for the programs speci6 fied in such subsection during a fiscal year through modi7 fications, cancellations, terminations, and other related ad8 ministrative actions and not obligated in that fiscal year 

9 shall remain available for obligation during subsequent fis10 cal years, but shall reduce the amount of additional funds 

11 made available in the subsequent fiscal year by an amount 

12 equal to the amount remaining unobligated.’’; and 

13 (3) in subsection (d) (as redesignated by para14 graph (1)), by striking ‘‘subsection (b)’’ and inserting 

15 ‘‘subsection (c)’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall take effect on October 1, 2013. 

18 SEC. 2602. TECHNICAL ASSISTANCE. 

19 Section 1241 of the Food Security Act of 1985 (16 

20 U.S.C. 3841) is amended by striking subsection (c) (as re21 designated by section 2601(b)(1)) and inserting the fol22 lowing: 

23 ‘‘(c) TECHNICAL ASSISTANCE.— 
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1 ‘‘(1) AVAILABILITY.—Commodity Credit Cor2 poration funds made available for a fiscal year for 

3 each of the programs specified in subsection (a)— 

4 ‘‘(A) shall be available for the provision of 

5 technical assistance for the programs for which 

6 funds are made available as necessary to imple7 ment the programs effectively; 

8 ‘‘(B) except for technical assistance for the 

9 conservation reserve program under subchapter 

10 B of chapter 1 of subtitle D, shall be apportioned 

11 for the provision of technical assistance in the 

12 amount determined by the Secretary, at the sole 

13 discretion of the Secretary; and 

14 ‘‘(C) shall not be available for the provision 

15 of technical assistance for conservation programs 

16 specified in subsection (a) other than the pro17 gram for which the funds were made available. 

18 ‘‘(2) PRIORITY.— 

19 ‘‘(A) IN GENERAL.—In the delivery of tech20 nical assistance under the Soil Conservation and 

21 Domestic Allotment Act (16 U.S.C. 590a et seq.), 

22 the Secretary shall give priority to producers 

23 who request technical assistance from the Sec24 retary in order to comply for the first time with 

25 the requirements of subtitle B and subtitle C of 
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1 this title as a result of the amendments made by 

2 section 2609 of the Agriculture Reform, Food, 

3 and Jobs Act of 2013. 

4 ‘‘(B) REPORT.—Not later than 270 days 

5 after the date of enactment of the Agriculture Re6 form, Food, and Jobs Act of 2013, the Secretary 

7 shall submit to the Committee on Agriculture of 

8 the House of Representatives and the Committee 

9 on Agriculture, Nutrition, and Forestry of the 

10 Senate a report regarding the extent to which the 

11 conservation compliance requirements contained 

12 in the amendments made by section 2609 of the 

13 Agriculture Reform, Food, and Jobs Act of 2013 

14 apply to and impact specialty crop growers, in15 cluding national analysis and surveys to deter16 mine the extent of specialty crop acreage includes 

17 highly erodible land and wetlands. 

18 ‘‘(3) REPORT.—Not later than December 31, 

19 2013, the Secretary shall submit (and update as nec20 essary in subsequent years) to the Committee on Agri21 culture of the House of Representatives and the Com22 mittee on Agriculture, Nutrition, and Forestry of the 

23 Senate a report— 

24 ‘‘(A) detailing the amount of technical as25 sistance funds requested and apportioned in each 
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1 program specified in subsection (a) during the 

2 preceding fiscal year; and 

3 ‘‘(B) any other data relating to this provi4 sion that would be helpful to such Committees. 

5 ‘‘(4) COMPLIANCE REPORT.—Not later than No6 vember 1 of each year, the Secretary shall submit to 

7 the Committee on Agriculture of the House of Rep8 resentatives and the Committee on Agriculture, Nutri9 tion, and Forestry of the Senate a report that in10 cludes— 

11 ‘‘(A) a description of the extent to which the 

12 requests for highly erodible land conservation 

13 and wetland compliance determinations are 

14 being addressed in a timely manner; 

15 ‘‘(B) the total number of requests completed 

16 in the previous fiscal year; 

17 ‘‘(C) the incomplete determinations on 

18 record; and 

19 ‘‘(D) the number of requests that are still 

20 outstanding more than 1 year since the date on 

21 which the requests were received from the pro22 ducer.’’. 

23 SEC. 2603. REGIONAL EQUITY. 

24 Section 1241 of the Food Security Act of 1985 (16 

25 U.S.C. 3841) is amended by striking subsection (e) (as re-
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1 designated by section 2601(b)(1)) and inserting the fol2 lowing: 

3 ‘‘(e) REGIONAL EQUITY.— 

4 ‘‘(1) EQUITABLE DISTRIBUTION.—When deter5 mining funding allocations each fiscal year, the Sec6 retary shall, after considering available funding and 

7 program demand in each State, provide a distribu8 tion of funds for conservation programs under subtitle 

9 D (excluding the conservation reserve program under 

10 subchapter B of chapter 1), subtitle H, and subtitle 

11 I to ensure equitable program participation propor12 tional to historical funding allocations and usage by 

13 all States. 

14 ‘‘(2) MINIMUM PERCENTAGE.—In determining 

15 the specific funding allocations under paragraph (1), 

16 the Secretary shall— 

17 ‘‘(A) ensure that during the first quarter of 

18 each fiscal year each State has the opportunity 

19 to establish that the State can use an aggregate 

20 allocation amount of at least 0.6 percent of the 

21 funds made available for those conservation pro22 grams; and 

23 ‘‘(B) for each State that can so establish, 

24 provide an aggregate amount of at least 0.6 per-
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1 cent of the funds made available for those con2 servation programs.’’. 

3 SEC. 2604. RESERVATION OF FUNDS TO PROVIDE ASSIST4 ANCE TO CERTAIN FARMERS OR RANCHERS 

5 FOR CONSERVATION ACCESS. 

6 Subsection (h) of section 1241 of the Food Security Act 

7 of 1985 (16 U.S.C. 3841) (as redesignated by section 

8 2601(b)(1)) is amended— 

9 (1) in paragraph (1) by striking ‘‘2012’’ and in10 serting ‘‘2018’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(4) PREFERENCE.—In providing assistance 

13 under paragraph (1), the Secretary shall give pref14 erence to a veteran farmer or rancher (as defined in 

15 section 2501(e) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 2279(e))) that 

17 qualifies under subparagraph (A) or (B) of para18 graph (1).’’. 

19 SEC. 2605. ANNUAL REPORT ON PROGRAM ENROLLMENTS 

20 AND ASSISTANCE. 

21 Subsection (i) of section 1241 of the Food Security Act 

22 of 1985 (16 U.S.C. 3841) (as redesignated by section 

23 2601(b)(1)) is amended— 
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1 (1) in paragraph (1), by striking ‘‘wetlands re2 serve program’’ and inserting ‘‘agricultural conserva3 tion easement program’’; 

4 (2) by striking paragraphs (2) and (3) and re5 designating paragraphs (4), (5), and (6) as para6 graphs (2), (3), and (4), respectively; 

7 (3) in paragraph (3) (as so redesignated)— 

8 (A) by striking ‘‘agricultural water en9 hancement program’’ and inserting ‘‘regional 

10 conservation partnership program’’; and 

11 (B) by striking ‘‘section 1240I(g)’’ and in12 serting ‘‘section 1271C(c)(3)’’; and 

13 (4) by adding at the end the following: 

14 ‘‘(5) Payments made under the conservation 

15 stewardship program. 

16 ‘‘(6) Waivers granted by the Secretary under sec17 tion 1265B(b)(2)(C).’’. 

18 SEC. 2606. ADMINISTRATIVE REQUIREMENTS FOR CON19 SERVATION PROGRAMS. 

20 Section 1244 of the Food Security Act of 1985 (16 

21 U.S.C. 3844) is amended— 

22 (1) in subsection (a)(2), by adding at the end the 

23 following: 

24 ‘‘(E) Veteran farmers or ranchers (as de25 fined in section 2501(e) of the Food, Agriculture, 
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1 Conservation, and Trade Act of 1990 (7 U.S.C. 

2 2279(e))).’’; 

3 (2) in subsection (d), by inserting ‘‘, H, and I’’ 

4 before the period at the end; 

5 (3) in subsection (f)— 

6 (A) in paragraph (1)(B), by striking ‘‘coun7 try’’ and inserting ‘‘county’’; 

8 (B) in paragraph (3), by striking ‘‘sub9 section (c)(2)(B) or (f)(4)’’ and inserting ‘‘sub10 section (c)(2)(A)(ii) or (f)(2)’’; and 

11 (4) in subsection (h)(2), by inserting ‘‘including, 

12 to the extent practicable, practices that maximize ben13 efits for honey bees’’ after ‘‘pollinators’’; and 

14 (5) by adding at the end the following: 

15 ‘‘(j) IMPROVED ADMINISTRATIVE EFFICIENCY AND EF16 FECTIVENESS.—In administrating a conservation program 

17 under this title, the Secretary shall, to the maximum extent 

18 practicable— 

19 ‘‘(1) seek to reduce administrative burdens and 

20 costs to producers by streamlining conservation plan21 ning and program resources; and 

22 ‘‘(2) take advantage of new technologies to en23 hance efficiency and effectiveness. 

24 ‘‘(k) RELATION TO OTHER PAYMENTS.—Any payment 

25 received by an owner or operator under this title, including 
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1 an easement payment or rental payment, shall be in addi2 tion to, and not affect, the total amount of payments that 

3 the owner or operator is otherwise eligible to receive under 

4 any of the following: 

5 ‘‘(1) This Act. 

6 ‘‘(2) The Agricultural Act of 1949 (7 U.S.C. 

7 1421 et seq.). 

8 ‘‘(3) The Agriculture Reform, Food, and Jobs Act 

9 of 2013. 

10 ‘‘(4) Any law that succeeds a law specified in 

11 paragraph (1), (2), or (3). 

12 ‘‘(l) FUNDING FOR INDIAN TRIBES.—In carrying out 

13 the conservation stewardship program under subchapter B 

14 of chapter 2 of subtitle D and the environmental quality 

15 incentives program under chapter 4 of subtitle D, the Sec16 retary may enter into alternative funding arrangements 

17 with Indian tribes if the Secretary determines that the goals 

18 and objectives of the programs will be met by such arrange19 ments, and that statutory limitations regarding contracts 

20 with individual producers will not be exceeded by any Trib21 al member.’’. 

22 SEC. 2607. RULEMAKING AUTHORITY. 

23 Subtitle E of title XII of the Food Security Act of 1985 

24 (16 U.S.C. 3841 et seq.) is amended by adding at the end 

25 the following: 
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1 ‘‘SEC. 1246. REGULATIONS. 

2 ‘‘(a) IN GENERAL.—The Secretary shall promulgate 

3 such regulations as are necessary to implement programs 

4 under this title, including such regulations as the Secretary 

5 determines to be necessary to ensure a fair and reasonable 

6 application of the limitations established under section 

7 1244(f). 

8 ‘‘(b) RULEMAKING PROCEDURE.—The promulgation of 

9 regulations and administration of programs under this 

10 title— 

11 ‘‘(1) shall be carried out without regard to— 

12 ‘‘(A) the Statement of Policy of the Sec13 retary effective July 24, 1971 (36 Fed. Reg. 

14 13804), relating to notices of proposed rule15 making and public participation in rulemaking; 

16 and 

17 ‘‘(B) chapter 35 of title 44, United States 

18 Code (commonly known as the Paperwork Re19 duction Act); and 

20 ‘‘(2) shall be made as an interim rule effective 

21 on publication with an opportunity for notice and 

22 comment. 

23 ‘‘(c) CONGRESSIONAL REVIEW OF AGENCY RULE24 MAKING.—In promulgating regulations under this section, 

25 the Secretary shall use the authority provided under section 

26 808 of title 5, United States Code.’’. 
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1 SEC. 2608. STANDARDS FOR STATE TECHNICAL COMMIT2 TEES. 

3 Section 1261(b) of the Food Security Act of 1985 (16 

4 U.S.C. 3861(b)) is amended by striking ‘‘Not later than 180 

5 days after the date of enactment of the Food, Conservation, 

6 and Energy Act of 2008, the Secretary shall develop’’ and 

7 inserting ‘‘The Secretary shall review and update as nec8 essary’’. 

9 SEC. 2609. HIGHLY ERODIBLE LAND AND WETLAND CON10 SERVATION FOR CROP INSURANCE. 

11 (a) HIGHLY ERODIBLE LAND PROGRAM INELIGI12 BILITY.— 

13 (1) IN GENERAL.—Section 1211(a)(1) of the 

14 Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) is 

15 amended— 

16 (A) in subparagraph (C), by striking ‘‘or’’ 

17 at the end; 

18 (B) in subparagraph (D), by adding ‘‘or’’ 

19 at the end; and 

20 (C) by adding at the end the following: 

21 ‘‘(E) any portion of premium paid by the 

22 Federal Crop Insurance Corporation for a plan 

23 or policy of insurance under the Federal Crop 

24 Insurance Act (7 U.S.C. 1501 et seq.), on the 

25 condition that if a person is determined to have 

26 committed a violation under this subsection dur-
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1 ing a crop year, ineligibility under this subpara2 graph shall— 

3 ‘‘(i) only apply to reinsurance years 

4 subsequent to the date of final determina5 tion of a violation, including all adminis6 trative appeals; and 

7 ‘‘(ii) not apply to the existing reinsur8 ance year or any reinsurance year prior to 

9 the date of final determination.’’. 

10 (2) EXEMPTIONS.—Section 1212(a)(2) of the 

11 Food Security Act of 1985 (16 U.S.C. 3812(a)(2)) is 

12 amended— 

13 (A) in the first sentence, by striking ‘‘(2) 

14 If,’’ and inserting the following: 

15 ‘‘(2) ELIGIBILITY BASED ON COMPLIANCE WITH

16 CONSERVATION PLAN.— 

17 ‘‘(A) IN GENERAL.—If,’’; 

18 (B) in the second sentence, by striking ‘‘In 

19 carrying’’ and inserting the following: 

20 ‘‘(B) MINIMIZATION OF DOCUMENTATION.— 

21 In carrying’’; and 

22 (C) by adding at the end the following: 

23 ‘‘(C) CROP INSURANCE.—Notwithstanding 

24 section 1211(a)— 
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1 ‘‘(i) in the case of a person that is sub2 ject to section 1211 for the first time after 

3 May 1, 2013, due to the amendment made 

4 by section 2609(a) of the Agriculture Re5 form, Food, and Jobs Act of 2013, any per6 son who produces an agricultural com7 modity on the land that is the basis of the 

8 payments described in section 

9 1211(a)(1)(E) shall have 5 reinsurance 

10 years after the date on which such pay11 ments become subject to section 1211 to de12 velop and comply with an approved con13 servation plan so as to maintain eligibility 

14 for such payments; and 

15 ‘‘(ii) in the case of a person that the 

16 Secretary determines would have been in 

17 violation of section 1211(a) if the person 

18 had continued participation in the pro19 grams requiring compliance at any time 

20 after the date of enactment of the Food, 

21 Conservation, and Energy Act of 2008 (7 

22 U.S.C. 8701 et seq.) and is currently in vio23 lation of section 1211(a), the person shall 

24 have 2 reinsurance years after the date on 

25 which the payments described in section 
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1 1211(a)(1)(E) become subject to section 

2 1211 to develop and comply with an ap3 proved conservation plan, as determined by 

4 the Secretary, so as to maintain eligibility 

5 for such payments.’’. 

6 (b) WETLAND CONSERVATION PROGRAM INELIGI7 BILITY.—Section 1221 of the Food Security Act of 1985 (16 

8 U.S.C. 3821) is amended— 

9 (1) in subsection (b), by adding at the end the 

10 following: 

11 ‘‘(4) CROP INSURANCE.— 

12 ‘‘(A) IN GENERAL.—Except as provided in 

13 this paragraph, a person subject to a final deter14 mination, including all administrative appeals, 

15 of a violation of subsection (c) shall have 1 rein16 surance year to initiate a conservation plan to 

17 remedy the violation, as determined by the Sec18 retary, before becoming ineligible under that sub19 section in the following reinsurance year to re20 ceive any payment of any portion of premium 

21 paid by the Federal Crop Insurance Corporation 

22 for a plan or policy of insurance under the Fed23 eral Crop Insurance Act (7 U.S.C. 1501 et seq.). 

24 ‘‘(B) APPLICABILITY.—In the case of a per25 son that is subject to this subsection or subsection 
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1 (d) for the first time due to the amendment made 

2 by section 2609(b) of the Agriculture Reform, 

3 Food, and Jobs Act of 2013, the person shall 

4 have 2 reinsurance years after the date of final 

5 determination, including all administrative ap6 peals, to take such steps as the Secretary deter7 mines appropriate to remedy or mitigate the vio8 lation in accordance with subsection (c). 

9 ‘‘(C) GOOD FAITH.—If the Secretary deter10 mines that a person subject to a final determina11 tion, including all administrative appeals, of a 

12 violation of subsection (c) acted in good faith 

13 and without intent to violate this section as de14 scribed in section 1222(h), the Secretary shall 

15 give the person 1 reinsurance year to begin miti16 gation, restoration, or such other steps as are de17 termined necessary by the Secretary. 

18 ‘‘(D) TENANT RELIEF.— 

19 ‘‘(i) IN GENERAL.—If a tenant is de20 termined to be ineligible for payments and 

21 other benefits under this section, the Sec22 retary may limit the ineligibility only to 

23 the farm that is the basis for the ineligi24 bility determination if the tenant has estab-
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1 lished, to the satisfaction of the Secretary 

2 that— 

3 ‘‘(I) the tenant has made a good 

4 faith effort to meet the requirements of 

5 this section, including enlisting the as6 sistance of the Secretary to obtain a 

7 reasonable conservation plan for res8 toration or mitigation for the farm; 

9 ‘‘(II) the landlord on the farm re10 fuses to comply with the plan on the 

11 farm; and 

12 ‘‘(III) the Secretary determines 

13 that the lack of compliance is not a 

14 part of a scheme or device to avoid the 

15 compliance. 

16 ‘‘(ii) REPORT.—The Secretary shall 

17 provide an annual report to the Committee 

18 on Agriculture of the House of Representa19 tives and the Committee on Agriculture, 

20 Nutrition, and Forestry of the Senate con21 cerning the ineligibility determinations lim22 ited during the previous 12-month period 

23 under this subparagraph. 

24 ‘‘(E) CERTIFICATION.— 
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1 ‘‘(i) IN GENERAL.—Beginning with the 

2 first full reinsurance year immediately fol3 lowing the date of enactment of this para4 graph, all persons seeking eligibility for the 

5 payment of a portion of the premium paid 

6 by the Federal Crop Insurance Corporation 

7 for a plan or policy of insurance under the 

8 Federal Crop Insurance Act (7 U.S.C. 1501 

9 et seq.) shall provide certification of compli10 ance with this section as determined by the 

11 Secretary. 

12 ‘‘(ii) TIMELY EVALUATION.—The Sec13 retary shall evaluate the certification in a 

14 timely manner and— 

15 ‘‘(I) a person who has properly 

16 complied with certification shall be 

17 held harmless with regard to eligibility 

18 during the period of evaluation; and 

19 ‘‘(II) if the Secretary fails to 

20 evaluate the certification in a timely 

21 manner and the person is subsequently 

22 found to be in violation of subsection 

23 (c), ineligibility shall not apply to the 

24 person for that violation. 

25 ‘‘(iii) EQUITABLE CONTRIBUTION.— 
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1 ‘‘(I) IN GENERAL.—If a person 

2 fails to notify the Secretary as required 

3 and is subsequently found in violation 

4 of subsection (c), the Secretary shall 

5 determine the amount of an equitable 

6 contribution to conservation in accord7 ance with section 1241(f) by the person 

8 for the violation. 

9 ‘‘(II) LIMITATION.—The contribu10 tion shall not exceed the total of the 

11 portion of premium paid by the Fed12 eral Crop Insurance Corporation for a 

13 plan or policy of insurance for all 

14 years the person is determined to have 

15 been in violation subsequent to the date 

16 on which certification was first re17 quired under this subparagraph.’’; 

18 (2) by redesignating subsections (c), (d), and (e) 

19 as subsections (d), (e), and (f), respectively; and 

20 (3) by inserting after subsection (b) the fol21 lowing: 

22 ‘‘(c) INELIGIBILITY FOR CROP INSURANCE PREMIUM

23 ASSISTANCE.— 

24 ‘‘(1) IN GENERAL.—If a person is determined to 

25 have committed a violation under subsection (a) or 
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1 (d) during a crop year, the person shall be ineligible 

2 to receive any payment of any portion of premium 

3 paid by the Federal Crop Insurance Corporation for 

4 a plan or policy of insurance under the Federal Crop 

5 Insurance Act (7 U.S.C. 1501 et seq.). 

6 ‘‘(2) APPLICABILITY.—Ineligibility under this 

7 subsection shall— 

8 ‘‘(A) only apply to reinsurance years subse9 quent to the date of final determination of a vio10 lation, including all administrative appeals; and 

11 ‘‘(B) not apply to— 

12 ‘‘(i) the existing reinsurance year; or 

13 ‘‘(ii) any reinsurance year prior to the 

14 date of final determination. 

15 ‘‘(3) DATE OF CONVERSION.—Notwithstanding 

16 subsection (d), ineligibility for crop insurance pre17 mium assistance shall apply as follows: 

18 ‘‘(A) In the case of wetland that the Sec19 retary determines was converted after the date of 

20 enactment of the Food, Conservation and Energy 

21 Act of 2008 (7 U.S.C. 8701 et seq.) but on or be22 fore May 1, 2013, and continues to be in viola23 tion, the person shall have 2 reinsurance years 

24 after the date on which this subsection applies, 
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1 to begin the mitigation process, as determined by 

2 the Secretary. 

3 ‘‘(B) In the case of wetland that the Sec4 retary determines was converted after May 1, 

5 2013— 

6 ‘‘(i) subject to clause (ii), the person 

7 shall be ineligible to receive crop insurance 

8 premium subsidies in subsequent reinsur9 ance years unless section 1222(b) applies; 

10 and 

11 ‘‘(ii) for any violation that the Sec12 retary determines impacts less than 5 acres 

13 of the entire farm, the person may pay a 

14 contribution in accordance with section 

15 1241(f) in an amount equal to 150 percent 

16 of the cost of mitigation, as determined by 

17 the Secretary, for wetland restoration in 

18 lieu of ineligibility to receive crop insurance 

19 premium assistance. 

20 ‘‘(C) In the case of a wetland that the Sec21 retary determines was converted prior to the date 

22 of enactment of the Food, Conservation, and En23 ergy Act of 2008 (7 U.S.C. 8701 et seq.), ineligi24 bility under this subsection shall not apply. 
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1 ‘‘(D) In the case of an agricultural com2 modity for which an individual policy or plan 

3 of insurance is available for the first time to the 

4 person after the date of enactment of the Agri5 culture Reform, Food, and Jobs Act of 2013— 

6 ‘‘(i) ineligibility shall apply only to 

7 conversions that take place after the date on 

8 which the policy or plan of insurance first 

9 becomes available to the person; and 

10 ‘‘(ii) the person shall take such steps as 

11 the Secretary determines appropriate to 

12 mitigate any prior conversion in a timely 

13 manner but not to exceed 2 calendar years. 

14 ‘‘(4) CERTIFICATION.— 

15 ‘‘(A) IN GENERAL.—In enforcing eligibility 

16 under this subsection, the Secretary shall use ex17 isting processes and procedures for certifying 

18 compliance. 

19 ‘‘(B) RESPONSIBILITY.—The Secretary, act20 ing through the agencies of the Department of 

21 Agriculture, shall be solely responsible for deter22 mining whether a producer is eligible to receive 

23 crop insurance premium subsidies in accordance 

24 with this subsection. 
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1 ‘‘(C) LIMITATION.—The Secretary shall en2 sure that no agent, approved insurance provider, 

3 or employee or contractor of an agency or ap4 proved insurance provider, bears responsibility 

5 or liability for the eligibility of an insured pro6 ducer under this subsection, other than in cases 

7 of misrepresentation, fraud, or scheme and de8 vise.’’. 

9 SEC. 2610. ADJUSTED GROSS INCOME LIMITATION FOR 

10 CONSERVATION PROGRAMS. 

11 Section 1001D(b)(2)(A) of the Food Security Act of 

12 1985 (7 U.S.C. 1308–3a(b)(2)(A)) is amended— 

13 (1) by striking ‘‘LIMITS.—’’ and all that follows 

14 through ‘‘clause (ii),’’ and inserting ‘‘LIMITS.—Not15 withstanding any other provision of law,’’; and 

16 (2) by striking clause (ii). 

17 Subtitle H—Repeal of Superseded 

18 Program Authorities and Tran19 sitional Provisions 

20 SEC. 2701. COMPREHENSIVE CONSERVATION ENHANCE21 MENT PROGRAM. 

22 Section 1230 of the Food Security Act of 1985 (16 

23 U.S.C. 3830) is repealed. 
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1 SEC. 2702. EMERGENCY FORESTRY CONSERVATION RE2 SERVE PROGRAM. 

3 (a) REPEAL.—Section 1231A of the Food Security Act 

4 of 1985 (16 U.S.C. 3831a) is repealed. 

5 (b) TRANSITIONAL PROVISIONS.— 

6 (1) EFFECT ON EXISTING CONTRACTS.—The 

7 amendment made by this section shall not affect the 

8 validity or terms of any contract entered into by the 

9 Secretary of Agriculture under section 1231A of the 

10 Food Security Act of 1985 (16 U.S.C. 3831a) before 

11 October 1, 2013, or any payments required to be 

12 made in connection with the contract. 

13 (2) FUNDING.—The Secretary may use funds 

14 made available to carry out the conservation reserve 

15 program under subchapter B of chapter 1 of subtitle 

16 D of title XII of the Food Security Act of 1985 (16 

17 U.S.C. 3831 et seq.) to continue to carry out contracts 

18 referred to in paragraph (1) using the provisions of 

19 law and regulation applicable to such contracts as in 

20 existence on September 30, 2013. 

21 (c) EFFECTIVE DATE.—The amendment made by this 

22 section shall take effect on October 1, 2013. 

23 SEC. 2703. WETLANDS RESERVE PROGRAM. 

24 (a) REPEAL.—Subchapter C of chapter 1 of subtitle 

25 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

26 3837 et seq.) is repealed. 
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1 (b) TRANSITIONAL PROVISIONS.— 

2 (1) EFFECT ON EXISTING CONTRACTS AND EASE3 MENTS.—The amendment made by this section shall 

4 not affect the validity or terms of any contract or 

5 easement entered into by the Secretary of Agriculture 

6 under subchapter C of chapter 1 of subtitle D of title 

7 XII of the Food Security Act of 1985 (16 U.S.C. 3837 

8 et seq.) before October 1, 2013, or any payments re9 quired to be made in connection with the contract or 

10 easement. 

11 (2) FUNDING.— 

12 (A) USE OF PRIOR YEAR FUNDS.—Notwith13 standing the repeal of subchapter C of chapter 1 

14 of subtitle D of title XII of the Food Security Act 

15 of 1985 (16 U.S.C. 3837 et seq.), any funds made 

16 available from the Commodity Credit Corpora17 tion to carry out the wetlands reserve program 

18 under that subchapter for fiscal years 2009 

19 through 2013 shall be made available to carry 

20 out contracts or easements referred to in para21 graph (1) that were entered into prior to October 

22 1, 2013 (including the provision of technical as23 sistance), provided that no such contract or ease24 ment is modified so as to increase the amount of 

25 the payment received. 
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1 (B) OTHER.—The Secretary may use funds 

2 made available to carry out the agricultural con3 servation easement program under subtitle H of 

4 title XII of the Food Security Act of 1985, as 

5 added by section 2301, to continue to carry out 

6 contracts and easements referred to in paragraph 

7 (1) using the provisions of law and regulation 

8 applicable to such contracts and easements as in 

9 existence on September 30, 2013. 

10 (c) EFFECTIVE DATE.—The amendment made by this 

11 section shall take effect on October 1, 2013. 

12 SEC. 2704. FARMLAND PROTECTION PROGRAM AND FARM 

13 VIABILITY PROGRAM. 

14 (a) REPEAL.—Subchapter C of chapter 2 of subtitle 

15 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

16 3838h et seq.) is repealed. 

17 (b) TRANSITIONAL PROVISIONS.— 

18 (1) EFFECT ON EXISTING AGREEMENTS AND

19 EASEMENTS.—The amendment made by this section 

20 shall not affect the validity or terms of any agreement 

21 or easement entered into by the Secretary of Agri22 culture under subchapter C of chapter 2 of subtitle D 

23 of title XII of the Food Security Act of 1985 (16 

24 U.S.C. 3838h et seq.) before October 1, 2013, or any 
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1 payments required to be made in connection with the 

2 agreement or easement. 

3 (2) FUNDING.— 

4 (A) USE OF PRIOR YEAR FUNDS.—Notwith5 standing the repeal of subchapter C of chapter 2 

6 of subtitle D of title XII of the Food Security Act 

7 of 1985 (16 U.S.C. 3838h et seq.), any funds 

8 made available from the Commodity Credit Cor9 poration to carry out the farmland protection 

10 program under that subchapter for fiscal years 

11 2009 through 2013 shall be made available to 

12 carry out agreements and easements referred to 

13 in paragraph (1) that were entered into prior to 

14 October 1, 2013 (including the provision of tech15 nical assistance). 

16 (B) OTHER.—On exhaustion of funds made 

17 available under subparagraph (A), the Secretary 

18 may use funds made available to carry out the 

19 agricultural conservation easement program 

20 under subtitle H of title XII of the Food Security 

21 Act of 1985, as added by section 2301, to con22 tinue to carry out agreements and easements re23 ferred to in paragraph (1) using the provisions 

24 of law and regulation applicable to such agree-
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1 ments and easement as in existence on Sep2 tember 30, 2013. 

3 (c) EFFECTIVE DATE.—The amendment made by this 

4 section shall take effect on October 1, 2013. 

5 SEC. 2705. GRASSLAND RESERVE PROGRAM. 

6 (a) REPEAL.—Subchapter D of chapter 2 of subtitle 

7 D of title XII of the Food Security Act of 1985 (16 U.S.C. 

8 3838n et seq.) is repealed. 

9 (b) TRANSITIONAL PROVISIONS.— 

10 (1) EFFECT ON EXISTING CONTRACTS, AGREE11 MENTS, AND EASEMENTS.—The amendment made by 

12 this section shall not affect the validity or terms of 

13 any contract, agreement, or easement entered into by 

14 the Secretary of Agriculture under subchapter D of 

15 chapter 2 of subtitle D of title XII of the Food Secu16 rity Act of 1985 (16 U.S.C. 3838n et seq.) before Oc17 tober 1, 2013, or any payments required to be made 

18 in connection with the contract, agreement, or ease19 ment. 

20 (2) FUNDING.— 

21 (A) USE OF PRIOR YEAR FUNDS.—Notwith22 standing the repeal of subchapter D of chapter 2 

23 of subtitle D of title XII of the Food Security Act 

24 of 1985 (16 U.S.C. 3838n et seq.), any funds 

25 made available from the Commodity Credit Cor-
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1 poration to carry out the grassland reserve pro2 gram under that subchapter for fiscal years 2009 

3 through 2013 shall be made available to carry 

4 out contracts, agreements, or easements referred 

5 to in paragraph (1) that were entered into prior 

6 to October 1, 2013 (including the provision of 

7 technical assistance), provided that no such con8 tract, agreement, or easement is modified so as 

9 to increase the amount of the payment received. 

10 (B) OTHER.—The Secretary may use funds 

11 made available to carry out the agricultural con12 servation easement program under subtitle H of 

13 title XII of the Food Security Act of 1985, as 

14 added by section 2301, to continue to carry out 

15 contracts, agreements, and easements referred to 

16 in paragraph (1) using the provisions of law 

17 and regulation applicable to such contracts, 

18 agreements, and easements as in existence on 

19 September 30, 2013. 

20 (c) EFFECTIVE DATE.—The amendment made by this 

21 section shall take effect on October 1, 2013. 

22 SEC. 2706. AGRICULTURAL WATER ENHANCEMENT PRO23 GRAM. 

24 (a) REPEAL.—Section 1240I of the Food Security Act 

25 of 1985 (16 U.S.C. 3839aa–9) is repealed. 
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1 (b) TRANSITIONAL PROVISIONS.— 

2 (1) EFFECT ON EXISTING CONTRACTS AND

3 AGREEMENTS.—The amendment made by this section 

4 shall not affect the validity or terms of any contract 

5 or agreement entered into by the Secretary of Agri6 culture under section 1240I of the Food Security Act 

7 of 1985 (16 U.S.C. 3839aa–9) before October 1, 2013, 

8 or any payments required to be made in connection 

9 with the contract or agreement. 

10 (2) FUNDING.— 

11 (A) USE OF PRIOR YEAR FUNDS.—Notwith12 standing the repeal of section 1240I of the Food 

13 Security Act of 1985 (16 U.S.C. 3839aa–9), any 

14 funds made available from the Commodity Cred15 it Corporation to carry out the agricultural 

16 water enhancement program under that section 

17 for fiscal years 2009 through 2013 shall be made 

18 available to carry out contracts and agreements 

19 referred to in paragraph (1) that were entered 

20 into prior to October 1, 2013 (including the pro21 vision of technical assistance). 

22 (B) OTHER.—On exhaustion of funds made 

23 available under subparagraph (A), the Secretary 

24 may use funds made available to carry out the 

25 regional conservation partnerships program 
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1 under subtitle I of title XII of the Food Security 

2 Act of 1985, as added by section 2401, to con3 tinue to carry out contracts and agreements re4 ferred to in paragraph (1) using the provisions 

5 of law and regulation applicable to such con6 tracts and agreements as in existence on Sep7 tember 30, 2013. 

8 (c) EFFECTIVE DATE.—The amendment made by this 

9 section shall take effect on October 1, 2013. 

10 SEC. 2707. WILDLIFE HABITAT INCENTIVE PROGRAM. 

11 (a) REPEAL.—Section 1240N of the Food Security Act 

12 of 1985 (16 U.S.C. 3839bb–1) is repealed. 

13 (b) TRANSITIONAL PROVISIONS.— 

14 (1) EFFECT ON EXISTING CONTRACTS.—The 

15 amendment made by this section shall not affect the 

16 validity or terms of any contract entered into by the 

17 Secretary of Agriculture under section 1240N of the 

18 Food Security Act of 1985 (16 U.S.C. 3839bb–1) be19 fore October 1, 2013, or any payments required to be 

20 made in connection with the contract. 

21 (2) FUNDING.— 

22 (A) USE OF PRIOR YEAR FUNDS.—Notwith23 standing the repeal of section 1240N of the Food 

24 Security Act of 1985 (16 U.S.C. 3839bb–1), any 

25 funds made available from the Commodity Cred-
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1 it Corporation to carry out the wildlife habitat 

2 incentive program under that section for fiscal 

3 years 2009 through 2013 shall be made available 

4 to carry out contracts referred to in paragraph 

5 (1) which were entered into prior to October 1, 

6 2013 (including the provision of technical assist7 ance). 

8 (B) OTHER.—On exhaustion of funds made 

9 available under subparagraph (A), the Secretary 

10 may use funds made available to carry out the 

11 environmental quality incentives program under 

12 chapter 4 of subtitle D of title XII of the Food 

13 Security Act of 1985 (16 U.S.C. 3839aa et seq.) 

14 to continue to carry out contracts referred to in 

15 paragraph (1) using the provisions of law and 

16 regulation applicable to such contracts as in ex17 istence on September 30, 2013. 

18 (c) EFFECTIVE DATE.—The amendment made by this 

19 section shall take effect on October 1, 2013. 

20 SEC. 2708. GREAT LAKES BASIN PROGRAM. 

21 (a) REPEAL.—Section 1240P of the Food Security Act 

22 of 1985 (16 U.S.C. 3839bb–3) is repealed. 

23 (b) EFFECTIVE DATE.—The amendment made by this 

24 section shall take effect on October 1, 2013. 
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1 SEC. 2709. CHESAPEAKE BAY WATERSHED PROGRAM. 

2 (a) REPEAL.—Section 1240Q of the Food Security Act 

3 of 1985 (16 U.S.C. 3839bb–4) is repealed. 

4 (b) TRANSITIONAL PROVISIONS.— 

5 (1) EFFECT ON EXISTING CONTRACTS, AGREE6 MENTS, AND EASEMENTS.—The amendment made by 

7 this section shall not affect the validity or terms of 

8 any contract, agreement, or easement entered into by 

9 the Secretary of Agriculture under section 1240Q of 

10 the Food Security Act of 1985 (16 U.S.C. 3839bb–4) 

11 before October 1, 2013, or any payments required to 

12 be made in connection with the contract, agreement, 

13 or easement. 

14 (2) FUNDING.— 

15 (A) USE OF PRIOR YEAR FUNDS.—Notwith16 standing the repeal of section 1240Q of the Food 

17 Security Act of 1985 (16 U.S.C. 3839bb–4), any 

18 funds made available from the Commodity Cred19 it Corporation to carry out the Chesapeake Bay 

20 watershed program under that section for fiscal 

21 years 2009 through 2013 shall be made available 

22 to carry out contracts, agreements, and ease23 ments referred to in paragraph (1) that were en24 tered into prior to October 1, 2013 (including the 

25 provision of technical assistance). 
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1 (B) OTHER.—The Secretary may use funds 

2 made available to carry out the regional con3 servation partnerships program under subtitle I 

4 of title XII of the Food Security Act of 1985, as 

5 added by section 2401, to continue to carry out 

6 contracts, agreements, and easements referred to 

7 in paragraph (1) using the provisions of law 

8 and regulation applicable to such contracts, 

9 agreements, and easements as in existence on 

10 September 30, 2013. 

11 (c) EFFECTIVE DATE.—The amendment made by this 

12 section shall take effect on October 1, 2013. 

13 SEC. 2710. COOPERATIVE CONSERVATION PARTNERSHIP 

14 INITIATIVE. 

15 (a) REPEAL.—Section 1243 of the Food Security Act 

16 of 1985 (16 U.S.C. 3843) is repealed. 

17 (b) TRANSITIONAL PROVISIONS.— 

18 (1) EFFECT ON EXISTING CONTRACTS AND

19 AGREEMENTS.—The amendment made by this section 

20 shall not affect the validity or terms of any contract 

21 or agreement entered into by the Secretary of Agri22 culture under section 1243 of the Food Security Act 

23 of 1985 (16 U.S.C. 3843) before October 1, 2013, or 

24 any payments required to be made in connection with 

25 the contract or agreement. 
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1 (2) FUNDING.— 

2 (A) USE OF PRIOR YEAR FUNDS.—Notwith3 standing the repeal of section 1243 of the Food 

4 Security Act of 1985 (16 U.S.C. 3843), any 

5 funds made available from the Commodity Cred6 it Corporation to carry out the cooperative con7 servation partnership initiative under that sec8 tion for fiscal years 2009 through 2013 shall be 

9 made available to carry out contracts and agree10 ments referred to in paragraph (1) that were en11 tered into prior to October 1, 2013 (including the 

12 provision of technical assistance). 

13 (B) OTHER.—On exhaustion of funds made 

14 available under subparagraph (A), the Secretary 

15 may use funds made available to carry out the 

16 regional conservation partnerships program 

17 under subtitle I of title XII of the Food Security 

18 Act of 1985, as added by section 2401, to con19 tinue to carry out contracts and agreements re20 ferred to in paragraph (1) using the provisions 

21 of law and regulation applicable to such con22 tracts and agreements as in existence on Sep23 tember 30, 2013. 

24 (c) EFFECTIVE DATE.—The amendment made by this 

25 section shall take effect on October 1, 2013. 
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1 SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM. 

2 Chapter 3 of subtitle D of title XII of the Food Security 

3 Act of 1985 (16 U.S.C. 3839 et seq.) is repealed. 

4 SEC. 2712. TECHNICAL AMENDMENTS. 

5 (a) Section 1201(a) of the Food Security Act of 1985 

6 (16 U.S.C. 3801(a)) is amended in the matter preceding 

7 paragraph (1) by striking ‘‘E’’ and inserting ‘‘I’’. 

8 (b) Section 1211(a) of the Food Security Act of 1985 

9 (16 U.S.C. 3811(a)) is amended by striking ‘‘predominate’’ 

10 each place it appears and inserting ‘‘predominant’’. 

11 (c) Section 1242(i) of the Food Security Act of 1985 

12 (16 U.S.C. 3842(i)) is amended in the subsection heading 

13 by striking ‘‘SPECIALITY’’ and inserting ‘‘SPECIALTY’’. 

14 TITLE III—TRADE 

15 Subtitle A—Food for Peace Act 

16 SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS 

17 THROUGH WHICH NONEMERGENCY ASSIST18 ANCE IS PROVIDED. 

19 Effective October 1, 2013, section 202(e)(1) of the Food 

20 for Peace Act (7 U.S.C. 1722(e)(1)) is amended— 

21 (1) in the matter preceding subparagraph (A), 

22 by striking ‘‘13 percent’’ and inserting ‘‘15 percent’’; 

23 and 

24 (2) in subparagraph (A), by striking ‘‘new’’ and 

25 inserting ‘‘and enhancing’’. 
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1 SEC. 3002. FOOD AID QUALITY. 

2 Section 202(h) of the Food for Peace Act (7 U.S.C. 

3 1722(h)) is amended— 

4 (1) by striking paragraph (1) and inserting the 

5 following: 

6 ‘‘(1) IN GENERAL.—The Administrator shall use 

7 funds made available for fiscal year 2014 and subse8 quent fiscal years to carry out this title— 

9 ‘‘(A) to assess the types and quality of agri10 cultural commodities and products donated for 

11 food aid; 

12 ‘‘(B) to adjust products and formulations, 

13 including potential introduction of new 

14 fortificants and products, as necessary to cost-ef15 fectively meet nutrient needs of target popu16 lations; 

17 ‘‘(C) to test prototypes; 

18 ‘‘(D) to adopt new specifications or improve 

19 existing specifications for micronutrient fortified 

20 food aid products, based on the latest develop21 ments in food and nutrition science, and in co22 ordination with other international partners; 

23 ‘‘(E) to develop new program guidance to 

24 facilitate improved matching of products to pur25 poses having nutritional intent, in coordination 

26 with other international partners; 
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1 ‘‘(F) to develop improved guidance for im2 plementing partners on how to address nutri3 tional deficiencies that emerge among recipients 

4 for whom food assistance is the sole source of diet 

5 in emergency programs that extend beyond 1 

6 year, in coordination with other international 

7 partners; and 

8 ‘‘(G) to evaluate, in appropriate settings 

9 and as necessary, the performance and cost-effec10 tiveness of new or modified specialized food prod11 ucts and program approaches designed to meet 

12 the nutritional needs of the most vulnerable 

13 groups, such as pregnant and lactating mothers, 

14 and children under the age of 5.’’; and 

15 (2) in paragraph (3), by striking ‘‘2011’’ and in16 serting ‘‘2018’’. 

17 SEC. 3003. MINIMUM LEVELS OF ASSISTANCE. 

18 Section 204(a) of the Food for Peace Act (7 U.S.C. 

19 1724(a)) is amended— 

20 (1) in paragraph (1), by striking ‘‘2012’’ and in21 serting ‘‘2018’’; and 

22 (2) in paragraph (2), by striking ‘‘2012’’ and in23 serting ‘‘2018’’. 
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1 SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULT2 ATIVE GROUP. 

3 Section 205(f) of the Food for Peace Act (7 U.S.C. 

4 1725(f)) is amended by striking ‘‘2012’’ and inserting 

5 ‘‘2018’’. 

6 SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF 

7 FOOD FOR PEACE ACT PROGRAMS. 

8 Section 207(f) of the Food for Peace Act (7 U.S.C. 

9 1726a(f)) is amended— 

10 (1) by striking paragraph (4) and redesignating 

11 paragraphs (5) and (6) as paragraphs (4) and (5), 

12 respectively; and 

13 (2) in subparagraph (A) of paragraph (5) (as so 

14 redesignated)— 

15 (A) by striking ‘‘2012’’ and inserting 

16 ‘‘2018’’; and 

17 (B) by striking ‘‘during fiscal year 2009’’ 

18 and inserting ‘‘during the period of fiscal years 

19 2014 through 2018’’. 

20 SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID 

21 TRANSPORTATION, DELIVERY, AND DIS22 TRIBUTION OF SHELF-STABLE PREPACKAGED 

23 FOODS. 

24 Section 208(f) of the Food for Peace Act (7 U.S.C. 

25 1726b(f)) is amended by striking ‘‘2012’’ and inserting 

26 ‘‘2018’’. 
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1 SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMOD2 ITIES MONETIZED. 

3 Section 403 of the Food for Peace Act (7 U.S.C. 1733) 

4 is amended by adding at the end the following: 

5 ‘‘(m) LIMITATION ON MONETIZATION OF COMMOD6 ITIES.— 

7 ‘‘(1) LIMITATION.— 

8 ‘‘(A) IN GENERAL.—Unless the Adminis9 trator grants a waiver under paragraph (2), no 

10 commodity may be made available under this 

11 Act unless the rate of return for the commodity 

12 (as determined under subparagraph (B)) is at 

13 least 70 percent. 

14 ‘‘(B) RATE OF RETURN.—For purposes of 

15 subparagraph (A), the rate of return shall be 

16 equal to the proportion that— 

17 ‘‘(i) the proceeds the implementing 

18 partners generate through monetization; 

19 bears to 

20 ‘‘(ii) the cost to the Federal Govern21 ment to procure and ship the commodities 

22 to a recipient country for monetization. 

23 ‘‘(2) WAIVER AUTHORITY.—The Administrator 

24 may waive the application of the limitation in para25 graph (1) with regard to a commodity for a recipient 

26 country if the Administrator determines that it is 
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1 necessary to achieve the purposes of this Act in the re2 cipient country. 

3 ‘‘(3) REPORT.—Not later than 90 days after a 

4 waiver is granted under paragraph (2), the Adminis5 trator shall prepare, publish in the Federal Register, 

6 and submit to the Committees on Foreign Affairs, Ag7 riculture, and Appropriations of the House of Rep8 resentatives, and the Committees on Appropriations, 

9 Foreign Relations, and Agriculture, Nutrition, and 

10 Forestry of the Senate a report that— 

11 ‘‘(A) contains the reasons for granting the 

12 waiver and the actual rate of return for the com13 modity; and 

14 ‘‘(B) includes for the commodity the costs of 

15 bagging or further processing, ocean transpor16 tation, inland transportation in the recipient 

17 country, storage costs, and any other informa18 tion that the Administrator determines to be nec19 essary.’’. 

20 SEC. 3008. FLEXIBILITY. 

21 Section 406 of the Food for Peace Act (7 U.S.C. 1736) 

22 is amended— 

23 (1) by redesignating subsections (c) and (d) as 

24 subsections (d) and (e), respectively; and 
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1 (2) by inserting after subsection (b) the fol2 lowing: 

3 ‘‘(c) FLEXIBILITY.—Notwithstanding any other provi4 sion of law and as necessary to achieve the purposes of this 

5 Act, funds available under this Act may be used to pay the 

6 costs of up to 20 percent of activities conducted in recipient 

7 countries by nonprofit voluntary organizations, coopera8 tives, or intergovernmental agencies or organizations.’’. 

9 SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, 

10 AND STORAGE OF AGRICULTURAL COMMOD11 ITIES FOR PREPOSITIONING IN THE UNITED 

12 STATES AND FOREIGN COUNTRIES. 

13 Section 407 of the Food for Peace Act (7 U.S.C. 1736a) 

14 is amended— 

15 (1) in subparagraph (c)(4)(A)— 

16 (A) by striking ‘‘2012’’ and inserting 

17 ‘‘2018’’; and 

18 (B) by striking ‘‘for each such fiscal year 

19 not more than $10,000,000 of such funds’’ and 

20 inserting ‘‘for each of fiscal years 2001 through 

21 2012 not more than $10,000,000 of such funds 

22 and for each of fiscal years 2014 through 2018 

23 not more than $15,000,000 of such funds’’; and 

24 (2) by adding at the end the following: 
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1 ‘‘(g) FUNDING FOR TESTING OF FOOD AID SHIP2 MENTS.—Funds made available for agricultural products 

3 acquired under this Act and section 3107 of the Farm Secu4 rity and Rural Investment Act of 2002 (7 U.S.C. 1736o– 

5 1) may be used to pay for the testing of those agricultural 

6 products.’’. 

7 SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES 

8 OR TO PROVIDE OTHER ASSISTANCE. 

9 Section 408 of the Food for Peace Act (7 U.S.C. 1736b) 

10 is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

11 SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD AS12 SISTANCE. 

13 Section 412 of the Food for Peace Act (7 U.S.C. 1736f) 

14 is amended by striking subsection (e) and inserting the fol15 lowing: 

16 ‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD AS17 SISTANCE.— 

18 ‘‘(1) IN GENERAL.—Subject to paragraph (2), of 

19 the amounts made available to carry out emergency 

20 and nonemergency food assistance programs under 

21 title II, not less than 20 nor more than 30 percent for 

22 each of fiscal years 2014 through 2018 shall be ex23 pended for nonemergency food assistance programs 

24 under title II. 
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1 ‘‘(2) MINIMUM LEVEL.—The amount made avail2 able to carry out nonemergency food assistance pro3 grams under title II shall not be less than 

4 $275,000,000 for any fiscal year.’’. 

5 SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PRO6 GRAMS REPORT. 

7 Section 413 of the Food for Peace Act (7 U.S.C. 1736g) 

8 is amended— 

9 (1) by striking ‘‘(a) IN GENERAL.—To the max10 imum’’ and inserting ‘‘To the maximum’’; and 

11 (2) by striking subsection (b). 

12 SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS. 

13 (a) ELIMINATION OF OBSOLETE REFERENCE TO

14 STUDY.—Section 415(a)(2)(B) of the Food for Peace Act (7 

15 U.S.C. 1736g–2(a)(2)(B)) is amended by striking ‘‘, using 

16 recommendations’’ and all that follows through ‘‘quality en17 hancements’’. 

18 (b) EXTENSION.—Section 415(c) of the Food for Peace 

19 Act (7 U.S.C. 1736g–2(c)) is amended by striking ‘‘2012’’ 

20 and inserting ‘‘2018’’. 

21 SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARM22 ER-TO-FARMER PROGRAM. 

23 Section 501 of the Food for Peace Act (7 U.S.C. 1737) 

24 is amended— 

25 (1) in subsection (d)— 
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1 (A) by striking ‘‘0.5 percent’’ and inserting 

2 ‘‘0.6 percent’’; and 

3 (B) by striking ‘‘2012’’ and inserting 

4 ‘‘2018’’; and 

5 (2) in subsection (e)(1), by striking ‘‘2012’’ and 

6 inserting ‘‘2018’’. 

7 SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH 

8 KOREA. 

9 (a) IN GENERAL.—No amounts may be obligated or 

10 expended to provide assistance under title II of the Food 

11 for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic Peo12 ple’s Republic of Korea. 

13 (b) NATIONAL INTEREST WAIVER.—The President 

14 may waive subsection (a) if the President determines and 

15 certifies to the Committees on Agriculture, Nutrition, and 

16 Forestry and Foreign Relations of the Senate and the Com17 mittees on Agriculture and Foreign Affairs of the House 

18 of Representatives that the waiver is in the national interest 

19 of the United States. 

20 Subtitle B—Agricultural Trade Act 

21 of 1978 

22 SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS. 

23 Section 211 of the Agricultural Trade Act of 1978 (7 

24 U.S.C. 5641) is amended by striking subsection (b) and in25 serting the following: 
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1 ‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—The 

2 Commodity Credit Corporation shall make available for 

3 each of fiscal years 2014 through 2018 credit guarantees 

4 under section 202(a) in an amount equal to not more than 

5 $4,500,000,000 in credit guarantees.’’. 

6 SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM. 

7 Section 211(c)(1)(A) of the Agricultural Trade Act of 

8 1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking 

9 ‘‘2012’’ and inserting ‘‘2018’’. 

10 SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR 

11 PROGRAM. 

12 Section 703(a) of the Agricultural Trade Act of 1978 

13 (7 U.S.C. 5723(a)) is amended by striking ‘‘2012’’ and in14 serting ‘‘2018’’. 

15 Subtitle C—Other Agricultural 

16 Trade Laws 

17 SEC. 3201. FOOD FOR PROGRESS ACT OF 1985. 

18 (a) EXTENSION.—The Food for Progress Act of 1985 

19 (7 U.S.C. 1736o) is amended— 

20 (1) in subsection (f)(3), by striking ‘‘2012’’ and 

21 inserting ‘‘2018’’; 

22 (2) in subsection (g), by striking ‘‘2012’’ and in23 serting ‘‘2018’’; 

24 (3) in subsection (k), by striking ‘‘2012’’ and in25 serting ‘‘2018’’; and 
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1 (4) in subsection (l)(1), by striking ‘‘2012’’ and 

2 inserting ‘‘2018’’. 

3 (b) REPEAL OF COMPLETED PROJECT.—Subsection (f) 

4 of the Food for Progress Act of 1985 (7 U.S.C. 1736o) is 

5 amended by striking paragraph (6). 

6 (c) FLEXIBILITY.—The Food for Progress Act of 1985 

7 (7 U.S.C. 1736o) is amended in subsection (l) by adding 

8 at the end the following: 

9 ‘‘(5) FLEXIBILITY.—Notwithstanding any other 

10 provision of law and as necessary to achieve the pur11 poses of this Act, funds available under this Act may 

12 be used to pay the costs of up to 20 percent of activi13 ties conducted in recipient countries by nonprofit vol14 untary organizations, cooperatives, or intergovern15 mental agencies or organizations.’’. 

16 (d) LIMITATION ON TOTAL VOLUME OF COMMODITIES

17 MONETIZED.—The Food for Progress Act of 1985 (7 U.S.C. 

18 1736o) is amended by adding at the end the following: 

19 ‘‘(p) LIMITATION ON MONETIZATION OF COMMOD20 ITIES.— 

21 ‘‘(1) LIMITATION.— 

22 ‘‘(A) IN GENERAL.—Unless the Secretary 

23 grants a waiver under paragraph (2), no eligible 

24 commodity may be made available under this 

25 section unless the rate of return for the eligible 
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1 commodity (as determined under subparagraph 

2 (B)) is at least 70 percent. 

3 ‘‘(B) RATE OF RETURN.—For purposes of 

4 subparagraph (A), the rate of return shall be 

5 equal to the proportion that— 

6 ‘‘(i) the proceeds the implementing 

7 partners generate through monetization; 

8 bears to 

9 ‘‘(ii) the cost to the Federal Govern10 ment to procure and ship the eligible com11 modities to a recipient country for mone12 tization. 

13 ‘‘(2) WAIVER AUTHORITY.—The Secretary may 

14 waive the application of the limitation in paragraph 

15 (1) with regard to an eligible commodity for a recipi16 ent country if the Secretary determines that it is nec17 essary to achieve the purposes of this Act in the re18 cipient country. 

19 ‘‘(3) REPORT.—Not later than 90 days after a 

20 waiver is granted under paragraph (2), the Secretary 

21 shall prepare, publish in the Federal Register, and 

22 submit to the Committees on Foreign Affairs, Agri23 culture, and Appropriations of the House of Rep24 resentatives, and the Committees on Appropriations, 
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1 Foreign Relations, and Agriculture, Nutrition, and 

2 Forestry of the Senate a report that— 

3 ‘‘(A) contains the reasons for granting the 

4 waiver and the actual rate of return for the eligi5 ble commodity; and 

6 ‘‘(B) includes for the commodity the costs of 

7 bagging or further processing, ocean transpor8 tation, inland transportation in the recipient 

9 country, storage costs, and any other informa10 tion that the Secretary determines to be nec11 essary.’’. 

12 SEC. 3202. BILL EMERSON HUMANITARIAN TRUST. 

13 Section 302 of the Bill Emerson Humanitarian Trust 

14 Act (7 U.S.C. 1736f–1) is amended— 

15 (1) in subsection (b)(2)(B)(i), by striking ‘‘2012’’ 

16 both places it appears and inserting ‘‘2018’’; and 

17 (2) in subsection (h), by striking ‘‘2012’’ both 

18 places it appears and inserting ‘‘2018’’. 

19 SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO 

20 EMERGING MARKETS. 

21 (a) DIRECT CREDITS OR EXPORT CREDIT GUARAN22 TEES.—Section 1542(a) of the Food, Agriculture, Conserva23 tion, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 

24 5622 note) is amended by striking ‘‘2012’’ and inserting 

25 ‘‘2018’’. 
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1 (b) DEVELOPMENT OF AGRICULTURAL SYSTEMS.— 

2 Section 1542(d)(1)(A)(i) of the Food, Agriculture, Con3 servation, and Trade Act of 1990 (Public Law 101–624; 

4 7 U.S.C. 5622 note) is amended by striking ‘‘2012’’ and 

5 inserting ‘‘2018’’. 

6 SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR 

7 EDUCATION AND CHILD NUTRITION PRO8 GRAM. 

9 (a) REAUTHORIZATION.—Section 3107(l)(2) of the 

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

11 1736o–1(l)(2)) is amended by striking ‘‘2012’’ and insert12 ing ‘‘2018’’. 

13 (b) TECHNICAL CORRECTION.—Section 3107(d) of the 

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

15 1736o–1(d)) is amended by striking ‘‘to’’ in the matter pre16 ceding paragraph (1). 

17 SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

18 (a) PURPOSE.—Section 3205(b) of the Farm Security 

19 and Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is 

20 amended by striking ‘‘related barriers to trade’’ and insert21 ing ‘‘technical barriers to trade’’. 

22 (b) FUNDING.—Section 3205(e)(2) of the Farm Secu23 rity and Rural Investment Act of 2002 (7 U.S.C. 

24 5680(e)(2)) is amended— 
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1 (1) by inserting ‘‘and’’ at the end of subpara2 graph (C); and 

3 (2) by striking subparagraphs (D) and (E) and 

4 inserting the following new subparagraph: 

5 ‘‘(D) $9,000,000 for each of fiscal years 

6 2011 through 2018.’’. 

7 SEC. 3206. GLOBAL CROP DIVERSITY TRUST. 

8 Section 3202(c) of the Food, Conservation, and Energy 

9 Act of 2008 (Public Law 110–246; 22 U.S.C. 2220a note) 

10 is amended by striking ‘‘2008 through 2012’’ and inserting 

11 ‘‘2014 through 2018’’. 

12 SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT 

13 PROJECTS. 

14 Section 3206 of the Food, Conservation, and Energy 

15 Act of 2008 (7 U.S.C. 1726c) is amended— 

16 (1) in subsection (b)— 

17 (A) by striking ‘‘(b) STUDY; FIELD-BASED

18 PROJECTS.—’’ and all that follows through ‘‘(2) 

19 FIELD-BASED PROJECTS.—’’ and inserting the 

20 following: 

21 ‘‘(b) FIELD-BASED PROJECTS.—’’; 

22 (B) by redesignating subparagraphs (A) 

23 and (B) as paragraphs (1) and (2), respectively, 

24 and indenting appropriately; 
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1 (C) in paragraph (1) (as so redesignated), 

2 by striking ‘‘subparagraph (B)’’ and inserting 

3 ‘‘paragraph (2)’’; and 

4 (D) in paragraph (2) (as so redesignated), 

5 by striking ‘‘subparagraph (A)’’ and inserting 

6 ‘‘paragraph (1)’’; 

7 (2) in subsection (c)(1), by striking ‘‘subsection 

8 (b)(2)’’ and inserting ‘‘subsection (b)’’; 

9 (3) by striking subsections (d), (f), and (g); 

10 (4) by redesignating subsection (e) as subsection 

11 (d); 

12 (5) in subsection (d) (as so redesignated)— 

13 (A) in paragraph (2)— 

14 (i) by striking subparagraph (B); and 

15 (ii) in subparagraph (A)— 

16 (I) by striking ‘‘(A) APPLICA17 TION.—’’ and all that follows through 

18 ‘‘To be eligible’’ in clause (i) and in19 serting the following: 

20 ‘‘(A) IN GENERAL.—To be eligible’’; 

21 (II) by redesignating clause (ii) 

22 as subparagraph (B) and indenting 

23 appropriately; and 

24 (III) in subparagraph (B) (as so 

25 redesignated), by striking ‘‘clause (i)’’ 
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1 and inserting ‘‘subparagraph (A)’’; 

2 and 

3 (B) by striking paragraph (4); and 

4 (6) by adding at the end the following: 

5 ‘‘(e) FUNDING.— 

6 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

7 There is authorized to be appropriated to carry out 

8 this section $60,000,000 for each of fiscal years 2014 

9 through 2018. 

10 ‘‘(2) PREFERENCE.—In carrying out this sec11 tion, the Secretary may give a preference to eligible 

12 organizations that have, or are working toward, 

13 projects under the McGovern-Dole International Food 

14 for Education and Child Nutrition Program estab15 lished under section 3107 of the Farm Security and 

16 Rural Investment Act of 2002 (7 U.S.C. 1736o–1). 

17 ‘‘(3) REPORTING.—Each year, the Secretary 

18 shall submit to the appropriate committees of Con19 gress a report that describes the use of funds under 

20 this section, including— 

21 ‘‘(A) the impact of procurements and 

22 projects on— 

23 ‘‘(i) local and regional agricultural 

24 producers; and 
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1 ‘‘(ii) markets and consumers, including 

2 low-income consumers; and 

3 ‘‘(B) implementation time frames and 

4 costs.’’. 

5 SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESIL6 IENCE PROGRAM. 

7 (a) DEFINITIONS.—In this section: 

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the Agency for 

10 International Development. 

11 (2) APPROPRIATE COMMITTEES OF CONGRESS.— 

12 The term ‘‘appropriate committees of Congress’’ 

13 means— 

14 (A) the Committee on Agriculture, Nutri15 tion, and Forestry of the Senate; 

16 (B) the Committee on Agriculture of the 

17 House of Representatives; 

18 (C) the Committee on Foreign Relations of 

19 the Senate; and 

20 (D) the Committee on Foreign Affairs of the 

21 House of Representatives. 

22 (3) ELIGIBLE ORGANIZATION.—The term ‘‘eligi23 ble organization’’ means an organization that is— 
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1 (A) a private voluntary organization or co2 operative that is, to the extent practicable, reg3 istered with the Administrator; or 

4 (B) an intergovernmental organization, 

5 such as the World Food Program. 

6 (4) HORN OF AFRICA.—The term ‘‘Horn of Afri7 ca’’ means the countries of— 

8 (A) Ethiopia; 

9 (B) Somalia; 

10 (C) Kenya; 

11 (D) Djibouti; 

12 (E) Eritrea; 

13 (F) South Sudan; 

14 (G) Uganda; and 

15 (H) such other countries as the Adminis16 trator determines to be appropriate after pro17 viding notification to the appropriate committees 

18 of Congress. 

19 (5) RESILIENCE.—The term ‘‘resilience’’ 

20 means— 

21 (A) the capacity to mitigate the negative 

22 impacts of crises (including natural disasters, 

23 conflicts, and economic shocks) in order to reduce 

24 loss of life and depletion of productive assets; 
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1 (B) the capacity to respond effectively to 

2 crises, ensuring basic needs are met in a way 

3 that is integrated with long-term development ef4 forts; and 

5 (C) the capacity to recover and rebuild after 

6 crises so that future shocks can be absorbed with 

7 less need for ongoing external assistance. 

8 (b) PURPOSE.—The purpose of this section is to estab9 lish a pilot program to effectively integrate all United 

10 States-funded emergency and long-term development activi11 ties that aim to improve food security in the Horn of Africa, 

12 building resilience so as— 

13 (1) to reduce the impacts of future crises; 

14 (2) to enhance local capacity for emergency re15 sponse; 

16 (3) to enhance sustainability of long-term devel17 opment programs targeting poor and vulnerable 

18 households; and 

19 (4) to reduce the need for repeated costly emer20 gency operations. 

21 (c) STUDY.— 

22 (1) IN GENERAL.—Not later than 30 days after 

23 the date of enactment of this Act, the Administrator 

24 shall initiate a study of prior programs to support re25 silience in the Horn of Africa conducted by— 
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1 (A) other donor countries; 

2 (B) private voluntary organizations; 

3 (C) the World Food Program of the United 

4 Nations; and 

5 (D) multilateral institutions, including the 

6 World Bank. 

7 (2) REQUIREMENTS.—The study shall— 

8 (A) include all programs implemented 

9 through the Agency for International Develop10 ment, the Department of Agriculture, the Depart11 ment of the Treasury, the Millennium Challenge 

12 Corporation, the Peace Corps, and other relevant 

13 Federal agencies; 

14 (B) evaluate how well the programs de15 scribed in subparagraph (A) work together to 

16 complement each other and leverage impacts 

17 across programs; 

18 (C) include recommendations for how full 

19 integration of efforts can be achieved; and 

20 (D) evaluate the degree to which country-led 

21 development plans support programs that in22 crease resilience, including review of the invest23 ments by each country in nutrition and safety 

24 nets. 
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1 (3) REPORT.—Not later than 180 days after the 

2 date of enactment of this Act, the Administrator shall 

3 submit to the appropriate committees of Congress a 

4 report containing the results of the study. 

5 (d) FIELD-BASED PROJECT GRANTS OR COOPERATIVE

6 AGREEMENTS.— 

7 (1) IN GENERAL.—The Administrator shall— 

8 (A) provide grants to, or enter into coopera9 tive agreements with, eligible organizations to 

10 carry out field-based projects that build resilience 

11 in the Horn of Africa in accordance with this 

12 section; and 

13 (B) develop a project approval process to 

14 ensure full integration of efforts. 

15 (2) REQUIREMENTS OF ELIGIBLE ORGANIZA16 TIONS.— 

17 (A) APPLICATION.—To be eligible to receive 

18 a grant from, or enter into a cooperative agree19 ment with, the Administrator under this sub20 section, an eligible organization shall submit to 

21 the Administrator an application by such date, 

22 in such manner, and containing such informa23 tion as the Administrator may require. 

24 (B) COMPLETION REQUIREMENT.—To be el25 igible to receive a grant from, or enter into a co-
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1 operative agreement with, the Administrator 

2 under this subsection, an eligible organization 

3 shall agree— 

4 (i) to collect, not later than September 

5 30, 2016, data containing the information 

6 required under subsection (f)(2) relating to 

7 the field-based project funded through the 

8 grant or cooperative agreement; and 

9 (ii) to provide to the Administrator the 

10 data collected under clause (i). 

11 (3) REQUIREMENTS OF ADMINISTRATOR.— 

12 (A) PROJECT DIVERSITY.— 

13 (i) IN GENERAL.—Subject to clause (ii) 

14 and subparagraph (B), in selecting pro15 posals for field-based projects to fund under 

16 this section, the Administrator shall select a 

17 diversity of projects, including projects lo18 cated in— 

19 (I) areas most prone to repeated 

20 crises; 

21 (II) areas with effective existing 

22 resilience programs that can be scaled; 

23 and 

24 (III) areas in all countries of the 

25 Horn of Africa. 
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1 (ii) PRIORITY.—In selecting proposals 

2 for field-based projects under clause (i), the 

3 Administrator shall ensure that the selected 

4 proposals are for field-based projects that— 

5 (I) effectively integrate emergency 

6 and long-term development programs 

7 to improve sustainability; 

8 (II) demonstrate the potential to 

9 reduce the need for future emergency 

10 assistance; and 

11 (III) build targeted productive 

12 safety nets, in coordination with host 

13 country governments, through food for 

14 work, cash for work, and other proven 

15 program methodologies. 

16 (B) AVAILABILITY.—The Administrator 

17 shall not award a grant or cooperative agree18 ment or approve a field-based project under this 

19 subsection until the date on which the Adminis20 trator promulgates regulations or issues guide21 lines under subsection (e). 

22 (e) REGULATIONS; GUIDELINES.— 

23 (1) IN GENERAL.—Not later than 180 days after 

24 the date of completion of the study under subsection 

25 (c), the Administrator shall promulgate regulations or 
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1 issue guidelines to carry out field-based projects under 

2 this section. 

3 (2) REQUIREMENTS.—In promulgating regula4 tions or issuing guidelines under paragraph (1), the 

5 Administrator shall— 

6 (A) take into consideration the results of the 

7 study described in subsection (c); and 

8 (B) provide an opportunity for public re9 view and comment. 

10 (f) REPORT.— 

11 (1) IN GENERAL.—Not later than November 1, 

12 2016, the Administrator shall submit to the appro13 priate committees of Congress a report that— 

14 (A) addresses each factor described in para15 graph (2); and 

16 (B) is conducted in accordance with this 

17 section. 

18 (2) REQUIRED FACTORS.—The report shall in19 clude baseline and end-of-project data that meas20 ures— 

21 (A) the prevalence of moderate and severe 

22 hunger so as to provide an accurate accounting 

23 of project impact on household access to and con24 sumption of food during every month of the year 

25 prior to data collection; 
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1 (B) household ownership of and access to 

2 productive assets, including at a minimum land, 

3 livestock, homes, equipment, and other materials 

4 assets needed for income generation; 

5 (C) household incomes, including informal 

6 sources of employment; and 

7 (D) the productive assets of women using 

8 the Women’s Empowerment in Agriculture 

9 Index. 

10 (3) PUBLIC ACCESS TO RECORDS AND RE11 PORTS.—Not later than 90 days after the date on 

12 which the report is submitted under paragraph (1), 

13 the Administrator shall provide public access to the 

14 report. 

15 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $10,000,000 for each of fiscal years 2014 through 2018. 

18 SEC. 3209. UNDER SECRETARY OF AGRICULTURE FOR 

19 TRADE AND FOREIGN AGRICULTURAL AF20 FAIRS. 

21 (a) DEFINITION OF AGRICULTURE COMMITTEES AND

22 SUBCOMMITTEES.—In this section, the term ‘‘agriculture 

23 committees and subcommittees’’ means— 

24 (1) the Committee on Agriculture of the House of 

25 Representatives; 
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1 (2) the Committee on Agriculture, Nutrition, and 

2 Forestry of the Senate; and 

3 (3) the subcommittees on agriculture, rural de4 velopment, food and drug administration, and related 

5 agencies of the Committees on Appropriations of the 

6 House of Representatives and the Senate. 

7 (b) PROPOSAL.— 

8 (1) IN GENERAL.—The Secretary, in consultation 

9 with the agriculture committees and subcommittees, 

10 shall propose a reorganization of international trade 

11 functions for imports and exports of the Department 

12 of Agriculture. 

13 (2) CONSIDERATIONS.—In producing the pro14 posal under this section, the Secretary shall— 

15 (A) in recognition of the importance of ag16 ricultural exports to the farm economy and the 

17 economy as a whole, include a plan for the estab18 lishment of an Under Secretary of Agriculture 

19 for Trade and Foreign Agricultural Affairs; 

20 (B) take into consideration how the Under 

21 Secretary described in subparagraph (A) would 

22 serve as a multiagency coordinator of sanitary 

23 and phytosanitary issues and nontariff trade 

24 barriers in agriculture with respect to imports 

25 and exports of agricultural products; and 
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1 (C) take into consideration all implications 

2 of a reorganization described in paragraph (1) 

3 on domestic programs and operations of the De4 partment of Agriculture. 

5 (3) REPORT.—Not later than 180 days after the 

6 date of enactment of this Act and before the reorga7 nization described in paragraph (1) can take effect, 

8 the Secretary shall submit to the agriculture commit9 tees and subcommittees a report that— 

10 (A) includes the results of the proposal 

11 under this section; and 

12 (B) provides a notice of the reorganization 

13 plan. 

14 (4) IMPLEMENTATION.—Not later than 1 year 

15 after the date of the submission of the report under 

16 paragraph (3), the Secretary shall implement a reor17 ganization of international trade functions for im18 ports and exports of the Department of Agriculture, 

19 including the establishment of an Under Secretary of 

20 Agriculture for Trade and Foreign Agricultural Af21 fairs. 

22 (c) CONFIRMATION REQUIRED.—The position of Under 

23 Secretary of Agriculture for Trade and Foreign Agricul24 tural Affairs established under subsection (b)(2)(A) shall be 
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1 appointed by the President, by and with the advice and 

2 consent of the Senate. 

3 TITLE IV—NUTRITION 

4 Subtitle A—Supplemental Nutrition 

5 Assistance Program 

6 SEC. 4001. ACCESS TO GROCERY DELIVERY FOR HOME7 BOUND SENIORS AND INDIVIDUALS WITH 

8 DISABILITIES ELIGIBLE FOR SUPPLEMENTAL 

9 NUTRITION ASSISTANCE BENEFITS. 

10 (a) IN GENERAL.—Section 3(p) of the Food and Nutri11 tion Act of 2008 (7 U.S.C. 2012(p)) is amended— 

12 (1) in paragraph (3), by striking ‘‘and’’ at the 

13 end; 

14 (2) in paragraph (4), by striking the period at 

15 the end and inserting ‘‘; and’’; and 

16 (3) by inserting after paragraph (4) the fol17 lowing: 

18 ‘‘(5) a public or private nonprofit food pur19 chasing and delivery service that— 

20 ‘‘(A) purchases food for, and delivers the 

21 food to, individuals who are— 

22 ‘‘(i) unable to shop for food; and 

23 ‘‘(ii)(I) not less than 60 years of age; 

24 or 

25 ‘‘(II) individuals with disabilities; 
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1 ‘‘(B) clearly notifies the participating 

2 household at the time the household places a food 

3 order— 

4 ‘‘(i) of any delivery fee associated with 

5 the food purchase and delivery provided to 

6 the household by the service; and 

7 ‘‘(ii) that a delivery fee cannot be paid 

8 with benefits provided under the supple9 mental nutrition assistance program; and 

10 ‘‘(C) sells food purchased for the household 

11 at the price paid by the service for the food with12 out any additional cost markup.’’. 

13 (b) ISSUANCE OF REGULATIONS.—Not later than 1 

14 year after the date of enactment of this Act, the Secretary 

15 shall issue regulations that— 

16 (1) establish criteria to identify a food pur17 chasing and delivery service described in section 

18 3(p)(5) of the Food and Nutrition Act of 2008 (as 

19 added by subsection (a)(3)); and 

20 (2) establish procedures to ensure that the serv21 ice— 

22 (A) does not charge more for a food item 

23 than the price paid by the service for the food 

24 item; 
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1 (B) offers food delivery service at no or low 

2 cost to households under that Act; 

3 (C) ensures that benefits provided under the 

4 supplemental nutrition assistance program are 

5 used only to purchase food, as defined in section 

6 3 of that Act (7 U.S.C. 2012); 

7 (D) limits the purchase of food, and the de8 livery of the food, to households eligible to receive 

9 services described in section 3(p)(5) of that Act 

10 (as added by subsection (a)(3)); 

11 (E) has established adequate safeguards 

12 against fraudulent activities, including unau13 thorized use of electronic benefit cards issued 

14 under that Act; and 

15 (F) such other requirements as the Sec16 retary considers appropriate. 

17 (c) LIMITATION.—Before the issuance of regulations 

18 under subsection (b), the Secretary may not approve more 

19 than 20 food purchasing and delivery services described in 

20 section 3(p)(5) of the Food and Nutrition Act of 2008 (as 

21 added by subsection (a)(3)) to participate as retail food 

22 stores under the supplemental nutrition assistance pro23 gram. 
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1 (d) EFFECTIVE DATE.—This section and the amend2 ments made by this section take effect on the date that is 

3 30 days after the date of the enactment of this Act. 

4 SEC. 4002. FOOD DISTRIBUTION PROGRAM ON INDIAN RES5 ERVATIONS. 

6 (a) IN GENERAL.—Section 4(b)(6)(F) of the Food and 

7 Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended 

8 by striking ‘‘2012’’ and inserting ‘‘2018’’. 

9 (b) FEASABILITY STUDY FOR INDIAN TRIBES.—Sec10 tion 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 

11 2026) is amended by inserting at the end the following: 

12 ‘‘(l) FEASIBILITY STUDY FOR INDIAN TRIBES.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall conduct 

14 a study to determine the feasibility of a tribal dem15 onstration project for tribes, in lieu of State agencies 

16 or other administrating entities, to administer Fed17 eral food assistance programs, services, functions, and 

18 activities (or portions thereof). 

19 ‘‘(2) CONSIDERATIONS.—In conducting the 

20 study, the Secretary shall consider— 

21 ‘‘(A) the probable effects on specific pro22 grams and program beneficiaries of such a dem23 onstration project; 
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1 ‘‘(B) statutory, regulatory, or other impedi2 ments to implementation of such a demonstra3 tion project; 

4 ‘‘(C) strategies for implementing such a 

5 demonstration project; 

6 ‘‘(D) probable costs or savings associated 

7 with such a demonstration project; 

8 ‘‘(E) methods to assure quality and ac9 countability in such a demonstration project; 

10 and 

11 ‘‘(F) such other issues that may be deter12 mined by the Secretary or developed through 

13 consultation pursuant to paragraph (4). 

14 ‘‘(3) REPORT.—Not later than 18 months after 

15 the date of the enactment of this subsection, the Sec16 retary shall submit to the Committee on Agriculture 

17 of the House of Representatives and the Committee on 

18 Agriculture, Nutrition, and Forestry of the Senate a 

19 report that contains— 

20 ‘‘(A) the results of the study under this sub21 section; 

22 ‘‘(B) a list of programs, services, functions, 

23 and activities (or portions thereof) within each 

24 agency that would be feasible to include in a 

25 tribal demonstration project; 
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1 ‘‘(C) a list of programs, services, functions, 

2 and activities (or portions thereof) included in 

3 the list described in subparagraph (B) that could 

4 be included in a tribal demonstration project 

5 without amending existing law or without 

6 waiving regulations that the Secretary may not 

7 waive; and 

8 ‘‘(D) a list of legislative actions required in 

9 order to include those programs, services, func10 tions, and activities (or portions thereof) in11 cluded in the list described in subparagraph (B) 

12 but not included in the list described in subpara13 graph (C) in a tribal demonstration project. 

14 ‘‘(4) CONSULTATION WITH INDIAN TRIBES.— 

15 ‘‘(A) IN GENERAL.—Prior to consultation, 

16 the Secretary shall consult with Indian tribes to 

17 determine a protocol for consultation. 

18 ‘‘(B) REQUIREMENTS.—The protocol shall 

19 require, at a minimum, that— 

20 ‘‘(i) the government-to-government re21 lationship with Indian tribes forms the 

22 basis for the consultation process; 

23 ‘‘(ii) the Indian tribes and the Sec24 retary jointly conduct the consultations re25 quired by this paragraph; and 
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1 ‘‘(iii) the consultation process allows 

2 for separate and direct recommendations 

3 from the Indian tribes and other entities 

4 referenced in this subsection.’’. 

5 (c) TRADITIONAL AND LOCALLY-GROWN FOOD.—Sec6 tion 4(b)(6) of the Food and Nutrition Act of 2008 (7 

7 U.S.C. 2013(b)(6)) is amended— 

8 (1) by redesignating subparagraph (F) as sub9 paragraph (G); and 

10 (2) by inserting after subparagraph (E) the fol11 lowing: 

12 ‘‘(F) TRADITIONAL AND LOCALLY-GROWN

13 FOOD.—A tribe that is authorized to administer 

14 the distribution described in paragraph (1) shall 

15 have the option to use 5 percent of the program 

16 funding of the tribe to promote local purchase of 

17 traditional and locally-grown food to be used in 

18 the food package of the tribe by purchasing tra19 ditional and locally-grown foods from local Na20 tive American farmers, ranchers, and pro21 ducers.’’. 
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1 SEC. 4003. STANDARD UTILITY ALLOWANCES BASED ON 

2 THE RECEIPT OF ENERGY ASSISTANCE PAY3 MENTS. 

4 (a) STANDARD UTILITY ALLOWANCES IN THE SUPPLE5 MENTAL NUTRITION ASSISTANCE PROGRAM.—Section 

6 5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 

7 2014(e)(6)(C)) is amended— 

8 (1) in clause (i), by inserting ‘‘, subject to clause 

9 (iv)’’ after ‘‘Secretary’’; and 

10 (2) in clause (iv), by striking subclause (I) and 

11 inserting the following: 

12 ‘‘(I) IN GENERAL.—Subject to 

13 subclause (II), if a State agency elects 

14 to use a standard utility allowance 

15 that reflects heating and cooling costs, 

16 the standard utility allowance shall be 

17 made available to households that have 

18 received a payment, or on behalf of 

19 which a payment has been made, 

20 under the Low-Income Home Energy 

21 Assistance Act of 1981 (42 U.S.C. 8621 

22 et seq.) or other similar energy assist23 ance program, if in the current month 

24 or during the immediately preceding 

25 12 months, the household either has re26 ceived a payment, or a payment has 
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1 been made on behalf of the household, 

2 that is greater than $10 annually, as 

3 determined by the Secretary.’’. 

4 (b) CONFORMING AMENDMENT.—Section 2605(f)(2)(A) 

5 of the Low-Income Home Energy Assistance Act of 1981 

6 (42 U.S.C. 8624(f)(2)(A)) is amended by inserting before 

7 the semicolon at the end ‘‘, except that, for purposes of the 

8 supplemental nutrition assistance program established 

9 under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 

10 et seq.), such payments or allowances were greater than $10 

11 annually, consistent with section 5(e)(6)(C)(iv)(I) of that 

12 Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the 

13 Secretary of Agriculture.’’. 

14 (c) EFFECTIVE AND IMPLEMENTATION DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), this section and the amendments made by 

17 this section shall take effect beginning on October 1, 

18 2013, for all certification periods beginning after that 

19 date. 

20 (2) STATE OPTION TO DELAY IMPLEMENTATION

21 FOR CURRENT RECIPIENTS.—A State may, at the op22 tion of the State, implement a policy that eliminates 

23 or minimizes the effect of the amendments made by 

24 this section for households that receive a standard 

25 utility allowance as of the date of enactment of this 
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1 Act for not more than a 180-day period beginning on 

2 the date on which the amendments made by this sec3 tion would otherwise affect the benefits received by a 

4 household. 

5 SEC. 4004. ELIGIBILITY DISQUALIFICATIONS. 

6 Section 6(e)(3)(B) of Food and Nutrition Act of 2008 

7 (7 U.S.C. 2015(e)(3)(B)) is amended by striking ‘‘section’’ 

8 and inserting the following: ‘‘section, subject to the condi9 tion that the course or program of study— 

10 ‘‘(i) is part of a program of career and 

11 technical education (as defined in section 3 

12 of the Carl D. Perkins Career and Technical 

13 Education Act of 2006 (20 U.S.C. 2302)) 

14 that may be completed in not more than 4 

15 years at an institution of higher education 

16 (as defined in section 102 of the Higher 

17 Education Act of 1965 (20 U.S.C. 1002)); 

18 or 

19 ‘‘(ii) is limited to remedial courses, 

20 basic adult education, literacy, or English 

21 as a second language;’’. 
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1 SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSIST2 ANCE PROGRAM BENEFITS FOR LOTTERY OR 

3 GAMBLING WINNERS. 

4 (a) IN GENERAL.—Section 6 of the Food and Nutri5 tion Act of 2008 (7 U.S.C. 2015) is amended by adding 

6 at the end the following: 

7 ‘‘(r) INELIGIBILITY FOR BENEFITS DUE TO RECEIPT

8 OF SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS.— 

9 ‘‘(1) IN GENERAL.—Any household in which a 

10 member receives substantial lottery or gambling 

11 winnings, as determined by the Secretary, shall lose 

12 eligibility for benefits immediately upon receipt of the 

13 winnings. 

14 ‘‘(2) DURATION OF INELIGIBILITY.—A household 

15 described in paragraph (1) shall remain ineligible for 

16 participation until the household meets the allowable 

17 financial resources and income eligibility require18 ments under subsections (c), (d), (e), (f), (g), (i), (k), 

19 (l), (m), and (n) of section 5. 

20 ‘‘(3) AGREEMENTS.—As determined by the Sec21 retary, each State agency, to the maximum extent 

22 practicable, shall establish agreements with entities 

23 responsible for the regulation or sponsorship of gam24 ing in the State to determine whether individuals 

25 participating in the supplemental nutrition assist-
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1 ance program have received substantial lottery or 

2 gambling winnings.’’. 

3 (b) CONFORMING AMENDMENTS.—Section 5(a) of the 

4 Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) is 

5 amended in the second sentence by striking ‘‘sections 6(b), 

6 6(d)(2), and 6(g)’’ and inserting ‘‘subsections (b), (d)(2), 

7 (g), and (r) of section 6’’. 

8 SEC. 4006. RETAIL FOOD STORES. 

9 (a) DEFINITION OF RETAIL FOOD STORE.—Subsection 

10 (o)(1)(A) of section 3 of the Food and Nutrition Act of 2008 

11 (7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is 

12 amended by striking ‘‘at least 2’’ and inserting ‘‘at least 

13 3’’. 

14 (b) ALTERNATIVE BENEFIT DELIVERY.—Section 7(f) 

15 of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)) 

16 is amended— 

17 (1) by striking paragraph (2) and inserting the 

18 following: 

19 ‘‘(2) IMPOSITION OF COSTS.— 

20 ‘‘(A) IN GENERAL.—Except as provided in 

21 subparagraph (B), the Secretary shall require 

22 participating retail food stores (including res23 taurants participating in a State option res24 taurant program intended to serve the elderly, 

25 disabled, and homeless) to pay 100 percent of the 
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1 costs of acquiring, and arrange for the imple2 mentation of, electronic benefit transfer point-of3 sale equipment and supplies, including related 

4 services. 

5 ‘‘(B) EXEMPTIONS.—The Secretary may ex6 empt from subparagraph (A)— 

7 ‘‘(i) farmers’ markets and other direct8 to-consumer markets, military com9 missaries, nonprofit food buying coopera10 tives, and establishments, organizations, 

11 programs, or group living arrangements de12 scribed in paragraphs (5), (7), and (8) of 

13 section 3(k); and 

14 ‘‘(ii) establishments described in para15 graphs (3), (4), and (9) of section 3(k), 

16 other than restaurants participating in a 

17 State option restaurant program. 

18 ‘‘(C) INTERCHANGE FEES.—Nothing in this 

19 paragraph permits the charging of fees relating 

20 to the redemption of supplemental nutrition as21 sistance program benefits, in accordance with 

22 subsection (h)(13).’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(4) TERMINATION OF MANUAL VOUCHERS.— 
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1 ‘‘(A) IN GENERAL.—Effective beginning on 

2 the date of enactment of this paragraph, except 

3 as provided in subparagraph (B), no State shall 

4 issue manual vouchers to a household that re5 ceives supplemental nutrition assistance under 

6 this Act or allow retail food stores to accept 

7 manual vouchers as payment, unless the Sec8 retary determines that the manual vouchers are 

9 necessary, such as in the event of an electronic 

10 benefit transfer system failure or a disaster situ11 ation. 

12 ‘‘(B) EXEMPTIONS.—The Secretary may ex13 empt categories of retail food stores or individual 

14 retail food stores from subparagraph (A) based 

15 on criteria established by the Secretary. 

16 ‘‘(5) UNIQUE IDENTIFICATION NUMBER RE17 QUIRED.— 

18 ‘‘(A) IN GENERAL.—To enhance the anti19 fraud protections of the program, the Secretary 

20 shall require all parties providing electronic ben21 efit transfer services to provide for and maintain 

22 unique terminal identification number informa23 tion through the supplemental nutrition assist24 ance program electronic benefit transfer trans25 action routing system. 
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1 ‘‘(B) REGULATIONS.— 

2 ‘‘(i) IN GENERAL.—Not earlier than 2 

3 years after the date of enactment of this 

4 paragraph, the Secretary shall issue pro5 posed regulations to carry out this para6 graph. 

7 ‘‘(ii) COMMERCIAL PRACTICES.—In 

8 issuing regulations to carry out this para9 graph, the Secretary shall consider existing 

10 commercial practices for other point-of-sale 

11 debit transactions.’’. 

12 (c) ELECTRONIC BENEFIT TRANSFERS.—Section 

13 7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 

14 2016(h)(3)(B)) is amended by striking ‘‘is operational—’’ 

15 and all that follows through ‘‘(ii) in the case of other par16 ticipating stores,’’ and inserting ‘‘is operational’’. 

17 (d) APPROVAL OF RETAIL FOOD STORES AND WHOLE18 SALE FOOD CONCERNS.—Section 9 of the Food and Nutri19 tion Act of 2008 (7 U.S.C. 2018) is amended— 

20 (1) in the second sentence of subsection (a)(1)— 

21 (A) in subparagraph (A), by inserting ‘‘, 

22 including the depth of stock, variety of staple 

23 food items, and the sale of excepted items de24 scribed in 3(k)(1)’’ after ‘‘applicant’’; and 
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1 (B) by striking ‘‘; and (C)’’ and inserting 

2 ‘‘; (C) whether the applicant is located in an 

3 area with significantly limited access to food; 

4 and (D)’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(g) EBT SERVICE REQUIREMENT.—An approved re7 tail food store shall provide adequate EBT service as de8 scribed in section 7(h)(3)(B).’’. 

9 SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE. 

10 Section 7(h)(8) of the Food and Nutrition Act of 2008 

11 (7 U.S.C. 2016(h)(8)) is amended— 

12 (1) by striking the paragraph heading and in13 serting ‘‘REPLACEMENT OF CARDS.—’’; 

14 (2) by striking ‘‘A State’’ and inserting the fol15 lowing: 

16 ‘‘(A) FEES.—A State’’; and 

17 (3) by adding after subparagraph (A) (as so des18 ignated by paragraph (2)) the following: 

19 ‘‘(B) PURPOSEFUL LOSS OF CARDS.— 

20 ‘‘(i) IN GENERAL.—Subject to terms 

21 and conditions established by the Secretary 

22 in accordance with clause (ii), if a house23 hold makes excessive requests for replace24 ment of the electronic benefit transfer card 

25 of the household, the Secretary may require 
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1 a State agency to decline to issue a replace2 ment card to the household unless the house3 hold, upon request of the State agency, pro4 vides an explanation for the loss of the card. 

5 ‘‘(ii) REQUIREMENTS.—The terms and 

6 conditions established by the Secretary shall 

7 provide that— 

8 ‘‘(I) the household be given the op9 portunity to provide the requested ex10 planation and meet the requirements 

11 under this paragraph promptly; 

12 ‘‘(II) after an excessive number of 

13 lost cards, the head of the household 

14 shall be required to review program 

15 rights and responsibilities with State 

16 agency personnel authorized to make 

17 determinations under section 5(a); and 

18 ‘‘(III) any action taken, including 

19 actions required under section 6(b)(2), 

20 other than the withholding of the elec21 tronic benefit transfer card until an 

22 explanation described in subclause (I) 

23 is provided, shall be consistent with the 

24 due process protections under section 

25 6(b) or 11(e)(10), as appropriate. 
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1 ‘‘(C) PROTECTING VULNERABLE PERSONS.— 

2 In implementing this paragraph, a State agency 

3 shall act to protect homeless persons, persons 

4 with disabilities, victims of crimes, and other 

5 vulnerable persons who lose electronic benefit 

6 transfer cards but are not intentionally commit7 ting fraud. 

8 ‘‘(D) EFFECT ON ELIGIBILITY.—While a 

9 State may decline to issue an electronic benefits 

10 transfer card until a household satisfies the re11 quirements under this paragraph, nothing in 

12 this paragraph shall be considered a denial of, or 

13 limitation on, the eligibility for benefits under 

14 section 5.’’. 

15 SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL 

16 FOOD STORES. 

17 (a) MOBILE TECHNOLOGIES.—Section 7(h) of the Food 

18 and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended 

19 by section 4018(e)) is amended by adding at the end the 

20 following: 

21 ‘‘(14) MOBILE TECHNOLOGIES.— 

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), the Secretary shall approve retail 

24 food stores to redeem benefits through electronic 

25 means other than wired point of sale devices for 
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1 electronic benefit transfer transactions, if the re2 tail food stores— 

3 ‘‘(i) establish recipient protections re4 garding privacy, ease of use, access, and 

5 support similar to the protections provided 

6 for transactions made in retail food stores; 

7 ‘‘(ii) bear the costs of obtaining, in8 stalling, and maintaining mobile tech9 nologies, including mechanisms needed to 

10 process EBT cards and transaction fees; 

11 ‘‘(iii) demonstrate the foods purchased 

12 with benefits issued under this section 

13 through mobile technologies are purchased 

14 at a price not higher than the price of the 

15 same food purchased by other methods used 

16 by the retail food store, as determined by 

17 the Secretary; 

18 ‘‘(iv) provide adequate documentation 

19 for each authorized transaction, as deter20 mined by the Secretary; and 

21 ‘‘(v) meet other criteria as established 

22 by the Secretary. 

23 ‘‘(B) DEMONSTRATION PROJECT ON ACCEPT24 ANCE OF BENEFITS OF MOBILE TRANSACTIONS.— 
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1 ‘‘(i) IN GENERAL.—Before authorizing 

2 implementation of subparagraph (A) in all 

3 States, the Secretary shall pilot the use of 

4 mobile technologies determined by the Sec5 retary to be appropriate to test the feasi6 bility and implications for program integ7 rity, by allowing retail food stores to accept 

8 benefits from recipients of supplemental nu9 trition assistance through mobile trans10 actions. 

11 ‘‘(ii) DEMONSTRATION PROJECTS.—To 

12 be eligible to participate in a demonstration 

13 project under clause (i), a retail food store 

14 shall submit to the Secretary for approval a 

15 plan that includes— 

16 ‘‘(I) a description of the tech17 nology; 

18 ‘‘(II) the manner by which the re19 tail food store will provide proof of the 

20 transaction to households; 

21 ‘‘(III) the provision of data to the 

22 Secretary, consistent with requirements 

23 established by the Secretary, in a man24 ner that allows the Secretary to evalu25 ate the impact of the demonstration on 
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1 participant access, ease of use, and 

2 program integrity; and 

3 ‘‘(IV) such other criteria as the 

4 Secretary may require. 

5 ‘‘(iii) DATE OF COMPLETION.—The 

6 demonstration projects under this subpara7 graph shall be completed and final reports 

8 submitted to the Secretary by not later than 

9 July 1, 2015. 

10 ‘‘(C) REPORT TO CONGRESS.—The Sec11 retary shall— 

12 ‘‘(i) by not later than January 1, 

13 2016, authorize implementation of subpara14 graph (A) in all States, unless the Secretary 

15 makes a finding, based on the data provided 

16 under subparagraph (B), that implementa17 tion in all States is not in the best interest 

18 of the supplemental nutrition assistance 

19 program; and 

20 ‘‘(ii) if the determination made in 

21 clause (i) is not to implement subparagraph 

22 (A) in all States, submit a report to the 

23 Committee on Agriculture of the House of 

24 Representatives and the Committee on Agri-
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1 culture, Nutrition, and Forestry of the Sen2 ate that includes the basis of the finding.’’. 

3 (b) ACCEPTANCE OF BENEFITS THROUGH ON-LINE

4 TRANSACTIONS.— 

5 (1) IN GENERAL.—Section 7 of the Food and Nu6 trition Act of 2008 (7 U.S.C. 2016) is amended by 

7 adding at the end the following: 

8 ‘‘(k) OPTION TO ACCEPT PROGRAM BENEFITS

9 THROUGH ON-LINE TRANSACTIONS.— 

10 ‘‘(1) IN GENERAL.—Subject to paragraph (4), the 

11 Secretary shall approve retail food stores to accept 

12 benefits from recipients of supplemental nutrition as13 sistance through on-line transactions. 

14 ‘‘(2) REQUIREMENTS TO ACCEPT BENEFITS.—A 

15 retail food store seeking to accept benefits from recipi16 ents of supplemental nutrition assistance through on17 line transactions shall— 

18 ‘‘(A) establish recipient protections regard19 ing privacy, ease of use, access, and support 

20 similar to the protections provided for trans21 actions made in retail food stores; 

22 ‘‘(B) ensure benefits are not used to pay de23 livery, ordering, convenience, or other fees or 

24 charges; 
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1 ‘‘(C) clearly notify participating households 

2 at the time a food order is placed— 

3 ‘‘(i) of any delivery, ordering, conven4 ience, or other fee or charge associated with 

5 the food purchase; and 

6 ‘‘(ii) that any such fee cannot be paid 

7 with benefits provided under this Act; 

8 ‘‘(D) ensure the security of on-line trans9 actions by using the most effective technology 

10 available that the Secretary considers appro11 priate and cost-effective and that is comparable 

12 to the security of transactions at retail food 

13 stores; and 

14 ‘‘(E) meet other criteria as established by 

15 the Secretary. 

16 ‘‘(3) STATE AGENCY ACTION.—Each State agency 

17 shall ensure that recipients of supplemental nutrition 

18 assistance can use benefits on-line as described in this 

19 subsection as appropriate. 

20 ‘‘(4) DEMONSTRATION PROJECT ON ACCEPTANCE

21 OF BENEFITS THROUGH ON-LINE TRANSACTIONS.— 

22 ‘‘(A) IN GENERAL.—Before the Secretary 

23 authorizes implementation of paragraph (1) in 

24 all States, the Secretary shall carry out a num25 ber of demonstration projects as determined by 
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† HR 2642 EAS 

1 the Secretary to test the feasibility of allowing 

2 retail food stores to accept benefits through on3 line transactions. 

4 ‘‘(B) DEMONSTRATION PROJECTS.—To be 

5 eligible to participate in a demonstration project 

6 under subparagraph (A), a retail food store shall 

7 submit to the Secretary for approval a plan that 

8 includes— 

9 ‘‘(i) a method of ensuring that benefits 

10 may be used to purchase only eligible items 

11 under this Act; 

12 ‘‘(ii) a description of the method of 

13 educating participant households about the 

14 availability and operation of on-line pur15 chasing; 

16 ‘‘(iii) adequate testing of the on-line 

17 purchasing option prior to implementation; 

18 ‘‘(iv) the provision of data as requested 

19 by the Secretary for purposes of analyzing 

20 the impact of the project on participant ac21 cess, ease of use, and program integrity; 

22 ‘‘(v) reports on progress, challenges, 

23 and results, as determined by the Secretary; 

24 and 
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1 ‘‘(vi) such other criteria, including se2 curity criteria, as established by the Sec3 retary. 

4 ‘‘(C) DATE OF COMPLETION.—The dem5 onstration projects under this paragraph shall be 

6 completed and final reports submitted to the Sec7 retary by not later than July 1, 2015. 

8 ‘‘(5) REPORT TO CONGRESS.—The Secretary 

9 shall— 

10 ‘‘(A) by not later than January 1, 2016, 

11 authorize implementation of paragraph (1) in 

12 all States, unless the Secretary makes a finding, 

13 based on the data provided under paragraph (4), 

14 that implementation in all States is not in the 

15 best interest of the supplemental nutrition assist16 ance program; and 

17 ‘‘(B) if the determination made in subpara18 graph (A) is not to implement in all States, sub19 mit a report to the Committee on Agriculture of 

20 the House of Representatives and the Committee 

21 on Agriculture, Nutrition, and Forestry of the 

22 Senate that includes the basis of the finding.’’. 

23 (2) CONFORMING AMENDMENTS.— 

24 (A) Section 7(b) of the Food and Nutrition 

25 Act of 2008 (7 U.S.C. 2016(b)) is amended by 
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1 striking ‘‘purchase food in retail food stores’’ and 

2 inserting ‘‘purchase food from retail food stores’’. 

3 (B) Section 10 of the Food and Nutrition 

4 Act of 2008 (7 U.S.C. 2019) is amended in the 

5 first sentence by inserting ‘‘retail food stores au6 thorized to accept and redeem benefits through 

7 on-line transactions shall be authorized to accept 

8 benefits prior to the delivery of food if the deliv9 ery occurs within a reasonable time of the pur10 chase, as determined by the Secretary,’’ after 

11 ‘‘food so purchased,’’. 

12 (c) SAVINGS CLAUSE.—Nothing in this section or an 

13 amendment made by this section alter any requirements of 

14 the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 

15 unless specifically authorized in this section or an amend16 ment made by this section. 

17 SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMU18 NITY-SUPPORTED AGRICULTURE SHARE. 

19 Subsection (o)(4) of section 3 of the Food and Nutri20 tion Act of 2008 (7 U.S.C. 2012) (as redesignated by section 

21 4018(a)(4)) is amended by inserting ‘‘, or agricultural pro22 ducers who market agricultural products directly to con23 sumers’’ after ‘‘such food’’. 
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1 SEC. 4010. RESTAURANT MEALS PROGRAM. 

2 (a) IN GENERAL.—Section 11(e) of the Food and Nu3 trition Act of 2008 (7 U.S.C. 2020(e)) is amended— 

4 (1) in paragraph (22), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (23), by striking the period at 

7 the end of subparagraph (C) and inserting ‘‘; and’’; 

8 and 

9 (3) by adding at the end the following: 

10 ‘‘(24) if the State elects to carry out a program 

11 to contract with private establishments to offer meals 

12 at concessional prices, as described in paragraphs 3, 

13 4, and 9 of section 3(k)— 

14 ‘‘(A) the plans of the State agency for oper15 ating the program, including— 

16 ‘‘(i) documentation of a need that eli17 gible homeless, elderly, and disabled clients 

18 are underserved in a particular geographic 

19 area; 

20 ‘‘(ii) the manner by which the State 

21 agency will limit participation to only 

22 those private establishments that the State 

23 determines necessary to meet the need iden24 tified in clause (i); and 

25 ‘‘(iii) any other conditions the Sec26 retary may prescribe, such as the level of se-
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† HR 2642 EAS 

1 curity necessary to ensure that only eligible 

2 recipients participate in the program; and 

3 ‘‘(B) a report by the State agency to the 

4 Secretary annually, the schedule of which shall 

5 be established by the Secretary, that includes— 

6 ‘‘(i) the number of households and in7 dividual recipients authorized to partici8 pate in the program, including any infor9 mation on whether the individual recipient 

10 is elderly, disabled, or homeless; and 

11 ‘‘(ii) an assessment of whether the pro12 gram is meeting an established need, as doc13 umented under subparagraph (A)(i).’’. 

14 (b) APPROVAL OF RETAIL FOOD STORES AND WHOLE15 SALE FOOD CONCERNS.—Section 9 of the Food and Nutri16 tion Act of 2008 (7 U.S.C. 2018) (as amended by section 

17 4005(d)(3)) is amended by adding at the end the following: 

18 ‘‘(h) PRIVATE ESTABLISHMENTS.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2), no 

20 private establishment that contracts with a State 

21 agency to offer meals at concessional prices as de22 scribed in paragraphs 3, 4, and 9 of section 3(k) may 

23 be authorized to accept and redeem benefits unless the 

24 Secretary determines that the participation of the 
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1 private establishment is required to meet a docu2 mented need in accordance with section 11(e)(24). 

3 ‘‘(2) EXISTING CONTRACTS.— 

4 ‘‘(A) IN GENERAL.—If, on the day before the 

5 date of enactment of this subsection, a State has 

6 entered into a contract with a private establish7 ment described in paragraph (1) and the Sec8 retary has not determined that the participation 

9 of the private establishment is necessary to meet 

10 a documented need in accordance with section 

11 11(e)(24), the Secretary shall allow the operation 

12 of the private establishment to continue without 

13 that determination of need for a period not to 

14 exceed 180 days from the date on which the Sec15 retary establishes determination criteria, by reg16 ulation, under section 11(e)(24). 

17 ‘‘(B) JUSTIFICATION.—If the Secretary 

18 makes a determination to terminate a contract 

19 with a private establishment that is in effect on 

20 the date of enactment of this subsection, the Sec21 retary shall provide justification to the State in 

22 which the private establishment is located for 

23 that termination. 

24 ‘‘(3) REPORT TO CONGRESS.—Not later than 90 

25 days after September 30, 2013, and 90 days after the 
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1 last day of each fiscal year thereafter, the Secretary 

2 shall report to the Committee on Agriculture of the 

3 House of Representatives and the Committee on Agri4 culture, Nutrition, and Forestry of the Senate on the 

5 effectiveness of a program under this subsection using 

6 any information received from States under section 

7 11(e)(24) as well as any other information the Sec8 retary may have relating to the manner in which 

9 benefits are used.’’. 

10 (c) CONFORMING AMENDMENTS.—Section 3(k) of the 

11 Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is 

12 amended by inserting ‘‘subject to section 9(h)’’ after 

13 ‘‘concessional prices’’ each place it appears. 

14 SEC. 4011. QUALITY CONTROL STANDARDS. 

15 (a) IN GENERAL.—Section 16(c)(1)(D)(i) of the Food 

16 and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is 

17 amended by striking subclause (I). 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Section 13(a)(1) of the Food and Nutrition 

20 Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the 

21 first sentence by striking ‘‘section 16(c)(1)(D)(i)(III)’’ 

22 and inserting ‘‘section 16(c)(1)(D)(i)(II)’’. 

23 (2) Section 16(c)(1) of the Food and Nutrition 

24 Act of 2008 (7 U.S.C. 2025(c)(1)) is amended— 

25 (A) in subparagraph (D)(i)— 
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1 (i) by redesignating subclauses (II) 

2 through (IV) as subclauses (I) through (III), 

3 respectively; and 

4 (ii) in subclause (III) (as so redesig5 nated), by striking ‘‘through (III)’’ and in6 serting ‘‘and (II)’’; 

7 (B) in subparagraph (E)(i), by striking 

8 ‘‘(D)(i)(III)’’ and inserting ‘‘(D)(i)(II)’’; and 

9 (C) in subparagraph (F), by striking 

10 ‘‘(D)(i)(II)’’ each place it appears and inserting 

11 ‘‘(D)(i)(I)’’. 

12 SEC. 4012. PERFORMANCE BONUS PAYMENTS. 

13 Section 16(d) of the Food and Nutrition Act of 2008 

14 (7 U.S.C. 2025(d)) is amended by adding at the end the 

15 following: 

16 ‘‘(5) USE OF PERFORMANCE BONUS PAYMENTS.— 

17 A State agency may use a performance bonus pay18 ment received under this subsection only to carry out 

19 the program established under this Act, including in20 vestments in— 

21 ‘‘(A) technology; 

22 ‘‘(B) improvements in administration and 

23 distribution; and 

24 ‘‘(C) actions to prevent fraud, waste, and 

25 abuse.’’. 
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1 SEC. 4013. FUNDING OF EMPLOYMENT AND TRAINING PRO2 GRAMS. 

3 Section 16(h)(1)(A) of the Food and Nutrition Act of 

4 2008 (7 U.S.C. 2025(h)(1)(A)) is amended by striking ‘‘sec5 tion 18(a)(1), $90,000,000’’ and all that follows through the 

6 end of the subparagraph and inserting ‘‘section 18(a)(1)— 

7 ‘‘(i) for each of fiscal years 2014 

8 through 2017, $90,000,000; and 

9 ‘‘(ii) for fiscal year 2018 and each fis10 cal year thereafter, $80,000,000.’’. 

11 SEC. 4014. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 18(a)(1) of the Food and Nutrition Act of 2008 

13 (7 U.S.C. 2027(a)(1)) is amended in the first sentence by 

14 striking ‘‘2012’’ and inserting ‘‘2018’’. 

15 SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

16 Section 25 of the Food and Nutrition Act of 2008 (7 

17 U.S.C. 2034) is amended— 

18 (1) in subsection (a)— 

19 (A) in paragraph (1)(B)— 

20 (i) in clause (i)— 

21 (I) in subclause (I), by inserting 

22 after ‘‘individuals’’ the following: 

23 ‘‘through food distribution, community 

24 outreach to assist in participation in 

25 Federally assisted nutrition programs, 
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1 or improving access to food as part of 

2 a comprehensive service;’’; and 

3 (II) in subclause (III), by insert4 ing ‘‘food access,’’ after ‘‘food,’’; and 

5 (ii) in clause (ii), by striking subclause 

6 (I) and inserting the following: 

7 ‘‘(I) equipment necessary for the 

8 efficient operation of a project;’’; and 

9 (B) by striking paragraph (2) and inserting 

10 the following: 

11 ‘‘(2) HUNGER-FREE COMMUNITIES GOAL.—The 

12 term ‘hunger-free communities goal’ means any of the 

13 14 goals described in House Concurrent Resolution 

14 302, 102nd Congress, agreed to October 5, 1992.’’; 

15 (2) in subsection (c)— 

16 (A) in the matter preceding paragraph (1), 

17 by inserting ‘‘public food program service pro18 vider or a’’ before ‘‘private’’; 

19 (B) in paragraph (1)— 

20 (i) in subparagraph (A), by striking 

21 ‘‘or’’ after the semicolon at the end; 

22 (ii) in subparagraph (B), by inserting 

23 ‘‘or’’ after the semicolon at the end; and 

24 (iii) by adding at the end the fol25 lowing: 
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1 ‘‘(C) efforts to reduce food insecurity in the 

2 community, including food distribution, improv3 ing access to services, or coordinating services 

4 and programs;’’; 

5 (C) in paragraph (2), by striking ‘‘and’’ 

6 after the semicolon at the end; 

7 (D) in paragraph (3), by striking the pe8 riod at the end and inserting ‘‘; and’’; and 

9 (E) by adding at the end the following: 

10 ‘‘(4) collaborate with 1 or more local partner or11 ganizations to achieve at least 1 hunger-free commu12 nities goal.’’; 

13 (3) in subsection (d)— 

14 (A) in paragraph (3), by striking ‘‘or’’ after 

15 the semicolon at the end; 

16 (B) in paragraph (4), by striking the period 

17 at the end and inserting ‘‘; or’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(5) develop new resources and strategies to help 

20 reduce food insecurity in the community and prevent 

21 food insecurity in the future by— 

22 ‘‘(A) developing creative food resources; 

23 ‘‘(B) coordinating food services with park 

24 and recreation programs and other community25 based outlets to reduce barriers to access; or 
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1 ‘‘(C) creating nutrition education programs 

2 for at- risk populations to enhance food-pur3 chasing and food- preparation skills and to 

4 heighten awareness of the connection between diet 

5 and health.’’; 

6 (4) in subsection (f)(2), by striking ‘‘3 years’’ 

7 and inserting ‘‘5 years’’; and 

8 (5) by striking subsections (h) and (i) and in9 serting the following: 

10 ‘‘(h) REPORTS TO CONGRESS.—Not later than Sep11 tember 30, 2014, and each year thereafter, the Secretary 

12 shall submit to Congress a report that describes each grant 

13 made under this section, including— 

14 ‘‘(1) a description of any activity funded; 

15 ‘‘(2) the degree of success of each activity funded 

16 in achieving hunger-free community goals; and 

17 ‘‘(3) the degree of success in improving the long18 term capacity of a community to address food and 

19 agriculture problems related to hunger or access to 

20 healthy food.’’. 

21 SEC. 4016. EMERGENCY FOOD ASSISTANCE. 

22 (a) PURCHASE OF COMMODITIES.—Section 27(a) of 

23 the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) is 

24 amended— 
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1 (1) in paragraph (1), by striking ‘‘2008 through 

2 2012’’ and inserting ‘‘2014 through 2018’’; 

3 (2) by striking paragraph (2) and inserting the 

4 following: 

5 ‘‘(2) AMOUNTS.—The Secretary shall use to 

6 carry out paragraph (1)— 

7 ‘‘(A) for fiscal year 2013, $265,750,000; and 

8 ‘‘(B) for each subsequent fiscal year, the dol9 lar amount of commodities specified in subpara10 graph (A) adjusted by the percentage by which 

11 the thrifty food plan has been adjusted under sec12 tion 3(u)(4) between June 30, 2013, and June 30 

13 of the immediately preceding fiscal year, and 

14 subsequently increased by— 

15 ‘‘(i) for fiscal year 2014, $22,000,000; 

16 ‘‘(ii) for fiscal year 2015, $18,000,000; 

17 ‘‘(iii) for fiscal year 2016, $10,000,000; 

18 and 

19 ‘‘(iv) for fiscal year 2017, 

20 $4,000,000.’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(3) FUNDS AVAILABILITY.—For purposes of the 

23 funds described in this subsection, the Secretary 

24 shall— 
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1 ‘‘(A) make the funds available for 2 fiscal 

2 years; and 

3 ‘‘(B) allow States to carry over unexpended 

4 balances to the next fiscal year pursuant to such 

5 terms and conditions as are determined by the 

6 Secretary.’’. 

7 (b) EMERGENCY FOOD PROGRAM INFRASTRUCTURE

8 GRANTS.—Section 209(d) of the Emergency Food Assist9 ance Act of 1983 (7 U.S.C. 7511a(d)) is amended by strik10 ing ‘‘2012’’ and inserting ‘‘2018’’. 

11 SEC. 4017. NUTRITION EDUCATION. 

12 Section 28(b) of the Food and Nutrition Act of 2008 

13 (7 U.S.C. 2036a(b)) is amended by inserting ‘‘and physical 

14 activity’’ after ‘‘healthy food choices’’. 

15 SEC. 4018. RETAIL FOOD STORE AND RECIPIENT TRAF16 FICKING. 

17 The Food and Nutrition Act of 2008 (7 U.S.C. 2011 

18 et seq.) is amended by adding at the end the following: 

19 ‘‘SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAF20 FICKING. 

21 ‘‘(a) PURPOSE.—The purpose of this section is to pro22 vide the Department of Agriculture with additional re23 sources to prevent trafficking in violation of this Act by 

24 strengthening recipient and retail food store program integ25 rity. 
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1 ‘‘(b) USE OF FUNDS.— 

2 ‘‘(1) IN GENERAL.—Additional funds are pro3 vided under this section to supplement the retail food 

4 store and recipient integrity activities of the Depart5 ment. 

6 ‘‘(2) INFORMATION TECHNOLOGIES.—The Sec7 retary shall use an appropriate amount of the funds 

8 provided under this section to employ information 

9 technologies known as data mining and data 

10 warehousing and other available information tech11 nologies to administer the supplemental nutrition as12 sistance program and enforce regulations promulgated 

13 under section 4(c). 

14 ‘‘(c) FUNDING.— 

15 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

16 There is authorized to be appropriated to carry out 

17 this section $12,000,000 for each of fiscal years 2014 

18 through 2018. 

19 ‘‘(2) MANDATORY FUNDING.— 

20 ‘‘(A) IN GENERAL.—Out of any funds in the 

21 Treasury not otherwise appropriated, the Sec22 retary of the Treasury shall transfer to the Sec23 retary to carry out this section not less than 

24 $5,000,000 for fiscal year 2014, to remain avail25 able until expended. 
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1 ‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec2 retary shall be entitled to receive, shall accept, 

3 and shall use to carry out this section the funds 

4 transferred under subparagraph (A), without 

5 further appropriation. 

6 ‘‘(C) MAINTENANCE OF FUNDING.—The 

7 funding provided under subparagraph (A) shall 

8 supplement (and not supplant) other Federal 

9 funding for programs carried out under this 

10 Act.’’. 

11 SEC. 4019. TECHNICAL AND CONFORMING AMENDMENTS. 

12 (a) Section 3 of the Food and Nutrition Act of 2008 

13 (7 U.S.C. 2012) is amended— 

14 (1) in subsection (g), by striking ‘‘coupon,’’ and 

15 inserting ‘‘coupon’’; 

16 (2) in subsection (k)(7), by striking ‘‘or are’’ and 

17 inserting ‘‘and’’; 

18 (3) by striking subsection (l); 

19 (4) by redesignating subsections (m) through (t) 

20 as subsections (l) through (s), respectively; and 

21 (5) by inserting after subsection (s) (as so redes22 ignated) the following: 

23 ‘‘(t) ‘Supplemental nutrition assistance program’ 

24 means the program operated pursuant to this Act.’’. 
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1 (b) Section 4(a) of the Food and Nutrition Act of 2008 

2 (7 U.S.C. 2013(a)) is amended in the last sentence by strik3 ing ‘‘benefits’’ and inserting ‘‘Benefits’’. 

4 (c) Section 5 of the Food and Nutrition Act of 2008 

5 (7 U.S.C. 2014) is amended— 

6 (1) in the last sentence of subsection (i)(2)(D), by 

7 striking ‘‘section 13(b)(2)’’ and inserting ‘‘section 

8 13(b)’’; and 

9 (2) in subsection (k)(4)(A), by striking ‘‘para10 graph (2)(H)’’ and inserting ‘‘paragraph (2)(G)’’. 

11 (d) Section 6(d)(4) of the Food and Nutrition Act of 

12 2008 (7 U.S.C. 2015(d)(4)) is amended in subparagraphs 

13 (B)(vii) and (F)(iii) by indenting both clauses appro14 priately. 

15 (e) Section 7(h) of the Food and Nutrition Act of 2008 

16 (7 U.S.C. 2016(h)) is amended by redesignating the second 

17 paragraph (12) (relating to interchange fees) as paragraph 

18 (13). 

19 (f) Section 9(a) of the Food and Nutrition Act of 2008 

20 (7 U.S.C. 2018(a)) is amended by indenting paragraph (3) 

21 appropriately. 

22 (g) Section 12 of the Food and Nutrition Act of 2008 

23 (7 U.S.C. 2021) is amended— 

24 (1) in subsection (b)(3)(C), by striking ‘‘civil 

25 money penalties’’ and inserting ‘‘civil penalties’’; and 
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1 (2) in subsection (g)(1), by striking ‘‘(7 U.S.C. 

2 1786)’’ and inserting ‘‘(42 U.S.C. 1786)’’. 

3 (h) Section 15(b)(1) of the Food and Nutrition Act of 

4 2008 (7 U.S.C. 2024(b)(1)) is amended in the first sentence 

5 by striking ‘‘an benefit’’ and inserting ‘‘a benefit’’. 

6 (i) Section 16(a) of the Food and Nutrition Act of 2008 

7 (7 U.S.C. 2025(a)) is amended in the proviso following 

8 paragraph (8) by striking ‘‘as amended.’’. 

9 (j) Section 18(e) of the Food and Nutrition Act of 2008 

10 (7 U.S.C. 2027(e)) is amended in the first sentence by strik11 ing ‘‘sections 7(f)’’ and inserting ‘‘section 7(f)’’. 

12 (k) Section 22(b)(10)(B)(i) of the Food and Nutrition 

13 Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the 

14 last sentence by striking ‘‘Food benefits’’ and inserting 

15 ‘‘Benefits’’. 

16 (l) Section 26(f)(3)(C) of the Food and Nutrition Act 

17 of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking 

18 ‘‘subsection’’ and inserting ‘‘subsections’’. 

19 (m) Section 27(a)(1) of the Food and Nutrition Act 

20 of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking 

21 ‘‘(Public Law 98–8; 7 U.S.C. 612c note)’’ and inserting ‘‘(7 

22 U.S.C. 7515)’’. 

23 (n) Section 509 of the Older Americans Act of 1965 

24 (42 U.S.C. 3056g) is amended in the section heading by 

25 striking ‘‘FOOD STAMP PROGRAMS’’ and inserting 
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1 ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PRO2 GRAMS’’. 

3 (o) Section 4115(c)(2)(H) of the Food, Conservation, 

4 and Energy Act of 2008 (Public Law 110–246; 122 Stat. 

5 1871) is amended by striking ‘‘531’’ and inserting ‘‘454’’. 

6 SEC. 4020. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN 

7 CONVICTED FELONS. 

8 Section 6 of the Food and Nutrition Act of 2008 (7 

9 U.S.C. 2015) (as amended by section 4004) is amended by 

10 adding at the end the following: 

11 ‘‘(s) DISQUALIFICATION FOR CERTAIN CONVICTED

12 FELONS.— 

13 ‘‘(1) IN GENERAL.—An individual shall not be 

14 eligible for benefits under this Act if the individual is 

15 convicted of— 

16 ‘‘(A) aggravated sexual abuse under section 

17 2241 of title 18, United States Code; 

18 ‘‘(B) murder under section 1111 of title 18, 

19 United States Code; 

20 ‘‘(C) an offense under chapter 110 of title 

21 18, United States Code; 

22 ‘‘(D) a Federal or State offense involving 

23 sexual assault, as defined in 40002(a) of the Vio24 lence Against Women Act of 1994 (42 U.S.C. 

25 13925(a)); or 
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1 ‘‘(E) an offense under State law determined 

2 by the Attorney General to be substantially simi3 lar to an offense described in subparagraph (A), 

4 (B), or (C). 

5 ‘‘(2) EFFECTS ON ASSISTANCE AND BENEFITS

6 FOR OTHERS.—The amount of benefits otherwise re7 quired to be provided to an eligible household under 

8 this Act shall be determined by considering the indi9 vidual to whom paragraph (1) applies not to be a 

10 member of such household, except that the income and 

11 resources of the individual shall be considered to be 

12 income and resources of the household. 

13 ‘‘(3) ENFORCEMENT.—Each State shall require 

14 each individual applying for benefits under this Act, 

15 during the application process, to state, in writing, 

16 whether the individual, or any member of the house17 hold of the individual, has been convicted of a crime 

18 described in paragraph (1).’’. 

19 Subtitle B—Commodity Distribution 

20 Programs 

21 SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. 

22 Section 4(a) of the Agriculture and Consumer Protec23 tion Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) 

24 is amended in the first sentence by striking ‘‘2012’’ and 

25 inserting ‘‘2018’’. 
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1 SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 

2 Section 5 of the Agriculture and Consumer Protection 

3 Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is 

4 amended— 

5 (1) in paragraphs (1) and (2)(B) of subsection 

6 (a), by striking ‘‘2012’’ each place it appears and in7 serting ‘‘2018’’; 

8 (2) in the first sentence of subsection (d)(2), by 

9 striking ‘‘2012’’ and inserting ‘‘2018’’; 

10 (3) by striking subsection (g) and inserting the 

11 following: 

12 ‘‘(g) ELIGIBILITY.—Except as provided in subsection 

13 (m), the States shall only provide assistance under the com14 modity supplemental food program to low-income persons 

15 aged 60 and older.’’; and 

16 (4) by adding at the end the following: 

17 ‘‘(m) PHASE-OUT.—Notwithstanding any other provi18 sion of law, an individual who receives assistance under 

19 the commodity supplemental food program on the day be20 fore the date of enactment of this subsection shall continue 

21 to receive that assistance until the date on which the indi22 vidual is no longer eligible for assistance under the eligi23 bility requirements for the program in effect on the day be24 fore the date of enactment of this subsection.’’. 
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1 SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO 

2 SPECIAL NUTRITION PROJECTS. 

3 Section 1114(a)(2)(A) of the Agriculture and Food Act 

4 of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sen5 tence by striking ‘‘2012’’ and inserting ‘‘2018’’. 

6 SEC. 4104. PROCESSING OF COMMODITIES. 

7 (a) IN GENERAL.—Section 17 of the Commodity Dis8 tribution Reform Act and WIC Amendments of 1987 (7 

9 U.S.C. 612c note; Public Law 100–237) is amended— 

10 (1) in the section heading, by inserting ‘‘AND

11 PROCESSING’’ after ‘‘DONATIONS’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(c) PROCESSING.— 

14 ‘‘(1) IN GENERAL.—For any program included 

15 under subsection (b), the Secretary may, notwith16 standing any other provision of Federal or State law 

17 relating to the procurement of goods and services— 

18 ‘‘(A) retain title to commodities delivered to 

19 a processor, on behalf of a State (including a 

20 State distributing agency and a recipient agen21 cy), until such time as end products containing 

22 the commodities, or similar commodities as ap23 proved by the Secretary, are delivered to a State 

24 distributing agency or to a recipient agency; and 

25 ‘‘(B) promulgate regulations to ensure ac26 countability for commodities provided to a proc-
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1 essor for processing into end products, and to fa2 cilitate processing of commodities into end prod3 ucts for use by recipient agencies. 

4 ‘‘(2) REGULATIONS.—The regulations described 

5 in paragraph (1)(B) may provide that— 

6 ‘‘(A) a processor that receives commodities 

7 for processing into end products, or provides a 

8 service with respect to the commodities or end 

9 products, in accordance with the agreement of 

10 the processor with a State distributing agency or 

11 a recipient agency, provide to the Secretary a 

12 bond or other means of financial assurance to 

13 protect the value of the commodities; and 

14 ‘‘(B) in the event a processor fails to deliver 

15 to a State distributing agency or a recipient 

16 agency an end product in conformance with the 

17 processing agreement entered into under this Act, 

18 the Secretary— 

19 ‘‘(i) take action with respect to the 

20 bond or other means of financial assurance 

21 pursuant to regulations promulgated under 

22 this subsection; and 

23 ‘‘(ii) distribute any proceeds obtained 

24 by the Secretary to 1 or more State distrib-
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1 uting agencies and recipient agencies, as de2 termined appropriate by the Secretary.’’. 

3 (b) DEFINITIONS.—Section 18 of the Commodity Dis4 tribution Reform Act and WIC Amendments of 1987 (7 

5 U.S.C. 612c note; Public Law 100–237) is amended by 

6 striking paragraphs (1) and (2) and inserting the following: 

7 ‘‘(1) COMMODITIES.—The term ‘commodities’ 

8 means agricultural commodities and their products 

9 that are donated by the Secretary for use by recipient 

10 agencies. 

11 ‘‘(2) END PRODUCT.—The term ‘end product’ 

12 means a food product that contains processed com13 modities.’’. 

14 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

15 Section 3 of the Commodity Distribution Reform Act and 

16 WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 

17 100–237) is amended— 

18 (1) in subsection (a)— 

19 (A) in paragraph (2), by striking subpara20 graph (B) and inserting the following: 

21 ‘‘(B) the program established under section 

22 4(b) of the Food and Nutrition Act of 2008 (7 

23 U.S.C. 2013(b));’’; and 

24 (B) in paragraph (3)(D), by striking ‘‘the 

25 Committee on Education and Labor’’ and insert-
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1 ing ‘‘the Committee on Education and the Work2 force’’; 

3 (2) in subsection (b)(1)(A)(ii), by striking ‘‘sec4 tion 32 of the Agricultural Adjustment Act (7 U.S.C. 

5 601 et seq.)’’ and inserting ‘‘section 32 of the Act of 

6 August 24, 1935 (7 U.S.C. 612c)’’; 

7 (3) in subsection (e)(1)(D)(iii), by striking sub8 clause (II) and inserting the following: 

9 ‘‘(II) the program established 

10 under section 4(b) of the Food and Nu11 trition Act of 2008 (7 U.S.C. 

12 2013(b));’’; and 

13 (4) in subsection (k), by striking ‘‘the Committee 

14 on Education and Labor’’ and inserting ‘‘the Com15 mittee on Education and the Workforce’’. 

16 Subtitle C—Miscellaneous 

17 SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES 

18 FOR DISTRIBUTION TO SCHOOLS AND SERV19 ICE INSTITUTIONS. 

20 Section 10603(b) of the Farm Security and Rural In21 vestment Act of 2002 (7 U.S.C. 612c–4(b)) is amended by 

22 striking ‘‘2012’’ and inserting ‘‘2018’’. 
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1 SEC. 4202. SENIORS FARMERS’ MARKET NUTRITION PRO2 GRAM. 

3 Section 4402(a) of the Farm Security and Rural In4 vestment Act of 2002 (7 U.S.C. 3007(a)) is amended by 

5 striking ‘‘2012’’ and inserting ‘‘2018’’. 

6 SEC. 4203. NUTRITION INFORMATION AND AWARENESS 

7 PILOT PROGRAM. 

8 Section 4403 of the Farm Security and Rural Invest9 ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107– 

10 171) is repealed. 

11 SEC. 4204. HUNGER-FREE COMMUNITIES. 

12 Section 4405 of the Food, Conservation, and Energy 

13 Act of 2008 (7 U.S.C. 7517) is amended to read as follows: 

14 ‘‘SEC. 4405. HUNGER-FREE COMMUNITIES. 

15 ‘‘(a) IN GENERAL.—In this section: 

16 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti17 ty’ means— 

18 ‘‘(A) a nonprofit organization (including 

19 an emergency feeding organization); 

20 ‘‘(B) an agricultural cooperative; 

21 ‘‘(C) a producer network or association; 

22 ‘‘(D) a community health organization; 

23 ‘‘(E) a public benefit corporation; 

24 ‘‘(F) an economic development corporation; 

25 ‘‘(G) a farmers’ market; 
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1 ‘‘(H) a community-supported agriculture 

2 program; 

3 ‘‘(I) a buying club; 

4 ‘‘(J) a retail food store participating in the 

5 supplemental nutrition assistance program; 

6 ‘‘(K) a State, local, or tribal agency; and 

7 ‘‘(L) any other entity the Secretary des8 ignates. 

9 ‘‘(2) EMERGENCY FEEDING ORGANIZATION.—The 

10 term ‘emergency feeding organization’ has the mean11 ing given the term in section 201A of the Emergency 

12 Food Assistance Act of 1983 (7 U.S.C. 7501). 

13 ‘‘(3) SUPPLEMENTAL NUTRITION ASSISTANCE

14 PROGRAM.—The term ‘supplemental nutrition assist15 ance program’ means the supplemental nutrition as16 sistance program established under the Food and Nu17 trition Act of 2008 (7 U.S.C. 2011 et seq.). 

18 ‘‘(b) HUNGER-FREE COMMUNITIES INCENTIVE

19 GRANTS.— 

20 ‘‘(1) AUTHORIZATION.— 

21 ‘‘(A) IN GENERAL.—In each of the years 

22 specified in subsection (c), the Secretary shall 

23 make grants to eligible entities in accordance 

24 with paragraph (2). 
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1 ‘‘(B) FEDERAL SHARE.—The Federal share 

2 of the cost of carrying out an activity under this 

3 subsection shall not exceed 50 percent of the total 

4 cost of the activity. 

5 ‘‘(C) NON-FEDERAL SHARE.— 

6 ‘‘(i) IN GENERAL.—The non-Federal 

7 share of the cost of an activity under this 

8 subsection may be provided— 

9 ‘‘(I) in cash or in-kind contribu10 tions as determined by the Secretary, 

11 including facilities, equipment, or serv12 ices; and 

13 ‘‘(II) by a State or local govern14 ment or a private source. 

15 ‘‘(ii) LIMITATION.—In the case of a 

16 for-profit entity, the non-Federal share de17 scribed in clause (i) shall not include serv18 ices of an employee, including salaries paid 

19 or expenses covered by the employer. 

20 ‘‘(2) CRITERIA.— 

21 ‘‘(A) IN GENERAL.—For purposes of this 

22 subsection, an eligible entity is a governmental 

23 agency or nonprofit organization that— 

24 ‘‘(i) meets the application criteria set 

25 forth by the Secretary; and 
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1 ‘‘(ii) proposes a project that, at a min2 imum— 

3 ‘‘(I) has the support of the State 

4 agency; 

5 ‘‘(II) would increase the purchase 

6 of fruits and vegetables by low-income 

7 consumers participating in the supple8 mental nutrition assistance program 

9 by providing incentives at the point of 

10 purchase; 

11 ‘‘(III) agrees to participate in the 

12 evaluation described in paragraph (4); 

13 ‘‘(IV) ensures that the same terms 

14 and conditions apply to purchases 

15 made by individuals with benefits 

16 issued under this Act and incentives 

17 provided for in this subsection as 

18 apply to purchases made by individ19 uals who are not members of house20 holds receiving benefits, such as pro21 vided for in section 278.2(b) of title 7, 

22 Code of Federal Regulations (or a suc23 cessor regulation); and 

24 ‘‘(V) includes effective and effi25 cient technologies for benefit redemp-
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1 tion systems that may be replicated in 

2 other for States and communities. 

3 ‘‘(B) PRIORITY.—In awarding grants under 

4 this section, the Secretary shall give priority to 

5 projects that— 

6 ‘‘(i) maximize the share of funds used 

7 for direct incentives to participants; 

8 ‘‘(ii) use direct-to-consumer sales mar9 keting; 

10 ‘‘(iii) demonstrate a track record of de11 signing and implementing successful nutri12 tion incentive programs that connect low13 income consumers and agricultural pro14 ducers; 

15 ‘‘(iv) provide locally or regionally pro16 duced fruits and vegetables; 

17 ‘‘(v) are located in underserved com18 munities; or 

19 ‘‘(vi) address other criteria as estab20 lished by the Secretary. 

21 ‘‘(3) APPLICABILITY.— 

22 ‘‘(A) IN GENERAL.—The value of any ben23 efit provided to a participant in any activity 

24 funded under this subsection shall not be consid-
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1 ered income or resources for any purpose under 

2 any Federal, State, or local law. 

3 ‘‘(B) PROHIBITION ON COLLECTION OF

4 SALES TAXES.—Each State shall ensure that no 

5 State or local tax is collected on a purchase of 

6 food under this subsection. 

7 ‘‘(C) NO LIMITATION ON BENEFITS.—A 

8 grant made available under this subsection shall 

9 not be used to carry out any project that limits 

10 the use of benefits under the Food and Nutrition 

11 Act of 2008 (7 U.S.C. 2011 et seq.) or any other 

12 Federal nutrition law. 

13 ‘‘(D) HOUSEHOLD ALLOTMENT.—Assistance 

14 provided under this subsection to households re15 ceiving benefits under the supplemental nutrition 

16 assistance program shall not— 

17 ‘‘(i) be considered part of the supple18 mental nutrition assistance program bene19 fits of the household; or 

20 ‘‘(ii) be used in the collection or dis21 position of claims under section 13 of the 

22 Food and Nutrition Act of 2008 (7 U.S.C. 

23 2022). 

24 ‘‘(4) EVALUATION.— 
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1 ‘‘(A) INDEPENDENT EVALUATION.—The Sec2 retary shall provide for an independent evalua3 tion of projects selected under this subsection that 

4 measures the impact of each project on— 

5 ‘‘(i) improving the nutrition and 

6 health status of participating households re7 ceiving incentives under this subsection; and 

8 ‘‘(ii) increasing fruit and vegetable 

9 purchases in participating households. 

10 ‘‘(B) REQUIREMENT.—The independent 

11 evaluation under subparagraph (A) shall use rig12 orous methodologies capable of producing sci13 entifically valid information regarding the effec14 tiveness of a project. 

15 ‘‘(C) COSTS.—The Secretary may use funds 

16 not to exceed 10 percent of the funding provided 

17 to carry out this section to pay costs associated 

18 with administering, monitoring, and evaluating 

19 each project. 

20 ‘‘(c) FUNDING.— 

21 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 subsection (b) $5,000,000 for each of fiscal years 2014 

24 through 2018. 
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1 ‘‘(2) MANDATORY FUNDING.—Of the funds of the 

2 Commodity Credit Corporation, the Secretary shall 

3 use to carry out subsection (b)— 

4 ‘‘(A) $15,000,000 for fiscal year 2014; 

5 ‘‘(B) $20,000,000 for each of fiscal years 

6 2015 through 2017; and 

7 ‘‘(C) $25,000,000 for fiscal year 2018.’’. 

8 SEC. 4205. HEALTHY FOOD FINANCING INITIATIVE. 

9 Subtitle D of title II of the Department of Agriculture 

10 Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is 

11 amended by adding at the end the following: 

12 ‘‘SEC. 242. HEALTHY FOOD FINANCING INITIATIVE. 

13 ‘‘(a) PURPOSE.—The purpose of this section is to en14 hance the authorities of the Secretary to support efforts to 

15 provide access to healthy food by establishing an initiative 

16 to improve access to healthy foods in underserved areas, to 

17 create and preserve quality jobs, and to revitalize low-in18 come communities by providing loans and grants to eligible 

19 fresh, healthy food retailers to overcome the higher costs and 

20 initial barriers to entry in underserved areas. 

21 ‘‘(b) DEFINITIONS.—In this section: 

22 ‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN23 STITUTION.—The term ‘community development fi24 nancial institution’ has the meaning given the term 

25 in section 103 of the Community Development Bank-
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1 ing and Financial Institutions Act of 1994 (12 

2 U.S.C. 4702). 

3 ‘‘(2) INITIATIVE.—The term ‘Initiative’ means 

4 the Healthy Food Financing Initiative established 

5 under subsection (c)(1). 

6 ‘‘(3) NATIONAL FUND MANAGER.—The term ‘na7 tional fund manager’ means a community develop8 ment financial institution that is— 

9 ‘‘(A) in existence on the date of enactment 

10 of this section; and 

11 ‘‘(B) certified by the Community Develop12 ment Financial Institution Fund of the Depart13 ment of the Treasury to manage the Initiative 

14 for purposes of— 

15 ‘‘(i) raising private capital; 

16 ‘‘(ii) providing financial and technical 

17 assistance to partnerships; and 

18 ‘‘(iii) funding eligible projects to at19 tract fresh, healthy food retailers to under20 served areas, in accordance with this sec21 tion. 

22 ‘‘(4) PARTNERSHIP.—The term ‘partnership’ 

23 means a regional, State, or local public-private part24 nership that— 
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1 ‘‘(A) is organized to improve access to fresh, 

2 healthy foods; 

3 ‘‘(B) provides financial and technical as4 sistance to eligible projects; and 

5 ‘‘(C) meets such other criteria as the Sec6 retary may establish. 

7 ‘‘(5) PERISHABLE FOOD.—The term ‘perishable 

8 food’ means a staple food that is fresh, refrigerated, 

9 or frozen. 

10 ‘‘(6) QUALITY JOB.—The term ‘quality job’ 

11 means a job that provides wages and other benefits 

12 comparable to, or better than, similar positions in ex13 isting businesses of similar size in similar local 

14 economies. 

15 ‘‘(7) STAPLE FOOD.— 

16 ‘‘(A) IN GENERAL.—The term ‘staple food’ 

17 means food that is a basic dietary item. 

18 ‘‘(B) INCLUSIONS.—The term ‘staple food’ 

19 includes— 

20 ‘‘(i) bread; 

21 ‘‘(ii) flour; 

22 ‘‘(iii) fruits; 

23 ‘‘(iv) vegetables; and 

24 ‘‘(v) meat. 

25 ‘‘(c) INITIATIVE.— 
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1 ‘‘(1) ESTABLISHMENT.—The Secretary shall es2 tablish an initiative to achieve the purpose described 

3 in subsection (a) in accordance with this subsection. 

4 ‘‘(2) IMPLEMENTATION.— 

5 ‘‘(A) IN GENERAL.— 

6 ‘‘(i) IN GENERAL.—In carrying out the 

7 Initiative, the Secretary shall provide fund8 ing to entities with eligible projects, as de9 scribed in subparagraph (B), subject to the 

10 priorities described in subparagraph (C). 

11 ‘‘(ii) USE OF FUNDS.—Funds provided 

12 to an entity pursuant to clause (i) shall be 

13 used— 

14 ‘‘(I) to create revolving loan pools 

15 of capital or other products to provide 

16 loans to finance eligible projects or 

17 partnerships; 

18 ‘‘(II) to provide grants for eligible 

19 projects or partnerships; 

20 ‘‘(III) to provide technical assist21 ance to funded projects and entities 

22 seeking Initiative funding; and 

23 ‘‘(IV) to cover administrative ex24 penses of the national fund manager in 
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1 an amount not to exceed 10 percent of 

2 the Federal funds provided. 

3 ‘‘(B) ELIGIBLE PROJECTS.—Subject to the 

4 approval of the Secretary, the national fund 

5 manager shall establish eligibility criteria for 

6 projects under the Initiative, which shall include 

7 the existence or planned execution of agree8 ments— 

9 ‘‘(i) to expand or preserve the avail10 ability of staple foods in underserved areas 

11 with moderate- and low-income populations 

12 by maintaining or increasing the number of 

13 retail outlets that offer an assortment of 

14 perishable food and staple food items, as de15 termined by the Secretary, in those areas; 

16 and 

17 ‘‘(ii) to accept benefits under the sup18 plemental nutrition assistance program es19 tablished under the Food and Nutrition Act 

20 of 2008 (7 U.S.C. 2011 et seq.). 

21 ‘‘(C) PRIORITIES.—In carrying out the Ini22 tiative, priority shall be given to projects that— 

23 ‘‘(i) are located in severely distressed 

24 low-income communities, as defined by the 

25 Community Development Financial Institu-
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1 tions Fund of the Department of the Treas2 ury; and 

3 ‘‘(ii) include 1 or more of the following 

4 characteristics: 

5 ‘‘(I) The project will create or re6 tain quality jobs for low-income resi7 dents in the community. 

8 ‘‘(II) The project supports re9 gional food systems and locally grown 

10 foods, to the maximum extent prac11 ticable. 

12 ‘‘(III) In areas served by public 

13 transit, the project is accessible by pub14 lic transit. 

15 ‘‘(IV) The project involves women16 or minority-owned businesses. 

17 ‘‘(V) The project receives funding 

18 from other sources, including other 

19 Federal agencies. 

20 ‘‘(VI) The project otherwise ad21 vances the purpose of this section, as 

22 determined by the Secretary. 

23 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated to the Secretary to carry out 
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1 this section $125,000,000, to remain available until ex2 pended.’’. 

3 SEC. 4206. PULSE CROP PRODUCTS. 

4 (a) PURPOSE.—The purpose of this section is to en5 courage greater awareness and interest in the number and 

6 variety of pulse crop products available to schoolchildren, 

7 as recommended by the most recent Dietary Guidelines for 

8 Americans published under section 301 of the National Nu9 trition Monitoring and Related Research Act of 1990 (7 

10 U.S.C. 5341). 

11 (b) DEFINITIONS.—In this section: 

12 (1) ELIGIBLE PULSE CROP.—The term ‘‘eligible 

13 pulse crop’’ means dry beans, dry peas, lentils, and 

14 chickpeas. 

15 (2) PULSE CROP PRODUCT.—The term ‘‘pulse 

16 crop product’’ means a food product derived in whole 

17 or in part from an eligible pulse crop. 

18 (c) PURCHASE OF PULSE CROPS AND PULSE CROP

19 PRODUCTS.—In addition to the commodities delivered 

20 under section 6 of the Richard B. Russell National School 

21 Lunch Act (42 U.S.C. 1755), the Secretary shall purchase 

22 eligible pulse crops and pulse crop products for use in— 

23 (1) the school lunch program established under 

24 the Richard B. Russell National School Lunch Act 

25 (42 U.S.C. 1751 et seq.); and 
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1 (2) the school breakfast program established by 

2 section 4 of the Child Nutrition Act of 1966 (42 

3 U.S.C. 1773). 

4 (d) EVALUATION.—Not later than September 30, 2016, 

5 the Secretary shall conduct an evaluation of the activities 

6 conducted under subsection (c), including— 

7 (1) an evaluation of whether children partici8 pating in the school lunch and breakfast programs de9 scribed in subsection (c) increased overall consump10 tion of eligible pulse crops as a result of the activities; 

11 (2) an evaluation of which eligible pulse crops 

12 and pulse crop products are most acceptable for use 

13 in the school lunch and breakfast programs; 

14 (3) any recommendations of the Secretary re15 garding the integration of the use of pulse crop prod16 ucts in carrying out the school lunch and breakfast 

17 programs; 

18 (4) an evaluation of any change in the nutrient 

19 composition in the school lunch and breakfast pro20 grams due to the activities; and 

21 (5) an evaluation of any other outcomes deter22 mined to be appropriate by the Secretary. 

23 (e) REPORT.—As soon as practicable after the comple24 tion of the evaluation under subsection (d), the Secretary 

25 shall submit to the Committee on Agriculture, Nutrition, 
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1 and Forestry of the Senate and the Committee on Edu2 cation and the Workforce of the House of Representative a 

3 report describing the results of the evaluation. 

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to carry out this section 

6 $10,000,000, to remain available until expended. 

7 SEC. 4207. DIETARY GUIDELINES FOR AMERICANS. 

8 Section 301(a) of the National Nutrition Monitoring 

9 and Related Research Act of 1990 (7 U.S.C. 5341(a)) is 

10 amended by adding at the end the following: 

11 ‘‘(3) PREGNANT WOMEN AND YOUNG CHIL12 DREN.—Not later than the 2020 report and in each 

13 report thereafter, the Secretaries shall include na14 tional nutritional and dietary information and 

15 guidelines for pregnant women and children from 

16 birth until the age of 2.’’. 

17 SEC. 4208. PURCHASES OF LOCALLY PRODUCED FOODS. 

18 Section 9(j) of the Richard B. Russell National School 

19 Lunch Act (42 U.S.C. 1758(j)) is amended— 

20 (1) by redesignating paragraphs (1) through (3) 

21 as subparagraphs (A) through (C), respectively, and 

22 indenting the subparagraphs appropriately; 

23 (2) by striking ‘‘The Secretary’’ and inserting 

24 the following: 

25 ‘‘(1) IN GENERAL.—The Secretary’’; 
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1 (3) in paragraph (1) (as so redesignated)— 

2 (A) in subparagraph (B)— 

3 (i) by striking ‘‘paragraph (1) of the 

4 policy described in that paragraph and 

5 paragraph (3)’’ and inserting ‘‘subpara6 graph (A) of the policy described in that 

7 subparagraph and subparagraph (C)’’; and 

8 (ii) by striking ‘‘and’’ at the end; 

9 (B) in subparagraph (C), by striking the 

10 period at the end and inserting ‘‘; and’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(D) not later than 1 year after the date of 

13 enactment of this subparagraph, in accordance 

14 with paragraphs (2) and (3), conduct not fewer 

15 than 5 demonstration projects through school 

16 food authorities receiving funds under this Act 

17 and the Child Nutrition Act of 1966 (42 U.S.C. 

18 1771 et seq.) to facilitate the purchase of unproc19 essed and minimally processed locally grown and 

20 locally raised agricultural products.’’; and 

21 (4) by adding at the end the following: 

22 ‘‘(2) SELECTION.—In conducting demonstration 

23 projects under paragraph (1)(D), the Secretary shall 

24 ensure that at least 1 project is located in a State in 

25 each of— 
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1 ‘‘(A) the Pacific Northwest Region; 

2 ‘‘(B) the Northeast Region; 

3 ‘‘(C) the Western Region; 

4 ‘‘(D) the Midwest Region; and 

5 ‘‘(E) the Southern Region. 

6 ‘‘(3) PRIORITY.—In selecting States for partici7 pation in the demonstration projects under paragraph 

8 (2), the Secretary shall prioritize applications based 

9 on— 

10 ‘‘(A) the quantity and variety of growers of 

11 local fruits and vegetables in the State; 

12 ‘‘(B) the demonstrated commitment of the 

13 State to farm-to-school efforts, as evidenced by 

14 prior efforts to increase and promote farm-to15 school programs in the State; and 

16 ‘‘(C) whether the State contains a sufficient 

17 quantity of school districts of varying population 

18 sizes and geographical locations.’’. 

19 SEC. 4209. MULTIAGENCY TASK FORCE. 

20 Subtitle D of title II of the Department of Agriculture 

21 Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as 

22 amended by section 4205) is amended by adding at the end 

23 the following: 
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1 ‘‘SEC. 243. MULTIAGENCY TASK FORCE. 

2 ‘‘(a) IN GENERAL.—The Secretary shall establish, in 

3 the office of the Under Secretary for Food, Nutrition, and 

4 Consumer Services, a multiagency task force for the purpose 

5 of providing coordination and direction for commodity pro6 grams. 

7 ‘‘(b) COMPOSITION.—The Task Force shall be composed 

8 of at least 4 members, including— 

9 ‘‘(1) a representative from the Food Distribution 

10 Division of the Food and Nutrition Service, who 

11 shall— 

12 ‘‘(A) be appointed by the Under Secretary 

13 for Food, Nutrition, and Consumer Services; and 

14 ‘‘(B) serve as Chairperson of the Task 

15 Force; 

16 ‘‘(2) at least 1 representative from the Agricul17 tural Marketing Service, who shall be appointed by 

18 the Under Secretary for Marketing and Regulatory 

19 Programs; 

20 ‘‘(3) at least 1 representative from the Farm 

21 Services Agency, who shall be appointed by the Under 

22 Secretary for Farm and Foreign Agricultural Serv23 ices; and 

24 ‘‘(4) at least 1 representative from the Food Safe25 ty and Inspection Service, who shall be appointed by 

26 the Under Secretary for Food Safety. 
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1 ‘‘(c) DUTIES.— 

2 ‘‘(1) IN GENERAL.—The Task Force shall be re3 sponsible for evaluation and monitoring of the com4 modity programs to ensure that the commodity pro5 grams meet the mission of the Department— 

6 ‘‘(A) to support the United States farm sec7 tor; and 

8 ‘‘(B) to contribute to the health and well9 being of individuals in the United States through 

10 the distribution of domestic agricultural products 

11 through commodity programs. 

12 ‘‘(2) SPECIFIC DUTIES.—In carrying out para13 graph (1), the Task Force shall— 

14 ‘‘(A) review and make recommendations re15 garding the specifications used for the procure16 ment of food commodities; 

17 ‘‘(B) review and make recommendations re18 garding the efficient and effective distribution of 

19 food commodities; and 

20 ‘‘(C) review and make recommendations re21 garding the degree to which the quantity, qual22 ity, and specifications of procured food commod23 ities align the needs of producers and the pref24 erences of recipient agencies. 
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1 ‘‘(d) REPORTS.—Not later than 1 year after the date 

2 of enactment of this section, and annually thereafter, the 

3 Secretary shall submit to Congress a report that describes, 

4 for the period covered by the report— 

5 ‘‘(1) the findings and recommendations of the 

6 Task Force; and 

7 ‘‘(2) policies implemented for the improvement of 

8 commodity procurement programs.’’. 

9 SEC. 4210. FOOD AND AGRICULTURE SERVICE LEARNING 

10 PROGRAM. 

11 Subtitle D of title II of the Department of Agriculture 

12 Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as 

13 amended by section 4209) is amended by adding at the end 

14 the following: 

15 ‘‘SEC. 244. FOOD AND AGRICULTURE SERVICE LEARNING 

16 PROGRAM. 

17 ‘‘(a) DEFINITIONS.—In this section: 

18 ‘‘(1) APPROVED NATIONAL SERVICE POSITION.— 

19 The term ‘approved national service position’ has the 

20 meaning given the term in section 101 of the National 

21 and Community Service Act of 1990 (42 U.S.C. 

22 12511)). 

23 ‘‘(2) ELEMENTARY SCHOOL.—The term ‘elemen24 tary school’ has the meaning given the term in section 
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1 9101 of the Elementary and Secondary Education 

2 Act of 1965 (20 U.S.C. 7801). 

3 ‘‘(3) PROGRAM.—The term ‘Program’ means the 

4 Food and Agriculture Service Learning Program es5 tablished under subsection (b). 

6 ‘‘(4) SECONDARY SCHOOL.—The term ‘secondary 

7 school’ has the meaning given the term in section 

8 9101 of the Elementary and Secondary Education 

9 Act of 1965 (20 U.S.C. 7801). 

10 ‘‘(b) ESTABLISHMENT.—The Secretary shall establish 

11 a Food and Agriculture Service Learning Program to in12 crease knowledge of agriculture and improve the nutritional 

13 health of children. 

14 ‘‘(c) PURPOSES.—The purposes of the Program are— 

15 ‘‘(1) to increase capacity for food, garden, and 

16 nutrition education within host organizations or enti17 ties and school cafeterias and in the classroom; 

18 ‘‘(2) to complement and build on the efforts of 

19 the farm to school programs implemented under sec20 tion 18(g) of the Richard B. Russell National School 

21 Lunch Act (42 U.S.C. 1769(g)); 

22 ‘‘(3) to complement efforts by the Department 

23 and school food authorities to implement school meal 

24 programs under section 4(b)(3) of the Richard B. 
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1 Russell National School Lunch Act (42 U.S.C. 

2 1753(b)(3)); 

3 ‘‘(4) to carry out activities that advance the nu4 tritional health of children and nutrition education 

5 in elementary schools and secondary schools; 

6 ‘‘(5) to build on activities carried out by the 

7 Food and Nutrition Service and the Corporation for 

8 National and Community Service by providing funds 

9 to establish new approved national service positions 

10 for a national service program; and 

11 ‘‘(6) to further expand the impact of the efforts 

12 described in paragraphs (1) through (5) through co13 ordination with the National Institute of Food and 

14 Agriculture. 

15 ‘‘(d) ELIGIBILITY.—In carrying out the Program, the 

16 Secretary may make awards to an organization or other 

17 entity that, as determined by the Secretary— 

18 ‘‘(1) has a proven track record in carrying out 

19 the activities described in subsection (c); 

20 ‘‘(2) is designated as a national service organi21 zation by the Corporation for National and Commu22 nity Service under subtitle C of title I of the National 

23 and Community Service Act of 1990 (42 U.S.C. 

24 12571 et seq.); 
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1 ‘‘(3) works in underserved rural and urban com2 munities; 

3 ‘‘(4) teaches and engages children in experiential 

4 learning about agriculture, gardening, nutrition, 

5 cooking, and where food comes from; and 

6 ‘‘(5) facilitates a connection between elementary 

7 schools and secondary schools and agricultural pro8 ducers in the local and regional area. 

9 ‘‘(e) ACCOUNTABILITY.— 

10 ‘‘(1) IN GENERAL.—The Secretary may require 

11 an organization or other entity receiving an award 

12 under subsection (d), or another qualified entity, to 

13 collect and report any data on the activities carried 

14 out under the Program, as determined by the Sec15 retary. 

16 ‘‘(2) EVALUATION.—The Secretary shall— 

17 ‘‘(A) conduct regular evaluation of the ac18 tivities carried out under the Program; and 

19 ‘‘(B) submit to the Committee on Agri20 culture of the House of Representatives and the 

21 Committee on Agriculture, Nutrition, and For22 estry of the Senate a report that includes a de23 scription of the results of an evaluation con24 ducted under subparagraph (A). 

25 ‘‘(f) FUNDING.— 
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1 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this section $25,000,000, to remain available until ex4 pended. 

5 ‘‘(2) USE OF CERTAIN FUNDS.—Of the funds 

6 made available to carry out this section for a fiscal 

7 year, 20 percent shall be made available to the Na8 tional Institute of Food and Agriculture to offset costs 

9 associated with hosting, training, and overseeing in10 dividuals in approved national service positions 

11 under the Program. 

12 ‘‘(3) MAINTENANCE OF EFFORT.—Funds made 

13 available under paragraph (1) shall be used only to 

14 supplement, not to supplant, the amount of Federal 

15 funding otherwise expended for nutrition, research, 

16 and extension programs of the Department.’’. 
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1 TITLE V—CREDIT 

2 Subtitle A—Farmer Loans, Serv3 icing, and Other Assistance 

4 Under the Consolidated Farm 

5 and Rural Development Act 

6 SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSIST7 ANCE UNDER THE CONSOLIDATED FARM AND 

8 RURAL DEVELOPMENT ACT. 

9 The Consolidated Farm and Rural Development Act 

10 (as amended by section 6001) is amended by inserting after 

11 section 3002 the following: 

12 ‘‘Subtitle A—Farmer Loans, 

13 Servicing, and Other Assistance 

14 ‘‘CHAPTER 1—FARM OWNERSHIP LOANS 

15 ‘‘SEC. 3101. FARM OWNERSHIP LOANS. 

16 ‘‘(a) IN GENERAL.—The Secretary may make or guar17 antee a farm ownership loan under this chapter to an eligi18 ble farmer for a farm in the United States. 

19 ‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 

20 subsection (a) only— 

21 ‘‘(1) if the farmer, or, in the case of an entity, 

22 1 or more individuals holding a majority interest in 

23 the entity— 

24 ‘‘(A) is a citizen of the United States; and 
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1 ‘‘(B) in the case of a direct loan, has train2 ing or farming experience that the Secretary de3 termines is sufficient to ensure a reasonable 

4 prospect of success in the farming operation pro5 posed by the farmer; 

6 ‘‘(2)(A) in the case of a farmer that is an indi7 vidual, if the farmer is or proposes to become an 

8 owner and operator of a farm that is not larger than 

9 a family farm; or 

10 ‘‘(B) in the case of a lessee-operator of a farm lo11 cated in the State of Hawaii, if the Secretary deter12 mines that— 

13 ‘‘(i) the farm is not larger than a family 

14 farm; 

15 ‘‘(ii) the farm cannot be acquired in fee 

16 simple by the lessee-operator; 

17 ‘‘(iii) adequate security is provided for the 

18 loan with respect to the farm for which the les19 see-operator applies under this chapter; and 

20 ‘‘(iv) there is a reasonable probability of ac21 complishing the objectives and repayment of the 

22 loan; 

23 ‘‘(3) in the case of a farmer that is a cooperative, 

24 corporation, partnership, trust, limited liability com25 pany, joint operation, or such other legal entity as the 
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1 Secretary determines to be appropriate, with respect 

2 to the entity and each farm in which the entity has 

3 an ownership or operator interest— 

4 ‘‘(A) if— 

5 ‘‘(i) a majority interest is held by indi6 viduals who are related by blood or mar7 riage, as defined by the Secretary; 

8 ‘‘(ii) at least 1 of the individuals is or 

9 will be the operator of the farm; and 

10 ‘‘(iii) the farm is not larger than a 

11 family farm; 

12 ‘‘(B) if— 

13 ‘‘(i) all of the individuals who are or 

14 propose to become owners or operators of a 

15 farm are related by blood or marriage; 

16 ‘‘(ii) all of the individuals are or pro17 pose to become operators of the farm; and 

18 ‘‘(iii) each of the interests of the indi19 viduals separately constitutes not larger 

20 than a family farm even if the ownership 

21 interests of the individuals collectively con22 stitute larger than a family farm; or 

23 ‘‘(C) if— 
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1 ‘‘(i) the entire interest is not held by 

2 individuals who are related by blood or 

3 marriage, as defined by the Secretary; 

4 ‘‘(ii) all of the individuals are or pro5 pose to become farm operators; and 

6 ‘‘(iii) the farm is not larger than a 

7 family farm; 

8 ‘‘(4) in the case of an entity that is, or will be9 come within a reasonable period of time, as deter10 mined by the Secretary, only the operator of a family 

11 farm, if the 1 or more individuals who are the owners 

12 of the family farm own— 

13 ‘‘(A) a percentage of the family farm that 

14 exceeds 50 percent; or 

15 ‘‘(B) such other percentage as the Secretary 

16 determines to be appropriate; 

17 ‘‘(5) in the case of an operator described in 

18 paragraph (3) that is owned, in whole or in part, by 

19 1 or more other entities, if each of the individuals 

20 that have a direct or indirect ownership interest in 

21 such other entities also have a direct ownership inter22 est in the entity; and 

23 ‘‘(6) if the farmer (or in the case of a farmer 

24 that is an entity, the 1 or more individuals that hold 
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1 a majority interest in the entity) is unable to obtain 

2 credit elsewhere. 

3 ‘‘(c) DIRECT LOANS.— 

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

5 Secretary may make a direct loan under this chapter 

6 only to a farmer who has participated in business op7 erations of a farm for not less than 3 years (or has 

8 other acceptable experience for a period of time deter9 mined by the Secretary) and— 

10 ‘‘(A) is a qualified beginning farmer; 

11 ‘‘(B) has not received a previous direct farm 

12 ownership loan made under this chapter; or 

13 ‘‘(C) has not received a direct farm owner14 ship loan under this chapter more than 10 years 

15 before the date on which the new loan would be 

16 made. 

17 ‘‘(2) YOUTH LOANS.—The operation of an enter18 prise by a youth under section 3201(d) shall not be 

19 considered the operation of a farm for purposes of 

20 paragraph (1). 

21 ‘‘SEC. 3102. PURPOSES OF LOANS. 

22 ‘‘(a) ALLOWED PURPOSES.— 

23 ‘‘(1) DIRECT LOANS.—A farmer may use a direct 

24 loan made under this chapter only— 

25 ‘‘(A) to acquire or enlarge a farm; 
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1 ‘‘(B) to make capital improvements to a 

2 farm; 

3 ‘‘(C) to pay loan closing costs related to ac4 quiring, enlarging, or improving a farm; 

5 ‘‘(D) to pay for activities to promote soil 

6 and water conservation and protection described 

7 in section 3103 on a farm; or 

8 ‘‘(E) to refinance a temporary bridge loan 

9 made by a commercial or cooperative lender to 

10 a farmer for the acquisition of land for a farm, 

11 if— 

12 ‘‘(i) the Secretary approved an appli13 cation for a direct farm ownership loan to 

14 the farmer for acquisition of the land; and 

15 ‘‘(ii) funds for direct farm ownership 

16 loans under section 3201(a) were not avail17 able at the time at which the application 

18 was approved. 

19 ‘‘(2) GUARANTEED LOANS.—A farmer may use a 

20 loan guaranteed under this chapter only— 

21 ‘‘(A) to acquire or enlarge a farm; 

22 ‘‘(B) to make capital improvements to a 

23 farm; 

24 ‘‘(C) to pay loan closing costs related to ac25 quiring, enlarging, or improving a farm; 
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1 ‘‘(D) to pay for activities to promote soil 

2 and water conservation and protection described 

3 in section 3103 on a farm; or 

4 ‘‘(E) to refinance indebtedness. 

5 ‘‘(b) PREFERENCES.—In making or guaranteeing a 

6 loan under this chapter for purchase of a farm, the Sec7 retary shall give preference to a person who— 

8 ‘‘(1) has a dependent family; 

9 ‘‘(2) to the extent practicable, is able to make an 

10 initial down payment on the farm; or 

11 ‘‘(3) is an owner of livestock or farm equipment 

12 that is necessary to successfully carry out farming op13 erations. 

14 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec15 retary may not make a loan to a farmer under this chapter 

16 unless the farmer has, or agrees to obtain, hazard insurance 

17 on any real property to be acquired or improved with the 

18 loan. 

19 ‘‘SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE 

20 PROGRAM. 

21 ‘‘(a) IN GENERAL.—The Secretary may make or guar22 antee qualified conservation loans to eligible borrowers 

23 under this section. 

24 ‘‘(b) DEFINITIONS.—In this section: 
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1 ‘‘(1) CONSERVATION PLAN.—The term ‘conserva2 tion plan’ means a plan, approved by the Secretary, 

3 that, for a farming operation, identifies the conserva4 tion activities that will be addressed with loan funds 

5 provided under this section, including— 

6 ‘‘(A) the installation of conservation struc7 tures to address soil, water, and related re8 sources; 

9 ‘‘(B) the establishment of forest cover for 

10 sustained yield timber management, erosion con11 trol, or shelter belt purposes; 

12 ‘‘(C) the installation of water conservation 

13 measures; 

14 ‘‘(D) the installation of waste management 

15 systems; 

16 ‘‘(E) the establishment or improvement of 

17 permanent pasture; 

18 ‘‘(F) compliance with section 1212 of the 

19 Food Security Act of 1985 (16 U.S.C. 3812); and 

20 ‘‘(G) other purposes consistent with the 

21 plan, including the adoption of any other emerg22 ing or existing conservation practices, tech23 niques, or technologies approved by the Sec24 retary. 
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1 ‘‘(2) QUALIFIED CONSERVATION LOAN.—The 

2 term ‘qualified conservation loan’ means a loan, the 

3 proceeds of which are used to cover the costs to the 

4 borrower of carrying out a qualified conservation 

5 project. 

6 ‘‘(3) QUALIFIED CONSERVATION PROJECT.—The 

7 term ‘qualified conservation project’ means conserva8 tion measures that address provisions of a conserva9 tion plan of the eligible borrower. 

10 ‘‘(c) ELIGIBILITY.— 

11 ‘‘(1) IN GENERAL.—The Secretary may make or 

12 guarantee loans to farmers. 

13 ‘‘(2) REQUIREMENTS.—To be eligible for a loan 

14 under this section, applicants shall meet the citizen15 ship and training and experience requirements of sec16 tion 3101(b). 

17 ‘‘(d) PRIORITY.—In making or guaranteeing loans 

18 under this section, the Secretary shall give priority to— 

19 ‘‘(1) qualified beginning farmers and socially 

20 disadvantaged farmers; 

21 ‘‘(2) owners or tenants who use the loans to con22 vert to sustainable or organic agricultural production 

23 systems; and 

24 ‘‘(3) producers who use the loans to build con25 servation structures or establish conservation practices 
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1 to comply with section 1212 of the Food Security Act 

2 of 1985 (16 U.S.C. 3812). 

3 ‘‘(e) LIMITATIONS APPLICABLE TO LOAN GUARAN4 TEES.—The portion of a loan that the Secretary may guar5 antee under this section shall not exceed 75 percent of the 

6 principal amount of the loan. 

7 ‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary 

8 shall ensure, to the maximum extent practicable, that loans 

9 made or guaranteed under this section are distributed 

10 across diverse geographic regions. 

11 ‘‘(g) CREDIT ELIGIBILITY.—The provisions of para12 graphs (1) and (3) of section 3406(a) shall not apply to 

13 loans made or guaranteed under this section. 

14 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For each 

15 of fiscal years 2013 through 2018, there are authorized to 

16 be appropriated to the Secretary such sums as are necessary 

17 to carry out this section. 

18 ‘‘SEC. 3104. LOAN MAXIMUMS. 

19 ‘‘(a) MAXIMUM.— 

20 ‘‘(1) IN GENERAL.—The Secretary shall make or 

21 guarantee no loan under sections 3101, 3102, 3103, 

22 3106, and 3107 that would cause the unpaid indebt23 edness under those sections of any 1 borrower to ex24 ceed the lesser of— 
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1 ‘‘(A) the value of the farm or other security, 

2 or 

3 ‘‘(B)(i) in the case of a loan made by the 

4 Secretary, $300,000; or 

5 ‘‘(ii) in the case of a loan guaranteed by the 

6 Secretary, $700,000 (as modified under para7 graph (2)). 

8 ‘‘(2) MODIFICATION.—The amount specified in 

9 paragraph (1)(B)(ii) shall be— 

10 ‘‘(A) increased, beginning with fiscal year 

11 2000, by the inflation percentage applicable to 

12 the fiscal year in which the loan is guaranteed; 

13 and 

14 ‘‘(B) reduced by the amount of any unpaid 

15 indebtedness of the borrower on loans under 

16 chapter 2 that are guaranteed by the Secretary. 

17 ‘‘(b) DETERMINATION OF VALUE.—In determining the 

18 value of the farm, the Secretary shall consider appraisals 

19 made by competent appraisers under rules established by 

20 the Secretary. 

21 ‘‘(c) INFLATION PERCENTAGE.—For purposes of this 

22 section, the inflation percentage applicable to a fiscal year 

23 is the percentage (if any) by which— 

24 ‘‘(1) the average of the Prices Paid By Farmers 

25 Index (as compiled by the National Agricultural Sta-
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1 tistics Service of the Department) for the 12-month 

2 period ending on August 31 of the immediately pre3 ceding fiscal year; exceeds 

4 ‘‘(2) the average of that index (as so defined) for 

5 the 12-month period ending on August 31, 1996. 

6 ‘‘SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWN7 ERSHIP LOANS. 

8 ‘‘(a) PERIOD FOR REPAYMENT.—The period for repay9 ment of a loan under this chapter shall not exceed 40 years. 

10 ‘‘(b) INTEREST RATES.— 

11 ‘‘(1) IN GENERAL.—Except as otherwise provided 

12 in this title, the interest rate on a loan under this 

13 chapter shall be determined by the Secretary at a 

14 rate— 

15 ‘‘(A) not to exceed the sum obtained by add16 ing— 

17 ‘‘(i) the current average market yield 

18 on outstanding marketable obligations of the 

19 United States with remaining periods to 

20 maturity comparable to the average matu21 rity of the loan; and 

22 ‘‘(ii) an amount not to exceed 1 per23 cent, as determined by the Secretary; and 

‘‘(B) adjusted to the nearest 1 24 ⁄8 of 1 percent. 
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1 ‘‘(2) LOW INCOME FARM OWNERSHIP LOANS.— 

2 Except as provided in paragraph (3), the interest rate 

3 on a loan (other than a guaranteed loan) under sec4 tion 3106 shall be determined by the Secretary at a 

5 rate that is— 

6 ‘‘(A) not greater than the sum obtained by 

7 adding— 

‘‘(i) an amount that does not exceed 1 8 ⁄2

9 of the current average market yield on out10 standing marketable obligations of the 

11 United States with maturities of 5 years; 

12 and 

13 ‘‘(ii) an amount not to exceed 1 per14 cent per year, as the Secretary determines is 

15 appropriate; and 

16 ‘‘(B) not less than 5 percent per year. 

17 ‘‘(3) JOINT FINANCING ARRANGEMENT.—If a di18 rect farm ownership loan is made under this chapter 

19 as part of a joint financing arrangement and the 

20 amount of the direct farm ownership loan does not ex21 ceed 50 percent of the total principal amount fi22 nanced under the arrangement, the interest rate on 

23 the direct farm ownership loan shall be at least 4 per24 cent annually. 
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1 ‘‘(4) GUARANTEED LOANS.—The interest rate on 

2 a loan made under this chapter as a guaranteed loan 

3 shall be such rate as may be agreed on by the bor4 rower and the lender, but not in excess of any rate 

5 determined by the Secretary. 

6 ‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 

7 made or guaranteed under this chapter shall pay such fees 

8 and other charges as the Secretary may require, and prepay 

9 to the Secretary such taxes and insurance as the Secretary 

10 may require, on such terms and conditions as the Secretary 

11 may prescribe. 

12 ‘‘(d) SECURITY.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall take as 

14 security for an obligation entered into in connection 

15 with a loan, a mortgage on a farm with respect to 

16 which the loan is made or such other security as the 

17 Secretary may require. 

18 ‘‘(2) LIENS TO UNITED STATES.—An instrument 

19 for security under paragraph (1) may constitute a 

20 lien running to the United States notwithstanding the 

21 fact that the note for the security may be held by a 

22 lender other than the United States. 

23 ‘‘(3) MULTIPLE LOANS.—A borrower may use the 

24 same collateral to secure 2 or more loans made or 

25 guaranteed under this chapter, except that the out-
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1 standing amount of the loans may not exceed the total 

2 value of the collateral. 

3 ‘‘(e) MINERAL RIGHTS AS COLLATERAL.— 

4 ‘‘(1) IN GENERAL.—In the case of a farm owner5 ship loan made after December 23, 1985, unless ap6 praised values of the rights to oil, gas, or other min7 erals are specifically included as part of the ap8 praised value of collateral securing the loan, the 

9 rights to oil, gas, or other minerals located under the 

10 property shall not be considered part of the collateral 

11 securing the loan. 

12 ‘‘(2) COMPENSATORY PAYMENTS.—Nothing in 

13 this subsection prevents the inclusion of, as part of the 

14 collateral securing the loan, any payment or other 

15 compensation the borrower may receive for damages 

16 to the surface of the collateral real estate resulting 

17 from the exploration for or recovery of minerals. 

18 ‘‘(f) ADDITIONAL COLLATERAL.—The Secretary may 

19 not— 

20 ‘‘(1) require any borrower to provide additional 

21 collateral to secure a farmer program loan made or 

22 guaranteed under this subtitle, if the borrower is cur23 rent in the payment of principal and interest on the 

24 loan; or 
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1 ‘‘(2) bring any action to foreclose, or otherwise 

2 liquidate, the loan as a result of the failure of a bor3 rower to provide additional collateral to secure the 

4 loan, if the borrower was current in the payment of 

5 principal and interest on the loan at the time the ad6 ditional collateral was requested. 

7 ‘‘SEC. 3106. LIMITED-RESOURCE LOANS. 

8 ‘‘(a) IN GENERAL.—The Secretary may make or guar9 antee a limited-resource loan for any of the purposes speci10 fied in sections 3102(a) or 3103(a) to a farmer in the 

11 United States who— 

12 ‘‘(1) in the case of an entity, all members, stock13 holders, or partners are eligible under section 3101(b); 

14 ‘‘(2) has a low income; and 

15 ‘‘(3) demonstrates a need to maximize the in16 come of the farmer from farming operations. 

17 ‘‘(b) INSTALLMENTS.—A loan made or guaranteed 

18 under this section shall be repayable in such installments 

19 as the Secretary determines will provide for reduced pay20 ments during the initial repayment period of the loan and 

21 larger payments during the remainder of the repayment pe22 riod of the loan. 

23 ‘‘(c) INTEREST RATES.—Except as provided in section 

24 3105(b)(3) and in section 3204(b)(3), the interest rate on 
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1 loans (other than guaranteed loans) under this section shall 

2 not be— 

3 ‘‘(1) greater than the sum obtained by adding— 

‘‘(A) an amount that does not exceed 1 4 ⁄2 of 

5 the current average market yield on outstanding 

6 marketable obligations of the United States with 

7 maturities of 5 years; and 

8 ‘‘(B) an amount not exceeding 1 percent per 

9 year, as the Secretary determines is appropriate; 

10 or 

11 ‘‘(2) less than 5 percent per year. 

12 ‘‘SEC. 3107. DOWNPAYMENT LOAN PROGRAM. 

13 ‘‘(a) IN GENERAL.— 

14 ‘‘(1) ESTABLISHMENT.—Notwithstanding any 

15 other provision of this chapter, the Secretary shall es16 tablish, under the farm ownership loan program es17 tablished under this chapter, a program under which 

18 loans shall be made under this section to a qualified 

19 beginning farmer or a socially disadvantaged farmer 

20 for a downpayment on a farm ownership loan. 

21 ‘‘(2) COORDINATION.—The Secretary shall be the 

22 primary coordinator of credit supervision for the 

23 downpayment loan program established under this 

24 section, in consultation with a commercial or cooper-
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1 ative lender and, if applicable, a contracting credit 

2 counseling service selected under section 3420(c). 

3 ‘‘(b) LOAN TERMS.— 

4 ‘‘(1) PRINCIPAL.—Each loan made under this 

5 section shall be in an amount that does not exceed 45 

6 percent of the lesser of— 

7 ‘‘(A) the purchase price of the farm to be 

8 acquired; 

9 ‘‘(B) the appraised value of the farm to be 

10 acquired; or 

11 ‘‘(C) $667,000. 

12 ‘‘(2) INTEREST RATE.—The interest rate on any 

13 loan made by the Secretary under this section shall 

14 be a rate equal to the greater of— 

15 ‘‘(A) the difference between— 

16 ‘‘(i) 4 percent; and 

17 ‘‘(ii) the interest rate for farm owner18 ship loans under this chapter; or 

19 ‘‘(B) 1.5 percent. 

20 ‘‘(3) DURATION.—Each loan under this section 

21 shall be made for a period of 20 years or less, at the 

22 option of the borrower. 

23 ‘‘(4) REPAYMENT.—Each borrower of a loan 

24 under this section shall repay the loan to the Sec25 retary in equal annual installments. 
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1 ‘‘(5) NATURE OF RETAINED SECURITY INTER2 EST.—The Secretary shall retain an interest in each 

3 farm acquired with a loan made under this section 

4 that shall— 

5 ‘‘(A) be secured by the farm; 

6 ‘‘(B) be junior only to such interests in the 

7 farm as may be conveyed at the time of acquisi8 tion to the person (including a lender) from 

9 whom the borrower obtained a loan used to ac10 quire the farm; and 

11 ‘‘(C) require the borrower to obtain the per12 mission of the Secretary before the borrower may 

13 grant an additional security interest in the 

14 farm. 

15 ‘‘(c) LIMITATIONS.— 

16 ‘‘(1) BORROWERS REQUIRED TO MAKE MINIMUM

17 DOWN PAYMENT.—The Secretary shall not make a 

18 loan under this section to any borrower with respect 

19 to a farm if the contribution of the borrower to the 

20 down payment on the farm will be less than 5 percent 

21 of the purchase price of the farm. 

22 ‘‘(2) PROHIBITED TYPES OF FINANCING.—The 

23 Secretary shall not make a loan under this section 

24 with respect to a farm if the farm is to be acquired 
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1 with other financing that contains any of the fol2 lowing conditions: 

3 ‘‘(A) The financing is to be amortized over 

4 a period of less than 30 years. 

5 ‘‘(B) A balloon payment will be due on the 

6 financing during the 20-year period beginning 

7 on the date on which the loan is to be made by 

8 the Secretary. 

9 ‘‘(d) ADMINISTRATION.—In carrying out this section, 

10 the Secretary shall, to the maximum extent practicable— 

11 ‘‘(1) facilitate the transfer of farms from retiring 

12 farmers to persons eligible for insured loans under 

13 this subtitle; 

14 ‘‘(2) make efforts to widely publicize the avail15 ability of loans under this section among— 

16 ‘‘(A) potentially eligible recipients of the 

17 loans; 

18 ‘‘(B) retiring farmers; and 

19 ‘‘(C) applicants for farm ownership loans 

20 under this chapter; 

21 ‘‘(3) encourage retiring farmers to assist in the 

22 sale of their farms to qualified beginning farmers and 

23 socially disadvantaged farmers providing seller fi24 nancing; 
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1 ‘‘(4) coordinate the loan program established by 

2 this section with State programs that provide farm 

3 ownership or operating loans for beginning farmers 

4 or socially disadvantaged farmers; and 

5 ‘‘(5) establish annual performance goals to pro6 mote the use of the down payment loan program and 

7 other joint financing arrangements as the preferred 

8 choice for direct real estate loans made by any lender 

9 to a qualified beginning farmer or socially disadvan10 taged farmer. 

11 ‘‘SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVAN12 TAGED FARMER CONTRACT LAND SALES PRO13 GRAM. 

14 ‘‘(a) IN GENERAL.—The Secretary shall, in accordance 

15 with this section, guarantee a loan made by a private seller 

16 of a farm to a qualified beginning farmer or socially dis17 advantaged farmer on a contract land sales basis. 

18 ‘‘(b) ELIGIBILITY.—To be eligible for a loan guarantee 

19 under subsection (a)— 

20 ‘‘(1) the qualified beginning farmer or socially 

21 disadvantaged farmer shall— 

22 ‘‘(A) on the date the contract land sale that 

23 is subject of the loan is complete, own and oper24 ate the farm that is the subject of the contract 

25 land sale; 
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1 ‘‘(B) have a credit history that— 

2 ‘‘(i) includes a record of satisfactory 

3 debt repayment, as determined by the Sec4 retary; and 

5 ‘‘(ii) is acceptable to the Secretary; 

6 and 

7 ‘‘(C) demonstrate to the Secretary that the 

8 farmer is unable to obtain sufficient credit with9 out a guarantee to finance any actual need of the 

10 farmer at a reasonable rate or term; and 

11 ‘‘(2) the loan shall meet applicable underwriting 

12 criteria, as determined by the Secretary. 

13 ‘‘(c) LIMITATIONS.—The Secretary shall not provide a 

14 loan guarantee under subsection (a) if— 

15 ‘‘(1) the contribution of the qualified beginning 

16 farmer or socially disadvantaged farmer to the down 

17 payment for the farm that is the subject of the con18 tract land sale would be less than 5 percent of the 

19 purchase price of the farm; or 

20 ‘‘(2) the purchase price or the appraisal value of 

21 the farm that is the subject of the contract land sale 

22 is greater than $500,000. 

23 ‘‘(d) PERIOD OF GUARANTEE.—A loan guarantee 

24 under this section shall be in effect for the 10-year period 

25 beginning on the date on which the guarantee is provided. 
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1 ‘‘(e) GUARANTEE PLAN.— 

2 ‘‘(1) SELECTION OF PLAN.—A private seller of a 

3 farm who makes a loan guaranteed by the Secretary 

4 under subsection (a) may select— 

5 ‘‘(A) a prompt payment guarantee plan, 

6 which shall cover— 

7 ‘‘(i) 3 amortized annual installments; 

8 or 

9 ‘‘(ii) an amount equal to 3 annual in10 stallments (including an amount equal to 

11 the total cost of any tax and insurance in12 curred during the period covered by the an13 nual installments); or 

14 ‘‘(B) a standard guarantee plan, which 

15 shall cover an amount equal to 90 percent of the 

16 outstanding principal of the loan. 

17 ‘‘(2) ELIGIBILITY FOR STANDARD GUARANTEE

18 PLAN.—To be eligible for a standard guarantee plan 

19 referred to in paragraph (1)(B), a private seller 

20 shall— 

21 ‘‘(A) secure a commercial lending institu22 tion or similar entity, as determined by the Sec23 retary, to serve as an escrow agent; or 
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1 ‘‘(B) in cooperation with the farmer, use an 

2 appropriate alternate arrangement, as deter3 mined by the Secretary. 

4 ‘‘CHAPTER 2—OPERATING LOANS 

5 ‘‘SEC. 3201. OPERATING LOANS. 

6 ‘‘(a) IN GENERAL.—The Secretary may make or guar7 antee an operating loan under this chapter to an eligible 

8 farmer in the United States. 

9 ‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 

10 subsection (a) only— 

11 ‘‘(1) if the farmer, or an individual holding a 

12 majority interest in the farmer— 

13 ‘‘(A) is a citizen of the United States; and 

14 ‘‘(B) has training or farming experience 

15 that the Secretary determines is sufficient to en16 sure a reasonable prospect of success in the farm17 ing operation proposed by the farmer; 

18 ‘‘(2) in the case of a farmer that is an indi19 vidual, if the farmer is or proposes to become an oper20 ator of a farm that is not larger than a family farm; 

21 ‘‘(3) in the case of a farmer that is a cooperative, 

22 corporation, partnership, trust, limited liability com23 pany, joint operation, or such other legal entity as the 

24 Secretary determines to be appropriate, with respect 
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1 to the entity and each farm in which the entity has 

2 an ownership or operator interest— 

3 ‘‘(A) if— 

4 ‘‘(i) a majority interest is held by indi5 viduals who are related by blood or mar6 riage, as defined by the Secretary; 

7 ‘‘(ii) at least 1 of the individuals is or 

8 will be the operator of the farm; and 

9 ‘‘(iii) the farm is not larger than a 

10 family farm; 

11 ‘‘(B) if— 

12 ‘‘(i) all of the individuals who are or 

13 propose to become owners or operators of a 

14 farm are related by blood or marriage; 

15 ‘‘(ii) all of the individuals are or pro16 pose to become operators of the farm; and 

17 ‘‘(iii) each of the interests of the indi18 viduals separately constitutes not larger 

19 than a family farm even if the ownership 

20 interests of the individuals collectively con21 stitute larger than a family farm; or 

22 ‘‘(C) if— 

23 ‘‘(i) the entire interest is not held by 

24 individuals who are related by blood or 

25 marriage, as defined by the Secretary; 
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1 ‘‘(ii) all of the individuals are or pro2 pose to become farm operators; and 

3 ‘‘(iii) the farm is not larger than a 

4 family farm; 

5 ‘‘(4) in the case of an operator described in 

6 paragraph (3) that is owned, in whole or in part by 

7 1 or more other entities, if not less than 75 percent 

8 of the ownership interests of each other entity is 

9 owned directly or indirectly by 1 or more individuals 

10 who own the family farm; and 

11 ‘‘(5) if the farmer (or in the case of a farmer 

12 that is an entity, the 1 or more individuals that hold 

13 a majority interest in the entity) is unable to obtain 

14 credit elsewhere. 

15 ‘‘(c) DIRECT LOANS.— 

16 ‘‘(1) IN GENERAL.—The Secretary may make a 

17 direct loan under this chapter only to a farmer who— 

18 ‘‘(A) is a qualified beginning farmer; 

19 ‘‘(B) has not received a previous direct op20 erating loan made under this chapter; or 

21 ‘‘(C) has not received a direct operating 

22 loan made under this chapter for a total of 10 

23 years, plus any year the farmer or rancher did 

24 not receive a direct operating loan after the year 

25 in which the borrower initially received a direct 
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† HR 2642 EAS 

1 operating loan under this chapter, as determined 

2 by the Secretary. 

3 ‘‘(2) YOUTH LOANS.—In this subsection, the term 

4 ‘direct operating loan’ shall not include a loan made 

5 to a youth under subsection (d). 

6 ‘‘(3) WAIVERS.— 

7 ‘‘(A) FARM OPERATIONS ON TRIBAL

8 LAND.—The Secretary shall waive the limitation 

9 under paragraph (1)(C) for a direct loan made 

10 under this chapter to a farmer whose farm land 

11 is subject to the jurisdiction of an Indian tribe 

12 and whose loan is secured by 1 or more security 

13 instruments that are subject to the jurisdiction of 

14 an Indian tribe if the Secretary determines that 

15 commercial credit is not generally available for 

16 such farm operations. 

17 ‘‘(B) OTHER FARM OPERATIONS.—On a 

18 case-by-case determination not subject to admin19 istrative appeal, the Secretary may grant a bor20 rower a waiver, 1 time only for a period of 2 

21 years, of the limitation under paragraph (1)(C) 

22 for a direct operating loan if the borrower dem23 onstrates to the satisfaction of the Secretary 

24 that— 
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1 ‘‘(i) the borrower has a viable farm op2 eration; 

3 ‘‘(ii) the borrower applied for commer4 cial credit from at least 2 commercial lend5 ers; 

6 ‘‘(iii) the borrower was unable to ob7 tain a commercial loan (including a loan 

8 guaranteed by the Secretary); and 

9 ‘‘(iv) the borrower successfully has 

10 completed, or will complete within 1 year, 

11 borrower training under section 3419 (from 

12 which requirement the Secretary shall not 

13 grant a waiver under section 3419(f)). 

14 ‘‘(d) YOUTH LOANS.— 

15 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

16 (b), except for citizenship and credit requirements, a 

17 loan may be made under this chapter to a youth who 

18 is a rural resident to enable the youth to operate an 

19 enterprise in connection with the participation in a 

20 youth organization, as determined by the Secretary. 

21 ‘‘(2) FULL PERSONAL LIABILITY.—A youth re22 ceiving a loan under this subsection who executes a 

23 promissory note for the loan shall incur full personal 

24 liability for the indebtedness evidenced by the note, in 
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1 accordance with the terms of the note, free of any dis2 ability of minority. 

3 ‘‘(3) COSIGNER.—The Secretary may accept the 

4 personal liability of a cosigner of a promissory note 

5 for a loan under this subsection, in addition to the 

6 personal liability of the youth borrower. 

7 ‘‘(4) YOUTH ENTERPRISES NOT FARMING.—The 

8 operation of an enterprise by a youth under this sub9 section shall not be considered the operation of a farm 

10 under this subtitle. 

11 ‘‘(5) RELATION TO OTHER LOAN PROGRAMS.— 

12 Notwithstanding any other provision of law, if a bor13 rower becomes delinquent with respect to a youth loan 

14 made under this subsection, the borrower shall not be15 come ineligible, as a result of the delinquency, to re16 ceive loans and loan guarantees from the Federal gov17 ernment to pay for education expenses of the bor18 rower. 

19 ‘‘(e) PILOT LOAN PROGRAM TO SUPPORT HEALTHY

20 FOODS FOR THE HUNGRY.— 

21 ‘‘(1) DEFINITION OF GLEANER.—In this sub22 section, the term ‘gleaner’ means an entity that— 

23 ‘‘(A) collects edible, surplus food that would 

24 be thrown away and distributes the food to agen-
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1 cies or nonprofit organizations that feed the hun2 gry; or 

3 ‘‘(B) harvests for free distribution to the 

4 needy, or for donation to agencies or nonprofit 

5 organizations for ultimate distribution to the 

6 needy, an agricultural crop that has been do7 nated by the owner of the crop. 

8 ‘‘(2) PROGRAM.—Not later than 180 days after 

9 the date of enactment of this subsection, the Secretary 

10 shall establish, within the operating loan program es11 tablished under this chapter, a pilot program under 

12 which the Secretary makes loans available to eligible 

13 entities to assist the entities in providing food to the 

14 hungry. 

15 ‘‘(3) ELIGIBILITY.—In addition to any other 

16 person eligible under the terms and conditions of the 

17 operating loan program established under this chap18 ter, gleaners shall be eligible to receive loans under 

19 this subsection. 

20 ‘‘(4) LOAN AMOUNT.— 

21 ‘‘(A) IN GENERAL.—Each loan issued under 

22 the program shall be in an amount of not less 

23 than $500 and not more than $5,000. 

24 ‘‘(B) REDISTRIBUTION.—If the eligible re25 cipients in a State do not use the full allocation 
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1 of loans that are available to eligible recipients 

2 in the State under this subsection, the Secretary 

3 may use any unused amounts to make loans 

4 available to eligible entities in other States in 

5 accordance with this subsection. 

6 ‘‘(5) LOAN PROCESSING.— 

7 ‘‘(A) IN GENERAL.—The Secretary shall 

8 process any loan application submitted under 

9 the program not later than 30 days after the 

10 date on which the application was submitted. 

11 ‘‘(B) EXPEDITING APPLICATIONS.—The Sec12 retary shall take any measure the Secretary de13 termines necessary to expedite any application 

14 submitted under the program. 

15 ‘‘(6) PAPERWORK REDUCTION.—The Secretary 

16 shall take measures to reduce any paperwork require17 ments for loans under the program. 

18 ‘‘(7) PROGRAM INTEGRITY.—The Secretary shall 

19 take such actions as are necessary to ensure the integ20 rity of the program established under this subsection. 

21 ‘‘(8) MAXIMUM AMOUNT.—Of funds that are 

22 made available to carry out this chapter, the Sec23 retary shall use to carry out this subsection a total 

24 amount of not more than $500,000. 
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1 ‘‘(9) REPORT.—Not later than 180 days after the 

2 maximum amount of funds are used to carry out this 

3 subsection under paragraph (8), the Secretary shall 

4 submit to the Committee on Agriculture of the House 

5 of Representatives and the Committee on Agriculture, 

6 Nutrition, and Forestry of the Senate a report that 

7 describes the results of the pilot program and the fea8 sibility of expanding the program. 

9 ‘‘SEC. 3202. PURPOSES OF LOANS. 

10 ‘‘(a) DIRECT LOANS.—A direct loan may be made 

11 under this chapter only— 

12 ‘‘(1) to pay the costs incident to reorganizing a 

13 farm for more profitable operation; 

14 ‘‘(2) to purchase livestock, poultry, or farm 

15 equipment; 

16 ‘‘(3) to purchase feed, seed, fertilizer, insecticide, 

17 or farm supplies, or to meet other essential farm oper18 ating expenses, including cash rent; 

19 ‘‘(4) to finance land or water development, use, 

20 or conservation; 

21 ‘‘(5) to pay loan closing costs; 

22 ‘‘(6) to assist a farmer in changing the equip23 ment, facilities, or methods of operation of a farm to 

24 comply with a standard promulgated under section 6 

25 of the Occupational Safety and Health Act of 1970 
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1 (29 U.S.C. 655) or a standard adopted by a State 

2 under a plan approved under section 18 of that Act 

3 (29 U.S.C. 667), if the Secretary determines that 

4 without assistance under this paragraph the farmer is 

5 likely to suffer substantial economic injury in com6 plying with the standard; 

7 ‘‘(7) to train a limited-resource borrower receiv8 ing a loan under section 3106 in maintaining records 

9 of farming operations; 

10 ‘‘(8) to train a borrower under section 3419; 

11 ‘‘(9) to refinance the indebtedness of a borrower, 

12 if the borrower— 

13 ‘‘(A) has refinanced a loan under this chap14 ter not more than 4 times previously; and 

15 ‘‘(B)(i) is a direct loan borrower under this 

16 subtitle at the time of the refinancing and has 

17 suffered a qualifying loss because of a natural or 

18 major disaster or emergency; or 

19 ‘‘(ii) is refinancing a debt obtained from a 

20 creditor other than the Secretary; 

21 ‘‘(10) to provide other farm or home needs, in22 cluding family subsistence; or 

23 ‘‘(11) to assist a farmer in the production of a 

24 locally or regionally produced agricultural food prod25 uct (as defined in section 3601(e)(11)(A)), including 
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1 to qualified producers engaged in direct-to-consumer 

2 marketing, direct-to-institution marketing, or direct3 to-store marketing, business, or activities that produce 

4 a value-added agricultural product (as defined in sec5 tion 231(a) of the Agricultural Risk Protection Act of 

6 2000 (7 U.S.C. 1632a(a))). 

7 ‘‘(b) GUARANTEED LOANS.—A loan may be guaran8 teed under this chapter only— 

9 ‘‘(1) to pay the costs incident to reorganizing a 

10 farm for more profitable operation; 

11 ‘‘(2) to purchase livestock, poultry, or farm 

12 equipment; 

13 ‘‘(3) to purchase feed, seed, fertilizer, insecticide, 

14 or farm supplies, or to meet other essential farm oper15 ating expenses, including cash rent; 

16 ‘‘(4) to finance land or water development, use, 

17 or conservation; 

18 ‘‘(5) to refinance indebtedness; 

19 ‘‘(6) to pay loan closing costs; 

20 ‘‘(7) to assist a farmer in changing the equip21 ment, facilities, or methods of operation of a farm to 

22 comply with a standard promulgated under section 6 

23 of the Occupational Safety and Health Act of 1970 

24 (29 U.S.C. 655) or a standard adopted by a State 

25 under a plan approved under section 18 of that Act 
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1 (29 U.S.C. 667), if the Secretary determines that 

2 without assistance under this paragraph the farmer is 

3 likely to suffer substantial economic injury due to 

4 compliance with the standard; 

5 ‘‘(8) to train a borrower under section 3419; or 

6 ‘‘(9) to provide other farm or home needs, in7 cluding family subsistence. 

8 ‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec9 retary may not make a loan to a farmer under this chapter 

10 unless the farmer has, or agrees to obtain, hazard insurance 

11 on the property to be acquired with the loan. 

12 ‘‘(d) PRIVATE RESERVE.— 

13 ‘‘(1) IN GENERAL.—Notwithstanding any other 

14 provision of this title, the Secretary may reserve a 

15 portion of any loan made under this chapter to be 

16 placed in an unsupervised bank account that may be 

17 used at the discretion of the borrower for the basic 

18 family needs of the borrower and the immediate fam19 ily of the borrower. 

20 ‘‘(2) LIMIT ON SIZE OF THE RESERVE.—The size 

21 of the reserve shall not exceed the lesser of— 

22 ‘‘(A) 10 percent of the loan; 

23 ‘‘(B) $5,000; or 

24 ‘‘(C) the amount needed to provide for the 

25 basic family needs of the borrower and the imme-
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1 diate family of the borrower for 3 calendar 

2 months. 

3 ‘‘(e) LOANS TO LOCAL AND REGIONAL FOOD PRO4 DUCERS.— 

5 ‘‘(1) TRAINING.—The Secretary shall ensure that 

6 loan officers processing loans under subsection (a)(11) 

7 receive appropriate training to serve borrowers and 

8 potential borrowers engaged in local and regional food 

9 production. 

10 ‘‘(2) VALUATION.— 

11 ‘‘(A) IN GENERAL.—The Secretary shall de12 velop ways to determine unit prices (or other ap13 propriate forms of valuation) for crops and other 

14 agricultural products, the end use of which is in15 tended to be in locally or regionally produced ag16 ricultural food products, to facilitate lending to 

17 local and regional food producers. 

18 ‘‘(B) PRICE HISTORY.—The Secretary shall 

19 implement a mechanism for local and regional 

20 food producers to establish price history for the 

21 crops and other agricultural products produced 

22 by local and regional food producers. 

23 ‘‘(3) OUTREACH.—The Secretary shall develop 

24 and implement an outreach strategy to engage and 
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1 provide loan services to local and regional food pro2 ducers. 

3 ‘‘SEC. 3203. RESTRICTIONS ON LOANS. 

4 ‘‘(a) REQUIREMENTS.— 

5 ‘‘(1) IN GENERAL.—The Secretary may not make 

6 or guarantee a loan under this chapter— 

7 ‘‘(A) that would cause the total principal 

8 indebtedness outstanding at any 1 time for loans 

9 made under this chapter to any 1 borrower to ex10 ceed— 

11 ‘‘(i)(I) in the case of a loan made by 

12 the Secretary, $300,000; or 

13 ‘‘(II) in the case of a loan guaranteed 

14 by the Secretary, $700,000 (as modified 

15 under paragraph (2)); or 

16 ‘‘(B) for the purchasing or leasing of land 

17 other than for cash rent, or for carrying on a 

18 land leasing or land purchasing program. 

19 ‘‘(2) MODIFICATION.—The amount specified in 

20 paragraph (1)(A)(ii) shall be— 

21 ‘‘(A) increased, beginning with fiscal year 

22 2000, by the inflation percentage applicable to 

23 the fiscal year in which the loan is guaranteed; 

24 and 
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1 ‘‘(B) reduced by the unpaid indebtedness of 

2 the borrower on loans under sections specified in 

3 section 3104 that are guaranteed by the Sec4 retary. 

5 ‘‘(b) INFLATION PERCENTAGE.—For purposes of this 

6 section, the inflation percentage applicable to a fiscal year 

7 is the percentage (if any) by which— 

8 ‘‘(1) the average of the Prices Paid By Farmers 

9 Index (as compiled by the National Agricultural Sta10 tistics Service of the Department) for the 12-month 

11 period ending on August 31 of the immediately pre12 ceding fiscal year; exceeds 

13 ‘‘(2) the average of that index (as so defined) for 

14 the 12-month period ending on August 31, 1996. 

15 ‘‘SEC. 3204. TERMS OF LOANS. 

16 ‘‘(a) PERSONAL LIABILITY.—A borrower of a loan 

17 made under this chapter shall secure the loan with the full 

18 personal liability of the borrower and such other security 

19 as the Secretary may prescribe. 

20 ‘‘(b) INTEREST RATES.— 

21 ‘‘(1) MAXIMUM RATE.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 paragraphs (2) and (3), the interest rate on a 

24 loan made under this chapter (other than a 

25 guaranteed loan) shall be determined by the Sec-
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† HR 2642 EAS 

1 retary at a rate not to exceed the sum obtained 

2 by adding— 

3 ‘‘(i) the current average market yield 

4 on outstanding marketable obligations of the 

5 United States with remaining periods to 

6 maturity comparable to the average matu7 rity of the loan; and 

8 ‘‘(ii) an additional charge not to ex9 ceed 1 percent, as determined by the Sec10 retary. 

11 ‘‘(B) ADJUSTMENT.—The sum obtained 

12 under subparagraph (A) shall be adjusted to the 

nearest 1 13 ⁄8 of 1 percent. 

14 ‘‘(2) GUARANTEED LOAN.—The interest rate on a 

15 guaranteed loan made under this chapter shall be 

16 such rate as may be agreed on by the borrower and 

17 the lender, but may not exceed any rate prescribed by 

18 the Secretary. 

19 ‘‘(3) LOW INCOME LOAN.—The interest rate on a 

20 direct loan made under this chapter to a low-income, 

21 limited-resource borrower shall be determined by the 

22 Secretary at a rate that is not— 

23 ‘‘(A) greater than the sum obtained by add24 ing— 
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‘‘(i) an amount that does not exceed 1 1 ⁄2

2 of the current average market yield on out3 standing marketable obligations of the 

4 United States with a maturity of 5 years; 

5 and 

6 ‘‘(ii) an amount not to exceed 1 per7 cent per year, as the Secretary determines is 

8 appropriate; or 

9 ‘‘(B) less than 5 percent per year. 

10 ‘‘(c) PERIOD FOR REPAYMENT.—The period for repay11 ment of a loan made under this chapter may not exceed 

12 7 years. 

13 ‘‘(d) LINE-OF-CREDIT LOANS.— 

14 ‘‘(1) IN GENERAL.—A loan made or guaranteed 

15 by the Secretary under this chapter may be in the 

16 form of a line-of-credit loan. 

17 ‘‘(2) TERM.—A line-of-credit loan under para18 graph (1) shall terminate not later than 5 years after 

19 the date that the loan is made or guaranteed. 

20 ‘‘(3) ELIGIBILITY.—For purposes of determining 

21 eligibility for an operating loan under this chapter, 

22 each year during which a farmer takes an advance or 

23 draws on a line-of-credit loan the farmer shall be con24 sidered as having received an operating loan for 1 

25 year. 
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1 ‘‘(4) TERMINATION OF DELINQUENT LOANS.—If 

2 a borrower does not pay an installment on a line-of3 credit loan on schedule, the borrower may not take an 

4 advance or draw on the line-of-credit, unless the Sec5 retary determines that— 

6 ‘‘(A) the failure of the borrower to pay on 

7 schedule was due to unusual conditions that the 

8 borrower could not control; and 

9 ‘‘(B) the borrower will reduce the line-of10 credit balance to the scheduled level at the end 

11 of— 

12 ‘‘(i) the production cycle; or 

13 ‘‘(ii) the marketing of the agricultural 

14 products of the borrower. 

15 ‘‘(5) AGRICULTURAL COMMODITIES.—A line-of16 credit loan may be used to finance the production or 

17 marketing of an agricultural commodity that is eligi18 ble for a price support program of the Department. 

19 ‘‘CHAPTER 3—EMERGENCY LOANS 

20 ‘‘SEC. 3301. EMERGENCY LOANS. 

21 ‘‘(a) IN GENERAL.—The Secretary shall make or guar22 antee an emergency loan under this chapter to an eligible 

23 farmer (including a commercial fisherman) only to the ex24 tent and in such amounts as provided in advance in appro25 priation Acts. 
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1 ‘‘(b) ELIGIBILITY.—An established farmer shall be eli2 gible under subsection (a) only— 

3 ‘‘(1) if the farmer or an individual holding a 

4 majority interest in the farmer— 

5 ‘‘(A) is a citizen of the United States; and 

6 ‘‘(B) has experience and resources that the 

7 Secretary determines are sufficient to ensure a 

8 reasonable prospect of success in the farming op9 eration proposed by the farmer; 

10 ‘‘(2) in the case of a farmer that is an indi11 vidual, if the farmer is— 

12 ‘‘(A) in the case of a loan for a purpose 

13 under chapter 1, an owner, operator, or lessee14 operator described in section 3101(b)(2); and 

15 ‘‘(B) in the case of a loan for a purpose 

16 under chapter 2, an operator of a farm that is 

17 not larger than a family farm; 

18 ‘‘(3) in the case of a farmer that is a cooperative, 

19 corporation, partnership, trust, limited liability com20 pany, joint operation, or such other legal entity as the 

21 Secretary determines to be appropriate, with respect 

22 to the entity and each farm in which the entity has 

23 an ownership or operator interest— 

24 ‘‘(A) if— 
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1 ‘‘(i) a majority interest is held by indi2 viduals who are related by blood or mar3 riage, as defined by the Secretary; 

4 ‘‘(ii) at least 1 of the individuals is or 

5 will be the operator of the farm; and 

6 ‘‘(iii) the farm is not larger than a 

7 family farm; 

8 ‘‘(B) if— 

9 ‘‘(i) all of the individuals who are or 

10 propose to become owners or operators of a 

11 farm are related by blood or marriage; 

12 ‘‘(ii) all of the individuals are or pro13 pose to become operators of the farm; and 

14 ‘‘(iii) each of the interests of the indi15 viduals separately constitutes not larger 

16 than a family farm even if the ownership 

17 interests of the individuals collectively con18 stitute larger than a family farm; or 

19 ‘‘(C) if— 

20 ‘‘(i) the entire interest is not held by 

21 individuals who are related by blood or 

22 marriage, as defined by the Secretary; 

23 ‘‘(ii) all of the individuals are or pro24 pose to become farm operators; and 
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1 ‘‘(iii) the farm is not larger than a 

2 family farm; 

3 ‘‘(4) if the entity is owned, in whole or in part, 

4 by 1 or more other entities and each individual who 

5 is an owner of the family farm involved has a direct 

6 or indirect ownership interest in each of the other en7 tities; 

8 ‘‘(5) if the farmer (or in the case of a farmer 

9 that is an entity, the 1 or more individuals that hold 

10 a majority interest in the entity) is unable to obtain 

11 credit elsewhere; and 

12 ‘‘(6)(A) if the Secretary finds that the operations 

13 of the farmer have been substantially affected by— 

14 ‘‘(i) a natural or major disaster or emer15 gency designated by the President under the Rob16 ert T. Stafford Disaster Relief and Emergency 

17 Assistance Act (42 U.S.C. 5121 et seq.); or 

18 ‘‘(ii) a quarantine imposed by the Secretary 

19 under the Plant Protection Act (7 U.S.C. 7701 

20 et seq.) or the Animal Health Protection Act (7 

21 U.S.C. 8301 et seq.); or 

22 ‘‘(B) if the farmer conducts farming operations 

23 in a county or a county contiguous to a county in 

24 which the Secretary has found that farming oper-
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1 ations have been substantially affected by a natural 

2 or major disaster or emergency. 

3 ‘‘(c) TIME FOR ACCEPTING AN APPLICATION.—The 

4 Secretary shall accept an application for a loan under this 

5 chapter from a farmer at any time during the 8-month pe6 riod beginning on the date that— 

7 ‘‘(1) the Secretary determines that farming oper8 ations of the farmer have been substantially affected 

9 by— 

10 ‘‘(A) a quarantine imposed by the Secretary 

11 under the Plant Protection Act (7 U.S.C. 7701 

12 et seq.) or the Animal Health Protection Act (7 

13 U.S.C. 8301 et seq.); or 

14 ‘‘(B) a natural disaster; or 

15 ‘‘(2) the President makes a major disaster or 

16 emergency designation with respect to the affected 

17 county of the farmer referred to in subsection 

18 (b)(5)(B). 

19 ‘‘(d) HAZARD INSURANCE REQUIREMENT.—The Sec20 retary may not make a loan to a farmer under this chapter 

21 to cover a property loss unless the farmer had hazard insur22 ance that insured the property at the time of the loss. 

23 ‘‘(e) FAMILY FARM.—The Secretary shall conduct the 

24 loan program under this chapter in a manner that will fos25 ter and encourage the family farm system of agriculture, 
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1 consistent with the reaffirmation of policy and declaration 

2 of the intent of Congress contained in section 102(a) of the 

3 Food and Agriculture Act of 1977 (7 U.S.C. 2266(a)). 

4 ‘‘SEC. 3302. PURPOSES OF LOANS. 

5 ‘‘Subject to the limitations on the amounts of loans 

6 provided in section 3303(a), a loan may be made or guar7 anteed under this chapter for— 

8 ‘‘(1) any purpose authorized for a loan under 

9 chapter 1 or 2; and 

10 ‘‘(2) crop or livestock purposes that are— 

11 ‘‘(A) necessitated by a quarantine, natural 

12 disaster, major disaster, or emergency; and 

13 ‘‘(B) considered desirable by the farmer. 

14 ‘‘SEC. 3303. TERMS OF LOANS. 

15 ‘‘(a) MAXIMUM AMOUNT OF LOAN.—The Secretary 

16 may not make or guarantee a loan under this chapter to 

17 a borrower who has suffered a loss in an amount that— 

18 ‘‘(1) exceeds the actual loss caused by a disaster; 

19 or 

20 ‘‘(2) would cause the total indebtedness of the 

21 borrower under this chapter to exceed $500,000. 

22 ‘‘(b) INTEREST RATES.—Any portion of a loan under 

23 this chapter up to the amount of the actual loss suffered 

24 by a farmer caused by a disaster shall be at a rate pre-
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† HR 2642 EAS 

1 scribed by the Secretary, but not in excess of 8 percent per 

2 annum. 

3 ‘‘(c) INTEREST SUBSIDIES FOR GUARANTEED

4 LOANS.—In the case of a guaranteed loan under this chap5 ter, the Secretary may pay an interest subsidy to the lender 

6 for any portion of the loan up to the amount of the actual 

7 loss suffered by a farmer caused by a disaster. 

8 ‘‘(d) TIME FOR REPAYMENT.— 

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2), a 

10 loan under this chapter shall be repayable at such 

11 times as the Secretary may determine, considering the 

12 purpose of the loan and the nature and effect of the 

13 disaster, but not later than the maximum repayment 

14 period allowed for a loan for a similar purpose under 

15 chapters 1 and 2. 

16 ‘‘(2) EXTENDED REPAYMENT PERIOD.—The Sec17 retary may, if the loan is for a purpose described in 

18 chapter 2 and the Secretary determines that the need 

19 of the loan applicant justifies the longer repayment 

20 period, make the loan repayable at the end of a pe21 riod of more than 7 years, but not more than 20 

22 years. 

23 ‘‘(e) SECURITY FOR LOAN.— 

24 ‘‘(1) IN GENERAL.—A borrower of a loan made 

25 under this chapter shall secure the loan with the full 
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1 personal liability of the borrower and such other secu2 rity as the Secretary may prescribe. 

3 ‘‘(2) ADEQUATE SECURITY.—Subject to para4 graph (3), the Secretary may not make or guarantee 

5 a loan under this chapter unless the security for the 

6 loan is adequate to ensure repayment of the loan. 

7 ‘‘(3) INADEQUATE SECURITY DUE TO DIS8 ASTER.—If adequate security for a loan under this 

9 chapter is not available because of a disaster, the Sec10 retary shall accept as security any collateral that is 

11 available if the Secretary is confident that the collat12 eral and the repayment ability of the farmer are ade13 quate security for the loan. 

14 ‘‘(4) VALUATION OF FARM ASSETS.—If a farm 

15 asset (including land, livestock, or equipment) is used 

16 as collateral to secure a loan applied for under this 

17 chapter and the governor of the State in which the 

18 farm is located requests assistance under this chapter 

19 or the Robert T. Stafford Disaster Relief and Emer20 gency Assistance Act (42 U.S.C. 5121 et seq.) for the 

21 portion of the State in which the asset is located, the 

22 Secretary shall establish the value of the asset as of 

23 the day before the occurrence of the natural or major 

24 disaster or emergency. 

25 ‘‘(f) REVIEW OF LOAN.— 
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1 ‘‘(1) IN GENERAL.—In the case of a loan made, 

2 but not guaranteed, under section 3301, the Secretary 

3 shall review the loan 3 years after the loan is made, 

4 and every 2 years thereafter for the term of the loan. 

5 ‘‘(2) TERMINATION OF FEDERAL ASSISTANCE.— 

6 If, based on a review under paragraph (1), the Sec7 retary determines that the borrower is able to obtain 

8 a loan from a non-Federal source at reasonable rates 

9 and terms, the borrower shall, on request by the Sec10 retary, apply for, and accept, a non-Federal loan in 

11 a sufficient amount to repay the Secretary. 

12 ‘‘SEC. 3304. PRODUCTION LOSSES. 

13 ‘‘(a) IN GENERAL.—The Secretary shall make or guar14 antee a loan under this chapter to an eligible farmer for 

15 production losses if a single enterprise that constitutes a 

16 basic part of the farming operation of the farmer has sus17 tained at least a 30 percent loss in normal per acre or per 

18 animal production, or such lesser percentage as the Sec19 retary may determine, as a result of a disaster. 

20 ‘‘(b) BASIS FOR PERCENTAGE.—A percentage loss 

21 under subsection (a) shall be based on the average monthly 

22 price in effect for the previous crop or calendar year, as 

23 appropriate. 

24 ‘‘(c) AMOUNT OF LOAN.—A loan under subsection (a) 

25 shall be in an amount that is equal to 80 percent, or such 
468 

† HR 2642 EAS 

1 greater percentage as the Secretary may determine, of the 

2 total calculated actual production loss sustained by the 

3 farmer. 

4 ‘‘CHAPTER 4—GENERAL FARMER LOAN 

5 PROVISIONS 

6 ‘‘SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND. 

7 ‘‘The fund established pursuant to section 11(a) of the 

8 Bankhead-Jones Farm Tenant Act (60 Stat. 1075, chapter 

9 964) shall be known as the Agricultural Credit Insurance 

10 Fund (referred to in this section as the ‘Fund’, unless the 

11 context otherwise requires) for the discharge of the obliga12 tions of the Secretary under agreements insuring loans 

13 under this subtitle and loans and mortgages insured under 

14 prior authority. 

15 ‘‘SEC. 3402. GUARANTEED FARMER LOANS. 

16 ‘‘(a) IN GENERAL.—The Secretary may provide finan17 cial assistance to a borrower for a purpose provided in this 

18 subtitle by guaranteeing a loan made by any Federal or 

19 State chartered bank, savings and loan association, cooper20 ative lending agency, or other legally organized lending 

21 agency. 

22 ‘‘(b) INTEREST RATE.—The interest rate payable by 

23 a borrower on the portion of a guaranteed loan that is sold 

24 by a lender to the secondary market under this subtitle may 

25 be lower than the interest rate charged on the portion re-
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† HR 2642 EAS 

1 tained by the lender, but shall not exceed the average inter2 est rate charged by the lender on loans made to farm bor3 rowers. 

4 ‘‘(c) FEES.—In the case of a loan guarantee on a loan 

5 made by a commercial or cooperative lender related to a 

6 loan made by the Secretary under section 3107— 

7 ‘‘(1) the Secretary shall not charge a fee to any 

8 person (including a lender); and 

9 ‘‘(2) a lender may charge a loan origination and 

10 servicing fee in an amount not to exceed 1 percent of 

11 the amount of the loan. 

12 ‘‘(d) MAXIMUM GUARANTEE OF 90 PERCENT.—Except 

13 as provided in subsections (e) and (f), a loan guarantee 

14 under this subtitle shall be for not more than 90 percent 

15 of the principal and interest due on the loan. 

16 ‘‘(e) REFINANCED LOANS GUARANTEED AT 95 PER17 CENT.—The Secretary shall guarantee 95 percent of— 

18 ‘‘(1) in the case of a loan that solely refinances 

19 a direct loan made under this subtitle, the principal 

20 and interest due on the loan on the date of the refi21 nancing; or 

22 ‘‘(2) in the case of a loan that is used for mul23 tiple purposes, the portion of the loan that refinances 

24 the principal and interest due on a direct loan made 
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1 under this subtitle that is outstanding on the date the 

2 loan is guaranteed. 

3 ‘‘(f) BEGINNING FARMER LOANS GUARANTEED UP TO

4 95 PERCENT.—The Secretary may guarantee not more than 

5 95 percent of— 

6 ‘‘(1) a farm ownership loan for acquiring a farm 

7 to a borrower who is participating in the downpay8 ment loan program under section 3107; or 

9 ‘‘(2) an operating loan to a borrower who is par10 ticipating in the downpayment loan program under 

11 section 3107 that is made during the period that the 

12 borrower has a direct loan outstanding under chapter 

13 1 for acquiring a farm. 

14 ‘‘(g) GUARANTEE OF LOANS MADE UNDER STATE BE15 GINNING FARMER PROGRAMS.—The Secretary may guar16 antee under this subtitle a loan made under a State begin17 ning farmer program, including a loan financed by the net 

18 proceeds of a qualified small issue agricultural bond for 

19 land or property described in section 144(a)(12)(B)(ii) of 

20 the Internal Revenue Code of 1986. 

21 ‘‘(h) PARTIAL LIQUIDATIONS.—If a partial liquida22 tion of a delinquent loan is performed (with the prior con23 sent of the Secretary) as part of loan servicing by a guaran24 teed lender under this subtitle, the Secretary shall not re-
471 

† HR 2642 EAS 

1 quire full liquidation of the loan for the lender to be eligible 

2 to receive payment on losses. 

3 ‘‘SEC. 3403. PROVISION OF INFORMATION TO BORROWERS. 

4 ‘‘(a) APPROVAL NOTIFICATION.—The Secretary shall 

5 approve or disapprove an application for a loan or loan 

6 guarantee made under this subtitle, and notify the appli7 cant of such action, not later than 60 days after the date 

8 on which the Secretary has received a complete application 

9 for the loan or loan guarantee. 

10 ‘‘(b) LIST OF LENDERS.—The Secretary shall make 

11 available to any farmer, on request, a list of lenders in the 

12 area that participate in guaranteed farmer program loan 

13 programs established under this subtitle, and other lenders 

14 in the area that express a desire to participate in the pro15 grams and that request inclusion on the list. 

16 ‘‘(c) OTHER INFORMATION.— 

17 ‘‘(1) IN GENERAL.—On the request of a borrower, 

18 the Secretary shall make available to the borrower— 

19 ‘‘(A) a copy of each document signed by the 

20 borrower; 

21 ‘‘(B) a copy of each appraisal performed 

22 with respect to the loan; and 

23 ‘‘(C) any document that the Secretary is re24 quired to provide to the borrower under any law 

25 in effect on the date of the request. 
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1 ‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 

2 shall not supersede any duty imposed on the Sec3 retary by a law in effect on January 5, 1988, unless 

4 the duty directly conflicts with a duty under para5 graph (1). 

6 ‘‘SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS. 

7 ‘‘(a) REQUIREMENT.—The Secretary shall provide no8 tice by certified mail to each borrower who is at least 90 

9 days past due on the payment of principal or interest on 

10 a loan made under this subtitle. 

11 ‘‘(b) CONTENTS.—The notice required under subsection 

12 (a) shall— 

13 ‘‘(1) include a summary of all primary loan 

14 service programs, homestead retention programs, debt 

15 settlement programs, and appeal procedures, includ16 ing the eligibility criteria, and terms and conditions 

17 of the programs and procedures; 

18 ‘‘(2) include a summary of the manner in which 

19 the borrower may apply, and be considered, for all 

20 such programs, except that the Secretary shall not re21 quire the borrower to select among the programs or 

22 waive any right to be considered for any program 

23 carried out by the Secretary; 
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† HR 2642 EAS 

1 ‘‘(3) advise the borrower regarding all filing re2 quirements and any deadlines that must be met for 

3 requesting loan servicing; 

4 ‘‘(4) provide any relevant forms, including ap5 plicable response forms; 

6 ‘‘(5) advise the borrower that a copy of regula7 tions is available on request; and 

8 ‘‘(6) be designed to be readable and understand9 able by the borrower. 

10 ‘‘(c) CONTAINED IN REGULATIONS.—All notices re11 quired by this section shall be contained in the regulations 

12 issued to carry out this subtitle. 

13 ‘‘(d) TIMING.—The notice described in subsection (b) 

14 shall be provided— 

15 ‘‘(1) at the time an application is made for par16 ticipation in a loan service program; 

17 ‘‘(2) on written request of the borrower; and 

18 ‘‘(3) before the earliest of the date of— 

19 ‘‘(A) initiating any liquidation; 

20 ‘‘(B) requesting the conveyance of security 

21 property; 

22 ‘‘(C) accelerating the loan; 

23 ‘‘(D) repossessing property; 

24 ‘‘(E) foreclosing on property; or 

25 ‘‘(F) taking any other collection action. 
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1 ‘‘(e) CONSIDERATION OF BORROWERS FOR LOAN

2 SERVICE PROGRAMS.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall consider 

4 a farmer program loan borrower for all loan service 

5 programs if, not later than 60 days after receipt of 

6 the notice described in subsection (b), the borrower re7 quests the consideration in writing. 

8 ‘‘(2) PRIORITY.—In considering a borrower for a 

9 loan service program, the Secretary shall place the 

10 highest priority on the preservation of the farming 

11 operations of the borrower. 

12 ‘‘SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDE13 LINES. 

14 ‘‘(a) IN GENERAL.—The Secretary shall ensure that 

15 appropriate procedures, including, to the extent practicable, 

16 onsite inspections, or use of county or State yield averages, 

17 are used in calculating future yields for an applicant for 

18 a loan, when an accurate projection cannot be made because 

19 the past production history of the farmer has been affected 

20 by a natural or major disaster or emergency. 

21 ‘‘(b) CALCULATION OF YIELDS.— 

22 ‘‘(1) IN GENERAL.—For the purpose of averaging 

23 the past yields of the farm of a farmer over a period 

24 of crop years to calculate the future yield of the farm 

25 under this subtitle, the Secretary shall permit the 
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† HR 2642 EAS 

1 farmer to exclude the crop year with the lowest actual 

2 or county average yield for the farm from the calcula3 tion, if the farmer was affected by a natural or major 

4 disaster or emergency during at least 2 of the crop 

5 years during the period. 

6 ‘‘(2) AFFECTED BY A NATURAL OR MAJOR DIS7 ASTER OR EMERGENCY.—A farmer was affected by a 

8 natural or major disaster or emergency under para9 graph (1) if the Secretary finds that the farming op10 erations of the farmer have been substantially affected 

11 by a natural or major disaster or emergency, includ12 ing a farmer who has a qualifying loss but is not lo13 cated in a designated or declared disaster area. 

14 ‘‘(3) APPLICATION OF SUBSECTION.—This sub15 section shall apply to any action taken by the Sec16 retary that involves— 

17 ‘‘(A) a loan under chapter 1 or 2; and 

18 ‘‘(B) the yield of a farm of a farmer, in19 cluding making a loan or loan guarantee, serv20 icing a loan, or making a credit sale. 

21 ‘‘SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON 

22 LOANS. 

23 ‘‘(a) APPLICANT REQUIREMENTS.—In connection with 

24 a loan made or guaranteed under this subtitle, the Sec25 retary shall require— 
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† HR 2642 EAS 

1 ‘‘(1) the applicant— 

2 ‘‘(A) to certify in writing that, and the Sec3 retary shall determine whether, the applicant is 

4 unable to obtain credit elsewhere; and 

5 ‘‘(B) to furnish an appropriate written fi6 nancial statement; 

7 ‘‘(2) except for a guaranteed loan, an agreement 

8 by the borrower that if at any time it appears to the 

9 Secretary that the borrower may be able to obtain a 

10 loan from a production credit association, a Federal 

11 land bank, or other responsible cooperative or private 

12 credit source (or, in the case of a borrower under sec13 tion 3106, the borrower may be able to obtain a loan 

14 under section 3101), at reasonable rates and terms for 

15 loans for similar purposes and periods of time, the 

16 borrower will, on request by the Secretary, apply for 

17 and accept the loan in a sufficient amount to repay 

18 the Secretary or the insured lender, or both, and to 

19 pay for any stock necessary to be purchased in a co20 operative lending agency in connection with the loan; 

21 ‘‘(3) such provision for supervision of the oper22 ations of the borrower as the Secretary shall consider 

23 necessary to achieve the objectives of the loan and pro24 tect the interests of the United States; and 
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† HR 2642 EAS 

1 ‘‘(4) the application of a person who is a veteran 

2 for a loan under chapter 1 or 2 to be given preference 

3 over a similar application from a person who is not 

4 a veteran if the applications are on file in a county 

5 or area office at the same time. 

6 ‘‘(b) AGENCY PROCESSING REQUIREMENTS.— 

7 ‘‘(1) NOTIFICATIONS.— 

8 ‘‘(A) INCOMPLETE APPLICATION NOTIFICA9 TION.—If an application for a loan or loan 

10 guarantee under this subtitle (other than an op11 erating loan or loan guarantee) is incomplete, 

12 the Secretary shall inform the applicant of the 

13 reasons the application is incomplete not later 

14 than 20 days after the date on which the Sec15 retary has received the application. 

16 ‘‘(B) OPERATING LOANS.— 

17 ‘‘(i) ADDITIONAL INFORMATION NEED18 ED.—Not later than 10 calendar days after 

19 the Secretary receives an application for an 

20 operating loan or loan guarantee, the Sec21 retary shall notify the applicant of any in22 formation required before a decision may be 

23 made on the application. 

24 ‘‘(ii) INFORMATION NOT RECEIVED.— 

25 If, not later than 20 calendar days after the 
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† HR 2642 EAS 

1 date a request is made pursuant to clause 

2 (i) with respect to an application, the Sec3 retary has not received the information re4 quested, the Secretary shall notify the appli5 cant and the district office of the Farm 

6 Service Agency, in writing, of the out7 standing information. 

8 ‘‘(C) REQUEST INFORMATION.— 

9 ‘‘(i) IN GENERAL.—On receipt of an 

10 application, the Secretary shall request from 

11 other parties such information as may be 

12 needed in connection with the application. 

13 ‘‘(ii) INFORMATION FROM AN AGENCY

14 OF THE DEPARTMENT.—Not later than 15 

15 calendar days after the date on which an 

16 agency of the Department receives a request 

17 for information made pursuant to subpara18 graph (A), the agency shall provide the Sec19 retary with the requested information. 

20 ‘‘(2) REPORT OF PENDING APPLICATIONS.— 

21 ‘‘(A) IN GENERAL.—A county office shall 

22 notify the district office of the Farm Service 

23 Agency of each application for an operating loan 

24 or loan guarantee that is pending more than 45 
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† HR 2642 EAS 

1 days after receipt, and the reasons for which the 

2 application is pending. 

3 ‘‘(B) ACTION ON PENDING APPLICATIONS.— 

4 A district office that receives a notice provided 

5 under subparagraph (A) with respect to an ap6 plication shall immediately take steps to ensure 

7 that final action is taken on the application not 

8 later than 15 days after the date of the receipt 

9 of the notice. 

10 ‘‘(C) PENDING APPLICATION REPORT.—The 

11 district office shall report to the State office of 

12 the Farm Service Agency on each application for 

13 an operating loan or loan guarantee that is 

14 pending more than 45 days after receipt, and the 

15 reasons for which the application is pending. 

16 ‘‘(D) REPORT TO CONGRESS.—Each month, 

17 the Secretary shall notify the Committee on Ag18 riculture of the House of Representatives and the 

19 Committee on Agriculture, Nutrition, and For20 estry of the Senate, on a State-by-State basis, as 

21 to each application for an operating loan or loan 

22 guarantee on which final action had not been 

23 taken within 60 calendar days after receipt by 

24 the Secretary, and the reasons for which final ac25 tion had not been taken. 
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† HR 2642 EAS 

1 ‘‘(3) DISAPPROVALS.— 

2 ‘‘(A) IN GENERAL.—If an application for a 

3 loan or loan guarantee under this subtitle is dis4 approved by the Secretary, the Secretary shall 

5 state the reasons for the disapproval in the notice 

6 required under paragraph (1). 

7 ‘‘(B) DISAPPROVAL DUE TO LACK OF

8 FUNDS.— 

9 ‘‘(i) IN GENERAL.—Notwithstanding 

10 paragraph (1), each application for a loan 

11 or loan guarantee under section 3601(e), or 

12 for a loan under section 3501(a) or 3502(a), 

13 that is to be disapproved by the Secretary 

14 solely because the Secretary lacks the funds 

15 necessary to make the loan or guarantee 

16 shall not be disapproved but shall be placed 

17 in pending status. 

18 ‘‘(ii) RECONSIDERATION.—The Sec19 retary shall retain each pending applica20 tion and reconsider the application begin21 ning on the date that sufficient funds be22 come available. 

23 ‘‘(iii) NOTIFICATION.—Not later than 

24 60 days after funds become available re25 garding each pending application, the Sec-
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† HR 2642 EAS 

1 retary shall notify the applicant of the ap2 proval or disapproval of funding for the ap3 plication. 

4 ‘‘(4) APPROVALS ON APPEAL.—If an application 

5 for a loan or loan guarantee under this subtitle is dis6 approved by the Secretary, but that action is subse7 quently reversed or revised as the result of an appeal 

8 within the Department or to the courts of the United 

9 States and the application is returned to the Sec10 retary for further consideration, the Secretary shall 

11 act on the application and provide the applicant with 

12 notice of the action not later than 15 days after the 

13 date of return of the application to the Secretary. 

14 ‘‘(5) PROVISION OF PROCEEDS.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), if an application for a guar17 anteed loan under this subtitle is approved by 

18 the Secretary, the Secretary shall provide the 

19 loan proceeds to the applicant not later than 15 

20 days (or such longer period as the applicant may 

21 approve) after the application for the loan is ap22 proved by the Secretary. 

23 ‘‘(B) LACK OF FUNDS.—If the Secretary is 

24 unable to provide the loan proceeds to the appli25 cant during the 15-day period described in sub-
482 

† HR 2642 EAS 

1 paragraph (A) because sufficient funds are not 

2 available to the Secretary for that purpose, the 

3 Secretary shall provide the loan proceeds to the 

4 applicant as soon as practicable (but in no event 

5 later than 15 days unless the applicant agrees to 

6 a longer period) after sufficient funds for that 

7 purpose become available to the Secretary. 

8 ‘‘SEC. 3407. GRADUATION OF BORROWERS. 

9 ‘‘(a) GRADUATION OF SEASONED DIRECT LOAN BOR10 ROWERS TO THE LOAN GUARANTEE PROGRAM.— 

11 ‘‘(1) REVIEW OF LOANS.— 

12 ‘‘(A) IN GENERAL.—The Secretary, or a 

13 contracting third party, shall annually review 

14 under section 3420 the loans of each seasoned di15 rect loan borrower. 

16 ‘‘(B) ASSISTANCE.—If, based on the review, 

17 it is determined that a borrower would be able 

18 to obtain a loan, guaranteed by the Secretary, 

19 from a commercial or cooperative lender at rea20 sonable rates and terms for loans for similar 

21 purposes and periods of time, the Secretary shall 

22 assist the borrower in applying for the commer23 cial or cooperative loan. 

24 ‘‘(2) PROSPECTUS.— 
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1 ‘‘(A) IN GENERAL.—In accordance with sec2 tion 3422, the Secretary shall prepare a pro3 spectus on each seasoned direct loan borrower de4 termined eligible to obtain a guaranteed loan. 

5 ‘‘(B) REQUIREMENTS.—The prospectus shall 

6 contain a description of the amounts of the loan 

7 guarantee and interest assistance that the Sec8 retary will provide to the seasoned direct loan 

9 borrower to enable the seasoned direct loan bor10 rower to carry out a financially viable farming 

11 plan if a guaranteed loan is made. 

12 ‘‘(3) VERIFICATION.— 

13 ‘‘(A) IN GENERAL.—The Secretary shall 

14 provide a prospectus of a seasoned direct loan 

15 borrower to each approved lender whose lending 

16 area includes the location of the seasoned direct 

17 loan borrower. 

18 ‘‘(B) NOTIFICATION.—The Secretary shall 

19 notify each borrower of a loan that a prospectus 

20 has been provided to a lender under subpara21 graph (A). 

22 ‘‘(C) CREDIT EXTENDED.—If the Secretary 

23 receives an offer from an approved lender to ex24 tend credit to the seasoned direct loan borrower 

25 under terms and conditions contained in the 
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† HR 2642 EAS 

1 prospectus, the seasoned direct loan borrower 

2 shall not be eligible for a loan from the Secretary 

3 under chapter 1 or 2, except as otherwise pro4 vided in this section. 

5 ‘‘(4) INSUFFICIENT ASSISTANCE OR OFFERS.—If 

6 the Secretary is unable to provide loan guarantees 

7 and, if necessary, interest assistance to the seasoned 

8 direct loan borrower under this section in amounts 

9 sufficient to enable the seasoned direct loan borrower 

10 to borrow from commercial sources the amount re11 quired to carry out a financially viable farming plan, 

12 or if the Secretary does not receive an offer from an 

13 approved lender to extend credit to a seasoned direct 

14 loan borrower under the terms and conditions con15 tained in the prospectus, the Secretary shall make a 

16 loan to the seasoned direct loan borrower under chap17 ter 1 or 2, whichever is applicable. 

18 ‘‘(5) INTEREST RATE REDUCTIONS.—To the ex19 tent necessary for the borrower to obtain a loan, guar20 anteed by the Secretary, from a commercial or cooper21 ative lender, the Secretary shall provide interest rate 

22 reductions as provided for under section 3413. 

23 ‘‘(b) TRANSITION TO PRIVATE COMMERCIAL OR OTHER

24 SOURCES OF CREDIT.— 
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† HR 2642 EAS 

1 ‘‘(1) IN GENERAL.—In making an operating or 

2 ownership loan, the Secretary shall establish a plan 

3 and promulgate regulations (including performance 

4 criteria) that promote the goal of transitioning bor5 rowers to private commercial credit and other sources 

6 of credit in the shortest period of time practicable. 

7 ‘‘(2) COORDINATION.—In carrying out this sec8 tion, the Secretary shall integrate and coordinate the 

9 transition policy described in subsection (a) with— 

10 ‘‘(A) the borrower training program estab11 lished by section 3419; 

12 ‘‘(B) the loan assessment process established 

13 by section 3420; 

14 ‘‘(C) the supervised credit requirement es15 tablished by section 3421; 

16 ‘‘(D) the market placement program estab17 lished by section 3422; and 

18 ‘‘(E) other appropriate programs and au19 thorities, as determined by the Secretary. 

20 ‘‘(c) GRADUATION OF BORROWERS WITH OPERATING

21 LOANS OR GUARANTEES TO PRIVATE COMMERCIAL CRED22 IT.—The Secretary shall establish a plan, in coordination 

23 with activities under sections 3419 through 3422, to encour24 age each borrower with an outstanding loan under this 

25 chapter, or with respect to whom there is an outstanding 
486 

† HR 2642 EAS 

1 guarantee under this chapter, to graduate to private com2 mercial or other sources of credit. 

3 ‘‘SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING. 

4 ‘‘In carrying out this subtitle, the Secretary may— 

5 ‘‘(1) provide voluntary debt adjustment assist6 ance between— 

7 ‘‘(A) farmers; and 

8 ‘‘(B) the creditors of the farmers; 

9 ‘‘(2) cooperate with State, territorial, and local 

10 agencies and committees engaged in the debt adjust11 ment; and 

12 ‘‘(3) give credit counseling. 

13 ‘‘SEC. 3409. SECURITY SERVICING. 

14 ‘‘(a) SALE OF PROPERTY.— 

15 ‘‘(1) IN GENERAL.—Subject to this subsection 

16 and subsection (e)(1), the Secretary shall offer to sell 

17 real property that is acquired by the Secretary under 

18 this subtitle using the following order and method of 

19 sale: 

20 ‘‘(A) ADVERTISEMENT.—Not later than 15 

21 days after acquiring real property, the Secretary 

22 shall publicly advertise the property for sale. 

23 ‘‘(B) QUALIFIED BEGINNING FARMER.— 

24 ‘‘(i) IN GENERAL.—Not later than 135 

25 days after acquiring real property, the Sec-
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† HR 2642 EAS 

1 retary shall offer to sell the property to a 

2 qualified beginning farmer or a socially dis3 advantaged farmer at current market value 

4 based on a current appraisal. 

5 ‘‘(ii) RANDOM SELECTION.—If more 

6 than 1 qualified beginning farmer or so7 cially disadvantaged farmer offers to pur8 chase the property, the Secretary shall select 

9 between the qualified applicants on a ran10 dom basis. 

11 ‘‘(iii) APPEAL OF RANDOM SELEC12 TION.—A random selection or denial by the 

13 Secretary of a qualified beginning farmer or 

14 a socially disadvantaged farmer for farm 

15 inventory property under this subparagraph 

16 shall be final and not administratively ap17 pealable. 

18 ‘‘(C) PUBLIC SALE.—If no acceptable offer 

19 is received from a qualified beginning farmer or 

20 a socially disadvantaged farmer under subpara21 graph (B) not later than 135 days after acquir22 ing the real property, the Secretary shall, not 

23 later than 30 days after the 135-day period, sell 

24 the property after public notice at a public sale, 
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† HR 2642 EAS 

1 and, if no acceptable bid is received, by nego2 tiated sale, at the best price obtainable. 

3 ‘‘(2) INTEREST.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graph (B), any conveyance of real property 

6 under this subsection shall include all of the in7 terest of the United States in the property, in8 cluding mineral rights. 

9 ‘‘(B) CONSERVATION.—The Secretary may 

10 for conservation purposes grant or sell an ease11 ment, restriction, development right, or similar 

12 legal right to real property to a State, a political 

13 subdivision of a State, or a private nonprofit or14 ganization separately from the underlying fee or 

15 other rights to the property owned by the United 

16 States. 

17 ‘‘(3) OTHER LAW.—Subtitle I of title 40, United 

18 States Code, and title III of the Federal Property and 

19 Administrative Services Act of 1949 (41 U.S.C. 251 

20 et seq.) shall not apply to any exercise of authority 

21 under this subtitle. 

22 ‘‘(4) LEASE OF PROPERTY.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), the Secretary may not lease any real 

25 property acquired under this subtitle. 
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† HR 2642 EAS 

1 ‘‘(B) EXCEPTION.— 

2 ‘‘(i) QUALIFIED BEGINNING FARMER

3 OR SOCIALLY DISADVANTAGED FARMER.— 

4 The Secretary may lease or contract to sell 

5 to a qualified beginning farmer or a so6 cially disadvantaged farmer a farm ac7 quired by the Secretary under this subtitle 

8 if the qualified beginning farmer qualifies 

9 for a credit sale or direct farm ownership 

10 loan under chapter 1 but credit sale author11 ity for loans or direct farm ownership loan 

12 funds, respectively, are not available. 

13 ‘‘(ii) TERM.—The term of a lease or 

14 contract to sell to a qualified beginning 

15 farmer or a socially disadvantaged farmer 

16 under clause (i) shall be until the earlier 

17 of— 

18 ‘‘(I) the date that is 18 months 

19 after the date of the lease or sale; or 

20 ‘‘(II) the date that direct farm 

21 ownership loan funds or credit sale au22 thority for loans becomes available to 

23 the qualified beginning farmer or so24 cially disadvantaged farmer. 
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† HR 2642 EAS 

1 ‘‘(iii) INCOME-PRODUCING CAPA2 BILITY.—In determining the rental rate on 

3 real property leased under this subpara4 graph, the Secretary shall consider the in5 come-producing capability of the property 

6 during the term that the property is leased. 

7 ‘‘(5) EXPEDITED DETERMINATION.— 

8 ‘‘(A) IN GENERAL.—On the request of an 

9 applicant, not later than 30 days after denial of 

10 the application, the appropriate State director 

11 shall provide an expedited review and deter12 mination of whether the applicant is a qualified 

13 beginning farmer or a socially disadvantaged 

14 farmer for the purpose of acquiring farm inven15 tory property. 

16 ‘‘(B) APPEAL.—The determination of a 

17 State Director under subparagraph (A) shall be 

18 final and not administratively appealable. 

19 ‘‘(C) EFFECTS OF DETERMINATIONS.— 

20 ‘‘(i) IN GENERAL.—The Secretary shall 

21 maintain statistical data on the number 

22 and results of determinations made under 

23 subparagraph (A) and the effect of the deter24 minations on— 
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† HR 2642 EAS 

1 ‘‘(I) selling farm inventory prop2 erty to qualified beginning farmers or 

3 socially disadvantaged farmers; and 

4 ‘‘(II) disposing of real property in 

5 inventory. 

6 ‘‘(ii) NOTIFICATION.—The Secretary 

7 shall notify the Committee on Agriculture of 

8 the House of Representatives and the Com9 mittee on Agriculture, Nutrition, and For10 estry of the Senate if the Secretary deter11 mines that the review process under sub12 paragraph (A) is adversely affecting the 

13 selling of farm inventory property to quali14 fied beginning farmers or socially disadvan15 taged farmers or the disposing of real prop16 erty in inventory. 

17 ‘‘(b) ROAD AND UTILITY EASEMENTS AND CONDEMNA18 TIONS.—In the case of any real property administered 

19 under this subtitle, the Secretary may grant or sell ease20 ments or rights-of-way for roads, utilities, and other appur21 tenances that are not inconsistent with the public interest. 

22 ‘‘(c) SALE OR LEASE OF FARMLAND.— 

23 ‘‘(1) DISPOSITION OF REAL PROPERTY ON INDIAN

24 RESERVATIONS.— 
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† HR 2642 EAS 

1 ‘‘(A) DEFINITION OF INDIAN RESERVA2 TION.—In this paragraph, the term ‘Indian res3 ervation’ means— 

4 ‘‘(i) all land located within the limits 

5 of any Indian reservation under the juris6 diction of the United States, notwith7 standing the issuance of any patent, and, 

8 including any right-of-way running through 

9 the reservation; 

10 ‘‘(ii) trust or restricted land located 

11 within the boundaries of a former reserva12 tion of an Indian tribe in the State of Okla13 homa; or 

14 ‘‘(iii) all Indian allotments the Indian 

15 titles to which have not been extinguished if 

16 the allotments are subject to the jurisdiction 

17 of an Indian tribe. 

18 ‘‘(B) DISPOSITION.—Except as provided in 

19 paragraph (3), the Secretary shall dispose of or 

20 administer the property as provided in this 

21 paragraph when— 

22 ‘‘(i) the Secretary acquires property 

23 under this subtitle that is located within an 

24 Indian reservation; and 
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† HR 2642 EAS 

1 ‘‘(ii) the borrower-owner is the Indian 

2 tribe that has jurisdiction over the reserva3 tion in which the real property is located or 

4 the borrower-owner is a member of the In5 dian tribe; 

6 ‘‘(C) PRIORITY.—Not later than 90 days 

7 after acquiring the property, the Secretary shall 

8 afford an opportunity to purchase or lease the 

9 real property in accordance with the order of 

10 priority established under subparagraph (D) to 

11 the Indian tribe having jurisdiction over the In12 dian reservation within which the real property 

13 is located or, if no order of priority is established 

14 by the Indian tribe under subparagraph (D), in 

15 the following order: 

16 ‘‘(i) An Indian member of the Indian 

17 tribe that has jurisdiction over the reserva18 tion within which the real property is lo19 cated. 

20 ‘‘(ii) An Indian corporate entity. 

21 ‘‘(iii) The Indian tribe. 

22 ‘‘(D) REVISION OF PRIORITY AND RESTRIC23 TION OF ELIGIBILITY.—The governing body of 

24 any Indian tribe having jurisdiction over an In25 dian reservation may revise the order of priority 
494 

† HR 2642 EAS 

1 provided in subparagraph (C) under which land 

2 located within the reservation shall be offered for 

3 purchase or lease by the Secretary under sub4 paragraph (C) and may restrict the eligibility 

5 for the purchase or lease to— 

6 ‘‘(i) persons who are members of the 

7 Indian tribe; 

8 ‘‘(ii) Indian corporate entities that are 

9 authorized by the Indian tribe to lease or 

10 purchase land within the boundaries of the 

11 reservation; or 

12 ‘‘(iii) the Indian tribe itself. 

13 ‘‘(E) TRANSFER OF PROPERTY TO SEC14 RETARY OF THE INTERIOR.— 

15 ‘‘(i) IN GENERAL.—If real property de16 scribed in subparagraph (B) is not pur17 chased or leased under subparagraph (C) 

18 and the Indian tribe having jurisdiction 

19 over the reservation within which the real 

20 property is located is unable to purchase or 

21 lease the real property, the Secretary shall 

22 transfer the real property to the Secretary 

23 of the Interior who shall administer the real 

24 property as if the real property were held in 
495 

† HR 2642 EAS 

1 trust by the United States for the benefit of 

2 the Indian tribe. 

3 ‘‘(ii) USE OF RENTAL INCOME.—From 

4 the rental income derived from the lease of 

5 the transferred real property, and all other 

6 income generated from the transferred real 

7 property, the Secretary of the Interior shall 

8 pay the State, county, municipal, or other 

9 local taxes to which the transferred real 

10 property was subject at the time of acquisi11 tion by the Secretary, until the earlier of— 

12 ‘‘(I) the expiration of the 4-year 

13 period beginning on the date on which 

14 the real property is so transferred; or 

15 ‘‘(II) such time as the land is 

16 transferred into trust pursuant to sub17 paragraph (H). 

18 ‘‘(F) RESPONSIBILITIES OF SECRE19 TARIES.—If any real property is transferred to 

20 the Secretary of the Interior under subparagraph 

21 (E)— 

22 ‘‘(i) the Secretary of Agriculture shall 

23 have no further responsibility under this 

24 subtitle for— 
496 

† HR 2642 EAS 

1 ‘‘(I) collection of any amounts 

2 with regard to the farm program loan 

3 that had been secured by the real prop4 erty; 

5 ‘‘(II) any lien arising out of the 

6 loan transaction; or 

7 ‘‘(III) repayment of any amount 

8 with regard to the loan transaction or 

9 lien to the Treasury of the United 

10 States; and 

11 ‘‘(ii) the Secretary of the Interior shall 

12 succeed to all right, title, and interest of the 

13 Secretary of Agriculture in the real estate 

14 arising from the farm program loan trans15 action, including the obligation to remit to 

16 the Treasury of the United States, in repay17 ment of the original loan, the amounts pro18 vided in subparagraph (G). 

19 ‘‘(G) USE OF INCOME.—After the payment 

20 of any taxes that are required to be paid under 

21 subparagraph (E)(ii), all remaining rental in22 come derived from the lease of the real property 

23 transferred to the Secretary of the Interior under 

24 subparagraph (E)(i), and all other income gen25 erated from the real property transferred to the 
497 

† HR 2642 EAS 

1 Secretary of the Interior under that subpara2 graph, shall be deposited as miscellaneous re3 ceipts in the Treasury of the United States until 

4 the amount deposited is equal to the lesser of— 

5 ‘‘(i) the amount of the outstanding lien 

6 of the United States against the real prop7 erty, as of the date the real property was 

8 acquired by the Secretary; 

9 ‘‘(ii) the fair market value of the real 

10 property, as of the date of the transfer to the 

11 Secretary of the Interior; or 

12 ‘‘(iii) the capitalized value of the real 

13 property, as of the date of the transfer to the 

14 Secretary of the Interior. 

15 ‘‘(H) HOLDING OF TITLE IN TRUST.—If the 

16 total amount that is required to be deposited 

17 under subparagraph (G) with respect to any real 

18 property has been deposited into the Treasury of 

19 the United States, title to the real property shall 

20 be held in trust by the United States for the ben21 efit of the Indian tribe having jurisdiction over 

22 the Indian reservation within which the real 

23 property is located. 

24 ‘‘(I) PAYMENT OF REMAINING LIEN OR FAIR

25 MARKET VALUE OF PROPERTY.— 
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1 ‘‘(i) IN GENERAL.—Notwithstanding 

2 any other subparagraph of this paragraph, 

3 the Indian tribe having jurisdiction over the 

4 Indian reservation within which the real 

5 property described in subparagraph (B) is 

6 located may, at any time after the real 

7 property has been transferred to the Sec8 retary of the Interior under subparagraph 

9 (E), offer to pay the remaining amount on 

10 the lien or the fair market value of the real 

11 property, whichever is less. 

12 ‘‘(ii) EFFECT OF PAYMENT.—On pay13 ment of the amount, title to the real prop14 erty shall be held by the United States in 

15 trust for the tribe and the trust or restricted 

16 land that has been acquired by the Sec17 retary under foreclosure or voluntary trans18 fer under a loan made or insured under this 

19 subtitle and transferred to an Indian per20 son, entity, or tribe under this paragraph 

21 shall be considered to have never lost trust 

22 or restricted status. 

23 ‘‘(J) APPLICABILITY.— 

24 ‘‘(i) IN GENERAL.—This paragraph 

25 shall apply to all land in the land inven-
499 

† HR 2642 EAS 

1 tory established under this subtitle (as of 

2 November 28, 1990) that was (immediately 

3 prior to the date) owned by an Indian bor4 rower-owner described in subparagraph (B) 

5 and that is situated within an Indian res6 ervation, regardless of the date of foreclosure 

7 or acquisition by the Secretary. 

8 ‘‘(ii) OPPORTUNITY TO PURCHASE OR

9 LEASE.—The Secretary shall afford an op10 portunity to an Indian person, entity, or 

11 tribe to purchase or lease the real property 

12 as provided in subparagraph (C). 

13 ‘‘(iii) TRANSFER.—If the right is not 

14 exercised or no expression of intent to exer15 cise the right is received within 180 days 

16 after November 28, 1990, the Secretary shall 

17 transfer the real property to the Secretary 

18 of the Interior as provided in subparagraph 

19 (E). 

20 ‘‘(2) ADDITIONAL RIGHTS.—The rights provided 

21 in this subsection shall be in addition to any right of 

22 first refusal under the law of the State in which the 

23 property is located. 

24 ‘‘(3) DISPOSITION OF REAL PROPERTY ON INDIAN

25 RESERVATIONS AFTER PROCEDURES EXHAUSTED.— 
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† HR 2642 EAS 

1 ‘‘(A) IN GENERAL.—The Secretary shall dis2 pose of or administer real property described in 

3 paragraph (1)(B) only as provided in paragraph 

4 (1), as modified by this paragraph, if— 

5 ‘‘(i) the real property described in 

6 paragraph (1)(B) is located within an In7 dian reservation; 

8 ‘‘(ii) the borrower-owner is an Indian 

9 tribe that has jurisdiction over the reserva10 tion in which the real property is located or 

11 the borrower-owner is a member of an In12 dian tribe; 

13 ‘‘(iii) the borrower-owner has obtained 

14 a loan made or guaranteed under this sub15 title; and 

16 ‘‘(iv) the borrower-owner and the Sec17 retary have exhausted all of the procedures 

18 provided for in this subtitle to permit a bor19 rower-owner to retain title to the real prop20 erty, so that it is necessary for the borrower21 owner to relinquish title. 

22 ‘‘(B) NOTICE OF RIGHT TO CONVEY PROP23 ERTY.—The Secretary shall provide the bor24 rower-owner of real property that is described in 

25 subparagraph (A) with written notice of— 
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1 ‘‘(i) the right of the borrower-owner to 

2 voluntarily convey the real property to the 

3 Secretary; and 

4 ‘‘(ii) the fact that real property so con5 veyed will be placed in the inventory of the 

6 Secretary. 

7 ‘‘(C) NOTICE OF RIGHTS AND PROTEC8 TIONS.—The Secretary shall provide the bor9 rower-owner of the real property with written 

10 notice of the rights and protections provided 

11 under this subtitle to the borrower-owner, and 

12 the Indian tribe that has jurisdiction over the 

13 reservation in which the real property is located, 

14 from foreclosure or liquidation of the real prop15 erty, including written notice— 

16 ‘‘(i) of paragraph (1), this paragraph, 

17 and subsection (e)(3); 

18 ‘‘(ii) if the borrower-owner does not 

19 voluntarily convey the real property to the 

20 Secretary, that— 

21 ‘‘(I) the Secretary may foreclose 

22 on the property; 

23 ‘‘(II) in the event of foreclosure, 

24 the property will be offered for sale; 
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1 ‘‘(III) the Secretary shall offer a 

2 bid for the property that is equal to the 

3 fair market value of the property or 

4 the outstanding principal and interest 

5 of the loan, whichever is higher; 

6 ‘‘(IV) the property may be pur7 chased by another party; and 

8 ‘‘(V) if the property is purchased 

9 by another party, the property will not 

10 be placed in the inventory of the Sec11 retary and the borrower-owner will for12 feit the rights and protections provided 

13 under this subtitle; and 

14 ‘‘(iii) of the opportunity of the bor15 rower-owner to consult with the Indian 

16 tribe that has jurisdiction over the reserva17 tion in which the real property is located or 

18 counsel to determine if State or tribal law 

19 provides rights and protections that are 

20 more beneficial than the rights and protec21 tions provided the borrower-owner under 

22 this subtitle. 

23 ‘‘(D) ACCEPTANCE OF VOLUNTARY CONVEY24 ANCE.— 
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1 ‘‘(i) IN GENERAL.—Except as provided 

2 in clause (ii), the Secretary shall accept the 

3 voluntary conveyance of real property de4 scribed in subparagraph (A). 

5 ‘‘(ii) HAZARDOUS SUBSTANCES.—If a 

6 hazardous substance (as defined in section 

7 101(14) of the Comprehensive Environ8 mental Response, Compensation, and Li9 ability Act of 1980 (42 U.S.C. 9601(14))) is 

10 located on the property and the Secretary 

11 takes remedial action to protect human 

12 health or the environment if the property is 

13 taken into inventory, the Secretary shall ac14 cept the voluntary conveyance of the prop15 erty only if the Secretary determines that 

16 the conveyance is in the best interests of the 

17 Federal Government. 

18 ‘‘(E) FORECLOSURE PROCEDURES.— 

19 ‘‘(i) NOTICE TO BORROWER.—If an In20 dian borrower-owner does not voluntarily 

21 convey to the Secretary real property de22 scribed in subparagraph (A), not less than 

23 30 days before a foreclosure sale of the prop24 erty, the Secretary shall provide the Indian 

25 borrower-owner with the option of— 
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1 ‘‘(I) requiring the Secretary to as2 sign the loan and security instruments 

3 to the Secretary of the Interior, if the 

4 Secretary of the Interior agrees to an 

5 assignment releasing the Secretary of 

6 Agriculture from all further responsi7 bility for collection of any amounts 

8 with regard to the loan secured by the 

9 real property; or 

10 ‘‘(II) requiring the Secretary to 

11 assign the loan and security instru12 ments to the tribe having jurisdiction 

13 over the reservation in which the real 

14 property is located, if the tribe agrees 

15 to assume the loan under the terms 

16 specified in clause (iii). 

17 ‘‘(ii) NOTICE TO TRIBE.—If an Indian 

18 borrower-owner does not voluntarily convey 

19 to the Secretary real property described in 

20 subparagraph (A), not less than 30 days be21 fore a foreclosure sale of the property, the 

22 Secretary shall provide written notice to the 

23 Indian tribe that has jurisdiction over the 

24 reservation in which the real property is lo25 cated of— 
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1 ‘‘(I) the sale; 

2 ‘‘(II) the fair market value of the 

3 property; and 

4 ‘‘(III) the requirements of this 

5 paragraph. 

6 ‘‘(iii) ASSUMED LOANS.—If an Indian 

7 tribe assumes a loan under clause (i)— 

8 ‘‘(I) the Secretary shall not fore9 close the loan because of any default 

10 that occurred prior to the date of the 

11 assumption; 

12 ‘‘(II) the loan shall be for the less13 er of the outstanding principal and in14 terest of the loan or the fair market 

15 value of the property; and 

16 ‘‘(III) the loan shall be treated as 

17 though the loan was made under Pub18 lic Law 91–229 (25 U.S.C. 488 et 

19 seq.). 

20 ‘‘(F) AMOUNT OF BID BY SECRETARY.— 

21 ‘‘(i) IN GENERAL.—Except as provided 

22 in clause (ii), at a foreclosure sale of real 

23 property described in subparagraph (A), the 

24 Secretary shall offer a bid for the property 

25 that is equal to the higher of— 
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1 ‘‘(I) the fair market value of the 

2 property; or 

3 ‘‘(II) the outstanding principal 

4 and interest on the loan. 

5 ‘‘(ii) HAZARDOUS SUBSTANCES.—If a 

6 hazardous substance (as defined in section 

7 101(14) of the Comprehensive Environ8 mental Response, Compensation, and Li9 ability Act of 1980 (42 U.S.C. 9601(14))) is 

10 located on the property and the Secretary 

11 takes remedial action to protect human 

12 health or the environment if the property is 

13 taken into inventory, clause (i) shall apply 

14 only if the Secretary determines that bid15 ding is in the best interests of the Federal 

16 Government. 

17 ‘‘(4) DETRIMENTAL EFFECT ON VALUE OF AREA

18 FARMLAND.—The Secretary shall not offer for sale or 

19 sell any farmland referred to in paragraphs (1) 

20 through (3) if placing the farmland on the market 

21 will have a detrimental effect on the value of farm22 land in the area. 

23 ‘‘(5) INSTALLMENT SALES AND MULTIPLE OPERA24 TORS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary may sell 

2 farmland administered under this subtitle 

3 through an installment sale or similar device 

4 that contains such terms as the Secretary con5 siders necessary to protect the investment of the 

6 Federal Government in the land. 

7 ‘‘(B) SALE OF CONTRACT.—The Secretary 

8 may subsequently sell any contract entered into 

9 to carry out subparagraph (A). 

10 ‘‘(6) HIGHLY ERODIBLE LAND.—In the case of 

11 farmland administered under this subtitle that is 

12 highly erodible land (as defined in section 1201 of the 

13 Food Security Act of 1985 (16 U.S.C. 3801)), the Sec14 retary may require the use of specified conservation 

15 practices on the land as a condition of the sale or 

16 lease of the land. 

17 ‘‘(7) NO EFFECT ON ACREAGE ALLOTMENTS, 

18 MARKETING QUOTAS, OR ACREAGE BASES.—Notwith19 standing any other law, compliance by the Secretary 

20 with this subsection shall not cause any acreage allot21 ment, marketing quota, or acreage base assigned to 

22 the property to lapse, terminate, be reduced, or other23 wise be adversely affected. 

24 ‘‘(8) NO PREEMPTION OF STATE LAW.—If a con25 flict exists between any provision of this subsection 
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1 and any provision of the law of any State providing 

2 a right of first refusal to the owner of farmland or the 

3 operator of a farm before the sale or lease of land to 

4 any other person, the provision of State law shall pre5 vail. 

6 ‘‘(d) RELEASE OF NORMAL INCOME SECURITY.— 

7 ‘‘(1) DEFINITION OF NORMAL INCOME SECU8 RITY.—In this subsection: 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the term ‘normal income se11 curity’ means all security not considered basic 

12 security, including crops, livestock, poultry prod13 ucts, Farm Service Agency payments and Com14 modity Credit Corporation payments, and other 

15 property covered by Farm Service Agency liens 

16 that is sold in conjunction with the operation of 

17 a farm or other business. 

18 ‘‘(B) EXCEPTIONS.—The term ‘normal in19 come security’ does not include any equipment 

20 (including fixtures in States that have adopted 

21 the Uniform Commercial Code), or foundation 

22 herd or flock, that is— 

23 ‘‘(i) the basis of the farming or other 

24 operation; and 
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1 ‘‘(ii) the basic security for a farmer 

2 program loan. 

3 ‘‘(2) GENERAL RELEASE.—The Secretary shall 

4 release from the normal income security provided for 

5 a loan an amount sufficient to pay for the essential 

6 household and farm operating expenses of the bor7 rower, until such time as the Secretary accelerates the 

8 loan. 

9 ‘‘(3) NOTICE OF REPORTING REQUIREMENTS AND

10 RIGHTS.—If a borrower is required to plan for or to 

11 report as to how proceeds from the sale of collateral 

12 property will be used, the Secretary shall notify the 

13 borrower of— 

14 ‘‘(A) the requirement; and 

15 ‘‘(B) the right to the release of funds under 

16 this subsection and the means by which a request 

17 for the funds may be made. 

18 ‘‘(e) EASEMENTS ON INVENTORIED PROPERTY.— 

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2), in 

20 the disposal of real property under this section, the 

21 Secretary shall establish perpetual wetland conserva22 tion easements to protect and restore wetland or con23 verted wetland that exists on inventoried property. 
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1 ‘‘(2) LIMITATION.—The Secretary shall not es2 tablish a wetland conservation easement on an inven3 toried property that— 

4 ‘‘(A) was cropland on the date the property 

5 entered the inventory of the Secretary; or 

6 ‘‘(B) was used for farming at any time dur7 ing the period— 

8 ‘‘(i) beginning on the date that is 5 

9 years before the property entered the inven10 tory of the Secretary; and 

11 ‘‘(ii) ending on the date on which the 

12 property entered the inventory of the Sec13 retary. 

14 ‘‘(3) NOTIFICATION.—The Secretary shall pro15 vide prior written notification to a borrower consid16 ering homestead retention that a wetland conservation 

17 easement may be placed on land for which the bor18 rower is negotiating a lease option. 

19 ‘‘(4) APPRAISED VALUE.—The appraised value of 

20 the farm shall reflect the value of the land due to the 

21 placement of wetland conservation easements. 

22 ‘‘SEC. 3410. CONTRACTS ON LOAN SECURITY PROPERTIES. 

23 ‘‘(a) CONTRACTS ON LOAN SECURITY PROPERTIES.— 

24 Subject to subsection (b), the Secretary may enter into a 
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1 contract related to real property for conservation, recre2 ation, or wildlife purposes. 

3 ‘‘(b) LIMITATIONS.—The Secretary may enter into a 

4 contract under subsection (a) if— 

5 ‘‘(1) the property is wetland, upland, or highly 

6 erodible land; 

7 ‘‘(2) the property is determined by the Secretary 

8 to be suitable for the purpose involved; and 

9 ‘‘(3)(A) the property secures a loan made under 

10 a law administered and held by the Secretary; and 

11 ‘‘(B) the contract would better enable a qualified 

12 borrower to repay the loan in a timely manner, as de13 termined by the Secretary. 

14 ‘‘(c) TERMS AND CONDITIONS.—The terms and condi15 tions specified in a contract under subsection (a) shall— 

16 ‘‘(1) specify the purposes for which the real prop17 erty may be used; 

18 ‘‘(2) identify any conservation measure to be 

19 taken, and any recreational and wildlife use to be al20 lowed, with respect to the real property; and 

21 ‘‘(3) require the owner to permit the Secretary, 

22 and any person or governmental entity designated by 

23 the Secretary, to have access to the real property for 

24 the purpose of monitoring compliance with the con25 tract. 
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1 ‘‘(d) REDUCTION OR FORGIVENESS OF DEBT.— 

2 ‘‘(1) IN GENERAL.—Subject to this section, the 

3 Secretary may reduce or forgive the outstanding debt 

4 of a borrower— 

5 ‘‘(A) in the case of a borrower to whom the 

6 Secretary has made an outstanding loan under 

7 a law administered by the Secretary, by can8 celing that part of the aggregate amount of the 

9 outstanding loan that bears the same ratio to the 

10 aggregate amount as— 

11 ‘‘(i) the number of acres of the real 

12 property of the borrower that are subject to 

13 the contract; bears to 

14 ‘‘(ii) the aggregate number of acres se15 curing the loan; or 

16 ‘‘(B) in any other case, by treating as pre17 paid that part of the principal amount of a new 

18 loan to the borrower issued and held by the Sec19 retary under a law administered by the Sec20 retary that bears the same ratio to the principal 

21 amount as— 

22 ‘‘(i) the number of acres of the real 

23 property of the borrower that are subject to 

24 the contract; bears to 
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1 ‘‘(ii) the aggregate number of acres se2 curing the new loan. 

3 ‘‘(2) MAXIMUM CANCELED AMOUNT.—The 

4 amount canceled or treated as prepaid under para5 graph (1) shall not exceed— 

6 ‘‘(A) in the case of a delinquent loan, the 

7 greater of— 

8 ‘‘(i) the value of the land on which the 

9 contract is entered into; or 

10 ‘‘(ii) the difference between— 

11 ‘‘(I) the amount of the out12 standing loan secured by the land; and 

13 ‘‘(II) the value of the land; or 

14 ‘‘(B) in the case of a nondelinquent loan, 33 

15 percent of the amount of the loan secured by the 

16 land. 

17 ‘‘(e) CONSULTATION WITH FISH AND WILDLIFE SERV18 ICE.—If the Secretary uses the authority provided by this 

19 section, the Secretary shall consult with the Director of the 

20 Fish and Wildlife Service for the purposes of— 

21 ‘‘(1) selecting real property in which the Sec22 retary may enter into a contract under this section; 

23 ‘‘(2) formulating the terms and conditions of the 

24 contract; and 

25 ‘‘(3) enforcing the contract. 
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1 ‘‘(f) ENFORCEMENT.—The Secretary, and any person 

2 or governmental entity (including an agency of the Federal 

3 Government) designated by the Secretary, may enforce a 

4 contract entered into by the Secretary under this section. 

5 ‘‘SEC. 3411. DEBT RESTRUCTURING AND LOAN SERVICING. 

6 ‘‘(a) IN GENERAL.—The Secretary shall modify a de7 linquent farmer program loan made under this subtitle, or 

8 purchased from the lender or the Federal Deposit Insurance 

9 Corporation under section 3902, to the maximum extent 

10 practicable— 

11 ‘‘(1) to avoid a loss to the Secretary on the loan, 

12 with priority consideration being placed on writing13 down the loan principal and interest (subject to sub14 sections (d) and (e)), and debt set-aside (subject to 

15 subsection (e)), to facilitate keeping the borrower on 

16 the farm, or otherwise through the use of primary 

17 loan service programs under this section; and 

18 ‘‘(2) to ensure that a borrower is able to continue 

19 farming operations. 

20 ‘‘(b) ELIGIBILITY.—To be eligible to obtain assistance 

21 under subsection (a)— 

22 ‘‘(1) the delinquency shall be due to a cir23 cumstance beyond the control of the borrower, as de24 fined in regulations issued by the Secretary, except 

25 that the regulations shall require that, if the value of 
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1 the assets calculated under subsection (c)(2)(A)(ii) 

2 that may be realized through liquidation or other 

3 methods would produce enough income to make the 

4 delinquent loan current, the borrower shall not be eli5 gible for assistance under subsection (a); 

6 ‘‘(2) the borrower shall have acted in good faith 

7 with the Secretary in connection with the loan as de8 fined in regulations issued by the Secretary; 

9 ‘‘(3) the borrower shall present a preliminary 

10 plan to the Secretary that contains reasonable as11 sumptions that demonstrate that the borrower will be 

12 able— 

13 ‘‘(A) to meet the necessary family living 

14 and farm operating expenses of the borrower; 

15 and 

16 ‘‘(B) to service all debts of the borrower, in17 cluding restructured loans; and 

18 ‘‘(4) the loan, if restructured, shall result in a 

19 net recovery to the Federal Government, during the 

20 term of the loan as restructured, that would be more 

21 than or equal to the net recovery to the Federal Gov22 ernment from an involuntary liquidation or fore23 closure on the property securing the loan. 

24 ‘‘(c) RESTRUCTURING DETERMINATIONS.— 
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1 ‘‘(1) DETERMINATION OF NET RECOVERY.—In 

2 determining the net recovery from the involuntary 

3 liquidation of a loan under this section, the Secretary 

4 shall calculate— 

5 ‘‘(A) the recovery value of the collateral se6 curing the loan, in accordance with paragraph 

7 (2); and 

8 ‘‘(B) the value of the restructured loan, in 

9 accordance with paragraph (3). 

10 ‘‘(2) RECOVERY VALUE.—For the purpose of 

11 paragraph (1), the recovery value of the collateral se12 curing the loan shall be based on the difference be13 tween— 

14 ‘‘(A)(i) the amount of the current appraised 

15 value of the interests of the borrower in the prop16 erty securing the loan; and 

17 ‘‘(ii) the value of the interests of the bor18 rower in all other assets that are— 

19 ‘‘(I) not essential for necessary family 

20 living expenses; 

21 ‘‘(II) not essential to the operation of 

22 the farm; and 

23 ‘‘(III) not exempt from judgment credi24 tors or in a bankruptcy action under Fed25 eral or State law; 
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1 ‘‘(B) the estimated administrative, attorney, 

2 and other expenses associated with the liquida3 tion and disposition of the loan and collateral, 

4 including— 

5 ‘‘(i) the payment of prior liens; 

6 ‘‘(ii) taxes and assessments, deprecia7 tion, management costs, the yearly percent8 age decrease or increase in the value of the 

9 property, and lost interest income, each cal10 culated for the average holding period for 

11 the type of property involved; 

12 ‘‘(iii) resale expenses, such as repairs, 

13 commissions, and advertising; and 

14 ‘‘(iv) other administrative and attor15 ney costs; and 

16 ‘‘(C) the value, as determined by the Sec17 retary, of any property not included in subpara18 graph (A)(i) if the property is specified in any 

19 security agreement with respect to the loan and 

20 the Secretary determines that the value of the 

21 property should be included for purposes of this 

22 section. 

23 ‘‘(3) VALUE OF THE RESTRUCTURED LOAN.— 

24 ‘‘(A) IN GENERAL.—For the purpose of 

25 paragraph (1), the value of the restructured loan 
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1 shall be based on the present value of payments 

2 that the borrower would make to the Federal 

3 Government if the terms of the loan were modi4 fied under any combination of primary loan 

5 service programs to ensure that the borrower is 

6 able to meet the obligations and continue farm7 ing operations. 

8 ‘‘(B) PRESENT VALUE.—For the purpose of 

9 calculating the present value referred to in sub10 paragraph (A), the Secretary shall use a dis11 count rate of not more than the current rate at 

12 the time of the calculation of 90-day Treasury 

13 bills. 

14 ‘‘(C) CASH FLOW MARGIN.—For the purpose 

15 of assessing under subparagraph (A) the ability 

16 of a borrower to meet debt obligations and con17 tinue farming operations, the Secretary shall as18 sume that the borrower needs up to 110 percent 

19 of the amount indicated for payment of farm op20 erating expenses, debt service obligations, and 

21 family living expenses. 

22 ‘‘(4) NOTIFICATION.—Not later than 90 days 

23 after receipt of a written request for restructuring 

24 from the borrower, the Secretary shall— 
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1 ‘‘(A) make the calculations specified in 

2 paragraphs (2) and (3); 

3 ‘‘(B) notify the borrower in writing of the 

4 results of the calculations; and 

5 ‘‘(C) provide documentation for the calcula6 tions. 

7 ‘‘(5) RESTRUCTURING OF LOANS.— 

8 ‘‘(A) IN GENERAL.—If the value of a re9 structured loan is greater than or equal to the re10 covery value of the collateral securing the loan, 

11 not later than 45 days after notifying the bor12 rower under paragraph (4), the Secretary shall 

13 offer to restructure the loan obligations of the 

14 borrower under this subtitle through primary 

15 loan service programs that would enable the bor16 rower to meet the obligations (as modified) under 

17 the loan and to continue the farming operations 

18 of the borrower. 

19 ‘‘(B) RESTRUCTURING.—If the borrower ac20 cepts an offer under subparagraph (A), not later 

21 than 45 days after receipt of notice of accept22 ance, the Secretary shall restructure the loan ac23 cordingly. 
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1 ‘‘(6) TERMINATION OF LOAN OBLIGATIONS.—The 

2 obligations of a borrower to the Secretary under a 

3 loan shall terminate if— 

4 ‘‘(A) the borrower satisfies the requirements 

5 of paragraphs (1) and (2) of subsection (b); 

6 ‘‘(B) the value of the restructured loan is 

7 less than the recovery value; and 

8 ‘‘(C) not later than 90 days after receipt of 

9 the notification described in paragraph (4)(B), 

10 the borrower pays (or obtains third-party fi11 nancing to pay) the Secretary an amount equal 

12 to the current market value. 

13 ‘‘(7) NEGOTIATION OF APPRAISAL.— 

14 ‘‘(A) IN GENERAL.—In making a deter15 mination concerning restructuring under this 

16 subsection, the Secretary, at the request of the 

17 borrower, shall enter into negotiations with the 

18 borrower concerning appraisals required under 

19 this subsection. 

20 ‘‘(B) INDEPENDENT APPRAISAL.— 

21 ‘‘(i) IN GENERAL.—If the borrower, 

22 based on a separate current appraisal, ob23 jects to the decision of the Secretary regard24 ing an appraisal, the borrower and the Sec25 retary shall mutually agree, to the extent 
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† HR 2642 EAS 

1 practicable, on an independent appraiser 

2 who shall conduct another appraisal of the 

3 property of the borrower. 

4 ‘‘(ii) VALUE OF FINAL APPRAISAL.— 

5 The average of the 2 appraisals under 

6 clause (i) that are closest in value shall be7 come the final appraisal under this para8 graph. 

9 ‘‘(iii) COST OF APPRAISAL.—The borrower and the Secretary shall each pay 1 10 ⁄2

11 of the cost of any independent appraisal. 

12 ‘‘(d) PRINCIPAL AND INTEREST WRITE-DOWN.— 

13 ‘‘(1) IN GENERAL.— 

14 ‘‘(A) PRIORITY CONSIDERATION.—In select15 ing the restructuring alternatives to be used in 

16 the case of a borrower who has requested restruc17 turing under this section, the Secretary shall 

18 give priority consideration to the use of a prin19 cipal and interest write-down if other creditors 

20 of the borrower (other than any creditor who is 

21 fully collateralized) representing a substantial 

22 portion of the total debt of the borrower held by 

23 the creditors of the borrower, agree to participate 

24 in the development of the restructuring plan or 
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1 agree to participate in a State mediation pro2 gram. 

3 ‘‘(B) FAILURE OF CREDITORS TO AGREE.— 

4 Failure of creditors to agree to participate in the 

5 restructuring plan or mediation program shall 

6 not preclude the use of a principal and interest 

7 write-down by the Secretary if the Secretary de8 termines that restructuring results in the least 

9 cost to the Secretary. 

10 ‘‘(2) PARTICIPATION OF CREDITORS.—Before 

11 eliminating the option to use debt write-down in the 

12 case of a borrower, the Secretary shall make a reason13 able effort to contact the creditors of the borrower, ei14 ther directly or through the borrower, and encourage 

15 the creditors to participate with the Secretary in the 

16 development of a restructuring plan for the borrower. 

17 ‘‘(e) SHARED APPRECIATION ARRANGEMENTS.— 

18 ‘‘(1) IN GENERAL.—As a condition of restruc19 turing a loan in accordance with this section, the bor20 rower of the loan may be required to enter into a 

21 shared appreciation arrangement that requires the re22 payment of amounts written off or set aside. 

23 ‘‘(2) TERMS.—A shared appreciation agreement 

24 shall— 
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† HR 2642 EAS 

1 ‘‘(A) have a term not to exceed 10 years; 

2 and 

3 ‘‘(B) provide for recapture based on the dif4 ference between the appraised values of the real 

5 security property at the time of restructuring 

6 and at the time of recapture. 

7 ‘‘(3) PERCENTAGE OF RECAPTURE.—The amount 

8 of the appreciation to be recaptured by the Secretary 

9 shall be— 

10 ‘‘(A) 75 percent of the appreciation in the 

11 value of the real security property if the recap12 ture occurs not later than 4 years after the date 

13 of restructuring; and 

14 ‘‘(B) 50 percent if the recapture occurs dur15 ing the remainder of the term of the agreement. 

16 ‘‘(4) TIME OF RECAPTURE.—Recapture shall take 

17 place on the date that is the earliest of— 

18 ‘‘(A) the end of the term of the agreement; 

19 ‘‘(B) the conveyance of the real security 

20 property; 

21 ‘‘(C) the repayment of the loans; or 

22 ‘‘(D) the cessation of farming operations by 

23 the borrower. 

24 ‘‘(5) TRANSFER OF TITLE.—Transfer of title to 

25 the spouse of a borrower on the death of the borrower 
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1 shall not be treated as a conveyance for the purpose 

2 of paragraph (4). 

3 ‘‘(6) NOTICE OF RECAPTURE.—Not later than 12 

4 months before the end of the term of a shared appre5 ciation arrangement, the Secretary shall notify the 

6 borrower involved of the provisions of the arrange7 ment. 

8 ‘‘(7) FINANCING OF RECAPTURE PAYMENT.— 

9 ‘‘(A) IN GENERAL.—The Secretary may am10 ortize a recapture payment owed to the Secretary 

11 under this subsection. 

12 ‘‘(B) TERM.—The term of an amortization 

13 under this paragraph may not exceed 25 years. 

14 ‘‘(C) INTEREST RATE.—The interest rate 

15 applicable to an amortization under this para16 graph may not exceed the rate applicable to a 

17 loan to reacquire homestead property less 100 

18 basis points. 

19 ‘‘(D) REAMORTIZATION.— 

20 ‘‘(i) IN GENERAL.—The Secretary may 

21 modify the amortization of a recapture pay22 ment referred to in subparagraph (A) of 

23 this paragraph on which a payment has be24 come delinquent if— 
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1 ‘‘(I) the default is due to cir2 cumstances beyond the control of the 

3 borrower; and 

4 ‘‘(II) the borrower acted in good 

5 faith (as determined by the Secretary) 

6 in attempting to repay the recapture 

7 amount. 

8 ‘‘(ii) LIMITATIONS.— 

9 ‘‘(I) TERM OF REAMORTIZA10 TION.—The term of a reamortization 

11 under this subparagraph may not ex12 ceed 25 years from the date of the 

13 original amortization agreement. 

14 ‘‘(II) NO REDUCTION OR PRIN15 CIPAL OR UNPAID INTEREST DUE.—A 

16 reamortization of a recapture payment 

17 under this subparagraph may not pro18 vide for reducing the outstanding prin19 cipal or unpaid interest due on the re20 capture payment. 

21 ‘‘(f) INTEREST RATES.—Any loan for farm ownership 

22 purposes, farm operating purposes, or disaster emergency 

23 purposes, that is deferred, consolidated, rescheduled, or re24 amortized shall, notwithstanding any other provision of 

25 this subtitle, bear interest on the balance of the original loan 
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† HR 2642 EAS 

1 and for the term of the original loan at a rate that is the 

2 lowest of— 

3 ‘‘(1) the rate of interest on the original loan; 

4 ‘‘(2) the rate being charged by the Secretary for 

5 loans, other than guaranteed loans, of the same type 

6 at the time at which the borrower applies for a defer7 ral, consolidation, rescheduling, or reamortization; or 

8 ‘‘(3) the rate being charged by the Secretary for 

9 loans, other than guaranteed loans, of the same type 

10 at the time of the deferral, consolidation, rescheduling, 

11 or reamortization. 

12 ‘‘(g) PERIOD AND EFFECT.— 

13 ‘‘(1) PERIOD.—The Secretary may consolidate or 

14 reschedule outstanding loans for payment over a pe15 riod not to exceed 7 years (or, in the case of loans for 

16 farm operating purposes, 15 years) from the date of 

17 the consolidation or rescheduling. 

18 ‘‘(2) EFFECT.—The amount of unpaid principal 

19 and interest of the prior loans so consolidated or re20 scheduled shall not create a new charge against any 

21 loan levels authorized by law. 

22 ‘‘(h) PREREQUISITES TO FORECLOSURE OR LIQUIDA23 TION.—No foreclosure or other similar action shall be taken 

24 to liquidate any loan determined to be ineligible for restruc25 turing by the Secretary under this section— 
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† HR 2642 EAS 

1 ‘‘(1) until the borrower has been given the oppor2 tunity to appeal the decision; and 

3 ‘‘(2) if the borrower appeals, the appeals process 

4 has been completed, and a determination has been 

5 made that the loan is ineligible for restructuring. 

6 ‘‘(i) NOTICE OF INELIGIBILITY FOR RESTRUC7 TURING.— 

8 ‘‘(1) IN GENERAL.—A notice of ineligibility for 

9 restructuring shall be sent to the borrower by reg10 istered or certified mail not later than 15 days after 

11 a determination of ineligibility. 

12 ‘‘(2) CONTENTS.—The notice required under 

13 paragraph (1) shall contain— 

14 ‘‘(A) the determination and the reasons for 

15 the determination; 

16 ‘‘(B) the computations used to make the de17 termination, including the calculation of the re18 covery value of the collateral securing the loan; 

19 and 

20 ‘‘(C) a statement of the right of the borrower 

21 to appeal the decision to the appeals division, 

22 and to appear before a hearing officer. 

23 ‘‘(j) INDEPENDENT APPRAISALS.— 
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1 ‘‘(1) IN GENERAL.—An appeal may include a re2 quest by the borrower for an independent appraisal of 

3 any property securing the loan. 

4 ‘‘(2) PROCESS FOR APPRAISAL.—On a request 

5 under paragraph (1), the Secretary shall present the 

6 borrower with a list of 3 appraisers approved by the 

7 county supervisor, from which the borrower shall se8 lect an appraiser to conduct the appraisal. 

9 ‘‘(3) COST.—The cost of an appraisal under this 

10 subsection shall be paid by the borrower. 

11 ‘‘(4) RESULT.—The result of an appraisal under 

12 this subsection shall be considered in any final deter13 mination concerning the loan. 

14 ‘‘(5) COPY.—A copy of any appraisal under this 

15 subsection shall be provided to the borrower. 

16 ‘‘(k) ONLY 1 WRITE-DOWN OR NET RECOVERY BUY17 OUT PER BORROWER FOR A LOAN MADE AFTER JANUARY

18 6, 1988.— 

19 ‘‘(1) IN GENERAL.—The Secretary may provide 

20 for each borrower not more than 1 write-down or net 

21 recovery buy-out under this section with respect to all 

22 loans made to the borrower after January 6, 1988. 

23 ‘‘(2) SPECIAL RULE.—For purposes of paragraph 

24 (1), the Secretary shall treat any loan made on or be25 fore January 6, 1988, with respect to which a restruc-
529 

† HR 2642 EAS 

1 turing, write-down, or net recovery buy-out is pro2 vided under this section after January 6, 1988, as a 

3 loan made after January 6, 1988. 

4 ‘‘(l) LIQUIDATION OF ASSETS.—The Secretary may 

5 not use the authority provided by this section to reduce or 

6 terminate any portion of the debt of the borrower that the 

7 borrower could pay through the liquidation of assets (or 

8 through the payment of the loan value of the assets, if the 

9 loan value is greater than the liquidation value) described 

10 in subsection (c)(2)(A)(ii). 

11 ‘‘(m) LIFETIME LIMITATION ON DEBT FORGIVENESS

12 PER BORROWER.—The Secretary may provide each bor13 rower not more than $300,000 in debt forgiveness under this 

14 section. 

15 ‘‘SEC. 3412. RELIEF FOR MOBILIZED MILITARY RESERVISTS 

16 FROM CERTAIN AGRICULTURAL LOAN OBLI17 GATIONS. 

18 ‘‘(a) DEFINITION OF MOBILIZED MILITARY RESERV19 IST.—In this section, the term ‘mobilized military reservist’ 

20 means an individual who— 

21 ‘‘(1) is on active duty under section 688, 

22 12301(a), 12301(g), 12302, 12304, 12306, or 12406, 

23 or chapter 15 of title 10, United States Code, or any 

24 other provision of law during a war or during a na25 tional emergency declared by the President or Con-
530 

† HR 2642 EAS 

1 gress, regardless of the location at which the active 

2 duty service is performed; or 

3 ‘‘(2) in the case of a member of the National 

4 Guard, is on full-time National Guard duty (as de5 fined in section 101(d)(5) of title 10, United States 

6 Code) under a call to active service authorized by the 

7 President or the Secretary of Defense for a period of 

8 more than 30 consecutive days under section 502(f) of 

9 title 32, United States Code, for purposes of respond10 ing to a national emergency declared by the President 

11 and supported by Federal funds. 

12 ‘‘(b) FORGIVENESS OF INTEREST PAYMENTS DUE

13 WHILE BORROWER IS A MOBILIZED MILITARY RESERV14 IST.—Any requirement that a borrower of a direct loan 

15 made under this subtitle make any interest payment on the 

16 loan that would otherwise be required to be made while the 

17 borrower is a mobilized military reservist is rescinded. 

18 ‘‘(c) DEFERRAL OF PRINCIPAL PAYMENTS DUE WHILE

19 OR AFTER BORROWER IS A MOBILIZED MILITARY RESERV20 IST.—The due date of any payment of principal on a direct 

21 loan made to a borrower under this subtitle that would oth22 erwise be required to be made while or after the borrower 

23 is a mobilized military reservist is deferred for a period 

24 equal in length to the period for which the borrower is a 

25 mobilized military reservist. 
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† HR 2642 EAS 

1 ‘‘(d) NONACCRUAL OF INTEREST.—Interest on a direct 

2 loan made to a borrower described in this section shall not 

3 accrue during the period the borrower is a mobilized mili4 tary reservist. 

5 ‘‘(e) BORROWER NOT CONSIDERED TO BE DELIN6 QUENT OR RECEIVING DEBT FORGIVENESS.—Notwith7 standing section 3425 or any other provision of this title, 

8 a borrower who receives assistance under this section shall 

9 not, as a result of the assistance, be considered to be delin10 quent or receiving debt forgiveness for purposes of receiving 

11 a direct or guaranteed loan under this subtitle. 

12 ‘‘SEC. 3413. INTEREST RATE REDUCTION PROGRAM. 

13 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 

14 shall establish and carry out in accordance with this section 

15 an interest rate reduction program for any loan guaranteed 

16 under this subtitle. 

17 ‘‘(b) ENTERING INTO CONTRACTS.—The Secretary 

18 shall enter into a contract with, and make payments to, 

19 an institution to reduce, during the term of the contract, 

20 the interest rate paid by the borrower on the guaranteed 

21 loan if— 

22 ‘‘(1) the borrower— 

23 ‘‘(A) is unable to obtain credit elsewhere; 

24 ‘‘(B) is unable to make payments on the 

25 loan in a timely manner; and 
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1 ‘‘(C) during the 24-month period beginning 

2 on the date on which the contract is entered into, 

3 has a total estimated cash income, including all 

4 farm and nonfarm income, that will equal or ex5 ceed the total estimated cash expenses, including 

6 all farm and nonfarm expenses, to be incurred 

7 by the borrower during the period; and 

8 ‘‘(2) during the term of the contract, the lender 

9 reduces the annual rate of interest payable on the 

10 loan by a minimum percentage specified in the con11 tract. 

12 ‘‘(c) PAYMENTS.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), in 

14 return for a contract entered into by a lender under 

15 subsection (b) for the reduction of the interest rate 

16 paid on a loan, the Secretary shall make payments 

17 to the lender in an amount equal to not more than 

18 100 percent of the cost of reducing the annual rate of 

19 interest payable on the loan. 

20 ‘‘(2) LIMITATION.—Payments under paragraph 

21 (1) may not exceed the cost of reducing the rate by 

22 more than 400 basis points. 

23 ‘‘(d) TERM.—The term of a contract entered into under 

24 this section to reduce the interest rate on a guaranteed loan 

25 may not exceed the outstanding term of the loan. 
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† HR 2642 EAS 

1 ‘‘(e) CONDITION ON FORECLOSURE.—Notwithstanding 

2 any other law, any contract of guarantee on a farm loan 

3 entered into under this subtitle shall contain a condition 

4 that the lender of the loan may not initiate a foreclosure 

5 action on the loan until 60 days after a determination is 

6 made with respect to the eligibility of the borrower to par7 ticipate in the program established under this section. 

8 ‘‘SEC. 3414. HOMESTEAD PROPERTY. 

9 ‘‘(a) DEFINITIONS.—In this section: 

10 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis11 trator’ means the Administrator of the Small Busi12 ness Administration. 

13 ‘‘(2) BORROWER-OWNER.—The term ‘borrower14 owner’ means— 

15 ‘‘(A) a borrower-owner of a loan made or 

16 guaranteed by the Secretary or the Adminis17 trator who meets the eligibility requirements of 

18 subsection (c)(1); or 

19 ‘‘(B) in a case in which an owner of home20 stead property pledged the property to secure the 

21 loan and the owner is different than the bor22 rower, the owner. 

23 ‘‘(3) FARM PROGRAM LOAN.—The term ‘farm 

24 program loan’ means a loan made by the Adminis25 trator under the Small Business Act (15 U.S.C. 631 
534 

† HR 2642 EAS 

1 et seq.) for any of the purposes authorized for loans 

2 under chapter 1 or 2. 

3 ‘‘(4) HOMESTEAD PROPERTY.—The term ‘home4 stead property’ means— 

5 ‘‘(A) the principal residence and adjoining 

6 property possessed and occupied by a borrower7 owner, including a reasonable number of farm 

8 outbuildings located on the adjoining land that 

9 are useful to any occupant of the homestead; and 

10 ‘‘(B) not more than 10 acres of adjoining 

11 land that is used to maintain the family of the 

12 borrower-owner. 

13 ‘‘(b) RETENTION OF HOMESTEAD PROPERTY.— 

14 ‘‘(1) IN GENERAL.—The Secretary or the Admin15 istrator shall, on application by a borrower-owner 

16 who meets the eligibility requirements of subsection 

17 (c)(1), permit the borrower-owner to retain possession 

18 and occupancy of homestead property under the terms 

19 set forth, and until the action described in this section 

20 has been completed, if— 

21 ‘‘(A) the Secretary forecloses or takes into 

22 inventory property securing a loan made under 

23 this subtitle; 

24 ‘‘(B) the Administrator forecloses or takes 

25 into inventory property securing a farm pro-
535 

† HR 2642 EAS 

1 gram loan made under the Small Business Act 

2 (15 U.S.C. 631 et seq.); or 

3 ‘‘(C) the borrower-owner of a loan made by 

4 the Secretary or the Administrator files a peti5 tion in bankruptcy that results in the conveyance 

6 of the homestead property to the Secretary or the 

7 Administrator, or agrees to voluntarily liquidate 

8 or convey the property in whole or in part. 

9 ‘‘(2) PERIOD OF OCCUPANCY.—Subject to sub10 section (c), the Secretary or the Administrator shall 

11 not grant a period of occupancy of less than 3 nor 

12 more than 5 years. 

13 ‘‘(c) ELIGIBILITY.— 

14 ‘‘(1) IN GENERAL.—To be eligible to occupy 

15 homestead property, a borrower-owner of a loan made 

16 by the Secretary or the Administrator shall— 

17 ‘‘(A) apply for the occupancy not later than 

18 30 days after the property is acquired by the 

19 Secretary or Administrator; 

20 ‘‘(B) have received from farming operations 

21 gross farm income that is reasonably commensu22 rate with— 

23 ‘‘(i) the size and location of the farm24 ing unit of the borrower-owner; and 
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† HR 2642 EAS 

1 ‘‘(ii) local agricultural conditions (in2 cluding natural and economic conditions), 

3 during at least 2 calendar years of the 6- 

4 year period preceding the calendar year in 

5 which the application is made; 

6 ‘‘(C) have received from farming operations 

7 at least 60 percent of the gross annual income of 

8 the borrower-owner and any spouse of the bor9 rower-owner during at least 2 calendar years of 

10 the 6-year period described in subparagraph (B); 

11 ‘‘(D) have continuously occupied the home12 stead property during the 6-year period de13 scribed in subparagraph (B), except that the re14 quirement of this subparagraph may be waived 

15 if a borrower-owner, due to circumstances be16 yond the control of the borrower-owner, had to 

17 leave the homestead property for a period of time 

18 not to exceed 12 months during the 6-year pe19 riod; 

20 ‘‘(E) during the period of occupancy of the 

21 homestead property, pay a reasonable sum as 

22 rent for the property to the Secretary or the Ad23 ministrator in an amount substantially equiva24 lent to rents charged for similar residential 
537 

† HR 2642 EAS 

1 properties in the area in which the homestead 

2 property is located; 

3 ‘‘(F) during the period of the occupancy of 

4 the homestead property, maintain the property 

5 in good condition; and 

6 ‘‘(G) meet such other reasonable and nec7 essary terms and conditions as the Secretary 

8 may require. 

9 ‘‘(2) DEFINITION OF FARMING OPERATIONS.—In 

10 subparagraphs (B) and (C) of paragraph (1), the 

11 term ‘farming operations’ includes rent paid by a les12 see of agricultural land during a period in which the 

13 borrower-owner, due to circumstances beyond the con14 trol of the borrower-owner, is unable to actively farm 

15 the land. 

16 ‘‘(3) TERMINATION OF RIGHTS.— 

17 ‘‘(A) IN GENERAL.—For purposes of para18 graph (1)(E), the failure of the borrower-owner 

19 to make a timely rental payment shall constitute 

20 cause for the termination of all rights of the bor21 rower-owner to possession and occupancy of the 

22 homestead property under this section. 

23 ‘‘(B) PROCEDURE FOR TERMINATION.—In 

24 effecting a termination under subparagraph (A), 

25 the Secretary shall— 
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† HR 2642 EAS 

1 ‘‘(i) afford the borrower-owner or lessee 

2 the notice and hearing procedural rights de3 scribed in subtitle H of the Department of 

4 Agriculture Reorganization Act of 1994 (7 

5 U.S.C. 6991 et seq.); and 

6 ‘‘(ii) comply with any applicable State 

7 and local law governing eviction of a person 

8 from residential property. 

9 ‘‘(4) RIGHTS OF BORROWER-OWNER.— 

10 ‘‘(A) PERIOD OF OCCUPANCY.—Subject to 

11 subsection (b)(2), the period of occupancy al12 lowed the borrower-owner of homestead property 

13 under this section shall be the period requested 

14 in writing by the borrower-owner. 

15 ‘‘(B) RIGHT TO REACQUIRE.— 

16 ‘‘(i) IN GENERAL.—During the period 

17 the borrower-owner occupies the homestead 

18 property, the borrower-owner shall have a 

19 right to reacquire the homestead property 

20 on such terms and conditions as the Sec21 retary shall determine. 

22 ‘‘(ii) SOCIALLY DISADVANTAGED BOR23 ROWER-OWNER.—During the period of occu24 pancy of a borrower-owner who is a socially 

25 disadvantaged farmer, the borrower-owner 
539 

† HR 2642 EAS 

1 or a member of the immediate family of the 

2 borrower-owner shall have a right of first 

3 refusal to reacquire the homestead property 

4 on such terms and conditions as the Sec5 retary shall determine. 

6 ‘‘(iii) INDEPENDENT APPRAISAL.—The 

7 Secretary may not demand a payment for 

8 the homestead property that is in excess of 

9 the current market value of the homestead 

10 property as established by an independent 

11 appraisal. 

12 ‘‘(iv) CONDUCT OF APPRAISAL.—An 

13 independent appraisal under clause (iii) 

14 shall be conducted by an appraiser selected 

15 by the borrower-owner, or, in the case of a 

16 borrower-owner who is a socially disadvan17 taged farmer, the immediate family member 

18 of the borrower-owner, from a list of 3 ap19 praisers approved by the county supervisor. 

20 ‘‘(5) TRANSFER OF RIGHTS.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), no right of a borrower-owner 

23 under this section, and no agreement entered 

24 into between the borrower-owner and the Sec25 retary for occupancy of the homestead property, 
540 

† HR 2642 EAS 

1 shall be transferable or assignable by the bor2 rower-owner or by operation of law. 

3 ‘‘(B) DEATH OR INCOMPETENCY.—In the 

4 case of death or incompetency of the borrower5 owner, the right and agreement shall be transfer6 able to a spouse of the borrower-owner if the 

7 spouse agrees to comply with any terms and con8 ditions of the right or agreement. 

9 ‘‘(6) NOTIFICATION.—Not later than the date of 

10 acquisition of the property securing a loan made 

11 under this subtitle, the Secretary shall notify the bor12 rower-owner of the property of the availability of 

13 homestead protection rights under this section. 

14 ‘‘(d) END OF PERIOD OF OCCUPANCY.— 

15 ‘‘(1) IN GENERAL.—At the end of the period of 

16 occupancy allowed a borrower-owner under subsection 

17 (c), the Secretary or the Administrator shall grant to 

18 the borrower-owner a right of first refusal to reacquire 

19 the homestead property on such terms and conditions 

20 (which may include payment of principal in install21 ments) as the Secretary or the Administrator shall de22 termine. 

23 ‘‘(2) TERMS AND CONDITIONS.—The terms and 

24 conditions granted under paragraph (1) may not be 

25 less favorable than those offered by the Secretary or 
541 

† HR 2642 EAS 

1 Administrator or intended by the Secretary or Ad2 ministrator to be offered to any other buyer. 

3 ‘‘(e) MAXIMUM PAYMENT OF PRINCIPAL.— 

4 ‘‘(1) IN GENERAL.—At the time a reacquisition 

5 agreement is entered into, the Secretary or the Ad6 ministrator may not demand a total payment of 

7 principal that is in excess of the value of the home8 stead property. 

9 ‘‘(2) DETERMINATION OF VALUE.—To the max10 imum extent practicable, the value of the homestead 

11 property shall be determined by an independent ap12 praisal made during the 180-day period beginning on 

13 the date of receipt of the application of the borrower14 owner to retain possession and occupancy of the 

15 homestead property. 

16 ‘‘(f) TITLE NOT NEEDED TO ENTER INTO CON17 TRACTS.—The Secretary may enter into a contract author18 ized by this section before the Secretary acquires title to 

19 the homestead property that is the subject of the contract. 

20 ‘‘(g) STATE LAW PREVAILS.—In the event of a conflict 

21 between this section and a provision of State law relating 

22 to the right of a borrower-owner to designate for separate 

23 sale or redeem part or all of the real property securing a 

24 loan foreclosed on by a lender to the borrower-owner, the 

25 provision of State law shall prevail. 
542 

† HR 2642 EAS 

1 ‘‘SEC. 3415. TRANSFER OF INVENTORY LAND. 

2 ‘‘(a) IN GENERAL.—Subject to subsection (b), the Sec3 retary may transfer to a Federal or State agency, for con4 servation purposes, any real property, or interest in real 

5 property, administered by the Secretary under this sub6 title— 

7 ‘‘(1) with respect to which the rights of all prior 

8 owners and operators have expired; 

9 ‘‘(2) that is eligible to be disposed of in accord10 ance with section 3409; and 

11 ‘‘(3) that— 

12 ‘‘(A) has marginal value for agricultural 

13 production; 

14 ‘‘(B) is environmentally sensitive; or 

15 ‘‘(C) has special management importance. 

16 ‘‘(b) CONDITIONS.—The Secretary may not transfer 

17 any property or interest in property under subsection (a) 

18 unless— 

19 ‘‘(1) at least 2 public notices are given of the 

20 transfer; 

21 ‘‘(2) if requested, at least 1 public meeting is 

22 held prior to the transfer; and 

23 ‘‘(3) the Governor and at least 1 elected county 

24 official of the State and county in which the property 

25 is located are consulted prior to the transfer. 
543 

† HR 2642 EAS 

1 ‘‘SEC. 3416. TARGET PARTICIPATION RATES. 

2 ‘‘(a) ESTABLISHMENT.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall establish 

4 annual target participation rates, on a county-wide 

5 basis, that shall ensure that members of socially dis6 advantaged groups shall— 

7 ‘‘(A) receive loans made or guaranteed 

8 under chapter 1; and 

9 ‘‘(B) have the opportunity to purchase or 

10 lease farmland acquired by the Secretary under 

11 this subtitle. 

12 ‘‘(2) GROUP POPULATION.—Except as provided 

13 in paragraph (3), in establishing the target rates, the 

14 Secretary shall take into consideration— 

15 ‘‘(A) the portion of the population of the 

16 county made up of the socially disadvantaged 

17 groups; and 

18 ‘‘(B) the availability of inventory farmland 

19 in the county. 

20 ‘‘(3) GENDER.—In the case of gender, target par21 ticipation rates shall take into consideration the num22 ber of current and potential socially disadvantaged 

23 farmers in a State in proportion to the total number 

24 of farmers in the State. 

25 ‘‘(b) RESERVATION AND ALLOCATION.— 
544 

† HR 2642 EAS 

1 ‘‘(1) RESERVATION.—To the maximum extent 

2 practicable, the Secretary shall reserve sufficient loan 

3 funds made available under chapter 1 for use by 

4 members of socially disadvantaged groups identified 

5 under target participation rates established under 

6 subsection (a). 

7 ‘‘(2) ALLOCATION.—The Secretary shall allocate 

8 the loans on the basis of the proportion of members 

9 of socially disadvantaged groups in a county and the 

10 availability of inventory farmland, with the greatest 

11 amount of loan funds being distributed in the county 

12 with the greatest proportion of socially disadvantaged 

13 group members and the greatest quantity of available 

14 inventory farmland. 

15 ‘‘(3) INDIAN RESERVATIONS.—In distributing 

16 loan funds in counties within the boundaries of an 

17 Indian reservation, the Secretary shall allocate the 

18 funds on a reservation-wide basis. 

19 ‘‘(c) OPERATING LOANS.— 

20 ‘‘(1) ESTABLISHMENT.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall es22 tablish annual target participation rates that 

23 shall ensure that socially disadvantaged farmers 

24 receive loans made or guaranteed under chapter 

25 2. 
545 

† HR 2642 EAS 

1 ‘‘(B) CONSIDERATIONS.—In establishing the 

2 target rates, the Secretary shall consider the 

3 number of socially disadvantaged farmers in a 

4 State in proportion to the total number of farm5 ers in the State. 

6 ‘‘(2) RESERVATION AND ALLOCATION.— 

7 ‘‘(A) IN GENERAL.—To the maximum ex8 tent practicable, the Secretary shall reserve and 

9 allocate the proportion of the loan funds of each 

10 State made available under chapter 2 that is 

11 equal to the target participation rate of the State 

12 for use by the socially disadvantaged farmers in 

13 the State. 

14 ‘‘(B) DISTRIBUTION.—To the maximum ex15 tent practicable, the Secretary shall distribute 

16 the total loan funds reserved under subparagraph 

17 (A) on a county-by-county basis according to the 

18 number of socially disadvantaged farmers in the 

19 county. 

20 ‘‘(C) REALLOCATION OF UNUSED FUNDS.— 

21 Any funds reserved and allocated under this 

22 paragraph but not used within a State shall, to 

23 the extent necessary to satisfy pending applica24 tions under this subtitle, be available for use by 

25 socially disadvantaged farmers in other States, 
546 

† HR 2642 EAS 

1 as determined by the Secretary, and any re2 maining funds shall be reallocated within the 

3 State. 

4 ‘‘(d) REPORT.—The Secretary shall prepare and sub5 mit to the Committee on Agriculture of the House of Rep6 resentatives and the Committee on Agriculture, Nutrition, 

7 and Forestry of the Senate a report that describes the an8 nual target participation rates and the success in meeting 

9 the rates. 

10 ‘‘(e) IMPLEMENTATION CONSISTENT WITH SUPREME

11 COURT HOLDING.—Not later than 180 days after April 4, 

12 1996, the Secretary shall ensure that the implementation 

13 of this section is consistent with the holding of the Supreme 

14 Court in Adarand Constructors, Inc. v. Federico Pena, Sec15 retary of Transportation, 115 S. Ct. 2097 (1995). 

16 ‘‘SEC. 3417. COMPROMISE OR ADJUSTMENT OF DEBTS OR 

17 CLAIMS BY GUARANTEED LENDER. 

18 ‘‘(a) LOSS BY LENDER.—If the lender of a guaranteed 

19 farmer program loan takes any action described in section 

20 3903(a)(4) with respect to the loan and the Secretary ap21 proves the action, for purposes of the guarantee, the lender 

22 shall be treated as having sustained a loss equal to the 

23 amount by which— 

24 ‘‘(1) the outstanding balance of the loan imme25 diately before the action; exceeds 
547 

† HR 2642 EAS 

1 ‘‘(2) the outstanding balance of the loan imme2 diately after the action. 

3 ‘‘(b) NET PRESENT VALUE OF LOAN.—The Secretary 

4 shall approve the taking of an action described in section 

5 3903(a)(4) by the lender of a guaranteed farmer program 

6 loan with respect to the loan if the action reduces the net 

7 present value of the loan to an amount equal to not less 

8 than the greater of— 

9 ‘‘(1) the greatest net present value of a loan the 

10 borrower could reasonably be expected to repay; and 

11 ‘‘(2) the difference between— 

12 ‘‘(A) the greatest amount that the lender of 

13 the loan could reasonably expect to recover from 

14 the borrower through bankruptcy, or liquidation 

15 of the property securing the loan; and 

16 ‘‘(B) all reasonable and necessary costs and 

17 expenses that the lender of the loan could reason18 ably expect to incur to preserve or dispose of the 

19 property (including all associated legal and 

20 property management costs) in the course of such 

21 a bankruptcy or liquidation. 

22 ‘‘(c) NO LIMITATION ON AUTHORITY.—This section 

23 shall not limit the authority of the Secretary to enter into 

24 a shared appreciation arrangement with a borrower under 

25 section 3411(e). 
548 

† HR 2642 EAS 

1 ‘‘SEC. 3418. WAIVER OF MEDIATION RIGHTS BY BOR2 ROWERS. 

3 ‘‘The Secretary may not make or guarantee any farm4 er program loan to a farm borrower on the condition that 

5 the borrower waive any right under the mediation program 

6 of any State. 

7 ‘‘SEC. 3419. BORROWER TRAINING. 

8 ‘‘(a) IN GENERAL.—The Secretary shall contract to 

9 provide educational training to all borrowers of direct loans 

10 made under this subtitle in financial and farm manage11 ment concepts associated with commercial farming. 

12 ‘‘(b) CONTRACT.— 

13 ‘‘(1) IN GENERAL.—The Secretary may contract 

14 with a State or private provider of farm management 

15 and credit counseling services (including a commu16 nity college, the extension service of a State, a State 

17 department of agriculture, or a nonprofit organiza18 tion) to carry out this section. 

19 ‘‘(2) CONSULTATION.—The Secretary may con20 sult with the chief executive officer of a State con21 cerning the identity of the contracting organization 

22 and the process for contracting. 

23 ‘‘(c) ELIGIBILITY FOR LOANS.— 

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), to 

25 be eligible to obtain a direct loan under this subtitle, 

26 a borrower shall be required to obtain management 
549 

† HR 2642 EAS 

1 assistance under this section, appropriate to the man2 agement ability of the borrower during the determina3 tion of eligibility for the loan. 

4 ‘‘(2) LOAN CONDITIONS.—The need of a borrower 

5 who satisfies the criteria set out in section 

6 3101(b)(1)(B) or 3201(b)(1)(B) for management as7 sistance under this section shall not be cause for de8 nial of eligibility of the borrower for a direct loan 

9 under this subtitle. 

10 ‘‘(d) GUIDELINES AND CURRICULUM.—The Secretary 

11 shall issue regulations establishing guidelines and cur12 riculum for the borrower training program established 

13 under this section. 

14 ‘‘(e) PAYMENT.—A borrower— 

15 ‘‘(1) shall pay for training received under this 

16 section; and 

17 ‘‘(2) may use funds from operating loans made 

18 under chapter 2 to pay for the training. 

19 ‘‘(f) WAIVERS.— 

20 ‘‘(1) IN GENERAL.—The Secretary may waive 

21 the requirements of this section for an individual bor22 rower on a determination that the borrower dem23 onstrates adequate knowledge in areas described in 

24 this section. 
550 

† HR 2642 EAS 

1 ‘‘(2) CRITERIA.—The Secretary shall establish 

2 criteria providing for the application of paragraph 

3 (1) consistently in all counties nationwide. 

4 ‘‘SEC. 3420. LOAN ASSESSMENTS. 

5 ‘‘(a) IN GENERAL.—After an applicant is determined 

6 to be eligible for assistance under this subtitle, the Secretary 

7 shall evaluate, in accordance with regulations issued by the 

8 Secretary, the farming plan and financial situation of each 

9 qualified farmer applicant. 

10 ‘‘(b) DETERMINATIONS.—In evaluating the farming 

11 plan and financial situation of an applicant under this sec12 tion, the Secretary shall determine— 

13 ‘‘(1) the amount that the applicant needs to bor14 row to carry out the proposed farming plan; 

15 ‘‘(2) the rate of interest that the applicant would 

16 need to be able to cover expenses and build an ade17 quate equity base; 

18 ‘‘(3) the goals of the proposed farming plan of 

19 the applicant; 

20 ‘‘(4) the financial viability of the plan and any 

21 changes that are necessary to make the plan viable; 

22 and 

23 ‘‘(5) whether assistance is necessary under this 

24 subtitle and, if so, the amount of the assistance. 
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1 ‘‘(c) CONTRACT.—The Secretary may contract with a 

2 third party (including an entity that is eligible to provide 

3 borrower training under section 3419(b)) to conduct a loan 

4 assessment under this section. 

5 ‘‘(d) REVIEW OF LOANS.— 

6 ‘‘(1) IN GENERAL.—Loan assessments conducted 

7 under this section shall include annual review of di8 rect loans, and periodic review (as determined nec9 essary by the Secretary) of guaranteed loans, made 

10 under this subtitle to assess the progress of a borrower 

11 in meeting the goals for the farm operation. 

12 ‘‘(2) CONTRACTS.—The Secretary may contract 

13 with an entity that is eligible to provide borrower 

14 training under section 3419(b) to conduct a loan re15 view under paragraph (1). 

16 ‘‘(3) PROBLEM ASSESSMENTS.—If a borrower is 

17 delinquent in payments on a direct or guaranteed 

18 loan made under this subtitle, the Secretary or the 

19 contracting entity shall determine the cause of, and 

20 action necessary to correct, the delinquency. 

21 ‘‘(e) GUIDELINES.—The Secretary shall issue regula22 tions providing guidelines for loan assessments conducted 

23 under this section. 
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1 ‘‘SEC. 3421. SUPERVISED CREDIT. 

2 ‘‘The Secretary shall provide adequate training to em3 ployees of the Farm Service Agency on credit analysis and 

4 financial and farm management— 

5 ‘‘(1) to better acquaint the employees with what 

6 constitutes adequate financial data on which to base 

7 a direct or guaranteed loan approval decision; and 

8 ‘‘(2) to ensure proper supervision of farmer pro9 gram loans. 

10 ‘‘SEC. 3422. MARKET PLACEMENT. 

11 ‘‘The Secretary shall establish a market placement pro12 gram for a qualified beginning farmer and any other bor13 rower of farmer program loans that the Secretary believes 

14 has a reasonable chance of qualifying for commercial credit 

15 with a guarantee provided under this subtitle. 

16 ‘‘SEC. 3423. RECORDKEEPING OF LOANS BY GENDER OF 

17 BORROWER. 

18 ‘‘The Secretary shall classify, by gender, records of ap19 plicants for loans and loan guarantees under this subtitle. 

20 ‘‘SEC. 3424. CROP INSURANCE REQUIREMENT. 

21 ‘‘(a) IN GENERAL.—As a condition of obtaining any 

22 benefit (including a direct loan, loan guarantee, or pay23 ment) described in subsection (b), a borrower shall be re24 quired to obtain at least catastrophic risk protection insur25 ance coverage under section 508 of the Federal Crop Insur26 ance Act (7 U.S.C. 1508) for the crop and crop year for 
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† HR 2642 EAS 

1 which the benefit is sought, if the coverage is offered by the 

2 Federal Crop Insurance Corporation. 

3 ‘‘(b) APPLICABLE BENEFITS.—Subsection (a) shall 

4 apply to— 

5 ‘‘(1) a farm ownership loan under section 3102; 

6 ‘‘(2) an operating loan under section 3202; and 

7 ‘‘(3) an emergency loan under section 3301. 

8 ‘‘SEC. 3425. LOAN AND LOAN SERVICING LIMITATIONS. 

9 ‘‘(a) DELINQUENT BORROWERS PROHIBITED FROM

10 OBTAINING DIRECT OPERATING LOANS.—The Secretary 

11 may not make a direct operating loan under chapter 2 to 

12 a borrower who is delinquent on any loan made or guaran13 teed under this subtitle. 

14 ‘‘(b) LOANS PROHIBITED FOR BORROWERS THAT

15 HAVE RECEIVED DEBT FORGIVENESS.— 

16 ‘‘(1) PROHIBITIONS.—Except as provided in 

17 paragraph (2)— 

18 ‘‘(A) the Secretary may not make a loan 

19 under this subtitle to a borrower that has re20 ceived debt forgiveness on a loan made or guar21 anteed under this subtitle; and 

22 ‘‘(B) the Secretary may not guarantee a 

23 loan under this subtitle to a borrower that has 

24 received— 
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† HR 2642 EAS 

1 ‘‘(i) debt forgiveness after April 4, 

2 1996, on a loan made or guaranteed under 

3 this subtitle; or 

4 ‘‘(ii) received debt forgiveness on more 

5 than 3 occasions on or before April 4, 1996. 

6 ‘‘(2) EXCEPTIONS.— 

7 ‘‘(A) IN GENERAL.—The Secretary may 

8 make a direct or guaranteed farm operating loan 

9 for paying annual farm operating expenses of a 

10 borrower who— 

11 ‘‘(i) was restructured with a write12 down under section 3411; 

13 ‘‘(ii) is current on payments under a 

14 confirmed reorganization plan under chap15 ters 11, 12, or 13 of title 11 of the United 

16 States Code; or 

17 ‘‘(iii) received debt forgiveness on not 

18 more than 1 occasion resulting directly and 

19 primarily from a major disaster or emer20 gency designated by the President on or 

21 after April 4, 1996, under the Robert T. 

22 Stafford Disaster Relief and Emergency As23 sistance Act (42 U.S.C. 5121 et seq.). 
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† HR 2642 EAS 

1 ‘‘(B) EMERGENCY LOANS.—The Secretary 

2 may make an emergency loan under section 3301 

3 to a borrower that— 

4 ‘‘(i) on or before April 4, 1996, re5 ceived not more than 1 debt forgiveness on 

6 a loan made or guaranteed under this sub7 title; and 

8 ‘‘(ii) after April 4, 1996, has not re9 ceived debt forgiveness on a loan made or 

10 guaranteed under this subtitle. 

11 ‘‘(c) NO MORE THAN 1 DEBT FORGIVENESS FOR A

12 BORROWER ON A DIRECT LOAN.—The Secretary may not 

13 provide to a borrower debt forgiveness on a direct loan made 

14 under this subtitle if the borrower has received debt forgive15 ness on another direct loan made under this subtitle. 

16 ‘‘SEC. 3426. SHORT FORM CERTIFICATION OF FARM PRO17 GRAM BORROWER COMPLIANCE. 

18 ‘‘The Secretary shall develop and use a consolidated 

19 short form for farmer program loan borrowers to use in cer20 tifying compliance with any applicable provision of law 

21 (including a regulation) that serves as an eligibility pre22 requisite for a loan made under this subtitle. 

23 ‘‘SEC. 3427. UNDERWRITING FORMS AND STANDARDS. 

24 ‘‘In the administration of this subtitle, the Secretary 

25 shall, to the extent practicable, use underwriting forms, 
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1 standards, practices, and terminology similar to the forms, 

2 standards, practices, and terminology used by lenders in 

3 the private sector. 

4 ‘‘SEC. 3428. BEGINNING FARMER INDIVIDUAL DEVELOP5 MENT ACCOUNTS PILOT PROGRAM. 

6 ‘‘(a) DEFINITIONS.—In this section: 

7 ‘‘(1) DEMONSTRATION PROGRAM.—The term 

8 ‘demonstration program’ means a demonstration pro9 gram carried out by a qualified entity under the pilot 

10 program established in subsection (b)(1). 

11 ‘‘(2) ELIGIBLE PARTICIPANT.—The term ‘eligible 

12 participant’ means a qualified beginning farmer 

13 that— 

14 ‘‘(A) lacks significant financial resources or 

15 assets; and 

16 ‘‘(B) has an income that is less than— 

17 ‘‘(i) 80 percent of the median income 

18 of the State in which the farmer resides; or 

19 ‘‘(ii) 200 percent of the most recent an20 nual Federal Poverty Income Guidelines 

21 published by the Department of Health and 

22 Human Services for the State. 

23 ‘‘(3) INDIVIDUAL DEVELOPMENT ACCOUNT.—The 

24 term ‘individual development account’ means a sav25 ings account described in subsection (b)(4)(A). 
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1 ‘‘(4) QUALIFIED ENTITY.— 

2 ‘‘(A) IN GENERAL.—The term ‘qualified en3 tity’ means— 

4 ‘‘(i) 1 or more organizations— 

5 ‘‘(I) described in section 501(c)(3) 

6 of the Internal Revenue Code of 1986; 

7 and 

8 ‘‘(II) exempt from taxation under 

9 section 501(a) of such Code; or 

10 ‘‘(ii) a State, local, or tribal govern11 ment submitting an application jointly 

12 with an organization described in clause 

13 (i). 

14 ‘‘(B) NO PROHIBITION ON COLLABORA15 TION.—An organization described in subpara16 graph (A)(i) may collaborate with a financial 

17 institution or for-profit community development 

18 corporation to carry out the purposes of this sec19 tion. 

20 ‘‘(b) PILOT PROGRAM.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall establish 

22 a pilot program to be known as the ‘New Farmer In23 dividual Development Accounts Pilot Program’ under 

24 which the Secretary shall work through qualified enti25 ties to establish demonstration programs— 
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1 ‘‘(A) of at least 5 years in duration; and 

2 ‘‘(B) in at least 15 States. 

3 ‘‘(2) COORDINATION.—The Secretary shall oper4 ate the pilot program through and in coordination 

5 with the farmer program loans of the Farm Service 

6 Agency. 

7 ‘‘(3) RESERVE FUNDS.— 

8 ‘‘(A) IN GENERAL.—A qualified entity car9 rying out a demonstration program under this 

10 section shall establish a reserve fund consisting of 

11 a non-Federal match of 50 percent of the total 

12 amount of the grant awarded to the demonstra13 tion program under this section. 

14 ‘‘(B) FEDERAL FUNDS.—After the qualified 

15 entity has deposited the non-Federal matching 

16 funds described in subparagraph (A) in the re17 serve fund, the Secretary shall provide the total 

18 amount of the grant awarded under this section 

19 to the demonstration program for deposit in the 

20 reserve fund. 

21 ‘‘(C) USE OF FUNDS.—Of the funds depos22 ited under subparagraph (B) in the reserve fund 

23 established for a demonstration program, the 

24 qualified entity carrying out the demonstration 

25 program— 
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1 ‘‘(i) may use up to 10 percent for ad2 ministrative expenses; and 

3 ‘‘(ii) shall use the remainder in mak4 ing matching awards described in para5 graph (4)(B)(ii)(I). 

6 ‘‘(D) INTEREST.—Any interest earned on 

7 amounts in a reserve fund established under sub8 paragraph (A) may be used by the qualified en9 tity as additional matching funds for, or to ad10 minister, the demonstration program. 

11 ‘‘(E) GUIDANCE.—The Secretary shall issue 

12 guidance regarding the investment requirements 

13 of reserve funds established under this para14 graph. 

15 ‘‘(F) REVERSION.—On the date on which 

16 all funds remaining in any individual develop17 ment account established by a qualified entity 

18 have reverted under paragraph (5)(B)(ii) to the 

19 reserve fund established by the qualified entity, 

20 there shall revert to the Treasury of the United 

21 States a percentage of the amount (if any) in the 

22 reserve fund equal to— 

23 ‘‘(i) the amount of Federal funds de24 posited in the reserve fund under subpara-
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† HR 2642 EAS 

1 graph (B) that were not used for adminis2 trative expenses; divided by 

3 ‘‘(ii) the total amount of funds depos4 ited in the reserve fund. 

5 ‘‘(4) INDIVIDUAL DEVELOPMENT ACCOUNTS.— 

6 ‘‘(A) IN GENERAL.—A qualified entity re7 ceiving a grant under this section shall establish 

8 and administer individual development accounts 

9 for eligible participants. 

10 ‘‘(B) CONTRACT REQUIREMENTS.—To be el11 igible to receive funds under this section from a 

12 qualified entity, an eligible participant shall 

13 enter into a contract with only 1 qualified entity 

14 under which— 

15 ‘‘(i) the eligible participant agrees— 

16 ‘‘(I) to deposit a certain amount 

17 of funds of the eligible participant in 

18 a personal savings account, as pre19 scribed by the contractual agreement 

20 between the eligible participant and 

21 the qualified entity; 

22 ‘‘(II) to use the funds described in 

23 subclause (I) only for 1 or more eligible 

24 expenditures described in paragraph 

25 (5)(A); and 
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† HR 2642 EAS 

1 ‘‘(III) to complete financial train2 ing; and 

3 ‘‘(ii) the qualified entity agrees— 

4 ‘‘(I) to deposit, not later than 1 

5 month after an amount is deposited 

6 pursuant to clause (i)(I), at least a 

7 100-percent, and up to a 200-percent, 

8 match of that amount into the indi9 vidual development account established 

10 for the eligible participant; and 

11 ‘‘(II) with uses of funds proposed 

12 by the eligible participant. 

13 ‘‘(C) LIMITATION.— 

14 ‘‘(i) IN GENERAL.—A qualified entity 

15 administering a demonstration program 

16 under this section may provide not more 

17 than $6,000 for each fiscal year in match18 ing funds to the individual development ac19 count established by the qualified entity for 

20 an eligible participant. 

21 ‘‘(ii) TREATMENT OF AMOUNT.—An 

22 amount provided under clause (i) shall not 

23 be considered to be a gift or loan for mort24 gage purposes. 

25 ‘‘(5) ELIGIBLE EXPENDITURES.— 
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1 ‘‘(A) IN GENERAL.—An eligible expenditure 

2 described in this subparagraph is an expendi3 ture— 

4 ‘‘(i) to purchase farmland or make a 

5 down payment on an accepted purchase 

6 offer for farmland; 

7 ‘‘(ii) to make mortgage payments on 

8 farmland purchased pursuant to clause (i), 

9 for up to 180 days after the date of the pur10 chase; 

11 ‘‘(iii) to purchase breeding stock, fruit 

12 or nut trees, or trees to harvest for timber; 

13 and 

14 ‘‘(iv) for other similar expenditures, as 

15 determined by the Secretary. 

16 ‘‘(B) TIMING.— 

17 ‘‘(i) IN GENERAL.—An eligible partici18 pant may make an eligible expenditure at 

19 any time during the 2-year period begin20 ning on the date on which the last matching 

21 funds are provided under paragraph 

22 (4)(B)(ii)(I) to the individual development 

23 account established for the eligible partici24 pant. 
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† HR 2642 EAS 

1 ‘‘(ii) UNEXPENDED FUNDS.—At the 

2 end of the period described in clause (i), 

3 any funds remaining in an individual de4 velopment account established for an eligible 

5 participant shall revert to the reserve fund 

6 of the demonstration program under which 

7 the account was established. 

8 ‘‘(c) APPLICATIONS.— 

9 ‘‘(1) IN GENERAL.—A qualified entity that seeks 

10 to carry out a demonstration program under this sec11 tion may submit to the Secretary an application at 

12 such time, in such form, and containing such infor13 mation as the Secretary may prescribe. 

14 ‘‘(2) CRITERIA.—In considering whether to ap15 prove an application to carry out a demonstration 

16 program under this section, the Secretary shall as17 sess— 

18 ‘‘(A) the degree to which the demonstration 

19 program described in the application is likely to 

20 aid eligible participants in successfully pursuing 

21 new farming opportunities; 

22 ‘‘(B) the experience and ability of the quali23 fied entity to responsibly administer the dem24 onstration program; 
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† HR 2642 EAS 

1 ‘‘(C) the experience and ability of the quali2 fied entity in recruiting, educating, and assist3 ing eligible participants to increase economic 

4 independence and pursue or advance farming 

5 opportunities; 

6 ‘‘(D) the aggregate amount of direct funds 

7 from non-Federal public sector and private 

8 sources that are formally committed to the dem9 onstration program as matching contributions; 

10 ‘‘(E) the adequacy of the plan of the quali11 fied entity to provide information relevant to an 

12 evaluation of the demonstration program; and 

13 ‘‘(F) such other factors as the Secretary con14 siders to be appropriate. 

15 ‘‘(3) PREFERENCES.—In considering an applica16 tion to conduct a demonstration program under this 

17 section, the Secretary shall give preference to an ap18 plication from a qualified entity that demonstrates— 

19 ‘‘(A) a track record of serving clients tar20 geted by the program, including, as appropriate, 

21 socially disadvantaged farmers; and 

22 ‘‘(B) expertise in dealing with financial 

23 management aspects of farming. 

24 ‘‘(4) APPROVAL.—Not later than 1 year after the 

25 date of enactment of this section, in accordance with 
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† HR 2642 EAS 

1 this section, the Secretary shall, on a competitive 

2 basis, approve such applications to conduct dem3 onstration programs as the Secretary considers ap4 propriate. 

5 ‘‘(5) TERM OF AUTHORITY.—If the Secretary ap6 proves an application to carry out a demonstration 

7 program, the Secretary shall authorize the applicant 

8 to carry out the project for a period of 5 years, plus 

9 an additional 2 years to make eligible expenditures in 

10 accordance with subsection (b)(5)(B). 

11 ‘‘(d) GRANT AUTHORITY.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall make a 

13 grant to a qualified entity authorized to carry out a 

14 demonstration program under this section. 

15 ‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The aggre16 gate amount of grant funds provided to a demonstra17 tion program carried out under this section shall not 

18 exceed $250,000. 

19 ‘‘(3) TIMING OF GRANT PAYMENTS.—The Sec20 retary shall pay the amounts awarded under a grant 

21 made under this section— 

22 ‘‘(A) on the awarding of the grant; or 

23 ‘‘(B) pursuant to such payment plan as the 

24 qualified entity may specify. 

25 ‘‘(e) REPORTS.— 
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1 ‘‘(1) ANNUAL PROGRESS REPORTS.— 

2 ‘‘(A) IN GENERAL.—Not later than 60 days 

3 after the end of the calendar year in which the 

4 Secretary authorizes a qualified entity to carry 

5 out a demonstration program under this section, 

6 and annually thereafter until the conclusion of 

7 the demonstration program, the qualified entity 

8 shall prepare an annual report that includes, for 

9 the period covered by the report— 

10 ‘‘(i) an evaluation of the progress of 

11 the demonstration program; 

12 ‘‘(ii) information about the demonstra13 tion program, including the eligible partici14 pants and the individual development ac15 counts that have been established; and 

16 ‘‘(iii) such other information as the 

17 Secretary may require. 

18 ‘‘(B) SUBMISSION OF REPORTS.—A quali19 fied entity shall submit each report required 

20 under subparagraph (A) to the Secretary. 

21 ‘‘(2) REPORTS BY THE SECRETARY.—Not later 

22 than 1 year after the date on which all demonstration 

23 programs under this section are concluded, the Sec24 retary shall submit to Congress a final report that de-
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† HR 2642 EAS 

1 scribes the results and findings of all reports and 

2 evaluations carried out under this section. 

3 ‘‘(f) ANNUAL REVIEW.—The Secretary may conduct an 

4 annual review of the financial records of a qualified enti5 ty— 

6 ‘‘(1) to assess the financial soundness of the 

7 qualified entity; and 

8 ‘‘(2) to determine the use of grant funds made 

9 available to the qualified entity under this section. 

10 ‘‘(g) REGULATIONS.—In carrying out this section, the 

11 Secretary may promulgate regulations to ensure that the 

12 program includes provisions for— 

13 ‘‘(1) the termination of demonstration programs; 

14 ‘‘(2) control of the reserve funds in the case of 

15 such a termination; 

16 ‘‘(3) transfer of demonstration programs to other 

17 qualified entities; and 

18 ‘‘(4) remissions from a reserve fund to the Sec19 retary in a case in which a demonstration program 

20 is terminated without transfer to a new qualified en21 tity. 

22 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out this section 

24 $5,000,000 for each of fiscal years 2013 through 2018. 
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† HR 2642 EAS 

1 ‘‘SEC. 3429. FARMER LOAN PILOT PROJECTS. 

2 ‘‘(a) IN GENERAL.—The Secretary may conduct pilot 

3 projects of limited scope and duration that are consistent 

4 with this subtitle to evaluate processes and techniques that 

5 may improve the efficiency and effectiveness of the pro6 grams carried out under this subtitle 

7 ‘‘(b) NOTIFICATION.—The Secretary shall— 

8 ‘‘(1) not less than 60 days before the date on 

9 which the Secretary initiates a pilot project under 

10 subsection (a), submit notice of the proposed pilot 

11 project to the Committee on Agriculture of the House 

12 of Representatives and the Committee on Agriculture, 

13 Nutrition, and Forestry of the Senate; and 

14 ‘‘(2) consider any recommendations or feedback 

15 provided to the Secretary in response to the notice 

16 provided under paragraph (1). 

17 ‘‘SEC. 3430. PROHIBITION ON USE OF LOANS FOR CERTAIN 

18 PURPOSES. 

19 ‘‘(a) IN GENERAL.—Except as provided in subsections 

20 (b) and (c), the Secretary may not approve a loan under 

21 this subtitle to drain, dredge, fill, level, or otherwise manip22 ulate a wetland (as defined in section 1201(a) of the Food 

23 Security Act of 1985 (16 U.S.C. 3801(a))), or to engage 

24 in any activity that results in impairing or reducing the 

25 flow, circulation, or reach of water. 
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† HR 2642 EAS 

1 ‘‘(b) PRIOR ACTIVITY.—Subsection (a) does not apply 

2 in the case of— 

3 ‘‘(1) an activity related to the maintenance of a 

4 previously converted wetland; or 

5 ‘‘(2) an activity that had already commenced be6 fore November 28, 1990. 

7 ‘‘(c) EXCEPTION.—This section shall not apply to a 

8 loan made or guaranteed under this subtitle for a utility 

9 line. 

10 ‘‘SEC. 3431. AUTHORIZATION OF APPROPRIATIONS AND AL11 LOCATION OF FUNDS. 

12 ‘‘(a) AUTHORIZATION FOR LOANS.— 

13 ‘‘(1) IN GENERAL.—The Secretary may make or 

14 guarantee loans under chapters 1 and 2 from the Ag15 ricultural Credit Insurance Fund for not more than 

16 $4,226,000,000 for each of fiscal years 2013 through 

17 2018, of which, for each fiscal year— 

18 ‘‘(A) $1,200,000,000 shall be for direct 

19 loans, of which— 

20 ‘‘(i) $350,000,000 shall be for farm 

21 ownership loans; and 

22 ‘‘(ii) $850,000,000 shall be for oper23 ating loans; and 

24 ‘‘(B) $3,026,000,000 shall be for guaranteed 

25 loans, of which— 
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† HR 2642 EAS 

1 ‘‘(i) $1,000,000,000 shall be for guar2 antees of farm ownership loans; and 

3 ‘‘(ii) $2,026,000,000 shall be for guar4 antees of operating loans. 

5 ‘‘(2) BEGINNING FARMERS.— 

6 ‘‘(A) DIRECT LOANS.— 

7 ‘‘(i) FARM OWNERSHIP LOANS.— 

8 ‘‘(I) IN GENERAL.—Of the 

9 amounts made available under para10 graph (1) for direct farm ownership 

11 loans, the Secretary shall reserve an 

12 amount that is not less than 75 percent 

13 of the total amount for qualified begin14 ning farmers. 

15 ‘‘(II) DOWN PAYMENT LOANS; 

16 JOINT FINANCING ARRANGEMENTS.—Of 

17 the amounts reserved for a fiscal year 

18 under subclause (I), the Secretary shall 

reserve an amount not less than 2 19 ⁄3 of 

20 the amount for the down payment loan 

21 program under section 3107 and joint 

22 financing arrangements under section 

23 3105 until April 1 of the fiscal year. 

24 ‘‘(ii) OPERATING LOANS.—Of the 

25 amounts made available under paragraph 
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† HR 2642 EAS 

1 (1) for direct operating loans, the Secretary 

2 shall reserve for qualified beginning farmers 

3 for each of fiscal years 2013 through 2018, 

4 an amount that is not less than 50 percent 

5 of the total amount. 

6 ‘‘(iii) FUNDS RESERVED UNTIL SEP7 TEMBER 1.—Except as provided in clause 

8 (i)(II), funds reserved for qualified begin9 ning farmers under this subparagraph for a 

10 fiscal year shall be reserved only until Sep11 tember 1 of the fiscal year. 

12 ‘‘(B) GUARANTEED LOANS.— 

13 ‘‘(i) FARM OWNERSHIP LOANS.—Of the 

14 amounts made available under paragraph 

15 (1) for guarantees of farm ownership loans, 

16 the Secretary shall reserve an amount that 

17 is not less than 40 percent of the total 

18 amount for qualified beginning farmers. 

19 ‘‘(ii) OPERATING LOANS.—Of the 

20 amounts made available under paragraph 

21 (1) for guarantees of operating loans, the 

22 Secretary shall reserve 40 percent for quali23 fied beginning farmers. 

24 ‘‘(iii) FUNDS RESERVED UNTIL APRIL

25 1.—Funds reserved for qualified beginning 
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† HR 2642 EAS 

1 farmers under this subparagraph for a fis2 cal year shall be reserved only until April 

3 1 of the fiscal year. 

4 ‘‘(C) RESERVED FUNDS FOR ALL QUALIFIED

5 BEGINNING FARMERS.—If a qualified beginning 

6 farmer meets the eligibility criteria for receiving 

7 a direct or guaranteed loan under section 3101, 

8 3107, or 3201, the Secretary shall make or guar9 antee the loan if sufficient funds reserved under 

10 this paragraph are available to make or guar11 antee the loan. 

12 ‘‘(3) TRANSFER FOR DOWN PAYMENT LOANS.— 

13 ‘‘(A) IN GENERAL.—Subject to subpara14 graph (B)— 

15 ‘‘(i) beginning on August 1 of each fis16 cal year, the Secretary shall use available 

17 unsubsidized guaranteed farm operating 

18 loan funds to provide direct farm ownership 

19 loans approved by the Secretary to qualified 

20 beginning farmers under the down payment 

21 loan program established under section 

22 3107, if sufficient direct farm ownership 

23 loan funds are not otherwise available; and 

24 ‘‘(ii) beginning on September 1 of each 

25 fiscal year, the Secretary shall use available 
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† HR 2642 EAS 

1 unsubsidized guaranteed farm operating 

2 loan funds to provide direct farm ownership 

3 loans approved by the Secretary to qualified 

4 beginning farmers, if sufficient direct farm 

5 ownership loan funds are not otherwise 

6 available. 

7 ‘‘(B) LIMITATION.—The Secretary shall 

8 limit the transfer of funds under subparagraph 

9 (A) so that all guaranteed farm operating loans 

10 that have been approved, or will be approved, by 

11 the Secretary during the fiscal year will be made 

12 to the extent of available amounts. 

13 ‘‘(4) TRANSFER FOR CREDIT SALES OF FARM IN14 VENTORY PROPERTY.— 

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graphs (B) and (C), beginning on September 1 

17 of each fiscal year, the Secretary may use avail18 able funds made available under chapter 3 for 

19 the fiscal year to fund the credit sale of farm real 

20 estate in the inventory of the Secretary. 

21 ‘‘(B) SUPPLEMENTAL APPROPRIATIONS.— 

22 The transfer authority provided under subpara23 graph (A) shall not apply to any funds made 

24 available to the Secretary for any fiscal year 
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† HR 2642 EAS 

1 under an Act making supplemental appropria2 tions. 

3 ‘‘(C) LIMITATION.—The Secretary shall 

4 limit the transfer of funds under subparagraph 

5 (A) so that all emergency disaster loans that 

6 have been approved, or will be approved, by the 

7 Secretary during the fiscal year will be made to 

8 the extent of available amounts. 

9 ‘‘(5) AVAILABILITY OF FUNDS.—Funds made 

10 available to carry out this subtitle shall remain avail11 able until expended. 

12 ‘‘(b) COST PROJECTIONS.— 

13 ‘‘(1) IN GENERAL.—The Secretary shall develop 

14 long-term cost projections for loan program author15 izations required under subsection (a). 

16 ‘‘(2) ANALYSIS.—Each projection under para17 graph (1) shall include analyses of— 

18 ‘‘(A) the long-term costs of the lending levels 

19 that the Secretary requests to be authorized 

20 under subsection (a); and 

21 ‘‘(B) the long-term costs for increases in 

22 lending levels beyond those requested to be au23 thorized, based on increments of $10,000,000 or 

24 such other levels as the Secretary considers ap25 propriate. 
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† HR 2642 EAS 

1 ‘‘(3) SUBMISSION TO CONGRESS.—The Secretary 

2 shall submit to the Committees on Agriculture and 

3 Appropriations of the House of Representatives and 

4 the Committees on Agriculture, Nutrition, and For5 estry and Appropriations of the Senate reports con6 taining the long-term cost projections for the 3-year 

7 period beginning with fiscal year 1983 and each 3- 

8 year period thereafter at the time the requests for au9 thorizations for those periods are submitted to Con10 gress. 

11 ‘‘(c) LOW-INCOME, LIMITED-RESOURCE BOR12 ROWERS.— 

13 ‘‘(1) RESERVE.—Notwithstanding any other pro14 vision of law, not less than 25 percent of the loans for 

15 farm ownership purposes for each fiscal year under 

16 this subtitle shall be for low-income, limited-resource 

17 borrowers. 

18 ‘‘(2) NOTIFICATION.—The Secretary shall pro19 vide notification to farm borrowers under this subtitle 

20 in the normal course of loan making and loan serv21 icing operations, of the provisions of this subtitle re22 lating to low-income, limited-resource borrowers and 

23 the procedures by which persons may apply for loans 

24 under the low-income, limited-resource borrower pro25 gram.’’. 
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† HR 2642 EAS 

1 Subtitle B—Miscellaneous 

2 SEC. 5101. STATE AGRICULTURAL MEDIATION PROGRAMS. 

3 Section 506 of the Agricultural Credit Act of 1987 (7 

4 U.S.C. 5106) is amended by striking ‘‘2015’’ and inserting 

5 ‘‘2018’’. 

6 SEC. 5102. LOANS TO PURCHASERS OF HIGHLY 

7 FRACTIONATED LAND. 

8 (a) IN GENERAL.—The first sentence of Public Law 

9 91–229 (25 U.S.C. 488) is amended— 

10 (1) in subsection (a), in the first sentence, by 

11 striking ‘‘loans from’’ and all that follows through 

12 ‘‘1929)’’ and inserting ‘‘direct loans in a manner con13 sistent with direct loans pursuant to chapter 4 of sub14 title A of the Consolidated Farm and Rural Develop15 ment Act’’; 

16 (2) in subsection (b)(1)— 

17 (A) by striking ‘‘pursuant to section 205(c) 

18 of the Indian Land Consolidation Act (25 U.S.C. 

19 2204(c))’’; and 

20 (B) by inserting ‘‘or to intermediaries in 

21 order to establish revolving loan funds for the 

22 purchase of highly fractionated land under that 

23 section’’ before the period at the end; and 

24 (3) by adding at the end the following: 
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1 ‘‘(c) CONSULTATION REQUIRED.—In determining reg2 ulations and procedures to define eligible purchasers of 

3 highly fractionated land under this section, the Secretary 

4 of Agriculture shall consult with the Secretary of the Inte5 rior.’’. 

6 SEC. 5103. REMOVAL OF DUPLICATIVE APPRAISALS. 

7 Notwithstanding any other law (including regula8 tions), in making loans under the first section of Public 

9 Law 91–229 (25 U.S.C. 488), borrowers who are Indian 

10 tribes, members of Indian tribes, or tribal corporations shall 

11 only be required to obtain 1 appraisal under an appraisal 

12 standard recognized as of the date of enactment of this Act 

13 by the Secretary or the Secretary of the Interior. 

14 SEC. 5104. COMPENSATION DISCLOSURE BY FARM CREDIT 

15 SYSTEM INSTITUTIONS. 

16 (a) FINDINGS.—Congress finds that — 

17 (1) the reasonable disclosure to stockholders by 

18 Farm Credit System institutions regarding the com19 pensation of Farm Credit System institution senior 

20 officers is beneficial to stockholders’ understanding of 

21 the operation of their institutions; 

22 (2) transparency regarding compensation prac23 tices reinforces the cooperative nature of Farm Credit 

24 System institutions; 
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1 (3) the unique cooperative structure of the Farm 

2 Credit System should be considered when promul3 gating rules; 

4 (4) the participation of stockholders in the elec5 tion of the boards of directors of Farm Credit System 

6 institutions provides stockholders the opportunity to 

7 participate in the management of their institutions; 

8 (5) as representatives of stockholders, the boards 

9 of directors of Farm Credit System institutions im10 portantly establish and oversee the compensation 

11 practices of Farm Credit System institutions to en12 sure the safe and sound operation of those institu13 tions; and 

14 (6) any regulation should strengthen and not 

15 hinder the ability of Farm Credit System boards of 

16 directors to oversee compensation practices. 

17 (b) IMPLEMENTATION.—Not later than 60 days after 

18 the date of enactment of this Act, the Farm Credit Adminis19 tration shall review its rules to reflect Congressional intent 

20 that a primary responsibility of the boards of directors of 

21 Farm Credit System institutions, as elected representatives 

22 of their stockholders, is to oversee compensation practices. 
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1 TITLE VI—RURAL DEVELOPMENT 

2 Subtitle A—Reorganization of the 

3 Consolidated Farm and Rural 

4 Development Act 

5 SEC. 6001. REORGANIZATION OF THE CONSOLIDATED FARM 

6 AND RURAL DEVELOPMENT ACT. 

7 Title III of the Agricultural Act of 1961 (7 U.S.C. 

8 1921 et seq.) is amended to read as follows: 

9 ‘‘TITLE III—AGRICULTURAL 

10 CREDIT 

11 ‘‘SEC. 3001. SHORT TITLE; TABLE OF CONTENTS. 

12 ‘‘(a) SHORT TITLE.—This title may be cited as the 

13 ‘Consolidated Farm and Rural Development Act’. 

14 ‘‘(b) TABLE OF CONTENTS.—The table of contents of 

15 this title is as follows: 

‘‘TITLE III—AGRICULTURAL CREDIT 

‘‘Sec. 3001. Short title; table of contents. 

‘‘Sec. 3002. Definitions. 

‘‘Subtitle A—Farmer Loans, Servicing, and Other Assistance 

‘‘CHAPTER 1—FARM OWNERSHIP LOANS

‘‘Sec. 3101. Farm ownership loans. 

‘‘Sec. 3102. Purposes of loans. 

‘‘Sec. 3103. Conservation loan and loan guarantee program. 

‘‘Sec. 3104. Loan maximums. 

‘‘Sec. 3105. Repayment requirements for farm ownership loans. 

‘‘Sec. 3106. Limited-resource loans. 

‘‘Sec. 3107. Downpayment loan program. 

‘‘Sec. 3108. Beginning farmer and socially disadvantaged farmer contract land 

sales program. 

‘‘CHAPTER 2—OPERATING LOANS

‘‘Sec. 3201. Operating loans. 

‘‘Sec. 3202. Purposes of loans. 

‘‘Sec. 3203. Restrictions on loans. 
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‘‘Sec. 3204. Terms of loans. 

‘‘CHAPTER 3—EMERGENCY LOANS

‘‘Sec. 3301. Emergency loans. 

‘‘Sec. 3302. Purposes of loans. 

‘‘Sec. 3303. Terms of loans. 

‘‘Sec. 3304. Production losses. 

‘‘CHAPTER 4—GENERAL FARMER LOAN PROVISIONS

‘‘Sec. 3401. Agricultural Credit Insurance Fund. 

‘‘Sec. 3402. Guaranteed farmer loans. 

‘‘Sec. 3403. Provision of information to borrowers. 

‘‘Sec. 3404. Notice of loan service programs. 

‘‘Sec. 3405. Planting and production history guidelines. 

‘‘Sec. 3406. Special conditions and limitations on loans. 

‘‘Sec. 3407. Graduation of borrowers. 

‘‘Sec. 3408. Debt adjustment and credit counseling. 

‘‘Sec. 3409. Security servicing. 

‘‘Sec. 3410. Contracts on loan security properties. 

‘‘Sec. 3411. Debt restructuring and loan servicing. 

‘‘Sec. 3412. Relief for mobilized military reservists from certain agricultural loan 

obligations. 

‘‘Sec. 3413. Interest rate reduction program. 

‘‘Sec. 3414. Homestead property. 

‘‘Sec. 3415. Transfer of inventory land. 

‘‘Sec. 3416. Target participation rates. 

‘‘Sec. 3417. Compromise or adjustment of debts or claims by guaranteed lender. 

‘‘Sec. 3418. Waiver of mediation rights by borrowers. 

‘‘Sec. 3419. Borrower training. 

‘‘Sec. 3420. Loan assessments. 

‘‘Sec. 3421. Supervised credit. 

‘‘Sec. 3422. Market placement. 

‘‘Sec. 3423. Recordkeeping of loans by gender of borrower. 

‘‘Sec. 3424. Crop insurance requirement. 

‘‘Sec. 3425. Loan and loan servicing limitations. 

‘‘Sec. 3426. Short form certification of farm program borrower compliance. 

‘‘Sec. 3427. Underwriting forms and standards. 

‘‘Sec. 3428. Beginning farmer individual development accounts pilot program. 

‘‘Sec. 3429. Farmer loan pilot projects. 

‘‘Sec. 3430. Prohibition on use of loans for certain purposes. 

‘‘Sec. 3431. Authorization of appropriations and allocation of funds. 

‘‘Subtitle B—Rural Development 

‘‘CHAPTER 1—RURAL COMMUNITY PROGRAMS

‘‘Sec. 3501. Water and waste disposal loans, loan guarantees, and grants. 

‘‘Sec. 3502. Community facilities loans, loan guarantees, and grants. 

‘‘Sec. 3503. Health care services. 

‘‘CHAPTER 2—RURAL BUSINESS AND COOPERATIVE DEVELOPMENT

‘‘Sec. 3601. Business programs. 

‘‘Sec. 3602. Rural Business Investment Program. 
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‘‘CHAPTER 3—GENERAL RURAL DEVELOPMENT PROVISIONS

‘‘Sec. 3701. General provisions for loans and grants. 

‘‘Sec. 3702. Strategic economic and community development. 

‘‘Sec. 3703. Guaranteed rural development loans. 

‘‘Sec. 3704. Rural Development Insurance Fund. 

‘‘Sec. 3705. Rural economic area partnership zones. 

‘‘Sec. 3706. Streamlining applications and improving accessibility of rural development programs. 

‘‘Sec. 3707. State Rural Development Partnership. 

‘‘CHAPTER 4—DELTA REGIONAL AUTHORITY

‘‘Sec. 3801. Definitions. 

‘‘Sec. 3802. Delta Regional Authority. 

‘‘Sec. 3803. Economic and community development grants. 

‘‘Sec. 3804. Supplements to Federal grant programs. 

‘‘Sec. 3805. Local development districts; certification and administrative expenses. 

‘‘Sec. 3806. Distressed counties and areas and nondistressed counties. 

‘‘Sec. 3807. Development planning process. 

‘‘Sec. 3808. Program development criteria. 

‘‘Sec. 3809. Approval of development plans and projects. 

‘‘Sec. 3810. Consent of States. 

‘‘Sec. 3811. Records. 

‘‘Sec. 3812. Annual report. 

‘‘Sec. 3813. Authorization of appropriations. 

‘‘Sec. 3814. Termination of authority. 

‘‘CHAPTER 5—NORTHERN GREAT PLAINS REGIONAL AUTHORITY

‘‘Sec. 3821. Definitions. 

‘‘Sec. 3822. Northern Great Plains Regional Authority. 

‘‘Sec. 3823. Interstate cooperation for economic opportunity and efficiency. 

‘‘Sec. 3824. Economic and community development grants. 

‘‘Sec. 3825. Supplements to Federal grant programs. 

‘‘Sec. 3826. Multistate and local development districts and organizations and 

Northern Great Plains Inc. 

‘‘Sec. 3827. Distressed counties and areas and nondistressed counties. 

‘‘Sec. 3828. Development planning process. 

‘‘Sec. 3829. Program development criteria. 

‘‘Sec. 3830. Approval of development plans and projects. 

‘‘Sec. 3831. Consent of States. 

‘‘Sec. 3832. Records. 

‘‘Sec. 3833. Annual report. 

‘‘Sec. 3834. Authorization of appropriations. 

‘‘Sec. 3835. Termination of authority. 

‘‘Subtitle C—General Provisions 

‘‘Sec. 3901. Full faith and credit. 

‘‘Sec. 3902. Purchase and sale of guaranteed portions of loans. 

‘‘Sec. 3903. Administration. 

‘‘Sec. 3904. Loan moratorium and policy on foreclosures. 

‘‘Sec. 3905. Oil and gas royalty payments on loans. 

‘‘Sec. 3906. Taxation. 

‘‘Sec. 3907. Conflicts of interest. 
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‘‘Sec. 3908. Loan summary statements. 

‘‘Sec. 3909. Certified lenders program. 

‘‘Sec. 3910. Loans to resident aliens. 

‘‘Sec. 3911. Expedited clearing of title to inventory property. 

‘‘Sec. 3912. Transfer of land to Secretary. 

‘‘Sec. 3913. Competitive sourcing limitations. 

‘‘Sec. 3914. Regulations. 

1 ‘‘SEC. 3002. DEFINITIONS. 

2 ‘‘In this title (unless the context otherwise requires): 

3 ‘‘(1) ABLE TO OBTAIN CREDIT ELSEWHERE.— 

4 The term ‘able to obtain credit elsewhere’ means able 

5 to obtain a loan from a production credit association, 

6 a Federal land bank, or other responsible cooperative 

7 or private credit source (or, in the case of a borrower 

8 under section 3106, the borrower may be able to ob9 tain a loan under section 3101) at reasonable rates 

10 and terms, taking into consideration prevailing pri11 vate and cooperative rates and terms in the commu12 nity in or near which the applicant resides for loans 

13 for similar purposes and periods of time. 

14 ‘‘(2) AGRICULTURAL CREDIT INSURANCE

15 FUND.—The term ‘Agricultural Credit Insurance 

16 Fund’ means the fund established under section 3401. 

17 ‘‘(3) APPROVED LENDER.—The term ‘approved 

18 lender’ means— 

19 ‘‘(A) a lender approved prior to October 28, 

20 1992, by the Secretary under the approved lender 

21 program established by exhibit A to subpart B of 
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1 part 1980 of title 7, Code of Federal Regulations 

2 (as in effect on January 1, 1991); or 

3 ‘‘(B) a lender certified under section 3909. 

4 ‘‘(4) AQUACULTURE.—The term ‘aquaculture’ 

5 means the culture or husbandry of aquatic animals or 

6 plants by private industry for commercial purposes, 

7 including the culture and growing of fish by private 

8 industry for the purpose of creating or augmenting 

9 publicly owned and regulated stocks of fish. 

10 ‘‘(5) BEGINNING FARMER.—The term ‘beginning 

11 farmer’ has the meaning given the term by the Sec12 retary. 

13 ‘‘(6) BORROWER.— 

14 ‘‘(A) IN GENERAL.—Except as provided in 

15 subparagraph (B), the term ‘borrower’ means an 

16 individual or entity who has an outstanding ob17 ligation to the Secretary under any loan made 

18 or guaranteed under this title, without regard to 

19 whether the loan has been accelerated. 

20 ‘‘(B) EXCLUSIONS.—The term ‘borrower’ 

21 does not include an individual or entity all of 

22 whose loans and accounts have been foreclosed on 

23 or liquidated, voluntarily or otherwise. 

24 ‘‘(7) COUNTY COMMITTEE.—The term ‘county 

25 committee’ means the appropriate county committee 
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1 established under section 8(b)(5) of the Soil Conserva2 tion and Domestic Allotment Act (16 U.S.C. 

3 590h(b)(5)). 

4 ‘‘(8) DEBT FORGIVENESS.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B), the term ‘debt forgiveness’ 

7 means reducing or terminating a loan made or 

8 guaranteed under this title, in a manner that re9 sults in a loss to the Secretary, through— 

10 ‘‘(i) writing down or writing off a loan 

11 under section 3411; 

12 ‘‘(ii) compromising, adjusting, reduc13 ing, or charging-off a debt or claim under 

14 section 3903; 

15 ‘‘(iii) paying a loss on a guaranteed 

16 loan under this title; or 

17 ‘‘(iv) discharging a debt as a result of 

18 bankruptcy. 

19 ‘‘(B) LOAN RESTRUCTURING.—The term 

20 ‘debt forgiveness’ does not include consolidation, 

21 rescheduling, reamortization, or deferral. 

22 ‘‘(9) DEPARTMENT.—The term ‘Department’ 

23 means the Department of Agriculture. 
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1 ‘‘(10) DIRECT LOAN.—The term ‘direct loan’ 

2 means a loan made by the Secretary from appro3 priated funds. 

4 ‘‘(11) ENTITY.—The term ‘entity’ means a cor5 poration, farm cooperative, partnership, joint oper6 ation, governmental entity, or other legal organiza7 tion, as determined by the Secretary. 

8 ‘‘(12) FARM.—The term ‘farm’ means an oper9 ation involved in— 

10 ‘‘(A) the production of an agricultural com11 modity; 

12 ‘‘(B) ranching; or 

13 ‘‘(C) aquaculture, in a controlled environ14 ment. 

15 ‘‘(13) FARMER.—The term ‘farmer’ means an in16 dividual or entity engaged primarily and directly 

17 in— 

18 ‘‘(A) the production of an agricultural com19 modity; 

20 ‘‘(B) ranching; or 

21 ‘‘(C) aquaculture, in a controlled environ22 ment. 

23 ‘‘(14) FARMER PROGRAM LOAN.—The term 

24 ‘farmer program loan’ means— 
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1 ‘‘(A) a farm ownership loan under section 

2 3101; 

3 ‘‘(B) a conservation loan under section 

4 3103; 

5 ‘‘(C) an operating loan under section 3201; 

6 ‘‘(D) an emergency loan under section 3301; 

7 ‘‘(E) an economic emergency loan under 

8 section 202 of the Emergency Agricultural Credit 

9 Adjustment Act of 1978 (7 U.S.C. prec. 1961 

10 note; Public Law 95–334); 

11 ‘‘(F) a loan for a farm service building 

12 under section 502 of the Housing Act of 1949 (42 

13 U.S.C. 1472); 

14 ‘‘(G) an economic opportunity loan under 

15 section 602 of the Economic Opportunity Act of 

16 1964 (Public Law 88–452; 42 U.S.C. 2942 note) 

17 (as it existed before the amendment made by sec18 tion 683(a) of the Omnibus Budget Reconcili19 ation Act of 1981 (Public Law 97–35; 95 Stat. 

20 519)); 

21 ‘‘(H) a softwood timber loan under section 

22 608 of the Agricultural Programs Adjustment 

23 Act of 1984 (7 U.S.C. 1981 note; Public Law 

24 98–258); or 
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1 ‘‘(I) any other loan described in section 

2 343(a)(10) of this title (as it existed before the 

3 amendment made by section 2 of the Agriculture 

4 Reform, Food, and Jobs Act of 2013) that is out5 standing on the date of enactment of that Act. 

6 ‘‘(15) FARM SERVICE AGENCY.—The term ‘Farm 

7 Service Agency’ means the offices of the Farm Service 

8 Agency to which the Secretary delegates responsibility 

9 to carry out this title. 

10 ‘‘(16) GOVERNMENTAL ENTITY.—The term ‘gov11 ernmental entity’ means any agency of a State or a 

12 unit of local government of a State, or subdivision 

13 thereof. 

14 ‘‘(17) GUARANTEE.—The term ‘guarantee’ means 

15 guaranteeing the payment of a loan originated, held, 

16 and serviced by a private financial agency, or lender, 

17 approved by the Secretary. 

18 ‘‘(18) HIGHLY ERODIBLE LAND.—The term 

19 ‘highly erodible land’ has the meaning given the term 

20 in section 1201(a) of the Food Security Act of 1985 

21 (16 U.S.C. 3801(a)). 

22 ‘‘(19) HOMESTEAD RETENTION.—The term 

23 ‘homestead retention’ means homestead retention as 

24 authorized under section 3414. 
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1 ‘‘(20) INDIAN TRIBE.—The term ‘Indian tribe’ 

2 means a Federal or State-recognized Indian tribe or 

3 other federally recognized Indian tribal group (in4 cluding a Tribal College or University, as defined in 

5 section 316(b) of the Higher Education Act of 1965 

6 (20 U.S.C. 1059c(b)). 

7 ‘‘(21) LOAN SERVICE PROGRAM.—The term ‘loan 

8 service program’ means, with respect to a farmer pro9 gram loan borrower, a primary loan service program 

10 or a homestead retention program. 

11 ‘‘(22) NATURAL OR MAJOR DISASTER OR EMER12 GENCY.—The term ‘natural or major disaster or 

13 emergency’ means— 

14 ‘‘(A) a disaster due to nonmanmade causes 

15 declared by the Secretary; or 

16 ‘‘(B) a major disaster or emergency des17 ignated by the President under the Robert T. 

18 Stafford Disaster Relief and Emergency Assist19 ance Act (42 U.S.C. 5121 et seq.). 

20 ‘‘(23) PRIMARY LOAN SERVICE PROGRAM.—The 

21 term ‘primary loan service program’ means, with re22 spect to a farmer program loan— 

23 ‘‘(A) loan consolidation, rescheduling, or re24 amortization; 
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1 ‘‘(B) interest rate reduction, including the 

2 use of the limited resource program; 

3 ‘‘(C) loan restructuring, including deferral, 

4 set aside, or writing down of the principal or ac5 cumulated interest charges, or both, of the loan; 

6 or 

7 ‘‘(D) any combination of actions described 

8 in subparagraphs (A), (B), and (C). 

9 ‘‘(24) PRIME FARMLAND.—The term ‘prime 

10 farmland’ means prime farmland and unique farm11 land (as defined in subsections (a) and (b) of section 

12 657.5 of title 7, Code of Federal Regulations (1980)). 

13 ‘‘(25) PROJECT.—For purposes of section 3501, 

14 the term ‘project’ includes a facility providing central 

15 service or a facility serving an individual property, 

16 or both. 

17 ‘‘(26) QUALIFIED BEGINNING FARMER.—The 

18 term ‘qualified beginning farmer’ means an appli19 cant, regardless of whether the applicant is partici20 pating in a program under section 3107, who— 

21 ‘‘(A) is eligible for assistance under subtitle 

22 A; 

23 ‘‘(B) has not operated a farm, or has oper24 ated a farm for not more than 10 years; 
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1 ‘‘(C) in the case of a cooperative, corpora2 tion, partnership, or joint operation, has mem3 bers, stockholders, partners, or joint operators 

4 who are all related to each other by blood or 

5 marriage; 

6 ‘‘(D) in the case of a farmer who is the 

7 owner and operator of a farm— 

8 ‘‘(i) in the case of a loan made to an 

9 individual, individually or with the imme10 diate family of the applicant— 

11 ‘‘(I) materially and substantially 

12 participates in the operation of the 

13 farm; and 

14 ‘‘(II) provides substantial day-to15 day labor and management of the 

16 farm, consistent with the practices in 

17 the State or county in which the farm 

18 is located; or 

19 ‘‘(ii)(I) in the case of a loan made to 

20 a cooperative, corporation, partnership, or 

21 joint operation, has members, stockholders, 

22 partners, or joint operators who materially 

23 and substantially participate in the oper24 ation of the farm; and 
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1 ‘‘(II) in the case of a loan made to a 

2 corporation, has stockholders who all qual3 ify individually as beginning farmers; 

4 ‘‘(E) in the case of an applicant seeking to 

5 become an owner and operator of a farm— 

6 ‘‘(i) in the case of a loan made to an 

7 individual, individually or with the imme8 diate family of the applicant, will— 

9 ‘‘(I) materially and substantially 

10 participate in the operation of the 

11 farm; and 

12 ‘‘(II) provide substantial day-to13 day labor and management of the 

14 farm, consistent with the practices in 

15 the State or county in which the farm 

16 is located; or 

17 ‘‘(ii)(I) in the case of a loan made to 

18 a cooperative, corporation, partnership, or 

19 joint operation, will have members, stock20 holders, partners, or joint operators who 

21 will materially and substantially partici22 pate in the operation of the farm; and 

23 ‘‘(II) in the case of a loan made to a 

24 corporation, has stockholders who will all 

25 qualify individually as beginning farmers; 
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1 ‘‘(F) agrees to participate in such loan as2 sessment, borrower training, and financial man3 agement programs as the Secretary may require; 

4 ‘‘(G)(i) does not own farm land; or 

5 ‘‘(ii) directly or through interests in family 

6 farm corporations, owns farm land, the aggre7 gate acreage of which does not exceed 30 percent 

8 of the average acreage of the farms, as the case 

9 may be, in the county in which the farm oper10 ations of the applicant are located, as reported 

11 in the most recent census of agriculture taken in 

12 accordance with the Census of Agriculture Act of 

13 1997 (7 U.S.C. 2204g et seq.), except that this 

14 subparagraph shall not apply to a loan made or 

15 guaranteed under chapter 2 of subtitle A; and 

16 ‘‘(H) demonstrates that the available re17 sources of the applicant and any spouse of the 

18 applicant are not sufficient to enable the appli19 cant to farm on a viable scale. 

20 ‘‘(27) RECREATIONAL PURPOSE.—For purposes 

21 of section 3410, the term ‘recreational purpose’ has 

22 the meaning provided by the Secretary, but shall in23 clude hunting. 

24 ‘‘(28) RURAL AND RURAL AREA.— 
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1 ‘‘(A) IN GENERAL.—Subject to any deter2 mination made under subparagraph (B), the 

3 terms ‘rural’ and ‘rural area’ mean any area 

4 other than— 

5 ‘‘(i) a city or town that has a popu6 lation of greater than 50,000 inhabitants; 

7 and 

8 ‘‘(ii) any urbanized area contiguous 

9 and adjacent to a city or town described in 

10 clause (i). 

11 ‘‘(B) DETERMINATION OF AREAS RURAL IN

12 CHARACTER.— 

13 ‘‘(i) IN GENERAL.—If part of an area 

14 described in subparagraph (A)(ii) was eligi15 ble under the definitions of the terms ‘rural’ 

16 and ‘rural area’ in section 343 (as in effect 

17 on the day before the date of enactment of 

18 the Agriculture Reform, Food, and Jobs Act 

19 of 2013) for community facility, water and 

20 waste disposal, and broadband programs, 

21 that area shall remain eligible unless the 

22 Secretary, acting through the Under Sec23 retary for Rural Development (referred to 

24 in this subparagraph as the ‘Under Sec25 retary’), determines the area is no longer 
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† HR 2642 EAS 

1 rural, based on the criteria described in 

2 clause (iii). 

3 ‘‘(ii) OTHER AREAS.—On petition of a 

4 unit of local government in an urbanized 

5 area described in subparagraph (A)(ii), or 

6 on the initiative of the Under Secretary, the 

7 Under Secretary may determine that part 

8 of an area is rural, based on the criteria de9 scribed in clause (iii). 

10 ‘‘(iii) CRITERIA.—In making a deter11 mination under clause (i), the Under Sec12 retary shall consider— 

13 ‘‘(I) population density; 

14 ‘‘(II) economic conditions, favor15 ing a rural determination for areas 

16 facing— 

17 ‘‘(aa) chronic unemployment 

18 in excess of statewide averages; 

19 ‘‘(bb) sudden loss of employ20 ment from natural disaster or the 

21 loss of a significant employer in 

22 the area; or 

23 ‘‘(cc) chronic poverty dem24 onstrated at the census block or 

25 county level compared to state-
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1 wide median household income; 

2 and 

3 ‘‘(III) commuting patterns, favor4 ing a rural determination for areas 

5 that can demonstrate higher propor6 tions of the population living and 

7 working in the area. 

8 ‘‘(iv) ADMINISTRATION.—In carrying 

9 out this subparagraph, the Under Secretary 

10 shall— 

11 ‘‘(I) not delegate the authority to 

12 carry out this subparagraph; 

13 ‘‘(II) not make a determination 

14 under clause (i) until the date that is 

15 3 years after the date of enactment of 

16 the Agriculture Reform, Food, and 

17 Jobs Act of 2013; 

18 ‘‘(III) consult with the applicable 

19 rural development State or regional di20 rector of the Department and the Gov21 ernor of the respective State; 

22 ‘‘(IV) provide an opportunity to 

23 appeal to the Under Secretary a deter24 mination made under this subpara25 graph; 
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1 ‘‘(V) release to the public notice of 

2 a petition filed or initiative of the 

3 Under Secretary under this subpara4 graph not later than 30 days after re5 ceipt of the petition or the commence6 ment of the initiative, as appropriate; 

7 ‘‘(VI) make a determination 

8 under this subparagraph not less than 

9 15 days, and not more than 60 days, 

10 after the release of the notice under 

11 subclause (V); and 

12 ‘‘(VII) submit to the Committee 

13 on Agriculture of the House of Rep14 resentatives and the Committee on Ag15 riculture, Nutrition, and Forestry of 

16 the Senate an annual report on actions 

17 taken to carry out this subparagraph. 

18 ‘‘(v) HAWAII AND PUERTO RICO.—Not19 withstanding any other provision of this 

20 subsection, within the areas of the County of 

21 Honolulu, Hawaii, and the Commonwealth 

22 of Puerto Rico, the Under Secretary may 

23 designate any part of the areas as a rural 

24 area if the Under Secretary determines that 

25 the part is not urban in character, other 
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1 than any area included in the Honolulu 

2 Census Designated Place or the San Juan 

3 Census Designated Place. 

4 ‘‘(C) EXCLUSIONS.—Notwithstanding any 

5 other provision of this paragraph, in deter6 mining which census blocks in an urbanized area 

7 are not in a rural area (as defined in this para8 graph), the Secretary shall exclude any cluster of 

9 census blocks that would otherwise be considered 

10 not in a rural area only because the cluster is 

11 adjacent to not more than 2 census blocks that 

12 are otherwise considered not in a rural area 

13 under this paragraph. 

14 ‘‘(29) SEASONED DIRECT LOAN BORROWER.—The 

15 term ‘seasoned direct loan borrower’ means a bor16 rower who could reasonably be expected to qualify for 

17 commercial credit using criteria determined by the 

18 Secretary. 

19 ‘‘(30) SECRETARY.—The term ‘Secretary’ means 

20 the Secretary of Agriculture. 

21 ‘‘(31) SOCIALLY DISADVANTAGED FARMER.—The 

22 term ‘socially disadvantaged farmer’ means a farmer 

23 who is a member of a socially disadvantaged group. 

24 ‘‘(32) SOCIALLY DISADVANTAGED GROUP.—The 

25 term ‘socially disadvantaged group’ means a group 
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1 whose members have been subjected to racial, ethnic, 

2 or gender prejudice because of the identity of the 

3 members as members of a group without regard to the 

4 individual qualities of the members. 

5 ‘‘(33) SOLAR ENERGY.—The term ‘solar energy’ 

6 means energy derived from sources (other than fossil 

7 fuels) and technologies included in the Federal Non8 nuclear Energy Research and Development Act of 

9 1974 (42 U.S.C. 5901 et seq.). 

10 ‘‘(34) STATE.—The term ‘State’ means— 

11 ‘‘(A) in this title (other than subtitle A), 

12 each of the 50 States, the Commonwealth of 

13 Puerto Rico, the Virgin Islands, Guam, Amer14 ican Samoa, the Commonwealth of the Northern 

15 Mariana Islands, the Republic of the Marshall 

16 Islands, the Federated States of Micronesia, and 

17 the Republic of Palau; and 

18 ‘‘(B) in subtitle A, each of the 50 States, the 

19 Commonwealth of Puerto Rico, the Virgin Is20 lands, Guam, American Samoa, the Common21 wealth of the Northern Mariana Islands, and, to 

22 the extent the Secretary determines it to be fea23 sible and appropriate, the Republic of the Mar24 shall Islands, the Federated States of Micronesia, 

25 and the Republic of Palau. 
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1 ‘‘(35) STATE BEGINNING FARMER PROGRAM.— 

2 The term ‘State beginning farmer program’ means 

3 any program that is— 

4 ‘‘(A) carried out by, or under contract with, 

5 a State; and 

6 ‘‘(B) designed to assist qualified beginning 

7 farmers in obtaining the financial assistance 

8 necessary to enter agriculture and establish via9 ble farming operations. 

10 ‘‘(36) VETERAN.—The term ‘veteran’ has the 

11 meaning given the term in section 101 of title 38, 

12 United States Code. 

13 ‘‘(37) WETLAND.—The term ‘wetland’ has the 

14 meaning given the term in section 1201(a) of the 

15 Food Security Act of 1985 (16 U.S.C. 3801(a)). 

16 ‘‘(38) WILDLIFE.—The term ‘wildlife’ means fish 

17 or wildlife (as defined in section 2(a) of the Lacey Act 

18 Amendments of 1981 (16 U.S.C. 3371(a))). 

19 ‘‘Subtitle B—Rural Development 

20 ‘‘CHAPTER 1—RURAL COMMUNITY 

21 PROGRAMS 

22 ‘‘SEC. 3501. WATER AND WASTE DISPOSAL LOANS, LOAN 

23 GUARANTEES, AND GRANTS. 

24 ‘‘(a) IN GENERAL.—The Secretary may make grants 

25 and loans and issue loan guarantees (including a guarantee 
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1 of a loan financed by the net proceeds of a bond described 

2 in section 142(a) of the Internal Revenue Code of 1986) to 

3 eligible entities described in subsection (b) for projects in 

4 rural areas that primarily serve rural residents to provide 

5 for— 

6 ‘‘(1) the development, storage, treatment, purifi7 cation, or distribution of water or the collection, 

8 treatment, or disposal of waste; and 

9 ‘‘(2) financial assistance and other aid in the 

10 planning of projects for purposes described in para11 graph (1). 

12 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for assist13 ance described in subsection (a) are— 

14 ‘‘(1) associations (including corporations not op15 erated for profit); 

16 ‘‘(2) Indian tribes; 

17 ‘‘(3) public and quasi-public agencies; and 

18 ‘‘(4) in the case of a project to attach an indi19 vidual property in a rural area to a water system to 

20 alleviate a health risk, an individual. 

21 ‘‘(c) LOAN AND LOAN GUARANTEE REQUIREMENTS.— 

22 In connection with loans made or guaranteed under this 

23 section, the Secretary shall require the applicant— 

24 ‘‘(1) to certify in writing, and the Secretary 

25 shall determine, that the applicant is unable to obtain 
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1 credit elsewhere to finance the actual needs of the ap2 plicant at reasonable rates and terms, taking into 

3 consideration prevailing private and cooperative rates 

4 and terms in the community in or near which the ap5 plicant resides for loans for similar purposes and pe6 riods of time; and 

7 ‘‘(2) to furnish an appropriate written financial 

8 statement. 

9 ‘‘(d) GRANT AMOUNTS.— 

10 ‘‘(1) MAXIMUM.—Except as otherwise provided 

11 in this subsection, the amount of any grant made 

12 under this section shall not exceed 75 percent of the 

13 development cost of the project for which the grant is 

14 provided. 

15 ‘‘(2) GRANT RATE.—The Secretary shall establish 

16 the grant rate for each project in conformity with reg17 ulations issued by the Secretary that shall provide for 

18 a graduated scale of grant rates that establish higher 

19 rates for projects in communities that have— 

20 ‘‘(A) lower community population; 

21 ‘‘(B) higher rates of outmigration; and 

22 ‘‘(C) lower income levels. 

23 ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants 

24 made under this section may be used to pay the local 

25 share requirements of another Federal grant-in-aid 
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1 program to the extent permitted under the law pro2 viding for the grant-in-aid program. 

3 ‘‘(e) SPECIAL GRANTS.— 

4 ‘‘(1) REVOLVING FUNDS FOR FINANCING WATER

5 AND WASTEWATER PROJECTS.— 

6 ‘‘(A) IN GENERAL.—The Secretary may 

7 make grants to qualified, nonprofit entities in 

8 rural areas to capitalize revolving funds for the 

9 purpose of providing financing to eligible enti10 ties for— 

11 ‘‘(i) predevelopment costs associated 

12 with proposed water and wastewater 

13 projects or with existing water and waste14 water systems; and 

15 ‘‘(ii) short-term costs incurred for re16 placement equipment, small-scale extension 

17 services, or other small capital projects that 

18 are not part of the regular operations and 

19 maintenance activities of existing water 

20 and wastewater systems. 

21 ‘‘(B) MAXIMUM AMOUNT OF FINANCING.— 

22 The amount of financing made to an eligible en23 tity under this paragraph shall not exceed— 

24 ‘‘(i) $100,000 for costs described in 

25 subparagraph (A)(i); and 
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1 ‘‘(ii) $100,000 for costs described in 

2 subparagraph (A)(ii). 

3 ‘‘(C) TERM.—The term of financing pro4 vided to an eligible entity under this paragraph 

5 shall not exceed 10 years. 

6 ‘‘(D) ADMINISTRATION.—The Secretary 

7 shall limit the amount of grant funds that may 

8 be used by a grant recipient for administrative 

9 costs incurred under this paragraph. 

10 ‘‘(E) ANNUAL REPORT.—A nonprofit entity 

11 receiving a grant under this paragraph shall 

12 submit to the Secretary an annual report that 

13 describes the number and size of communities 

14 served and the type of financing provided. 

15 ‘‘(F) AUTHORIZATION OF APPROPRIA16 TIONS.—There is authorized to be appropriated 

17 to carry out this paragraph $30,000,000 for each 

18 of fiscal years 2014 through 2018. 

19 ‘‘(2) EMERGENCY AND IMMINENT COMMUNITY

20 WATER ASSISTANCE PROGRAM.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall 

22 provide grants in accordance with this para23 graph to assist the residents of rural areas and 

24 small communities to secure adequate quantities 

25 of safe water— 
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1 ‘‘(i) after a significant decline in the 

2 quantity or quality of water available from 

3 the water supplies of the rural areas and 

4 small communities, or when such a decline 

5 is imminent; or 

6 ‘‘(ii) when repairs, partial replace7 ment, or significant maintenance efforts on 

8 established water systems would remedy— 

9 ‘‘(I) an acute or imminent short10 age of quality water; or 

11 ‘‘(II) a significant or imminent 

12 decline in the quantity or quality of 

13 water that is available. 

14 ‘‘(B) PRIORITY.—In carrying out subpara15 graph (A), the Secretary shall— 

16 ‘‘(i) give priority to projects described 

17 in subparagraph (A)(i); and 

18 ‘‘(ii) provide at least 70 percent of all 

19 grants under this paragraph to those 

20 projects. 

21 ‘‘(C) ELIGIBILITY.—To be eligible to obtain 

22 a grant under this paragraph, an applicant 

23 shall— 

24 ‘‘(i) be a public or private nonprofit 

25 entity; and 
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1 ‘‘(ii) in the case of a grant made under 

2 subparagraph (A)(i), demonstrate to the 

3 Secretary that the decline referred to in that 

4 subparagraph occurred, or will occur, not 

5 later than 2 years after the date on which 

6 the application was filed for the grant. 

7 ‘‘(D) USES.— 

8 ‘‘(i) IN GENERAL.—Grants made under 

9 this paragraph may be used— 

10 ‘‘(I) for waterline extensions from 

11 existing systems, laying of new 

12 waterlines, repairs, significant mainte13 nance, digging of new wells, equipment 

14 replacement, and hook and tap fees; 

15 ‘‘(II) for any other appropriate 

16 purpose associated with developing 

17 sources of, treating, storing, or distrib18 uting water; 

19 ‘‘(III) to assist communities in 

20 complying with the requirements of the 

21 Federal Water Pollution Control Act 

22 (33 U.S.C. 1251 et seq.) or the Safe 

23 Drinking Water Act (42 U.S.C. 300f et 

24 seq.); and 
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1 ‘‘(IV) to provide potable water to 

2 communities through other means. 

3 ‘‘(ii) JOINT PROPOSALS.— 

4 ‘‘(I) IN GENERAL.—Subject to the 

5 restrictions in subparagraph (E), noth6 ing in this paragraph precludes rural 

7 communities from submitting joint 

8 proposals for emergency water assist9 ance. 

10 ‘‘(II) CONSIDERATION OF RE11 STRICTIONS.—The restrictions in sub12 paragraph (E) shall be considered in 

13 the aggregate, depending on the num14 ber of communities involved. 

15 ‘‘(E) RESTRICTIONS.— 

16 ‘‘(i) MAXIMUM INCOME.—No grant 

17 provided under this paragraph shall be used 

18 to assist any rural area or community that 

19 has a median household income in excess of 

20 the State nonmetropolitan median house21 hold income according to the most recent de22 cennial census of the United States. 

23 ‘‘(ii) SET-ASIDE FOR SMALLER COMMU24 NITIES.—Not less than 50 percent of the 

25 funds allocated under this paragraph shall 
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1 be allocated to rural communities with pop2 ulations that do not exceed 3,000 inhab3 itants. 

4 ‘‘(F) MAXIMUM GRANTS.—Grants made 

5 under this paragraph may not exceed— 

6 ‘‘(i) in the case of each grant made 

7 under subparagraph (A)(i), $500,000; and 

8 ‘‘(ii) in the case of each grant made 

9 under subparagraph (A)(ii), $150,000. 

10 ‘‘(G) FULL FUNDING.—Subject to subpara11 graph (F), grants under this paragraph shall be 

12 made in an amount equal to 100 percent of the 

13 costs of the projects conducted under this para14 graph. 

15 ‘‘(H) APPLICATION.— 

16 ‘‘(i) NATIONALLY COMPETITIVE APPLI17 CATION PROCESS.— 

18 ‘‘(I) IN GENERAL.—The Secretary 

19 shall develop a nationally competitive 

20 application process to award grants 

21 under this paragraph. 

22 ‘‘(II) REQUIREMENTS.—The proc23 ess shall include criteria for evaluating 

24 applications, including population, 

25 median household income, and the se-
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1 verity of the decline, or imminent de2 cline, in the quantity or quality of 

3 water. 

4 ‘‘(ii) TIMING OF REVIEW OF APPLICA5 TIONS.— 

6 ‘‘(I) SIMPLIFIED APPLICATION.— 

7 The application process developed by 

8 the Secretary under clause (i) shall in9 clude a simplified application form 

10 that will permit expedited consider11 ation of an application for a grant 

12 filed under this paragraph. 

13 ‘‘(II) PRIORITY REVIEW.—In 

14 processing applications for any water 

15 or waste grant or loan authorized 

16 under this section, the Secretary shall 

17 afford priority processing to an appli18 cation for a grant under this para19 graph to the extent funds will be avail20 able for an award on the application 

21 at the conclusion of priority proc22 essing. 

23 ‘‘(III) TIMING.—The Secretary 

24 shall, to the maximum extent prac25 ticable, review and act on an applica-
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1 tion under this paragraph not later 

2 than 60 days after the date on which 

3 the application is submitted to the Sec4 retary. 

5 ‘‘(I) FUNDING.— 

6 ‘‘(i) RESERVATION.— 

7 ‘‘(I) IN GENERAL.—For each fis8 cal year, not less than 3 nor more than 

9 5 percent of the total amount made 

10 available to carry out this section for 

11 the fiscal year shall be reserved for 

12 grants under this paragraph. 

13 ‘‘(II) RELEASE.—Funds reserved 

14 under subclause (I) for a fiscal year 

15 shall be reserved only until July 1 of 

16 the fiscal year. 

17 ‘‘(ii) AUTHORIZATION OF APPROPRIA18 TIONS.—In addition to funds made avail19 able under clause (i), there is authorized to 

20 be appropriated to carry out this paragraph 

21 $35,000,000 for each of fiscal years 2014 

22 through 2018. 

23 ‘‘(3) WATER AND WASTE FACILITY LOANS AND

24 GRANTS TO ALLEVIATE HEALTH RISKS.— 
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1 ‘‘(A) DEFINITION OF COOPERATIVE.—In 

2 this paragraph, the term ‘cooperative’ means a 

3 cooperative formed specifically for the purpose of 

4 the installation, expansion, improvement, or op5 eration of water supply or waste disposal facili6 ties or systems. 

7 ‘‘(B) LOANS AND GRANTS TO PERSONS

8 OTHER THAN INDIVIDUALS.— 

9 ‘‘(i) IN GENERAL.—The Secretary shall 

10 make or guarantee loans and make grants 

11 to provide for the conservation, develop12 ment, use, and control of water (including 

13 the extension or improvement of existing 

14 water supply systems) and the installation 

15 or improvement of drainage or waste dis16 posal facilities and essential community fa17 cilities, including necessary related equip18 ment, training, and technical assistance 

19 to— 

20 ‘‘(I) rural water supply corpora21 tions, cooperatives, or similar entities; 

22 ‘‘(II) Indian tribes on Federal or 

23 State reservations and other federally 

24 recognized Indian tribes; 
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1 ‘‘(III) rural or native villages in 

2 the State of Alaska; 

3 ‘‘(IV) native tribal health consor4 tiums; 

5 ‘‘(V) public agencies; and 

6 ‘‘(VI) Native Hawaiian Home 

7 Lands. 

8 ‘‘(ii) ELIGIBLE PROJECTS.—Loans and 

9 grants described in clause (i) shall be avail10 able only to provide the described water and 

11 waste facilities and services to communities 

12 whose residents face significant health risks, 

13 as determined by the Secretary, due to the 

14 fact that a significant proportion of the 

15 residents of the community do not have ac16 cess to, or are not served by, adequate af17 fordable— 

18 ‘‘(I) water supply systems; or 

19 ‘‘(II) waste disposal facilities. 

20 ‘‘(iii) MATCHING REQUIREMENTS.— 

21 For entities described under subclauses 

22 (III), (IV), or (V) of clause (i) to be eligible 

23 to receive a grant for water supply systems 

24 or waste disposal facilities, the State in 

25 which the project will occur shall provide 25 
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1 percent in matching funds from non-Fed2 eral sources. 

3 ‘‘(iv) CERTAIN AREAS TARGETED.— 

4 ‘‘(I) IN GENERAL.—Loans and 

5 grants under clause (i) shall be made 

6 only if the loan or grant funds will be 

7 used primarily to provide water or 

8 waste services, or both, to residents of 

9 a county or census area— 

10 ‘‘(aa) the per capita income 

11 of the residents of which is not 

12 more than 70 percent of the na13 tional average per capita income, 

14 as determined by the Department 

15 of Commerce; and 

16 ‘‘(bb) the unemployment rate 

17 of the residents of which is not 

18 less than 125 percent of the na19 tional average unemployment 

20 rate, as determined by the Bureau 

21 of Labor Statistics. 

22 ‘‘(II) EXCEPTIONS.—Notwith23 standing subclause (I), loans and 

24 grants under clause (i) may also be 

25 made if the loan or grant funds will be 
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1 used primarily to provide water or 

2 waste services, or both, to residents 

3 of— 

4 ‘‘(aa) a rural area that was 

5 recognized as a colonia as of Octo6 ber 1, 1989; or 

7 ‘‘(bb) an area described 

8 under subclause (II), (III), or 

9 (VI) of clause (i). 

10 ‘‘(C) LOANS AND GRANTS TO INDIVID11 UALS.— 

12 ‘‘(i) IN GENERAL.—The Secretary shall 

13 make or guarantee loans and make grants 

14 to individuals who reside in a community 

15 described in subparagraph (B)(i) for the 

16 purpose of extending water supply and 

17 waste disposal systems, connecting the sys18 tems to the residences of the individuals, or 

19 installing plumbing and fixtures within the 

20 residences of the individuals to facilitate the 

21 use of the water supply and waste disposal 

22 systems. 

23 ‘‘(ii) INTEREST.—Loans described in 

24 clause (i) shall be at a rate of interest no 

25 greater than the Federal Financing Bank 
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1 rate on loans of a similar term at the time 

2 the loans are made. 

3 ‘‘(iii) AMORTIZATION.—The repayment 

4 of loans described in clause (i) shall be am5 ortized over the expected life of the water 

6 supply or waste disposal system to which 

7 the residence of the borrower will be con8 nected. 

9 ‘‘(iv) MANNER IN WHICH LOANS AND

10 GRANTS ARE TO BE MADE.—Loans and 

11 grants to individuals under clause (i) shall 

12 be made— 

13 ‘‘(I) directly to the individuals by 

14 the Secretary; or 

15 ‘‘(II) to the individuals through 

16 the rural water supply corporation, co17 operative, or similar entity, or public 

18 agency, providing the water supply or 

19 waste disposal services, pursuant to 

20 regulations issued by the Secretary. 

21 ‘‘(D) PREFERENCE.—The Secretary shall 

22 give preference in the awarding of loans and 

23 grants under subparagraphs (B) and (C) to enti24 ties described in clause (i) of subparagraph (B) 

25 that propose to provide water supply or waste 
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1 disposal services to the residents of Indian res2 ervations, rural or native villages in the State of 

3 Alaska, Native Hawaiian Home Lands, and 

4 those rural subdivisions commonly referred to as 

5 colonias, that are characterized by substandard 

6 housing, inadequate roads and drainage, and a 

7 lack of adequate water or waste facilities. 

8 ‘‘(E) RELATIONSHIP TO OTHER AUTHOR9 ITY.—Notwithstanding any other provision of 

10 law, the head of any Federal agency may enter 

11 into interagency agreements with Federal, State, 

12 tribal, and other entities to share resources, in13 cluding transferring and accepting funds, equip14 ment, or other supplies, to carry out the activi15 ties described in this paragraph. 

16 ‘‘(F) AUTHORIZATION OF APPROPRIA17 TIONS.—There are authorized to be appro18 priated— 

19 ‘‘(i) for grants under this paragraph, 

20 $60,000,000 for each fiscal year; 

21 ‘‘(ii) for loans under this paragraph, 

22 $60,000,000 for each fiscal year; and 

23 ‘‘(iii) in addition to grants provided 

24 under clause (i), for grants under this sec-
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1 tion to benefit Indian tribes, $20,000,000 

2 for each fiscal year. 

3 ‘‘(4) SOLID WASTE MANAGEMENT GRANTS.— 

4 ‘‘(A) IN GENERAL.—The Secretary may 

5 make grants to nonprofit organizations for the 

6 provision of regional technical assistance to local 

7 and regional governments and related agencies 

8 for the purpose of reducing or eliminating pollu9 tion of water resources and improving the plan10 ning and management of solid waste disposal fa11 cilities in rural areas. 

12 ‘‘(B) TECHNICAL ASSISTANCE GRANT

13 AMOUNTS.—Grants made under this paragraph 

14 for the provision of technical assistance shall be 

15 made for 100 percent of the cost of the technical 

16 assistance. 

17 ‘‘(C) AUTHORIZATION OF APPROPRIA18 TIONS.—There is authorized to be appropriated 

19 to carry out this paragraph $10,000,000 for each 

20 of fiscal years 2014 through 2018. 

21 ‘‘(5) RURAL WATER AND WASTEWATER TECH22 NICAL ASSISTANCE AND TRAINING PROGRAMS.— 

23 ‘‘(A) GRANTS TO NONPROFITS.— 

24 ‘‘(i) IN GENERAL.—The Secretary may 

25 make grants to nonprofit organizations to 
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1 enable the organizations to provide to asso2 ciations that provide water and wastewater 

3 services in rural areas technical assistance 

4 and training— 

5 ‘‘(I) to identify, and evaluate al6 ternative solutions to, problems relat7 ing to the obtaining, storage, treat8 ment, purification, or distribution of 

9 water or the collection, treatment, or 

10 disposal of waste in rural areas; 

11 ‘‘(II) to prepare applications to 

12 receive financial assistance for any 

13 purpose specified in subsection (a)(1) 

14 from any public or private source; and 

15 ‘‘(III) to improve the operation 

16 and maintenance practices at any ex17 isting works for the storage, treatment, 

18 purification, or distribution of water 

19 or the collection, treatment, or disposal 

20 of waste in rural areas. 

21 ‘‘(ii) SELECTION PRIORITY.—In select22 ing recipients of grants to be made under 

23 clause (i), the Secretary shall give priority 

24 to nonprofit organizations that have experi25 ence in providing the technical assistance 
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1 and training described in clause (i) to asso2 ciations serving rural areas in which— 

3 ‘‘(I) residents have low income; 

4 and 

5 ‘‘(II) water supply systems or 

6 waste facilities are unhealthful. 

7 ‘‘(iii) FUNDING.— 

8 ‘‘(I) IN GENERAL.—Except as pro9 vided in subclause (II), not less than 1 

10 nor more than 3 percent of any funds 

11 made available to carry out water and 

12 waste disposal projects described in 

13 subsection (a) for any fiscal year shall 

14 be reserved for grants under this para15 graph. 

16 ‘‘(II) EXCEPTION.—The minimum 

17 amount specified in subclause (I) shall 

18 not apply if the aggregate amount of 

19 grant funds requested by applications 

20 that qualify for grants received by the 

21 Secretary from eligible nonprofit orga22 nizations for the fiscal year totals less 

23 than 1 percent of those funds. 

24 ‘‘(B) RURAL WATER AND WASTEWATER CIR25 CUIT RIDER PROGRAM.— 
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1 ‘‘(i) IN GENERAL.—The Secretary shall 

2 continue a national rural water and waste3 water circuit rider program that— 

4 ‘‘(I) is consistent with the activi5 ties and results of the program con6 ducted before January 1, 2012, as de7 termined by the Secretary; and 

8 ‘‘(II) received funding from the 

9 Secretary, acting through the Adminis10 trator of the Rural Utilities Service. 

11 ‘‘(ii) AUTHORIZATION OF APPROPRIA12 TIONS.—There is authorized to be appro13 priated to carry out this subparagraph 

14 $25,000,000 for fiscal year 2014 and each 

15 fiscal year thereafter. 

16 ‘‘(6) SEARCH PROGRAM.— 

17 ‘‘(A) IN GENERAL.—The Secretary may es18 tablish a Special Evaluation Assistance for 

19 Rural Communities and Households (SEARCH) 

20 program to make predevelopment planning 

21 grants for feasibility studies, design assistance, 

22 and technical assistance, to financially distressed 

23 communities in rural areas with populations of 

24 2,500 or fewer inhabitants for water and waste 

25 disposal projects described in this section. 
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1 ‘‘(B) TERMS.— 

2 ‘‘(i) DOCUMENTATION.—With respect 

3 to grants made under this paragraph, the 

4 Secretary shall require the lowest quantity 

5 of documentation practicable. 

6 ‘‘(ii) MATCHING.—Notwithstanding 

7 any other provision of this section, the Sec8 retary may fund up to 100 percent of the 

9 eligible costs of grants provided under this 

10 paragraph, as determined by the Secretary. 

11 ‘‘(iii) FUNDING.—The Secretary may 

12 use not more than 4 percent of the total 

13 amount of funds made available for a fiscal 

14 year for water, waste disposal, and essential 

15 community facility activities under this 

16 chapter to carry out this paragraph. 

17 ‘‘(C) RELATIONSHIP TO OTHER AUTHOR18 ITY.— 

19 ‘‘(i) IN GENERAL.—The funds and au20 thorities provided under this paragraph are 

21 in addition to any other funds or authori22 ties the Secretary may have to carry out ac23 tivities described in this section. 

24 ‘‘(ii) AUTHORIZED ACTIVITIES.—The 

25 Secretary may furnish financial assistance 
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1 or other aid in planning projects for the 

2 purposes described in subparagraph (A). 

3 ‘‘(f) PRIORITY.—In making grants and loans, and 

4 guaranteeing loans, for water, wastewater, and waste dis5 posal projects under this section, the Secretary shall give 

6 priority consideration to projects that serve rural commu7 nities that, as determined by the Secretary— 

8 ‘‘(1) have a population of less than 5,500 perma9 nent residents; 

10 ‘‘(2) have a community water, wastewater, or 

11 waste disposal system that— 

12 ‘‘(A) is experiencing— 

13 ‘‘(i) an unanticipated reduction in the 

14 quality of water, the quantity of water, or 

15 the ability to deliver water; or 

16 ‘‘(ii) some other deterioration in the 

17 supply of water to the community; 

18 ‘‘(B) is not adequate to meet the needs of the 

19 community; and 

20 ‘‘(C) requires immediate corrective action; 

21 ‘‘(3) are experiencing outmigration; 

22 ‘‘(4) have a high percentage of low-income resi23 dents; or 

24 ‘‘(5) are isolated from other significant popu25 lation centers. 
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1 ‘‘(g) CURTAILMENT OR LIMITATION OF SERVICE PRO2 HIBITED.—The service provided or made available through 

3 any such association shall not be curtailed or limited by 

4 inclusion of the area served by such association within the 

5 boundaries of any municipal corporation or other public 

6 body, or by the granting of any private franchise for similar 

7 service within such area during the term of such loan; nor 

8 shall the happening of any such event be the basis of requir9 ing such association to secure any franchise, license, or per10 mit as a condition to continuing to serve the area served 

11 by the association at the time of the occurrence of such 

12 event. 

13 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 such sums as are necessary. 

16 ‘‘SEC. 3502. COMMUNITY FACILITIES LOANS, LOAN GUARAN17 TEES, AND GRANTS. 

18 ‘‘(a) IN GENERAL.—The Secretary may make grants 

19 and loans and issue loan guarantees (including a guarantee 

20 of a loan financed by the net proceeds of a bond described 

21 in section 142(a) of the Internal Revenue Code of 1986) to 

22 eligible entities described in subsection (b) for projects in 

23 rural areas that primarily serve rural residents to provide 

24 for— 

25 ‘‘(1) essential community facilities, including— 
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† HR 2642 EAS 

1 ‘‘(A) necessary equipment; 

2 ‘‘(B) recreational developments; and 

3 ‘‘(2) financial assistance and other assistance in 

4 the planning of projects for purposes described in this 

5 section. 

6 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible for assist7 ance described in subsection (a) are— 

8 ‘‘(1) associations (including corporations not op9 erated for profit); 

10 ‘‘(2) Indian tribes (including groups of individ11 uals described in paragraph (4) of section 815 of the 

12 Native American Programs Act of 1974 (42 U.S.C. 

13 2992c)); and 

14 ‘‘(3) public and quasi-public agencies. 

15 ‘‘(c) LOAN AND LOAN GUARANTEE REQUIREMENTS.— 

16 ‘‘(1) IN GENERAL.—In connection with loans 

17 made or guaranteed under this section, the Secretary 

18 shall require the applicant— 

19 ‘‘(A) to certify in writing, and the Sec20 retary shall determine, that the applicant is un21 able to obtain credit elsewhere to finance the ac22 tual needs of the applicant; and 

23 ‘‘(B) to furnish an appropriate written fi24 nancial statement. 
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1 ‘‘(2) DEBT RESTRUCTURING AND LOAN SERV2 ICING FOR COMMUNITY FACILITY LOANS.—The Sec3 retary shall establish and implement a program that 

4 is similar to the program established under section 

5 3411, except that the debt restructuring and loan 

6 servicing procedures shall apply to delinquent com7 munity facility program loans to a hospital or health 

8 care facility under subsection (a). 

9 ‘‘(d) GRANT AMOUNTS.— 

10 ‘‘(1) MAXIMUM.—Except as otherwise provided 

11 in this subsection, the amount of any grant made 

12 under this section shall not exceed 75 percent of the 

13 development cost of the project for which the grant is 

14 provided. 

15 ‘‘(2) GRANT RATE.—The Secretary shall establish 

16 the grant rate for each project in conformity with reg17 ulations issued by the Secretary that shall provide for 

18 a graduated scale of grant rates that establish higher 

19 rates for projects in communities that have— 

20 ‘‘(A) low community population; 

21 ‘‘(B) high rates of outmigration; and 

22 ‘‘(C) low income levels. 

23 ‘‘(3) LOCAL SHARE REQUIREMENTS.—Grants 

24 made under this section may be used to pay the local 

25 share requirements of another Federal grant-in-aid 
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1 program to the extent permitted under the law pro2 viding for the grant-in-aid program. 

3 ‘‘(e) PRIORITY.—In making grants and loans, and 

4 guaranteeing loans under this section, the Secretary shall 

5 give priority consideration to projects that serve rural com6 munities that— 

7 ‘‘(1) have a population of less than 20,000 per8 manent residents; 

9 ‘‘(2) are experiencing outmigration; 

10 ‘‘(3) have a high percentage of low-income resi11 dents; or 

12 ‘‘(4) are isolated from other significant popu13 lation centers. 

14 ‘‘(f) TRIBAL COLLEGES AND UNIVERSITIES.— 

15 ‘‘(1) IN GENERAL.—The Secretary may make 

16 grants to an entity that is a Tribal College or Univer17 sity (as defined in section 316(b) of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1059c(b))) to provide 

19 the Federal share of the cost of developing specific 

20 Tribal College or University essential community fa21 cilities in rural areas. 

22 ‘‘(2) FEDERAL SHARE.—The Secretary shall es23 tablish the maximum percentage of the cost of the 

24 project that may be covered by a grant under this 

25 subsection, except that the Secretary may not require 
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† HR 2642 EAS 

1 non-Federal financial support in an amount that is 

2 greater than 5 percent of the total cost of the project. 

3 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated to carry out 

5 this subsection $10,000,000 for each of fiscal years 

6 2014 through 2018. 

7 ‘‘(g) TECHNICAL ASSISTANCE FOR COMMUNITY FACILI8 TIES PROJECTS.— 

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

10 Secretary may use funds made available for commu11 nity facilities programs authorized under this section 

12 to provide technical assistance to applicants and par13 ticipants for community facilities programs. 

14 ‘‘(2) FUNDING.—The Secretary may use not 

15 more than 3 percent of the amount of funds made 

16 available to participants for a fiscal year for a com17 munity facilities program to provide technical assist18 ance described in paragraph (1). 

19 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to carry out this section 

21 such sums as are necessary. 

22 ‘‘SEC. 3503. HEALTH CARE SERVICES. 

23 ‘‘(a) PURPOSE.—The purpose of this section is to ad24 dress the continued unmet health needs in the Delta region 

25 through cooperation among health care professionals, insti-
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† HR 2642 EAS 

1 tutions of higher education, research institutions, and other 

2 individuals and entities in the region. 

3 ‘‘(b) DEFINITION OF ELIGIBLE ENTITY.—In this sec4 tion, the term ‘eligible entity’ means a consortium of re5 gional institutions of higher education, academic health 

6 and research institutes, and economic development entities 

7 located in the Delta region that have experience in address8 ing the health care issues in the region. 

9 ‘‘(c) GRANTS.—To carry out the purpose described in 

10 subsection (a), the Secretary may award a grant to an eligi11 ble entity for— 

12 ‘‘(1) the development of— 

13 ‘‘(A) health care services; 

14 ‘‘(B) health education programs; and 

15 ‘‘(C) health care job training programs; and 

16 ‘‘(2) the development and expansion of public 

17 health-related facilities in the Delta region to address 

18 longstanding and unmet health needs of the region. 

19 ‘‘(d) USE.—As a condition of the receipt of the grant, 

20 the eligible entity shall use the grant to fund projects and 

21 activities described in subsection (c), based on input solic22 ited from local governments, public health care providers, 

23 and other entities in the Delta region. 

24 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated to the Secretary to carry out 
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1 this section $3,000,000 for each of fiscal years 2014 through 

2 2018. 

3 ‘‘CHAPTER 2—RURAL BUSINESS AND 

4 COOPERATIVE DEVELOPMENT 

5 ‘‘SEC. 3601. BUSINESS PROGRAMS. 

6 ‘‘(a) RURAL BUSINESS DEVELOPMENT GRANTS.— 

7 ‘‘(1) IN GENERAL.—The Secretary may make 

8 grants under this subsection to eligible entities de9 scribed in paragraph (2) in rural areas that pri10 marily serve rural areas for purposes described in 

11 paragraph (3). 

12 ‘‘(2) ELIGIBLE ENTITIES.—The Secretary may 

13 make grants under this subsection to— 

14 ‘‘(A) governmental entities; 

15 ‘‘(B) Indian tribes; and 

16 ‘‘(C) nonprofit entities. 

17 ‘‘(3) ELIGIBLE PURPOSES FOR GRANTS.—Eligi18 ble entities that receive grants under this subsection 

19 may use the grant funds for— 

20 ‘‘(A) business opportunity projects that— 

21 ‘‘(i) identify and analyze business op22 portunities; 

23 ‘‘(ii) identify, train, and provide tech24 nical assistance to existing or prospective 

25 rural entrepreneurs and managers; 
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1 ‘‘(iii) assist in the establishment of 

2 new rural businesses and the maintenance 

3 of existing businesses, including through 

4 business support centers; 

5 ‘‘(iv) conduct regional, community, 

6 and local economic development planning 

7 and coordination, and leadership develop8 ment; and 

9 ‘‘(v) establish centers for training, tech10 nology, and trade that will provide training 

11 to rural businesses in the use of interactive 

12 communications technologies to develop 

13 international trade opportunities and mar14 kets; and 

15 ‘‘(B) projects that support the development 

16 of business enterprises that finance or facili17 tate— 

18 ‘‘(i) the development of small and 

19 emerging private business enterprise; 

20 ‘‘(ii) the establishment, expansion, and 

21 operation of rural distance learning net22 works; 

23 ‘‘(iii) the development of rural learn24 ing programs that provide educational in25 struction or job training instruction related 
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1 to potential employment or job advancement 

2 to adult students; and 

3 ‘‘(iv) the provision of technical assist4 ance and training to rural communities for 

5 the purpose of improving passenger trans6 portation services or facilities. 

7 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

8 There is authorized to be appropriated to the Sec9 retary to carry out this subsection $65,000,000 for 

10 each of fiscal years 2014 through 2018, to remain 

11 available until expended. 

12 ‘‘(b) VALUE-ADDED AGRICULTURAL PRODUCER

13 GRANTS.— 

14 ‘‘(1) DEFINITIONS.—In this subsection: 

15 ‘‘(A) MID-TIER VALUE CHAIN.—The term 

16 ‘mid-tier value chain’ means a local and re17 gional supply network that links independent 

18 producers with businesses and cooperatives that 

19 market value-added agricultural products in a 

20 manner that— 

21 ‘‘(i) targets and strengthens the profit22 ability and competitiveness of small- and 

23 medium-sized farms that are structured as 

24 family farms; and 
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1 ‘‘(ii) obtains agreement from an eligi2 ble agricultural producer group, farmer co3 operative, or majority-controlled producer4 based business venture that is engaged in 

5 the value chain on a marketing strategy. 

6 ‘‘(B) PRODUCER.—The term ‘producer’ 

7 means a farmer. 

8 ‘‘(C) VALUE-ADDED AGRICULTURAL PROD9 UCT.—The term ‘value-added agricultural prod10 uct’ means any agricultural commodity or prod11 uct— 

12 ‘‘(i) that— 

13 ‘‘(I) has undergone a change in 

14 physical state; 

15 ‘‘(II) was produced in a manner 

16 that enhances the value of the agricul17 tural commodity or product, as dem18 onstrated through a business plan that 

19 shows the enhanced value, as deter20 mined by the Secretary; 

21 ‘‘(III) is physically segregated in 

22 a manner that results in the enhance23 ment of the value of the agricultural 

24 commodity or product; 
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1 ‘‘(IV) is a source of farm-based re2 newable energy, including E–85 fuel; 

3 or 

4 ‘‘(V) is aggregated and marketed 

5 as a locally produced agricultural food 

6 product; and 

7 ‘‘(ii) for which, as a result of the 

8 change in physical state or the manner in 

9 which the agricultural commodity or prod10 uct was produced, marketed, or segregated— 

11 ‘‘(I) the customer base for the ag12 ricultural commodity or product is ex13 panded; and 

14 ‘‘(II) a greater portion of the rev15 enue derived from the marketing, proc16 essing, or physical segregation of the 

17 agricultural commodity or product is 

18 available to the producer of the com19 modity or product. 

20 ‘‘(2) GRANTS.— 

21 ‘‘(A) IN GENERAL.—The Secretary may 

22 make grants under this subsection to— 

23 ‘‘(i) independent producers of value24 added agricultural products; and 
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1 ‘‘(ii) an agricultural producer group, 

2 farmer cooperative, or majority-controlled 

3 producer-based business venture, as deter4 mined by the Secretary. 

5 ‘‘(B) GRANTS TO A PRODUCER.—A grantee 

6 under subparagraph (A)(i) shall use the grant— 

7 ‘‘(i) to develop a business plan or per8 form a feasibility study to establish a viable 

9 marketing opportunity (including through 

10 mid-tier value chains) for value-added agri11 cultural products; or 

12 ‘‘(ii) to provide capital to establish al13 liances or business ventures that allow the 

14 producer to better compete in domestic or 

15 international markets. 

16 ‘‘(C) GRANTS TO AN AGRICULTURAL PRO17 DUCER GROUP, COOPERATIVE OR PRODUCER18 BASED BUSINESS VENTURE.—A grantee under 

19 subparagraph (A)(ii) shall use the grant— 

20 ‘‘(i) to develop a business plan for via21 ble marketing opportunities in emerging 

22 markets for a value-added agricultural 

23 product; or 

24 ‘‘(ii) to develop strategies that are in25 tended to create marketing opportunities in 
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1 emerging markets for the value-added agri2 cultural product. 

3 ‘‘(D) AWARD SELECTION.— 

4 ‘‘(i) PRIORITY.—In awarding grants 

5 under this subsection, the Secretary shall 

6 give priority to projects— 

7 ‘‘(I) that contribute to increasing 

8 opportunities for operators of small9 and medium-sized farms that are 

10 structured as family farms; or 

‘‘(II) at least 1 11 ⁄4 of the recipients 

12 of which are beginning farmers or so13 cially disadvantaged farmers. 

14 ‘‘(ii) RANKING.—In evaluating and 

15 ranking proposals under this subsection, the 

16 Secretary shall provide substantial weight 

17 to the priorities described in clause (i). 

18 ‘‘(E) AMOUNT OF GRANT.— 

19 ‘‘(i) IN GENERAL.—The total amount 

20 provided to a grant recipient under this 

21 subsection shall not exceed $500,000. 

22 ‘‘(ii) MAJORITY-CONTROLLED, PRO23 DUCER-BASED BUSINESS VENTURES.—The 

24 total amount of all grants provided to ma25 jority-controlled, producer-based business 
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1 ventures under this subsection for a fiscal 

2 year shall not exceed 10 percent of the 

3 amount of funds used to make all grants for 

4 the fiscal year under this subsection. 

5 ‘‘(F) TERM.—The term of a grant under 

6 this paragraph shall not exceed 3 years. 

7 ‘‘(G) SIMPLIFIED APPLICATION.—The Sec8 retary shall offer a simplified application form 

9 and process for project proposals requesting less 

10 than $50,000 under this subsection. 

11 ‘‘(3) FUNDING.— 

12 ‘‘(A) AUTHORIZATION OF APPROPRIA13 TIONS.—There is authorized to be appropriated 

14 to carry out this subsection $40,000,000 for each 

15 of fiscal years 2014 through 2018. 

16 ‘‘(B) RESERVATION OF FUNDS FOR

17 PROJECTS TO BENEFIT BEGINNING FARMERS, SO18 CIALLY DISADVANTAGED FARMERS, AND MID-TIER

19 VALUE CHAINS.— 

20 ‘‘(i) IN GENERAL.—The Secretary shall 

21 reserve 10 percent of the amounts made 

22 available for each fiscal year under this 

23 subsection to fund projects that benefit be24 ginning farmers or socially disadvantaged 

25 farmers. 
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1 ‘‘(ii) MID-TIER VALUE CHAINS.—The 

2 Secretary shall reserve 10 percent of the 

3 amounts made available for each fiscal year 

4 under this subsection to fund applications 

5 of eligible entities described in paragraph 

6 (2) that propose to develop mid-tier value 

7 chains. 

8 ‘‘(iii) UNOBLIGATED AMOUNTS.—Any 

9 amounts in the reserves for a fiscal year es10 tablished under clauses (i) and (ii) that are 

11 not obligated by June 30 of the fiscal year 

12 shall be available to the Secretary to make 

13 grants under this subsection to eligible enti14 ties in any State, as determined by the Sec15 retary. 

16 ‘‘(C) MANDATORY FUNDING.—Of the funds 

17 of the Commodity Credit Corporation, the Sec18 retary shall use to carry out this subsection 

19 $12,500,000 for each of fiscal years 2014 through 

20 2018, to remain available until expended. 

21 ‘‘(c) RURAL COOPERATIVE DEVELOPMENT GRANTS.— 

22 ‘‘(1) DEFINITIONS.—In this subsection: 

23 ‘‘(A) NONPROFIT INSTITUTION.—The term 

24 ‘nonprofit institution’ means any organization 

25 or institution, including an accredited institu-
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† HR 2642 EAS 

1 tion of higher education, no part of the net earn2 ings of which inures, or may lawfully inure, to 

3 the benefit of any private shareholder or indi4 vidual. 

5 ‘‘(B) UNITED STATES.—The term ‘United 

6 States’ means— 

7 ‘‘(i) the several States; and 

8 ‘‘(ii) the District of Columbia. 

9 ‘‘(2) GRANTS.—The Secretary shall make grants 

10 under this subsection to nonprofit institutions for the 

11 purpose of enabling the nonprofit institutions to es12 tablish and operate centers for rural cooperative de13 velopment. 

14 ‘‘(3) GOALS.—The goals of a center funded under 

15 this subsection shall be to facilitate the creation of 

16 jobs in rural areas through the development of new 

17 rural cooperatives, value -added processing, and rural 

18 businesses. 

19 ‘‘(4) APPLICATION.— 

20 ‘‘(A) IN GENERAL.—Any nonprofit institu21 tion seeking a grant under paragraph (2) shall 

22 submit to the Secretary an application con23 taining a plan for the establishment and oper24 ation by the institution of 1 or more centers for 

25 cooperative development. 
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1 ‘‘(B) REQUIREMENTS.—The Secretary may 

2 approve an application if the plan contains the 

3 following: 

4 ‘‘(i) A provision that substantiates that 

5 the center will effectively serve rural areas 

6 in the United States. 

7 ‘‘(ii) A provision that the primary ob8 jective of the center will be to improve the 

9 economic condition of rural areas through 

10 cooperative development. 

11 ‘‘(iii) A description of the activities 

12 that the center will carry out to accomplish 

13 the objective, which may include pro14 grams— 

15 ‘‘(I) for applied research and fea16 sibility studies that may be useful to 

17 individuals, cooperatives, small busi18 nesses, and other similar entities in 

19 rural areas served by the center; 

20 ‘‘(II) for the collection, interpreta21 tion, and dissemination of information 

22 that may be useful to individuals, co23 operatives, small businesses, and other 

24 similar entities in rural areas served 

25 by the center; 
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† HR 2642 EAS 

1 ‘‘(III) providing training and in2 struction for individuals, cooperatives, 

3 small businesses, and other similar en4 tities in rural areas served by the cen5 ter; 

6 ‘‘(IV) providing loans and grants 

7 to individuals, cooperatives, small 

8 businesses, and other similar entities 

9 in rural areas served by the center; 

10 ‘‘(V) providing technical assist11 ance, research services, and advisory 

12 services to individuals, cooperatives, 

13 small businesses, and other similar en14 tities in rural areas served by the cen15 ter; and 

16 ‘‘(VI) providing for the coordina17 tion of services and sharing of infor18 mation by the center. 

19 ‘‘(iv) A description of the contributions 

20 that the activities are likely to make to the 

21 improvement of the economic conditions of 

22 the rural areas for which the center will 

23 provide services. 

24 ‘‘(v) Provisions that the center, in car25 rying out the activities, will seek, if appro-
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† HR 2642 EAS 

1 priate, the advice, participation, expertise, 

2 and assistance of representatives of business, 

3 industry, educational institutions, the Fed4 eral Government, and State and local gov5 ernments. 

6 ‘‘(vi) Provisions that the center will 

7 take all practicable steps to develop con8 tinuing sources of financial support for the 

9 center, particularly from sources in the pri10 vate sector. 

11 ‘‘(vii) Provisions for— 

12 ‘‘(I) monitoring and evaluating 

13 the activities by the nonprofit institu14 tion operating the center; and 

15 ‘‘(II) accounting for funds re16 ceived by the institution under this sec17 tion. 

18 ‘‘(5) AWARDING GRANTS.— 

19 ‘‘(A) IN GENERAL.—Grants made under 

20 paragraph (2) shall be made on a competitive 

21 basis. 

22 ‘‘(B) PREFERENCE.—In making grants 

23 under paragraph (2), the Secretary shall give 

24 preference to grant applications providing for 
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1 the establishment of centers for rural cooperative 

2 development that— 

3 ‘‘(i) demonstrate a proven track record 

4 in carrying out activities to promote and 

5 assist the development of cooperatively and 

6 mutually owned businesses; 

7 ‘‘(ii) demonstrate previous expertise in 

8 providing technical assistance in rural 

9 areas to promote and assist the development 

10 of cooperatively and mutually owned busi11 nesses; 

12 ‘‘(iii) demonstrate the ability to assist 

13 in the retention of businesses, facilitate the 

14 establishment of cooperatives and new coop15 erative approaches, and generate employ16 ment opportunities that will improve the 

17 economic conditions of rural areas; 

18 ‘‘(iv) commit to providing technical as19 sistance and other services to underserved 

20 and economically distressed areas in rural 

21 areas of the United States; 

22 ‘‘(v) demonstrate a commitment to— 

23 ‘‘(I) networking with and sharing 

24 the results of the efforts of the center 

25 with other cooperative development 
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1 centers and other organizations in2 volved in rural economic development 

3 efforts; and 

4 ‘‘(II) developing multiorganiza5 tion and multistate approaches to ad6 dressing the economic development and 

7 cooperative needs of rural areas; and 

8 ‘‘(vi) commit to providing a 25 percent 

9 matching contribution with private funds 

10 and in-kind contributions, except that the 

11 Secretary shall not require non-Federal fi12 nancial support in an amount that is great13 er than 5 percent in the case of a 1994 in14 stitution (as defined in section 532 of the 

15 Equity in Educational Land-Grant Status 

16 Act of 1994 (7 U.S.C. 301 note; Public Law 

17 103–382)). 

18 ‘‘(6) GRANT PERIOD.— 

19 ‘‘(A) IN GENERAL.—A grant awarded to a 

20 center that has received no prior funding under 

21 this subsection shall be made for a period of 1 

22 year. 

23 ‘‘(B) MULTIYEAR GRANTS.—If the Secretary 

24 determines it to be in the best interest of the pro25 gram, the Secretary shall award grants for a pe-
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† HR 2642 EAS 

1 riod of more than 1 year, but not more than 3 

2 years, to a center that has successfully met the 

3 requirements of paragraph (5)(B), as determined 

4 by the Secretary. 

5 ‘‘(7) AUTHORITY TO EXTEND GRANT PERIOD.— 

6 The Secretary may extend for 1 additional 12-month 

7 period the period during which a grantee may use a 

8 grant made under this subsection. 

9 ‘‘(8) TECHNICAL ASSISTANCE TO PREVENT EX10 CESSIVE UNEMPLOYMENT OR UNDEREMPLOYMENT.— 

11 ‘‘(A) IN GENERAL.—In carrying out this 

12 subsection, the Secretary may provide technical 

13 assistance to alleviate or prevent conditions of 

14 excessive unemployment, underemployment, out15 migration, or low employment growth in eco16 nomically distressed rural areas that the Sec17 retary determines have a substantial need for the 

18 assistance. 

19 ‘‘(B) INCLUSIONS.—The assistance may in20 clude planning and feasibility studies, manage21 ment and operational assistance, and studies 

22 evaluating the need for the development potential 

23 of projects that increase employment and im24 prove economic growth in the areas. 
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† HR 2642 EAS 

1 ‘‘(9) GRANTS TO DEFRAY ADMINISTRATIVE

2 COSTS.— 

3 ‘‘(A) IN GENERAL.—The Secretary may 

4 make grants to defray not to exceed 75 percent 

5 of the costs incurred by organizations and public 

6 bodies to carry out projects for which grants or 

7 loans are made under this subsection. 

8 ‘‘(B) COST-SHARING.—For purposes of de9 termining the non-Federal share of the costs, the 

10 Secretary shall include contributions in cash and 

11 in kind, fairly evaluated, including premises, 

12 equipment, and services. 

13 ‘‘(10) COOPERATIVE RESEARCH PROGRAM.—The 

14 Secretary shall offer to enter into a cooperative re15 search agreement with 1 or more qualified academic 

16 institutions in each fiscal year to conduct research on 

17 the effects of all types of cooperatives on the national 

18 economy. 

19 ‘‘(11) ADDRESSING NEEDS OF MINORITY COMMU20 NITIES.— 

21 ‘‘(A) IN GENERAL.—If the total amount ap22 propriated under paragraph (13) for a fiscal 

23 year exceeds $7,500,000, the Secretary shall re24 serve an amount equal to 20 percent of the total 

25 amount appropriated for grants for cooperative 
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† HR 2642 EAS 

1 development centers, individual cooperatives, or 

2 groups of cooperatives— 

3 ‘‘(i) that serve socially disadvantaged 

4 groups; and 

5 ‘‘(ii) a majority of the boards of direc6 tors or governing boards of which are com7 prised of individuals who are members of 

8 socially disadvantaged groups. 

9 ‘‘(B) INSUFFICIENT APPLICATIONS.—To the 

10 extent there are insufficient applications to carry 

11 out subparagraph (A), the Secretary shall use the 

12 funds as otherwise authorized by this subsection. 

13 ‘‘(12) INTERAGENCY WORKING GROUP.—Not later 

14 than 90 days after the date of enactment of the Agri15 culture Reform, Food, and Jobs Act of 2013, the Sec16 retary shall coordinate and chair an interagency 

17 working group to foster cooperative development and 

18 ensure coordination with Federal agencies and na19 tional and local cooperative organizations that have 

20 cooperative programs and interests. 

21 ‘‘(13) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 this subsection $50,000,000 for each of fiscal years 

24 2014 through 2018. 
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1 ‘‘(d) APPROPRIATE TECHNOLOGY TRANSFER FOR

2 RURAL AREAS PROGRAM.— 

3 ‘‘(1) DEFINITION OF NATIONAL NONPROFIT AGRI4 CULTURAL ASSISTANCE INSTITUTION.—In this sub5 section, the term ‘national nonprofit agricultural as6 sistance institution’ means an organization that— 

7 ‘‘(A) is described in section 501(c)(3) of the 

8 Internal Revenue Code of 1986 and exempt from 

9 taxation under 501(a) of that Code; 

10 ‘‘(B) has staff and offices in multiple re11 gions of the United States; 

12 ‘‘(C) has experience and expertise in oper13 ating national agricultural technical assistance 

14 programs; 

15 ‘‘(D) expands markets for the agricultural 

16 commodities produced by producers through the 

17 use of practices that enhance the environment, 

18 natural resource base, and quality of life; and 

19 ‘‘(E) improves the economic viability of ag20 ricultural operations. 

21 ‘‘(2) ESTABLISHMENT.—The Secretary shall es22 tablish a national appropriate technology transfer for 

23 rural areas program to assist agricultural producers 

24 that are seeking information— 

25 ‘‘(A) to reduce input costs; 
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† HR 2642 EAS 

1 ‘‘(B) to conserve energy resources; 

2 ‘‘(C) to diversify operations through new 

3 energy crops and energy generation facilities; 

4 and 

5 ‘‘(D) to expand markets for agricultural 

6 commodities produced by the producers by using 

7 practices that enhance the environment, natural 

8 resource base, and quality of life. 

9 ‘‘(3) IMPLEMENTATION.— 

10 ‘‘(A) IN GENERAL.—The Secretary shall 

11 carry out the program under this subsection by 

12 making a grant to, or offering to enter into a co13 operative agreement with, a national nonprofit 

14 agricultural assistance institution. 

15 ‘‘(B) GRANT AMOUNT.—A grant made, or 

16 cooperative agreement entered into, under sub17 paragraph (A) shall provide 100 percent of the 

18 cost of providing information described in para19 graph (2). 

20 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

21 There is authorized to be appropriated to carry out 

22 this subsection $5,000,000 for each of fiscal years 

23 2014 through 2018. 

24 ‘‘(e) BUSINESS AND INDUSTRY DIRECT AND GUARAN25 TEED LOANS.— 
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† HR 2642 EAS 

1 ‘‘(1) DEFINITION OF BUSINESS AND INDUSTRY

2 LOAN.—In this section, the term ‘business and indus3 try loan’ means a direct loan that is made, or a loan 

4 that is guaranteed, by the Secretary under this sub5 section. 

6 ‘‘(2) LOAN PURPOSES.—The Secretary may make 

7 business and industry loans to public, private, or co8 operative organizations organized for profit or non9 profit, private investment funds that invest primarily 

10 in cooperative organizations, or to individuals— 

11 ‘‘(A) to improve, develop, or finance busi12 ness, industry, and employment and improve the 

13 economic and environmental climate in rural 

14 communities, including pollution abatement and 

15 control; 

16 ‘‘(B) to conserve, develop, and use water for 

17 aquaculture purposes in rural areas; and 

18 ‘‘(C) to reduce the reliance on nonrenewable 

19 energy resources by encouraging the development 

20 and construction of renewable energy systems 

21 (including solar energy systems, wind energy 

22 systems, and anaerobic digestors for the purpose 

23 of energy generation), including the modification 

24 of existing systems, in rural areas. 
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† HR 2642 EAS 

1 ‘‘(3) LOAN GUARANTEES FOR CERTAIN LOANS.— 

2 The Secretary may guarantee loans made under this 

3 subsection to finance the issuance of bonds for the 

4 projects described in paragraph (2). 

5 ‘‘(4) MAXIMUM AMOUNT OF PRINCIPAL.— 

6 ‘‘(A) IN GENERAL.—Except as otherwise 

7 provided in this paragraph, no loan may be 

8 made or guaranteed under this subsection that 

9 exceeds $25,000,000 in principal amount. 

10 ‘‘(B) LIMITATIONS ON LOAN GUARANTEES

11 FOR COOPERATIVE ORGANIZATIONS.— 

12 ‘‘(i) PRINCIPAL AMOUNT.—Subject to 

13 clause (ii), the principal amount of a busi14 ness and industry loan made to a coopera15 tive organization and guaranteed under this 

16 subsection shall not exceed $40,000,000. 

17 ‘‘(ii) USE.—To be eligible for a guar18 antee under this subsection for a business 

19 and industry loan made to a cooperative or20 ganization, the principal amount of the 

21 loan in excess of $25,000,000 shall be used 

22 to carry out a project that is in a rural 

23 area and— 
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† HR 2642 EAS 

1 ‘‘(I) provides for the value-added 

2 processing of agricultural commodities; 

3 or 

4 ‘‘(II) significantly benefits 1 or 

5 more entities eligible for assistance for 

6 the purposes described in paragraph 

7 (2), as determined by the Secretary. 

8 ‘‘(iii) APPLICATIONS.—If a cooperative 

9 organization submits an application for a 

10 guarantee under this paragraph, the Sec11 retary shall make the determination whether 

12 to approve the application, and the Sec13 retary may not delegate this authority. 

14 ‘‘(iv) MAXIMUM AMOUNT.—The total 

15 amount of business and industry loans 

16 made to cooperative organizations and 

17 guaranteed for a fiscal year under this sub18 section with principal amounts that are in 

19 excess of $25,000,000 may not exceed 10 

20 percent of the total amount of business and 

21 industry loans guaranteed for the fiscal 

22 year under this subsection. 

23 ‘‘(5) FEES.—The Secretary may assess a 1-time 

24 fee and an annual renewal fee for any guaranteed 

25 business and industry loan in an amount that does 
651 

† HR 2642 EAS 

1 not exceed 3 percent of the guaranteed principal por2 tion of the loan. 

3 ‘‘(6) INTANGIBLE ASSETS.—In determining 

4 whether a cooperative organization is eligible for a 

5 guaranteed business and industry loan, the Secretary 

6 may consider the market value of a properly ap7 praised brand name, patent, or trademark of the co8 operative. 

9 ‘‘(7) LOAN APPRAISALS.—The Secretary may re10 quire that any appraisal made in connection with a 

11 business and industry loan be conducted by a special12 ized appraiser that uses standards that are com13 parable to standards used for similar purposes in the 

14 private sector, as determined by the Secretary. 

15 ‘‘(8) LOAN GUARANTEES FOR THE PURCHASE OF

16 COOPERATIVE STOCK.— 

17 ‘‘(A) IN GENERAL.—The Secretary may 

18 guarantee a business and industry loan to indi19 vidual farmers to purchase capital stock of a 

20 farmer cooperative established for the purpose of 

21 processing an agricultural commodity. 

22 ‘‘(B) PROCESSING CONTRACTS DURING INI23 TIAL PERIOD.—A cooperative described in sub24 paragraph (A) for which a farmer receives a 

25 guarantee to purchase stock under that subpara-
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† HR 2642 EAS 

1 graph may contract for services to process agri2 cultural commodities or otherwise process value 

3 added for the period beginning on the date of the 

4 startup of the cooperative in order to provide 

5 adequate time for the planning and construction 

6 of the processing facility of the cooperative. 

7 ‘‘(C) FINANCIAL INFORMATION.—Financial 

8 information required by the Secretary from a 

9 farmer as a condition of making a business and 

10 industry loan guarantee under this paragraph 

11 shall be provided in the manner generally re12 quired by commercial agricultural lenders in the 

13 applicable area. 

14 ‘‘(9) LOANS TO COOPERATIVES.— 

15 ‘‘(A) ELIGIBILITY.— 

16 ‘‘(i) IN GENERAL.—The Secretary may 

17 make or guarantee a business and industry 

18 loan to a cooperative organization that is 

19 headquartered in a metropolitan area if the 

20 loan is— 

21 ‘‘(I) used for a project or venture 

22 described in paragraph (2) that is lo23 cated in a rural area; or 

24 ‘‘(II) a loan guarantee that meets 

25 the requirements of paragraph (10). 
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† HR 2642 EAS 

1 ‘‘(ii) EQUITY.—The Secretary may 

2 guarantee a loan made for the purchase of 

3 preferred stock or similar equity issued by 

4 a cooperative organization or a fund that 

5 invests primarily in cooperative organiza6 tions, if the guarantee significantly benefits 

7 1 or more entities eligible for assistance for 

8 the purposes described in paragraph (2)(A), 

9 as determined by the Secretary. 

10 ‘‘(B) REFINANCING.—A cooperative organi11 zation that is eligible for a business and indus12 try loan shall be eligible to refinance an existing 

13 business and industry loan with a lender if— 

14 ‘‘(i) the cooperative organization— 

15 ‘‘(I) is current and performing 

16 with respect to the existing loan; and 

17 ‘‘(II)(aa) is not, and has not been, 

18 in payment default, with respect to the 

19 existing loan; or 

20 ‘‘(bb) has not converted any of the 

21 collateral with respect to the existing 

22 loan; and 

23 ‘‘(ii) there is adequate security or full 

24 collateral for the refinanced loan. 
654 

† HR 2642 EAS 

1 ‘‘(10) LOAN GUARANTEES IN NONRURAL

2 AREAS.—The Secretary may guarantee a business 

3 and industry loan to a cooperative organization for 

4 a facility that is not located in a rural area if— 

5 ‘‘(A) the primary purpose of the loan guar6 antee is for a facility to provide value-added 

7 processing for agricultural producers that are lo8 cated within 80 miles of the facility; 

9 ‘‘(B) the applicant demonstrates to the Sec10 retary that the primary benefit of the loan guar11 antee will be to provide employment for residents 

12 of a rural area; and 

13 ‘‘(C) the total amount of business and in14 dustry loans guaranteed for a fiscal year under 

15 this paragraph does not exceed 10 percent of the 

16 business and industry loans guaranteed for the 

17 fiscal year under this subsection. 

18 ‘‘(11) LOCALLY OR REGIONALLY PRODUCED AG19 RICULTURAL FOOD PRODUCTS.— 

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

21 ‘‘(i) LOCALLY OR REGIONALLY PRO22 DUCED AGRICULTURAL FOOD PRODUCT.— 

23 The term ‘locally or regionally produced ag24 ricultural food product’ means any agricul-
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† HR 2642 EAS 

1 tural food product that is raised, produced, 

2 and distributed in— 

3 ‘‘(I) the locality or region in 

4 which the final product is marketed, so 

5 that the total distance that the product 

6 is transported is less than 400 miles 

7 from the origin of the product; or 

8 ‘‘(II) the State in which the prod9 uct is produced. 

10 ‘‘(ii) UNDERSERVED COMMUNITY.—The 

11 term ‘underserved community’ means a 

12 community (including an urban or rural 

13 community and an Indian tribal commu14 nity) that, as determined by the Secretary, 

15 has— 

16 ‘‘(I) limited access to affordable, 

17 healthy foods, including fresh fruits 

18 and vegetables, in grocery retail stores 

19 or farmer-to-consumer direct markets; 

20 and 

21 ‘‘(II) a high rate of hunger or food 

22 insecurity or a high poverty rate. 

23 ‘‘(B) LOAN AND LOAN GUARANTEE PRO24 GRAM.— 
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1 ‘‘(i) IN GENERAL.—The Secretary shall 

2 make or guarantee loans to individuals, co3 operatives, cooperative organizations, busi4 nesses, and other entities to establish and 

5 facilitate enterprises that process, distribute, 

6 aggregate, store, and market locally or re7 gionally produced agricultural food prod8 ucts to support community development and 

9 farm income. 

10 ‘‘(ii) REQUIREMENT.—The recipient of 

11 a loan or loan guarantee under this para12 graph shall include in an appropriate 

13 agreement with retail and institutional fa14 cilities to which the recipient sells locally or 

15 regionally produced agricultural food prod16 ucts a requirement to inform consumers of 

17 the retail or institutional facilities that the 

18 consumers are purchasing or consuming lo19 cally or regionally produced agricultural 

20 food products. 

21 ‘‘(iii) PRIORITY.—In making or guar22 anteeing a loan under this paragraph, the 

23 Secretary shall give priority to projects that 

24 have components benefitting underserved 

25 communities. 
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1 ‘‘(iv) REPORTS.—Not later than 2 

2 years after the date of enactment of the Ag3 riculture Reform, Food, and Jobs Act of 

4 2013 and annually thereafter, the Secretary 

5 shall submit to the Committee on Agri6 culture of the House of Representatives and 

7 the Committee on Agriculture, Nutrition, 

8 and Forestry of the Senate, and publish on 

9 the Internet, a report that describes projects 

10 carried out using loans or loan guarantees 

11 made under clause (i), including— 

12 ‘‘(I) summary information about 

13 all projects; 

14 ‘‘(II) the characteristics of the 

15 communities served; and 

16 ‘‘(III) resulting benefits. 

17 ‘‘(v) RESERVATION OF FUNDS.—For 

18 each of fiscal years 2014 through 2018, the 

19 Secretary shall reserve not less than 5 per20 cent of the total amount of funds made 

21 available to carry out this subsection to 

22 carry out this paragraph until April 1 of 

23 the fiscal year. 

24 ‘‘(vi) OUTREACH.—The Secretary shall 

25 develop and implement an outreach plan to 
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1 publicize the availability of loans and loan 

2 guarantees under this paragraph, working 

3 closely with rural cooperative development 

4 centers, credit unions, community develop5 ment financial institutions, regional eco6 nomic development authorities, and other fi7 nancial and economic development entities. 

8 ‘‘(12) AUTHORIZATION OF APPROPRIATIONS.— 

9 There is authorized to be appropriated to carry out 

10 this subsection $75,000,000 for each of fiscal years 

11 2014 through 2018. 

12 ‘‘(f) RELENDING PROGRAMS.— 

13 ‘‘(1) INTERMEDIATE RELENDING PROGRAM.— 

14 ‘‘(A) IN GENERAL.—The Secretary may 

15 make or guarantee loans to eligible entities de16 scribed in subparagraph (B) so that the eligible 

17 entities may relend the funds to individuals and 

18 entities for the purposes described in subpara19 graph (C). 

20 ‘‘(B) ELIGIBLE ENTITIES.—Entities eligible 

21 for loans and loan guarantees described in sub22 paragraph (A) are— 

23 ‘‘(i) public agencies; 

24 ‘‘(ii) Indian tribes; 

25 ‘‘(iii) cooperatives; and 
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† HR 2642 EAS 

1 ‘‘(iv) nonprofit corporations. 

2 ‘‘(C) ELIGIBLE PURPOSES.—The proceeds 

3 from loans made or guaranteed by the Secretary 

4 pursuant to subparagraph (A) may be relent by 

5 eligible entities for projects that— 

6 ‘‘(i) predominately serve communities 

7 in rural areas; and 

8 ‘‘(ii) as determined by the Secretary— 

9 ‘‘(I) promote community develop10 ment; 

11 ‘‘(II) establish new businesses; 

12 ‘‘(III) establish and support 

13 microlending programs; and 

14 ‘‘(IV) create or retain employment 

15 opportunities. 

16 ‘‘(D) AUTHORIZATION OF APPROPRIA17 TIONS.—There is authorized to be appropriated 

18 to carry out this subsection $50,000,000 for each 

19 of fiscal years 2014 through 2018. 

20 ‘‘(2) RURAL MICROENTREPRENEUR ASSISTANCE

21 PROGRAM.— 

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

23 ‘‘(i) MICROENTREPRENEUR.—The term 

24 ‘microentrepreneur’ means an owner and 

25 operator, or prospective owner and operator, 
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1 of a rural microenterprise who is unable to 

2 obtain sufficient training, technical assist3 ance, or credit other than under this sub4 section, as determined by the Secretary. 

5 ‘‘(ii) MICROENTERPRISE DEVELOP6 MENT ORGANIZATION.—The term ‘microen7 terprise development organization’ means 

8 an organization that is— 

9 ‘‘(I) a nonprofit entity; 

10 ‘‘(II) an Indian tribe, the tribal 

11 government of which certifies to the 

12 Secretary that— 

13 ‘‘(aa) no microenterprise de14 velopment organization serves the 

15 Indian tribe; and 

16 ‘‘(bb) no rural microentre17 preneur assistance program exists 

18 under the jurisdiction of the In19 dian tribe; 

20 ‘‘(III) a public institution of 

21 higher education; or 

22 ‘‘(IV) a collaboration of rural 

23 nonprofit entities serving a region or 

24 State, if 1 lead nonprofit entity is the 
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1 sole underwriter of all loans and is re2 sponsible for associated risks. 

3 ‘‘(iii) MICROLOAN.—The term 

4 ‘microloan’ means a business loan of not 

5 more than $50,000 that is provided to a 

6 rural microenterprise. 

7 ‘‘(iv) PROGRAM.—The term ‘program’ 

8 means the rural microentrepreneur assist9 ance program established under subpara10 graph (B). 

11 ‘‘(v) RURAL MICROENTERPRISE.—The 

12 term ‘rural microenterprise’ means a busi13 ness entity with not more than 10 full-time 

14 equivalent employees located in a rural 

15 area. 

16 ‘‘(vi) TRAINING.—The term ‘training’ 

17 means teaching broad business principles or 

18 general business skills in a group or public 

19 setting. 

20 ‘‘(vii) TECHNICAL ASSISTANCE.—The 

21 term ‘technical assistance’ means working 

22 with a business client in a 1-to-1 manner to 

23 provide business and financial management 

24 counseling, assist in the preparation of 

25 business or marketing plans, or provide 
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1 other skills tailored to an individual micro2 entrepreneur. 

3 ‘‘(B) RURAL MICROENTREPRENEUR ASSIST4 ANCE PROGRAM.— 

5 ‘‘(i) ESTABLISHMENT.—The Secretary 

6 shall establish a rural microentrepreneur 

7 assistance program to provide loans and 

8 grants to support microentrepreneurs in the 

9 development and ongoing success of rural 

10 microenterprises. 

11 ‘‘(ii) PURPOSE.—The purpose of the 

12 program is to provide microentrepreneurs 

13 with— 

14 ‘‘(I) the skills necessary to estab15 lish new rural microenterprises; and 

16 ‘‘(II) continuing technical and fi17 nancial assistance related to the suc18 cessful operation of rural microenter19 prises. 

20 ‘‘(iii) LOANS.— 

21 ‘‘(I) IN GENERAL.—The Secretary 

22 shall make loans to microenterprise de23 velopment organizations for the pur24 pose of providing fixed-interest rate 

25 microloans to microentrepreneurs for 
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1 startup and growing rural microenter2 prises. 

3 ‘‘(II) LOAN TERMS.—A loan made 

4 by the Secretary to a microenterprise 

5 development organization under this 

6 subparagraph shall— 

7 ‘‘(aa) be for a term not to ex8 ceed 20 years; and 

9 ‘‘(bb) bear an annual interest 

10 rate of at least 1 percent. 

11 ‘‘(III) LOAN LOSS RESERVE

12 FUND.—The Secretary shall require 

13 each microenterprise development orga14 nization that receives a loan under this 

15 subparagraph to— 

16 ‘‘(aa) establish a loan loss re17 serve fund; and 

18 ‘‘(bb) maintain the reserve 

19 fund in an amount equal to at 

20 least 5 percent of the outstanding 

21 balance of such loans owed by the 

22 microenterprise development orga23 nization, until all obligations 

24 owed to the Secretary under this 

25 subparagraph are repaid. 
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1 ‘‘(IV) DEFERRAL OF INTEREST

2 AND PRINCIPAL.—The Secretary may 

3 permit the deferral of payments on 

4 principal and interest due on a loan to 

5 a microenterprise development organi6 zation made under this paragraph for 

7 a 2-year period beginning on the date 

8 on which the loan is made. 

9 ‘‘(iv) GRANTS TO SUPPORT RURAL MI10 CROENTERPRISE DEVELOPMENT.— 

11 ‘‘(I) IN GENERAL.—The Secretary 

12 shall make grants to microenterprise 

13 development organizations— 

14 ‘‘(aa) to provide training 

15 and technical assistance, and 

16 other related services to rural 

17 microentrepreneurs; and 

18 ‘‘(bb) to carry out such other 

19 projects and activities as the Sec20 retary determines appropriate to 

21 further the purposes of the pro22 gram. 

23 ‘‘(II) SELECTION.—In making 

24 grants under subclause (I), the Sec25 retary shall— 
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† HR 2642 EAS 

1 ‘‘(aa) place an emphasis on 

2 microenterprise development orga3 nizations that serve microentre4 preneurs that are located in rural 

5 areas that have suffered signifi6 cant outward migration, as deter7 mined by the Secretary; and 

8 ‘‘(bb) ensure, to the max9 imum extent practicable, that 

10 grant recipients include microen11 terprise development organiza12 tions of varying sizes and that 

13 serve racially and ethnically di14 verse populations. 

15 ‘‘(v) GRANTS TO ASSIST MICROENTRE16 PRENEURS.— 

17 ‘‘(I) IN GENERAL.—The Secretary 

18 shall make annual grants to microen19 terprise development organizations to 

20 provide technical assistance to micro21 entrepreneurs that— 

22 ‘‘(aa) received a loan from 

23 the microenterprise development 

24 organization under subparagraph 

25 (B)(iii); or 
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1 ‘‘(bb) are seeking a loan from 

2 the microenterprise development 

3 organization under subparagraph 

4 (B)(iii). 

5 ‘‘(II) MAXIMUM AMOUNT OF

6 TECHNICAL ASSISTANCE GRANT.—The 

7 maximum amount of a grant under 

8 this clause shall be in an amount equal 

9 to not more than 25 percent of the 

10 total outstanding balance of microloans 

11 made by the microenterprise develop12 ment organization under clause (iii), 

13 as of the date the grant is awarded. 

14 ‘‘(vi) ADMINISTRATIVE EXPENSES.— 

15 Not more than 10 percent of a grant re16 ceived by a microenterprise development or17 ganization for a fiscal year under this sub18 paragraph may be used to pay administra19 tive expenses. 

20 ‘‘(C) ADMINISTRATION.— 

21 ‘‘(i) MATCHING REQUIREMENT.—As a 

22 condition of any grant made under clauses 

23 (iv) and (v) of subparagraph (B), the Sec24 retary shall require the microenterprise de25 velopment organization to match not less 
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† HR 2642 EAS 

1 than 15 percent of the total amount of the 

2 grant in the form of matching funds (in3 cluding community development block 

4 grants), indirect costs, or in-kind goods or 

5 services. 

6 ‘‘(ii) OVERSIGHT.—At a minimum, 

7 not later than December 1 of each fiscal 

8 year, a microenterprise development organi9 zation that receives a loan or grant under 

10 this section shall provide to the Secretary 

11 such information as the Secretary may re12 quire to ensure that assistance provided 

13 under this section is used for the purposes 

14 for which the loan or grant was made. 

15 ‘‘(D) AUTHORIZATION OF APPROPRIA16 TIONS.—There is authorized to be appropriated 

17 to carry out this paragraph $40,000,000 for each 

18 of fiscal years 2014 through 2018. 

19 ‘‘(E) MANDATORY FUNDING FOR FISCAL

20 YEARS 2014 THROUGH 2018.—Of the funds of the 

21 Commodity Credit Corporation, the Secretary 

22 shall use to carry out this paragraph $3,000,000 

23 for each of fiscal years 2014 through 2018, to re24 main available until expended. 
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1 ‘‘SEC. 3602. RURAL BUSINESS INVESTMENT PROGRAM. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) ARTICLES.—The term ‘articles’ means arti4 cles of incorporation for an incorporated body or the 

5 functional equivalent or other similar documents 

6 specified by the Secretary for other business entities. 

7 ‘‘(2) DEVELOPMENTAL VENTURE CAPITAL.—The 

8 term ‘developmental venture capital’ means capital in 

9 the form of equity capital investments in rural busi10 ness investment companies with an objective of fos11 tering economic development in rural areas. 

12 ‘‘(3) EMPLOYEE WELFARE BENEFIT PLAN; PEN13 SION PLAN.— 

14 ‘‘(A) IN GENERAL.—The terms ‘employee 

15 welfare benefit plan’ and ‘pension plan’ have the 

16 meanings given the terms in section 3 of the Em17 ployee Retirement Income Security Act of 1974 

18 (29 U.S.C. 1002). 

19 ‘‘(B) INCLUSIONS.—The terms ‘employee 

20 welfare benefit plan’ and ‘pension plan’ in21 clude— 

22 ‘‘(i) public and private pension or re23 tirement plans subject to this subtitle; and 

24 ‘‘(ii) similar plans not covered by this 

25 subtitle that have been established, and that 

26 are maintained, by the Federal Government 
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1 or any State (including by a political sub2 division, agency, or instrumentality of the 

3 Federal Government or a State) for the ben4 efit of employees. 

5 ‘‘(4) EQUITY CAPITAL.—The term ‘equity cap6 ital’ means common or preferred stock or a similar 

7 instrument, including subordinated debt with equity 

8 features. 

9 ‘‘(5) LEVERAGE.—The term ‘leverage’ includes— 

10 ‘‘(A) debentures purchased or guaranteed by 

11 the Secretary; 

12 ‘‘(B) participating securities purchased or 

13 guaranteed by the Secretary; and 

14 ‘‘(C) preferred securities outstanding as of 

15 the date of enactment of the Agriculture Reform, 

16 Food, and Jobs Act of 2013. 

17 ‘‘(6) LICENSE.—The term ‘license’ means a li18 cense issued by the Secretary in accordance with in 

19 subsection (d)(5). 

20 ‘‘(7) LIMITED LIABILITY COMPANY.—The term 

21 ‘limited liability company’ means a business entity 

22 that is organized and operating in accordance with a 

23 State limited liability company law approved by the 

24 Secretary. 
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1 ‘‘(8) MEMBER.—The term ‘member’ means, with 

2 respect to a rural business investment company that 

3 is a limited liability company, a holder of an owner4 ship interest, or a person otherwise admitted to mem5 bership in the limited liability company. 

6 ‘‘(9) OPERATIONAL ASSISTANCE.—The term 

7 ‘operational assistance’ means management, mar8 keting, and other technical assistance that assists a 

9 rural business concern with business development. 

10 ‘‘(10) PARTICIPATION AGREEMENT.—The term 

11 ‘participation agreement’ means an agreement, be12 tween the Secretary and a rural business investment 

13 company granted final approval under subsection 

14 (d)(5), that requires the rural business investment 

15 company to make investments in smaller enterprises 

16 in rural areas. 

17 ‘‘(11) PRIVATE CAPITAL.— 

18 ‘‘(A) IN GENERAL.—The term ‘private cap19 ital’ means the total of— 

20 ‘‘(i)(I) the paid-in capital and paid-in 

21 surplus of a corporate rural business invest22 ment company; 

23 ‘‘(II) the contributed capital of the 

24 partners of a partnership rural business in25 vestment company; or 
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1 ‘‘(III) the equity investment of the 

2 members of a limited liability company 

3 rural business investment company; and 

4 ‘‘(ii) unfunded binding commitments 

5 from investors that meet criteria established 

6 by the Secretary to contribute capital to the 

7 rural business investment company, except 

8 that— 

9 ‘‘(I) unfunded commitments may 

10 be counted as private capital for pur11 poses of approval by the Secretary of 

12 any request for leverage; but 

13 ‘‘(II) leverage shall not be funded 

14 based on the commitments. 

15 ‘‘(B) EXCLUSIONS.—The term ‘private cap16 ital’ does not include— 

17 ‘‘(i) any funds borrowed by a rural 

18 business investment company from any 

19 source; 

20 ‘‘(ii) any funds obtained through the 

21 issuance of leverage; or 

22 ‘‘(iii) any funds obtained directly or 

23 indirectly from the Federal Government or 

24 any State (including by a political subdivi-
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1 sion, agency, or instrumentality of the Fed2 eral Government or a State), except for— 

3 ‘‘(I) funds obtained from the busi4 ness revenues (excluding any govern5 mental appropriation) of any Feder6 ally chartered or government-sponsored 

7 enterprise established prior to the date 

8 of enactment of the Agriculture Re9 form, Food, and Jobs Act of 2013; 

10 ‘‘(II) funds invested by an em11 ployee welfare benefit plan or pension 

12 plan; and 

13 ‘‘(III) any qualified nonprivate 

14 funds (if the investors of the qualified 

15 nonprivate funds do not control, di16 rectly or indirectly, the management, 

17 board of directors, general partners, or 

18 members of the rural business invest19 ment company). 

20 ‘‘(12) QUALIFIED NONPRIVATE FUNDS.—The 

21 term ‘qualified nonprivate funds’ means any— 

22 ‘‘(A) funds directly or indirectly invested in 

23 any applicant or rural business investment com24 pany on or before the date of enactment of the 

25 Agriculture Reform, Food, and Jobs Act of 2013 
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† HR 2642 EAS 

1 by any Federal agency, other than the Depart2 ment, under a provision of law explicitly man3 dating the inclusion of those funds in the defini4 tion of the term ‘private capital’; and 

5 ‘‘(B) funds invested in any applicant or 

6 rural business investment company by 1 or more 

7 entities of any State (including by a political 

8 subdivision, agency, or instrumentality of the 

9 State and including any guarantee extended by 

10 those entities) in an aggregate amount that does 

11 not exceed 33 percent of the private capital of the 

12 applicant or rural business investment company. 

13 ‘‘(13) RURAL BUSINESS CONCERN.—The term 

14 ‘rural business concern’ means— 

15 ‘‘(A) a public, private, or cooperative for16 profit or nonprofit organization; 

17 ‘‘(B) a for-profit or nonprofit business con18 trolled by an Indian tribe; or 

19 ‘‘(C) any other person or entity that pri20 marily operates in a rural area, as determined 

21 by the Secretary. 

22 ‘‘(14) RURAL BUSINESS INVESTMENT COM23 PANY.—The term ‘rural business investment company’ 

24 means a company that— 
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1 ‘‘(A) has been granted final approval by the 

2 Secretary under subsection (d)(5); and 

3 ‘‘(B) has entered into a participation agree4 ment with the Secretary. 

5 ‘‘(15) SMALLER ENTERPRISE.— 

6 ‘‘(A) IN GENERAL.—The term ‘smaller en7 terprise’ means any rural business concern that, 

8 together with its affiliates— 

9 ‘‘(i) has— 

10 ‘‘(I) a net financial worth of not 

11 more than $6,000,000, as of the date 

12 on which assistance is provided under 

13 this section to the rural business con14 cern; and 

15 ‘‘(II) except as provided in sub16 paragraph (B), an average net income 

17 for the 2-year period preceding the 

18 date on which assistance is provided 

19 under this section to the rural business 

20 concern, of not more than $2,000,000, 

21 after Federal income taxes (excluding 

22 any carryover losses); or 

23 ‘‘(ii) satisfies the standard industrial 

24 classification size standards established by 

25 the Administrator of the Small Business 
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1 Administration for the industry in which 

2 the rural business concern is primarily en3 gaged. 

4 ‘‘(B) EXCEPTION.—For purposes of sub5 paragraph (A)(i)(II), if the rural business con6 cern is not required by law to pay Federal in7 come taxes at the enterprise level, but is required 

8 to pass income through to the shareholders, part9 ners, beneficiaries, or other equitable owners of 

10 the business concern, the net income of the busi11 ness concern shall be determined by allowing a 

12 deduction in an amount equal to the total of— 

13 ‘‘(i) if the rural business concern is not 

14 required by law to pay State (and local, if 

15 any) income taxes at the enterprise level, 

16 the product obtained by multiplying— 

17 ‘‘(I) the net income (determined 

18 without regard to this subparagraph); 

19 by 

20 ‘‘(II) the marginal State income 

21 tax rate (or by the combined State and 

22 local income tax rates, as applicable) 

23 that would have applied if the business 

24 concern were a corporation; and 
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1 ‘‘(ii) the product obtained by multi2 plying— 

3 ‘‘(I) the net income (so deter4 mined) less any deduction for State 

5 (and local) income taxes calculated 

6 under clause (i); by 

7 ‘‘(II) the marginal Federal income 

8 tax rate that would have applied if the 

9 rural business concern were a corpora10 tion. 

11 ‘‘(b) PURPOSES.—The purposes of the Rural Business 

12 Investment Program established under this section are— 

13 ‘‘(1) to promote economic development and the 

14 creation of wealth and job opportunities in rural 

15 areas and among individuals living in those areas by 

16 encouraging developmental venture capital invest17 ments in smaller enterprises primarily located in 

18 rural areas; and 

19 ‘‘(2) to establish a developmental venture capital 

20 program, with the mission of addressing the unmet 

21 equity investment needs of small enterprises located 

22 in rural areas, by authorizing the Secretary— 

23 ‘‘(A) to enter into participation agreements 

24 with rural business investment companies; 
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† HR 2642 EAS 

1 ‘‘(B) to guarantee debentures of rural busi2 ness investment companies to enable each rural 

3 business investment company to make develop4 mental venture capital investments in smaller 

5 enterprises in rural areas; and 

6 ‘‘(C) to make grants to rural business in7 vestment companies, and to other entities, for the 

8 purpose of providing operational assistance to 

9 smaller enterprises financed, or expected to be fi10 nanced, by rural business investment companies. 

11 ‘‘(c) ESTABLISHMENT.—In accordance with this sub12 title, the Secretary shall establish a Rural Business Invest13 ment Program, under which the Secretary may— 

14 ‘‘(1) enter into participation agreements with 

15 companies granted final approval under subsection 

16 (d)(5) for the purposes described in subsection (b); 

17 ‘‘(2) guarantee the debentures issued by rural 

18 business investment companies as provided in sub19 section (e); and 

20 ‘‘(3) make grants to rural business investment 

21 companies, and to other entities, under subsection (h). 

22 ‘‘(d) SELECTION OF RURAL BUSINESS INVESTMENT

23 COMPANIES.— 

24 ‘‘(1) ELIGIBILITY.—A company shall be eligible 

25 to apply to participate, as a rural business invest-
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† HR 2642 EAS 

1 ment company, in the program established under this 

2 section if— 

3 ‘‘(A) the company is a newly formed for4 profit entity or a newly formed for-profit sub5 sidiary of such an entity; 

6 ‘‘(B) the company has a management team 

7 with experience in community development fi8 nancing or relevant venture capital financing; 

9 and 

10 ‘‘(C) the company will invest in enterprises 

11 that will create wealth and job opportunities in 

12 rural areas, with an emphasis on smaller enter13 prises. 

14 ‘‘(2) APPLICATION.—To participate, as a rural 

15 business investment company, in the program estab16 lished under this section, a company meeting the eli17 gibility requirements of paragraph (1) shall submit 

18 an application to the Secretary that includes— 

19 ‘‘(A) a business plan describing how the 

20 company intends to make successful develop21 mental venture capital investments in identified 

22 rural areas; 

23 ‘‘(B) information regarding the community 

24 development finance or relevant venture capital 
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† HR 2642 EAS 

1 qualifications and general reputation of the 

2 management of the company; 

3 ‘‘(C) a description of how the company in4 tends to work with community-based organiza5 tions and local entities (including local economic 

6 development companies, local lenders, and local 

7 investors) and to seek to address the unmet eq8 uity capital needs of the communities served; 

9 ‘‘(D) a proposal describing how the com10 pany intends to use the grant funds provided 

11 under this section to provide operational assist12 ance to smaller enterprises financed by the com13 pany, including information regarding whether 

14 the company intends to use licensed profes15 sionals, as necessary, on the staff of the company 

16 or from an outside entity; 

17 ‘‘(E) with respect to binding commitments 

18 to be made to the company under this section, an 

19 estimate of the ratio of cash to in-kind contribu20 tions; 

21 ‘‘(F) a description of the criteria to be used 

22 to evaluate whether and to what extent the com23 pany meets the purposes of the program estab24 lished under this section; 
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† HR 2642 EAS 

1 ‘‘(G) information regarding the manage2 ment and financial strength of any parent firm, 

3 affiliated firm, or any other firm essential to the 

4 success of the business plan of the company; and 

5 ‘‘(H) such other information as the Sec6 retary may require. 

7 ‘‘(3) STATUS.—Not later than 90 days after the 

8 initial receipt by the Secretary of an application 

9 under this subsection, the Secretary shall provide to 

10 the applicant a written report describing the status of 

11 the application and any requirements remaining for 

12 completion of the application. 

13 ‘‘(4) MATTERS CONSIDERED.—In reviewing and 

14 processing any application under this subsection, the 

15 Secretary shall— 

16 ‘‘(A) determine whether— 

17 ‘‘(i) the applicant meets the require18 ments of paragraph (5); and 

19 ‘‘(ii) the management of the applicant 

20 is qualified and has the knowledge, experi21 ence, and capability necessary to comply 

22 with this section; 

23 ‘‘(B) take into consideration— 

24 ‘‘(i) the need for and availability of fi25 nancing for rural business concerns in the 
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† HR 2642 EAS 

1 geographic area in which the applicant is to 

2 commence business; 

3 ‘‘(ii) the general business reputation of 

4 the owners and management of the appli5 cant; and 

6 ‘‘(iii) the probability of successful oper7 ations of the applicant, including adequate 

8 profitability and financial soundness; and 

9 ‘‘(C) not take into consideration any pro10 jected shortage or unavailability of grant funds 

11 or leverage. 

12 ‘‘(5) APPROVAL; LICENSE.— 

13 ‘‘(A) IN GENERAL.—Except as provided in 

14 subparagraph (B), the Secretary may approve 

15 an applicant to operate as a rural business in16 vestment company under this subtitle and license 

17 the applicant as a rural business investment 

18 company, if— 

19 ‘‘(i) the Secretary determines that the 

20 application satisfies the requirements of 

21 paragraph (2); 

22 ‘‘(ii) the area in which the rural busi23 ness investment company is to conduct its 

24 operations, and establishment of branch of-
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† HR 2642 EAS 

1 fices or agencies (if authorized by the arti2 cles), are approved by the Secretary; and 

3 ‘‘(iii) the applicant enters into a par4 ticipation agreement with the Secretary. 

5 ‘‘(B) CAPITAL REQUIREMENTS.— 

6 ‘‘(i) IN GENERAL.—Notwithstanding 

7 any other provision of this section, the Sec8 retary may approve an applicant to operate 

9 as a rural business investment company 

10 under this section and designate the appli11 cant as a rural business investment com12 pany, if the Secretary determines that the 

13 applicant— 

14 ‘‘(I) has private capital as deter15 mined by the Secretary; 

16 ‘‘(II) would otherwise be approved 

17 under this section, except that the ap18 plicant does not satisfy the require19 ments of subsection (i)(3); and 

20 ‘‘(III) has a viable business plan 

21 that— 

22 ‘‘(aa) reasonably projects 

23 profitable operations; and 

24 ‘‘(bb) has a reasonable time25 table for achieving a level of pri-
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† HR 2642 EAS 

1 vate capital that satisfies the re2 quirements of subsection (i)(3). 

3 ‘‘(ii) LEVERAGE.—An applicant ap4 proved under clause (i) shall not be eligible 

5 to receive leverage under this section until 

6 the applicant satisfies the requirements of 

7 section 3602(i)(3). 

8 ‘‘(iii) GRANTS.—An applicant ap9 proved under clause (i) shall be eligible for 

10 grants under subsection (h) in proportion to 

11 the private capital of the applicant, as de12 termined by the Secretary. 

13 ‘‘(e) DEBENTURES.— 

14 ‘‘(1) IN GENERAL.—The Secretary may guar15 antee the timely payment of principal and interest, 

16 as scheduled, on debentures issued by any rural busi17 ness investment company. 

18 ‘‘(2) TERMS AND CONDITIONS.—The Secretary 

19 may make guarantees under this subsection on such 

20 terms and conditions as the Secretary considers ap21 propriate, except that the term of any debenture guar22 anteed under this section shall not exceed 15 years. 

23 ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED

24 STATES.—Section 3901 shall apply to any guarantee 

25 under this subsection. 
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1 ‘‘(4) MAXIMUM GUARANTEE.—Under this sub2 section, the Secretary may— 

3 ‘‘(A) guarantee the debentures issued by a 

4 rural business investment company only to the 

5 extent that the total face amount of outstanding 

6 guaranteed debentures of the rural business in7 vestment company does not exceed the lesser of— 

8 ‘‘(i) 300 percent of the private capital 

9 of the rural business investment company; 

10 or 

11 ‘‘(ii) $105,000,000; and 

12 ‘‘(B) provide for the use of discounted de13 bentures. 

14 ‘‘(f) ISSUANCE AND GUARANTEE OF TRUST CERTIFI15 CATES.— 

16 ‘‘(1) ISSUANCE.—The Secretary may issue trust 

17 certificates representing ownership of all or a frac18 tional part of debentures issued by a rural business 

19 investment company and guaranteed by the Secretary 

20 under this section, if the certificates are based on and 

21 backed by a trust or pool approved by the Secretary 

22 and composed solely of guaranteed debentures. 

23 ‘‘(2) GUARANTEE.— 

24 ‘‘(A) IN GENERAL.—The Secretary may, 

25 under such terms and conditions as the Sec-
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1 retary considers appropriate, guarantee the time2 ly payment of the principal of and interest on 

3 trust certificates issued by the Secretary or 

4 agents of the Secretary for purposes of this sub5 section. 

6 ‘‘(B) LIMITATION.—Each guarantee under 

7 this paragraph shall be limited to the extent of 

8 principal and interest on the guaranteed deben9 tures that compose the trust or pool. 

10 ‘‘(C) PREPAYMENT OR DEFAULT.— 

11 ‘‘(i) IN GENERAL.— 

12 ‘‘(I) AUTHORITY TO PREPAY.—A 

13 debenture may be prepaid at any time 

14 without penalty. 

15 ‘‘(II) REDUCTION OF GUAR16 ANTEE.—Subject to subclause (I), if a 

17 debenture in a trust or pool is prepaid, 

18 or in the event of default of such a de19 benture, the guarantee of timely pay20 ment of principal and interest on the 

21 trust certificates shall be reduced in 

22 proportion to the amount of principal 

23 and interest the prepaid debenture rep24 resents in the trust or pool. 
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1 ‘‘(ii) INTEREST.—Interest on prepaid 

2 or defaulted debentures shall accrue and be 

3 guaranteed by the Secretary only through 

4 the date of payment of the guarantee. 

5 ‘‘(iii) REDEMPTION.—At any time 

6 during the term of a trust certificate, the 

7 trust certificate may be called for redemp8 tion due to prepayment or default of all de9 bentures. 

10 ‘‘(3) FULL FAITH AND CREDIT OF THE UNITED

11 STATES.—Section 3901 shall apply to any guarantee 

12 of a trust certificate issued by the Secretary under 

13 this section. 

14 ‘‘(4) SUBROGATION AND OWNERSHIP RIGHTS.— 

15 ‘‘(A) SUBROGATION.—If the Secretary pays 

16 a claim under a guarantee issued under this sec17 tion, the claim shall be subrogated fully to the 

18 rights satisfied by the payment. 

19 ‘‘(B) OWNERSHIP RIGHTS.—No Federal, 

20 State, or local law shall preclude or limit the ex21 ercise by the Secretary of the ownership rights of 

22 the Secretary in a debenture residing in a trust 

23 or pool against which 1 or more trust certificates 

24 are issued under this subsection. 

25 ‘‘(5) MANAGEMENT AND ADMINISTRATION.— 
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1 ‘‘(A) REGISTRATION.—The Secretary shall 

2 provide for a central registration of all trust cer3 tificates issued under this subsection. 

4 ‘‘(B) CREATION OF POOLS.—The Secretary 

5 may— 

6 ‘‘(i) maintain such commercial bank 

7 accounts or investments in obligations of the 

8 United States as may be necessary to facili9 tate the creation of trusts or pools backed by 

10 debentures guaranteed under this subtitle; 

11 and 

12 ‘‘(ii) issue trust certificates to facilitate 

13 the creation of those trusts or pools. 

14 ‘‘(C) FIDELITY BOND OR INSURANCE RE15 QUIREMENT.—Any agent performing functions 

16 on behalf of the Secretary under this paragraph 

17 shall provide a fidelity bond or insurance in 

18 such amount as the Secretary considers to be 

19 necessary to fully protect the interests of the 

20 United States. 

21 ‘‘(D) REGULATION OF BROKERS AND DEAL22 ERS.—The Secretary may regulate brokers and 

23 dealers in trust certificates issued under this sub24 section. 
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1 ‘‘(E) ELECTRONIC REGISTRATION.—Nothing 

2 in this paragraph prohibits the use of a book3 entry or other electronic form of registration for 

4 trust certificates issued under this subsection. 

5 ‘‘(g) FEES.— 

6 ‘‘(1) IN GENERAL.—The Secretary may charge a 

7 fee that does not exceed $500 with respect to any 

8 guarantee or grant issued under this section. 

9 ‘‘(2) TRUST CERTIFICATE.—Notwithstanding 

10 paragraph (1), the Secretary shall not collect a fee for 

11 any guarantee of a trust certificate under subsection 

12 (f), except that any agent of the Secretary may collect 

13 a fee that does not exceed $500 for the functions de14 scribed in subsection (f)(5)(B). 

15 ‘‘(3) LICENSE.— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 subparagraph (C), the Secretary may prescribe 

18 fees to be paid by each applicant for a license to 

19 operate as a rural business investment company 

20 under this section. 

21 ‘‘(B) USE OF AMOUNTS.—Fees collected 

22 under this paragraph— 

23 ‘‘(i) shall be deposited in the account 

24 for salaries and expenses of the Secretary; 
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1 ‘‘(ii) are authorized to be appropriated 

2 solely to cover the costs of licensing exami3 nations; and 

4 ‘‘(iii) shall— 

5 ‘‘(I) in the case of a license issued 

6 before the date of enactment of the Ag7 riculture Reform, Food, and Jobs Act 

8 of 2013, not exceed $500 for any fee 

9 collected under this paragraph; and 

10 ‘‘(II) in the case of a license 

11 issued after the date of enactment of 

12 the Agriculture Reform, Food, and 

13 Jobs Act of 2013, be a rate as deter14 mined by the Secretary. 

15 ‘‘(C) PROHIBITION ON COLLECTION OF CER16 TAIN FEES.—In the case of a license described in 

17 subparagraph (A) that was approved before July 

18 1, 2007, the Secretary shall not collect any fees 

19 due on or after the date of enactment of the Agri20 culture Reform, Food, and Jobs Act of 2013. 

21 ‘‘(h) OPERATIONAL ASSISTANCE GRANTS.— 

22 ‘‘(1) IN GENERAL.—In accordance with this sub23 section, the Secretary may make grants to rural busi24 ness investment companies and to other entities, as 

25 authorized by this section, to provide operational as-
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1 sistance to smaller enterprises financed, or expected to 

2 be financed, by the entities. 

3 ‘‘(2) TERMS.—Grants made under this sub4 section shall be made over a multiyear period (not to 

5 exceed 10 years) under such terms as the Secretary 

6 may require. 

7 ‘‘(3) USE OF FUNDS.—The proceeds of a grant 

8 made under this subsection may be used by the rural 

9 business investment company receiving the grant only 

10 to provide operational assistance in connection with 

11 an equity or prospective equity investment in a busi12 ness located in a rural area. 

13 ‘‘(4) SUBMISSION OF PLANS.—A rural business 

14 investment company shall be eligible for a grant 

15 under this subsection only if the rural business invest16 ment company submits to the Secretary, in such form 

17 and manner as the Secretary may require, a plan for 

18 use of the grant. 

19 ‘‘(5) GRANT AMOUNT.— 

20 ‘‘(A) RURAL BUSINESS INVESTMENT COMPA21 NIES.—The amount of a grant made under this 

22 subsection to a rural business investment com23 pany shall be equal to the lesser of— 
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1 ‘‘(i) 10 percent of the private capital 

2 raised by the rural business investment 

3 company; or 

4 ‘‘(ii) $1,000,000. 

5 ‘‘(6) OTHER ENTITIES.—The amount of a grant 

6 made under this subsection to any entity other than 

7 a rural business investment company shall be equal 

8 to the resources (in cash or in kind) raised by the en9 tity in accordance with the requirements applicable to 

10 rural business investment companies under this sec11 tion. 

12 ‘‘(i) RURAL BUSINESS INVESTMENT COMPANIES.— 

13 ‘‘(1) ORGANIZATION.—For purposes of this sub14 section, a rural business investment company shall— 

15 ‘‘(A) be an incorporated body, a limited li16 ability company, or a limited partnership orga17 nized and chartered or otherwise existing under 

18 State law solely for the purpose of performing 

19 the functions and conducting the activities au20 thorized by this section; and 

21 ‘‘(B)(i) if incorporated, have succession for 

22 a period of not less than 30 years unless earlier 

23 dissolved by the shareholders of the rural busi24 ness investment company; and 
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1 ‘‘(ii) if a limited partnership or a limited 

2 liability company, have succession for a period 

3 of not less than 10 years; and 

4 ‘‘(iii) possess the powers reasonably nec5 essary to perform the functions and conduct the 

6 activities. 

7 ‘‘(2) ARTICLES.—The articles of any rural busi8 ness investment company— 

9 ‘‘(A) shall specify in general terms— 

10 ‘‘(i) the purposes for which the rural 

11 business investment company is formed; 

12 ‘‘(ii) the name of the rural business in13 vestment company; 

14 ‘‘(iii) the 1 or more areas in which the 

15 operations of the rural business investment 

16 company are to be carried out; 

17 ‘‘(iv) the place where the principal of18 fice of the rural business investment com19 pany is to be located; and 

20 ‘‘(v) the amount and classes of the 

21 shares of capital stock of the rural business 

22 investment company; 

23 ‘‘(B) may contain any other provisions con24 sistent with this section that the rural business 

25 investment company may determine appropriate 
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† HR 2642 EAS 

1 to adopt for the regulation of the business of the 

2 rural business investment company and the con3 duct of the affairs of the rural business invest4 ment company; and 

5 ‘‘(C) shall be subject to the approval of the 

6 Secretary. 

7 ‘‘(3) CAPITAL REQUIREMENTS.— 

8 ‘‘(A) IN GENERAL.—Each rural business in9 vestment company shall be required to meet the 

10 capital requirements as provided by the Sec11 retary. 

12 ‘‘(B) TIME FRAME.—Each rural business 

13 investment company shall have a period of 2 

14 years to meet the capital requirements of this 

15 paragraph. 

16 ‘‘(C) ADEQUACY.—In addition to the re17 quirements of subparagraph (A), the Secretary 

18 shall— 

19 ‘‘(i) determine whether the private cap20 ital of each rural business investment com21 pany is adequate to ensure a reasonable 

22 prospect that the rural business investment 

23 company will be operated soundly and prof24 itably, and managed actively and prudently 
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† HR 2642 EAS 

1 in accordance with the articles of the rural 

2 business investment company; 

3 ‘‘(ii) determine that the rural business 

4 investment company will be able to comply 

5 with the requirements of this section; 

6 ‘‘(iii) require that at least 75 percent 

7 of the capital of each rural business invest8 ment company is invested in rural business 

9 concerns; 

10 ‘‘(iv) ensure that the rural business in11 vestment company is designed primarily to 

12 meet equity capital needs of the businesses 

13 in which the rural business investment com14 pany invests and not to compete with tradi15 tional small business financing by commer16 cial lenders; and 

17 ‘‘(v) require that the rural business in18 vestment company makes short-term non-eq19 uity investments of less than 5 years only 

20 to the extent necessary to preserve an exist21 ing investment. 

22 ‘‘(4) DIVERSIFICATION OF OWNERSHIP.—The 

23 Secretary shall ensure that the management of each 

24 rural business investment company licensed after the 

25 date of enactment of the Agriculture Reform, Food, 
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† HR 2642 EAS 

1 and Jobs Act of 2013 is sufficiently diversified from 

2 and unaffiliated with the ownership of the rural busi3 ness investment company so as to ensure independ4 ence and objectivity in the financial management and 

5 oversight of the investments and operations of the 

6 rural business investment company. 

7 ‘‘(j) FINANCIAL INSTITUTION INVESTMENTS.— 

8 ‘‘(1) IN GENERAL.—Except as otherwise provided 

9 in this subsection and notwithstanding any other pro10 vision of law, the following banks, associations, and 

11 institutions are eligible both to establish and invest in 

12 any rural business investment company or in any en13 tity established to invest solely in rural business in14 vestment companies: 

15 ‘‘(A) Any bank or savings association the 

16 deposits of which are insured under the Federal 

17 Deposit Insurance Act (12 U.S.C. 1811 et seq.), 

18 including an investment pool created entirely by 

19 such bank or savings association. 

20 ‘‘(B) Any Farm Credit System institution 

21 described in subsection 1.2(a) of the Farm Credit 

22 Act of 1971 (12 U.S.C. 2002(a)). 

23 ‘‘(2) LIMITATION.—No bank, association, or in24 stitution described in paragraph (1) may make in25 vestments described in paragraph (1) that are greater 
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† HR 2642 EAS 

1 than 5 percent of the capital and surplus of the bank, 

2 association, or institution. 

3 ‘‘(3) LIMITATION ON RURAL BUSINESS INVEST4 MENT COMPANIES CONTROLLED BY FARM CREDIT SYS5 TEM INSTITUTIONS.—If a Farm Credit System insti6 tution described in section 1.2(a) of the Farm Credit 

7 Act of 1971 (12 U.S.C. 2002(a)) holds more than 25 

8 percent of the shares of a rural business investment 

9 company, either alone or in conjunction with other 

10 System institutions (or affiliates), the rural business 

11 investment company shall not provide equity invest12 ments in, or provide other financial assistance to, en13 tities that are not otherwise eligible to receive financ14 ing from the Farm Credit System under that Act (12 

15 U.S.C. 2001 et seq.). 

16 ‘‘(k) EXAMINATIONS.— 

17 ‘‘(1) IN GENERAL.—Each rural business invest18 ment company that participates in the program es19 tablished under this section shall be subject to exami20 nations made at the direction of the Secretary in ac21 cordance with this subsection. 

22 ‘‘(2) ASSISTANCE OF PRIVATE SECTOR ENTI23 TIES.—An examination under this subsection may be 

24 conducted with the assistance of a private sector enti-
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1 ty that has the qualifications and the expertise nec2 essary to conduct such an examination. 

3 ‘‘(3) COSTS.— 

4 ‘‘(A) IN GENERAL.—The Secretary may as5 sess the cost of an examination under this sec6 tion, including compensation of the examiners, 

7 against the rural business investment company 

8 examined. 

9 ‘‘(B) PAYMENT.—Any rural business invest10 ment company against which the Secretary as11 sesses costs under this subparagraph shall pay 

12 the costs. 

13 ‘‘(4) DEPOSIT OF FUNDS.—Funds collected under 

14 this subsection shall— 

15 ‘‘(A) be deposited in the account that in16 curred the costs for carrying out this subsection; 

17 ‘‘(B) be made available to the Secretary to 

18 carry out this subsection, without further appro19 priation; and 

20 ‘‘(C) remain available until expended. 

21 ‘‘(l) REPORTING REQUIREMENTS.— 

22 ‘‘(1) RURAL BUSINESS INVESTMENT COMPA23 NIES.—Each entity that participates in a program 

24 established under this section shall provide to the Sec-
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1 retary such information as the Secretary may re2 quire, including— 

3 ‘‘(A) information relating to the measure4 ment criteria that the entity proposed in the pro5 gram application of the rural business invest6 ment company; and 

7 ‘‘(B) in each case in which the entity under 

8 this section makes an investment in, or a loan 

9 or grant to, a business that is not located in a 

10 rural area, a report on the number and percent11 age of employees of the business who reside in 

12 those areas. 

13 ‘‘(2) PUBLIC REPORTS.— 

14 ‘‘(A) IN GENERAL.—The Secretary shall 

15 prepare and make available to the public an an16 nual report on the programs established under 

17 this section, including detailed information on— 

18 ‘‘(i) the number of rural business in19 vestment companies licensed by the Sec20 retary during the previous fiscal year; 

21 ‘‘(ii) the aggregate amount of leverage 

22 that rural business investment companies 

23 have received from the Federal Government 

24 during the previous fiscal year; 
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1 ‘‘(iii) the aggregate number of each 

2 type of leveraged instruments used by rural 

3 business investment companies during the 

4 previous fiscal year and how each number 

5 compares to previous fiscal years; 

6 ‘‘(iv) the number of rural business in7 vestment company licenses surrendered and 

8 the number of rural business investment 

9 companies placed in liquidation during the 

10 previous fiscal year, identifying the amount 

11 of leverage each rural business investment 

12 company has received from the Federal Gov13 ernment and the type of leverage instru14 ments each rural business investment com15 pany has used; 

16 ‘‘(v) the amount of losses sustained by 

17 the Federal Government as a result of oper18 ations under this section during the pre19 vious fiscal year and an estimate of the 

20 total losses that the Federal Government can 

21 reasonably expect to incur as a result of the 

22 operations during the current fiscal year; 

23 ‘‘(vi) actions taken by the Secretary to 

24 maximize recoupment of funds of the Fed25 eral Government expended to implement 
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1 and administer the Rural Business Invest2 ment Program under this section during the 

3 previous fiscal year and to ensure compli4 ance with the requirements of this section 

5 (including regulations); 

6 ‘‘(vii) the amount of Federal Govern7 ment leverage that each licensee received in 

8 the previous fiscal year and the types of le9 verage instruments each licensee used; 

10 ‘‘(viii) for each type of financing in11 strument, the sizes, types of geographic loca12 tions, and other characteristics of the small 

13 business investment companies using the in14 strument during the previous fiscal year, 

15 including the extent to which the investment 

16 companies have used the leverage from each 

17 instrument to make loans or equity invest18 ments in rural areas; and 

19 ‘‘(ix) the actions of the Secretary to 

20 carry out this section 

21 ‘‘(B) PROHIBITION.—In compiling the re22 port required under subparagraph (A), the Sec23 retary may not— 

24 ‘‘(i) compile the report in a manner 

25 that permits identification of any par-
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1 ticular type of investment by an individual 

2 rural business investment company or small 

3 business concern in which a rural business 

4 investment company invests; or 

5 ‘‘(ii) release any information that is 

6 prohibited under section 1905 of title 18, 

7 United States Code. 

8 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to carry out this section 

10 $25,000,000 for the period of fiscal years 2008 through 

11 2018.’’. 

12 ‘‘CHAPTER 3—GENERAL RURAL 

13 DEVELOPMENT PROVISIONS 

14 ‘‘SEC. 3701. GENERAL PROVISIONS FOR LOANS AND 

15 GRANTS. 

16 ‘‘(a) PERIOD FOR REPAYMENT.—Unless otherwise spe17 cifically provided for in this subtitle, the period for repay18 ment of a loan under this subtitle shall not exceed 40 years. 

19 ‘‘(b) INTEREST RATES.— 

20 ‘‘(1) IN GENERAL.—Except as otherwise provided 

21 in this title, the interest rate on a loan under this 

22 subtitle shall be determined by the Secretary at a 

23 rate— 

24 ‘‘(A) not to exceed a sum obtained by add25 ing— 
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1 ‘‘(i) the current average market yield 

2 on outstanding marketable obligations of the 

3 United States with remaining periods to 

4 maturity comparable to the average matu5 rity of the loan; and 

6 ‘‘(ii) an amount not to exceed 1 per7 cent, as determined by the Secretary; and 

‘‘(B) adjusted to the nearest 1 8 ⁄8 of 1 percent. 

9 ‘‘(2) WATER AND WASTE FACILITY LOANS AND

10 COMMUNITY FACILITIES LOANS.— 

11 ‘‘(A) IN GENERAL.—Notwithstanding any 

12 provision of State law limiting the rate or 

13 amount of interest that may be charged, taken, 

14 received, or reserved, except as provided in sub15 paragraph (C) and paragraph (4), the interest 

16 rate on a loan (other than a guaranteed loan) to 

17 a public body or nonprofit association (including 

18 an Indian tribe) for a water or waste disposal 

19 facility or essential community facility shall be 

20 determined by the Secretary at a rate not to ex21 ceed— 

22 ‘‘(i) the current market yield on out23 standing municipal obligations with re24 maining periods to maturity comparable to 
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1 the average maturity for the loan, and adjusted to the nearest 1 2 ⁄8 of 1 percent; 

3 ‘‘(ii) 5 percent per year for a loan that 

4 is for the upgrading of a facility or con5 struction of a new facility as required to 

6 meet applicable health or sanitary stand7 ards in— 

8 ‘‘(I) an area in which the median 

9 family income of the persons to be 

10 served by the facility is below the pov11 erty line (as defined in section 673 of 

12 the Community Services Block Grant 

13 Act (42 U.S.C. 9902)); and 

14 ‘‘(II) any areas the Secretary may 

15 designate in which a significant per16 centage of the persons to be served by 

17 the facilities are low income persons, 

18 as determined by the Secretary; and 

19 ‘‘(iii) 7 percent per year for a loan for 

20 a facility that does not qualify for the 5 

21 percent per year interest rate prescribed in 

22 clause (ii) but that is located in an area in 

23 a State in which the median household in24 come of the persons to be served by the facil25 ity does not exceed 100 percent of the state-
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1 wide nonmetropolitan median household in2 come for the State. 

3 ‘‘(B) HEALTH CARE AND RELATED FACILI4 TIES.—Notwithstanding subparagraph (A), the 

5 Secretary shall establish a rate for a loan for a 

6 health care or related facility that is— 

7 ‘‘(i) based solely on the income of the 

8 area to be served; and 

9 ‘‘(ii) otherwise consistent with sub10 paragraph (A). 

11 ‘‘(C) INTEREST RATES FOR WATER AND

12 WASTE DISPOSAL FACILITIES LOANS.— 

13 ‘‘(i) IN GENERAL.—Except as provided 

14 in clause (ii) and notwithstanding subpara15 graph (A), in the case of a direct loan for 

16 a water or waste disposal facility— 

17 ‘‘(I) in the case of a loan that 

18 would be subject to the 5 percent inter19 est rate limitation under subparagraph 

20 (A), the Secretary shall establish the 

21 interest rate at a rate that is equal to 

22 60 percent of the current market yield 

23 for outstanding municipal obligations 

24 with remaining periods to maturity 

25 comparable to the average maturity of 
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the loan, adjusted to the nearest 1 1 ⁄8 of 

2 1 percent; and 

3 ‘‘(II) in the case of a loan that 

4 would be subject to the 7 percent limi5 tation under subparagraph (A), the 

6 Secretary shall establish the interest 

7 rate at a rate that is equal to 80 per8 cent of the current market yield for 

9 outstanding municipal obligations 

10 with remaining periods to maturity 

11 comparable to the average maturity of 

the loan, adjusted to the nearest 1 12 ⁄8 of 

13 1 percent. 

14 ‘‘(ii) EXCEPTION.—Clause (i) does not 

15 apply to a loan for a specific project that 

16 is the subject of a loan that has been ap17 proved, but not closed, as of the date of en18 actment of the Agriculture Reform, Food, 

19 and Jobs Act of 2013. 

20 ‘‘(3) INTEREST RATES ON BUSINESS AND OTHER

21 LOANS.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 paragraph (4), the interest rates on loans under 

24 sections 3501(a)(1) (other than guaranteed loans 

25 and loans as described in paragraph (2)(A)) 
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† HR 2642 EAS 

1 shall be as determined by the Secretary in ac2 cordance with subparagraph (B). 

3 ‘‘(B) MINIMUM RATE.—The interest rates 

4 described in subparagraph (A) shall be not less 

5 than the sum obtained by adding— 

6 ‘‘(i) such rates as determined by the 

7 Secretary of the Treasury taking into con8 sideration the current average market yield 

9 on outstanding marketable obligations of the 

10 United States with remaining periods to 

11 maturity comparable to the average matu12 rities of such loans, adjusted in the judg13 ment of the Secretary of the Treasury to 

14 provide for rates comparable to the rates 

15 prevailing in the private market for similar 

16 loans and considering the insurance by the 

17 Secretary of the loans; and 

18 ‘‘(ii) an additional charge, prescribed 

19 by the Secretary, to cover the losses of the 

20 Secretary and cost of administration, which 

21 shall be deposited in the Rural Development 

22 Insurance Fund, and further adjusted to the 

nearest 1 23 ⁄8 of 1 percent. 

24 ‘‘(4) INTEREST RATES ADJUSTMENTS.— 
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1 ‘‘(A) ADJUSTMENTS.—Notwithstanding any 

2 other provision of this subsection, in the case of 

3 loans (other than guaranteed loans) made or 

4 guaranteed under the authorities of this title 

5 specified in subparagraph (C) for activities that 

6 involve the use of prime farmland, the interest 

7 rates shall be the interest rates otherwise appli8 cable under this section increased by 2 percent 

9 per year. 

10 ‘‘(B) PRIME FARMLAND.— 

11 ‘‘(i) IN GENERAL.—Wherever prac12 ticable, construction by a State, munici13 pality, or other political subdivision of local 

14 government that is supported by loans de15 scribed in subparagraph (A) shall be placed 

16 on land that is not prime farmland, in 

17 order to preserve the maximum practicable 

18 quantity of prime farmlands for production 

19 of food and fiber. 

20 ‘‘(ii) INCREASED RATE.—In any case 

21 in which other options exist for the siting of 

22 construction described in clause (i) and the 

23 governmental authority still desires to carry 

24 out the construction on prime farmland, the 

25 2-percent interest rate increase provided by 
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† HR 2642 EAS 

1 this paragraph shall apply, but that in2 creased interest rate shall not apply where 

3 such other options do not exist. 

4 ‘‘(C) APPLICABLE AUTHORITIES.—The au5 thorities referred to in subparagraph (A) are— 

6 ‘‘(i) the provisions of section 3502(a) 

7 relating to loans for recreational develop8 ments and essential community facilities; 

9 ‘‘(ii) section 3601(e)(2)(A); and 

10 ‘‘(iii) section 3601(c). 

11 ‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 

12 made or guaranteed under this subtitle shall pay such fees 

13 and other charges as the Secretary may require, and prepay 

14 to the Secretary such taxes and insurance as the Secretary 

15 may require, on such terms and conditions as the Secretary 

16 may prescribe. 

17 ‘‘(d) SECURITY.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall take as 

19 security for an obligation entered into in connection 

20 with a loan made under this subtitle such security as 

21 the Secretary may require. 

22 ‘‘(2) LIENS TO UNITED STATES.—An instrument 

23 for security under paragraph (1) may constitute a 

24 lien running to the United States notwithstanding the 
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† HR 2642 EAS 

1 fact that the note for the security may be held by a 

2 lender other than the United States. 

3 ‘‘(3) MULTIPLE LOANS.—A borrower may use the 

4 same collateral to secure 2 or more loans made or 

5 guaranteed under this subtitle, except that the out6 standing amount of the loans may not exceed the total 

7 value of the collateral. 

8 ‘‘(e) LEGAL COUNSEL FOR SMALL LOANS.—In the case 

9 of a loan of less than $500,000 made or guaranteed under 

10 section 3501 that is evidenced by a note or mortgage (as 

11 distinguished from a bond issue), the borrower shall not be 

12 required to appoint bond counsel to review the legal validity 

13 of the loan if the Secretary has available legal counsel to 

14 perform the review. 

15 ‘‘SEC. 3702. STRATEGIC ECONOMIC AND COMMUNITY DE16 VELOPMENT. 

17 ‘‘(a) PRIORITY.—In the case of any rural development 

18 program authorized by this subtitle, the Secretary may give 

19 priority to applications that are otherwise eligible and sup20 port strategic community and economic development plans 

21 on a multijurisdictional basis, as approved by the Sec22 retary. 

23 ‘‘(b) EVALUATION.—In evaluating strategic applica24 tions, the Secretary shall give a higher priority to strategic 
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† HR 2642 EAS 

1 applications for a plan described in subsection (a) that 

2 demonstrate— 

3 ‘‘(1) the plan was developed through the collabo4 ration of multiple stakeholders in the service area of 

5 the plan, including the participation of combinations 

6 of stakeholders such as State, local, and tribal govern7 ments, nonprofit institutions, institutions of higher 

8 education, and private entities; 

9 ‘‘(2) an understanding of the applicable regional 

10 resources that could support the plan, including nat11 ural resources, human resources, infrastructure, and 

12 financial resources; 

13 ‘‘(3) investment from other Federal agencies; 

14 ‘‘(4) investment from philanthropic organiza15 tions; and 

16 ‘‘(5) clear objectives for the plan and the ability 

17 to establish measurable performance measures and to 

18 track progress toward meeting the objectives. 

19 ‘‘(c) FUNDS.— 

20 ‘‘(1) IN GENERAL.—Subject to paragraph (3), the 

21 Secretary may reserve for projects that support multi22 jurisdictional strategic community and economic de23 velopment plans described in subsection (a) an 

24 amount that does not exceed— 
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1 ‘‘(A) 20 percent of the funds made available 

2 for a fiscal year for a functional category de3 scribed in paragraph (2); and 

4 ‘‘(B) 15 percent of the total funds available 

5 for all functional categories. 

6 ‘‘(2) FUNCTIONAL CATEGORIES.—The function 

7 categories described in this subsection are the fol8 lowing: 

9 ‘‘(A) RURAL COMMUNITY FACILITIES.—The 

10 rural community development category consists 

11 of all amounts made available for community fa12 cility grants and direct and guaranteed loans 

13 under section 3502. 

14 ‘‘(B) RURAL UTILITIES.—The rural utilities 

15 category consists of all amounts made available 

16 for— 

17 ‘‘(i) water or waste disposal grants or 

18 direct or guaranteed loans under section 

19 3501(a); 

20 ‘‘(ii) emergency community water as21 sistance grants under section 3501(e)(2); 

22 ‘‘(iii) solid waste management grants 

23 under section 3501(e)(4); or 
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1 ‘‘(iv) rural water or wastewater tech2 nical assistance and training grants under 

3 section 3501(e)(5). 

4 ‘‘(C) RURAL BUSINESS AND COOPERATIVE

5 DEVELOPMENT.—The rural business and cooper6 ative development category consists of all 

7 amounts made available for— 

8 ‘‘(i) rural business opportunity grants, 

9 rural business enterprise grants, or rural 

10 educational network grants under section 

11 3601(a); or 

12 ‘‘(ii) business and industry direct and 

13 guaranteed loans under section 3601(e). 

14 ‘‘(3) LIMITATION.—The reservation of funds de15 scribed in paragraph (2) may only extend through 

16 June 30 of the fiscal year in which the funds were 

17 first made available. 

18 ‘‘SEC. 3703. GUARANTEED RURAL DEVELOPMENT LOANS. 

19 ‘‘(a) IN GENERAL.—The Secretary may provide finan20 cial assistance to a borrower for a purpose provided in this 

21 subtitle by guaranteeing a loan made by any Federal or 

22 State chartered bank, savings and loan association, cooper23 ative lending agency, or other legally organized lending 

24 agency. 
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1 ‘‘(b) INTEREST RATE.—The interest rate payable by 

2 a borrower on the portion of a guaranteed loan that is sold 

3 by a lender to the secondary market under this subtitle may 

4 be lower than the interest rate charged on the portion re5 tained by the lender. 

6 ‘‘(c) MAXIMUM GUARANTEE OF 90 PERCENT.—Except 

7 as provided in subsections (d) and (e), a loan guarantee 

8 under this subtitle shall be for not more than 90 percent 

9 of the principal and interest due on the loan. 

10 ‘‘(d) REFINANCED LOANS GUARANTEED AT 95 PER11 CENT.—The Secretary shall guarantee 95 percent of— 

12 ‘‘(1) in the case of a loan that solely refinances 

13 a direct loan made under this subtitle, the principal 

14 and interest due on the loan on the date of the refi15 nancing; or 

16 ‘‘(2) in the case of a loan that is used for mul17 tiple purposes, the portion of the loan that refinances 

18 the principal and interest due on a direct loan made 

19 under this subtitle that is outstanding on the date on 

20 which the loan is guaranteed. 

21 ‘‘(e) RISK OF LOSS.— 

22 ‘‘(1) IN GENERAL.—Subject to subsection (b), the 

23 Secretary may not make a loan under section 3501 

24 or 3601 unless the Secretary determines that no other 

25 lender is willing to make the loan and assume 10 per-
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1 cent of the potential loss to be sustained from the 

2 loan. 

3 ‘‘(2) EXCEPTION FOR NONPROFIT GROUPS.— 

4 Paragraph (1) shall not apply to a public body or 

5 nonprofit association, including an Indian tribe. 

6 ‘‘SEC. 3704. RURAL DEVELOPMENT INSURANCE FUND. 

7 ‘‘(a) DEFINITION OF RURAL DEVELOPMENT LOAN.— 

8 In this section, the term ‘rural development loan’ means 

9 a loan provided for by section 3501 or 3601. 

10 ‘‘(b) ESTABLISHMENT.—There is established in the 

11 Treasury of the United States a fund to be known as the 

12 ‘Rural Development Insurance Fund’ that shall be used by 

13 the Secretary to discharge the obligations of the Secretary 

14 under contracts making or guaranteeing rural development 

15 loans. 

16 ‘‘SEC. 3705. RURAL ECONOMIC AREA PARTNERSHIP ZONES. 

17 ‘‘(a) IN GENERAL.—The Secretary may designate ad18 ditional areas as rural economic area partnership zones to 

19 be assisted under this chapter— 

20 ‘‘(1) through an open, competitive process; and 

21 ‘‘(2) with priority given to rural areas— 

22 ‘‘(A) with excessive unemployment or 

23 underemployment, a high percentage of low-in24 come residents, or high rates of outmigration, as 

25 determined by the Secretary; and 
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1 ‘‘(B) that the Secretary determines have a 

2 substantial need for assistance. 

3 ‘‘(b) REQUIREMENTS.—The Secretary shall carry out 

4 those rural economic area partnership zones administra5 tively in effect on the date of enactment of the Agriculture 

6 Reform, Food, and Jobs Act of 2013 in accordance with 

7 the terms and conditions contained in the memoranda of 

8 agreement entered into by the Secretary for the rural eco9 nomic area partnership zones. 

10 ‘‘SEC. 3706. STREAMLINING APPLICATIONS AND IMPROVING 

11 ACCESSIBILITY OF RURAL DEVELOPMENT 

12 PROGRAMS. 

13 ‘‘The Secretary shall expedite the process of creating 

14 user-friendly and accessible application forms and proce15 dures prioritizing programs and applications at the indi16 vidual applicant level with an emphasis on utilizing cur17 rent technology including online applications and submis18 sion processes. 

19 ‘‘SEC. 3707. STATE RURAL DEVELOPMENT PARTNERSHIP. 

20 ‘‘(a) DEFINITIONS.—In this section: 

21 ‘‘(1) AGENCY WITH RURAL RESPONSIBILITIES.— 

22 The term ‘agency with rural responsibilities’ means 

23 any executive agency (as defined in section 105 of 

24 title 5, United States Code) that implements a Fed-
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1 eral law, or administers a program, targeted at or 

2 having a significant impact on rural areas. 

3 ‘‘(2) PARTNERSHIP.—The term ‘Partnership’ 

4 means the State Rural Development Partnership con5 tinued by subsection (b). 

6 ‘‘(3) STATE RURAL DEVELOPMENT COUNCIL.— 

7 The term ‘State rural development council’ means a 

8 State rural development council that meets the re9 quirements of subsection (c). 

10 ‘‘(b) PARTNERSHIP.— 

11 ‘‘(1) IN GENERAL.—The Secretary shall support 

12 the State Rural Development Partnership comprised 

13 of State rural development councils. 

14 ‘‘(2) PURPOSES.—The purposes of the Partner15 ship are to empower and build the capacity of States, 

16 regions, and rural communities to design flexible and 

17 innovative responses to their rural development needs 

18 in a manner that maximizes collaborative public- and 

19 private-sector cooperation and minimizes regulatory 

20 redundancy. 

21 ‘‘(3) COORDINATING PANEL.—A panel consisting 

22 of representatives of State rural development councils 

23 shall be established— 

24 ‘‘(A) to lead and coordinate the strategic op25 eration and policies of the Partnership; and 
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1 ‘‘(B) to facilitate effective communication 

2 among the members of the Partnership, includ3 ing the sharing of best practices. 

4 ‘‘(4) ROLE OF FEDERAL GOVERNMENT.—The role 

5 of the Federal Government in the Partnership may be 

6 that of a partner and facilitator, with Federal agen7 cies authorized— 

8 ‘‘(A) to cooperate with States to implement 

9 the Partnership; 

10 ‘‘(B) to provide States with the technical 

11 and administrative support necessary to plan 

12 and implement tailored rural development strat13 egies to meet local needs; 

14 ‘‘(C) to ensure that the head of each agency 

15 with rural responsibilities directs appropriate 

16 field staff to participate fully with the State 

17 rural development council within the jurisdiction 

18 of the field staff; and 

19 ‘‘(D) to enter into cooperative agreements 

20 with, and to provide grants and other assistance 

21 to, State rural development councils. 

22 ‘‘(c) STATE RURAL DEVELOPMENT COUNCILS.— 

23 ‘‘(1) ESTABLISHMENT.—Notwithstanding chap24 ter 63 of title 31, United States Code, each State may 

25 elect to participate in the Partnership by entering 
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1 into an agreement with the Secretary to recognize a 

2 State rural development council. 

3 ‘‘(2) COMPOSITION.—A State rural development 

4 council shall— 

5 ‘‘(A) be composed of representatives of Fed6 eral, State, local, and tribal governments, non7 profit organizations, regional organizations, the 

8 private sector, and other entities committed to 

9 rural advancement; and 

10 ‘‘(B) have a nonpartisan and nondiscrim11 inatory membership that— 

12 ‘‘(i) is broad and representative of the 

13 economic, social, and political diversity of 

14 the State; and 

15 ‘‘(ii) shall be responsible for the gov16 ernance and operations of the State rural 

17 development council. 

18 ‘‘(3) DUTIES.—A State rural development coun19 cil shall— 

20 ‘‘(A) facilitate collaboration among Federal, 

21 State, local, and tribal governments and the pri22 vate and nonprofit sectors in the planning and 

23 implementation of programs and policies that 

24 have an impact on rural areas of the State; 
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1 ‘‘(B) monitor, report, and comment on poli2 cies and programs that address, or fail to ad3 dress, the needs of the rural areas of the State; 

4 ‘‘(C) as part of the Partnership, facilitate 

5 the development of strategies to reduce or elimi6 nate conflicting or duplicative administrative or 

7 regulatory requirements of Federal, State, local, 

8 and tribal governments; and 

9 ‘‘(D)(i) provide to the Secretary an annual 

10 plan with goals and performance measures; and 

11 ‘‘(ii) submit to the Secretary an annual re12 port on the progress of the State rural develop13 ment council in meeting the goals and measures. 

14 ‘‘(4) FEDERAL PARTICIPATION IN STATE RURAL

15 DEVELOPMENT COUNCILS.— 

16 ‘‘(A) IN GENERAL.—A State Director for 

17 Rural Development of the Department of Agri18 culture, other employees of the Department, and 

19 employees of other Federal agencies with rural 

20 responsibilities shall fully participate as voting 

21 members in the governance and operations of 

22 State rural development councils (including ac23 tivities related to grants, contracts, and other 

24 agreements in accordance with this section) on 
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1 an equal basis with other members of the State 

2 rural development councils. 

3 ‘‘(B) CONFLICTS.—Participation by a Fed4 eral employee in a State rural development 

5 council in accordance with this paragraph shall 

6 not constitute a violation of section 205 or 208 

7 of title 18, United States Code. 

8 ‘‘(d) ADMINISTRATIVE SUPPORT OF THE PARTNER9 SHIP.— 

10 ‘‘(1) DETAIL OF EMPLOYEES.— 

11 ‘‘(A) IN GENERAL.—In order to provide ex12 perience in intergovernmental collaboration, the 

13 head of an agency with rural responsibilities 

14 that elects to participate in the Partnership 

15 may, and is encouraged to, detail to the Sec16 retary for the support of the Partnership 1 or 

17 more employees of the agency with rural respon18 sibilities without reimbursement for a period of 

19 up to 1 year. 

20 ‘‘(B) CIVIL SERVICE STATUS.—The detail 

21 shall be without interruption or loss of civil serv22 ice status or privilege. 

23 ‘‘(2) ADDITIONAL SUPPORT.—The Secretary may 

24 provide for any additional support staff to the Part-
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1 nership as the Secretary determines to be necessary to 

2 carry out the duties of the Partnership. 

3 ‘‘(3) INTERMEDIARIES.—The Secretary may 

4 enter into a contract with a qualified intermediary 

5 under which the intermediary shall be responsible for 

6 providing administrative and technical assistance to 

7 a State rural development council, including admin8 istering the financial assistance available to the State 

9 rural development council. 

10 ‘‘(e) MATCHING REQUIREMENTS FOR STATE RURAL

11 DEVELOPMENT COUNCILS.— 

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), a State rural development council shall 

14 provide matching funds, or in-kind goods or services, 

15 to support the activities of the State rural develop16 ment council in an amount that is not less than 33 

17 percent of the amount of Federal funds received from 

18 a Federal agency under subsection (f)(2). 

19 ‘‘(2) EXCEPTIONS TO MATCHING REQUIREMENT

20 FOR CERTAIN FEDERAL FUNDS.—Paragraph (1) shall 

21 not apply to funds, grants, funds provided under con22 tracts or cooperative agreements, gifts, contributions, 

23 or technical assistance received by a State rural devel24 opment council from a Federal agency that are 

25 used— 
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1 ‘‘(A) to support 1 or more specific program 

2 or project activities; or 

3 ‘‘(B) to reimburse the State rural develop4 ment council for services provided to the Federal 

5 agency providing the funds, grants, funds pro6 vided under contracts or cooperative agreements, 

7 gifts, contributions, or technical assistance. 

8 ‘‘(3) DEPARTMENT’S SHARE.—The Secretary 

9 shall develop a plan to decrease, over time, the share 

10 of the Department of Agriculture of the cost of the 

11 core operations of State rural development councils. 

12 ‘‘(f) FUNDING.— 

13 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

14 There is authorized to be appropriated to carry out 

15 this section $5,000,000 for each of fiscal years 2014 

16 through 2018. 

17 ‘‘(2) FEDERAL AGENCIES.— 

18 ‘‘(A) IN GENERAL.—Notwithstanding any 

19 other provision of law limiting the ability of an 

20 agency, along with other agencies, to provide 

21 funds to a State rural development council in 

22 order to carry out the purposes of this section, a 

23 Federal agency may make grants, gifts, or con24 tributions to, provide technical assistance to, or 
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† HR 2642 EAS 

1 enter into contracts or cooperative agreements 

2 with, a State rural development council. 

3 ‘‘(B) ASSISTANCE.—Federal agencies are 

4 encouraged to use funds made available for pro5 grams that have an impact on rural areas to 

6 provide assistance to, and enter into contracts 

7 with, a State rural development council, as de8 scribed in subparagraph (A). 

9 ‘‘(3) CONTRIBUTIONS.—A State rural develop10 ment council may accept private contributions. 

11 ‘‘(g) TERMINATION.—The authority provided under 

12 this section shall terminate on September 30, 2018. 

13 ‘‘CHAPTER 4—DELTA REGIONAL 

14 AUTHORITY 

15 ‘‘SEC. 3801. DEFINITIONS. 

16 ‘‘In this chapter: 

17 ‘‘(1) AUTHORITY.—The term ‘Authority’ means 

18 the Delta Regional Authority established by section 

19 3802. 

20 ‘‘(2) FEDERAL GRANT PROGRAM.—The term 

21 ‘Federal grant program’ means a Federal grant pro22 gram to provide assistance in— 

23 ‘‘(A) acquiring or developing land; 

24 ‘‘(B) constructing or equipping a highway, 

25 road, bridge, or facility; or 
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† HR 2642 EAS 

1 ‘‘(C) carrying out other economic develop2 ment activities. 

3 ‘‘(3) REGION.—The term ‘region’ means the 

4 Lower Mississippi (as defined in section 4 of the 

5 Delta Development Act (42 U.S.C. 3121 note; Public 

6 Law 100–460)). 

7 ‘‘SEC. 3802. DELTA REGIONAL AUTHORITY. 

8 ‘‘(a) ESTABLISHMENT.— 

9 ‘‘(1) IN GENERAL.—There is established the 

10 Delta Regional Authority. 

11 ‘‘(2) COMPOSITION.—The Authority shall be com12 posed of— 

13 ‘‘(A) a Federal member, to be appointed by 

14 the President, with the advice and consent of the 

15 Senate; and 

16 ‘‘(B) the Governor (or a designee of the Gov17 ernor) of each State in the region that elects to 

18 participate in the Authority. 

19 ‘‘(3) COCHAIRPERSONS.—The Authority shall be 

20 headed by— 

21 ‘‘(A) the Federal member, who shall serve 

22 as— 

23 ‘‘(i) the Federal cochairperson; and 

24 ‘‘(ii) a liaison between the Federal 

25 Government and the Authority; and 
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1 ‘‘(B) a State cochairperson, who shall be— 

2 ‘‘(i) a Governor of a participating 

3 State in the region; and 

4 ‘‘(ii) elected by the State members for 

5 a term of not less than 1 year. 

6 ‘‘(4) ALABAMA.—Notwithstanding any other pro7 vision of law, the State of Alabama shall be a full 

8 member of the Authority and shall be entitled to all 

9 rights and privileges that the membership affords to 

10 all other participating States in the Authority. 

11 ‘‘(b) ALTERNATE MEMBERS.— 

12 ‘‘(1) STATE ALTERNATES.—The State member of 

13 a participating State may have a single alternate, 

14 who shall be— 

15 ‘‘(A) a resident of that State; and 

16 ‘‘(B) appointed by the Governor of the 

17 State. 

18 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— 

19 The President shall appoint an alternate Federal co20 chairperson. 

21 ‘‘(3) QUORUM.—A State alternate shall not be 

22 counted toward the establishment of a quorum of the 

23 Authority in any instance in which a quorum of the 

24 State members is required to be present. 
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1 ‘‘(4) DELEGATION OF POWER.—No power or re2 sponsibility of the Authority specified in paragraphs 

3 (2) and (3) of subsection (c), and no voting right of 

4 any Authority member, shall be delegated to any per5 son— 

6 ‘‘(A) who is not an Authority member; or 

7 ‘‘(B) who is not entitled to vote in Author8 ity meetings. 

9 ‘‘(c) VOTING.— 

10 ‘‘(1) IN GENERAL.—A decision by the Authority 

11 shall require a majority vote of the Authority (not in12 cluding any member representing a State that is de13 linquent under subsection (g)(2)(C)) to be effective. 

14 ‘‘(2) QUORUM.—A quorum of State members 

15 shall be required to be present for the Authority to 

16 make any policy decision, including— 

17 ‘‘(A) a modification or revision of an Au18 thority policy decision; 

19 ‘‘(B) approval of a State or regional devel20 opment plan; and 

21 ‘‘(C) any allocation of funds among the 

22 States. 

23 ‘‘(3) PROJECT AND GRANT PROPOSALS.—The ap24 proval of project and grant proposals shall be— 

25 ‘‘(A) a responsibility of the Authority; and 
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† HR 2642 EAS 

1 ‘‘(B) conducted in accordance with section 

2 3809. 

3 ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An al4 ternate member shall vote in the case of the absence, 

5 death, disability, removal, or resignation of the Fed6 eral or State representative for which the alternate 

7 member is an alternate. 

8 ‘‘(d) DUTIES.—The Authority shall— 

9 ‘‘(1) develop, on a continuing basis, comprehen10 sive and coordinated plans and programs to establish 

11 priorities and approve grants for the economic devel12 opment of the region, giving due consideration to 

13 other Federal, State, and local planning and develop14 ment activities in the region; 

15 ‘‘(2) review, and where appropriate amend, pri16 orities in a development plan for the region (includ17 ing 5-year regional outcome targets); 

18 ‘‘(3) assess the needs and assets of the region 

19 based on available research, demonstrations, inves20 tigations, assessments, and evaluations of the region 

21 prepared by Federal, State, and local agencies, uni22 versities, local development districts, and other non23 profit groups; 
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† HR 2642 EAS 

1 ‘‘(4) formulate and recommend to the Governors 

2 and legislatures of States that participate in the Au3 thority forms of interstate cooperation; 

4 ‘‘(5) work with State and local agencies in devel5 oping appropriate model legislation; 

6 ‘‘(6)(A) enhance the capacity of, and provide 

7 support for, local development districts in the region; 

8 or 

9 ‘‘(B) if no local development district exists in an 

10 area in a participating State in the region, foster the 

11 creation of a local development district; 

12 ‘‘(7) encourage private investment in industrial, 

13 commercial, and other economic development projects 

14 in the region; and 

15 ‘‘(8) cooperate with and assist State governments 

16 with economic development programs of participating 

17 States. 

18 ‘‘(e) ADMINISTRATION.—In carrying out subsection 

19 (d), the Authority may— 

20 ‘‘(1) hold such hearings, sit and act at such 

21 times and places, take such testimony, receive such 

22 evidence, and print or otherwise reproduce and dis23 tribute a description of the proceedings and reports 

24 on actions by the Authority as the Authority con25 siders appropriate; 
729 

† HR 2642 EAS 

1 ‘‘(2) authorize, through the Federal or State co2 chairperson or any other member of the Authority 

3 designated by the Authority, the administration of 

4 oaths if the Authority determines that testimony 

5 should be taken or evidence received under oath; 

6 ‘‘(3) request from any Federal, State, or local de7 partment or agency such information as may be 

8 available to or procurable by the department or agen9 cy that may be of use to the Authority in carrying 

10 out duties of the Authority; 

11 ‘‘(4) adopt, amend, and repeal bylaws, rules, and 

12 regulations governing the conduct of Authority busi13 ness and the performance of Authority duties; 

14 ‘‘(5) request the head of any Federal department 

15 or agency to detail to the Authority such personnel as 

16 the Authority requires to carry out duties of the Au17 thority, each such detail to be without loss of senior18 ity, pay, or other employee status; 

19 ‘‘(6) request the head of any State department or 

20 agency or local government to detail to the Authority 

21 such personnel as the Authority requires to carry out 

22 duties of the Authority, each such detail to be without 

23 loss of seniority, pay, or other employee status; 
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† HR 2642 EAS 

1 ‘‘(7) provide for coverage of Authority employees 

2 in a suitable retirement and employee benefit system 

3 by— 

4 ‘‘(A) making arrangements or entering into 

5 contracts with any participating State govern6 ment; or 

7 ‘‘(B) otherwise providing retirement and 

8 other employee benefit coverage; 

9 ‘‘(8) accept, use, and dispose of gifts or donations 

10 of services or real, personal, tangible, or intangible 

11 property; 

12 ‘‘(9) enter into and perform such contracts, 

13 leases, cooperative agreements, or other transactions 

14 as are necessary to carry out Authority duties, in15 cluding any contracts, leases, or cooperative agree16 ments with— 

17 ‘‘(A) any department, agency, or instru18 mentality of the United States; 

19 ‘‘(B) any State (including a political sub20 division, agency, or instrumentality of the 

21 State); or 

22 ‘‘(C) any person, firm, association, or cor23 poration; and 
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† HR 2642 EAS 

1 ‘‘(10) establish and maintain a central office 

2 and field offices at such locations as the Authority 

3 may select. 

4 ‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 

5 agency shall— 

6 ‘‘(1) cooperate with the Authority; and 

7 ‘‘(2) provide, on request of the Federal cochair8 person, appropriate assistance in carrying out this 

9 chapter, in accordance with applicable Federal laws 

10 (including regulations). 

11 ‘‘(g) ADMINISTRATIVE EXPENSES.— 

12 ‘‘(1) IN GENERAL.—Administrative expenses of 

13 the Authority (except for the expenses of the Federal 

14 cochairperson, including expenses of the alternate and 

15 staff of the Federal cochairperson, which shall be paid 

16 solely by the Federal Government) shall be paid— 

17 ‘‘(A) by the Federal Government, in an 

18 amount equal to 50 percent of the administrative 

19 expenses; and 

20 ‘‘(B) by the States in the region partici21 pating in the Authority, in an amount equal to 

22 50 percent of the administrative expenses. 

23 ‘‘(2) STATE SHARE.— 
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† HR 2642 EAS 

1 ‘‘(A) IN GENERAL.—The share of adminis2 trative expenses of the Authority to be paid by 

3 each State shall be determined by the Authority. 

4 ‘‘(B) NO FEDERAL PARTICIPATION.—The 

5 Federal cochairperson shall not participate or 

6 vote in any decision under subparagraph (A). 

7 ‘‘(C) DELINQUENT STATES.—If a State is 

8 delinquent in payment of the State’s share of ad9 ministrative expenses of the Authority under this 

10 subsection— 

11 ‘‘(i) no assistance under this chapter 

12 shall be furnished to the State (including 

13 assistance to a political subdivision or a 

14 resident of the State); and 

15 ‘‘(ii) no member of the Authority from 

16 the State shall participate or vote in any 

17 action by the Authority. 

18 ‘‘(h) COMPENSATION.— 

19 ‘‘(1) FEDERAL COCHAIRPERSON.—The Federal 

20 cochairperson shall be compensated by the Federal 

21 Government at level III of the Executive Schedule in 

22 subchapter II of chapter 53 of title 5, United States 

23 Code. 

24 ‘‘(2) ALTERNATE FEDERAL COCHAIRPERSON.— 

25 The alternate Federal cochairperson— 
733 

† HR 2642 EAS 

1 ‘‘(A) shall be compensated by the Federal 

2 Government at level V of the Executive Schedule 

3 described in paragraph (1); and 

4 ‘‘(B) when not actively serving as an alter5 nate for the Federal cochairperson, shall perform 

6 such functions and duties as are delegated by the 

7 Federal cochairperson. 

8 ‘‘(3) STATE MEMBERS AND ALTERNATES.— 

9 ‘‘(A) IN GENERAL.—A State shall com10 pensate each member and alternate representing 

11 the State on the Authority at the rate established 

12 by law of the State. 

13 ‘‘(B) NO ADDITIONAL COMPENSATION.—No 

14 State member or alternate member shall receive 

15 any salary, or any contribution to or sup16 plementation of salary from any source other 

17 than the State for services provided by the mem18 ber or alternate to the Authority. 

19 ‘‘(4) DETAILED EMPLOYEES.— 

20 ‘‘(A) IN GENERAL.—No person detailed to 

21 serve the Authority under subsection (e)(6) shall 

22 receive any salary or any contribution to or sup23 plementation of salary for services provided to 

24 the Authority from— 
734 

† HR 2642 EAS 

1 ‘‘(i) any source other than the State, 

2 local, or intergovernmental department or 

3 agency from which the person was detailed; 

4 or 

5 ‘‘(ii) the Authority. 

6 ‘‘(B) VIOLATION.—Any person that violates 

7 this paragraph shall be fined not more than 

8 $5,000, imprisoned not more than 1 year, or 

9 both. 

10 ‘‘(C) APPLICABLE LAW.—The Federal co11 chairperson, the alternate Federal cochairperson, 

12 and any Federal officer or employee detailed to 

13 duty on the Authority under subsection (e)(5) 

14 shall not be subject to subparagraph (A), but 

15 shall remain subject to sections 202 through 209 

16 of title 18, United States Code. 

17 ‘‘(5) ADDITIONAL PERSONNEL.— 

18 ‘‘(A) COMPENSATION.— 

19 ‘‘(i) IN GENERAL.—The Authority may 

20 appoint and fix the compensation of an ex21 ecutive director and such other personnel as 

22 are necessary to enable the Authority to 

23 carry out the duties of the Authority. 

24 ‘‘(ii) EXCEPTION.—Compensation 

25 under clause (i) shall not exceed the max-
735 

† HR 2642 EAS 

1 imum rate for the Senior Executive Service 

2 under section 5382 of title 5, United States 

3 Code, including any applicable locality4 based comparability payment that may be 

5 authorized under section 5304(h)(2)(C) of 

6 that title. 

7 ‘‘(B) EXECUTIVE DIRECTOR.—The executive 

8 director shall be responsible for— 

9 ‘‘(i) the carrying out of the adminis10 trative duties of the Authority; 

11 ‘‘(ii) direction of the Authority staff; 

12 and 

13 ‘‘(iii) such other duties as the Author14 ity may assign. 

15 ‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No 

16 member, alternate, officer, or employee of the Au17 thority (except the Federal cochairperson of the 

18 Authority, the alternate and staff for the Federal 

19 cochairperson, and any Federal employee de20 tailed to the Authority under subsection (e)(5)) 

21 shall be considered to be a Federal employee for 

22 any purpose. 

23 ‘‘(i) CONFLICTS OF INTEREST.— 

24 ‘‘(1) IN GENERAL.—Except as provided under 

25 paragraph (2), no State member, alternate, officer, or 
736 

† HR 2642 EAS 

1 employee of the Authority shall participate personally 

2 and substantially as a member, alternate, officer, or 

3 employee of the Authority, through decision, approval, 

4 disapproval, recommendation, the rendering of advice, 

5 investigation, or otherwise, in any proceeding, appli6 cation, request for a ruling or other determination, 

7 contract, claim, controversy, or other matter in which, 

8 to knowledge of the member, alternate, officer, or em9 ployee, there is a financial interest of— 

10 ‘‘(A) the member, alternate, officer, or em11 ployee; 

12 ‘‘(B) the spouse, minor child, partner, or or13 ganization (other than a State or political sub14 division of the State) of the member, alternate, 

15 officer, or employee, in which the member, alter16 nate, officer, or employee is serving as officer, di17 rector, trustee, partner, or employee; or 

18 ‘‘(C) any person or organization with whom 

19 the member, alternate, officer, or employee is ne20 gotiating or has any arrangement concerning 

21 prospective employment. 

22 ‘‘(2) DISCLOSURE.—Paragraph (1) shall not 

23 apply if the State member, alternate, officer, or em24 ployee— 
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† HR 2642 EAS 

1 ‘‘(A) immediately advises the Authority of 

2 the nature and circumstances of the proceeding, 

3 application, request for a ruling or other deter4 mination, contract, claim, controversy, or other 

5 particular matter presenting a potential conflict 

6 of interest; 

7 ‘‘(B) makes full disclosure of the financial 

8 interest; and 

9 ‘‘(C) before the proceeding concerning the 

10 matter presenting the conflict of interest, receives 

11 a written determination by the Authority that 

12 the interest is not so substantial as to be likely 

13 to affect the integrity of the services that the Au14 thority may expect from the State member, alter15 nate, officer, or employee. 

16 ‘‘(3) VIOLATION.—Any person that violates this 

17 subsection shall be fined not more than $10,000, im18 prisoned not more than 2 years, or both. 

19 ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.— 

20 The Authority may declare void any contract, loan, or 

21 grant of or by the Authority in relation to which the Au22 thority determines that there has been a violation of any 

23 provision under subsection (h)(4), subsection (i), or sections 

24 202 through 209 of title 18, United States Code. 
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1 ‘‘SEC. 3803. ECONOMIC AND COMMUNITY DEVELOPMENT 

2 GRANTS. 

3 ‘‘(a) IN GENERAL.—The Authority may approve 

4 grants to States and public and nonprofit entities for 

5 projects, approved in accordance with section 3809— 

6 ‘‘(1) to develop the transportation infrastructure 

7 of the region for the purpose of facilitating economic 

8 development in the region (except that grants for this 

9 purpose may only be made to a State or local govern10 ment); 

11 ‘‘(2) to assist the region in obtaining the job 

12 training, employment-related education, and business 

13 development (with an emphasis on entrepreneurship) 

14 that are needed to build and maintain strong local 

15 economies; 

16 ‘‘(3) to provide assistance to severely distressed 

17 and underdeveloped areas that lack financial re18 sources for improving basic public services; 

19 ‘‘(4) to provide assistance to severely distressed 

20 and underdeveloped areas that lack financial re21 sources for equipping industrial parks and related fa22 cilities; and 

23 ‘‘(5) to otherwise achieve the purposes of this 

24 chapter. 

25 ‘‘(b) FUNDING.— 
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1 ‘‘(1) IN GENERAL.—Funds for grants under sub2 section (a) may be provided— 

3 ‘‘(A) entirely from appropriations to carry 

4 out this section; 

5 ‘‘(B) in combination with funds available 

6 under another Federal or Federal grant pro7 gram; or 

8 ‘‘(C) from any other source. 

9 ‘‘(2) PRIORITY OF FUNDING.—To best build the 

10 foundations for long-term economic development and 

11 to complement other Federal and State resources in 

12 the region, Federal funds available under this chapter 

13 shall be focused on the activities in the following order 

14 or priority: 

15 ‘‘(A) Basic public infrastructure in dis16 tressed counties and isolated areas of distress. 

17 ‘‘(B) Transportation infrastructure for the 

18 purpose of facilitating economic development in 

19 the region. 

20 ‘‘(C) Business development, with emphasis 

21 on entrepreneurship. 

22 ‘‘(D) Job training or employment-related 

23 education, with emphasis on use of existing pub24 lic educational institutions located in the region. 
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† HR 2642 EAS 

1 ‘‘SEC. 3804. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

2 ‘‘(a) FINDING.—Congress finds that certain States and 

3 local communities of the region, including local develop4 ment districts, may be unable to take maximum advantage 

5 of Federal grant programs for which the States and commu6 nities are eligible because— 

7 ‘‘(1) the States or communities lack the economic 

8 resources to provide the required matching share; or 

9 ‘‘(2) there are insufficient funds available under 

10 the applicable Federal law authorizing the Federal 

11 grant program to meet pressing needs of the region. 

12 ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith13 standing any provision of law limiting the Federal share, 

14 the areas eligible for assistance, or the authorizations of ap15 propriations of any Federal grant program, and in accord16 ance with subsection (c), the Authority, with the approval 

17 of the Federal cochairperson and with respect to a project 

18 to be carried out in the region— 

19 ‘‘(1) may increase the Federal share of the costs 

20 of a project under the Federal grant program to not 

21 more than 90 percent (except as provided in section 

22 3806(b)); and 

23 ‘‘(2) shall use amounts made available to carry 

24 out this chapter to pay the increased Federal share. 

25 ‘‘(c) CERTIFICATIONS.— 
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1 ‘‘(1) IN GENERAL.—In the case of any project for 

2 which all or any portion of the basic Federal share 

3 of the costs of the project is proposed to be paid under 

4 this section, no Federal contribution shall be made 

5 until the Federal official administering the Federal 

6 law that authorizes the Federal grant program cer7 tifies that the project— 

8 ‘‘(A) meets (except as provided in subsection 

9 (b)) the applicable requirements of the applicable 

10 Federal grant program; and 

11 ‘‘(B) could be approved for Federal con12 tribution under the Federal grant program if 

13 funds were available under the law for the 

14 project. 

15 ‘‘(2) CERTIFICATION BY AUTHORITY.— 

16 ‘‘(A) IN GENERAL.—The certifications and 

17 determinations required to be made by the Au18 thority for approval of projects under this Act in 

19 accordance with section 3809 shall be— 

20 ‘‘(i) controlling; and 

21 ‘‘(ii) accepted by the Federal agencies. 

22 ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR23 PERSON.—In the case of any project described in 

24 paragraph (1), any finding, report, certification, 

25 or documentation required to be submitted with 
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† HR 2642 EAS 

1 respect to the project to the head of the depart2 ment, agency, or instrumentality of the Federal 

3 Government responsible for the administration of 

4 the Federal grant program under which the 

5 project is carried out shall be accepted by the 

6 Federal cochairperson. 

7 ‘‘SEC. 3805. LOCAL DEVELOPMENT DISTRICTS; CERTIFI8 CATION AND ADMINISTRATIVE EXPENSES. 

9 ‘‘(a) DEFINITION OF LOCAL DEVELOPMENT DIS10 TRICT.—In this section, the term ‘local development district’ 

11 means an entity that— 

12 ‘‘(1) is— 

13 ‘‘(A) a planning district in existence on the 

14 date of enactment of the Agriculture Reform, 

15 Food, and Jobs Act of 2013 that is recognized by 

16 the Secretary; or 

17 ‘‘(B) if an entity described in subparagraph 

18 (A) does not exist— 

19 ‘‘(i) organized and operated in a man20 ner that ensures broad-based community 

21 participation and an effective opportunity 

22 for other nonprofit groups to contribute to 

23 the development and implementation of pro24 grams in the region; 
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† HR 2642 EAS 

1 ‘‘(ii) governed by a policy board with 

2 at least a simple majority of members con3 sisting of elected officials or employees of a 

4 general purpose unit of local government 

5 who have been appointed to represent the 

6 government; 

7 ‘‘(iii) certified to the Authority as hav8 ing a charter or authority that includes the 

9 economic development of counties or parts 

10 of counties or other political subdivisions 

11 within the region— 

12 ‘‘(I) by the Governor of each State 

13 in which the entity is located; or 

14 ‘‘(II) by the State officer des15 ignated by the appropriate State law 

16 to make the certification; and 

17 ‘‘(iv)(I) a nonprofit incorporated body 

18 organized or chartered under the law of the 

19 State in which the entity is located; 

20 ‘‘(II) a nonprofit agency or instrumen21 tality of a State or local government; 

22 ‘‘(III) a public organization established 

23 before December 21, 2000, under State law 

24 for creation of multi-jurisdictional, area25 wide planning organizations; or 
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1 ‘‘(IV) a nonprofit association or com2 bination of bodies, agencies, and instrumen3 talities described in subclauses (I) through 

4 (III); and 

5 ‘‘(2) has not, as certified by the Federal cochair6 person— 

7 ‘‘(A) inappropriately used Federal grant 

8 funds from any Federal source; or 

9 ‘‘(B) appointed an officer who, during the 

10 period in which another entity inappropriately 

11 used Federal grant funds from any Federal 

12 source, was an officer of the other entity. 

13 ‘‘(b) GRANTS TO LOCAL DEVELOPMENT DISTRICTS.— 

14 ‘‘(1) IN GENERAL.—The Authority shall make 

15 grants for administrative expenses under this section. 

16 ‘‘(2) CONDITIONS FOR GRANTS.— 

17 ‘‘(A) MAXIMUM AMOUNT.—The amount of 

18 any grant awarded under paragraph (1) shall 

19 not exceed 80 percent of the administrative ex20 penses of the local development district receiving 

21 the grant. 

22 ‘‘(B) MAXIMUM PERIOD.—No grant de23 scribed in paragraph (1) shall be awarded to a 

24 State agency certified as a local development dis25 trict for a period greater than 3 years. 
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† HR 2642 EAS 

1 ‘‘(C) LOCAL SHARE.—The contributions of a 

2 local development district for administrative ex3 penses may be in cash or in kind, fairly evalu4 ated, including space, equipment, and services. 

5 ‘‘(c) DUTIES OF LOCAL DEVELOPMENT DISTRICTS.— 

6 A local development district shall— 

7 ‘‘(1) operate as a lead organization serving 

8 multicounty areas in the region at the local level; and 

9 ‘‘(2) serve as a liaison between State and local 

10 governments, nonprofit organizations (including com11 munity-based groups and educational institutions), 

12 the business community, and citizens that— 

13 ‘‘(A) are involved in multijurisdictional 

14 planning; 

15 ‘‘(B) provide technical assistance to local 

16 jurisdictions and potential grantees; and 

17 ‘‘(C) provide leadership and civic develop18 ment assistance. 

19 ‘‘SEC. 3806. DISTRESSED COUNTIES AND AREAS AND NON20 DISTRESSED COUNTIES. 

21 ‘‘(a) DESIGNATIONS.—Each year, the Authority, in ac22 cordance with such criteria as the Authority may establish, 

23 shall designate— 

24 ‘‘(1) as distressed counties, counties in the region 

25 that are the most severely and persistently distressed 
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1 and underdeveloped and have high rates of poverty or 

2 unemployment; 

3 ‘‘(2) as nondistressed counties, counties in the re4 gion that are not designated as distressed counties 

5 under paragraph (1); and 

6 ‘‘(3) as isolated areas of distress, areas located in 

7 nondistressed counties (as designated under para8 graph (2)) that have high rates of poverty or unem9 ployment. 

10 ‘‘(b) DISTRESSED COUNTIES.— 

11 ‘‘(1) IN GENERAL.—The Authority shall allocate 

12 at least 75 percent of the appropriations made avail13 able under section 3813 for programs and projects de14 signed to serve the needs of distressed counties and 

15 isolated areas of distress in the region. 

16 ‘‘(2) FUNDING LIMITATIONS.—The funding limi17 tations under section 3804(b) shall not apply to a 

18 project providing transportation or basic public serv19 ices to residents of 1 or more distressed counties or 

20 isolated areas of distress in the region. 

21 ‘‘(c) NONDISTRESSED COUNTIES.— 

22 ‘‘(1) IN GENERAL.—Except as provided in this 

23 subsection, no funds shall be provided under this 

24 chapter for a project located in a county designated 

25 as a nondistressed county under subsection (a)(2). 
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1 ‘‘(2) EXCEPTIONS.— 

2 ‘‘(A) IN GENERAL.—The funding prohibi3 tion under paragraph (1) shall not apply to 

4 grants to fund the administrative expenses of 

5 local development districts under section 3805(b). 

6 ‘‘(B) MULTICOUNTY PROJECTS.—The Au7 thority may waive the application of the funding 

8 prohibition under paragraph (1) to a multi9 county project that includes participation by a 

10 nondistressed county; or any other type of project 

11 if the Authority determines that the project could 

12 bring significant benefits to areas of the region 

13 outside a nondistressed county. 

14 ‘‘(C) ISOLATED AREAS OF DISTRESS.—For 

15 a designation of an isolated area of distress for 

16 assistance to be effective, the designation shall be 

17 supported— 

18 ‘‘(i) by the most recent Federal data 

19 available; or 

20 ‘‘(ii) if no recent Federal data are 

21 available, by the most recent data available 

22 through the government of the State in 

23 which the isolated area of distress is located. 

24 ‘‘(d) TRANSPORTATION AND BASIC PUBLIC INFRA25 STRUCTURE.—The Authority shall allocate at least 50 per-
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† HR 2642 EAS 

1 cent of any funds made available under section 3813 for 

2 transportation and basic public infrastructure projects au3 thorized under paragraphs (1) and (3) of section 3803(a). 

4 ‘‘SEC. 3807. DEVELOPMENT PLANNING PROCESS. 

5 ‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 

6 with policies established by the Authority, each State mem7 ber shall submit a development plan for the area of the re8 gion represented by the State member. 

9 ‘‘(b) CONTENT OF PLAN.—A State development plan 

10 submitted under subsection (a) shall reflect the goals, objec11 tives, and priorities identified in the regional development 

12 plan developed under section 3802(d)(2). 

13 ‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR14 TIES.—In carrying out the development planning process 

15 (including the selection of programs and projects for assist16 ance), a State may— 

17 ‘‘(1) consult with— 

18 ‘‘(A) local development districts; and 

19 ‘‘(B) local units of government; and 

20 ‘‘(2) take into consideration the goals, objectives, 

21 priorities, and recommendations of the entities de22 scribed in paragraph (1). 

23 ‘‘(d) PUBLIC PARTICIPATION.— 

24 ‘‘(1) IN GENERAL.—The Authority and applica25 ble State and local development districts shall encour-
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† HR 2642 EAS 

1 age and assist, to the maximum extent practicable, 

2 public participation in the development, revision, and 

3 implementation of all plans and programs under this 

4 chapter. 

5 ‘‘(2) REGULATIONS.—The Authority shall de6 velop guidelines for providing public participation 

7 described in paragraph (1), including public hear8 ings. 

9 ‘‘SEC. 3808. PROGRAM DEVELOPMENT CRITERIA. 

10 ‘‘(a) IN GENERAL.—In considering programs and 

11 projects to be provided assistance under this chapter and 

12 in establishing a priority ranking of the requests for assist13 ance provided by the Authority, the Authority shall follow 

14 procedures that ensure, to the maximum extent practicable, 

15 consideration of— 

16 ‘‘(1) the relationship of the project or class of 

17 projects to overall regional development; 

18 ‘‘(2) the per capita income and poverty and un19 employment rates in an area; 

20 ‘‘(3) the financial resources available to the ap21 plicants for assistance seeking to carry out the 

22 project, with emphasis on ensuring that projects are 

23 adequately financed to maximize the probability of 

24 successful economic development; 
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1 ‘‘(4) the importance of the project or class of 

2 projects in relation to other projects or classes of 

3 projects that may be in competition for the same 

4 funds; 

5 ‘‘(5) the prospects that the project for which as6 sistance is sought will improve, on a continuing rath7 er than a temporary basis, the opportunities for em8 ployment, the average level of income, or the economic 

9 development of the area served by the project; and 

10 ‘‘(6) the extent to which the project design pro11 vides for detailed outcome measurements by which 

12 grant expenditures and the results of the expenditures 

13 may be evaluated. 

14 ‘‘(b) NO RELOCATION ASSISTANCE.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), no financial assistance authorized by this 

17 chapter shall be used to assist a person or entity in 

18 relocating from 1 area to another. 

19 ‘‘(2) OUTSIDE BUSINESSES.—Financial assist20 ance under this chapter may be used as otherwise au21 thorized by this subtitle to attract businesses from 

22 outside the region to the region. 

23 ‘‘(c) REDUCTION OF FUNDS.—Funds may be provided 

24 for a program or project in a State under this chapter only 

25 if the Authority determines that the level of Federal or State 
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1 financial assistance provided under a law other than this 

2 chapter, for the same type of program or project in the same 

3 area of the State within the region, will not be reduced as 

4 a result of funds made available by this chapter. 

5 ‘‘SEC. 3809. APPROVAL OF DEVELOPMENT PLANS AND 

6 PROJECTS. 

7 ‘‘(a) IN GENERAL.—A State or regional development 

8 plan or any multistate subregional plan that is proposed 

9 for development under this chapter shall be reviewed and 

10 approved by the Authority. 

11 ‘‘(b) EVALUATION BY STATE MEMBER.—An applica12 tion for a grant or any other assistance for a project under 

13 this chapter shall be made through and evaluated for ap14 proval by the State member of the Authority representing 

15 the applicant. 

16 ‘‘(c) CERTIFICATION.—An application for a grant or 

17 other assistance for a project shall be approved only on cer18 tification by the State member that the application for the 

19 project— 

20 ‘‘(1) describes ways in which the project complies 

21 with any applicable State development plan; 

22 ‘‘(2) meets applicable criteria under section 

23 3808; 
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1 ‘‘(3) provides adequate assurance that the pro2 posed project will be properly administered, operated, 

3 and maintained; and 

4 ‘‘(4) otherwise meets the requirements of this 

5 chapter. 

6 ‘‘(d) APPROVAL OF GRANT APPLICATIONS.—On certifi7 cation by a State member of the Authority of an application 

8 for a grant or other assistance for a specific project under 

9 this section, an affirmative vote of the Authority under sec10 tion 3802(c) shall be required for approval of the applica11 tion. 

12 ‘‘SEC. 3810. CONSENT OF STATES. 

13 ‘‘Nothing in this chapter requires any State to engage 

14 in or accept any program under this chapter without the 

15 consent of the State. 

16 ‘‘SEC. 3811. RECORDS. 

17 ‘‘(a) RECORDS OF THE AUTHORITY.— 

18 ‘‘(1) IN GENERAL.—The Authority shall main19 tain accurate and complete records of all transactions 

20 and activities of the Authority. 

21 ‘‘(2) AVAILABILITY.—All records of the Authority 

22 shall be available for audit and examination by the 

23 Comptroller General of the United States and the In24 spector General of the Department of Agriculture (in25 cluding authorized representatives of the Comptroller 
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† HR 2642 EAS 

1 General and the Inspector General of the Department 

2 of Agriculture). 

3 ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST4 ANCE.— 

5 ‘‘(1) IN GENERAL.—A recipient of Federal funds 

6 under this chapter shall, as required by the Authority, 

7 maintain accurate and complete records of trans8 actions and activities financed with Federal funds 

9 and report on the transactions and activities to the 

10 Authority. 

11 ‘‘(2) AVAILABILITY.—All records required under 

12 paragraph (1) shall be available for audit by the 

13 Comptroller General of the United States, the Inspec14 tor General of the Department of Agriculture, and the 

15 Authority (including authorized representatives of the 

16 Comptroller General, the Inspector General of the De17 partment of Agriculture, and the Authority). 

18 ‘‘SEC. 3812. ANNUAL REPORT. 

19 ‘‘Not later than 180 days after the end of each fiscal 

20 year, the Authority shall submit to the President and to 

21 Congress a report describing the activities carried out under 

22 this chapter. 

23 ‘‘SEC. 3813. AUTHORIZATION OF APPROPRIATIONS. 

24 ‘‘(a) IN GENERAL.—There is authorized to be appro25 priated to the Authority to carry out this chapter 
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† HR 2642 EAS 

1 $30,000,000 for each of fiscal years 2014 through 2018, to 

2 remain available until expended. 

3 ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 

4 percent of the amount appropriated under subsection (a) 

5 for a fiscal year shall be used for administrative expenses 

6 of the Authority. 

7 ‘‘SEC. 3814. TERMINATION OF AUTHORITY. 

8 ‘‘This chapter and the authority provided under this 

9 chapter expire on October 1, 2018. 

10 ‘‘CHAPTER 5—NORTHERN GREAT PLAINS 

11 REGIONAL AUTHORITY 

12 ‘‘SEC. 3821. DEFINITIONS. 

13 ‘‘In this chapter: 

14 ‘‘(1) AUTHORITY.—The term ‘Authority’ means 

15 the Northern Great Plains Regional Authority estab16 lished by section 3822. 

17 ‘‘(2) FEDERAL GRANT PROGRAM.—The term 

18 ‘Federal grant program’ means a Federal grant pro19 gram to provide assistance in— 

20 ‘‘(A) implementing the recommendations of 

21 the Northern Great Plains Rural Development 

22 Commission established by the Northern Great 

23 Plains Rural Development Act (7 U.S.C. 2661 

24 note; Public Law 103–318); 

25 ‘‘(B) acquiring or developing land; 
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1 ‘‘(C) constructing or equipping a highway, 

2 road, bridge, or facility; 

3 ‘‘(D) carrying out other economic develop4 ment activities; or 

5 ‘‘(E) conducting research activities related 

6 to the activities described in subparagraphs (A) 

7 through (D). 

8 ‘‘(3) REGION.—The term ‘region’ means the 

9 States of Iowa, Minnesota, Missouri (other than coun10 ties included in the Delta Regional Authority), Ne11 braska, North Dakota, and South Dakota. 

12 ‘‘SEC. 3822. NORTHERN GREAT PLAINS REGIONAL AUTHOR13 ITY. 

14 ‘‘(a) ESTABLISHMENT.— 

15 ‘‘(1) IN GENERAL.—There is established the 

16 Northern Great Plains Regional Authority. 

17 ‘‘(2) COMPOSITION.—The Authority shall be com18 posed of— 

19 ‘‘(A) a Federal member, to be appointed by 

20 the President, by and with the advice and con21 sent of the Senate; 

22 ‘‘(B) the Governor (or a designee of the Gov23 ernor) of each State in the region that elects to 

24 participate in the Authority; and 
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1 ‘‘(C) a member of an Indian tribe, who 

2 shall be a chairperson of an Indian tribe in the 

3 region or a designee of such a chairperson, to be 

4 appointed by the President, by and with the ad5 vice and consent of the Senate. 

6 ‘‘(3) COCHAIRPERSONS.—The Authority shall be 

7 headed by— 

8 ‘‘(A) the Federal member, who shall serve 

9 as— 

10 ‘‘(i) the Federal cochairperson; and 

11 ‘‘(ii) a liaison between the Federal 

12 Government and the Authority; 

13 ‘‘(B) a State cochairperson, who shall be— 

14 ‘‘(i) a Governor of a participating 

15 State in the region; and 

16 ‘‘(ii) elected by the State members for 

17 a term of not less than 1 year; and 

18 ‘‘(C) the member of an Indian tribe, who 

19 shall serve as— 

20 ‘‘(i) the tribal cochairperson; and 

21 ‘‘(ii) a liaison between the governments 

22 of Indian tribes in the region and the Au23 thority. 

24 ‘‘(4) FAILURE TO CONFIRM.— 
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1 ‘‘(A) FEDERAL MEMBER.—Notwithstanding 

2 any other provision of this section, if a Federal 

3 member described in paragraph (2)(A) has not 

4 been confirmed by the Senate by not later than 

5 180 days after the date of enactment of the Agri6 culture Reform, Food, and Jobs Act of 2013, the 

7 Authority may organize and operate without the 

8 Federal member. 

9 ‘‘(B) TRIBAL COCHAIRPERSON.—In the case 

10 of the tribal cochairperson, if no tribal cochair11 person is confirmed by the Senate, the regional 

12 authority shall consult and coordinate with the 

13 leaders of Indian tribes in the region concerning 

14 the activities of the Authority, as appropriate. 

15 ‘‘(b) ALTERNATE MEMBERS.— 

16 ‘‘(1) ALTERNATE FEDERAL COCHAIRPERSON.— 

17 The President shall appoint an alternate Federal co18 chairperson. 

19 ‘‘(2) STATE ALTERNATES.— 

20 ‘‘(A) IN GENERAL.—The State member of a 

21 participating State may have a single alternate, 

22 who shall be— 

23 ‘‘(i) a resident of that State; and 

24 ‘‘(ii) appointed by the Governor of the 

25 State. 
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1 ‘‘(B) QUORUM.—A State alternate member 

2 shall not be counted toward the establishment of 

3 a quorum of the members of the Authority in 

4 any case in which a quorum of the State mem5 bers is required to be present. 

6 ‘‘(3) ALTERNATE TRIBAL COCHAIRPERSON.—The 

7 President shall appoint an alternate tribal cochair8 person, by and with the advice and consent of the 

9 Senate. 

10 ‘‘(4) DELEGATION OF POWER.—No power or re11 sponsibility of the Authority specified in paragraphs 

12 (2) and (3) of subsection (c), and no voting right of 

13 any member of the Authority, shall be delegated to 

14 any person who is not— 

15 ‘‘(A) a member of the Authority; or 

16 ‘‘(B) entitled to vote in Authority meetings. 

17 ‘‘(c) VOTING.— 

18 ‘‘(1) IN GENERAL.—A decision by the Authority 

19 shall require a majority vote of the Authority (not in20 cluding any member representing a State that is de21 linquent under subsection (g)(2)(D)) to be effective. 

22 ‘‘(2) QUORUM.—A quorum of State members 

23 shall be required to be present for the Authority to 

24 make any policy decision, including— 
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1 ‘‘(A) a modification or revision of an Au2 thority policy decision; 

3 ‘‘(B) approval of a State or regional devel4 opment plan; and 

5 ‘‘(C) any allocation of funds among the 

6 States. 

7 ‘‘(3) PROJECT AND GRANT PROPOSALS.—The ap8 proval of project and grant proposals shall be— 

9 ‘‘(A) a responsibility of the Authority; and 

10 ‘‘(B) conducted in accordance with section 

11 3830. 

12 ‘‘(4) VOTING BY ALTERNATE MEMBERS.—An al13 ternate member shall vote in the case of the absence, 

14 death, disability, removal, or resignation of the Fed15 eral, State, or Indian tribe member for whom the al16 ternate member is an alternate. 

17 ‘‘(d) DUTIES.—The Authority shall— 

18 ‘‘(1) develop, on a continuing basis, comprehen19 sive and coordinated plans and programs for 

20 multistate cooperation to advance the economic and 

21 social well-being of the region and to approve grants 

22 for the economic development of the region, giving due 

23 consideration to other Federal, State, tribal, and local 

24 planning and development activities in the region; 
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† HR 2642 EAS 

1 ‘‘(2) review, and when appropriate amend, pri2 orities in a development plan for the region (includ3 ing 5-year regional outcome targets); 

4 ‘‘(3) assess the needs and assets of the region 

5 based on available research, demonstrations, inves6 tigations, assessments, and evaluations of the region 

7 prepared by Federal, State, tribal, and local agencies, 

8 universities, regional and local development districts 

9 or organizations, and other nonprofit groups; 

10 ‘‘(4) formulate and recommend to the Governors 

11 and legislatures of States that participate in the Au12 thority forms of interstate cooperation for— 

13 ‘‘(A) renewable energy development and 

14 transmission; 

15 ‘‘(B) transportation planning and economic 

16 development; 

17 ‘‘(C) information technology; 

18 ‘‘(D) movement of freight and individuals 

19 within the region; 

20 ‘‘(E) federally funded research at institu21 tions of higher education; and 

22 ‘‘(F) conservation land management; 

23 ‘‘(5) work with State, tribal, and local agencies 

24 in developing appropriate model legislation; 
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† HR 2642 EAS 

1 ‘‘(6) enhance the capacity of, and provide sup2 port for, multistate development and research organi3 zations, local development organizations and districts, 

4 and resource conservation districts in the region; 

5 ‘‘(7) encourage private investment in industrial, 

6 commercial, renewable energy, and other economic de7 velopment projects in the region; and 

8 ‘‘(8) cooperate with and assist State governments 

9 with economic development programs of participating 

10 States. 

11 ‘‘(e) ADMINISTRATION.—In carrying out subsection 

12 (d), the Authority may— 

13 ‘‘(1) hold such hearings, sit and act at such 

14 times and places, take such testimony, receive such 

15 evidence, and print or otherwise reproduce and dis16 tribute a description of the proceedings and reports 

17 on actions by the Authority as the Authority con18 siders appropriate; 

19 ‘‘(2) authorize, through the Federal, State, or 

20 tribal cochairperson or any other member of the Au21 thority designated by the Authority, the administra22 tion of oaths if the Authority determines that testi23 mony should be taken or evidence received under oath; 

24 ‘‘(3) request from any Federal, State, tribal, or 

25 local agency such information as may be available to 
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† HR 2642 EAS 

1 or procurable by the agency that may be of use to the 

2 Authority in carrying out the duties of the Authority; 

3 ‘‘(4) adopt, amend, and repeal bylaws and rules 

4 governing the conduct of business and the perform5 ance of duties of the Authority; 

6 ‘‘(5) request the head of any Federal agency to 

7 detail to the Authority such personnel as the Author8 ity requires to carry out duties of the Authority, each 

9 such detail to be without loss of seniority, pay, or 

10 other employee status; 

11 ‘‘(6) request the head of any State agency, tribal 

12 government, or local government to detail to the Au13 thority such personnel as the Authority requires to 

14 carry out duties of the Authority, each such detail to 

15 be without loss of seniority, pay, or other employee 

16 status; 

17 ‘‘(7) provide for coverage of Authority employees 

18 in a suitable retirement and employee benefit system 

19 by— 

20 ‘‘(A) making arrangements or entering into 

21 contracts with any participating State govern22 ment or tribal government; or 

23 ‘‘(B) otherwise providing retirement and 

24 other employee benefit coverage; 
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1 ‘‘(8) accept, use, and dispose of gifts or donations 

2 of services or real, personal, tangible, or intangible 

3 property; 

4 ‘‘(9) enter into and perform such contracts, 

5 leases, cooperative agreements, or other transactions 

6 as are necessary to carry out Authority duties, in7 cluding any contracts, leases, or cooperative agree8 ments with— 

9 ‘‘(A) any department, agency, or instru10 mentality of the United States; 

11 ‘‘(B) any State (including a political sub12 division, agency, or instrumentality of the 

13 State); 

14 ‘‘(C) any Indian tribe in the region; or 

15 ‘‘(D) any person, firm, association, or cor16 poration; and 

17 ‘‘(10) establish and maintain a central office 

18 and field offices at such locations as the Authority 

19 may select. 

20 ‘‘(f) FEDERAL AGENCY COOPERATION.—A Federal 

21 agency shall— 

22 ‘‘(1) cooperate with the Authority; and 

23 ‘‘(2) provide, on request of a cochairperson, ap24 propriate assistance in carrying out this chapter, in 
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1 accordance with applicable Federal laws (including 

2 regulations). 

3 ‘‘(g) ADMINISTRATIVE EXPENSES.— 

4 ‘‘(1) FEDERAL SHARE.—The Federal share of the 

5 administrative expenses of the Authority shall be— 

6 ‘‘(A) for fiscal year 2014, 100 percent; 

7 ‘‘(B) for fiscal year 2015, 75 percent; and 

8 ‘‘(C) for fiscal year 2016 and each fiscal 

9 year thereafter, 50 percent. 

10 ‘‘(2) NON-FEDERAL SHARE.— 

11 ‘‘(A) IN GENERAL.—The non-Federal share 

12 of the administrative expenses of the Authority 

13 shall be paid by non-Federal sources in the 

14 States that participate in the Authority. 

15 ‘‘(B) SHARE PAID BY EACH STATE.—The 

16 share of administrative expenses of the Authority 

17 to be paid by non-Federal sources in each State 

18 shall be determined by the Authority. 

19 ‘‘(C) NO FEDERAL PARTICIPATION.—The 

20 Federal cochairperson shall not participate or 

21 vote in any decision under subparagraph (B). 

22 ‘‘(D) DELINQUENT STATES.—If a State is 

23 delinquent in payment of the State’s share of ad24 ministrative expenses of the Authority under this 

25 subsection— 
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1 ‘‘(i) no assistance under this chapter 

2 shall be provided to the State (including as3 sistance to a political subdivision or a resi4 dent of the State); and 

5 ‘‘(ii) no member of the Authority from 

6 the State shall participate or vote in any 

7 action by the Authority. 

8 ‘‘(h) COMPENSATION.— 

9 ‘‘(1) FEDERAL AND TRIBAL COCHAIRPERSONS.— 

10 The Federal cochairperson and the tribal cochair11 person shall be compensated by the Federal Govern12 ment at the annual rate of basic pay prescribed for 

13 level III of the Executive Schedule in subchapter II of 

14 chapter 53 of title 5, United States Code. 

15 ‘‘(2) ALTERNATE FEDERAL AND TRIBAL CO16 CHAIRPERSONS.—The alternate Federal cochairperson 

17 and the alternate tribal cochairperson— 

18 ‘‘(A) shall be compensated by the Federal 

19 Government at the annual rate of basic pay pre20 scribed for level V of the Executive Schedule de21 scribed in paragraph (1); and 

22 ‘‘(B) when not actively serving as an alter23 nate, shall perform such functions and duties as 

24 are delegated by the Federal cochairperson or the 

25 tribal cochairperson, respectively. 
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1 ‘‘(3) STATE MEMBERS AND ALTERNATES.— 

2 ‘‘(A) IN GENERAL.—A State shall com3 pensate each member and alternate representing 

4 the State on the Authority at the rate established 

5 by State law. 

6 ‘‘(B) NO ADDITIONAL COMPENSATION.—No 

7 State member or alternate member shall receive 

8 any salary, or any contribution to or sup9 plementation of salary from any source other 

10 than the State for services provided by the mem11 ber or alternate member to the Authority. 

12 ‘‘(4) DETAILED EMPLOYEES.— 

13 ‘‘(A) IN GENERAL.—No person detailed to 

14 serve the Authority under subsection (e)(6) shall 

15 receive any salary or any contribution to or sup16 plementation of salary for services provided to 

17 the Authority from— 

18 ‘‘(i) any source other than the State, 

19 tribal, local, or intergovernmental agency 

20 from which the person was detailed; or 

21 ‘‘(ii) the Authority. 

22 ‘‘(B) VIOLATION.—Any person that violates 

23 this paragraph shall be fined not more than 

24 $5,000, imprisoned not more than 1 year, or 

25 both. 
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1 ‘‘(C) APPLICABLE LAW.—The Federal co2 chairperson, the alternate Federal cochairperson, 

3 and any Federal officer or employee detailed to 

4 duty on the Authority under subsection (e)(5) 

5 shall not be subject to subparagraph (A), but 

6 shall remain subject to sections 202 through 209 

7 of title 18, United States Code. 

8 ‘‘(5) ADDITIONAL PERSONNEL.— 

9 ‘‘(A) COMPENSATION.— 

10 ‘‘(i) IN GENERAL.—The Authority may 

11 appoint and fix the compensation of an ex12 ecutive director and such other personnel as 

13 are necessary to enable the Authority to 

14 carry out the duties of the Authority. 

15 ‘‘(ii) EXCEPTION.—Compensation 

16 under clause (i) shall not exceed the max17 imum rate for the Senior Executive Service 

18 under section 5382 of title 5, United States 

19 Code, including any applicable locality20 based comparability payment that may be 

21 authorized under section 5304(h)(2)(C) of 

22 that title. 

23 ‘‘(B) EXECUTIVE DIRECTOR.—The executive 

24 director shall be responsible for— 
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1 ‘‘(i) the carrying out of the adminis2 trative duties of the Authority; 

3 ‘‘(ii) direction of the Authority staff; 

4 and 

5 ‘‘(iii) such other duties as the Author6 ity may assign. 

7 ‘‘(C) NO FEDERAL EMPLOYEE STATUS.—No 

8 member, alternate, officer, or employee of the Au9 thority (except the Federal cochairperson of the 

10 Authority, the alternate and staff for the Federal 

11 cochairperson, and any Federal employee de12 tailed to the Authority under subsection (e)(5)) 

13 shall be considered to be a Federal employee for 

14 any purpose. 

15 ‘‘(i) CONFLICTS OF INTEREST.— 

16 ‘‘(1) IN GENERAL.—Except as provided under 

17 paragraph (2), no State member, Indian tribe mem18 ber, State alternate, officer, or employee of the Au19 thority shall participate personally and substantially 

20 as a member, alternate, officer, or employee of the Au21 thority, through decision, approval, disapproval, rec22 ommendation, the rendering of advice, investigation, 

23 or otherwise, in any proceeding, application, request 

24 for a ruling or other determination, contract, claim, 

25 controversy, or other matter in which, to knowledge of 
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1 the member, alternate, officer, or employee, there is a 

2 financial interest of— 

3 ‘‘(A) the member, alternate, officer, or em4 ployee; 

5 ‘‘(B) the spouse, minor child, partner, or or6 ganization (other than a State or political sub7 division of the State or the Indian tribe) of the 

8 member, alternate, officer, or employee, in which 

9 the member, alternate, officer, or employee is 

10 serving as officer, director, trustee, partner, or 

11 employee; or 

12 ‘‘(C) any person or organization with whom 

13 the member, alternate, officer, or employee is ne14 gotiating or has any arrangement concerning 

15 prospective employment. 

16 ‘‘(2) DISCLOSURE.—Paragraph (1) shall not 

17 apply if the State member, Indian tribe member, al18 ternate, officer, or employee— 

19 ‘‘(A) immediately advises the Authority of 

20 the nature and circumstances of the proceeding, 

21 application, request for a ruling or other deter22 mination, contract, claim, controversy, or other 

23 particular matter presenting a potential conflict 

24 of interest; 
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1 ‘‘(B) makes full disclosure of the financial 

2 interest; and 

3 ‘‘(C) before the proceeding concerning the 

4 matter presenting the conflict of interest, receives 

5 a written determination by the Authority that 

6 the interest is not so substantial as to be likely 

7 to affect the integrity of the services that the Au8 thority may expect from the State member, In9 dian tribe member, alternate, officer, or em10 ployee. 

11 ‘‘(3) VIOLATION.—Any person that violates this 

12 subsection shall be fined not more than $10,000, im13 prisoned not more than 2 years, or both. 

14 ‘‘(j) VALIDITY OF CONTRACTS, LOANS, AND GRANTS.— 

15 The Authority may declare void any contract, loan, or 

16 grant of or by the Authority in relation to which the Au17 thority determines that there has been a violation of any 

18 provision under subsection (h)(4) or subsection (i) of this 

19 chapter, or sections 202 through 209 of title 18, United 

20 States Code. 

21 ‘‘SEC. 3823. INTERSTATE COOPERATION FOR ECONOMIC OP22 PORTUNITY AND EFFICIENCY. 

23 ‘‘(a) IN GENERAL.—The Authority shall provide as24 sistance to States in developing regional plans to address 

25 multistate economic issues, including plans— 
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† HR 2642 EAS 

1 ‘‘(1) to develop a regional transmission system 

2 for movement of renewable energy to markets outside 

3 the region; 

4 ‘‘(2) to address regional transportation concerns, 

5 including the establishment of a Northern Great 

6 Plains Regional Transportation Working Group; 

7 ‘‘(3) to encourage and support interstate collabo8 ration on federally funded research that is in the na9 tional interest; and 

10 ‘‘(4) to establish a Regional Working Group on 

11 Agriculture Development and Transportation. 

12 ‘‘(b) ECONOMIC ISSUES.—The multistate economic 

13 issues referred to in subsection (a) shall include— 

14 ‘‘(1) renewable energy development and trans15 mission; 

16 ‘‘(2) transportation planning and economic de17 velopment; 

18 ‘‘(3) information technology; 

19 ‘‘(4) movement of freight and individuals within 

20 the region; 

21 ‘‘(5) federally funded research at institutions of 

22 higher education; and 

23 ‘‘(6) conservation land management. 
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1 ‘‘SEC. 3824. ECONOMIC AND COMMUNITY DEVELOPMENT 

2 GRANTS. 

3 ‘‘(a) IN GENERAL.—The Authority may approve 

4 grants to States, Indian tribes, local governments, and pub5 lic and nonprofit organizations for projects, approved in 

6 accordance with section 3830— 

7 ‘‘(1) to assist the region in obtaining the job 

8 training, employment-related education, and business 

9 development (with an emphasis on entrepreneurship) 

10 that are needed to build and maintain strong local 

11 economies; 

12 ‘‘(2) to develop the transportation, renewable en13 ergy transmission, and telecommunication infrastruc14 ture of the region for the purpose of facilitating eco15 nomic development in the region (except that grants 

16 for this purpose may be made only to States, Indian 

17 tribes, local governments, and nonprofit organiza18 tions); 

19 ‘‘(3) to provide assistance to severely distressed 

20 and underdeveloped areas that lack financial re21 sources for improving basic public services; 

22 ‘‘(4) to provide assistance to severely distressed 

23 and underdeveloped areas that lack financial re24 sources for equipping industrial parks and related fa25 cilities; and 
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† HR 2642 EAS 

1 ‘‘(5) to otherwise achieve the purposes of this 

2 chapter. 

3 ‘‘(b) FUNDING.— 

4 ‘‘(1) IN GENERAL.—Funds for grants under sub5 section (a) may be provided— 

6 ‘‘(A) entirely from appropriations to carry 

7 out this section; 

8 ‘‘(B) in combination with funds available 

9 under another Federal grant program; or 

10 ‘‘(C) from any other source. 

11 ‘‘(2) PRIORITY OF FUNDING.—To best build the 

12 foundations for long-term economic development and 

13 to complement other Federal, State, and tribal re14 sources in the region, Federal funds available under 

15 this chapter shall be focused on the following activi16 ties: 

17 ‘‘(A) Basic public infrastructure in dis18 tressed counties and isolated areas of distress. 

19 ‘‘(B) Transportation and telecommuni20 cation infrastructure for the purpose of facili21 tating economic development in the region. 

22 ‘‘(C) Business development, with emphasis 

23 on entrepreneurship. 
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1 ‘‘(D) Job training or employment-related 

2 education, with emphasis on use of existing pub3 lic educational institutions located in the region. 

4 ‘‘SEC. 3825. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS. 

5 ‘‘(a) FINDING.—Congress finds that certain States and 

6 local communities of the region may be unable to take max7 imum advantage of Federal grant programs for which the 

8 States and communities are eligible because— 

9 ‘‘(1) the States and communities lack the eco10 nomic resources to provide the required matching 

11 share; or 

12 ‘‘(2) there are insufficient funds available under 

13 the applicable Federal law authorizing the Federal 

14 grant program to meet pressing needs of the region. 

15 ‘‘(b) FEDERAL GRANT PROGRAM FUNDING.—Notwith16 standing any provision of law limiting the Federal share, 

17 the areas eligible for assistance, or the authorizations of ap18 propriations, under any Federal grant program, and in ac19 cordance with subsection (c), the Authority, with the ap20 proval of the Federal cochairperson and with respect to a 

21 project to be carried out in the region— 

22 ‘‘(1) may increase the Federal share of the costs 

23 of a project under any Federal grant program to not 

24 more than 90 percent (except as provided in section 

25 3827(b)); and 
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1 ‘‘(2) shall use amounts made available to carry 

2 out this chapter to pay the increased Federal share. 

3 ‘‘(c) CERTIFICATIONS.— 

4 ‘‘(1) IN GENERAL.—In the case of any project for 

5 which all or any portion of the basic Federal share 

6 of the costs of the project is proposed to be paid under 

7 this section, no Federal contribution shall be made 

8 until the Federal official administering the Federal 

9 law that authorizes the Federal grant program cer10 tifies that the project— 

11 ‘‘(A) meets (except as provided in subsection 

12 (b)) the applicable requirements of the applicable 

13 Federal grant program; and 

14 ‘‘(B) could be approved for Federal con15 tribution under the Federal grant program if 

16 funds were available under the law for the 

17 project. 

18 ‘‘(2) CERTIFICATION BY AUTHORITY.— 

19 ‘‘(A) IN GENERAL.—The certifications and 

20 determinations required to be made by the Au21 thority for approval of projects under this Act in 

22 accordance with section 3830 shall be— 

23 ‘‘(i) controlling; and 

24 ‘‘(ii) accepted by the Federal agencies. 
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1 ‘‘(B) ACCEPTANCE BY FEDERAL COCHAIR2 PERSON.—In the case of any project described in 

3 paragraph (1), any finding, report, certification, 

4 or documentation required to be submitted with 

5 respect to the project to the head of the depart6 ment, agency, or instrumentality of the Federal 

7 Government responsible for the administration of 

8 the Federal grant program under which the 

9 project is carried out shall be accepted by the 

10 Federal cochairperson. 

11 ‘‘SEC. 3826. MULTISTATE AND LOCAL DEVELOPMENT DIS12 TRICTS AND ORGANIZATIONS AND NORTH13 ERN GREAT PLAINS INC. 

14 ‘‘(a) DEFINITION OF MULTISTATE AND LOCAL DEVEL15 OPMENT DISTRICT OR ORGANIZATION.—In this section, the 

16 term ‘multistate and local development district or organiza17 tion’ means an entity— 

18 ‘‘(1) that— 

19 ‘‘(A) is a planning district that is recog20 nized by the Economic Development Administra21 tion of the Department of Commerce; or 

22 ‘‘(B) is— 

23 ‘‘(i) organized and operated in a man24 ner that ensures broad-based community 

25 participation and an effective opportunity 
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1 for other nonprofit groups to contribute to 

2 the development and implementation of pro3 grams in the region; 

4 ‘‘(ii) a nonprofit incorporated body or5 ganized or chartered under the law of the 

6 State in which the entity is located; 

7 ‘‘(iii) a nonprofit agency or instru8 mentality of a State or local government; 

9 ‘‘(iv) a public organization established 

10 before the date of enactment of the Agri11 culture Reform, Food, and Jobs Act of 2013 

12 under State law for creation of multijuris13 dictional, area-wide planning organiza14 tions; 

15 ‘‘(v) a nonprofit agency or instrumen16 tality of a State that was established for the 

17 purpose of assisting with multistate co18 operation; or 

19 ‘‘(vi) a nonprofit association or com20 bination of bodies, agencies, and instrumen21 talities described in clauses (ii) through (v); 

22 and 

23 ‘‘(2) that has not, as certified by the Authority 

24 (in consultation with the Federal cochairperson or 

25 Secretary, as appropriate)— 
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† HR 2642 EAS 

1 ‘‘(A) inappropriately used Federal grant 

2 funds from any Federal source; or 

3 ‘‘(B) appointed an officer who, during the 

4 period in which another entity inappropriately 

5 used Federal grant funds from any Federal 

6 source, was an officer of the other entity. 

7 ‘‘(b) GRANTS TO MULTISTATE, LOCAL, OR REGIONAL

8 DEVELOPMENT DISTRICTS AND ORGANIZATIONS.— 

9 ‘‘(1) IN GENERAL.—The Authority may make 

10 grants for administrative expenses under this section 

11 to multistate, local, and regional development dis12 tricts and organizations. 

13 ‘‘(2) CONDITIONS FOR GRANTS.— 

14 ‘‘(A) MAXIMUM AMOUNT.—The amount of 

15 any grant awarded under paragraph (1) shall 

16 not exceed 80 percent of the administrative ex17 penses of the multistate, local, or regional devel18 opment district or organization receiving the 

19 grant. 

20 ‘‘(B) MAXIMUM PERIOD.—No grant de21 scribed in paragraph (1) shall be awarded for a 

22 period of greater than 3 years. 

23 ‘‘(3) LOCAL SHARE.—The contributions of a 

24 multistate, local, or regional development district or 

25 organization for administrative expenses may be in 
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† HR 2642 EAS 

1 cash or in kind, fairly evaluated, including space, 

2 equipment, and services. 

3 ‘‘(c) DUTIES.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), a local development district shall operate 

6 as a lead organization serving multicounty areas in 

7 the region at the local level. 

8 ‘‘(2) DESIGNATION.—The Federal cochairperson 

9 may designate an Indian tribe or multijurisdictional 

10 organization to serve as a lead organization in such 

11 cases as the Federal cochairperson or Secretary, as 

12 appropriate, determines appropriate. 

13 ‘‘(d) NORTHERN GREAT PLAINS INC.—Northern Great 

14 Plains Inc., a nonprofit corporation incorporated in the 

15 State of Minnesota to implement the recommendations of 

16 the Northern Great Plains Rural Development Commission 

17 established by the Northern Great Plains Rural Develop18 ment Act (7 U.S.C. 2661 note; Public Law 103–318)— 

19 ‘‘(1) shall serve as an independent, primary re20 source for the Authority on issues of concern to the re21 gion; 

22 ‘‘(2) shall advise the Authority on development of 

23 international trade; 

24 ‘‘(3) may provide research, education, training, 

25 and other support to the Authority; and 
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† HR 2642 EAS 

1 ‘‘(4) may carry out other activities on its own 

2 behalf or on behalf of other entities. 

3 ‘‘SEC. 3827. DISTRESSED COUNTIES AND AREAS AND NON4 DISTRESSED COUNTIES. 

5 ‘‘(a) DESIGNATIONS.—Each year, the Authority, in ac6 cordance with such criteria as the Authority may establish, 

7 shall designate— 

8 ‘‘(1) as distressed counties, counties in the region 

9 that are the most severely and persistently distressed 

10 and underdeveloped and have high rates of poverty, 

11 unemployment, or outmigration; 

12 ‘‘(2) as nondistressed counties, counties in the re13 gion that are not designated as distressed counties 

14 under paragraph (1); and 

15 ‘‘(3) as isolated areas of distress, areas located in 

16 nondistressed counties (as designated under para17 graph (2)) that have high rates of poverty, unemploy18 ment, or outmigration. 

19 ‘‘(b) DISTRESSED COUNTIES.— 

20 ‘‘(1) IN GENERAL.—The Authority shall allocate 

21 at least 50 percent of the appropriations made avail22 able under section 3834 for programs and projects de23 signed to serve the needs of distressed counties and 

24 isolated areas of distress in the region. 
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† HR 2642 EAS 

1 ‘‘(2) FUNDING LIMITATIONS.—The funding limi2 tations under section 3825(b) shall not apply to a 

3 project to provide transportation or telecommuni4 cation or basic public services to residents of 1 or 

5 more distressed counties or isolated areas of distress 

6 in the region. 

7 ‘‘(c) TRANSPORTATION, TELECOMMUNICATION, RE8 NEWABLE ENERGY, AND BASIC PUBLIC INFRASTRUC9 TURE.—The Authority shall allocate at least 50 percent of 

10 any funds made available under section 3834 for transpor11 tation, telecommunication, renewable energy, and basic 

12 public infrastructure projects authorized under paragraphs 

13 (1) and (3) of section 3824(a). 

14 ‘‘SEC. 3828. DEVELOPMENT PLANNING PROCESS. 

15 ‘‘(a) STATE DEVELOPMENT PLAN.—In accordance 

16 with policies established by the Authority, each State mem17 ber shall submit a development plan for the area of the re18 gion represented by the State member. 

19 ‘‘(b) CONTENT OF PLAN.—A State development plan 

20 submitted under subsection (a) shall reflect the goals, objec21 tives, and priorities identified in the regional development 

22 plan developed under section 3823(d)(2). 

23 ‘‘(c) CONSULTATION WITH INTERESTED LOCAL PAR24 TIES.—In carrying out the development planning process 
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† HR 2642 EAS 

1 (including the selection of programs and projects for assist2 ance), a State may— 

3 ‘‘(1) consult with— 

4 ‘‘(A) multistate, regional, and local develop5 ment districts and organizations; and 

6 ‘‘(B) local units of government; and 

7 ‘‘(2) take into consideration the goals, objectives, 

8 priorities, and recommendations of the entities de9 scribed in paragraph (1). 

10 ‘‘(d) PUBLIC PARTICIPATION.— 

11 ‘‘(1) IN GENERAL.—The Authority and applica12 ble multistate, regional, and local development dis13 tricts and organizations shall encourage and assist, to 

14 the maximum extent practicable, public participation 

15 in the development, revision, and implementation of 

16 all plans and programs under this chapter. 

17 ‘‘(2) REGULATIONS.—The Authority shall de18 velop guidelines for providing public participation 

19 described in paragraph (1), including public hear20 ings. 

21 ‘‘SEC. 3829. PROGRAM DEVELOPMENT CRITERIA. 

22 ‘‘(a) IN GENERAL.—In considering programs and 

23 projects to be provided assistance under this chapter, and 

24 in establishing a priority ranking of the requests for assist25 ance provided to the Authority, the Authority shall follow 
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† HR 2642 EAS 

1 procedures that ensure, to the maximum extent practicable, 

2 consideration of— 

3 ‘‘(1) the relationship of the project or class of 

4 projects to overall multistate or regional development; 

5 ‘‘(2) the per capita income and poverty and un6 employment and outmigration rates in an area; 

7 ‘‘(3) the financial resources available to the ap8 plicants for assistance seeking to carry out the 

9 project, with emphasis on ensuring that projects are 

10 adequately financed to maximize the probability of 

11 successful economic development; 

12 ‘‘(4) the importance of the project or class of 

13 projects in relation to other projects or classes of 

14 projects that may be in competition for the same 

15 funds; 

16 ‘‘(5) the prospects that the project for which as17 sistance is sought will improve, on a continuing rath18 er than a temporary basis, the opportunities for em19 ployment, the average level of income, or the economic 

20 development of the area to be served by the project; 

21 and 

22 ‘‘(6) the extent to which the project design pro23 vides for detailed outcome measurements by which 

24 grant expenditures and the results of the expenditures 

25 may be evaluated. 
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† HR 2642 EAS 

1 ‘‘(b) NO RELOCATION ASSISTANCE.— 

2 ‘‘(1) IN GENERAL.—Except as provided in para3 graph (2), no financial assistance authorized by this 

4 chapter shall be used to assist a person or entity in 

5 relocating from 1 area to another. 

6 ‘‘(2) OUTSIDE BUSINESSES.—Financial assist7 ance under this chapter may be used as otherwise au8 thorized by this title to attract businesses from outside 

9 the region to the region. 

10 ‘‘(c) MAINTENANCE OF EFFORT.—Funds may be pro11 vided for a program or project in a State under this chapter 

12 only if the Authority determines that the level of Federal 

13 or State financial assistance provided under a law other 

14 than this chapter, for the same type of program or project 

15 in the same area of the State within the region, will not 

16 be reduced as a result of funds made available by this chap17 ter. 

18 ‘‘SEC. 3830. APPROVAL OF DEVELOPMENT PLANS AND 

19 PROJECTS. 

20 ‘‘(a) IN GENERAL.—A State or regional development 

21 plan or any multistate subregional plan that is proposed 

22 for development under this chapter shall be reviewed by the 

23 Authority. 

24 ‘‘(b) EVALUATION BY STATE MEMBER.—An applica25 tion for a grant or any other assistance for a project under 
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† HR 2642 EAS 

1 this chapter shall be made through and evaluated for ap2 proval by the State member of the Authority representing 

3 the applicant. 

4 ‘‘(c) CERTIFICATION.—An application for a grant or 

5 other assistance for a project shall be approved only on cer6 tification by the State member that the application for the 

7 project— 

8 ‘‘(1) describes ways in which the project complies 

9 with any applicable State development plan; 

10 ‘‘(2) meets applicable criteria under section 

11 3829; 

12 ‘‘(3) provides adequate assurance that the pro13 posed project will be properly administered, operated, 

14 and maintained; and 

15 ‘‘(4) otherwise meets the requirements of this 

16 chapter. 

17 ‘‘(d) VOTES FOR DECISIONS.—On certification by a 

18 State member of the Authority of an application for a grant 

19 or other assistance for a specific project under this section, 

20 an affirmative vote of the Authority under section 3822(c) 

21 shall be required for approval of the application. 

22 ‘‘SEC. 3831. CONSENT OF STATES. 

23 ‘‘Nothing in this chapter requires any State to engage 

24 in or accept any program under this chapter without the 

25 consent of the State. 
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† HR 2642 EAS 

1 ‘‘SEC. 3832. RECORDS. 

2 ‘‘(a) RECORDS OF THE AUTHORITY.— 

3 ‘‘(1) IN GENERAL.—The Authority shall main4 tain accurate and complete records of all transactions 

5 and activities of the Authority. 

6 ‘‘(2) AVAILABILITY.—All records of the Authority 

7 shall be available for audit and examination by the 

8 Comptroller General of the United States and the In9 spector General of the Department of Agriculture (in10 cluding authorized representatives of the Comptroller 

11 General and the Inspector General of the Department 

12 of Agriculture). 

13 ‘‘(b) RECORDS OF RECIPIENTS OF FEDERAL ASSIST14 ANCE.— 

15 ‘‘(1) IN GENERAL.—A recipient of Federal funds 

16 under this chapter shall, as required by the Authority, 

17 maintain accurate and complete records of trans18 actions and activities financed with Federal funds 

19 and report to the Authority on the transactions and 

20 activities to the Authority. 

21 ‘‘(2) AVAILABILITY.—All records required under 

22 paragraph (1) shall be available for audit by the 

23 Comptroller General of the United States, the Inspec24 tor General of the Department of Agriculture, and the 

25 Authority (including authorized representatives of the 
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† HR 2642 EAS 

1 Comptroller General, the Inspector General of the De2 partment of Agriculture, and the Authority). 

3 ‘‘(c) ANNUAL AUDIT.—The Inspector General of the 

4 Department of Agriculture shall audit the activities, trans5 actions, and records of the Authority on an annual basis 

6 for any fiscal year for which funds are appropriated. 

7 ‘‘SEC. 3833. ANNUAL REPORT. 

8 ‘‘Not later than 180 days after the end of each fiscal 

9 year, the Authority shall submit to the President and to 

10 Congress a report describing the activities carried out under 

11 this chapter. 

12 ‘‘SEC. 3834. AUTHORIZATION OF APPROPRIATIONS. 

13 ‘‘(a) IN GENERAL.—There is authorized to be appro14 priated to the Authority to carry out this chapter 

15 $30,000,000 for each of fiscal years 2014 through 2018, to 

16 remain available until expended. 

17 ‘‘(b) ADMINISTRATIVE EXPENSES.—Not more than 5 

18 percent of the amount appropriated under subsection (a) 

19 for a fiscal year shall be used for administrative expenses 

20 of the Authority. 

21 ‘‘(c) MINIMUM STATE SHARE OF GRANTS.—Notwith22 standing any other provision of this chapter, for any fiscal 

23 year, the aggregate amount of grants received by a State 

24 and all persons or entities in the State under this chapter 
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† HR 2642 EAS 

shall be not less than 1 1 ⁄3 of the product obtained by multi2 plying— 

3 ‘‘(1) the aggregate amount of grants under this 

4 chapter for the fiscal year; and 

5 ‘‘(2) the ratio that— 

6 ‘‘(A) the population of the State (as deter7 mined by the Secretary of Commerce based on 

8 the most recent decennial census for which data 

9 are available); bears to 

10 ‘‘(B) the population of the region (as so de11 termined). 

12 ‘‘SEC. 3835. TERMINATION OF AUTHORITY. 

13 ‘‘The authority provided by this chapter terminates ef14 fective October 1, 2018. 

15 ‘‘Subtitle C—General Provisions 

16 ‘‘SEC. 3901. FULL FAITH AND CREDIT. 

17 ‘‘(a) IN GENERAL.—A guarantee executed by the Sec18 retary under this title shall be an obligation supported by 

19 the full faith and credit of the United States. 

20 ‘‘(b) CONTESTABILITY.—A guarantee executed by the 

21 Secretary under this title shall be incontestable except for 

22 fraud or misrepresentation that the lender or any holder— 

23 ‘‘(1) has actual knowledge of at the time the 

24 guarantee is executed; or 

25 ‘‘(2) participates in or condones. 
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1 ‘‘SEC. 3902. PURCHASE AND SALE OF GUARANTEED POR2 TIONS OF LOANS. 

3 ‘‘(a) IN GENERAL.—Subject to subsections (b) and (c), 

4 the Secretary may purchase, on such terms and conditions 

5 as the Secretary considers appropriate, the guaranteed por6 tion of a loan guaranteed under this title, if the Secretary 

7 determines that an adequate secondary market is not avail8 able in the private sector. 

9 ‘‘(b) MAXIMUM PAYMENT.—The Secretary may not 

10 pay for any guaranteed portion of a loan under subsection 

11 (a) in excess of an amount equal to the unpaid principal 

12 balance and accrued interest on the guaranteed portion of 

13 the loan. 

14 ‘‘(c) SOURCES OF FUNDING.—The Secretary may use 

15 for the purchases— 

16 ‘‘(1) funds from the Rural Development Insur17 ance Fund with respect to rural development loans 

18 (as defined in section 3704(a)); and 

19 ‘‘(2) funds from the Agricultural Credit Insur20 ance Fund with respect to all other loans under this 

21 title. 

22 ‘‘(d) SALE OF GUARANTEED LOANS.— 

23 ‘‘(1) SALES.— 

24 ‘‘(A) REGULATION.— 

25 ‘‘(i) IN GENERAL.—The guaranteed 

26 portion of any loan made under this title 
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1 may be sold by the lender, and by any sub2 sequent holder, in accordance with such reg3 ulations governing the sales as the Secretary 

4 shall establish, subject to clauses (ii) and 

5 (iii). 

6 ‘‘(ii) FEES TO BE PAID IN FULL.—All 

7 fees due the Secretary with respect to a 

8 guaranteed loan shall be paid in full before 

9 any sale. 

10 ‘‘(iii) LOAN TO BE FULLY DIS11 BURSED.—The loan shall be fully disbursed 

12 to the borrower before the sale. 

13 ‘‘(B) POST-SALE.—After a loan is sold in 

14 the secondary market, the lender shall— 

15 ‘‘(i) remain obligated under the guar16 antee agreement of the lender with the Sec17 retary; and 

18 ‘‘(ii) continue to service the loan in ac19 cordance with the terms and conditions of 

20 that agreement. 

21 ‘‘(C) PROCEDURES.—The Secretary shall 

22 develop such procedures as are necessary for— 

23 ‘‘(i) the facilitation, administration, 

24 and promotion of secondary market oper25 ations; and 
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† HR 2642 EAS 

1 ‘‘(ii) determining the increase of access 

2 of farmers to capital at reasonable rates 

3 and terms as a result of secondary market 

4 operations. 

5 ‘‘(D) RIGHTS TO PREPAY.—This subsection 

6 does not impede or extinguish— 

7 ‘‘(i) the right of the borrower or the 

8 successor in interest to the borrower to pre9 pay (in whole or in part) any loan made 

10 under this title; or 

11 ‘‘(ii) the rights of any party under any 

12 provision of this title. 

13 ‘‘(2) ISSUE POOL CERTIFICATES.— 

14 ‘‘(A) IN GENERAL.—The Secretary may, di15 rectly or through a market maker approved by 

16 the Secretary, issue pool certificates representing 

17 ownership of part or all of the guaranteed por18 tion of any loan guaranteed by the Secretary 

19 under this title. 

20 ‘‘(B) APPROVAL.—Certificates under sub21 paragraph (A) shall be based on and backed by 

22 a pool established or approved by the Secretary 

23 and composed solely of the entire guaranteed 

24 portion of the loans. 
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† HR 2642 EAS 

1 ‘‘(C) GUARANTEE OF POOL.—On such terms 

2 and conditions as the Secretary considers appro3 priate, the Secretary may guarantee the timely 

4 payment of the principal and interest on pool 

5 certificates issued on behalf of the Secretary by 

6 approved market makers for purposes of this sub7 section. 

8 ‘‘(D) LIMITATIONS.—A guarantee under 

9 subparagraph (C) shall be limited to the extent 

10 of principal and interest on the guaranteed por11 tions of loans that compose the pool. 

12 ‘‘(E) PREPAYMENT.—If a loan in a pool is 

13 prepaid, either voluntarily or by reason of de14 fault, the guarantee of timely payment of prin15 cipal and interest on the pool certificates shall be 

16 reduced in proportion to the amount of principal 

17 and interest that the prepaid loan represents in 

18 the pool. 

19 ‘‘(F) INTEREST ACCRUAL.—Interest on pre20 paid or defaulted loans shall accrue and be guar21 anteed by the Secretary only through the date of 

22 payment on the guarantee. 

23 ‘‘(G) REDEMPTION.—During the term of the 

24 pool certificate, the certificate may be called for 
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† HR 2642 EAS 

1 redemption due to prepayment or default of all 

2 loans constituting the pool. 

3 ‘‘(H) FULL FAITH AND CREDIT.—The full 

4 faith and credit of the United States is pledged 

5 to the payment of all amounts that may be re6 quired to be paid under any guarantee of the 

7 pool certificates issued by approved market mak8 ers under this subsection. 

9 ‘‘(I) FEES.— 

10 ‘‘(i) IN GENERAL.—The Secretary shall 

11 not collect any fee for any guarantee under 

12 this subsection. 

13 ‘‘(ii) SECRETARIAL FUNCTIONS.— 

14 Clause (i) does not preclude the Secretary 

15 from collecting a fee for the functions de16 scribed in paragraph (3). 

17 ‘‘(J) DEFAULT.—Not later than 30 days 

18 after a borrower of a guaranteed loan is in de19 fault of any principal or interest payment due 

20 for 60 days or more, the Secretary shall— 

21 ‘‘(i) purchase the pool certificates rep22 resenting ownership of the guaranteed por23 tion of the loan; and 

24 ‘‘(ii) pay the registered holder of the 

25 certificates an amount equal to the guaran-
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† HR 2642 EAS 

1 teed portion of the loan represented by the 

2 certificate. 

3 ‘‘(K) PAYMENT OF CLAIMS.—If the Sec4 retary pays a claim under a guarantee issued 

5 under this subsection, the claim shall be sub6 rogated fully to the rights satisfied by the pay7 ment, as may be provided by the Secretary. 

8 ‘‘(L) APPLICATION OF LAWS.—No State or 

9 local law, and no Federal law, shall preclude or 

10 limit the exercise by the Secretary of the owner11 ship rights of the Secretary in the portions of 

12 loans constituting the pool against which the cer13 tificates are issued. 

14 ‘‘(3) DUTIES OF THE SECRETARY.— 

15 ‘‘(A) IN GENERAL.—On the adoption of 

16 final rules and regulations, the Secretary shall— 

17 ‘‘(i) provide for the central collection of 

18 registration information from all partici19 pating market makers for all loans and pool 

20 certificates sold under paragraphs (1) and 

21 (2), including, with respect to each original 

22 sale and any subsequent sale— 

23 ‘‘(I) identification of the interest 

24 rate paid by the borrower to the lender; 
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† HR 2642 EAS 

1 ‘‘(II) the servicing fee of the lend2 er; 

3 ‘‘(III) disclosure of whether inter4 est on the loan is at a fixed or variable 

5 rate; 

6 ‘‘(IV) identification of each pur7 chaser of a pool certificate; 

8 ‘‘(V) the interest rate paid on the 

9 certificate; and 

10 ‘‘(VI) such other information as 

11 the Secretary considers appropriate. 

12 ‘‘(ii) before any sale, require the seller 

13 (as defined in subparagraph (B)) to disclose 

14 to each prospective purchaser of the portion 

15 of a loan guaranteed under this title and to 

16 each prospective purchaser of a pool certifi17 cate issued under paragraph (2) informa18 tion on the terms, conditions, and yield of 

19 such instrument; 

20 ‘‘(iii) provide for adequate custody of 

21 any pooled guaranteed loans; 

22 ‘‘(iv) take such actions as are nec23 essary, in restructuring pools of the guaran24 teed portion of loans, to minimize the esti-
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† HR 2642 EAS 

1 mated costs of paying claims under guaran2 tees issued under this subsection; 

3 ‘‘(v) require each market maker— 

4 ‘‘(I) to service all pools formed, 

5 and participations sold, by the market 

6 maker; and 

7 ‘‘(II) to provide the Secretary 

8 with information relating to the collec9 tion and disbursement of all periodic 

10 payments, prepayments, and default 

11 funds from lenders, to or from the re12 serve fund that the Secretary shall es13 tablish to enable the timely payment 

14 guarantee to be self-funding, and from 

15 all beneficial holders; and 

16 ‘‘(vi) regulate market makers in pool 

17 certificates sold under this subsection. 

18 ‘‘(B) DEFINITION OF SELLER.—For pur19 poses of subparagraph (A)(ii), if the instrument 

20 being sold is a loan, the term ‘seller’ does not in21 clude— 

22 ‘‘(i) the person who made the loan; or 

23 ‘‘(ii) any person who sells 3 or fewer 

24 guaranteed loans per year. 
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† HR 2642 EAS 

1 ‘‘(4) CONTRACT FOR SERVICES.—The Secretary 

2 may contract for goods and services to be used for the 

3 purposes of this subsection without regard to titles 5, 

4 40, and 41, United States Code (including any regu5 lations issued under those titles). 

6 ‘‘SEC. 3903. ADMINISTRATION. 

7 ‘‘(a) POWERS OF SECRETARY.—The Secretary may— 

8 ‘‘(1)(A) administer the powers and duties of the 

9 Secretary through such national, area, State, or local 

10 offices and employees in the United States as the Sec11 retary determines to be necessary; and 

12 ‘‘(B) authorize an office to serve an area com13 posed of 2 or more States if the Secretary determines 

14 that the volume of business in the area is not suffi15 cient to justify separate State offices; 

16 ‘‘(2)(A) accept and use voluntary and uncom17 pensated services; and 

18 ‘‘(B) with the consent of the agency concerned, 

19 use the officers, employees, equipment, and informa20 tion of any agency of the Federal Government, or of 

21 any State, territory, or political subdivision; 

22 ‘‘(3) subject to appropriations, make necessary 

23 expenditures for the purchase or hire of passenger ve24 hicles, and such other facilities and services as the 
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1 Secretary may from time to time find necessary for 

2 the proper administration of this title; 

3 ‘‘(4) subject to subsection (b), compromise, ad4 just, reduce, or charge-off debts or claims (including 

5 debts and claims arising from loan guarantees), and 

6 adjust, modify, subordinate, or release the terms of se7 curity instruments, leases, contracts, and agreements 

8 entered into or administered by the Farm Service 

9 Agency, the Rural Utilities Service, the Rural Hous10 ing Service, the Rural Business-Cooperative Service, 

11 or successor agencies under this title, except for activi12 ties conducted under the Housing Act of 1949 (42 

13 U.S.C. 1441 et seq.); 

14 ‘‘(5)(A) except for activities conducted under the 

15 Housing Act of 1949 (42 U.S.C. 1441 et seq.), collect 

16 all claims and obligations administered by the Farm 

17 Service Agency, the Rural Utilities Service, the Rural 

18 Housing Service, or the Rural Business-Cooperative 

19 Service, or under any mortgage, lease, contract, or 

20 agreement entered into or administered by the Agency 

21 or Service; and 

22 ‘‘(B) if the Secretary determines the action is 

23 necessary and advisable, pursue the collection to final 

24 collection in any court having jurisdiction; 
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† HR 2642 EAS 

1 ‘‘(6) release mortgage and other contract liens if 

2 it appears that the mortgage and liens have no 

3 present or prospective value or that the enforcement 

4 of the mortgage and liens likely would be ineffectual 

5 or uneconomical; 

6 ‘‘(7) obtain fidelity bonds protecting the Federal 

7 Government against fraud and dishonesty of officers 

8 and employees of the Farm Service Agency, the Rural 

9 Utilities Service, the Rural Housing Service, or the 

10 Rural Business-Cooperative Service in lieu of faithful 

11 performance of duties bonds under section 14 of title 

12 6, United States Code, but otherwise in accordance 

13 with the section; 

14 ‘‘(8) consent to— 

15 ‘‘(A) long-term leases of facilities financed 

16 under this title notwithstanding the failure of the 

17 lessee to meet any of the requirements of this title 

18 if the long-term leases are necessary to ensure the 

19 continuation of services for which financing was 

20 extended to the lessor; and 

21 ‘‘(B) the transfer of property securing any 

22 loan or financed by any loan or grant made or 

23 guaranteed by the Farm Service Agency, the 

24 Rural Utilities Service, the Rural Housing Serv25 ice, or the Rural Business-Cooperative Service 
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† HR 2642 EAS 

1 under this title, or any other law administered 

2 by the Secretary, on such terms as the Secretary 

3 considers necessary to carry out the purpose of 

4 the loan or grant or to protect the financial in5 terest of the Federal Government, provided that 

6 the Secretary shall document the consent of the 

7 Secretary for the transfer of the property of a 

8 borrower in the file of the borrower; and 

9 ‘‘(9) notwithstanding that an area ceases, or has 

10 ceased, to be rural, in a rural area, or an eligible 

11 area, make loans and grants, and approve transfers 

12 and assumptions, under this title on the same basis 

13 as though the area still was rural in connection with 

14 property securing any loan made or guaranteed by 

15 the Secretary under this title or in connection with 

16 any property held by the Secretary under this title. 

17 ‘‘(b) LOAN ADJUSTMENTS.— 

18 ‘‘(1) NO LIQUIDATION OF PROPERTY.—The Sec19 retary may not require liquidation of property secur20 ing any farmer program loan or acceleration of any 

21 payment required under any farmer program loan as 

22 a prerequisite to initiating an action authorized 

23 under subsection (a). 

24 ‘‘(2) RELEASE OF PERSONAL LIABILITY.— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the Secretary may release a 

3 borrower or other person obligated on a debt 

4 (other than debt incurred under the Housing Act 

5 of 1949 (42 U.S.C. 1441 et seq.)) from personal 

6 liability with or without payment of any consid7 eration at the time of the compromise, adjust8 ment, reduction, or charge-off of any claim. 

9 ‘‘(B) EXCEPTION.—No compromise, adjust10 ment, reduction, or charge-off of any claim may 

11 be made or carried out after the claim has been 

12 referred to the Attorney General, unless the At13 torney General approves. 

14 ‘‘(3) RURAL ELECTRIFICATION SECURITY IN15 STRUMENTS.—In the case of a security instrument 

16 entered into under the Rural Electrification Act of 

17 1936 (7 U.S.C. 901 et seq.), the Secretary shall notify 

18 the Attorney General of the intent of the Secretary to 

19 exercise the authority of the Secretary under para20 graph (2). 

21 ‘‘(c) SIMPLIFIED APPLICATION FORMS FOR LOAN

22 GUARANTEES.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall provide 

24 to lenders a short, simplified application form for 

25 guarantees under this title of— 
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† HR 2642 EAS 

1 ‘‘(A) farmer program loans the principal 

2 amount of which is $125,000 or less; and 

3 ‘‘(B) business and industry guaranteed 

4 loans under section 3601(a)(2)(A) the principal 

5 amount of which is— 

6 ‘‘(i) $400,000 or less; or 

7 ‘‘(ii) if the Secretary determines that 

8 there is not a significant increased risk of 

9 a default on the loan, $600,000 or less. 

10 ‘‘(2) WATER AND WASTE DISPOSAL GRANTS AND

11 LOANS.—The Secretary shall develop an application 

12 process that accelerates, to the maximum extent prac13 ticable, the processing of applications for water and 

14 waste disposal grants or direct or guaranteed loans 

15 under section 3501(a)(1) the grant award amount or 

16 principal loan amount, respectively, of which is 

17 $300,000 or less. 

18 ‘‘(3) ADMINISTRATION.—In developing an appli19 cation under this subsection, the Secretary shall— 

20 ‘‘(A) consult with commercial and coopera21 tive lenders; and 

22 ‘‘(B) ensure that— 

23 ‘‘(i) the form can be completed manu24 ally or electronically, at the option of the 

25 lender; 
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† HR 2642 EAS 

1 ‘‘(ii) the form minimizes the docu2 mentation required to accompany the form; 

3 ‘‘(iii) the cost of completing and proc4 essing the form is minimal; and 

5 ‘‘(iv) the form can be completed and 

6 processed in an expeditious manner. 

7 ‘‘(d) USE OF ATTORNEYS FOR PROSECUTION OR DE8 FENSE OF CLAIMS.—The Secretary may use for the prosecu9 tion or defense of any claim or obligation described in sub10 section (a)(5) the Attorney General, the General Counsel of 

11 the Department, or a private attorney who has entered into 

12 a contract with the Secretary. 

13 ‘‘(e) PRIVATE COLLECTION AGENCY.—The Secretary 

14 may use a private collection agency to collect a claim or 

15 obligation described in subsection (a)(5). 

16 ‘‘(f) SECURITY SERVICING.— 

17 ‘‘(1) IN GENERAL.—The Secretary may— 

18 ‘‘(A) make advances, without regard to any 

19 loan or total indebtedness limitation, to preserve 

20 and protect the security for, or the lien or pri21 ority of the lien securing any loan or other in22 debtedness owing to or acquired by the Secretary 

23 under this title or under any other program ad24 ministered by the Farm Service Agency, the 

25 Rural Utilities Service, the Rural Housing Serv-
804 

† HR 2642 EAS 

1 ice, or the Rural Business-Cooperative Service 

2 applicable program, as determined by the Sec3 retary; and 

4 ‘‘(B)(i) bid for and purchase at any execu5 tion, foreclosure, or other sale or otherwise ac6 quire property on which the United States has a 

7 lien by reason of a judgment or execution arising 

8 from, or that is pledged, mortgaged, conveyed, at9 tached, or levied on to secure the payment of, the 

10 indebtedness regardless of whether the property is 

11 subject to other liens; 

12 ‘‘(ii) accept title to any property so pur13 chased or acquired; and 

14 ‘‘(iii) sell, manage, or otherwise dispose of 

15 the property in accordance with this subsection. 

16 ‘‘(2) OPERATION OR LEASE OF REALTY.—Except 

17 as provided in subsections (c) and (e), real property 

18 administered under this title may be operated or 

19 leased by the Secretary for such period as the Sec20 retary may consider necessary to protect the invest21 ment of the Federal Government in the property. 

22 ‘‘(g) PAYMENTS TO LENDERS.— 

23 ‘‘(1) REQUIREMENT.—Not later than 90 days 

24 after a court of competent jurisdiction confirms a 

25 plan of reorganization under chapter 12 of title 11, 
805 

† HR 2642 EAS 

1 United States Code, for any borrower to whom a 

2 lender has made a loan guaranteed under this title, 

3 the Secretary shall pay the lender an amount esti4 mated by the Secretary to be equal to the loss in5 curred by the lender for purposes of the guarantee. 

6 ‘‘(2) PAYMENT TOWARD LOAN GUARANTEE.—Any 

7 amount paid to a lender under this subsection with 

8 respect to a loan guaranteed under this title shall be 

9 treated as payment towards satisfaction of the loan 

10 guarantee. 

11 ‘‘SEC. 3904. LOAN MORATORIUM AND POLICY ON FORE12 CLOSURES. 

13 ‘‘(a) IN GENERAL.—In addition to any other authority 

14 that the Secretary may have to defer principal and interest 

15 and forgo foreclosure, the Secretary may permit, at the re16 quest of the borrower, the deferral of principal and interest 

17 on any outstanding loan made or guaranteed by the Sec18 retary under this title, or under any other law administered 

19 by the Farm Service Agency, the Rural Utilities Service, 

20 the Rural Housing Service, or the Rural Business-Coopera21 tive Service, and may forgo foreclosure of the loan, for such 

22 period as the Secretary considers necessary on a showing 

23 by the borrower that, due to circumstances beyond the con24 trol of the borrower, the borrower is temporarily unable to 

25 continue making payments of the principal and interest 
806 

† HR 2642 EAS 

1 when due without unduly impairing the standard of living 

2 of the borrower. 

3 ‘‘(b) INTEREST.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the Secretary may permit any loan de6 ferred under this section to bear no interest during or 

7 after the deferral period. 

8 ‘‘(2) EXCEPTION.—If the security instrument se9 curing the loan is foreclosed, such interest as is in10 cluded in the purchase price at the foreclosure shall 

11 become part of the principal and draw interest from 

12 the date of foreclosure at the rate prescribed by law. 

13 ‘‘(c) MORATORIUM REGARDING CIVIL RIGHTS

14 CLAIMS.— 

15 ‘‘(1) IN GENERAL.—Except as otherwise provided 

16 in this subsection, effective beginning on May 22, 

17 2008, there shall be in effect a moratorium, with re18 spect to farmer program loans made under subtitle A, 

19 on all acceleration and foreclosure proceedings insti20 tuted by the Department against any farmer who— 

21 ‘‘(A) has pending against the Department a 

22 claim of program discrimination that is accepted 

23 by the Department as valid; or 

24 ‘‘(B) files a claim of program discrimina25 tion that is accepted by the Department as valid. 
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† HR 2642 EAS 

1 ‘‘(2) WAIVER OF INTEREST AND OFFSETS.—Dur2 ing the period of the moratorium, the Secretary shall 

3 waive the accrual of interest and offsets on all farmer 

4 program loans made under subtitle A for which loan 

5 acceleration or foreclosure proceedings have been sus6 pended under paragraph (1). 

7 ‘‘(3) TERMINATION OF MORATORIUM.—The mor8 atorium shall terminate with respect to a claim of 

9 discrimination by a farmer on the earlier of— 

10 ‘‘(A) the date the Secretary resolves the 

11 claim; or 

12 ‘‘(B) if the farmer appeals the decision of 

13 the Secretary on the claim to a court of com14 petent jurisdiction, the date that the court ren15 ders a final decision on the claim. 

16 ‘‘(4) FAILURE TO PREVAIL.—If a farmer does not 

17 prevail on a claim of discrimination described in 

18 paragraph (1), the farmer shall be liable for any in19 terest and offsets that accrued during the period that 

20 loan acceleration or foreclosure proceedings have been 

21 suspended under paragraph (1). 

22 ‘‘SEC. 3905. OIL AND GAS ROYALTY PAYMENTS ON LOANS. 

23 ‘‘(a) IN GENERAL.—The Secretary shall permit a bor24 rower of a loan made or guaranteed under this title to make 

25 a prospective payment on the loan with proceeds from— 
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† HR 2642 EAS 

1 ‘‘(1) the leasing of oil, gas, or other mineral 

2 rights to real property used to secure the loan; or 

3 ‘‘(2) the sale of oil, gas, or other minerals re4 moved from real property used to secure the loan, if 

5 the value of the rights to the oil, gas, or other min6 erals has not been used to secure the loan. 

7 ‘‘(b) APPLICABILITY.—Subsection (a) shall not apply 

8 to a borrower of a loan made or guaranteed under this title 

9 with respect to which a liquidation or foreclosure pro10 ceeding was pending on December 23, 1985. 

11 ‘‘SEC. 3906. TAXATION. 

12 ‘‘(a) IN GENERAL.—Except as provided in subsection 

13 (b), all property subject to a lien held by the United States 

14 or the title to which is acquired or held by the Secretary 

15 under this title (other than property used for administra16 tive purposes) shall be subject to taxation by State, terri17 tory, district, and local political subdivisions in the same 

18 manner and to the same extent as other property is taxed. 

19 ‘‘(b) EXCEPTIONS.—No tax shall be imposed or col20 lected as described in subsection (a) if the tax (whether as 

21 a tax on the instrument or in connection with conveying, 

22 transferring, or recording the instrument) is based on— 

23 ‘‘(1) the value of any notes or mortgages or other 

24 lien instruments held by or transferred to the Sec25 retary; 
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† HR 2642 EAS 

1 ‘‘(2) any notes or lien instruments administered 

2 under this title that are made, assigned, or held by 

3 a person otherwise liable for the tax; or 

4 ‘‘(3) the value of any property conveyed or trans5 ferred to the Secretary. 

6 ‘‘(c) FAILURE TO PAY OR COLLECT TAX.—The failure 

7 to pay or collect a tax under subsection (a) shall not— 

8 ‘‘(1) be a ground for— 

9 ‘‘(A) refusal to record or file an instrument; 

10 or 

11 ‘‘(B) failure to provide notice; or 

12 ‘‘(2) prevent the enforcement of the instrument 

13 in any Federal or State court. 

14 ‘‘SEC. 3907. CONFLICTS OF INTEREST. 

15 ‘‘(a) ACCEPTANCE OF CONSIDERATION PROHIBITED.— 

16 No officer, attorney, or other employee of the Department 

17 shall, directly or indirectly, be the beneficiary of or receive 

18 any fee, commission, gift, or other consideration for or in 

19 connection with any transaction or business under this title 

20 other than such salary, fee, or other compensation as the 

21 officer, attorney, or employee may receive as the officer, at22 torney, or employee. 

23 ‘‘(b) ACQUISITION OF INTEREST IN LAND PROHIB24 ITED.— 
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† HR 2642 EAS 

1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), no officer or employee of the Department 

3 who acts on or reviews an application made by any 

4 person under this title for a loan to purchase land 

5 may acquire, directly or indirectly, any interest in 

6 the land for a period of 3 years after the date on 

7 which the action is taken or the review is made. 

8 ‘‘(2) FORMER COUNTY COMMITTEE MEMBERS.— 

9 Paragraph (1) shall not apply to a former member of 

10 a county committee on a determination by the Sec11 retary, prior to the acquisition of the interest, that the 

12 former member acted in good faith when acting on or 

13 reviewing the application. 

14 ‘‘(c) PENALTIES.—Any person violating this section 

15 shall, on conviction of the violation, be punished by a fine 

16 of not more than $2,000 or imprisonment for not more than 

17 2 years, or both. 

18 ‘‘SEC. 3908. LOAN SUMMARY STATEMENTS. 

19 ‘‘(a) DEFINITION OF SUMMARY PERIOD.—In this sec20 tion, the term ‘summary period’ means the period begin21 ning on the date of issuance of the preceding loan summary 

22 statement and ending on the date of issuance of the current 

23 loan summary statement. 

24 ‘‘(b) ISSUANCE OF STATEMENTS.—On the request of a 

25 borrower of a loan made (but not guaranteed) under this 
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† HR 2642 EAS 

1 title, the Secretary shall issue to the borrower a loan sum2 mary statement that reflects the account activity during the 

3 summary period for each loan made under this title to the 

4 borrower, including— 

5 ‘‘(1) the outstanding amount of principal due on 

6 each loan at the beginning of the summary period; 

7 ‘‘(2) the interest rate charged on each loan; 

8 ‘‘(3) the amount of payments made on, and the 

9 application of the payments to, each loan during the 

10 summary period and an explanation of the basis for 

11 the application of the payments; 

12 ‘‘(4) the amount of principal and interest due on 

13 each loan at the end of the summary period; 

14 ‘‘(5) the total amount of unpaid principal and 

15 interest on all loans at the end of the summary pe16 riod; 

17 ‘‘(6) any delinquency in the repayment of any 

18 loan; 

19 ‘‘(7) a schedule of the amount and date of pay20 ments due on each loan; and 

21 ‘‘(8) the procedure the borrower may use to ob22 tain more information concerning the status of the 

23 loans. 

24 ‘‘SEC. 3909. CERTIFIED LENDERS PROGRAM. 

25 ‘‘(a) CERTIFIED LENDERS PROGRAM.— 
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† HR 2642 EAS 

1 ‘‘(1) IN GENERAL.—The Secretary shall establish 

2 a program under which the Secretary shall guarantee 

3 loans under this title that are made by lending insti4 tutions certified by the Secretary. 

5 ‘‘(2) CERTIFICATION REQUIREMENTS.—The Sec6 retary shall certify a lending institution that meets 

7 such criteria as the Secretary may prescribe in regu8 lations, including the ability of the institution to 

9 properly make, service, and liquidate the loans of the 

10 institution. 

11 ‘‘(3) CONDITION OF CERTIFICATION.— 

12 ‘‘(A) IN GENERAL.—As a condition of the 

13 certification, the Secretary shall require the in14 stitution to undertake to service the loans guar15 anteed by the Secretary under this section, using 

16 standards that are not less stringent than gen17 erally accepted banking standards concerning 

18 loan servicing employed by prudent commercial 

19 or cooperative lenders. 

20 ‘‘(B) MONITORING.—The Secretary shall, at 

21 least annually, monitor the performance of each 

22 certified lender to ensure that the conditions of 

23 the certification are being met. 

24 ‘‘(4) EFFECT OF CERTIFICATION.—Notwith25 standing any other provision of law: 
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1 ‘‘(A) AMOUNT OF LOAN GUARANTEE.—In 

2 the case of a loan made or guaranteed under sub3 title A, the Secretary shall guarantee not more 

4 than 80 percent of a loan made under this sec5 tion by a certified lending institution as de6 scribed in paragraph (1), subject to a determina7 tion that the borrower of the loan meets the eligi8 bility requirements and such other criteria as 

9 may be applicable to loans guaranteed by the 

10 Secretary under other provisions of this title. 

11 ‘‘(B) CERTIFICATIONS BY LENDING INSTITU12 TIONS.—In the case of loans to be guaranteed by 

13 the Secretary under this section, the Secretary 

14 shall permit certified lending institutions to 

15 make appropriate certifications (as provided by 

16 regulations issued by the Secretary)— 

17 ‘‘(i) relating to issues such as credit18 worthiness, repayment ability, adequacy of 

19 collateral, and feasibility of farm operation; 

20 and 

21 ‘‘(ii) that the borrower is in compli22 ance with all requirements of law, including 

23 regulations issued by the Secretary. 

24 ‘‘(C) APPROVAL PROCESS.— 
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1 ‘‘(i) IN GENERAL.—The Secretary shall 

2 approve or disapprove a guarantee not later 

3 than 14 days after the date that the lending 

4 institution applies to the Secretary for the 

5 guarantee. 

6 ‘‘(ii) DISAPPROVAL.—If the Secretary 

7 disapproves the loan application during the 

8 14-day period, the Secretary shall state, in 

9 writing, all of the reasons the application 

10 was disapproved. 

11 ‘‘(5) RELATIONSHIP TO OTHER REQUIRE12 MENTS.—Nothing in this section affects the responsi13 bility of the Secretary to certify eligibility, review fi14 nancial information, and otherwise assess an applica15 tion. 

16 ‘‘(b) PREFERRED CERTIFIED LENDERS PROGRAM.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall establish 

18 a Preferred Certified Lenders Program for lenders 

19 under this title who establish— 

20 ‘‘(A) knowledge of, and experience under, 

21 the program established under subsection (a); 

22 ‘‘(B) knowledge of the regulations con23 cerning the guaranteed loan program; and 

24 ‘‘(C) proficiency related to the certified 

25 lender program requirements. 
815 

† HR 2642 EAS 

1 ‘‘(2) REVOCATION OF DESIGNATION.— 

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), the designation of a lender as a Pre4 ferred Certified Lender shall be revoked at any 

5 time— 

6 ‘‘(i) that the Secretary determines that 

7 the lender is not adhering to the rules and 

8 regulations applicable to the program; or 

9 ‘‘(ii) if the loss experiences of a Pre10 ferred Certified Lender are excessive as com11 pared to other Preferred Certified Lenders. 

12 ‘‘(B) EFFECT.—A suspension or revocation 

13 under subparagraph (A) shall not affect any out14 standing guarantee. 

15 ‘‘(3) CONDITION OF CERTIFICATION.—As a con16 dition of preferred certification, the Secretary shall 

17 require the institution to undertake to service the 

18 loans guaranteed by the Secretary under this sub19 section using generally accepted banking standards 

20 concerning loan servicing employed by prudent com21 mercial or cooperative lenders. 

22 ‘‘(4) MONITORING.—The Secretary shall, at least 

23 annually, monitor the performance of each Preferred 

24 Certified Lender to ensure that the conditions of cer25 tification are being met. 
816 

† HR 2642 EAS 

1 ‘‘(5) EFFECT OF PREFERRED LENDER CERTIFI2 CATION.— 

3 ‘‘(A) IN GENERAL.—Notwithstanding any 

4 other provision of law, the Secretary shall— 

5 ‘‘(i) guarantee not more than 80 per6 cent of an approved loan made by a cer7 tified lending institution as described in 

8 this subsection, subject to a determination 

9 that the borrower meets the eligibility re10 quirements or such other criteria as may be 

11 applicable to loans guaranteed by the Sec12 retary under other provisions of this title; 

13 ‘‘(ii) permit certified lending institu14 tions— 

15 ‘‘(I) to make all decisions, with 

16 respect to loans to be guaranteed by the 

17 Secretary under this subsection relat18 ing to credit worthiness, the closing, 

19 monitoring, collection and liquidation 

20 of loans; and 

21 ‘‘(II) to accept appropriate certifi22 cations, as provided by regulations 

23 issued by the Secretary, that the bor24 rower is in compliance with all re-
817 

† HR 2642 EAS 

1 quirements of law or regulations pro2 mulgated by the Secretary; and 

3 ‘‘(iii) be considered to have guaranteed 

4 80 percent of a loan made by a preferred 

5 certified lending institution as described in 

6 paragraph (1), if the Secretary fails to ap7 prove or reject the application of such insti8 tution within 14 calendar days after the 

9 date that the lending institution presented 

10 the application to the Secretary. 

11 ‘‘(B) REQUIREMENT.—If the Secretary re12 jects an application under subparagraph (A)(iii) 

13 during the 14-day period, the Secretary shall 

14 state, in writing, the reasons the application was 

15 rejected. 

16 ‘‘(c) ADMINISTRATION OF CERTIFIED LENDERS AND

17 PREFERRED CERTIFIED LENDERS PROGRAMS.—The Sec18 retary may administer the loan guarantee programs under 

19 subsections (a) and (b) through central offices established 

20 in States or in multi-State areas. 

21 ‘‘SEC. 3910. LOANS TO RESIDENT ALIENS. 

22 ‘‘(a) IN GENERAL.—Notwithstanding the provisions of 

23 this title limiting the making of a loan to a citizen of the 

24 United States, the Secretary may make a loan under this 

25 title to an alien lawfully admitted to the United States for 
818 

† HR 2642 EAS 

1 permanent residence under the Immigration and Nation2 ality Act (8 U.S.C. 1101 et seq.). 

3 ‘‘(b) REGULATIONS.— 

4 ‘‘(1) IN GENERAL.—No loan may be made under 

5 this title to an alien referred to in subsection (a) until 

6 the Secretary issues regulations establishing the terms 

7 and conditions under which the alien may receive the 

8 loan. 

9 ‘‘(2) REQUIREMENT.—The Secretary shall sub10 mit the regulations to the Committee on Agriculture 

11 of the House of Representatives and the Committee on 

12 Agriculture, Nutrition, and Forestry of the Senate at 

13 least 30 days prior to the date on which the regula14 tions are published in the Federal Register. 

15 ‘‘SEC. 3911. EXPEDITED CLEARING OF TITLE TO INVENTORY 

16 PROPERTY. 

17 ‘‘(a) IN GENERAL.—The Secretary may employ local 

18 attorneys, on a case-by-case basis, to process all legal proce19 dures necessary to clear the title to foreclosed properties in 

20 the inventory of the Department. 

21 ‘‘(b) COMPENSATION.—Attorneys shall be compensated 

22 at not more than the usual and customary charges of the 

23 attorneys for the work. 
819 

† HR 2642 EAS 

1 ‘‘SEC. 3912. TRANSFER OF LAND TO SECRETARY. 

2 ‘‘The President may at any time, in the discretion of 

3 the President, transfer to the Secretary any right, interest, 

4 or title held by the United States in any land acquired in 

5 the program of national defense and no longer needed for 

6 that purpose that the President finds suitable for the pur7 poses of this title, and the Secretary shall dispose of the 

8 transferred land in the manner and subject to the terms 

9 and conditions of this title. 

10 ‘‘SEC. 3913. COMPETITIVE SOURCING LIMITATIONS. 

11 ‘‘The Secretary may not complete a study of, or enter 

12 into a contract with a private party to carry out, without 

13 specific authorization in a subsequent Act of Congress, a 

14 competitive sourcing activity of the Secretary, including 

15 support personnel of the Department, relating to rural de16 velopment or farmer program loans. 

17 ‘‘SEC. 3914. REGULATIONS. 

18 ‘‘The Secretary may issue such regulations, prescribe 

19 such terms and conditions for making or guaranteeing 

20 loans, security instruments, and agreements, except as oth21 erwise specified in this title, and make such delegations of 

22 authority as the Secretary considers necessary to carry out 

23 this title.’’. 
820 

† HR 2642 EAS 

1 SEC. 6002. CONFORMING AMENDMENTS. 

2 (a) Section 17(c) of the Rural Electrification Act of 

3 1936 (7 U.S.C. 917(c)) is amended by striking paragraph 

4 (1) and inserting the following: 

5 ‘‘(1) Subtitle B of the Consolidated Farm and 

6 Rural Development Act.’’. 

7 (b) Section 305(c)(2)(B)(i)(I) of the Rural Electrifica8 tion Act of 1936 (7 U.S.C. 935(c)(2)(B)(i)(I)) is amended 

9 by striking ‘‘section 307(a)(3)(A) of the Consolidated Farm 

10 and Rural Development Act (7 U.S.C. 1927(a)(3)(A))’’ and 

11 inserting ‘‘section 3701(b)(2) of the Consolidated Farm and 

12 Rural Development Act’’. 

13 (c) Section 306F(a)(1) of the Rural Electrification Act 

14 of 1936 (7 U.S.C. 936f(a)(1)) is amended by striking sub15 paragraph (B) and inserting the following: 

16 ‘‘(B) chapter 1 of subtitle B of the Consoli17 dated Farm and Rural Development Act.’’. 

18 (d) Section 2333(d) of the Food, Agriculture, Conserva19 tion, and Trade Act of 1990 (7 U.S.C. 950aaa–2(d)) is 

20 amended— 

21 (1) in paragraph (11), by adding ‘‘and’’ at the 

22 end; 

23 (2) by striking paragraph (12); and 

24 (3) by redesignating paragraph (13) as para25 graph (12). 
821 

† HR 2642 EAS 

1 (e) Section 601(b) of the Rural Electrification Act of 

2 1936 (7 U.S.C. 950bb(b)) is amended by striking paragraph 

3 (3). 

4 (f) Section 602(5) of the Emergency Livestock Feed As5 sistance Act of 1988 (7 U.S.C. 1471(5)) is amended by 

6 striking ‘‘section 355(e)(1)(D)(ii) of the Consolidated Farm 

7 and Rural Development Act (7 U.S.C. 1985(e)(1)(D)(ii))’’ 

8 and inserting ‘‘section 3409(c)(1)(A) of the Consolidated 

9 Farm and Rural Development Act)’’. 

10 (g) Section 508 of the Federal Crop Insurance Act (7 

11 U.S.C. 1508) is amended— 

12 (1) in subsection (b)(7)(A), by striking ‘‘section 

13 371 of the Consolidated Farm and Rural Develop14 ment Act (7 U.S.C. 2008f)’’ and inserting ‘‘section 

15 3424 of the Consolidated Farm and Rural Develop16 ment Act’’; and 

17 (2) in subsection (n)(2), by striking ‘‘subtitle C 

18 of the Consolidated Farm and Rural Development Act 

19 (7 U.S.C. 1961 et seq.)’’ and inserting ‘‘chapter 3 of 

20 subtitle A of the Consolidated Farm and Rural Devel21 opment Act’’. 

22 (h) Section 231(a) of the Agricultural Risk Protection 

23 Act of 2000 (7 U.S.C. 1632a(a)) is amended— 

24 (1) in paragraph (1), by striking ‘‘section 343(a) 

25 of the Consolidated Farm and Rural Development Act 
822 

† HR 2642 EAS 

1 (7 U.S.C. 1991(a))’’ and inserting ‘‘section 3002 of 

2 the Consolidated Farm and Rural Development Act’’; 

3 and 

4 (2) in paragraph (4), by striking ‘‘section 355(e) 

5 of the Consolidated Farm and Rural Development Act 

6 (7 U.S.C. 2003(e))’’ and inserting ‘‘section 3002 of 

7 the Consolidated Farm and Rural Development Act’’. 

8 (i) Section 14204(a) of the Food, Conservation, and 

9 Energy Act of 2008 (7 U.S.C. 2008q–1(a)) is amended by 

10 striking ‘‘an entity described in section 379C(a) of the Con11 solidated Farm and Rural Development Act (7 U.S.C. 

12 2008q(a))’’ and inserting ‘‘an entity determined by the Sec13 retary’’. 

14 (j) Section 607(c)(6) of the Rural Development Policy 

15 Act of 1972 (7 U.S.C. 2204b(c)(6)) is amended in the last 

16 sentence— 

17 (1) by striking ‘‘, and’’ and inserting ‘‘and 

18 any’’; and 

19 (2) by striking ‘‘required under section 

20 306(a)(12) of the Consolidated Farm and Rural De21 velopment Act’’. 

22 (k) Section 901(b) of the Agricultural Act of 1970 (7 

23 U.S.C. 2204b–1(b)) is amended by striking ‘‘rural areas as 

24 defined in the private business enterprise exception in sec25 tion 306(a)(7) of the Consolidated Farmers Home Adminis-
823 

† HR 2642 EAS 

1 tration Act of 1961, as amended (7 U.S.C. 1926)’’ and in2 serting ‘‘rural areas, as defined in section 3002 of the Con3 solidated Farm and Rural Development Act’’. 

4 (l) Section 14220 of the Food, Conservation, and En5 ergy Act of 2008 (7 U.S.C. 2206b) is amended by striking 

6 ‘‘section 343(a)(13)(A) of the Consolidated Farm and Rural 

7 Development Act)’’ and inserting ‘‘section 3002 of the Con8 solidated Farm and Rural Development Act)’’. 

9 (m) Section 2501(c)(2)(D) of the Food, Agriculture, 

10 Conservation, and Trade Act of 1990 (7 U.S.C. 

11 2279(c)(2)(D)) is amended by striking ‘‘sections 355(a)(1) 

12 and 355(c) of the Consolidated Farm and Rural Develop13 ment Act (7 U.S.C. 2003(a)(1))’’ and inserting ‘‘para14 graphs (1) and (3) of section 3416(a) of the Consolidated 

15 Farm and Rural Development Act’’. 

16 (n) Section 2501A(b) of the Food, Agriculture, Con17 servation, and Trade Act of 1990 (7 U.S.C. 2279–1(b)) is 

18 amended by striking ‘‘section 355(e) of the Consolidated 

19 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ and 

20 inserting ‘‘section 3002 of the Consolidated Farm and 

21 Rural Development Act’’. 

22 (o) Section 7405(c)(8)(B) of the Farm Security and 

23 Rural Investment Act of 2002 (7 U.S.C. 3319f(c)(8)(B)) is 

24 amended by striking ‘‘section 355(e) of the Consolidated 

25 Farm and Rural Development Act (7 U.S.C. 2003(e))’’ and 
824 

† HR 2642 EAS 

1 inserting ‘‘section 3002 of the Consolidated Farm and 

2 Rural Development Act)’’. 

3 (p) Section 1101(d)(2)(A) of the Food, Conservation, 

4 and Energy Act of 2008 (7 U.S.C. 8711(d)(2)(A)) is amend5 ed by striking ‘‘section 355(e) of the Consolidated Farm and 

6 Rural Development Act (7 U.S.C. 2003(e))’’ and inserting 

7 ‘‘section 3002 of the Consolidated Farm and Rural Develop8 ment Act)’’. 

9 (q) Section 1302(d)(2)(A) of the Food, Conservation, 

10 and Energy Act of 2008 (7 U.S.C. 8752(d)(2)(A)) is amend11 ed by striking ‘‘section 355(e) of the Consolidated Farm and 

12 Rural Development Act (7 U.S.C. 2003(e))’’ and inserting 

13 ‘‘section 3002 of the Consolidated Farm and Rural Develop14 ment Act)’’. 

15 (r) Section 2375(g) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 6613(g)) is amended 

17 by striking ‘‘section 304(b), 306(a), or 310B(e) of the Con18 solidated Farm and Rural Development Act (7 U.S.C. 

19 1924(b), 1926(a), and 1932(e))’’ and inserting ‘‘subtitle B 

20 of the Consolidated Farm and Rural Development Act’’. 

21 (s) Section 226B(a)(1) of the Department of Agri22 culture Reorganization Act of 1994 (7 U.S.C. 6934(a)(1)) 

23 is amended by striking ‘‘section 343(a) of the Consolidated 

24 Farm and Rural Development Act (7 U.S.C. 1991(a))’’ and 
825 

† HR 2642 EAS 

1 inserting ‘‘section 3002 of the Consolidated Farm and 

2 Rural Development Act’’. 

3 (t) Section 196(i)(3)(B) of the Federal Agriculture Im4 provement and Reform Act of 1996 (7 U.S.C. 

5 7333(i)(3)(B)) is amended by striking ‘‘subtitle C of the 

6 Consolidated Farm and Rural Development Act (7 U.S.C. 

7 1961 et seq.)’’ and inserting ‘‘chapter 3 of subtitle A of the 

8 Consolidated Farm and Rural Development Act’’. 

9 (u) Section 9009(a)(1) of the Farm Security and 

10 Rural Investment Act of 2002 (7 U.S.C. 8109(a)(1)) is 

11 amended by striking ‘‘section 343(a)(13)(A) of the Consoli12 dated Farm and Rural Development Act (7 U.S.C. 

13 1991(a)(13)(A)))’’ and inserting ‘‘section 3002 of the Con14 solidated Farm and Rural Development Act’’. 

15 (v) Section 9011(c)(2)(B)(v) of the Farm Security and 

16 Rural Investment Act of 2002 (7 U.S.C. 8111(c)(2)(B)(v)) 

17 is amended by striking subclause (I) and inserting the fol18 lowing: 

19 ‘‘(I) beginning farmers (as defined 

20 in accordance with section 3002 of the 

21 Consolidated Farm and Rural Devel22 opment Act); or’’. 

23 (w) Section 7(b)(2)(B) of the Small Business Act (15 

24 U.S.C. 636(b)(2)(B)) is amended by striking ‘‘section 321 

25 of the Consolidated Farm and Rural Development Act (7 
826 

† HR 2642 EAS 

1 U.S.C. 1961)’’ and inserting ‘‘section 3301 of the Consoli2 dated Farm and Rural Development Act’’. 

3 (x) Section 8(b)(5)(B)(iii)(III)(bb) of the Soil Con4 servation and Domestic Allotment Act (16 U.S.C. 

5 590h(b)(5)(B)(iii)(III)(bb)) is amended by striking ‘‘section 

6 355(e)(1) of the Consolidated Farm and Rural Development 

7 Act (7 U.S.C. 2003(e)(1))’’ and inserting ‘‘section 3002 of 

8 the Consolidated Farm and Rural Development Act)’’. 

9 (y) Section 10(b)(3) of the Cooperative Forestry Assist10 ance Act of 1978 (16 U.S.C. 2106(b)(3)) is amended in the 

11 last sentence by striking ‘‘set out in the first clause of sec12 tion 306(a)(7) of the Consolidated Farm and Rural Devel13 opment Act’’ and inserting ‘‘given the term in section 3002 

14 of the Consolidated Farm and Rural Development Act’’. 

15 (z) Section 1201(a)(2) of the Food Security Act of 1985 

16 (16 U.S.C. 3801(a)(2)) is amended by striking ‘‘section 

17 343(a)(8) of the Consolidated Farm and Rural Development 

18 Act (7 U.S.C. 1991(a)(8))’’ and inserting ‘‘section 3002 of 

19 the Consolidated Farm and Rural Development Act’’. 

20 (aa) Section 1238(2) of the Food Security Act of 1985 

21 (16 U.S.C. 3838(2)) is amended by striking ‘‘section 343(a) 

22 of the Consolidated Farm and Rural Development Act (7 

23 U.S.C. 1991(a))’’ and inserting ‘‘section 3002 of the Con24 solidated Farm and Rural Development Act’’. 
827 

† HR 2642 EAS 

1 (bb) Section 5 of Public Law 91–229 (25 U.S.C. 492) 

2 is amended by striking ‘‘section 307(a)(3)(B) of the Consoli3 dated Farmers Home Administration Act of 1961, as 

4 amended, and to the provisions of subtitle D of that Act 

5 except sections 340, 341, 342, and 343’’ and inserting 

6 ‘‘3105(b)(2) of the Consolidated Farm and Rural Develop7 ment Act’’. 

8 (cc) Section 6(c) of Public Law 91–229 (25 U.S.C. 

9 493(c)) is amended by striking ‘‘section 333B of the Con10 solidated Farm and Rural Development Act (7 U.S.C. 

11 1983b)’’ and inserting ‘‘subtitle H of the Department of Ag12 riculture Reorganization Act of 1994 (7 U.S.C. 6991 et 

13 seq.)’’. 

14 (dd) Section 181(a)(2)(B)(ii) of the Internal Revenue 

15 Code of 1986 is amended by striking ‘‘section 2009aa–1 of 

16 title 7, United States Code’’ and inserting ‘‘section 3801 

17 of the Consolidated Farm and Rural Development Act’’. 

18 (ee) Section 515(b)(3) of the Housing Act of 1949 (42 

19 U.S.C. 1485(b)(3)) is amended by striking ‘‘all the provi20 sions of section 309 and the second and third sentences of 

21 section 308 of the Consolidated Farmers Home Administra22 tion Act of 1961, including the authority in section 

23 309(f)(1) of that Act’’ and inserting ‘‘section 3401 of the 

24 Consolidated Farm and Rural Development Act’’. 
828 

† HR 2642 EAS 

1 (ff) Section 517(b) of the Housing Act of 1949 (42 

2 U.S.C. 1487(b)) is amended in the third sentence by strik3 ing ‘‘(7 U.S.C. 1929)’’ and inserting ‘‘under section 3401 

4 of the Consolidated Farm and Rural Development Act’’. 

5 (gg) Section 3(8) of the Public Works and Economic 

6 Development Act of 1965 (42 U.S.C. 3122(8)) is amended— 

7 (1) by striking subparagraph (B) and inserting 

8 the following: 

9 ‘‘(B) the Delta Regional Authority estab10 lished under chapter 4 of subtitle B of the Con11 solidated Farm and Rural Development Act;’’; 

12 and 

13 (2) by striking subparagraph (D) and inserting 

14 the following: 

15 ‘‘(D) the Northern Great Plains Regional 

16 Authority established under chapter 5 of subtitle 

17 B of the Consolidated Farm and Rural Develop18 ment Act.’’. 

19 (hh) Section 310(a) of the Robert T. Stafford Disaster 

20 Relief and Emergency Assistance Act (42 U.S.C. 5153(a)) 

21 is amended by striking paragraph (4) and inserting the fol22 lowing: 

23 ‘‘(4) Chapter 1 of subtitle B of the Consolidated 

24 Farm and Rural Development Act.’’. 
829 

† HR 2642 EAS 

1 (ii) Section 582(d)(1) of the National Flood Insurance 

2 Reform Act of 1994 (42 U.S.C. 5154a(d)(1)) is amended 

3 by striking ‘‘section 321(a) of the Consolidated Farm and 

4 Rural Development Act (7 U.S.C. 1961(a))’’ and inserting 

5 ‘‘section 3301(b) of the Consolidated Farm and Rural De6 velopment Act’’. 

7 (jj) Section 213(c)(1) of the Biomass Energy and Alco8 hol Fuels Act of 1980 (42 U.S.C. 8813(c)(1)) is amended 

9 in the first sentence by striking ‘‘section 309 of the Consoli10 dated Farm and Rural Development Act or the Rural De11 velopment Insurance Fund in section 309A of such Act’’ 

12 and inserting ‘‘under section 3401 of the Consolidated 

13 Farm and Rural Development Act or the Rural Develop14 ment Insurance Fund under section 3704 of that Act’’. 

15 (kk) Section 1323(b)(2) of the Food Security Act of 

16 1985 (Public Law 99–198; 7 U.S.C. 1932 note) is amend17 ed— 

18 (1) in subparagraph (A), by inserting ‘‘and’’ at 

19 the end; 

20 (2) in subparagraph (B), by striking ‘‘; and’’ at 

21 the end and inserting a period; and 

22 (3) by striking subparagraph (C). 
830 

† HR 2642 EAS 

1 Subtitle B—Rural Electrification 

2 SEC. 6101. DEFINITION OF RURAL AREA. 

3 Section 13(3) of the Rural Electrification Act of 1936 

4 (7 U.S.C. 913(A)) is amended by striking subparagraph (A) 

5 and inserting the following: 

6 ‘‘(A) any area described in section 

7 3002(28)(A)(i) of the Consolidated Farm and 

8 Rural Development Act; and’’. 

9 SEC. 6102. GUARANTEES FOR BONDS AND NOTES ISSUED 

10 FOR ELECTRIFICATION OR TELEPHONE PUR11 POSES. 

12 Section 313A(f) of the Rural Electrification Act of 

13 1936 (7 U.S.C. 940c–1(f)) is amended by striking ‘‘2012’’ 

14 and inserting ‘‘2018’’. 

15 SEC. 6103. EXPANSION OF 911 ACCESS. 

16 Section 315(d) of the Rural Electrification Act of 1936 

17 (7 U.S.C. 940e(d)) is amended by striking ‘‘2012’’ and in18 serting ‘‘2018’’. 

19 SEC. 6104. ACCESS TO BROADBAND TELECOMMUNICATIONS 

20 SERVICES IN RURAL AREAS. 

21 Section 601 of the Rural Electrification Act of 1936 

22 (7 U.S.C. 950bb) is amended— 

23 (1) in subsection (a), by striking ‘‘loans and’’ 

24 and inserting ‘‘grants, loans, and’’; 
831 

† HR 2642 EAS 

1 (2) in subsection (b), by striking paragraph (3) 

2 and inserting the following: 

3 ‘‘(3) RURAL AREA.—The term ‘rural area’ means 

4 any area described in section 3002 of the Consoli5 dated Farm and Rural Development Act. 

6 ‘‘(4) ULTRA-HIGH SPEED SERVICE.—The term 

7 ‘ultra-high speed service’ means broadband service op8 erating at a 1 gigabit per second downstream trans9 mission capacity.’’; 

10 (3) in subsection (c)— 

11 (A) in the subsection heading, by striking 

12 ‘‘LOANS AND’’ and inserting ‘‘GRANTS, LOANS, 

13 AND’’; 

14 (B) in paragraph (1), by inserting ‘‘make 

15 grants and’’ after ‘‘Secretary shall’’; 

16 (C) by striking paragraph (2) and inserting 

17 the following: 

18 ‘‘(2) PRIORITY.— 

19 ‘‘(A) IN GENERAL.—In making grants, 

20 loans, or loan guarantees under paragraph (1), 

21 the Secretary shall— 

22 ‘‘(i) establish not less than 2, and not 

23 more than 4, evaluation periods for each fis24 cal year to compare grant, loan, and loan 

25 guarantee applications and to prioritize 
832 

† HR 2642 EAS 

1 grants, loans, and loan guarantees to all or 

2 part of rural communities that do not have 

3 residential broadband service that meets the 

4 minimum acceptable level of broadband 

5 service established under subsection (e); 

6 ‘‘(ii) give the highest priority to appli7 cants that offer to provide broadband service 

8 to the greatest proportion of unserved rural 

9 households or rural households that do not 

10 have residential broadband service that 

11 meets the minimum acceptable level of 

12 broadband service established under sub13 section (e), as— 

14 ‘‘(I) certified by the affected com15 munity, city, county, or designee; or 

16 ‘‘(II) demonstrated on— 

17 ‘‘(aa) the broadband map of 

18 the affected State if the map con19 tains address-level data; or 

20 ‘‘(bb) the National 

21 Broadband Map if address-level 

22 data is unavailable; and 

23 ‘‘(iii) provide equal consideration to 

24 all qualified applicants, including those 

25 that have not previously received grants, 
833 

† HR 2642 EAS 

1 loans, or loan guarantees under paragraph 

2 (1). 

3 ‘‘(B) OTHER.—After giving priority to the 

4 applicants described in subparagraph (A), the 

5 Secretary shall then give priority to projects that 

6 serve rural communities— 

7 ‘‘(i) with a population of less than 

8 20,000 permanent residents; 

9 ‘‘(ii) experiencing outmigration; 

10 ‘‘(iii) with a high percentage of low-in11 come residents; and 

12 ‘‘(iv) that are isolated from other sig13 nificant population centers.’’; and 

14 (D) by adding at the end the following: 

15 ‘‘(3) GRANT AMOUNTS.— 

16 ‘‘(A) ELIGIBILITY.—To be eligible for a 

17 grant under this section, the project that is the 

18 subject of the grant shall be carried out in a 

19 rural area. 

20 ‘‘(B) MAXIMUM.—Except as provided in 

21 subparagraph (D), the amount of any grant 

22 made under this section shall not exceed 50 per23 cent of the development costs of the project for 

24 which the grant is provided. 
834 

† HR 2642 EAS 

1 ‘‘(C) GRANT RATE.—The Secretary shall es2 tablish the grant rate for each project in accord3 ance with regulations issued by the Secretary 

4 that shall provide for a graduated scale of grant 

5 rates that establish higher rates for projects in 

6 communities that have— 

7 ‘‘(i) remote locations; 

8 ‘‘(ii) low community populations; 

9 ‘‘(iii) low income levels; 

10 ‘‘(iv) developed the applications of the 

11 communities with the participation of com12 binations of stakeholders, including— 

13 ‘‘(I) State, local, and tribal gov14 ernments; 

15 ‘‘(II) nonprofit institutions; 

16 ‘‘(III) institutions of higher edu17 cation; 

18 ‘‘(IV) private entities; and 

19 ‘‘(V) philanthropic organizations; 

20 and 

21 ‘‘(v) targeted funding to provide the 

22 minimum acceptable level of broadband 

23 service established under subsection (e) in 

24 all or part of an unserved community that 
835 

† HR 2642 EAS 

1 is below that minimum acceptable level of 

2 broadband service. 

3 ‘‘(D) SECRETARIAL AUTHORITY TO AD4 JUST.—The Secretary may make grants of up to 

5 75 percent of the development costs of the project 

6 for which the grant is provided to an eligible en7 tity if the Secretary determines that the project 

8 serves a remote or low income area that does not 

9 have access to broadband service from any pro10 vider of broadband service (including the appli11 cant).’’; 

12 (4) in subsection (d)— 

13 (A) in paragraph (1)(A)— 

14 (i) in the matter preceding clause (i), 

15 by striking ‘‘loan or’’ and inserting ‘‘grant, 

16 loan, or’’; 

17 (ii) by striking clause (i) and inserting 

18 the following: 

19 ‘‘(i) demonstrate the ability— 

20 ‘‘(I) to furnish, improve in order 

21 to meet the minimum acceptable level 

22 of broadband service established under 

23 subsection (e), or extend broadband 

24 service to all or part of an unserved 

25 rural area or an area below the min-
836 

† HR 2642 EAS 

1 imum acceptable level of broadband 

2 service established under subsection (e); 

3 or 

4 ‘‘(II) to carry out a project under 

5 paragraph (4)(B)(ii);’’; 

6 (iii) in clause (ii), by striking ‘‘a loan 

7 application’’ and inserting ‘‘an applica8 tion’’; and 

9 (iv) in clause (iii)— 

10 (I) by striking ‘‘the loan applica11 tion’’ and inserting ‘‘the application’’; 

12 and 

13 (II) by striking ‘‘proceeds from 

14 the loan made or guaranteed under 

15 this section are’’ and inserting ‘‘assist16 ance under this section is’’; 

17 (B) in paragraph (2)— 

18 (i) in subparagraph (A)— 

19 (I) in the matter preceding clause 

20 (i)— 

21 (aa) by striking ‘‘the pro22 ceeds of a loan made or guaran23 teed’’ and inserting ‘‘assistance’’; 

24 and 
837 

† HR 2642 EAS 

1 (bb) by striking ‘‘for the loan 

2 or loan guarantee’’ and inserting 

3 ‘‘of the eligible entity’’; 

4 (II) in clause (i), by striking ‘‘is 

5 offered broadband service by not more 

6 than 1 incumbent service provider’’ 

7 and inserting ‘‘are unserved or have 

8 service levels below the minimum ac9 ceptable level of broadband service es10 tablished under subsection (e)’’; and 

11 (III) in clause (ii), by striking 

12 ‘‘3’’ and inserting ‘‘2’’; 

13 (ii) by striking subparagraph (B) and 

14 inserting the following: 

15 ‘‘(B) ADJUSTMENTS.— 

16 ‘‘(i) INCREASE.—The Secretary may 

17 increase the household percentage require18 ment under subparagraph (A)(i) if— 

19 ‘‘(I) more than 25 percent of the 

20 costs of the project are funded by 

21 grants made under this section; or 

22 ‘‘(II) the proposed service terri23 tory includes 1 or more communities 

24 with a population in excess of 20,000. 
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† HR 2642 EAS 

1 ‘‘(ii) REDUCTION.—The Secretary may 

2 reduce the household percentage requirement 

3 under subparagraph (A)(i)— 

4 ‘‘(I) to not less than 15 percent, if 

5 the proposed service territory does not 

6 have a population in excess of 5,000 

7 people; or 

8 ‘‘(II) to not less than 18 percent, 

9 if the proposed service territory does 

10 not have a population in excess of 

11 7,500 people.’’; and 

12 (iii) in subparagraph (C)— 

13 (I) in the subparagraph heading, 

14 by striking ‘‘3’’ and inserting ‘‘2’’; 

15 (II) in clause (i), by inserting 

16 ‘‘the minimum acceptable level of 

17 broadband service established under 

18 subsection (e) in’’ after ‘‘service to’’; 

19 and 

20 (III) by striking clause (ii) and 

21 inserting the following: 

22 ‘‘(ii) EXCEPTIONS.—Clause (i) shall 

23 not apply if— 
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† HR 2642 EAS 

1 ‘‘(I) the applicant is eligible for 

2 funding under another title of this Act; 

3 or 

4 ‘‘(II) the project is being carried 

5 out under paragraph (4)(B)(ii), unless 

6 an incumbent service provider is pro7 viding ultra-high speed service as of 

8 the date of an application for assist9 ance submitted to the Secretary under 

10 this section.’’; 

11 (C) in paragraph (3)— 

12 (i) in subparagraph (A), by striking 

13 ‘‘loan or’’ and inserting ‘‘grant, loan, or’’; 

14 and 

15 (ii) in subparagraph (B), by adding at 

16 the end the following: 

17 ‘‘(iii) INFORMATION.—Information 

18 submitted under this subparagraph shall 

19 be— 

20 ‘‘(I) certified by the affected com21 munity, city, county, or designee; and 

22 ‘‘(II) demonstrated on— 

23 ‘‘(aa) the broadband map of 

24 the affected State if the map con25 tains address-level data; or 
840 

† HR 2642 EAS 

1 ‘‘(bb) the National 

2 Broadband Map if address-level 

3 data is unavailable.’’; 

4 (D) in paragraph (4)— 

5 (i) by striking ‘‘Subject to paragraph 

6 (1),’’ and inserting the following: 

7 ‘‘(A) IN GENERAL.—Subject to paragraph 

8 (1) and subparagraph (B),’’; 

9 (ii) by striking ‘‘loan or’’ and insert10 ing ‘‘grant, loan, or’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(B) PILOT PROGRAMS.—The Secretary 

14 shall establish pilot programs under which the 

15 Secretary may, at the discretion of the Secretary, 

16 provide grants, loans, or loan guarantees under 

17 this section to eligible entities, including inter18 ested entities described in subparagraph (A)— 

19 ‘‘(i) to address areas that are unserved 

20 or have service levels below the minimum 

21 acceptable level of broadband service estab22 lished under subsection (e); or 

23 ‘‘(ii) for the purposes of providing a 

24 proposed service territory with ultra-high 
841 

† HR 2642 EAS 

1 speed service, subject to the conditions 

2 that— 

3 ‘‘(I) not more than 5 projects, and 

4 not more than 1 project in any State, 

5 shall be carried out under this clause 

6 during the period beginning on the 

7 date of enactment of this Act and end8 ing on September 30, 2018; 

9 ‘‘(II) for each fiscal year, not 

10 more than 10 percent of the funds 

11 made available under subsection (l) 

12 shall be used to carry out this clause; 

13 ‘‘(III) for each fiscal year, not 

14 more than 20 percent of the funds 

15 made available under subclause (II) 

16 shall be used for any 1 project; and 

17 ‘‘(IV) paragraph (2)(A)(i) shall 

18 apply to the project, unless— 

19 ‘‘(aa) the Secretary deter20 mines that no other project in the 

21 State is funded under this section; 

22 and 

23 ‘‘(bb) no application for any 

24 other project that could be funded 

25 under this section, other than 
842 

† HR 2642 EAS 

1 under this clause, is pending in 

2 the State.’’; 

3 (E) in paragraph (5)— 

4 (i) in the matter preceding subpara5 graph (A), by striking ‘‘loan or’’ and insert6 ing ‘‘grant, loan, or’’; and 

7 (ii) in subparagraph (C), by inserting 

8 ‘‘, and proportion relative to the service ter9 ritory,’’ after ‘‘estimated number’’; 

10 (F) in paragraph (6), by striking ‘‘loan or’’ 

11 and inserting ‘‘grant, loan, or’’; 

12 (G) in paragraph (7), by striking ‘‘a loan 

13 application’’ and inserting ‘‘an application’’; 

14 and 

15 (H) by adding at the end the following: 

16 ‘‘(8) TRANSPARENCY AND REPORTING.—The Sec17 retary— 

18 ‘‘(A) shall require any entity receiving as19 sistance under this section to submit quarterly, 

20 in a format specified by the Secretary, a report 

21 that describes— 

22 ‘‘(i) the use by the entity of the assist23 ance, including new equipment and capac24 ity enhancements that support high-speed 

25 broadband access for educational institu-
843 

† HR 2642 EAS 

1 tions, health care providers, and public safe2 ty service providers (including the estimated 

3 number of end users who are currently 

4 using or forecasted to use the new or up5 graded infrastructure); and 

6 ‘‘(ii) the progress towards fulfilling the 

7 objectives for which the assistance was 

8 granted, including— 

9 ‘‘(I) the number and location of 

10 residences and businesses that will re11 ceive new broadband service, existing 

12 network service improvements, and fa13 cility upgrades resulting from the Fed14 eral assistance; 

15 ‘‘(II) the speed of broadband serv16 ice; 

17 ‘‘(III) the price of broadband serv18 ice; 

19 ‘‘(IV) any changes in broadband 

20 service adoption rates, including new 

21 subscribers generated from demand-side 

22 projects; and 

23 ‘‘(V) any other metrics the Sec24 retary determines to be appropriate; 
844 

† HR 2642 EAS 

1 ‘‘(B) shall maintain a fully searchable data2 base, accessible on the Internet at no cost to the 

3 public, that contains, at a minimum— 

4 ‘‘(i) a list of each entity that has ap5 plied for assistance under this section; 

6 ‘‘(ii) a description of each application, 

7 including the status of each application; 

8 ‘‘(iii) for each entity receiving assist9 ance under this section— 

10 ‘‘(I) the name of the entity; 

11 ‘‘(II) the type of assistance being 

12 received; 

13 ‘‘(III) the purpose for which the 

14 entity is receiving the assistance; and 

15 ‘‘(IV) each quarterly report sub16 mitted under subparagraph (A); and 

17 ‘‘(iv) such other information as is suf18 ficient to allow the public to understand 

19 and monitor assistance provided under this 

20 section; 

21 ‘‘(C) shall, in addition to other authority 

22 under applicable law, establish written proce23 dures for all broadband programs administered 

24 by the Secretary that, to the maximum extent 

25 practicable— 
845 

† HR 2642 EAS 

1 ‘‘(i) recover funds from loan defaults; 

2 ‘‘(ii)(I) deobligate awards to grantees 

3 that demonstrate an insufficient level of 

4 performance (including failure to meet 

5 build-out requirements, service quality 

6 issues, or other metrics determined by the 

7 Secretary) or wasteful or fraudulent spend8 ing; and 

9 ‘‘(II) award those funds, on a competi10 tive basis, to new or existing applicants 

11 consistent with this section; and 

12 ‘‘(iii) consolidate and minimize over13 lap among the programs; 

14 ‘‘(D) with respect to an application for as15 sistance under this section, shall— 

16 ‘‘(i) promptly post on the website of the 

17 Rural Utility Service— 

18 ‘‘(I) an announcement that iden19 tifies— 

20 ‘‘(aa) each applicant; 

21 ‘‘(bb) the amount and type of 

22 support requested by each appli23 cant; and 

24 ‘‘(II) a list of the census block 

25 groups or proposed service territory, in 
846 

† HR 2642 EAS 

1 a manner specified by the Secretary, 

2 that the applicant proposes to service; 

3 ‘‘(ii) provide not less than 15 days for 

4 broadband service providers to voluntarily 

5 submit information about the broadband 

6 services that the providers offer in the 

7 groups or tracts listed under clause (i)(II) 

8 so that the Secretary may assess whether the 

9 applications submitted meet the eligibility 

10 requirements under this section; and 

11 ‘‘(iii) if no broadband service provider 

12 submits information under clause (ii), con13 sider the number of providers in the group 

14 or tract to be established by reference to— 

15 ‘‘(I) the most current National 

16 Broadband Map of the National Tele17 communications and Information Ad18 ministration; or 

19 ‘‘(II) any other data regarding the 

20 availability of broadband service that 

21 the Secretary may collect or obtain 

22 through reasonable efforts; and 

23 ‘‘(E) may establish additional reporting 

24 and information requirements for any recipient 
847 

† HR 2642 EAS 

1 of any assistance under this section so as to en2 sure compliance with this section.’’; 

3 (5) in subsection (e)— 

4 (A) by redesignating paragraph (2) as 

5 paragraph (3); and 

6 (B) by striking paragraph (1) and inserting 

7 the following: 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), for 

9 purposes of this section, the minimum acceptable level 

10 of broadband service for a rural area shall be at 

11 least— 

12 ‘‘(A) a 4-Mbps downstream transmission 

13 capacity; and 

14 ‘‘(B) a 1-Mbps upstream transmission ca15 pacity. 

16 ‘‘(2) ADJUSTMENTS.— 

17 ‘‘(A) IN GENERAL.—At least once every 2 

18 years, the Secretary shall review, and may ad19 just, the minimum acceptable level of broadband 

20 service established under paragraph (1) to ensure 

21 that high quality, cost-effective broadband service 

22 is provided to rural areas over time. 

23 ‘‘(B) CONSIDERATIONS.—In making an ad24 justment to the minimum acceptable level of 

25 broadband service under subparagraph (A), the 
848 

† HR 2642 EAS 

1 Secretary may consider establishing different 

2 transmission rates for fixed broadband service 

3 and mobile broadband service.’’; 

4 (6) in subsection (f), by striking ‘‘make a loan 

5 or loan guarantee’’ and inserting ‘‘provide assist6 ance’’; 

7 (7) in subsection (g), by striking paragraph (2) 

8 and inserting the following: 

9 ‘‘(2) TERMS.—In determining the term and con10 ditions of a loan or loan guarantee, the Secretary 

11 may— 

12 ‘‘(A) consider whether the recipient would 

13 be serving an area that is unserved; and 

14 ‘‘(B) if the Secretary makes a determination 

15 in the affirmative under subparagraph (A), es16 tablish a limited initial deferral period or com17 parable terms necessary to achieve the financial 

18 feasibility and long-term sustainability of the 

19 project.’’; 

20 (8) in subsection (j)— 

21 (A) in the matter preceding paragraph (1), 

22 by striking ‘‘loan and loan guarantee’’; 

23 (B) in paragraph (1)— 

24 (i) by inserting ‘‘grants and’’ after 

25 ‘‘number of’’; and 
849 

† HR 2642 EAS 

1 (ii) by inserting ‘‘, including any loan 

2 terms or conditions for which the Secretary 

3 provided additional assistance to unserved 

4 areas’’ before the semicolon at the end; 

5 (C) in paragraph (2)— 

6 (i) in subparagraph (A), by striking 

7 ‘‘loan’’; and 

8 (ii) in subparagraph (B), by striking 

9 ‘‘loans and’’ and inserting ‘‘grants, loans, 

10 and’’; 

11 (D) in paragraph (3), by striking ‘‘loan’’; 

12 (E) in paragraph (5), by striking ‘‘and’’ at 

13 the end; 

14 (F) in paragraph (6), by striking the period 

15 at the end and inserting ‘‘; and’’; and 

16 (G) by adding at the end the following: 

17 ‘‘(7) the overall progress towards fulfilling the 

18 goal of improving the quality of rural life by expand19 ing rural broadband access, as demonstrated by 

20 metrics, including— 

21 ‘‘(A) the number of residences and busi22 nesses receiving new broadband services; 

23 ‘‘(B) network improvements, including fa24 cility upgrades and equipment purchases; 
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† HR 2642 EAS 

1 ‘‘(C) average broadband speeds and prices 

2 on a local and statewide basis; 

3 ‘‘(D) any changes in broadband adoption 

4 rates; and 

5 ‘‘(E) any specific activities that increased 

6 high speed broadband access for educational in7 stitutions, health care providers. and public safe8 ty service providers.’’; and 

9 (9) by redesignating subsections (k) and (l) as 

10 subsections (l) and (m), respectively; 

11 (10) by inserting after subsection (j) the fol12 lowing: 

13 ‘‘(k) BROADBAND BUILDOUT DATA.— 

14 ‘‘(1) IN GENERAL.—As a condition of receiving 

15 a grant, loan, or loan guarantee under this section, 

16 a recipient of assistance shall provide to the Secretary 

17 address-level broadband buildout data that indicates 

18 the location of new broadband service that is being 

19 provided or upgraded within the service territory sup20 ported by the grant, loan, or loan guarantee— 

21 ‘‘(A) for purposes of inclusion in the semi22 annual updates to the National Broadband Map 

23 that is managed by the National Telecommuni24 cations and Information Administration (re-
851 

† HR 2642 EAS 

1 ferred to in this subsection as the ‘Administra2 tion’); and 

3 ‘‘(B) not later than 30 days after the earlier 

4 of— 

5 ‘‘(i) the date of completion of any 

6 project milestone established by the Sec7 retary; or 

8 ‘‘(ii) the date of completion of the 

9 project. 

10 ‘‘(2) ADDRESS-LEVEL DATA.—Effective beginning 

11 on the date the Administration receives data described 

12 in paragraph (1), the Administration shall use only 

13 address-level broadband buildout data for the Na14 tional Broadband Map. 

15 ‘‘(3) CORRECTIONS.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 submit to the Administration any correction to 

18 the National Broadband Map that is based on 

19 the actual level of broadband coverage within the 

20 rural area, including any requests for a correc21 tion from an elected or economic development of22 ficial. 

23 ‘‘(B) INCORPORATION.—Not later than 30 

24 days after the date on which the Administration 

25 receives a correction submitted under subpara-
852 

† HR 2642 EAS 

1 graph (A), the Administration shall incorporate 

2 the correction into the National Broadband Map. 

3 ‘‘(C) USE.—If the Secretary has submitted 

4 a correction to the Administration under sub5 paragraph (A), but the National Broadband 

6 Map has not been updated to reflect the correct 

7 by the date on which the Secretary is making a 

8 grant or loan award decision under this section, 

9 the Secretary may use the correction submitted 

10 under that subparagraph for purposes of make 

11 the grant or loan award decision.’’; 

12 (11) subsection (l) (as redesignated by paragraph 

13 (9))— 

14 (A) in paragraph (1)— 

15 (i) by striking ‘‘$25,000,000’’ and in16 serting ‘‘$50,000,000’’; and 

17 (ii) by striking ‘‘2012’’ and inserting 

18 ‘‘2018’’; and 

19 (B) in paragraph (2)(A)— 

20 (i) in clause (i), by striking ‘‘and’’ at 

21 the end; 

22 (ii) in clause (ii), by striking the pe23 riod at the end and inserting ‘‘; and’’; and 

24 (iii) by adding at the end the fol25 lowing: 
853 

† HR 2642 EAS 

1 ‘‘(iii) set aside at least 1 percent to be 

2 used for— 

3 ‘‘(I) conducting oversight under 

4 this section; and 

5 ‘‘(II) implementing accountability 

6 measures and related activities author7 ized under this section.’’; and 

8 (12) in subsection (m) (as redesignated by para9 graph (9))— 

10 (A) by striking ‘‘loan or’’ and inserting 

11 ‘‘grant, loan, or’’; and 

12 (B) by striking ‘‘2012’’ and inserting 

13 ‘‘2018’’. 

14 Subtitle C—Miscellaneous 

15 SEC. 6201. DISTANCE LEARNING AND TELEMEDICINE. 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

17 2335A of the Food, Agriculture, Conservation, and Trade 

18 Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 

19 ‘‘2012’’ and inserting ‘‘2018’’. 

20 (b) CONFORMING AMENDMENT.—Section 1(b) of Public 

21 Law 102–551 (7 U.S.C. 950aaa note) is amended by strik22 ing ‘‘2012’’ and inserting ‘‘2018’’. 
854 

† HR 2642 EAS 

1 SEC. 6202. DEFINITION OF RURAL AREA FOR PURPOSES OF 

2 THE HOUSING ACT OF 1949. 

3 The second sentence of section 520 of the Housing Act 

4 of 1949 (42 U.S.C. 1490) is amended— 

5 (1) by striking ‘‘1990 or 2000 decennial census 

6 shall continue to be so classified until the receipt of 

7 data from the decennial census in the year 2010’’ and 

8 inserting ‘‘1990, 2000, or 2010 decennial census, and 

9 any area deemed to be a ‘rural area’ for purposes of 

10 this title under any other provision of law at any 

11 time during the period beginning January 1, 2000, 

12 and ending December 31, 2010, shall continue to be 

13 so classified until the receipt of data from the decen14 nial census in the year 2020’’; and 

15 (2) by striking ‘‘25,000’’ and inserting ‘‘35,000’’. 

16 SEC. 6203. RURAL ENERGY SAVINGS PROGRAM. 

17 Subtitle E of title VI of the Farm Security and Rural 

18 Investment Act of 2002 (Public Law 107–171; 116 Stat. 

19 424) is amended by adding at the end the following: 

20 ‘‘SEC. 6407. RURAL ENERGY SAVINGS PROGRAM. 

21 ‘‘(a) PURPOSE.—The purpose of this section is to cre22 ate jobs, promote rural development, and help rural families 

23 and small businesses achieve cost savings by providing 

24 loans to qualified consumers to implement durable cost-ef25 fective energy efficiency measures. 

26 ‘‘(b) DEFINITIONS.—In this section: 
855 

† HR 2642 EAS 

1 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti2 ty’ means— 

3 ‘‘(A) any public power district, public util4 ity district, or similar entity, or any electric co5 operative described in section 501(c)(12) or 

6 1381(a)(2) of the Internal Revenue Code of 1986, 

7 that borrowed and repaid, prepaid, or is paying 

8 an electric loan made or guaranteed by the 

9 Rural Utilities Service (or any predecessor agen10 cy); 

11 ‘‘(B) any entity primarily owned or con12 trolled by 1 or more entities described in sub13 paragraph (A); or 

14 ‘‘(C) any other entity that is an eligible 

15 borrower of the Rural Utility Service, as deter16 mined under section 1710.101 of title 7, Code of 

17 Federal Regulations (or a successor regulation). 

18 ‘‘(2) ENERGY EFFICIENCY MEASURES.—The term 

19 ‘energy efficiency measures’ means, for or at property 

20 served by an eligible entity, structural improvements 

21 and investments in cost-effective, commercial tech22 nologies to increase energy efficiency. 

23 ‘‘(3) QUALIFIED CONSUMER.—The term ‘quali24 fied consumer’ means a consumer served by an eligi25 ble entity that has the ability to repay a loan made 
856 

† HR 2642 EAS 

1 under subsection (d), as determined by the eligible en2 tity. 

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

4 the Secretary of Agriculture, acting through the Ad5 ministrator of the Rural Utilities Service. 

6 ‘‘(c) LOANS TO ELIGIBLE ENTITIES.— 

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

8 Secretary shall make loans to eligible entities that 

9 agree to use the loan funds to make loans to qualified 

10 consumers for the purpose of implementing energy ef11 ficiency measures. 

12 ‘‘(2) REQUIREMENTS.— 

13 ‘‘(A) IN GENERAL.—As a condition of re14 ceiving a loan under this subsection, an eligible 

15 entity shall— 

16 ‘‘(i) establish a list of energy efficiency 

17 measures that is expected to decrease energy 

18 use or costs of qualified consumers; 

19 ‘‘(ii) prepare an implementation plan 

20 for use of the loan funds, including use of 

21 any interest to be received pursuant to sub22 section (d)(1)(A); 

23 ‘‘(iii) provide for appropriate measure24 ment and verification to ensure— 
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† HR 2642 EAS 

1 ‘‘(I) the effectiveness of the energy 

2 efficiency loans made by the eligible 

3 entity; and 

4 ‘‘(II) that there is no conflict of 

5 interest in carrying out this section; 

6 and 

7 ‘‘(iv) demonstrate expertise in effective 

8 use of energy efficiency measures at an ap9 propriate scale. 

10 ‘‘(B) REVISION OF LIST OF ENERGY EFFI11 CIENCY MEASURES.—Subject to the approval of 

12 the Secretary, an eligible entity may update the 

13 list required under subparagraph (A)(i) to ac14 count for newly available efficiency technologies. 

15 ‘‘(C) EXISTING ENERGY EFFICIENCY PRO16 GRAMS.—An eligible entity that, at any time be17 fore the date that is 60 days after the date of en18 actment of this section, has established an energy 

19 efficiency program for qualified consumers may 

20 use an existing list of energy efficiency measures, 

21 implementation plan, or measurement and 

22 verification system of that program to satisfy the 

23 requirements of subparagraph (A) if the Sec24 retary determines the list, plan, or systems are 

25 consistent with the purposes of this section. 
858 

† HR 2642 EAS 

1 ‘‘(3) NO INTEREST.—A loan under this sub2 section shall bear no interest. 

3 ‘‘(4) REPAYMENT.—With respect to a loan under 

4 paragraph (1)— 

5 ‘‘(A) the term shall not exceed 20 years from 

6 the date on which the loan is closed; and 

7 ‘‘(B) except as provided in paragraph (6), 

8 the repayment of each advance shall be amor9 tized for a period not to exceed 10 years. 

10 ‘‘(5) AMOUNT OF ADVANCES.—Any advance of 

11 loan funds to an eligible entity in any single year 

12 shall not exceed 50 percent of the approved loan 

13 amount. 

14 ‘‘(6) SPECIAL ADVANCE FOR START-UP ACTIVI15 TIES.— 

16 ‘‘(A) IN GENERAL.—In order to assist an el17 igible entity in defraying the appropriate start18 up costs (as determined by the Secretary) of es19 tablishing new programs or modifying existing 

20 programs to carry out subsection (d), the Sec21 retary shall allow an eligible entity to request a 

22 special advance. 

23 ‘‘(B) AMOUNT.—No eligible entity may re24 ceive a special advance under this paragraph for 

25 an amount that is greater than 4 percent of the 
859 

† HR 2642 EAS 

1 loan amount received by the eligible entity under 

2 paragraph (1). 

3 ‘‘(C) REPAYMENT.—Repayment of the spe4 cial advance— 

5 ‘‘(i) shall be required during the 10- 

6 year period beginning on the date on which 

7 the special advance is made; and 

8 ‘‘(ii) at the election of the eligible enti9 ty, may be deferred to the end of the 10-year 

10 period. 

11 ‘‘(7) LIMITATION.—All special advances shall be 

12 made under a loan described in paragraph (1) during 

13 the first 10 years of the term of the loan. 

14 ‘‘(d) LOANS TO QUALIFIED CONSUMERS.— 

15 ‘‘(1) TERMS OF LOANS.—Loans made by an eli16 gible entity to qualified consumers using loan funds 

17 provided by the Secretary under subsection (c)— 

18 ‘‘(A) may bear interest, not to exceed 3 per19 cent, to be used for purposes that include— 

20 ‘‘(i) to establish a loan loss reserve; 

21 and 

22 ‘‘(ii) to offset personnel and program 

23 costs of eligible entities to provide the loans; 

24 ‘‘(B) shall finance energy efficiency meas25 ures for the purpose of decreasing energy usage 
860 

† HR 2642 EAS 

1 or costs of the qualified consumer by an amount 

2 that ensures, to the maximum extent practicable, 

3 that a loan term of not more than 10 years will 

4 not pose an undue financial burden on the quali5 fied consumer, as determined by the eligible enti6 ty; 

7 ‘‘(C) shall not be used to fund purchases of, 

8 or modifications to, personal property unless the 

9 personal property is or becomes attached to real 

10 property (including a manufactured home) as a 

11 fixture; 

12 ‘‘(D) shall be repaid through charges added 

13 to the electric bill for the property for, or at 

14 which, energy efficiency measures are or will be 

15 implemented, on the condition that this require16 ment does not prohibit— 

17 ‘‘(i) the voluntary prepayment of a 

18 loan by the owner of the property; or 

19 ‘‘(ii) the use of any additional repay20 ment mechanisms that are— 

21 ‘‘(I) demonstrated to have appro22 priate risk mitigation features, as de23 termined by the eligible entity; or 
861 

† HR 2642 EAS 

1 ‘‘(II) required if the qualified con2 sumer is no longer a customer of the el3 igible entity; and 

4 ‘‘(E) shall require an energy audit by an el5 igible entity to determine the impact of proposed 

6 energy efficiency measures on the energy costs 

7 and consumption of the qualified consumer. 

8 ‘‘(2) CONTRACTORS.—In addition to any other 

9 qualified general contractor, eligible entities may 

10 serve as general contractors. 

11 ‘‘(e) CONTRACT FOR MEASUREMENT AND

12 VERIFICATION, TRAINING, AND TECHNICAL ASSISTANCE.— 

13 ‘‘(1) IN GENERAL.—Not later than 90 days after 

14 the date of enactment of this section, the Secretary— 

15 ‘‘(A) shall establish a plan for measurement 

16 and verification, training, and technical assist17 ance of the program; and 

18 ‘‘(B) may enter into 1 or more contracts 

19 with a qualified entity for the purposes of— 

20 ‘‘(i) providing measurement and 

21 verification activities; and 

22 ‘‘(ii) developing a program to provide 

23 technical assistance and training to the em24 ployees of eligible entities to carry out this 

25 section. 
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† HR 2642 EAS 

1 ‘‘(2) USE OF SUBCONTRACTORS AUTHORIZED.— 

2 A qualified entity that enters into a contract under 

3 paragraph (1) may use subcontractors to assist the 

4 qualified entity in carrying out the contract. 

5 ‘‘(f) FAST START DEMONSTRATION PROJECTS.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall offer to 

7 enter into agreements with eligible entities (or groups 

8 of eligible entities) that have energy efficiency pro9 grams described in subsection (c)(2)(C) to establish an 

10 energy efficiency loan demonstration projects con11 sistent with the purposes of this section. 

12 ‘‘(2) EVALUATION CRITERIA.—In determining 

13 which eligible entities to award loans under this sec14 tion, the Secretary shall take into consideration eligi15 ble entities that— 

16 ‘‘(A) implement approaches to energy au17 dits and investments in energy efficiency meas18 ures that yield measurable and predictable sav19 ings; 

20 ‘‘(B) use measurement and verification 

21 processes to determine the effectiveness of energy 

22 efficiency loans made by eligible entities; 

23 ‘‘(C) include training for employees of eligi24 ble entities, including any contractors of such en-
863 

† HR 2642 EAS 

1 tities, to implement or oversee the activities de2 scribed in subparagraphs (A) and (B); 

3 ‘‘(D) provide for the participation of a ma4 jority of eligible entities in a State; 

5 ‘‘(E) reduce the need for generating capac6 ity; 

7 ‘‘(F) provide efficiency loans to— 

8 ‘‘(i) in the case of a single eligible enti9 ty, not fewer than 20,000 consumers; or 

10 ‘‘(ii) in the case of a group of eligible 

11 entities, not fewer than 80,000 consumers; 

12 and 

13 ‘‘(G) serve areas in which, as determined by 

14 the Secretary, a large percentage of consumers 

15 reside— 

16 ‘‘(i) in manufactured homes; or 

17 ‘‘(ii) in housing units that are more 

18 than 50 years old. 

19 ‘‘(3) DEADLINE FOR IMPLEMENTATION.—To the 

20 maximum extent practicable, the Secretary shall enter 

21 into agreements described in paragraph (1) by not 

22 later than 90 days after the date of enactment of this 

23 section. 

24 ‘‘(4) EFFECT ON AVAILABILITY OF LOANS NA25 TIONALLY.—Nothing in this subsection shall delay the 
864 

† HR 2642 EAS 

1 availability of loans to eligible entities on a national 

2 basis beginning not later than 180 days after the date 

3 of enactment of this section. 

4 ‘‘(5) ADDITIONAL DEMONSTRATION PROJECT AU5 THORITY.— 

6 ‘‘(A) IN GENERAL.—The Secretary may 

7 conduct demonstration projects in addition to 

8 the project required by paragraph (1). 

9 ‘‘(B) INAPPLICABILITY OF CERTAIN CRI10 TERIA.—The additional demonstration projects 

11 may be carried out without regard to subpara12 graphs (D), (F), or (G) of paragraph (2). 

13 ‘‘(g) ADDITIONAL AUTHORITY.—The authority pro14 vided in this section is in addition to any other authority 

15 of the Secretary to offer loans under any other law. 

16 ‘‘(h) EFFECTIVE PERIOD.—Subject to the availability 

17 of funds and except as otherwise provided in this section, 

18 the loans and other expenditures required to be made under 

19 this section shall be available until expended, with the Sec20 retary authorized to make new loans as loans are repaid. 

21 ‘‘(i) REGULATIONS.— 

22 ‘‘(1) IN GENERAL.—Except as otherwise provided 

23 in this subsection, not later than 180 days after the 

24 date of enactment of this section, the Secretary shall 
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1 promulgate such regulations as are necessary to im2 plement this section. 

3 ‘‘(2) PROCEDURE.—The promulgation of the reg4 ulations and administration of this section shall be 

5 made without regard to— 

6 ‘‘(A) the Statement of Policy of the Sec7 retary of Agriculture effective July 24, 1971 (36 

8 Fed. Reg. 13804), relating to notices of proposed 

9 rulemaking and public participation in rule10 making; and 

11 ‘‘(B) chapter 35 of title 44, United States 

12 Code (commonly known as the ‘Paperwork Re13 duction Act’). 

14 ‘‘(3) CONGRESSIONAL REVIEW OF AGENCY RULE15 MAKING.—In carrying out this section, the Secretary 

16 shall use the authority provided under section 808 of 

17 title 5, United States Code. 

18 ‘‘(4) INTERIM REGULATIONS.—Notwithstanding 

19 paragraphs (1) and (2), to the extent regulations are 

20 necessary to carry out any provision of this section, 

21 the Secretary shall implement such regulations 

22 through the promulgation of an interim rule.’’. 
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1 SEC. 6204. FUNDING OF PENDING RURAL DEVELOPMENT 

2 LOAN AND GRANT APPLICATIONS. 

3 (a) IN GENERAL.—The Secretary shall use funds made 

4 available under subsection (b) to provide funds for applica5 tions that are pending on the date of enactment of this Act 

6 in accordance with the terms and conditions of section 6029 

7 of the Food, Conservation, and Energy Act of 2008 (Public 

8 Law 110–246; 122 Stat. 1955). 

9 (b) FUNDING.—Notwithstanding any other provision 

10 of law, beginning in fiscal year 2014, of the funds of the 

11 Commodity Credit Corporation, the Secretary shall use to 

12 carry out this section $150,000,000, to remain available 

13 until expended. 

14 SEC. 6205. STUDY OF RURAL TRANSPORTATION ISSUES. 

15 (a) IN GENERAL.—The Secretary and the Secretary of 

16 Transportation shall jointly conduct a study of transpor17 tation issues regarding the movement of agricultural prod18 ucts, domestically produced renewable fuels, and domesti19 cally produced resources for the production of electricity for 

20 rural areas of the United States, and economic development 

21 in those areas. 

22 (b) INCLUSIONS.—The study shall include an exam23 ination of— 

24 (1) the importance of freight transportation, in25 cluding rail, truck, and barge, to— 
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1 (A) the delivery of equipment, seed, fer2 tilizer, and other products important to the de3 velopment of agricultural commodities and prod4 ucts; 

5 (B) the movement of agricultural commod6 ities and products to market; 

7 (C) the delivery of ethanol and other renew8 able fuels; 

9 (D) the delivery of domestically produced 

10 resources for use in the generation of electricity 

11 for rural areas; 

12 (E) the location of grain elevators, ethanol 

13 plants, and other facilities; 

14 (F) the development of manufacturing fa15 cilities in rural areas; and 

16 (G) the vitality and economic development 

17 of rural communities; 

18 (2) the sufficiency in rural areas of transpor19 tation capacity, the sufficiency of competition in the 

20 transportation system, the reliability of transpor21 tation services, and the reasonableness of transpor22 tation rates; 

23 (3) the sufficiency of facility investment in rural 

24 areas necessary for efficient and cost-effective trans25 portation; and 
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1 (4) the accessibility to shippers in rural areas of 

2 Federal processes for the resolution of grievances aris3 ing within various transportation modes. 

4 (c) REPORT TO CONGRESS.—Not later than 1 year 

5 after the date of enactment of this Act, the Secretary and 

6 the Secretary of Transportation shall submit a report to 

7 Congress that contains the results of the study required 

8 under subsection (a). 

9 (d) PERIODIC UPDATES.—The Secretary and the Sec10 retary of Transportation shall publish triennially an up11 dated version of the study described in subsection (a). 

12 SEC. 6206. AGRICULTURAL TRANSPORTATION POLICY. 

13 Section 203 of the Agricultural Marketing Act of 1946 

14 (7 U.S.C. 1622) is amended by striking subsection (j) and 

15 inserting the following: 

16 ‘‘(j) POLICY DEVELOPMENT PROCEEDINGS.—The Sec17 retary shall participate on behalf of the interests of agri18 culture and rural America in all policy development pro19 ceedings or other proceedings of the Surface Transportation 

20 Board that may establish freight rail transportation policy 

21 affecting agriculture and rural America.’’. 

22 SEC. 6207. VALUE-ADDED AGRICULTURAL MARKET DEVEL23 OPMENT PROGRAM GRANTS. 

24 Section 231(b) of the Agricultural Risk Protection Act 

25 of 2000 (7 U.S.C. 1632a(b)) is amended— 
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1 (1) in paragraph (6)— 

2 (A) in subparagraph (B), by striking ‘‘and’’ 

3 at the end; 

4 (B) in subparagraph (C), by striking the 

5 period at the end and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following: 

7 ‘‘(D) veteran farmers or ranchers (as de8 fined in section 2501(e) of the Food, Agriculture, 

9 Conservation, and Trade Act of 1990 (7 U.S.C. 

10 2279(e))).’’; and 

11 (2) in paragraph (7)(B), by striking ‘‘2012’’ and 

12 inserting ‘‘2017’’. 

13 TITLE VII—RESEARCH, EXTEN14 SION, AND RELATED MAT15 TERS 

16 Subtitle A—National Agricultural 

17 Research, Extension, and Teach18 ing Policy Act of 1977 

19 SEC. 7101. NATIONAL AGRICULTURAL RESEARCH, EXTEN20 SION, EDUCATION, AND ECONOMICS ADVI21 SORY BOARD. 

22 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

23 1408(h) of the National Agricultural Research, Extension, 

24 and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) is 

25 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
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1 (b) DUTIES OF NATIONAL AGRICULTURAL RESEARCH, 

2 EXTENSION, EDUCATION, AND ECONOMICS ADVISORY

3 BOARD.—Section 1408(c) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7 

5 U.S.C. 3123(c)) is amended— 

6 (1) in paragraph (3), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (4)(C), by striking the period 

9 at the end and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(5) consult with industry groups on agricul12 tural research, extension, education, and economics, 

13 and make recommendations to the Secretary based on 

14 that consultation.’’. 

15 SEC. 7102. SPECIALTY CROP COMMITTEE. 

16 Section 1408A of the National Agricultural Research, 

17 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

18 3123a) is amended— 

19 (1) in subsection (b)— 

20 (A) by striking ‘‘Individuals’’ and inserting 

21 the following: 

22 ‘‘(1) ELIGIBILITY.—Individuals’’; 

23 (B) by striking ‘‘Members’’ and inserting 

24 the following: 

25 ‘‘(2) SERVICE.—Members’’; and 
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1 (C) by adding at the end the following: 

2 ‘‘(3) DIVERSITY.—Membership of the specialty 

3 crops committee shall reflect diversity in the specialty 

4 crops represented.’’; 

5 (2) in subsection (c), by adding at the end the 

6 following: 

7 ‘‘(6) Analysis of alignment of specialty crop 

8 committee recommendations with specialty crop re9 search initiative grants awarded under section 412(d) 

10 of the Agricultural Research, Extension, and Edu11 cation Reform Act of 1998 (7 U.S.C. 7632).’’; 

12 (3) by redesignating subsections (d) and (e) as 

13 subsections (e) and (f), respectively; 

14 (4) by inserting after subsection (c) the fol15 lowing: 

16 ‘‘(d) CONSULTATION WITH SPECIALTY CROP INDUS17 TRY.—In studying the scope and effectiveness of programs 

18 under subsection (a), the specialty crops committee shall 

19 consult on an ongoing basis with diverse sectors of the spe20 cialty crop industry.’’; and 

21 (5) in subsection (f) (as redesignated by para22 graph (3)), by striking ‘‘subsection (d)’’ and inserting 

23 ‘‘subsection (e)’’. 
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1 SEC. 7103. VETERINARY SERVICES GRANT PROGRAM. 

2 The National Agricultural Research, Extension, and 

3 Teaching Policy Act of 1977 is amended by inserting after 

4 section 1415A (7 U.S.C. 3151a) the following: 

5 ‘‘SEC. 1415B. VETERINARY SERVICES GRANT PROGRAM. 

6 ‘‘(a) DEFINITIONS.—In this section: 

7 ‘‘(1) QUALIFIED ENTITY.—The term ‘qualified 

8 entity’ means— 

9 ‘‘(A) a for-profit or nonprofit entity located 

10 in the United States that operates a veterinary 

11 clinic providing veterinary services— 

12 ‘‘(i) in a rural area, as defined in sec13 tion 343(a) of the Consolidated Farm and 

14 Rural Development Act (7 U.S.C. 1991(a)); 

15 and 

16 ‘‘(ii) in response to a veterinarian 

17 shortage situation; 

18 ‘‘(B) a State, national, allied, or regional 

19 veterinary organization or specialty board recog20 nized by the American Veterinary Medical Asso21 ciation; 

22 ‘‘(C) a college or school of veterinary medi23 cine accredited by the American Veterinary Med24 ical Association; 

25 ‘‘(D) a university research foundation or 

26 veterinary medical foundation; 
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1 ‘‘(E) a department of veterinary science or 

2 department of comparative medicine accredited 

3 by the Department of Education; 

4 ‘‘(F) a State agricultural experiment sta5 tion; and 

6 ‘‘(G) a State, local, or tribal government 

7 agency. 

8 ‘‘(2) VETERINARIAN SHORTAGE SITUATION.—The 

9 term ‘veterinarian shortage situation’ means a veteri10 narian shortage situation determined by the Sec11 retary under section 1415A(b). 

12 ‘‘(b) ESTABLISHMENT OF PROGRAM.— 

13 ‘‘(1) COMPETITIVE GRANTS.—The Secretary shall 

14 carry out a program to make competitive grants to 

15 qualified entities that carry out programs or activi16 ties described in paragraph (2) for the purpose of de17 veloping, implementing, and sustaining veterinary 

18 services. 

19 ‘‘(2) ELIGIBILITY REQUIREMENTS.—To be eligi20 ble to receive a grant described in paragraph (1), a 

21 qualified entity shall carry out programs or activities 

22 that the Secretary determines will— 

23 ‘‘(A) substantially relieve veterinarian 

24 shortage situations; 
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1 ‘‘(B) support or facilitate private veterinary 

2 practices engaged in public health activities; or 

3 ‘‘(C) support or facilitate the practices of 

4 veterinarians who are participating in or have 

5 successfully completed a service requirement 

6 under section 1415A(a)(2). 

7 ‘‘(c) AWARD PROCESSES AND PREFERENCES.— 

8 ‘‘(1) APPLICATION, EVALUATION, AND INPUT

9 PROCESSES.—In administering the grant program 

10 under this section, the Secretary shall— 

11 ‘‘(A) use an appropriate application and 

12 evaluation process, as determined by the Sec13 retary; and 

14 ‘‘(B) seek the input of interested persons. 

15 ‘‘(2) GRANT PREFERENCES.—In selecting recipi16 ents of grants to be used for any of the purposes de17 scribed in paragraphs (2) through (6) of subsection 

18 (d), the Secretary shall give a preference to qualified 

19 entities that provide documentation of coordination 

20 with other qualified entities, with respect to any such 

21 purpose. 

22 ‘‘(3) ADDITIONAL PREFERENCES.—In awarding 

23 grants under this section, the Secretary may develop 

24 additional preferences by taking into account the 
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1 amount of funds available for grants and the purposes 

2 for which the grant funds will be used. 

3 ‘‘(4) APPLICABILITY OF OTHER PROVISIONS.— 

4 Sections 1413B, 1462(a), 1469(a)(3), 1469(c), and 

5 1470 apply to the administration of the grant pro6 gram under this section. 

7 ‘‘(d) USE OF GRANTS TO RELIEVE VETERINARIAN

8 SHORTAGE SITUATIONS AND SUPPORT VETERINARY SERV9 ICES.—A qualified entity may use funds provided by grants 

10 under this section to relieve veterinarian shortage situations 

11 and support veterinary services for the following purposes: 

12 ‘‘(1) To assist veterinarians with establishing or 

13 expanding practices for the purpose of— 

14 ‘‘(A) equipping veterinary offices; 

15 ‘‘(B) sharing in the reasonable overhead 

16 costs of the practices, as determined by the Sec17 retary; or 

18 ‘‘(C) establishing mobile veterinary facilities 

19 in which a portion of the facilities will address 

20 education or extension needs. 

21 ‘‘(2) To promote recruitment (including for pro22 grams in secondary schools), placement, and retention 

23 of veterinarians, veterinary technicians, students of 

24 veterinary medicine, and students of veterinary tech25 nology. 
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1 ‘‘(3) To allow veterinary students, veterinary in2 terns, externs, fellows, and residents, and veterinary 

3 technician students to cover expenses (other than the 

4 types of expenses described in 1415A(c)(5)) to attend 

5 training programs in food safety or food animal med6 icine. 

7 ‘‘(4) To establish or expand accredited veterinary 

8 education programs (including faculty recruitment 

9 and retention), veterinary residency and fellowship 

10 programs, or veterinary internship and externship 

11 programs carried out in coordination with accredited 

12 colleges of veterinary medicine. 

13 ‘‘(5) To assess veterinarian shortage situations 

14 and the preparation of applications submitted to the 

15 Secretary for designation as a veterinarian shortage 

16 situation under section 1415A(b). 

17 ‘‘(6) To provide continuing education and exten18 sion, including veterinary telemedicine and other dis19 tance-based education, for veterinarians, veterinary 

20 technicians, and other health professionals needed to 

21 strengthen veterinary programs and enhance food 

22 safety. 

23 ‘‘(e) SPECIAL REQUIREMENTS FOR CERTAIN

24 GRANTS.— 

25 ‘‘(1) TERMS OF SERVICE REQUIREMENTS.— 
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1 ‘‘(A) IN GENERAL.—Grants provided under 

2 this section for the purpose specified in sub3 section (d)(1) shall be subject to an agreement be4 tween the Secretary and the grant recipient that 

5 includes a required term of service for the recipi6 ent, as established by the Secretary. 

7 ‘‘(B) CONSIDERATIONS.—In establishing a 

8 term of service under subparagraph (A), the Sec9 retary shall consider only— 

10 ‘‘(i) the amount of the grant awarded; 

11 and 

12 ‘‘(ii) the specific purpose of the grant. 

13 ‘‘(2) BREACH REMEDIES.— 

14 ‘‘(A) IN GENERAL.—An agreement under 

15 paragraph (1) shall provide remedies for any 

16 breach of the agreement by the grant recipient, 

17 including repayment or partial repayment of the 

18 grant funds, with interest. 

19 ‘‘(B) WAIVER.—The Secretary may grant a 

20 waiver of the repayment obligation for breach of 

21 contract if the Secretary determines that the 

22 grant recipient demonstrates extreme hardship or 

23 extreme need. 
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1 ‘‘(C) TREATMENT OF AMOUNTS RECOV2 ERED.—Funds recovered under this paragraph 

3 shall— 

4 ‘‘(i) be credited to the account avail5 able to carry out this section; and 

6 ‘‘(ii) remain available until expended. 

7 ‘‘(f) COST-SHARING REQUIREMENTS.— 

8 ‘‘(1) RECIPIENT SHARE.—Subject to paragraph 

9 (2), to be eligible to receive a grant under this section, 

10 a qualified entity shall provide matching non-Federal 

11 funds, either in cash or in-kind support, in an 

12 amount equal to not less than 25 percent of the Fed13 eral funds provided by the grant. 

14 ‘‘(2) WAIVER.—The Secretary may establish, by 

15 regulation, conditions under which the cost-sharing 

16 requirements of paragraph (1) may be reduced or 

17 waived. 

18 ‘‘(g) PROHIBITION ON USE OF GRANT FUNDS FOR

19 CONSTRUCTION.—Funds made available for grants under 

20 this section may not be used— 

21 ‘‘(1) to construct a new building or facility; or 

22 ‘‘(2) to acquire, expand, remodel, or alter an ex23 isting building or facility, including site grading and 

24 improvement and architect fees. 
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1 ‘‘(h) REGULATIONS.—Not later than 1 year after the 

2 date of enactment of this section, the Secretary shall pro3 mulgate regulations to carry out this section. 

4 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

5 authorized to be appropriated to the Secretary to carry out 

6 this section $10,000,000 for fiscal year 2014 and each fiscal 

7 year thereafter, to remain available until expended.’’. 

8 SEC. 7104. GRANTS AND FELLOWSHIPS FOR FOOD AND AG9 RICULTURE SCIENCES EDUCATION. 

10 Section 1417(m) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7 

12 U.S.C. 3152(m)) is amended by striking ‘‘section 

13 $60,000,000’’ and all that follows and inserting the fol14 lowing: ‘‘section— 

15 ‘‘(1) $60,000,000 for each of fiscal years 1990 

16 through 2013; and 

17 ‘‘(2) $40,000,000 for each of fiscal years 2014 

18 through 2018.’’. 

19 SEC. 7105. AGRICULTURAL AND FOOD POLICY RESEARCH 

20 CENTERS. 

21 Section 1419A of the National Agricultural Research, 

22 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

23 3155) is amended— 

24 (1) in the section heading, by inserting ‘‘AGRI25 CULTURAL AND FOOD’’ before ‘‘POLICY’’; 
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1 (2) in subsection (a), in the matter preceding 

2 paragraph (1)— 

3 (A) by striking ‘‘Secretary may’’ and in4 serting ‘‘Secretary shall, acting through the Of5 fice of the Chief Economist,’’; and 

6 (B) by inserting ‘‘with a history of pro7 viding unbiased, nonpartisan economic analysis 

8 to Congress’’ after ‘‘subsection (b)’’; 

9 (3) in subsection (b), by striking ‘‘other research 

10 institutions’’ and all that follows through ‘‘shall be el11 igible’’ and inserting ‘‘other public research institu12 tions and organizations shall be eligible’’; 

13 (4) in subsection (c)— 

14 (A) in the matter preceding paragraph (1), 

15 by inserting ‘‘, with preference given to policy 

16 research centers having extensive databases, mod17 els, and demonstrated experience in providing 

18 Congress with agricultural market projections, 

19 rural development analysis, agricultural policy 

20 analysis, and baseline projections at the farm, 

21 multiregional, national, and international levels, 

22 including information, analysis, and research re23 lating to drought mitigation,’’ after ‘‘with this 

24 section’’; and 
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1 (B) in paragraph (2), by inserting ‘‘ap2 plied’’ after ‘‘theoretical’’; and 

3 (5) by striking subsection (d) and inserting the 

4 following: 

5 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated to carry out this section 

7 $10,000,000 for fiscal year 2013 and each fiscal year there8 after.’’. 

9 SEC. 7106. EDUCATION GRANTS TO ALASKA NATIVE SERV10 ING INSTITUTIONS AND NATIVE HAWAIIAN 

11 SERVING INSTITUTIONS. 

12 Section 1419B of the National Agricultural Research, 

13 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

14 3156) is amended— 

15 (1) in subsection (a)— 

16 (A) in paragraph (1), by striking ‘‘(or 

17 grants without regard to any requirement for 

18 competition)’’; and 

19 (B) in paragraph (3), by striking ‘‘2012’’ 

20 and inserting ‘‘2018’’; and 

21 (2) in subsection (b)(1), by striking ‘‘(or grants 

22 without regard to any requirement for competition)’’; 

23 and 

24 (3) in paragraph (3), by striking ‘‘2012’’ and in25 serting ‘‘2018’’. 
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1 SEC. 7107. NUTRITION EDUCATION PROGRAM. 

2 Section 1425(f) of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

4 3175(f)) is amended by striking ‘‘2012’’ and inserting 

5 ‘‘2018’’. 

6 SEC. 7108. CONTINUING ANIMAL HEALTH AND DISEASE RE7 SEARCH PROGRAMS. 

8 Section 1433 of the National Agricultural Research, 

9 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

10 3195) is amended by striking the section designation and 

11 heading and all that follows through subsection (a) and in12 serting the following: 

13 ‘‘SEC. 1433. APPROPRIATIONS FOR CONTINUING ANIMAL 

14 HEALTH AND DISEASE RESEARCH PRO15 GRAMS. 

16 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.— 

17 ‘‘(1) IN GENERAL.—There are authorized to be 

18 appropriated to support continuing animal health 

19 and disease research programs at eligible institutions 

20 such sums as are necessary, but not to exceed 

21 $25,000,000 for each of fiscal years 1991 through 

22 2018. 

23 ‘‘(2) USE OF FUNDS.—Funds made available 

24 under this section shall be used— 

25 ‘‘(A) to meet the expenses of conducting ani26 mal health and disease research, publishing and 
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1 disseminating the results of such research, and 

2 contributing to the retirement of employees sub3 ject to the Act of March 4, 1940 (7 U.S.C. 331); 

4 ‘‘(B) for administrative planning and di5 rection; and 

6 ‘‘(C) to purchase equipment and supplies 

7 necessary for conducting research described in 

8 subparagraph (A).’’. 

9 SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD 

10 SCIENCES FACILITIES AT 1890 LAND-GRANT 

11 COLLEGES, INCLUDING TUSKEGEE UNIVER12 SITY. 

13 Section 1447(b) of the National Agricultural Research, 

14 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

15 3222b(b)) is amended by striking ‘‘2012’’ and inserting 

16 ‘‘2018’’. 

17 SEC. 7110. GRANTS TO UPGRADE AGRICULTURAL AND FOOD 

18 SCIENCES FACILITIES AND EQUIPMENT AT 

19 INSULAR AREA LAND-GRANT INSTITUTIONS. 

20 Section 1447B(d) of the National Agricultural Re21 search, Extension, and Teaching Policy Act of 1977 (7 

22 U.S.C. 3222b–2(d)) is amended by striking ‘‘2012’’ and in23 serting ‘‘2018’’. 
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1 SEC. 7111. HISPANIC-SERVING INSTITUTIONS. 

2 Section 1455(c) of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

4 3241(c)) is amended by striking ‘‘2012’’ and inserting 

5 ‘‘2018’’. 

6 SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AG7 RICULTURAL SCIENCE AND EDUCATION PRO8 GRAMS. 

9 Section 1459A of the National Agricultural Research, 

10 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

11 3292b) is amended by striking subsection (c) and inserting 

12 the following: 

13 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are 

14 authorized to be appropriated to carry out this section— 

15 ‘‘(1) such sums as are necessary for each of fiscal 

16 years 1999 through 2013; and 

17 ‘‘(2) $5,000,000 for each of fiscal years 2014 

18 through 2018.’’. 

19 SEC. 7113. UNIVERSITY RESEARCH. 

20 Section 1463 of the National Agricultural Research, 

21 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

22 3311) is amended in each of subsections (a) and (b) by 

23 striking ‘‘2012’’ each place it appears and inserting 

24 ‘‘2018’’. 
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1 SEC. 7114. EXTENSION SERVICE. 

2 Section 1464 of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

4 3312) is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

5 SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS. 

6 (a) AUTHORIZATION OF APPROPRIATIONS AND TERMI7 NATION.—Section 1473D of the National Agricultural Re8 search, Extension, and Teaching Policy Act of 1977 (7 

9 U.S.C. 3319d) is amended— 

10 (1) in subsection (a), by striking ‘‘2012’’ and in11 serting ‘‘2018’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 

14 authorized to be appropriated to carry out this section— 

15 ‘‘(1) such sums as are necessary for each of fiscal 

16 years 2012 and 2013; and 

17 ‘‘(2) $1,000,000 for each of fiscal years 2014 

18 through 2018.’’. 

19 (b) COMPETITIVE GRANTS.—Section 1473D(c)(1) of 

20 the National Agricultural Research, Extension, and Teach21 ing Policy Act of 1977 (7 U.S.C. 3319d(c)(1)) is amended 

22 by striking ‘‘use such research funding, special or competi23 tive grants, or other means, as the Secretary determines,’’ 

24 and inserting ‘‘make competitive grants’’. 
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1 SEC. 7116. CAPACITY BUILDING GRANTS FOR NLGCA INSTI2 TUTIONS. 

3 Section 1473F(b) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7 

5 U.S.C. 3319i(b)) is amended by striking ‘‘2012’’ and insert6 ing ‘‘2018’’. 

7 SEC. 7117. AQUACULTURE ASSISTANCE PROGRAMS. 

8 (a) COMPETITIVE GRANTS.—Section 1475(b) of the 

9 National Agricultural Research, Extension, and Teaching 

10 Policy Act of 1977 (7 U.S.C. 3322(b)) is amended in the 

11 matter preceding paragraph (1) by inserting ‘‘competitive’’ 

12 before ‘‘grants’’. 

13 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

14 1477 of the National Agricultural Research, Extension, and 

15 Teaching Policy Act of 1977 (7 U.S.C. 3324) is amended 

16 to read as follows: 

17 ‘‘SEC. 1477. AUTHORIZATION OF APPROPRIATIONS. 

18 ‘‘(a) IN GENERAL.—There are authorized to be appro19 priated to carry out this subtitle— 

20 ‘‘(1) $7,500,000 for each of fiscal years 1991 

21 through 2013; and 

22 ‘‘(2) $5,000,000 for each of fiscal years 2014 

23 through 2018. 

24 ‘‘(b) PROHIBITION ON USE.—Funds made available 

25 under this section may not be used to acquire or construct 

26 a building.’’. 
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1 SEC. 7118. RANGELAND RESEARCH PROGRAMS. 

2 Section 1483(a) of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

4 3336(a)) is amended by striking ‘‘subtitle’’ and all that fol5 lows and inserting the following: ‘‘subtitle— 

6 ‘‘(1) $10,000,000 for each of fiscal years 1991 

7 through 2013; and 

8 ‘‘(2) $2,000,000 for each of fiscal years 2014 

9 through 2018.’’. 

10 SEC. 7119. SPECIAL AUTHORIZATION FOR BIOSECURITY 

11 PLANNING AND RESPONSE. 

12 Section 1484(a) of the National Agricultural Research, 

13 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

14 3351(a)) is amended by striking ‘‘response such sums as 

15 are necessary’’ and all that follows and inserting the fol16 lowing: ‘‘response— 

17 ‘‘(1) such sums as are necessary for each of fiscal 

18 years 2002 through 2013; and 

19 ‘‘(2) $20,000,000 for each of fiscal years 2014 

20 through 2018.’’. 

21 SEC. 7120. DISTANCE EDUCATION AND RESIDENT INSTRUC22 TION GRANTS PROGRAM FOR INSULAR AREA 

23 INSTITUTIONS OF HIGHER EDUCATION. 

24 (a) DISTANCE EDUCATION GRANTS FOR INSULAR

25 AREAS.— 
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1 (1) COMPETITIVE GRANTS.—Section 1490(a) of 

2 the National Agricultural Research, Extension, and 

3 Teaching Policy Act of 1977 (7 U.S.C. 3362(a)) is 

4 amended by striking ‘‘or noncompetitive’’. 

5 (2) AUTHORIZATION OF APPROPRIATIONS.—Sec6 tion 1490(f) of the National Agricultural Research, 

7 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

8 3362(f)) is amended by striking ‘‘section’’ and all that 

9 follows and inserting the following: ‘‘section— 

10 ‘‘(1) such sums as are necessary for each of fiscal 

11 years 2002 through 2013; and 

12 ‘‘(2) $2,000,000 for each of fiscal years 2014 

13 through 2018.’’. 

14 (b) RESIDENT INSTRUCTION GRANTS FOR INSULAR

15 AREAS.—Section 1491(c) of the National Agricultural Re16 search, Extension, and Teaching Policy Act of 1977 (7 

17 U.S.C. 3363(c)) is amended by striking ‘‘such sums as are 

18 necessary’’ and all that follows and inserting the following: 

19 ‘‘to carry out this section— 

20 ‘‘(1) such sums as are necessary for each of fiscal 

21 years 2002 through 2013; and 

22 ‘‘(2) $2,000,000 for each of fiscal years 2014 

23 through 2018.’’. 
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1 Subtitle B—Food, Agriculture, Con2 servation, and Trade Act of 1990 

3 SEC. 7201. BEST UTILIZATION OF BIOLOGICAL APPLICA4 TIONS. 

5 Section 1624 of the Food, Agriculture, Conservation, 

6 and Trade Act of 1990 (7 U.S.C. 5814) is amended— 

7 (1) by striking ‘‘$40,000,000 for each fiscal 

8 year’’; and 

9 (2) by inserting ‘‘$40,000,000 for each of fiscal 

10 years 2014 through 2018’’ after ‘‘chapter’’. 

11 SEC. 7202. INTEGRATED MANAGEMENT SYSTEMS. 

12 Section 1627 of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 (7 U.S.C. 5821) is amended by strik14 ing subsection (d) and inserting the following: 

15 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 through the National Institute of Food and Agriculture 

18 $20,000,000 for each of fiscal years 2014 through 2018.’’. 

19 SEC. 7203. SUSTAINABLE AGRICULTURE TECHNOLOGY DE20 VELOPMENT AND TRANSFER PROGRAM. 

21 Section 1628 of the Food, Agriculture, Conservation, 

22 and Trade Act of 1990 (7 U.S.C. 5831) is amended by strik23 ing subsection (f) and inserting the following: 

24 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are 

25 authorized to be appropriated to carry out this section such 
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1 sums as are necessary for each of fiscal years 2014 through 

2 2018.’’. 

3 SEC. 7204. NATIONAL TRAINING PROGRAM. 

4 Section 1629 of the Food, Agriculture, Conservation, 

5 and Trade Act of 1990 (7 U.S.C. 5832) is amended by strik6 ing subsection (i) and inserting the following: 

7 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 

8 authorized to be appropriated to carry out the National 

9 Training Program $20,000,000 for each of fiscal years 2014 

10 through 2018.’’. 

11 SEC. 7205. NATIONAL GENETICS RESOURCES PROGRAM. 

12 Section 1635(b) of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 (7 U.S.C. 5844(b)) is amended— 

14 (1) by striking ‘‘such funds as may be nec15 essary’’; and 

16 (2) by striking ‘‘subtitle’’ and all that follows 

17 and inserting the following: ‘‘subtitle— 

18 ‘‘(1) such sums as are necessary for each of fiscal 

19 years 1991 through 2013; and 

20 ‘‘(2) $1,000,000 for each of fiscal years 2014 

21 through 2018.’’. 

22 SEC. 7206. NATIONAL AGRICULTURAL WEATHER INFORMA23 TION SYSTEM. 

24 Section 1641(c) of the Food, Agriculture, Conservation, 

25 and Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by 
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1 inserting ‘‘and $1,000,000 for each of fiscal years 2014 

2 through 2018’’ before the period at the end. 

3 SEC. 7207. AGRICULTURAL GENOME INITIATIVE. 

4 Section 1671(c) of the Food, Agriculture, Conservation, 

5 and Trade Act of 1990 (7 U.S.C. 5924(c)) is amended by 

6 adding at the end the following: 

7 ‘‘(3) CONSORTIA.—The Secretary shall encourage 

8 awards under this section to consortia of eligible enti9 ties.’’. 

10 SEC. 7208. HIGH-PRIORITY RESEARCH AND EXTENSION INI11 TIATIVES. 

12 Section 1672 of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 (7 U.S.C. 5925) is amended— 

14 (1) in the first sentence of subsection (a), by 

15 striking ‘‘subsections (e) through (i) of’’; 

16 (2) in subsection (b)(2)— 

17 (A) by striking the first sentence and insert18 ing the following: 

19 ‘‘(A) IN GENERAL.—To facilitate the mak20 ing of research and extension grants under sub21 section (d), the Secretary may appoint a task 

22 force to make recommendations to the Sec23 retary.’’; and 

24 (B) in the second sentence, by striking ‘‘The 

25 Secretary may not incur costs in excess of $1,000 
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1 for any fiscal year in connection with each’’ and 

2 inserting the following: 

3 ‘‘(B) COSTS.—The Secretary may not incur 

4 costs in excess of $1,000 for any fiscal year in 

5 connection with a’’; 

6 (3) in subsection (e)— 

7 (A) by striking paragraphs (1) through (5), 

8 (7), (8), (11) through (43), (47), (48), (51), and 

9 (52); 

10 (B) by redesignating paragraphs (6), (9), 

11 (10), (44), (45), (46), (49), and (50) as para12 graphs (1), (2), (3), (4), (5), (6), (7), and (8), re13 spectively; and 

14 (C) by adding at the end the following: 

15 ‘‘(9) CERVIDAE INITIATIVE.—Research and ex16 tension grants may be made under this section to 

17 support collaborative research focusing on the develop18 ment of viable strategies for the prevention, diagnosis, 

19 and treatment of parasites and diseases of farmed 

20 deer and elk such as epizootic hemorrhagic disease 

21 and chronic wasting disease and the mapping of the 

22 cervid genome. 

23 ‘‘(10) CORN, SOYBEAN MEAL, CEREAL GRAINS, 

24 AND GRAIN BYPRODUCTS RESEARCH AND EXTEN25 SION.—Research and extension grants may be made 
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1 under this section for the purpose of carrying out or 

2 enhancing research to improve the digestibility, nutri3 tional value, and efficiency of use of corn, soybean 

4 meal, cereal grains, and grain byproducts for the 

5 poultry and food animal production industries.’’; 

6 (4) by striking subsections (f), (g), and (i); 

7 (5) by redesignating subsections (h) and (j) as 

8 subsections (j) and (k), respectively; 

9 (6) by inserting after subsection (e) the following: 

10 ‘‘(f) PULSE HEALTH INITIATIVE.— 

11 ‘‘(1) DEFINITIONS.—In this subsection; 

12 ‘‘(A) INITIATIVE.—The term ‘Initiative’ 

13 means the pulse health initiative established by 

14 paragraph (2). 

15 ‘‘(B) PULSE.—The term ‘pulse’ means dry 

16 beans, dry peas, lentils, and chickpeas or 

17 garbanzo beans. 

18 ‘‘(2) ESTABLISHMENT.—Notwithstanding any 

19 other provision of law, during the period beginning 

20 on the date of enactment of the Agriculture Reform, 

21 Food, and Jobs Act of 2013 and ending on September 

22 30, 2018, the Secretary shall carry out a pulse crop 

23 health and extension initiative to address the critical 

24 needs of the pulse crop industry by developing and 
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1 disseminating science-based tools and information, 

2 including— 

3 ‘‘(A) research in health and nutrition, such 

4 as— 

5 ‘‘(i) identifying global dietary patterns 

6 of pulse crops in relation to population 

7 health; 

8 ‘‘(ii) researching pulse crop diets and 

9 the ability of the diets to reduce obesity and 

10 associated chronic disease (including car11 diovascular disease, type 2 diabetes, and 

12 cancer); and 

13 ‘‘(iii) identifying the underlying mech14 anisms of the health benefits of pulse crop 

15 consumption (including disease biomarkers, 

16 bioactive components, and relevant plant 

17 genetic components to enhance the health 

18 promoting value of pulse crops); 

19 ‘‘(B) research in functionality, such as— 

20 ‘‘(i) improving the functional prop21 erties of pulse crops and pulse fractions; 

22 ‘‘(ii) developing new and innovative 

23 technologies to improve pulse crops as an 

24 ingredient in food products; and 
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1 ‘‘(iii) developing nutrient-dense food 

2 product solutions to ameliorate chronic dis3 ease and enhance food security worldwide; 

4 ‘‘(C) research in sustainability to enhance 

5 global food security, such as— 

6 ‘‘(i) plant breeding, genetics and 

7 genomics to improve productivity, nutrient 

8 density, and phytonutrient content for a 

9 growing world population; 

10 ‘‘(ii) pest and disease management, in11 cluding resistance to pests and diseases re12 sulting in reduced application management 

13 strategies; and 

14 ‘‘(iii) improving nitrogen fixation to 

15 reduce the carbon and energy footprint of 

16 agriculture; 

17 ‘‘(D) optimizing pulse cropping systems to 

18 reduce water usage; and 

19 ‘‘(E) education and technical service, such 

20 as— 

21 ‘‘(i) providing technical expertise to 

22 help food companies include nutrient-dense 

23 pulse crops in innovative and healthy foods; 

24 and 
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1 ‘‘(ii) establishing an educational pro2 gram to encourage the consumption and 

3 production of pulse crops in the United 

4 States and other countries. 

5 ‘‘(3) ELIGIBLE ENTITIES.—The Secretary may 

6 carry out the Initiative through— 

7 ‘‘(A) Federal agencies, including the Agri8 cultural Research Service and the National In9 stitute of Food and Agriculture; 

10 ‘‘(B) National Laboratories; 

11 ‘‘(C) institutions of higher education; 

12 ‘‘(D) research institutions or organizations; 

13 ‘‘(E) private organizations or corporations; 

14 ‘‘(F) State agricultural experiment stations; 

15 ‘‘(G) individuals; or 

16 ‘‘(H) groups consisting of 2 or more entities 

17 or individuals described in subparagraphs (A) 

18 through (G). 

19 ‘‘(4) RESEARCH PROJECT GRANTS.— 

20 ‘‘(A) IN GENERAL.—In carrying out this 

21 subsection, the Secretary shall award grants on 

22 a competitive basis. 

23 ‘‘(B) IN GENERAL.—The Secretary shall— 

24 ‘‘(i) seek and accept proposals for 

25 grants; 
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1 ‘‘(ii) determine the relevance and merit 

2 of proposals through a system of peer re3 view, in consultation with the pulse crop 

4 industry; and 

5 ‘‘(iii) award grants on the basis of 

6 merit, quality, and relevance. 

7 ‘‘(C) PRIORITIES.—In making grants under 

8 this subsection, the Secretary shall provide a 

9 higher priority to projects that— 

10 ‘‘(i) are multistate, multiinstitutional, 

11 and multidisciplinary; and 

12 ‘‘(ii) include explicit mechanisms to 

13 communicate results to the pulse crop in14 dustry and the public. 

15 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

16 There is authorized to be appropriated to carry out 

17 this subsection $25,000,000 for each of fiscal years 

18 2014 through 2018. 

19 ‘‘(g) FORESTRY PRODUCTS ADVANCED UTILIZATION

20 RESEARCH.— 

21 ‘‘(1) ESTABLISHMENT.—The Secretary shall es22 tablish a forestry and forestry products research and 

23 extension initiative to develop and disseminate 

24 science-based tools that address the needs of the for25 estry sector and their respective regions, forest and 
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1 timberland owners and managers, and forestry prod2 ucts engineering, manufacturing, and related inter3 ests, including— 

4 ‘‘(A) research in wood quality improvement 

5 with respect to lumber strength and grade yield; 

6 ‘‘(B) improvement in forestry products, 

7 lumber, and evaluation standards and valuation 

8 techniques; 

9 ‘‘(C) research and development of novel en10 gineered lumber products and renewable energy 

11 from wood; 

12 ‘‘(D) efforts to improve lumber quality and 

13 value based on forest management techniques; 

14 ‘‘(E) efforts to improve forestry products 

15 conversion and manufacturing efficiency, pro16 ductivity, and profitability over the long term 

17 (including forestry product marketing); and 

18 ‘‘(F) other research to support the longevity, 

19 sustainability, and profitability of timberland 

20 through sound management and utilization. 

21 ‘‘(2) GRANTS.— 

22 ‘‘(A) IN GENERAL.—As part of the initia23 tive described in paragraph (1), the Secretary 

24 shall make grants to eligible entities to carry out 
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1 the activities described in subparagraphs (A) 

2 through (F) of paragraph (1). 

3 ‘‘(B) ELIGIBLE ENTITIES.—Entities eligible 

4 for grants described in subparagraph (A) shall 

5 include— 

6 ‘‘(i) Federal agencies; 

7 ‘‘(ii) National Laboratories 

8 ‘‘(iii) colleges and universities; 

9 ‘‘(iv) research institutions and organi10 zations; 

11 ‘‘(v) private organizations or corpora12 tions; 

13 ‘‘(vi) State agricultural experiment 

14 stations; and 

15 ‘‘(vii) groups consisting of 2 or more 

16 such entities. 

17 ‘‘(C) PRIORITIES.—In making grants, the 

18 Secretary shall give higher priority to projects 

19 that— 

20 ‘‘(i) are multistate, multiinstitutional, 

21 or multidisciplinary; 

22 ‘‘(ii) include explicit mechanisms to 

23 communicate results to producers, forestry 

24 industry stakeholders, policymakers, and the 

25 public; and 
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1 ‘‘(iii) have— 

2 ‘‘(I) extensive history and dem3 onstrated experience in forestry and 

4 forestry products research; 

5 ‘‘(II) existing capacity in forestry 

6 products research and dissemination; 

7 and 

8 ‘‘(III) a demonstrated means of 

9 evaluating and responding to the needs 

10 of the related commercial sector. 

11 ‘‘(D) ADMINISTRATION.— 

12 ‘‘(i) SELECTION PROCESS.—In award13 ing grants under this subsection, the Sec14 retary shall— 

15 ‘‘(I) seek and accept proposals; 

16 ‘‘(II) determine the relevance and 

17 merit of proposals through a system of 

18 peer and merit review; and 

19 ‘‘(III) award grants on the basis 

20 of merit, quality, and relevance. 

21 ‘‘(ii) TERMS.—The term of a grant 

22 made under this paragraph may not exceed 

23 10 years. 

24 ‘‘(iii) MATCHING FUNDS.—The Sec25 retary shall require the recipient of a grant 
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1 to provide funds or in-kind support from 

2 non-Federal sources in an amount that is at 

3 least equal to the amount provided by the 

4 Federal Government. 

5 ‘‘(iv) BUILDINGS AND FACILITIES.— 

6 Funds made available under this paragraph 

7 shall not be used for the construction of a 

8 new building or facility or the acquisition, 

9 expansion, remodeling, or alteration of an 

10 existing building or facility (including site 

11 grading and improvement, and architect 

12 fees). 

13 ‘‘(v) COORDINATION.—The Secretary 

14 shall ensure that any activities carried out 

15 under this paragraph are done in coordina16 tion with the Forest Products Laboratory. 

17 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

18 ‘‘(A) IN GENERAL.—There is authorized to 

19 be appropriated to carry out this subsection 

20 $7,000,000 for each of fiscal years 2014 through 

21 2018. 

22 ‘‘(B) MATCHING FUNDS.—To the extent 

23 practicable, the Secretary shall match any funds 

24 received under subparagraph (A) with funds re25 ceived for the research and development program 
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1 of the Forest Service under section 3 of the For2 est and Rangeland Renewable Resources Re3 search Act of 1978 (16 U.S.C. 1642). 

4 ‘‘(h) TRAINING COORDINATION FOR FOOD AND AGRI5 CULTURE PROTECTION.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall make 

7 grants and enter into contracts or cooperative agree8 ments with eligible entities described in paragraph 

9 (2) for the purposes of establishing a Comprehensive 

10 Food Safety Training Network. 

11 ‘‘(2) ELIGIBILITY.— 

12 ‘‘(A) IN GENERAL.—For purposes of this 

13 subsection, an eligible entity is a multiinstitu14 tional consortium that includes— 

15 ‘‘(i) a nonprofit institution that pro16 vides administering food protection train17 ing; and 

18 ‘‘(ii) 1 or more training centers in in19 stitutions of higher education that have 

20 demonstrated expertise in developing and 

21 delivering community-based training in 

22 food and agricultural safety and defense. 

23 ‘‘(B) REQUIREMENTS.—To ensure that co24 ordination and administration is provided 

25 across all the disciplines and provide comprehen-
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1 sive food protection training, the Secretary may 

2 only consider an entire consortium collectively 

3 rather than on an institution-by-institution 

4 basis. 

5 ‘‘(C) MEMBERSHIP.—An eligible entity may 

6 alter the consortium membership to meet specific 

7 training expertise needs. 

8 ‘‘(3) DUTIES OF ELIGIBLE ENTITY.—As a condi9 tion of the receipt of assistance under this subsection, 

10 an eligible entity, in cooperation with the Secretary, 

11 shall establish and maintain the network for an inter12 nationally integrated training system to enhance pro13 tection of the United States food supply, including, at 

14 a minimum— 

15 ‘‘(A) developing curricula and a training 

16 network to provide basic, technical, management, 

17 and leadership training to regulatory and public 

18 health officials, producers, processors, and other 

19 agrifood businesses; 

20 ‘‘(B) serving as the hub for the administra21 tion of an open training network; 

22 ‘‘(C) implementing standards to ensure the 

23 delivery of quality training through a national 

24 curricula; 
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1 ‘‘(D) building and overseeing a nationally 

2 recognized instructor cadre to ensure the avail3 ability of highly qualified instructors; 

4 ‘‘(E) reviewing training proposed through 

5 the National Institute of Food and Agriculture 

6 and other relevant Federal agencies that report 

7 to the Secretary on the quality and content of 

8 proposed and existing courses; 

9 ‘‘(F) assisting Federal agencies in the im10 plementation of food protection training require11 ments including requirements contained in the 

12 Agriculture Reform, Food, and Jobs Act of 2013, 

13 the FDA Food Safety Modernization Act (Public 

14 Law 111–353; 124 Stat. 3885), and amendments 

15 made by those Acts; and 

16 ‘‘(G) performing evaluation and outcome17 based studies to provide to the Secretary feedback 

18 on the effectiveness and impact of training and 

19 metrics on jurisdictions and sectors within the 

20 food safety system. 

21 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

22 There is authorized to be appropriated to carry out 

23 this section $20,000,000 for each of fiscal years 2014 

24 through 2018, to remain available until expended. 
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1 ‘‘(i) FARM ANIMAL AGRICULTURE INTEGRATED RE2 SEARCH INITIATIVE.— 

3 ‘‘(1) DEFINITION OF INITIATIVE.—In this sub4 section, the term ‘Initiative’ means the farm animal 

5 integrated research initiative established under para6 graph (2). 

7 ‘‘(2) ESTABLISHMENT.—Notwithstanding any 

8 other provision of law, during the period beginning 

9 on the date of enactment of the Agriculture Reform, 

10 Food, and Jobs Act of 2013 and ending on September 

11 30, 2018, the Secretary shall carry out a farm animal 

12 integrated research initiative to address the critical 

13 needs of animal agriculture, by developing and dis14 seminating science-based tools and information, in15 cluding— 

16 ‘‘(A) research to promote food security, such 

17 as— 

18 ‘‘(i) improving feed efficiency; 

19 ‘‘(ii) improving energetic efficiency; 

20 ‘‘(iii) connecting genomics, proteomics, 

21 metabolomics, and related phenomena to 

22 animal production; 

23 ‘‘(iv) improving reproductive effi24 ciency; and 
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1 ‘‘(v) enhancing pre- and post-harvest 

2 food safety systems; 

3 ‘‘(B) research on the interrelationship be4 tween animal and human health, such as— 

5 ‘‘(i) exploring new approaches for vac6 cine development; 

7 ‘‘(ii) understanding and controlling 

8 zoonoses, including the impact of zoonoses 

9 on food safety; 

10 ‘‘(iii) improving animal health 

11 through feed; and 

12 ‘‘(iv) enhancing product quality and 

13 nutritive value; and 

14 ‘‘(C) research on stewardship, such as— 

15 ‘‘(i) minimizing or reducing the flow of 

16 nutrients from animal production systems; 

17 ‘‘(ii) improving sustainability and in18 creasing efficiency of natural resource use; 

19 and 

20 ‘‘(iii) better understanding animal 

21 production systems and the interactions be22 tween animals, plants, and human manage23 ment. 

24 ‘‘(3) ELIGIBLE ENTITIES.—The Secretary may 

25 carry out the Initiative through— 
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1 ‘‘(A) Federal agencies, including the Agri2 cultural Research Service and the National In3 stitute of Food and Agriculture; 

4 ‘‘(B) National Laboratories; 

5 ‘‘(C) institutions of higher education; 

6 ‘‘(D) research institutions or organizations; 

7 ‘‘(E) private organizations or corporations; 

8 ‘‘(F) State agricultural experiment stations; 

9 ‘‘(G) individuals; and 

10 ‘‘(H) groups consisting of 2 or more entities 

11 or individuals described in subparagraphs (A) 

12 through (G). 

13 ‘‘(4) RESEARCH PROJECT GRANTS.— 

14 ‘‘(A) IN GENERAL.—In carrying out this 

15 subsection, the Secretary shall award grants on 

16 a competitive basis in accordance with subpara17 graphs (B) and (C). 

18 ‘‘(B) PROCESS FOR AWARDING GRANTS.— 

19 The Secretary shall— 

20 ‘‘(i) seek and accept proposals for 

21 grants; 

22 ‘‘(ii) determine the relevance and merit 

23 of proposals through a system of peer re24 view, in consultation with the animal agri25 culture industry; and 
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1 ‘‘(iii) award grants on the basis of 

2 merit, quality, and relevance. 

3 ‘‘(C) PRIORITIES.—In making grants under 

4 this subsection, the Secretary shall give priority 

5 to projects that— 

6 ‘‘(i) are multistate, multiinstitutional, 

7 and multidisciplinary; and 

8 ‘‘(ii) include explicit mechanisms to 

9 communicate results to the animal agri10 culture industry and the public. 

11 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

12 There is authorized to be appropriated to carry out 

13 this subsection $50,000,000 for each of fiscal years 

14 2014 through 2018.’’; 

15 (7) in subsection (j) (as redesignated by para16 graph (5)), by striking ‘‘2012’’ each place it appears 

17 and inserting ‘‘2018’’; and 

18 (8) in subsection (k) (as redesignated by para19 graph (5)), by striking ‘‘2012’’ and inserting ‘‘2018’’. 

20 SEC. 7209. ORGANIC AGRICULTURE RESEARCH AND EXTEN21 SION INITIATIVE. 

22 Section 1672B of the Food, Agriculture, Conservation, 

23 and Trade Act of 1990 (7 U.S.C. 5925b) is amended— 

24 (1) in subsection (a)— 
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1 (A) in the matter preceding paragraph (1), 

2 by inserting ‘‘, education,’’ after ‘‘support re3 search’’; 

4 (B) in paragraph (1), by inserting ‘‘and 

5 improvement’’ after ‘‘development’’; 

6 (C) in paragraph (2), by striking ‘‘to pro7 ducers and processors who use organic methods’’ 

8 and inserting ‘‘of organic agricultural produc9 tion and methods to producers, processors, and 

10 rural communities’’; 

11 (D) in paragraph (5), by inserting ‘‘and re12 searching solutions to’’ after ‘‘identifying’’; and 

13 (E) in paragraph (6), by striking ‘‘and 

14 marketing’’ and inserting ‘‘, marketing, and food 

15 safety’’; 

16 (2) by striking subsection (e); 

17 (3) by redesignating subsection (f) as subsection 

18 (e); and 

19 (4) in paragraph (1) of subsection (e) (as so re20 designated)— 

21 (A) in the heading, by striking ‘‘FOR FISCAL

22 YEARS 2008 THROUGH 2012’’; 

23 (B) in subparagraph (A), by striking ‘‘and’’ 

24 at the end; 
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1 (C) in subparagraph (B), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (D) by adding at the end the following: 

4 ‘‘(C) $16,000,000 for each of fiscal years 

5 2014 through 2018.’’. 

6 SEC. 7210. FARM BUSINESS MANAGEMENT. 

7 Section 1672D(d) of the Food, Agriculture, Conserva8 tion, and Trade Act of 1990 (7 U.S.C. 5925f(d)) is amended 

9 by striking ‘‘such sums as are necessary to carry out this 

10 section.’’ and inserting the following: ‘‘to carry out this sec11 tion— 

12 ‘‘(1) such sums as are necessary for fiscal year 

13 2013; and 

14 ‘‘(2) $5,000,000 for each of fiscal years 2014 

15 through 2018.’’. 

16 SEC. 7211. REGIONAL CENTERS OF EXCELLENCE. 

17 Subtitle H of the Food, Agriculture, Conservation, and 

18 Trade Act of 1990 is amended by inserting after section 

19 1672D (7 U.S.C. 5925) the following: 

20 ‘‘SEC. 1673. REGIONAL CENTERS OF EXCELLENCE. 

21 ‘‘(a) ESTABLISHMENT.—The Secretary may prioritize 

22 regional centers of excellence established for specific agricul23 tural commodities for the receipt of funding. 

24 ‘‘(b) COMPOSITION.—A regional center of excellence 

25 shall be composed of 1 or more colleges and universities (in-
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1 cluding land-grant institutions, schools of forestry, schools 

2 of veterinary medicine, or NLGCA Institutions (as defined 

3 in section 1404 of the National Agricultural Research, Ex4 tension, and Teaching Policy Act of 1977 (7 U.S.C. 3103))) 

5 that provide financial support to the regional center of ex6 cellence. 

7 ‘‘(c) CRITERIA FOR REGIONAL CENTERS OF EXCEL8 LENCE.—The criteria for consideration to be a regional cen9 ter of excellence shall include efforts— 

10 ‘‘(1) to ensure coordination and cost-effectiveness 

11 by reducing unnecessarily duplicative efforts regard12 ing research, teaching, and extension; 

13 ‘‘(2) to leverage available resources by using pub14 lic/private partnerships among agricultural industry 

15 groups, institutions of higher education, and the Fed16 eral Government; 

17 ‘‘(3) to implement teaching initiatives to in18 crease awareness and effectively disseminate solutions 

19 to target audiences through extension activities; 

20 ‘‘(4) to increase the economic returns to rural 

21 communities by identifying, attracting, and directing 

22 funds to high-priority agricultural issues; and 

23 ‘‘(5) to improve teaching capacity and infra24 structure at colleges and universities (including land- 
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1 grant institutions, schools of forestry, and schools of 

2 veterinary medicine, and NLGCA Institutions). 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $10,000,000 for each of fiscal years 2014 through 2018.’’. 

6 SEC. 7212. ASSISTIVE TECHNOLOGY PROGRAM FOR FARM7 ERS WITH DISABILITIES. 

8 Section 1680(c)(1) of the Food, Agriculture, Conserva9 tion, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is 

10 amended— 

11 (1) by striking ‘‘is’’ and inserting ‘‘are’’; and 

12 (2) by striking ‘‘section’’ and all that follows and 

13 inserting the following: ‘‘section— 

14 ‘‘(A) $6,000,000 for each of fiscal years 

15 1999 through 2013; and 

16 ‘‘(B) $5,000,000 for each of fiscal years 

17 2014 through 2018.’’. 

18 SEC. 7213. NATIONAL RURAL INFORMATION CENTER 

19 CLEARINGHOUSE. 

20 Section 2381(e) of the Food, Agriculture, Conservation, 

21 and Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by 

22 striking ‘‘2012’’ and inserting ‘‘2018’’. 
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1 Subtitle C—Agricultural Research, 

2 Extension, and Education Re3 form Act of 1998 

4 SEC. 7301. RELEVANCE AND MERIT OF AGRICULTURAL RE5 SEARCH, EXTENSION, AND EDUCATION FUND6 ED BY THE DEPARTMENT. 

7 Section 103(a)(2) of the Agricultural Research, Exten8 sion, and Education Reform Act of 1998 (7 U.S.C. 

9 7613(a)(2)) is amended— 

10 (1) by striking the paragraph designation and 

11 heading and inserting the following: 

12 ‘‘(2) RELEVANCE AND MERIT REVIEW OF RE13 SEARCH, EXTENSION, AND EDUCATION GRANTS.—’’; 

14 (2) in subparagraph (A)— 

15 (A) by inserting ‘‘relevance and’’ before 

16 ‘‘merit’’; and 

17 (B) by striking ‘‘extension or education’’ 

18 and inserting, ‘‘research, extension, or edu19 cation’’; and 

20 (3) in subparagraph (B) by inserting ‘‘on a con21 tinuous basis’’ after ‘‘procedures’’. 
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1 SEC. 7302. INTEGRATED RESEARCH, EDUCATION, AND EX2 TENSION COMPETITIVE GRANTS PROGRAM. 

3 Section 406(f) of the Agricultural Research, Extension, 

4 and Education Reform Act of 1998 (7 U.S.C. 7626(f)) is 

5 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

6 SEC. 7303. SUPPORT FOR RESEARCH REGARDING DISEASES 

7 OF WHEAT, TRITICALE, AND BARLEY CAUSED 

8 BY FUSARIUM GRAMINEARUM OR BY 

9 TILLETIA INDICA. 

10 Section 408(e) of the Agricultural Research, Extension, 

11 and Education Reform Act of 1998 (7 U.S.C. 7628(e)) is 

12 amended by striking ‘‘such sums as may be necessary for 

13 each of fiscal years 1999 through 2012’’ and inserting 

14 ‘‘$10,000,000 for each of fiscal years 2014 through 2018’’. 

15 SEC. 7304. GRANTS FOR YOUTH ORGANIZATIONS. 

16 Section 410(d) of the Agricultural Research, Exten17 sion, and Education Reform Act of 1998 (7 U.S.C. 7630(d)) 

18 is amended by striking ‘‘section such sums as are necessary’’ 

19 and all that follows and inserting the following: ‘‘section— 

20 ‘‘(1) such sums as are necessary for each of fiscal 

21 years 2008 through 2013; and 

22 ‘‘(2) $3,000,000 for each of fiscal years 2014 

23 through 2018.’’. 
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1 SEC. 7305. SPECIALTY CROP RESEARCH INITIATIVE. 

2 Section 412 of the Agricultural Research, Extension, 

3 and Education Reform Act of 1998 (7 U.S.C. 7632) is 

4 amended— 

5 (1) in subsection (b)(3), by inserting ‘‘handling 

6 and processing,’’ after ‘‘production efficiency,’’; 

7 (2) in subsection (e)— 

8 (A) in paragraph (1)— 

9 (i) in subparagraph (B), by striking 

10 ‘‘and’’ at the end; 

11 (ii) in subparagraph (C), by striking 

12 the period at the end and inserting ‘‘; and’’; 

13 and 

14 (iii) by inserting after subparagraph 

15 (C) the following: 

16 ‘‘(D) consult with the specialty crops com17 mittee authorized under section 1408A of the Na18 tional Agricultural Research, Extension, and 

19 Teaching Policy Act of 1977 (7 U.S.C. 3123a) 

20 during the peer and merit review process.’’; and 

21 (B) in paragraph (3), by striking ‘‘non22 Federal’’ and all that follows through the end of 

23 the paragraph and inserting ‘‘other sources in 

24 an amount that is at least equal to the amount 

25 provided by a grant received under this sec26 tion.’’; and 
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1 (3) in subsection (h), by striking paragraph (3) 

2 and inserting the following: 

3 ‘‘(3) SUBSEQUENT FUNDING.—Of the funds of 

4 the Commodity Credit Corporation, the Secretary 

5 shall make available to carry out this section— 

6 ‘‘(A) $25,000,000 for fiscal year 2014; 

7 ‘‘(B) $30,000,000 for each of fiscal years 

8 2015 and 2016; 

9 ‘‘(C) $65,000,000 for fiscal year 2017; and 

10 ‘‘(D) $50,000,000 for fiscal year 2018 and 

11 each fiscal year thereafter.’’. 

12 SEC. 7306. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE 

13 PROGRAM. 

14 Section 604(e) of the Agricultural Research, Extension, 

15 and Education Reform Act of 1998 (7 U.S.C. 7642(e)) is 

16 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

17 SEC. 7307. OFFICE OF PEST MANAGEMENT POLICY. 

18 Section 614(f) of the Agricultural Research, Extension, 

19 and Education Reform Act of 1998 (7 U.S.C. 7653(f)) is 

20 amended— 

21 (1) by striking ‘‘such sums as are necessary’’; 

22 and 

23 (2) by striking ‘‘section’’ and all that follows and 

24 inserting the following: ‘‘section— 
917 

† HR 2642 EAS 

1 ‘‘(1) such sums as are necessary for each of fiscal 

2 years 1999 through 2013; and 

3 ‘‘(2) $3,000,000 for each of fiscal years 2014 

4 through 2018.’’. 

5 SEC. 7308. AUTHORIZATION OF REGIONAL INTEGRATED 

6 PEST MANAGEMENT CENTERS. 

7 Subtitle B of title VI of the Agricultural Research, Ex8 tension, and Education Reform Act of 1998 (7 U.S.C. 7651 

9 et seq.) is amended by adding at the end the following: 

10 ‘‘SEC. 621. AUTHORIZATION OF REGIONAL INTEGRATED 

11 PEST MANAGEMENT CENTERS. 

12 ‘‘(a) IN GENERAL.—There are established 4 regional 

13 integrated pest management centers (referred to in this sec14 tion as the ‘Centers’), which shall be located at such specific 

15 locations in the north central, northeastern, southern, and 

16 western regions of the United States as the Secretary shall 

17 specify. 

18 ‘‘(b) PURPOSES.—The purposes of the Centers shall 

19 be— 

20 ‘‘(1) to strengthen the connection of the Depart21 ment with production agriculture, research, and ex22 tension programs, and agricultural stakeholders 

23 throughout the United States; 
918 

† HR 2642 EAS 

1 ‘‘(2) to increase the effectiveness of providing pest 

2 management solutions for the private and public sec3 tors; 

4 ‘‘(3) to quickly respond to information needs of 

5 the public and private sectors; and 

6 ‘‘(4) to improve communication among the rel7 evant stakeholders. 

8 ‘‘(c) DUTIES.—In meeting the purposes described in 

9 subsection (b) and otherwise carrying out this section, the 

10 Centers shall— 

11 ‘‘(1) develop regional strategies to address pest 

12 management needs; 

13 ‘‘(2) assist the Department and partner institu14 tions of the Department in identifying, prioritizing, 

15 and coordinating a national pest management re16 search, extension, and education program imple17 mented on a regional basis; 

18 ‘‘(3) establish a national pest management com19 munication network that includes— 

20 ‘‘(A) the agencies of the Department and 

21 other government agencies; 

22 ‘‘(B) scientists at institutions of higher edu23 cation; and 

24 ‘‘(C) stakeholders focusing on pest manage25 ment issues; 
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† HR 2642 EAS 

1 ‘‘(4) serve as regional hubs responsible for ensur2 ing efficient access to pest management expertise and 

3 data available through institutions of higher edu4 cation; and 

5 ‘‘(5) on behalf of the Department, manage grants 

6 that can be most effectively and efficiently delivered 

7 at the regional level, as determined by the Sec8 retary.’’. 

9 Subtitle D—Other Laws 

10 SEC. 7401. CRITICAL AGRICULTURAL MATERIALS ACT. 

11 Section 16(a) of the Critical Agricultural Materials 

12 Act (7 U.S.C. 178n(a)) is amended— 

13 (1) by striking ‘‘such sums as are necessary’’; 

14 and 

15 (2) by striking ‘‘Act’’ and all that follows and 

16 inserting the following: ‘‘Act— 

17 ‘‘(1) such sums as are necessary for each of fiscal 

18 years 1991 through 2013; and 

19 ‘‘(2) $2,000,000 for each of fiscal years 2014 

20 through 2018.’’. 

21 SEC. 7402. EQUITY IN EDUCATIONAL LAND-GRANT STATUS 

22 ACT OF 1994. 

23 (a) DEFINITION OF 1994 INSTITUTIONS.—Section 532 

24 of the Equity in Educational Land-Grant Status Act of 
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1 1994 (7 U.S.C. 301 note; Public Law 103–382) is amended 

2 to read as follows: 

3 ‘‘SEC. 532. DEFINITION OF 1994 INSTITUTIONS. 

4 ‘‘In this part, the term ‘1994 Institutions’ means any 

5 1 of the following: 

6 ‘‘(1) Aaniiih Nakoda College. 

7 ‘‘(2) Bay Mills Community College. 

8 ‘‘(3) Blackfeet Community College. 

9 ‘‘(4) Cankdeska Cikana Community College. 

10 ‘‘(5) Chief Dull Knife Memorial College. 

11 ‘‘(6) College of Menominee Nation. 

12 ‘‘(7) College of the Muscogee Nation. 

13 ‘‘(8) D–Q University. 

14 ‘‘(9) Dine College. 

15 ‘‘(10) Fond du Lac Tribal and Community Col16 lege. 

17 ‘‘(11) Fort Berthold Community College. 

18 ‘‘(12) Fort Peck Community College. 

19 ‘‘(13) Haskell Indian Nations University. 

20 ‘‘(14) Ilisagvik College. 

21 ‘‘(15) Institute of American Indian and Alaska 

22 Native Culture and Arts Development. 

23 ‘‘(16) Keweenaw Bay Ojibwa Community Col24 lege. 
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1 ‘‘(17) Lac Courte Oreilles Ojibwa Community 

2 College. 

3 ‘‘(18) Leech Lake Tribal College. 

4 ‘‘(19) Little Big Horn College. 

5 ‘‘(20) Little Priest Tribal College. 

6 ‘‘(21) Navajo Technical College. 

7 ‘‘(22) Nebraska Indian Community College. 

8 ‘‘(23) Northwest Indian College. 

9 ‘‘(24) Oglala Lakota College. 

10 ‘‘(25) Saginaw Chippewa Tribal College. 

11 ‘‘(26) Salish Kootenai College. 

12 ‘‘(27) Sinte Gleska University. 

13 ‘‘(28) Sisseton Wahpeton College. 

14 ‘‘(29) Sitting Bull College. 

15 ‘‘(30) Southwestern Indian Polytechnic Institute. 

16 ‘‘(31) Stone Child College. 

17 ‘‘(32) Tohono O’odham Community College. 

18 ‘‘(33) Turtle Mountain Community College. 

19 ‘‘(34) United Tribes Technical College. 

20 ‘‘(35) White Earth Tribal and Community Col21 lege.’’. 

22 (b) ENDOWMENT FOR 1994 INSTITUTIONS.— 

23 (1) IN GENERAL.—Section 533 of the Equity in 

24 Educational Land-Grant Status Act of 1994 (7 

25 U.S.C. 301 note; Public Law 103–382) is amended— 
922 

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1 (A) in subsection (a)(2)(A)(ii), by striking 

2 ‘‘of such Act as added by section 534(b)(1) of this 

3 part’’ and inserting ‘‘of that Act (7 U.S.C. 

4 343(b)(3)) and for programs for children, youth, 

5 and families at risk and for Federally recognized 

6 tribes implemented under section 3(d) of that Act 

7 (7 U.S.C. 343(d))’’; and 

8 (B) in subsection (b), in the first sentence 

9 by striking ‘‘2012’’ and inserting ‘‘2018’’. 

10 (2) CONFORMING AMENDMENT.—Section 3(d) of 

11 the Smith-Lever Act (7 U.S.C. 343(d)) is amended in 

12 the second sentence by inserting ‘‘and, in the case of 

13 programs for children, youth, and families at risk 

14 and for Federally recognized tribes, the 1994 Institu15 tions (as defined in section 532 of the Equity in Edu16 cational Land-Grant Status Act of 1994 (7 U.S.C. 

17 301 note; Public Law 103–382)),’’ before ‘‘may com18 pete for’’. 

19 (c) INSTITUTIONAL CAPACITY BUILDING GRANTS.— 

20 Section 535 of the Equity in Educational Land-Grant Sta21 tus Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) 

22 is amended by striking ‘‘2012’’ each place it appears in 

23 subsections (b)(1) and (c) and inserting ‘‘2018’’. 

24 (d) RESEARCH GRANTS.— 
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† HR 2642 EAS 

1 (1) AUTHORIZATION OF APPROPRIATIONS.—Sec2 tion 536(c) of the Equity in Educational Land-Grant 

3 Status Act of 1994 (7 U.S.C. 301 note; Public Law 

4 103–382) is amended in the first sentence by striking 

5 ‘‘2012’’ and inserting ‘‘2018’’. 

6 (2) RESEARCH GRANT REQUIREMENTS.—Section 

7 536(b) of the Equity in Educational Land-Grant Sta8 tus Act of 1994 (7 U.S.C. 301 note; Public Law 103– 

9 382) is amended by striking ‘‘with at least 1 other 

10 land-grant college or university’’ and all that follows 

11 and inserting the following: ‘‘with— 

12 ‘‘(1) the Agricultural Research Service of the De13 partment of Agriculture; or 

14 ‘‘(2) at least 1— 

15 ‘‘(A) other land-grant college or university 

16 (exclusive of another 1994 Institution); 

17 ‘‘(B) non-land-grant college of agriculture 

18 (as defined in section 1404 of the National Agri19 cultural Research, Extension, and Teaching Pol20 icy Act of 1977 (7 U.S.C. 3103)); or 

21 ‘‘(C) cooperating forestry school (as defined 

22 in that section).’’. 

23 (e) EFFECTIVE DATE.—The amendments made by sub24 sections (a), (b), and (d)(2) take effect on October 1, 2013. 
924 

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1 SEC. 7403. RESEARCH FACILITIES ACT. 

2 Section 6(a) of the Research Facilities Act (7 U.S.C. 

3 390d(a)) is amended by striking ‘‘2012’’ and inserting 

4 ‘‘2018’’. 

5 SEC. 7404. COMPETITIVE, SPECIAL, AND FACILITIES RE6 SEARCH GRANT ACT. 

7 Section 2 of the Competitive, Special, and Facilities 

8 Research Grant Act (7 U.S.C. 450i) is amended— 

9 (1) in subsection (b)(11)(A)— 

10 (A) in the matter preceding clause (i), by 

11 striking ‘‘2012’’ and inserting ‘‘2018’’; and 

12 (B) in clause (i), by striking ‘‘integrated re13 search’’ and all that follows through ‘‘; and’’ and 

14 inserting ‘‘integrated research, extension, and 

15 education activities; and’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(l) STREAMLINING GRANT APPLICATION PROCESS.— 

18 Not later than 1 year after the date of enactment of this 

19 subsection, the Secretary shall submit to Congress a report 

20 that includes— 

21 ‘‘(1) an analysis of barriers that exist in the 

22 competitive grants process administered by the Na23 tional Institute of Food and Agriculture that prevent 

24 eligible institutions and organizations with limited 

25 institutional capacity from successfully applying and 

26 competing for competitive grants; and 
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† HR 2642 EAS 

1 ‘‘(2) specific recommendations for future steps 

2 that the Department can take to streamline the com3 petitive grants application process so as to remove the 

4 barriers and increase the success rates of applicants 

5 described in paragraph (1).’’. 

6 SEC. 7405. ENHANCED USE LEASE AUTHORITY PILOT PRO7 GRAM UNDER DEPARTMENT OF AGRI8 CULTURE REORGANIZATION ACT OF 1994. 

9 Section 308(b)(6) of the Department of Agriculture Re10 organization Act of 1994 (7 U.S.C. 3125a note; Public Law 

11 103–354) is amended by striking subparagraph (A) and in12 serting the following: 

13 ‘‘(A) on September 30, 2018; or’’. 

14 SEC. 7406. RENEWABLE RESOURCES EXTENSION ACT OF 

15 1978. 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 6 

17 of the Renewable Resources Extension Act of 1978 (16 

18 U.S.C. 1675) is amended in the first sentence by striking 

19 ‘‘2012’’ and inserting ‘‘2018’’. 

20 (b) TERMINATION DATE.—Section 8 of the Renewable 

21 Resources Extension Act of 1978 (16 U.S.C. 1671 note; Pub22 lic Law 95–306) is amended by striking ‘‘2012’’ and insert23 ing ‘‘2018’’. 
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† HR 2642 EAS 

1 SEC. 7407. NATIONAL AQUACULTURE ACT OF 1980. 

2 Section 10 of the National Aquaculture Act of 1980 

3 (16 U.S.C. 2809) is amended by striking ‘‘2012’’ each place 

4 it appears and inserting ‘‘2018’’. 

5 SEC. 7408. BEGINNING FARMER AND RANCHER DEVELOP6 MENT PROGRAM UNDER FARM SECURITY AND 

7 RURAL INVESTMENT ACT OF 2002. 

8 Section 7405 of the Farm Security and Rural Invest9 ment Act of 2002 (7 U.S.C. 3319f) is amended— 

10 (1) in subsection (c)(8)— 

11 (A) in subparagraph (B), by striking ‘‘and’’ 

12 at the end; 

13 (B) in subparagraph (C), by striking the 

14 period at the end and inserting ‘‘; and’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(D) beginning farmers and ranchers who 

17 are veterans (as defined in section 101 of title 

18 38, United States Code).’’; and 

19 (2) by redesignating subsection (h) as subsection 

20 (i); 

21 (3) by inserting after subsection (g) the fol22 lowing: 

23 ‘‘(h) STATE GRANTS.— 

24 ‘‘(1) DEFINITION OF ELIGIBLE ENTITY.—In this 

25 subsection, the term ‘eligible entity’ means— 
927 

† HR 2642 EAS 

1 ‘‘(A) an agency of a State or political sub2 division of a State; 

3 ‘‘(B) a national, State, or regional organi4 zation of agricultural producers; and 

5 ‘‘(C) any other entity determined appro6 priate by the Secretary. 

7 ‘‘(2) GRANTS.—The Secretary shall use such 

8 sums as are necessary of funds made available to 

9 carry out this section for each fiscal year under sub10 section (i) to make grants to States, on a competitive 

11 basis, which States shall use the grants to make 

12 grants to eligible entities to establish and improve 

13 farm safety programs at the local level.’’; and 

14 (4) in subsection (i) (as redesignated by para15 graph (2))— 

16 (A) in paragraph (1)— 

17 (i) in the heading, by striking ‘‘FOR

18 FISCAL YEARS 2009 THROUGH 2012’’; 

19 (ii) in subparagraph (A), by striking 

20 ‘‘and’’ at the end; 

21 (iii) in subparagraph (B), by striking 

22 the period at the end and inserting ‘‘; and’’; 

23 and 

24 (iv) by adding at the end the following: 
928 

† HR 2642 EAS 

1 ‘‘(C) $17,000,000 for each of fiscal years 

2 2014 through 2018, to remain available until ex3 pended.’’; 

4 (B) in paragraph (2)— 

5 (i) in the heading, by striking ‘‘FOR

6 FISCAL YEARS 2009 THROUGH 2012’’; and 

7 (ii) striking ‘‘2012’’ and inserting 

8 ‘‘2018’’; and 

9 (C) by striking paragraph (3). 

10 Subtitle E—Food, Conservation, 

11 and Energy Act of 2008 

12 PART I—AGRICULTURAL SECURITY 

13 SEC. 7501. AGRICULTURAL BIOSECURITY COMMUNICATION 

14 CENTER. 

15 Section 14112 of the Food, Conservation, and Energy 

16 Act of 2008 (7 U.S.C. 8912) is amended by striking sub17 section (c) and inserting the following: 

18 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are 

19 authorized to be appropriated to carry out this section— 

20 ‘‘(1) such sums as are necessary for each of fiscal 

21 years 2008 through 2013; and 

22 ‘‘(2) $2,000,000 for each of fiscal years 2014 

23 through 2018.’’. 
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1 SEC. 7502. ASSISTANCE TO BUILD LOCAL CAPACITY IN AG2 RICULTURAL BIOSECURITY PLANNING, PREP3 ARATION, AND RESPONSE. 

4 Section 14113 of the Food, Conservation, and Energy 

5 Act of 2008 (7 U.S.C. 8913) is amended— 

6 (1) in subsection (a)(2)— 

7 (A) by striking ‘‘such sums as may be nec8 essary’’; and 

9 (B) by striking ‘‘subsection’’ and all that 

10 follows and inserting the following: ‘‘subsection— 

11 ‘‘(1) such sums as are necessary for each of fiscal 

12 years 2008 through 2013; and 

13 ‘‘(2) $15,000,000 for each of fiscal years 2014 

14 through 2018.’’; and 

15 (2) in subsection (b)(2), by striking ‘‘is author16 ized to be appropriated to carry out this subsection’’ 

17 and all that follows and inserting the following: ‘‘are 

18 authorized to be appropriated to carry out this sub19 section— 

20 ‘‘(1) $25,000,000 for each of fiscal years 2008 

21 through 2013; and 

22 ‘‘(2) $15,000,000 for each of fiscal years 2014 

23 through 2018.’’. 
930 

† HR 2642 EAS 

1 SEC. 7503. RESEARCH AND DEVELOPMENT OF AGRICUL2 TURAL COUNTERMEASURES. 

3 Section 14121(b) of the Food, Conservation, and En4 ergy Act of 2008 (7 U.S.C. 8921(b)) is amended by striking 

5 ‘‘is authorized to be appropriated to carry out this section’’ 

6 and all that follows and inserting the following: ‘‘are au7 thorized to be appropriated to carry out this section— 

8 ‘‘(1) $50,000,000 for each of fiscal years 2008 

9 through 2013; and 

10 ‘‘(2) $15,000,000 for each of fiscal years 2014 

11 through 2018.’’. 

12 SEC. 7504. AGRICULTURAL BIOSECURITY GRANT PROGRAM. 

13 Section 14122(e) of the Food, Conservation, and En14 ergy Act of 2008 (7 U.S.C. 8922(e)) is amended— 

15 (1) by striking ‘‘such sums as are necessary’’; 

16 and 

17 (2) by striking ‘‘section’’ and all that follows and 

18 inserting the following: ‘‘section— 

19 ‘‘(1) such sums as are necessary for each of fiscal 

20 years 2008 through 2013, to remain available until 

21 expended; and 

22 ‘‘(2) $5,000,000 for each of fiscal years 2014 

23 through 2018, to remain available until expended.’’. 
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1 PART II—MISCELLANEOUS 

2 SEC. 7511. GRAZINGLANDS RESEARCH LABORATORY. 

3 Section 7502 of the Food, Conservation, and Energy 

4 Act of 2008 (Public Law 110–246; 112 Stat. 2019) is 

5 amended by striking ‘‘for the 5-year period beginning on 

6 the date of enactment of this Act’’ and inserting ‘‘until Sep7 tember 30, 2018’’. 

8 SEC. 7512. BUDGET SUBMISSION AND FUNDING. 

9 Section 7506 of the Food, Conservation, and Energy 

10 Act of 2008 (7 U.S.C. 7614c) is amended— 

11 (1) in subsection (a)— 

12 (A) by striking ‘‘(a) DEFINITION OF COM13 PETITIVE PROGRAMS.—In this section, the 

14 term’’; and inserting the following: 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) COMPETITIVE PROGRAMS.—The term’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(2) COVERED PROGRAM.—The term ‘covered 

19 program’ means— 

20 ‘‘(A) each research program carried out by 

21 the Agricultural Research Service or the Eco22 nomic Research Service for which annual appro23 priations are requested in the annual budget 

24 submission of the President; and 

25 ‘‘(B) each competitive program (as defined 

26 in section 251(f)(1) of the Department of Agri-
932 

† HR 2642 EAS 

1 culture Reorganization Act of 1994 (7 U.S.C. 

2 6971(f)(1))) carried out by the National Institute 

3 of Food and Agriculture for which annual ap4 propriations are requested in the annual budget 

5 submission of the President. 

6 ‘‘(3) REQUEST FOR AWARDS.—The term ‘request 

7 for awards’ means a funding announcement published 

8 by the National Institute of Food and Agriculture 

9 that provides detailed information on funding oppor10 tunities at the Institute, including the purpose, eligi11 bility, restriction, focus areas, evaluation criteria, 

12 regulatory information, and instructions on how to 

13 apply for such opportunities.’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(e) ADDITIONAL PRESIDENTIAL BUDGET SUBMISSION

16 REQUIREMENT.— 

17 ‘‘(1) IN GENERAL.—Each year, the President 

18 shall submit to Congress, together with the annual 

19 budget submission of the President, the information 

20 described in paragraph (2) for each funding request 

21 for a covered program. 

22 ‘‘(2) INFORMATION DESCRIBED.—The informa23 tion described in this paragraph includes— 

24 ‘‘(A) baseline information, including with 

25 respect to each covered program— 
933 

† HR 2642 EAS 

1 ‘‘(i) the funding level for the program 

2 for the fiscal year preceding the year the 

3 annual budget submission of the President 

4 is submitted; 

5 ‘‘(ii) the funding level requested in the 

6 annual budget submission of the President, 

7 including any increase or decrease in the 

8 funding level; and 

9 ‘‘(iii) an explanation justifying any 

10 change from the funding level specified in 

11 clause (i) to the level specified in clause (ii); 

12 ‘‘(B) with respect to each covered program 

13 that is carried out by the Economic Research 

14 Service or the Agricultural Research Service, the 

15 location and staff years of the program; 

16 ‘‘(C) the proposed funding levels to be allo17 cated to, and the expected publication date, 

18 scope, and allocation level for, each request for 

19 awards to be published under— 

20 ‘‘(i) each priority area specified in sec21 tion 2(b)(2) of the Competitive, Special, and 

22 Facilities Research Grant Act (7 U.S.C. 

23 450i(b)(2)); 

24 ‘‘(ii) each research and extension 

25 project carried out under section 1621(a) of 
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1 the Food, Agriculture, Conservation, and 

2 Trade Act of 1990 (7 U.S.C. 5811(a)); 

3 ‘‘(iii) each grant awarded under sec4 tion 1672B(a) of the Food, Agriculture, 

5 Conservation, and Trade Act of 1990 (7 

6 U.S.C. 5925b(a)); 

7 ‘‘(iv) each grant awarded under section 

8 412(b) of the Agricultural Research, Exten9 sion, and Education Reform Act of 1998 (7 

10 U.S.C. 7632(b)); and 

11 ‘‘(v) each grant awarded under 

12 7405(c)(1) of the Farm Security and Rural 

13 Investment Act of 2002 (7 U.S.C. 

14 3319f(c)(1)); or 

15 ‘‘(D) any other information the Secretary 

16 determines will increase congressional oversight 

17 with respect to covered programs. 

18 ‘‘(f) REPORT OF THE SECRETARY OF AGRICULTURE.— 

19 Each year on a date that is not later than the date on which 

20 the President submits the annual budget submission, the 

21 Secretary shall submit to Congress a report containing a 

22 description of the agricultural research, extension, and edu23 cation activities carried out by the Federal Government 

24 during the fiscal year that immediately precedes the year 

25 for which the report is submitted, including— 
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1 ‘‘(1) a review of the extent to which those activi2 ties— 

3 ‘‘(A) are duplicative or overlap within the 

4 Department of Agriculture; or 

5 ‘‘(B) are similar to activities carried out 

6 by— 

7 ‘‘(i) other Federal agencies; 

8 ‘‘(ii) the States (including the District 

9 of Columbia, the Commonwealth of Puerto 

10 Rico, and other territories or possessions of 

11 the United States); 

12 ‘‘(iii) institutions of higher education 

13 (as defined in section 101 of the Higher 

14 Education Act of 1965 (20 U.S.C. 1001)); 

15 or 

16 ‘‘(iv) the private sector; and 

17 ‘‘(2) for each report submitted under this section 

18 on or after January 1, 2014, a 5-year projection of 

19 national priorities with respect to agricultural re20 search, extension, and education, taking into account 

21 both domestic and international needs.’’. 

22 SEC. 7513. NATURAL PRODUCTS RESEARCH PROGRAM. 

23 Section 7525 of the Food, Conservation, and Energy 

24 Act of 2008 (7 U.S.C. 5937) is amended by striking sub25 section (e) and inserting the following: 
936 

† HR 2642 EAS 

1 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to carry out this section 

3 $7,000,000 for each of fiscal years 2014 through 2018.’’. 

4 SEC. 7514. SUN GRANT PROGRAM. 

5 (a) IN GENERAL.—Section 7526 of the Food, Conserva6 tion, and Energy Act of 2008 (7 U.S.C. 8114) is amended— 

7 (1) in subsection (a)(4)(B), by striking ‘‘the De8 partment of Energy’’ and inserting ‘‘other appro9 priate Federal agencies (as determined by the Sec10 retary)’’; 

11 (2) in subsection (b)(1)— 

12 (A) in subparagraph (A), by striking ‘‘at 

13 South Dakota State University’’; 

14 (B) in subparagraph (B), by striking ‘‘at 

15 the University of Tennessee at Knoxville’’; 

16 (C) in subparagraph (C), by striking ‘‘at 

17 Oklahoma State University’’; 

18 (D) in subparagraph (D), by striking ‘‘at 

19 Oregon State University’’; 

20 (E) in subparagraph (E), by striking ‘‘at 

21 Cornell University’’; and 

22 (F) in subparagraph (F), by striking ‘‘at 

23 the University of Hawaii’’; 

24 (3) in subsection (c)(1)— 
937 

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1 (A) in subparagraph (B), by striking 

2 ‘‘multistate’’ and all that follows through ‘‘tech3 nology implementation’’ and inserting ‘‘inte4 grated, multistate research, extension, and edu5 cation programs on technology development and 

6 technology implementation’’; 

7 (B) by striking subparagraph (C); and 

8 (C) by redesignating subparagraph (D) as 

9 subparagraph (C); 

10 (4) in subsection (d)— 

11 (A) in paragraph (1)— 

12 (i) by striking ‘‘gasification’’ and in13 serting ‘‘bioproducts’’; and 

14 (ii) by striking ‘‘the Department of 

15 Energy’’ and inserting ‘‘other appropriate 

16 Federal agencies’’; 

17 (B) by striking paragraph (2); 

18 (C) by redesignating paragraphs (3) and 

19 (4) as paragraphs (2) and (3), respectively; and 

20 (D) in paragraph (1), by striking ‘‘in ac21 cordance with paragraph (2)’’; and 

22 (5) in subsection (g), by striking ‘‘2012’’ and in23 serting ‘‘2018’’. 
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1 (b) CONFORMING AMENDMENTS.—Section 7526(f) of 

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

3 8114(f)) is amended— 

4 (1) in paragraph (1), by striking ‘‘subsection 

5 (c)(1)(D)(i)’’ and inserting ‘‘subsection (c)(1)(C)(i)’’; 

6 and 

7 (2) in paragraph (2), by striking ‘‘subsection 

8 (d)(1)’’ and inserting ‘‘subsection (d)’’. 

9 Subtitle F—Miscellaneous 

10 SEC. 7601. FOUNDATION FOR FOOD AND AGRICULTURE RE11 SEARCH. 

12 (a) DEFINITIONS.—In this section: 

13 (1) BOARD.—The term ‘‘Board’’ means the 

14 Board of Directors described in subsection (e). 

15 (2) DEPARTMENT.—The term ‘‘Department’’ 

16 means the Department of Agriculture. 

17 (3) FOUNDATION.—The term ‘‘Foundation’’ 

18 means the Foundation for Food and Agriculture Re19 search established under subsection (b). 

20 (4) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Agriculture. 

22 (b) ESTABLISHMENT.— 

23 (1) IN GENERAL.—The Secretary shall establish 

24 a nonprofit corporation to be known as the ‘‘Founda25 tion for Food and Agriculture Research’’. 
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1 (2) STATUS.—The Foundation shall not be an 

2 agency or instrumentality of the United States Gov3 ernment. 

4 (c) PURPOSES.—The purposes of the Foundation shall 

5 be— 

6 (1) to advance the research mission of the De7 partment by supporting agricultural research activi8 ties focused on addressing key problems of national 

9 and international significance including— 

10 (A) plant health, production, and plant 

11 products; 

12 (B) animal health, production, and prod13 ucts; 

14 (C) food safety, nutrition, and health; 

15 (D) renewable energy, natural resources, 

16 and the environment; 

17 (E) agricultural and food security; 

18 (F) agriculture systems and technology; and 

19 (G) agriculture economics and rural com20 munities; and 

21 (2) to foster collaboration with agricultural re22 searchers from the Federal Government, institutions 

23 of higher education, industry, and nonprofit organi24 zations. 

25 (d) DUTIES.— 
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1 (1) IN GENERAL.—The Foundation shall— 

2 (A) award grants to, or enter into contracts, 

3 memoranda of understanding, or cooperative 

4 agreements with, scientists and entities, which 

5 may include agricultural research agencies in 

6 the Department, university consortia, public-pri7 vate partnerships, institutions of higher edu8 cation, nonprofit organizations, and industry, to 

9 efficiently and effectively advance the goals and 

10 priorities of the Foundation; 

11 (B) in consultation with the Secretary— 

12 (i) identify existing and proposed Fed13 eral intramural and extramural research 

14 and development programs relating to the 

15 purposes of the Foundation described in 

16 subsection (c); and 

17 (ii) coordinate Foundation activities 

18 with those programs so as to minimize du19 plication of existing efforts; 

20 (C) identify unmet and emerging agricul21 tural research needs after reviewing the Road22 map for Agricultural Research, Education and 

23 Extension as required by section 7504 of the 

24 Food, Conservation, and Energy Act of 2008 (7 

25 U.S.C. 7614a); 
941 

† HR 2642 EAS 

1 (D) facilitate technology transfer and re2 lease of information and data gathered from the 

3 activities of the Foundation to the agricultural 

4 research community; 

5 (E) promote and encourage the development 

6 of the next generation of agricultural research 

7 scientists; and 

8 (F) carry out such other activities as the 

9 Board determines to be consistent with the pur10 poses of the Foundation. 

11 (2) AUTHORITY.—Subject to paragraph (3), the 

12 Foundation shall be the sole entity responsible for car13 rying out the duties enumerated in this subsection. 

14 (3) RELATIONSHIP TO OTHER ACTIVITIES.—The 

15 activities described in paragraph (1) shall be supple16 mental to any other activities at the Department and 

17 shall not preempt any authority or responsibility of 

18 the Department under another provision of law. 

19 (e) BOARD OF DIRECTORS.— 

20 (1) ESTABLISHMENT.—The Foundation shall be 

21 governed by a Board of Directors. 

22 (2) COMPOSITION.— 

23 (A) IN GENERAL.—The Board shall be com24 posed of appointed and ex-officio, nonvoting 

25 members. 
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† HR 2642 EAS 

1 (B) EX-OFFICIO MEMBERS.—The ex-officio 

2 members of the Board shall be the following indi3 viduals or designees: 

4 (i) The Secretary. 

5 (ii) The Under Secretary of Agri6 culture for Research, Education, and Eco7 nomics. 

8 (iii) The Administrator of the Agricul9 tural Research Service. 

10 (iv) The Director of the National Insti11 tute of Food and Agriculture. 

12 (v) The Director of the National 

13 Science Foundation. 

14 (C) APPOINTED MEMBERS.— 

15 (i) IN GENERAL.—The ex-officio mem16 bers of the Board under subparagraph (B) 

17 shall, by majority vote, appoint to the 

18 Board 15 individuals, of whom— 

19 (I) 8 shall be selected from a list 

20 of candidates to be provided by the Na21 tional Academy of Sciences; and 

22 (II) 7 shall be selected from lists 

23 of candidates provided by industry. 

24 (ii) REQUIREMENTS.— 
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1 (I) EXPERTISE.—The ex-officio 

2 members shall ensure that a majority 

3 of the members of the Board have ac4 tual experience in agricultural research 

5 and, to the extent practicable, represent 

6 diverse sectors of agriculture. 

7 (II) LIMITATION.—No employee of 

8 the Federal Government may serve as 

9 an appointed member of the Board 

10 under this subparagraph. 

11 (III) NOT FEDERAL EMPLOY12 MENT.—Appointment to the Board 

13 under this subparagraph shall not con14 stitute Federal employment. 

15 (iii) AUTHORITY.—All appointed mem16 bers of the Board shall be voting members. 

17 (D) CHAIR.—The Board shall, from among 

18 the members of the Board, designate an indi19 vidual to serve as Chair of the Board. 

20 (3) INITIAL MEETING.—Not later than 60 days 

21 after the date of enactment of this Act, the Secretary 

22 shall convene a meeting of the ex-officio members of 

23 the Board— 

24 (A) to incorporate the Foundation; and 
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† HR 2642 EAS 

1 (B) to appoint the members of the Board in 

2 accordance with paragraph (2)(C)(i). 

3 (4) DUTIES.— 

4 (A) IN GENERAL.—The Board shall— 

5 (i) establish bylaws for the Foundation 

6 that, at a minimum, include— 

7 (I) policies for the selection of fu8 ture Board members, officers, employ9 ees, agents, and contractors of the 

10 Foundation; 

11 (II) policies, including ethical 

12 standards, for— 

13 (aa) the acceptance, solicita14 tion, and disposition of donations 

15 and grants to the Foundation; 

16 and 

17 (bb) the disposition of assets 

18 of the Foundation, including ap19 propriate limits on the ability of 

20 donors to designate, by stipulation 

21 or restriction, the use or recipient 

22 of donated funds; 

23 (III) policies that would subject 

24 all employees, fellows, trainees, and 

25 other agents of the Foundation (includ-
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† HR 2642 EAS 

1 ing members of the Board) to the con2 flict of interest standards under section 

3 208 of title 18, United States Code; 

4 (IV) policies for writing, editing, 

5 printing, publishing, and vending of 

6 books and other materials; 

7 (V) policies for the conduct of the 

8 general operations of the Foundation, 

9 including a cap on administrative ex10 penses for recipients of a grant, con11 tract, or cooperative agreement from 

12 the Foundation; and 

13 (VI) specific duties for the Execu14 tive Director; 

15 (ii) prioritize and provide overall di16 rection for the activities of the Foundation; 

17 (iii) evaluate the performance of the 

18 Executive Director; and 

19 (iv) carry out any other necessary ac20 tivities regarding the Foundation. 

21 (B) ESTABLISHMENT OF BYLAWS.—In es22 tablishing bylaws under subparagraph (A)(i), the 

23 Board shall ensure that the bylaws do not— 

24 (i) reflect unfavorably on the ability of 

25 the Foundation to carry out the duties of 
946 

† HR 2642 EAS 

1 the Foundation in a fair and objective man2 ner; or 

3 (ii) compromise, or appear to com4 promise, the integrity of any governmental 

5 agency or program, or any officer or em6 ployee employed by or involved in a govern7 mental agency or program. 

8 (5) TERMS AND VACANCIES.— 

9 (A) TERMS.— 

10 (i) IN GENERAL.—The term of each 

11 member of the Board appointed under para12 graph (2)(C) shall be 5 years. 

13 (ii) PARTIAL TERMS.—If a member of 

14 the Board does not serve the full term appli15 cable under clause (i), the individual ap16 pointed to fill the resulting vacancy shall be 

17 appointed for the remainder of the term of 

18 the predecessor of the individual. 

19 (iii) TRANSITION.—A member of the 

20 Board may continue to serve after the expi21 ration of the term of the member until a 

22 successor is appointed. 

23 (B) VACANCIES.—Any vacancy in the mem24 bership of the Board shall be filled in the manner 

25 in which the original position was made and 
947 

† HR 2642 EAS 

1 shall not affect the power of the remaining mem2 bers to execute the duties of the Board. 

3 (6) COMPENSATION.—Members of the Board may 

4 not receive compensation for service on the Board but 

5 may be reimbursed for travel, subsistence, and other 

6 necessary expenses incurred in carrying out the duties 

7 of the Board. 

8 (7) MEETINGS AND QUORUM.—A majority of the 

9 members of the Board shall constitute a quorum for 

10 purposes of conducting business of the Board. 

11 (f) ADMINISTRATION.— 

12 (1) EXECUTIVE DIRECTOR.— 

13 (A) IN GENERAL.—The Board shall hire an 

14 Executive Director who shall carry out such du15 ties and responsibilities as the Board may pre16 scribe. 

17 (B) SERVICE.—The Executive Director shall 

18 serve at the pleasure of the Board. 

19 (2) ADMINISTRATIVE POWERS.— 

20 (A) IN GENERAL.—In carrying out this sec21 tion, the Board, acting through the Executive Di22 rector, may— 

23 (i) adopt, alter, and use a corporate 

24 seal, which shall be judicially noticed; 
948 

† HR 2642 EAS 

1 (ii) hire, promote, compensate, and 

2 discharge 1 or more officers, employees, and 

3 agents, as may be necessary, and define the 

4 duties of the officers, employees, and agents; 

5 (iii) solicit and accept any funds, gifts, 

6 grants, devises, or bequests of real or per7 sonal property made to the Foundation, in8 cluding such support from private entities; 

9 (iv) prescribe the manner in which— 

10 (I) real or personal property of 

11 the Foundation is acquired, held, and 

12 transferred; 

13 (II) general operations of the 

14 Foundation are to be conducted; and 

15 (III) the privileges granted to the 

16 Board by law are exercised and en17 joyed; 

18 (v) with the consent of the applicable 

19 executive department or independent agen20 cy, use the information, services, and facili21 ties of the department or agency in carrying 

22 out this section; 

23 (vi) enter into contracts with public 

24 and private organizations for the writing, 
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† HR 2642 EAS 

1 editing, printing, and publishing of books 

2 and other material; 

3 (vii) hold, administer, invest, and 

4 spend any gift, devise, or bequest of real or 

5 personal property made to the Foundation; 

6 (viii) enter into such contracts, leases, 

7 cooperative agreements, and other trans8 actions as the Board considers appropriate 

9 to conduct the activities of the Foundation; 

10 (ix) modify or consent to the modifica11 tion of any contract or agreement to which 

12 the Foundation is a party or in which the 

13 Foundation has an interest; 

14 (x) take such action as may be nec15 essary to obtain patents and licenses for de16 vices and procedures developed by the Foun17 dation and employees of the Foundation; 

18 (xi) sue and be sued in the corporate 

19 name of the Foundation, and complain and 

20 defend in courts of competent jurisdiction; 

21 (xii) appoint other groups of advisors 

22 as may be determined necessary to carry 

23 out the functions of the Foundation; and 

24 (xiii) exercise such other incidental 

25 powers as are necessary to carry out the du-
950 

† HR 2642 EAS 

1 ties and functions of the Foundation in ac2 cordance with this section. 

3 (B) LIMITATION.—No appointed member of 

4 the Board or officer or employee of the Founda5 tion or of any program established by the Foun6 dation (other than ex-officio members of the 

7 Board) shall exercise administrative control over 

8 any Federal employee. 

9 (3) RECORDS.— 

10 (A) AUDITS.—The Foundation shall— 

11 (i) provide for annual audits of the fi12 nancial condition of the Foundation; and 

13 (ii) make the audits, and all other 

14 records, documents, and other papers of the 

15 Foundation, available to the Secretary and 

16 the Comptroller General of the United 

17 States for examination or audit. 

18 (B) REPORTS.— 

19 (i) ANNUAL REPORT ON FOUNDA20 TION.— 

21 (I) IN GENERAL.—Not later than 

22 5 months following the end of each fis23 cal year, the Foundation shall publish 

24 a report for the preceding fiscal year 

25 that includes— 
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1 (aa) a description of Foun2 dation activities, including ac3 complishments; and 

4 (bb) a comprehensive state5 ment of the operations and finan6 cial condition of the Foundation. 

7 (II) FINANCIAL CONDITION.— 

8 Each report under subclause (I) shall 

9 include a description of all gifts or 

10 grants to the Foundation of real or 

11 personal property or money, which 

12 shall include— 

13 (aa) the source of the gifts or 

14 grants; and 

15 (bb) any restrictions on the 

16 purposes for which the gift or 

17 grant may be used. 

18 (III) AVAILABILITY.—The Foun19 dation shall— 

20 (aa) make copies of each re21 port submitted under subclause 

22 (I) available for public inspection; 

23 and 
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† HR 2642 EAS 

1 (bb) on request, provide a 

2 copy of the report to any indi3 vidual. 

4 (IV) PUBLIC MEETING.—The 

5 Board shall hold an annual public 

6 meeting to summarize the activities of 

7 the Foundation. 

8 (ii) GRANT REPORTING.—Any recipi9 ent of a grant under subsection (d)(1)(A) 

10 shall provide the Foundation with a report 

11 at the conclusion of any research or studies 

12 conducted the describes the results of the re13 search or studies, including any data gen14 erated. 

15 (4) INTEGRITY.— 

16 (A) IN GENERAL.—To ensure integrity in 

17 the operations of the Foundation, the Board shall 

18 develop and enforce procedures relating to stand19 ards of conduct, financial disclosure statements, 

20 conflict of interest (including recusal and waiver 

21 rules), audits, and any other matters determined 

22 appropriate by the Board. 

23 (B) FINANCIAL CONFLICTS OF INTEREST.— 

24 Any individual who is an officer, employee, or 

25 member of the Board is prohibited from any par-
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1 ticipation in deliberations by the Foundation of 

2 a matter that would directly or predictably affect 

3 any financial interest of— 

4 (i) the individual; 

5 (ii) a relative (as defined in section 

6 109 of the Ethics in Government Act of 

7 1978 (5 U.S.C. App.)) of that individual; or 

8 (iii) a business organization or other 

9 entity in which the individual has an inter10 est, including an organization or other enti11 ty with which the individual is negotiating 

12 employment. 

13 (5) INTELLECTUAL PROPERTY.—The Board shall 

14 adopt written standards to govern ownership of any 

15 intellectual property rights derived from the collabo16 rative efforts of the Foundation. 

17 (6) LIABILITY.—The United States shall not be 

18 liable for any debts, defaults, acts, or omissions of the 

19 Foundation nor shall the full faith and credit of the 

20 United States extend to any obligations of the Foun21 dation. 

22 (g) FUNDS.— 

23 (1) MANDATORY FUNDING.— 

24 (A) IN GENERAL.—On October 1, 2013, of 

25 the funds of the Commodity Credit Corporation, 
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† HR 2642 EAS 

1 the Secretary shall transfer to the Foundation to 

2 carry out this section $200,000,000, to remain 

3 available until expended under the conditions de4 scribed in subparagraph (B). 

5 (B) CONDITIONS ON EXPENDITURE.—The 

6 Foundation may use the funds made available 

7 under subparagraph (A) to carry out the pur8 poses of the Foundation only to the extent that 

9 the Foundation secures an equal amount of non10 Federal matching funds for each expenditure. 

11 (C) PROHIBITION ON CONSTRUCTION.— 

12 None of the funds made available under subpara13 graph (A) may be used for construction. 

14 (2) SEPARATION OF FUNDS.—The Executive Di15 rector shall ensure that any funds received under 

16 paragraph (1) are held in separate accounts from 

17 funds received from nongovernmental entities as de18 scribed in subsection (f)(2)(A)(iii). 

19 SEC. 7602. AGRICULTURAL AND FOOD LAW RESEARCH, 

20 LEGAL TOOLS, AND INFORMATION. 

21 (a) FINDINGS.—Congress finds that— 

22 (1) the farms, ranches, and forests of the United 

23 States are impacted by a complex and rapidly evolv24 ing web of competition and international, Federal, 

25 State, and local laws (including regulations); 
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1 (2) objective, scholarly, and authoritative agri2 cultural and food law research, legal tools, and infor3 mation helps the farm, ranch, and forestry commu4 nity contribute to the strength of the United States 

5 through improved conservation, environmental protec6 tion, job creation, economic development, renewable 

7 energy production, outdoor recreational opportunities, 

8 and increased and diversified local and regional sup9 plies of food, fiber, and fuel; and 

10 (3) the vast agricultural community of the 

11 United States, including farmers, ranchers, foresters, 

12 attorneys, policymakers, and extension personnel, 

13 need access to agricultural and food law research and 

14 information provided by an objective, scholarly, and 

15 neutral source. 

16 (b) PARTNERSHIPS.—The Secretary, acting through 

17 the National Agricultural Library, shall support the dis18 semination of objective, scholarly, and authoritative agri19 cultural and food law research, legal tools, and information 

20 by entering into cooperative agreements with institutions 

21 of higher education that on the date of enactment of this 

22 Act are carrying out objective programs for research, legal 

23 tools, and information in agricultural and food law. 

24 (c) AUTHORIZATION OF APPROPRIATIONS.—For each 

25 fiscal year, the Secretary may use not more than $5,000,000 
956 

† HR 2642 EAS 

1 of the amounts made available to the National Agricultural 

2 Library to carry out this section. 

3 TITLE VIII—FORESTRY 

4 Subtitle A—Repeal of Certain 

5 Forestry Programs 

6 SEC. 8001. FOREST LAND ENHANCEMENT PROGRAM. 

7 (a) REPEAL.—Section 4 of the Cooperative Forestry 

8 Assistance Act of 1978 (16 U.S.C. 2103) is repealed. 

9 (b) CONFORMING AMENDMENT.—Section 8002 of the 

10 Farm Security and Rural Investment Act of 2002 (Public 

11 Law 107–171; 16 U.S.C. 2103 note) is amended by striking 

12 subsection (a). 

13 (c) EFFECTIVE DATE.—The amendments made by this 

14 section shall take effect on October 1, 2013. 

15 SEC. 8002. HISPANIC-SERVING INSTITUTION AGRICUL16 TURAL LAND NATIONAL RESOURCES LEADER17 SHIP PROGRAM. 

18 (a) REPEAL.—Section 8402 of the Food, Conservation, 

19 and Energy Act of 2008 (16 U.S.C. 1649a) is repealed. 

20 (b) EFFECTIVE DATE.—The amendment made by this 

21 section shall take effect on October 1, 2013. 

22 SEC. 8003. TRIBAL WATERSHED FORESTRY ASSISTANCE 

23 PROGRAM. 

24 (a) REPEAL.—Section 303 of the Healthy Forests Res25 toration Act of 2003 (16 U.S.C. 6542) is repealed. 
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† HR 2642 EAS 

1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall take effect on October 1, 2013. 

3 Subtitle B—Reauthorization of Co4 operative Forestry Assistance Act 

5 of 1978 Programs 

6 SEC. 8101. STATE-WIDE ASSESSMENT AND STRATEGIES FOR 

7 FOREST RESOURCES. 

8 Section 2A(f)(1) of the Cooperative Forestry Assistance 

9 Act of 1978 (16 U.S.C. 2101a(f)(1)) is amended by striking 

10 ‘‘2012’’ and inserting ‘‘2018’’. 

11 Subtitle C—Reauthorization of 

12 Other Forestry-Related Laws 

13 SEC. 8201. RURAL REVITALIZATION TECHNOLOGIES. 

14 Section 2371(d)(2) of the Food, Agriculture, Conserva15 tion, and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) is 

16 amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 

17 SEC. 8202. OFFICE OF INTERNATIONAL FORESTRY. 

18 Section 2405(d) of the Global Climate Change Preven19 tion Act of 1990 (7 U.S.C. 6704(d)) is amended by striking 

20 ‘‘2012’’ and inserting ‘‘2018’’. 

21 SEC. 8203. INSECT AND DISEASE INFESTATION. 

22 Title VI of the Healthy Forests Restoration Act of 2003 

23 (16 U.S.C. 6591 et seq.) is amended by adding at the end 

24 the following: 
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1 ‘‘SEC. 602. DESIGNATION OF TREATMENT AREAS. 

2 ‘‘(a) DEFINITION OF DECLINING FOREST HEALTH.— 

3 In this section, the term ‘declining forest health’ means a 

4 forest that is experiencing— 

5 ‘‘(1) substantially increased tree mortality due to 

6 insect or disease infestation; or 

7 ‘‘(2) dieback due to infestation or defoliation by 

8 insects or disease. 

9 ‘‘(b) DESIGNATION OF TREATMENT AREAS.— 

10 ‘‘(1) INITIAL AREAS.—Not later than 60 days 

11 after the date of enactment of the Agriculture Reform, 

12 Food, and Jobs Act of 2013, the Secretary shall, if re13 quested by the Governor of the State, designate as 

14 part of an insect and disease treatment program 1 or 

15 more subwatersheds (sixth-level hydrologic units, ac16 cording to the System of Hydrologic Unit Codes of the 

17 United States Geological Survey) in at least 1 na18 tional forest in each State that is experiencing an in19 sect or disease epidemic. 

20 ‘‘(2) ADDITIONAL AREAS.—After the end of the 

21 60-day period described in paragraph (1), the Sec22 retary may designate additional subwatersheds under 

23 this section as needed to address insect or disease 

24 threats. 

25 ‘‘(c) REQUIREMENTS.—To be designated a subwater26 shed under subsection (b), the subwatershed shall be— 
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† HR 2642 EAS 

1 ‘‘(1) experiencing declining forest health, based 

2 on annual forest health surveys conducted by the Sec3 retary; 

4 ‘‘(2) at risk of experiencing substantially in5 creased tree mortality over the next 15 years due to 

6 insect or disease infestation, based on the most recent 

7 National Insect and Disease Risk Map published by 

8 the Forest Service; or 

9 ‘‘(3) in an area in which the risk of hazard trees 

10 poses an imminent risk to public infrastructure, 

11 health, or safety. 

12 ‘‘(d) TREATMENT OF AREAS.— 

13 ‘‘(1) IN GENERAL.—The Secretary may carry out 

14 priority projects on Federal land in the subwatersheds 

15 designated under subsection (b) to reduce the risk or 

16 extent of, or increase the resilience to, insect or dis17 ease infestation in the subwatersheds. 

18 ‘‘(2) AUTHORITY.—Any project under paragraph 

19 (1) for which a public notice to initiate scoping is 

20 issued on or before September 30, 2018, may be car21 ried out in accordance with subsections (b), (c), and 

22 (d) of section 102, and sections 104, 105, and 106. 

23 ‘‘(3) EFFECT.—Projects carried out under this 

24 subsection shall be considered authorized hazardous 
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† HR 2642 EAS 

1 fuel reduction projects for purposes of the authorities 

2 described in paragraph (2). 

3 ‘‘(4) REPORT.—Not later than September 30, 

4 2018, the Secretary shall issue a report on actions 

5 taken to carry out this subsection, including— 

6 ‘‘(A) an evaluation of the progress towards 

7 project goals; and 

8 ‘‘(B) recommendations for modifications to 

9 the projects and management treatments. 

10 ‘‘(e) TREE RETENTION.—The Secretary shall carry out 

11 projects under subsection (d) in a manner that maximizes 

12 the retention of old-growth and large trees, as appropriate 

13 for the forest type, to the extent that the trees promote stands 

14 that are resilient to insects and disease. 

15 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to carry out this section 

17 $200,000,000 for each of fiscal years 2014 through 2018.’’. 

18 SEC. 8204. STEWARDSHIP END RESULT CONTRACTING 

19 PROJECTS. 

20 (a) IN GENERAL.—Title VI of the Healthy Forests Res21 toration Act of 2003 (16 U.S.C. 6591) (as amended by sec22 tion 8203) is amended by adding at the end the following: 

23 ‘‘SEC. 603. STEWARDSHIP END RESULT CONTRACTING 

24 PROJECTS. 

25 ‘‘(a) DEFINITIONS.—In this section: 
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1 ‘‘(1) CHIEF.—The term ‘Chief’ means the Chief 

2 of the Forest Service. 

3 ‘‘(2) DIRECTOR.—The term ‘Director’ means the 

4 Director of the Bureau of Land Management. 

5 ‘‘(b) PROJECTS.—The Chief and the Director, via 

6 agreement or contract as appropriate, may enter into stew7 ardship contracting projects with private persons or other 

8 public or private entities to perform services to achieve land 

9 management goals for the national forests and the public 

10 lands that meet local and rural community needs. 

11 ‘‘(c) LAND MANAGEMENT GOALS.—The land manage12 ment goals of a project under subsection (b) may include— 

13 ‘‘(1) road and trail maintenance or obliteration 

14 to restore or maintain water quality; 

15 ‘‘(2) soil productivity, habitat for wildlife and 

16 fisheries, or other resource values; 

17 ‘‘(3) setting of prescribed fires to improve the 

18 composition, structure, condition, and health of 

19 stands or to improve wildlife habitat; 

20 ‘‘(4) removing vegetation or other activities to 

21 promote healthy forest stands, reduce fire hazards, or 

22 achieve other land management objectives; 

23 ‘‘(5) watershed restoration and maintenance; 

24 ‘‘(6) restoration and maintenance of wildlife and 

25 fish; or 
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1 ‘‘(7) control of noxious and exotic weeds and re2 establishing native plant species. 

3 ‘‘(d) AGREEMENTS OR CONTRACTS.— 

4 ‘‘(1) PROCUREMENT PROCEDURE.—A source for 

5 performance of an agreement or contract under sub6 section (b) shall be selected on a best-value basis, in7 cluding consideration of source under other public 

8 and private agreements or contracts. 

9 ‘‘(2) CONTRACT FOR SALE OF PROPERTY.—A 

10 contract entered into under this section may, at the 

11 discretion of the Secretary of Agriculture, be consid12 ered a contract for the sale of property under such 

13 terms as the Secretary may prescribe without regard 

14 to any other provision of law. 

15 ‘‘(3) TERM.— 

16 ‘‘(A) IN GENERAL.—Except as provided in 

17 subparagraph (B), the Chief and the Director 

18 may enter into a contract under subsection (b) 

19 in accordance with section 3903 of title 41, 

20 United States Code. 

21 ‘‘(B) MAXIMUM.—The period of the contract 

22 under subsection (b) may exceed 5 years but may 

23 not exceed 10 years. 

24 ‘‘(4) OFFSETS.— 
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1 ‘‘(A) IN GENERAL.—The Chief and the Di2 rector may apply the value of timber or other 

3 forest products removed as an offset against the 

4 cost of services received under the agreement or 

5 contract described in subsection (b). 

6 ‘‘(B) METHODS OF APPRAISAL.—The value 

7 of timber or other forest products used as an off8 set under subparagraph (A)— 

9 ‘‘(i) shall be determined using appro10 priate methods of appraisal commensurate 

11 with the quantity of products to be removed; 

12 and 

13 ‘‘(ii) may— 

14 ‘‘(I) be determined using a unit of 

15 measure appropriate to the contracts; 

16 and 

17 ‘‘(II) may include valuing prod18 ucts on a per-acre basis. 

19 ‘‘(5) RELATION TO OTHER LAWS.—Notwith20 standing subsections (d) and (g) of section 14 of the 

21 National Forest Management Act of 1976 (16 U.S.C. 

22 472a), the Chief may enter into an agreement or con23 tract under subsection (b). 

24 ‘‘(6) CONTRACTING OFFICER.—Notwithstanding 

25 any other provision of law, the Secretary or the Sec-
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† HR 2642 EAS 

1 retary of the Interior may determine the appropriate 

2 contracting officer to enter into and administer an 

3 agreement or contract under subsection (b). 

4 ‘‘(e) RECEIPTS.— 

5 ‘‘(1) IN GENERAL.—The Chief and the Director 

6 may collect monies from an agreement or contract 

7 under subsection (b) if the collection is a secondary 

8 objective of negotiating the contract that will best 

9 achieve the purposes of this section. 

10 ‘‘(2) USE.—Monies from an agreement or con11 tract under subsection (b)— 

12 ‘‘(A) may be retained by the Chief and the 

13 Director; and 

14 ‘‘(B) shall be available for expenditure with15 out further appropriation at the project site from 

16 which the monies are collected or at another 

17 project site. 

18 ‘‘(3) RELATION TO OTHER LAWS.— 

19 ‘‘(A) IN GENERAL.—Notwithstanding any 

20 other provision of law, the value of services re21 ceived by the Chief or the Director under a stew22 ardship contract project conducted under this 

23 section, and any payments made or resources 

24 provided by the contractor, Chief, or Director 
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1 shall not be considered monies received from the 

2 National Forest System or the public lands. 

3 ‘‘(B) KNUTSON-VANDERBERG ACT.—The Act 

4 of June 9, 1930 (commonly known as the 

5 ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et 

6 seq.) shall not apply to any agreement or con7 tract under subsection (b). 

8 ‘‘(f) COSTS OF REMOVAL.—Notwithstanding the fact 

9 that a contractor did not harvest the timber, the Chief may 

10 collect deposits from a contractor covering the costs of re11 moval of timber or other forest products under— 

12 ‘‘(1) the Act of August 11, 1916 (16 U.S.C. 490); 

13 and 

14 ‘‘(2) the Act of June 30, 1914 (16 U.S.C. 498). 

15 ‘‘(g) PERFORMANCE AND PAYMENT GUARANTEES.— 

16 ‘‘(1) IN GENERAL.—The Chief and the Director 

17 may require performance and payment bonds under 

18 sections 28.103–2 and 28.103–3 of the Federal Acqui19 sition Regulation, in an amount that the contracting 

20 officer considers sufficient to protect the investment in 

21 receipts by the Federal Government generated by the 

22 contractor from the estimated value of the forest prod23 ucts to be removed under a contract under subsection 

24 (b). 
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1 ‘‘(2) EXCESS OFFSET VALUE.—If the offset value 

2 of the forest products exceeds the value of the resource 

3 improvement treatments, the Chief and the Director 

4 may— 

5 ‘‘(A) collect any residual receipts under the 

6 Act of June 9, 1930 (commonly known as the 

7 ‘Knutson-Vanderberg Act’) (16 U.S.C. 576 et 

8 seq.); and 

9 ‘‘(B) apply the excess to other authorized 

10 stewardship projects. 

11 ‘‘(h) MONITORING AND EVALUATION.— 

12 ‘‘(1) IN GENERAL.—The Chief and the Director 

13 shall establish a multiparty monitoring and evalua14 tion process that accesses the stewardship contracting 

15 projects conducted under this section. 

16 ‘‘(2) PARTICIPANTS.—Other than the Chief and 

17 Director, participants in the process described in 

18 paragraph (1) may include— 

19 ‘‘(A) any cooperating governmental agen20 cies, including tribal governments; and 

21 ‘‘(B) any other interested groups or individ22 uals. 

23 ‘‘(i) REPORTING.—Not later than 1 year after the date 

24 of enactment of this section, and annually thereafter, the 

25 Chief and the Director shall report to the Committee on Ag-
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1 riculture, Nutrition, and Forestry of the Senate and the 

2 Committee on Agriculture of the House of Representatives 

3 on— 

4 ‘‘(1) the status of development, execution, and 

5 administration of agreements or contracts under sub6 section (b); 

7 ‘‘(2) the specific accomplishments that have re8 sulted; and 

9 ‘‘(3) the role of local communities in the develop10 ment of agreements or contract plans.’’. 

11 (b) CONFORMING AMENDMENT.—Section 347 of the 

12 Department of the Interior and Related Agencies Appro13 priations Act, 1999 (16 U.S.C. 2104 note; Public Law 105– 

14 277) is repealed. 

15 SEC. 8205. HEALTHY FORESTS RESERVE PROGRAM. 

16 (a) DEFINITION OF ACREAGE OWNED BY INDIAN

17 TRIBES.—Section 502(e)(3) of the Healthy Forests Restora18 tion Act (16 U.S.C. 6572(e)(3)) is amended— 

19 (1) in subparagraph (C), by striking ‘‘subpara20 graphs (A) and (B)’’ and inserting ‘‘clauses (i) and 

21 (ii)’’; 

22 (2) by redesignating subparagraphs (A) through 

23 (C) as clauses (i) through (iii), respectively, and in24 denting appropriately; and 
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1 (3) by striking ‘‘In the case of’’ and inserting the 

2 following: 

3 ‘‘(A) DEFINITION OF ACREAGE OWNED BY

4 INDIAN TRIBES.—In this paragraph, the term 

5 ‘acreage owned by Indian tribes’ includes— 

6 ‘‘(i) land that is held in trust by the 

7 United States for Indian tribes or indi8 vidual Indians; 

9 ‘‘(ii) land, the title to which is held by 

10 Indian tribes or individual Indians subject 

11 to Federal restrictions against alienation or 

12 encumbrance; 

13 ‘‘(iii) land that is subject to rights of 

14 use, occupancy, and benefit of certain In15 dian tribes; 

16 ‘‘(iv) land that is held in fee title by 

17 an Indian tribe; or 

18 ‘‘(v) land that is owned by a native 

19 corporation formed under section 17 of the 

20 Act of June 18, 1934 (commonly known as 

21 the ‘Indian Reorganization Act’) (25 U.S.C. 

22 477) or section 8 of the Alaska Native 

23 Claims Settlement Act (43 U.S.C. 1607); or 

24 ‘‘(vi) a combination of 1 or more types 

25 of land described in clauses (i) through (v). 
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1 ‘‘(B) ENROLLMENT OF ACREAGE.—In the 

2 case of’’. 

3 (b) CHANGE IN FUNDING SOURCE FOR HEALTHY FOR4 ESTS RESERVE PROGRAM.—Section 508 of the Healthy 

5 Forests Restoration Act of 2003 (16 U.S.C. 6578) is amend6 ed— 

7 (1) in subsection (a), by striking ‘‘IN GENERAL’’ 

8 and inserting ‘‘FISCAL YEARS 2009 THROUGH 2013’’; 

9 (2) by redesignating subsection (b) as subsection 

10 (d); and 

11 (3) by inserting after subsection (a) the fol12 lowing: 

13 ‘‘(b) FISCAL YEARS 2014 THROUGH 2018.—There is 

14 authorized to be appropriated to the Secretary of Agri15 culture to carry out this section $9,750,000 for each of fiscal 

16 years 2014 through 2018. 

17 ‘‘(c) ADDITIONAL SOURCE OF FUNDS.—In addition to 

18 funds appropriated pursuant to the authorization of appro19 priations in subsection (b) for a fiscal year, the Secretary 

20 may use such amount of the funds appropriated for that 

21 fiscal year to carry out the Soil Conservation and Domestic 

22 Allotment Act (16 U.S.C. 590a et seq.) as the Secretary de23 termines necessary to cover the cost of technical assistance, 

24 management, and enforcement responsibilities for land en-
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1 rolled in the healthy forests reserve program pursuant to 

2 subsections (a) and (b) of section 504.’’. 

3 Subtitle D—Miscellaneous 

4 Provisions 

5 SEC. 8301. MCINTIRE-STENNIS COOPERATIVE FORESTRY 

6 ACT. 

7 (a) 1890 WAIVERS.—Section 4 of Public Law 87–788 

8 (commonly known as the ‘‘McIntire-Stennis Cooperative 

9 Forestry Act’’) (16 U.S.C. 582a–3) is amended by inserting 

10 ‘‘The matching funds requirement shall not be applicable 

11 to eligible 1890 Institutions (as defined in section 2 of the 

12 Agricultural Research, Extension, and Education Reform 

13 Act of 1998 (7 U.S.C. 7601)) if the allocation is below 

14 $200,000.’’ before ‘‘The Secretary is authorized’’ in the sec15 ond sentence. 

16 (b) PARTICIPATION.—Section 8 of Public Law 87–788 

17 (commonly known as the ‘‘McIntire-Stennis Cooperative 

18 Forestry Act’’) (16 U.S.C. 582a–7) is amended by inserting 

19 ‘‘the Federated States of Micronesia, American Samoa, the 

20 Northern Mariana Islands, the District of Columbia,’’ be21 fore ‘‘and Guam’’. 

22 (c) EFFECTIVE DATE.—The amendments made by this 

23 section take effect on October 1, 2013. 
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1 SEC. 8302. REVISION OF STRATEGIC PLAN FOR FOREST IN2 VENTORY AND ANALYSIS. 

3 (a) REVISION REQUIRED.—Not later than 180 days 

4 after the date of enactment of this Act, the Secretary of Ag5 riculture shall revise the strategic plan for forest inventory 

6 and analysis initially prepared pursuant to section 3(e) of 

7 the Forest and Rangeland Renewable Resources Research 

8 Act of 1978 (16 U.S.C. 1642(e)) to address the requirements 

9 imposed by subsection (b). 

10 (b) ELEMENTS OF REVISED STRATEGIC PLAN.—In re11 vising the strategic plan, the Secretary of Agriculture shall 

12 describe in detail the organization, procedures, and funding 

13 needed to achieve each of the following: 

14 (1) Complete the transition to a fully annualized 

15 forest inventory program and include inventory and 

16 analysis of interior Alaska. 

17 (2) Implement an annualized inventory of trees 

18 in urban settings, including the status and trends of 

19 trees and forests, and assessments of their ecosystem 

20 services, values, health, and risk to pests and diseases. 

21 (3) Report information on renewable biomass 

22 supplies and carbon stocks at the local, State, re23 gional, and national level, including by ownership 

24 type. 

25 (4) Engage State foresters and other users of in26 formation from the forest inventory and analysis in 
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1 reevaluating the list of core data variables collected on 

2 forest inventory and analysis plots with an emphasis 

3 on demonstrated need. 

4 (5) Improve the timeliness of the timber product 

5 output program and accessibility of the annualized 

6 information on that database. 

7 (6) Foster greater cooperation among the forest 

8 inventory and analysis program, research station 

9 leaders, and State foresters and other users of infor10 mation from the forest inventory and analysis. 

11 (7) Availability of and access to non-Federal re12 sources to improve information analysis and informa13 tion management. 

14 (8) Collaborate with the Natural Resources Con15 servation Service, National Aeronautics and Space 

16 Administration, National Oceanic and Atmospheric 

17 Administration, and United States Geological Survey 

18 to integrate remote sensing, spatial analysis tech19 niques, and other new technologies in the forest inven20 tory and analysis program. 

21 (9) Understand and report on changes in land 

22 cover and use. 

23 (10) Expand existing programs to promote sus24 tainable forest stewardship through increased under25 standing, in partnership with other Federal agencies, 
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1 of the over 10 million family forest owners, their de2 mographics, and the barriers to forest stewardship. 

3 (11) Implement procedures to improve the statis4 tical precision of estimates at the sub-State level. 

5 (c) SUBMISSION OF REVISED STRATEGIC PLAN.—The 

6 Secretary of Agriculture shall submit the revised strategic 

7 plan to the Committee on Agriculture of the House of Rep8 resentatives and the Committee on Agriculture, Nutrition, 

9 and Forestry of the Senate. 

10 SEC. 8303. REIMBURSEMENT OF FIRE FUNDS. 

11 (a) DEFINITION OF STATE.—In this section, the term 

12 ‘‘State’’ means— 

13 (1) a State; and 

14 (2) the Commonwealth of Puerto Rico. 

15 (b) IN GENERAL.—If a State seeks reimbursement for 

16 amounts expended for resources and services provided to an17 other State for the management and suppression of a wild18 fire, the Secretary of Agriculture, subject to subsections (c) 

19 and (d)— 

20 (1) may accept the reimbursement amounts from 

21 the other State; and 

22 (2) shall pay those amounts to the State seeking 

23 reimbursement. 

24 (c) MUTUAL ASSISTANCE AGREEMENT.—As a condi25 tion of seeking and providing reimbursement under sub-
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1 section (b), the State seeking reimbursement and the State 

2 providing reimbursement must each have a mutual assist3 ance agreement with the Forest Service or another Federal 

4 agency for providing and receiving wildfire management 

5 and suppression resources and services. 

6 (d) TERMS AND CONDITIONS.—The Secretary of Agri7 culture may prescribe the terms and conditions determined 

8 to be necessary to carry out subsection (b). 

9 (e) EFFECT ON PRIOR REIMBURSEMENTS.—Any ac10 ceptance of funds or reimbursements made by the Secretary 

11 of Agriculture before the date of enactment of this Act that 

12 otherwise would have been authorized under this section 

13 shall be considered to have been made in accordance with 

14 this section. 

15 TITLE IX—ENERGY 

16 SEC. 9001. DEFINITIONS. 

17 Section 9001 of the Farm Security and Rural Invest18 ment Act of 2002 (7 U.S.C. 8101) is amended— 

19 (1) by redesignating paragraphs (9) through (12) 

20 and (13) and (14) as paragraphs (10) through (13) 

21 and (15) and (16) respectively; 

22 (2) by inserting after paragraph (8) the fol23 lowing: 

24 ‘‘(9) FOREST PRODUCT.—The term ‘forest prod25 uct’ means a product made from materials derived 
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1 from the practice of forestry or the management of 

2 growing timber, including— 

3 ‘‘(A) pulp, paper, paperboard, pellets, lum4 ber, and wood products; and 

5 ‘‘(B) any recycled products derived from 

6 forest materials.’’; and 

7 (3) by inserting after paragraph (13) (as redes8 ignated by paragraph (1)) the following: 

9 ‘‘(14) RENEWABLE CHEMICAL.—The term ‘re10 newable chemical’ means a monomer, polymer, plas11 tic, formulated product, or chemical substance pro12 duced from renewable biomass.’’. 

13 SEC. 9002. BIOBASED MARKETS PROGRAM. 

14 (a) IN GENERAL.—Section 9002 of the Farm Security 

15 and Rural Investment Act of 2002 (7 U.S.C. 8102) is 

16 amended— 

17 (1) in subsection (a)— 

18 (A) in paragraph (2)(A)(i)— 

19 (i) in subclause (I), by striking ‘‘and’’ 

20 at the end; 

21 (ii) in subclause (II)(bb), by striking 

22 the period at the end and inserting ‘‘; and’’; 

23 and 

24 (iii) by adding at the end the fol25 lowing: 
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1 ‘‘(III) establish a targeted 

2 biobased-only procurement requirement 

3 under which the procuring agency 

4 shall issue a certain number of 

5 biobased-only contracts when the pro6 curing agency is purchasing products, 

7 or purchasing services that include the 

8 use of products, that are included in a 

9 biobased product category designated 

10 by the Secretary.’’; and 

11 (B) in paragraph (3)— 

12 (i) in subparagraph (B)— 

13 (I) in clause (v), by inserting ‘‘as 

14 determined to be necessary by the Sec15 retary based on the availability of 

16 data,’’ before ‘‘provide information’’; 

17 (II) by redesignating clauses (v) 

18 and (vi) as clauses (vii) and (viii), re19 spectively; and 

20 (III) by inserting after clause (iv) 

21 the following: 

22 ‘‘(v) require reporting of quantities 

23 and types of biobased products purchased by 

24 procuring agencies; 
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1 ‘‘(vi) focus on products that meet the 

2 biobased content requirements, including 

3 forest products, that apply an innovative 

4 approach to growing, harvesting, sourcing, 

5 procuring, processing, manufacturing, or 

6 application of biobased products regardless 

7 of the date of entry of the products into the 

8 marketplace;’’; and 

9 (ii) by adding at the end the following: 

10 ‘‘(F) REQUIRED DESIGNATIONS.—Not later 

11 than 1 year after the date of enactment of this 

12 subparagraph, the Secretary shall begin to des13 ignate intermediate ingredients or feedstocks and 

14 assembled and finished biobased products in the 

15 guidelines issued under this paragraph.’’; 

16 (2) in subsection (b)— 

17 (A) in paragraph (3)— 

18 (i) by striking ‘‘The Secretary’’ and 

19 inserting the following: 

20 ‘‘(A) IN GENERAL.—The Secretary’’; and 

21 (ii) by adding at the end the following: 

22 ‘‘(B) AUDITING AND COMPLIANCE.—The 

23 Secretary may carry out such auditing and com24 pliance activities as the Secretary determines to 
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1 be necessary to ensure compliance with subpara2 graph (A).’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(4) ASSEMBLED AND FINISHED PRODUCTS.— 

5 Not later than 1 year after the date of enactment of 

6 this paragraph, the Secretary shall begin issuing cri7 teria for determining which assembled and finished 

8 products may qualify to receive the label under para9 graph (1).’’; 

10 (3) by redesignating subsections (d), (e), (f), (g), 

11 and (h) as subsections (e), (f), (g), (i), and (j), respec12 tively; 

13 (4) by inserting after subsection (c) the fol14 lowing: 

15 ‘‘(d) OUTREACH, EDUCATION, AND PROMOTION.— 

16 ‘‘(1) IN GENERAL.—The Secretary may engage 

17 in outreach, educational, and promotional activities 

18 intended to increase knowledge, awareness, and bene19 fits of biobased products. 

20 ‘‘(2) AUTHORIZED ACTIVITIES.—In carrying out 

21 this subsection, the Secretary may— 

22 ‘‘(A) conduct consumer education and out23 reach (including consumer and awareness sur24 veys); 
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1 ‘‘(B) conduct outreach to and support for 

2 State and local governments interested in imple3 menting biobased purchasing programs; 

4 ‘‘(C) partner with industry and nonprofit 

5 groups to produce educational and outreach ma6 terials and conduct educational and outreach 

7 events; 

8 ‘‘(D) sponsor special conferences and events 

9 to bring together buyers and sellers of biobased 

10 products; and 

11 ‘‘(E) support pilot and demonstration 

12 projects.’’; 

13 (5) in subsection (h) (as redesignated by para14 graph (3))— 

15 (A) in paragraph (2)— 

16 (i) in the matter preceding subpara17 graph (A) by striking ‘‘The report’’ and in18 serting ‘‘Each report under paragraph (1)’’; 

19 (ii) in subparagraph (A), by striking 

20 ‘‘and’’ at the end; 

21 (iii) in subparagraph (B)(ii), by strik22 ing the period at the end and inserting a 

23 semicolon; and 

24 (iv) by adding at the end the following: 
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† HR 2642 EAS 

1 ‘‘(C) the progress made by other Federal 

2 agencies in compliance with the biobased pro3 curement requirements, including the quantity of 

4 purchases made; and 

5 ‘‘(D) the status of outreach, educational, 

6 and promotional activities carried out by the 

7 Secretary under subsection (d), including the at8 tainment of specific milestones and overall re9 sults.’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(3) ECONOMIC IMPACT STUDY AND REPORT.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall 

13 conduct a study to assess the economic impact of 

14 the biobased products industry, including— 

15 ‘‘(i) the quantity of biobased products 

16 sold; 

17 ‘‘(ii) the value of the biobased products; 

18 ‘‘(iii) the quantity of jobs created; 

19 ‘‘(iv) the quantity of petroleum dis20 placed; 

21 ‘‘(v) other environmental benefits; and 

22 ‘‘(vi) areas in which the use or manu23 facturing of biobased products could be more 

24 effectively used, including identifying any 

25 technical and economic obstacles and recom-
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1 mending how those obstacles can be over2 come. 

3 ‘‘(B) REPORT.—Not later than 180 days 

4 after the date of enactment of this subparagraph, 

5 the Secretary shall submit to Congress a report 

6 describing the results of the study conducted 

7 under subparagraph (A).’’. 

8 (6) by inserting after subsection (g) (as redesig9 nated by paragraph (3)) the following: 

10 ‘‘(h) FOREST PRODUCTS LABORATORY COORDINA11 TION.—In determining whether products are eligible for the 

12 ‘USDA Certified Biobased Product’ label, the Secretary 

13 (acting through the Forest Products Laboratory) shall pro14 vide appropriate technical and other assistance to the pro15 gram and applicants for forest products.’’; and 

16 (7) in subsection (j) (as redesignated by para17 graph (3))— 

18 (A) in the heading of paragraph (1), by in19 serting ‘‘FOR FISCAL YEARS 2008 THROUGH 2012’’ 

20 after ‘‘FUNDING’’; 

21 (B) in the heading of paragraph (2), by in22 serting ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ 

23 after ‘‘FUNDING’’; and 

24 (C) by adding at the end the following: 
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1 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.—There 

2 is authorized to be appropriated to carry out this sec3 tion $2,000,000 for each of fiscal years 2014 through 

4 2018. 

5 ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS

6 2014 THROUGH 2018.—Of the funds of the Commodity 

7 Credit Corporation, the Secretary shall use to carry 

8 out this section $3,000,000 for each of fiscal years 

9 2014 through 2018.’’. 

10 (b) CONFORMING AMENDMENT.—Section 944(c)(2)(A) 

11 of the Energy Policy Act of 2005 (42 U.S.C. 

12 16253(c)(2)(A)) is amended by striking ‘‘section 

13 9002(h)(1)’’ and inserting ‘‘section 9002(b)’’. 

14 SEC. 9003. BIOREFINERY, RENEWABLE CHEMICAL, AND 

15 BIOBASED PRODUCT MANUFACTURING AS16 SISTANCE. 

17 (a) PROGRAM ADJUSTMENTS.— 

18 (1) IN GENERAL.—Section 9003 of the Farm Se19 curity and Rural Investment Act of 2002 (7 U.S.C. 

20 8103) is amended— 

21 (A) in the section heading, by inserting ‘‘, 

22 RENEWABLE CHEMICAL, AND BIOBASED

23 PRODUCT MANUFACTURING’’ after ‘‘BIO24 REFINERY’’; 
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1 (B) in subsection (a), in the matter pre2 ceding paragraph (1), by inserting ‘‘renewable 

3 chemicals, and biobased product manufacturing’’ 

4 after ‘‘advanced biofuels,’’; 

5 (C) in subsection (b)— 

6 (i) by redesignating paragraphs (1) 

7 and (2) as paragraphs (2) and (3), respec8 tively; and 

9 (ii) by inserting before paragraph (2) 

10 (as so redesignated) the following: 

11 ‘‘(1) BIOBASED PRODUCT MANUFACTURING.—The 

12 term ‘biobased product manufacturing’ means devel13 opment, construction, and retrofitting of techno14 logically new commercial-scale processing and manu15 facturing equipment and required facilities that will 

16 be used to convert renewable chemicals and other 

17 biobased outputs of biorefineries into end-user prod18 ucts on a commercial scale.’’; and 

19 (D) in subsection (c)— 

20 (i) in paragraph (1), by striking 

21 ‘‘and’’ at the end; 

22 (ii) in paragraph (2), by striking the 

23 period at the end and inserting ‘‘; and’’; 

24 and 
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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(3) grants and loan guarantees to fund the de4 velopment and construction of renewable chemical 

5 and biobased product manufacturing facilities.’’. 

6 (2) EFFECTIVE DATE.—The amendments made 

7 by paragraph (1) shall take effect on October 1, 2013. 

8 (b) FUNDING.—Section 9003(h) of the Farm Security 

9 and Rural Investment Act of 2002 (7 U.S.C. 8103(h)) is 

10 amended— 

11 (1) by striking paragraph (1) and inserting the 

12 following: 

13 ‘‘(1) MANDATORY FUNDING.— 

14 ‘‘(A) IN GENERAL.—Subject to subpara15 graph (B), of the funds of the Commodity Credit 

16 Corporation, the Secretary shall use for the cost 

17 of loan guarantees under this section, to remain 

18 available until expended— 

19 ‘‘(i) $100,000,000 for fiscal year 2014; 

20 and 

21 ‘‘(ii) $58,000,000 for each of fiscal 

22 years 2015 and 2016. 

23 ‘‘(B) BIOBASED PRODUCT MANUFAC24 TURING.—Of the total amount of funds made 

25 available for fiscal years 2014 and 2015 under 
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1 subparagraph (A), the Secretary use for the cost 

2 of loan guarantees under this section not more 

3 than $25,000,000 to promote biobased product 

4 manufacturing.’’; and 

5 (2) in paragraph (2), by striking ‘‘2013’’ and in6 serting ‘‘2018’’. 

7 SEC. 9004. BIOENERGY PROGRAM FOR ADVANCED 

8 BIOFUELS. 

9 Section 9005(g) of the Farm Security and Rural In10 vestment Act of 2002 (7 U.S.C. 8105(g)) is amended— 

11 (1) in the heading of paragraph (1), by inserting 

12 ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

13 ‘‘FUNDING’’; 

14 (2) in the heading of paragraph (2), by inserting 

15 ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

16 ‘‘FUNDING’’; 

17 (3) by redesignating paragraph (3) as para18 graph (4); and 

19 (4) by inserting after paragraph (2) the fol20 lowing: 

21 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.—There 

22 is authorized to be appropriated to carry out this sec23 tion $20,000,000 for each of fiscal years 2014 through 

24 2018.’’. 
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1 SEC. 9005. BIODIESEL FUEL EDUCATION PROGRAM. 

2 Section 9006(d) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 8106(d)) is amended— 

4 (1) in paragraph (1)— 

5 (A) in the heading, by striking ‘‘FISCAL

6 YEARS 2009 THROUGH 2012’’ and inserting ‘‘MAN7 DATORY FUNDING’’ ; and 

8 (B) by striking ‘‘2012’’ and inserting 

9 ‘‘2018’’; and 

10 (2) in paragraph (2), by striking ‘‘fiscal year 

11 2013’’ and inserting ‘‘each of fiscal years 2014 

12 through 2018’’. 

13 SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM. 

14 (a) PROGRAM ADJUSTMENTS.— 

15 (1) IN GENERAL.—Section 9007 of the Farm Se16 curity and Rural Investment Act of 2002 (7 U.S.C. 

17 8107) is amended— 

18 (A) in subsection (b)(2)— 

19 (i) in subparagraph (C), by striking 

20 ‘‘and’’ at the end; 

21 (ii) by redesignating subparagraph (D) 

22 as subparagraph (E); and 

23 (iii) by inserting after subparagraph 

24 (C) the following: 
987 

† HR 2642 EAS 

1 ‘‘(D) a council (as defined in section 1528 

2 of the Agriculture and Food Act of 1981 (16 

3 U.S.C. 3451)); and’’; and 

4 (B) in subsection (c)— 

5 (i) in paragraph (1)(A), by inserting 

6 ‘‘, such as for agricultural and associated 

7 residential purposes’’ after ‘‘electricity’’; 

8 (ii) by striking paragraph (3); 

9 (iii) by redesignating paragraph (4) as 

10 paragraph (3); 

11 (iv) in paragraph (3) (as so redesig12 nated), by striking subparagraph (A) and 

13 inserting the following: 

14 ‘‘(A) GRANTS.—The amount of a grant 

15 under this subsection shall not exceed the lesser 

16 of— 

17 ‘‘(i) $500,000; and 

18 ‘‘(ii) 25 percent of the cost of the activ19 ity carried out using funds from the 

20 grant.’’; and 

21 (v) by adding at the end the following: 

22 ‘‘(4) TIERED APPLICATION PROCESS.— 

23 ‘‘(A) IN GENERAL.—In providing loan 

24 guarantees and grants under this subsection, the 

25 Secretary shall use a 3-tiered application process 
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1 that reflects the size of proposed projects in ac2 cordance with this paragraph. 

3 ‘‘(B) TIER 1.—The Secretary shall establish 

4 a separate application process for projects for 

5 which the cost of the activity funded under this 

6 subsection is not more than $80,000. 

7 ‘‘(C) TIER 2.—The Secretary shall establish 

8 a separate application process for projects for 

9 which the cost of the activity funded under this 

10 subsection is greater than $80,000 but less than 

11 $200,000. 

12 ‘‘(D) TIER 3.—The Secretary shall establish 

13 a separate application process for projects for 

14 which the cost of the activity funded under this 

15 subsection is equal to or greater than $200,000. 

16 ‘‘(E) APPLICATION PROCESS.—The Sec17 retary shall establish an application, evaluation, 

18 and oversight process that is the most simplified 

19 for tier I projects and more comprehensive for 

20 each subsequent tier.’’. 

21 (2) EFFECTIVE DATE.—The amendments made 

22 by paragraph (1) shall take effect on October 1, 2013. 

23 (b) FUNDING.—Section 9007(g) of the Farm Security 

24 and Rural Investment Act of 2002 (7 U.S.C. 8107(g)) is 

25 amended— 
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1 (1) in the heading of paragraph (1), by inserting 

2 ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

3 ‘‘FUNDING’’; 

4 (2) in the heading of paragraph (2), by inserting 

5 ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

6 ‘‘FUNDING’’; 

7 (3) in the heading of paragraph (3), by inserting 

8 ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

9 ‘‘FUNDING’’; and 

10 (4) by adding at the end the following: 

11 ‘‘(4) FISCAL YEARS 2014 THROUGH 2018.—There 

12 is authorized to be appropriated to carry out this sec13 tion $20,000,000 for each of fiscal years 2014 through 

14 2018. 

15 ‘‘(5) MANDATORY FUNDING FOR FISCAL YEARS

16 2014 THROUGH 2018.—Of the funds of the Commodity 

17 Credit Corporation, the Secretary shall use to carry 

18 out this section $68,200,000 for each of fiscal years 

19 2014 through 2018.’’. 

20 SEC. 9007. BIOMASS RESEARCH AND DEVELOPMENT. 

21 Section 9008(h) of the Farm Security and Rural In22 vestment Act of 2002 (7 U.S.C. 8108(h)) is amended— 

23 (1) in the heading of paragraph (1), by inserting 

24 ‘‘FOR FISCAL YEARS 2009 THROUGH 2012’’ after 

25 ‘‘FUNDING’’; 
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1 (2) in the heading of paragraph (2), by inserting 

2 ‘‘FOR FISCAL YEARS 2009 THROUGH 2013’’ after 

3 ‘‘FUNDING’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(3) FISCAL YEARS 2014 THROUGH 2018.—There 

6 is authorized to be appropriated to carry out this sec7 tion $30,000,000 for each of fiscal years 2014 through 

8 2018. 

9 ‘‘(4) MANDATORY FUNDING FOR FISCAL YEARS

10 2014 THROUGH 2018.—Of the funds of the Commodity 

11 Credit Corporation, the Secretary shall use to carry 

12 out this section $26,000,000 for each of fiscal years 

13 2014 through 2018.’’. 

14 SEC. 9008. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO15 ENERGY PRODUCERS. 

16 Section 9010(b) of the Farm Security and Rural In17 vestment Act of 2002 (7 U.S.C. 8110(b)) is amended— 

18 (1) in paragraph (1)(A), by striking ‘‘2013’’ and 

19 inserting ‘‘2018’’; and 

20 (2) in paragraph (2)(A), by striking ‘‘2013’’ and 

21 inserting ‘‘2018’’. 

22 SEC. 9009. BIOMASS CROP ASSISTANCE PROGRAM. 

23 Section 9011 of the Farm Security and Rural Invest24 ment Act of 2002 (7 U.S.C. 8111) is amended to read as 

25 follows: 
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1 ‘‘SEC. 9011. BIOMASS CROP ASSISTANCE PROGRAM. 

2 ‘‘(a) DEFINITIONS.—In this section: 

3 ‘‘(1) BCAP.—The term ‘BCAP’ means the Bio4 mass Crop Assistance Program established under this 

5 section. 

6 ‘‘(2) BCAP PROJECT AREA.—The term ‘BCAP 

7 project area’ means an area that— 

8 ‘‘(A) has specified boundaries that are sub9 mitted to the Secretary by the project sponsor 

10 and subsequently approved by the Secretary; 

11 ‘‘(B) includes producers with contract acre12 age that will supply a portion of the renewable 

13 biomass needed by a biomass conversion facility; 

14 and 

15 ‘‘(C) is physically located within an eco16 nomically practicable distance from the biomass 

17 conversion facility. 

18 ‘‘(3) CONTRACT ACREAGE.—The term ‘contract 

19 acreage’ means eligible land that is covered by a 

20 BCAP contract entered into with the Secretary. 

21 ‘‘(4) ELIGIBLE CROP.— 

22 ‘‘(A) IN GENERAL.—The term ‘eligible crop’ 

23 means a crop of renewable biomass. 

24 ‘‘(B) EXCLUSIONS.—The term ‘eligible crop’ 

25 does not include— 
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1 ‘‘(i) any crop that is eligible to receive 

2 payments under title I of the Food, Con3 servation, and Energy Act of 2008 (7 

4 U.S.C. 8702 et seq.) or an amendment made 

5 by that title; or 

6 ‘‘(ii) any plant that is invasive or nox7 ious or species or varieties of plants that 

8 credible risk assessment tools or other cred9 ible sources determine are potentially 

10 invasive, as determined by the Secretary in 

11 consultation with other appropriate Federal 

12 or State departments and agencies. 

13 ‘‘(5) ELIGIBLE LAND.— 

14 ‘‘(A) IN GENERAL.—The term ‘eligible land’ 

15 includes— 

16 ‘‘(i) agricultural and nonindustrial 

17 private forest lands (as defined in section 

18 5(c) of the Cooperative Forestry Assistance 

19 Act of 1978 (16 U.S.C. 2103a(c))); and 

20 ‘‘(ii) land enrolled in the conservation 

21 reserve program established under sub22 chapter B of chapter I of subtitle D of title 

23 XII of the Food Security Act of 1985 (16 

24 U.S.C. 3831 et seq.) or the Agricultural 

25 Conservation Easement Program established 
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1 under subtitle H of title XII of that Act 

2 under a contract that will expire at the end 

3 of the current fiscal year. 

4 ‘‘(B) EXCLUSIONS.—The term ‘eligible land’ 

5 does not include— 

6 ‘‘(i) Federal- or State-owned land; 

7 ‘‘(ii) land that is native sod, as of the 

8 date of enactment of the Food, Conservation, 

9 and Energy Act of 2008 (7 U.S.C. 8701 et 

10 seq.); 

11 ‘‘(iii) land enrolled in the conservation 

12 reserve program established under sub13 chapter B of chapter 1 of subtitle D of title 

14 XII of the Food Security Act of 1985 (16 

15 U.S.C. 3831 et seq.), other than land de16 scribed in subparagraph (A)(ii); or 

17 ‘‘(iv) land enrolled in the Agricultural 

18 Conservation Easement Program established 

19 under subtitle H of title XII of that Act, 

20 other than land described in subparagraph 

21 (A)(ii). 

22 ‘‘(6) ELIGIBLE MATERIAL.— 

23 ‘‘(A) IN GENERAL.—The term ‘eligible mate24 rial’ means renewable biomass harvested directly 

25 from the land, including crop residue from any 
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† HR 2642 EAS 

1 crop that is eligible to receive payments under 

2 title I of the Agriculture Reform, Food, and Jobs 

3 Act of 2013 or an amendment made by that title. 

4 ‘‘(B) INCLUSIONS.—The term ‘eligible mate5 rial’ shall only include— 

6 ‘‘(i) eligible material that is collected 

7 or harvested by the eligible material 

8 owner— 

9 ‘‘(I) directly from— 

10 ‘‘(aa) National Forest Sys11 tem; 

12 ‘‘(bb) Bureau of Land Man13 agement land; 

14 ‘‘(cc) non-Federal land; or 

15 ‘‘(dd) land owned by an in16 dividual Indian or Indian tribe 

17 that is held in trust by the United 

18 States for the benefit of the indi19 vidual Indian or Indian tribe or 

20 subject to a restriction against 

21 alienation imposed by the United 

22 States; 

23 ‘‘(II) in a manner that is con24 sistent with— 

25 ‘‘(aa) a conservation plan; 
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† HR 2642 EAS 

1 ‘‘(bb) a forest stewardship 

2 plan; or 

3 ‘‘(cc) a plan that the Sec4 retary determines is equivalent to 

5 a plan described in item (aa) or 

6 (bb) and consistent with Executive 

7 Order 13112 (42 U.S.C. 4321 

8 note; relating to invasive species); 

9 ‘‘(ii) if woody eligible material, woody 

10 eligible material that is produced on land 

11 other than contract acreage that— 

12 ‘‘(I) is a byproduct of a preventa13 tive treatment that is removed to re14 duce hazardous fuel or to reduce or 

15 contain disease or insect infestation; 

16 and 

17 ‘‘(II) if harvested from Federal 

18 land, is harvested in accordance with 

19 section 102(e) of the Healthy Forests 

20 Restoration Act of 2003 (16 U.S.C. 

21 6512(e)); and 

22 ‘‘(iii) eligible material that is delivered 

23 to a qualified biomass conversion facility to 

24 be used for heat, power, biobased products, 

25 research, or advanced biofuels. 
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† HR 2642 EAS 

1 ‘‘(C) EXCLUSIONS.—The term ‘eligible ma2 terial’ does not include— 

3 ‘‘(i) material that is whole grain from 

4 any crop that is eligible to receive payments 

5 under title I of the Agriculture Reform, 

6 Food, and Jobs Act of 2013 or an amend7 ment made by that title, including— 

8 ‘‘(I) barley, corn, grain sorghum, 

9 oats, rice, or wheat; 

10 ‘‘(II) honey; 

11 ‘‘(III) mohair; 

12 ‘‘(IV) oilseeds, including canola, 

13 crambe, flaxseed, mustard seed, 

14 rapeseed, safflower seed, soybeans, ses15 ame seed, and sunflower seed; 

16 ‘‘(V) peanuts; 

17 ‘‘(VI) pulse; 

18 ‘‘(VII) chickpeas, lentils, and dry 

19 peas; 

20 ‘‘(VIII) dairy products; 

21 ‘‘(IX) sugar; and 

22 ‘‘(X) wool and cotton boll fiber; 

23 ‘‘(ii) animal waste and byproducts, in24 cluding fat, oil, grease, and manure; 

25 ‘‘(iii) food waste and yard waste; 
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1 ‘‘(iv) algae; 

2 ‘‘(v) woody eligible material that— 

3 ‘‘(I) is removed outside contract 

4 acreage; and 

5 ‘‘(II) is not a byproduct of a pre6 ventative treatment to reduce haz7 ardous fuel or to reduce or contain dis8 ease or insect infestation; 

9 ‘‘(vi) any woody eligible material col10 lected or harvested outside contract acreage 

11 that would otherwise be used for existing 

12 market products; or 

13 ‘‘(vii) bagasse. 

14 ‘‘(7) PRODUCER.—The term ‘producer’ means an 

15 owner or operator of contract acreage that is phys16 ically located within a BCAP project area. 

17 ‘‘(8) PROJECT SPONSOR.—The term ‘project 

18 sponsor’ means— 

19 ‘‘(A) a group of producers; or 

20 ‘‘(B) a biomass conversion facility. 

21 ‘‘(9) SOCIALLY DISADVANTAGED FARMER OR

22 RANCHER.—The term ‘socially disadvantaged farmer 

23 or rancher’ has the meaning given the term in section 

24 2501(e) of the Food, Agriculture, Conservation, and 

25 Trade Act of 1990 (7 U.S.C. 2279(e)). 
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1 ‘‘(b) ESTABLISHMENT AND PURPOSE.—The Secretary 

2 shall establish and administer a Biomass Crop Assistance 

3 Program to— 

4 ‘‘(1) support the establishment and production of 

5 eligible crops for conversion to bioenergy in selected 

6 BCAP project areas; and 

7 ‘‘(2) assist agricultural and forest land owners 

8 and operators with the collection, harvest, storage, 

9 and transportation of eligible material for use in a 

10 biomass conversion facility. 

11 ‘‘(c) BCAP PROJECT AREA.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall provide 

13 financial assistance to a producer of an eligible crop 

14 in a BCAP project area. 

15 ‘‘(2) SELECTION OF PROJECT AREAS.— 

16 ‘‘(A) IN GENERAL.—To be considered for se17 lection as a BCAP project area, a project sponsor 

18 shall submit to the Secretary a proposal that, at 

19 a minimum, includes— 

20 ‘‘(i) a description of the eligible land 

21 and eligible crops of each producer that will 

22 participate in the proposed BCAP project 

23 area; 

24 ‘‘(ii) a letter of commitment from a 

25 biomass conversion facility that the facility 
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1 will use the eligible crops intended to be 

2 produced in the proposed BCAP project 

3 area; 

4 ‘‘(iii) evidence that the biomass conver5 sion facility has sufficient equity available, 

6 as determined by the Secretary, if the bio7 mass conversion facility is not operational 

8 at the time the proposal is submitted to the 

9 Secretary; and 

10 ‘‘(iv) any other information about the 

11 biomass conversion facility or proposed bio12 mass conversion facility that the Secretary 

13 determines necessary for the Secretary to be 

14 reasonably assured that the plant will be in 

15 operation by the date on which the eligible 

16 crops are ready for harvest. 

17 ‘‘(B) BCAP PROJECT AREA SELECTION CRI18 TERIA.—In selecting BCAP project areas, the 

19 Secretary shall consider— 

20 ‘‘(i) the volume of the eligible crops 

21 proposed to be produced in the proposed 

22 BCAP project area and the probability that 

23 those crops will be used for the purposes of 

24 the BCAP; 
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1 ‘‘(ii) the volume of renewable biomass 

2 projected to be available from sources other 

3 than the eligible crops grown on contract 

4 acres; 

5 ‘‘(iii) the anticipated economic impact 

6 in the proposed BCAP project area; 

7 ‘‘(iv) the opportunity for producers 

8 and local investors to participate in the 

9 ownership of the biomass conversion facility 

10 in the proposed BCAP project area; 

11 ‘‘(v) the participation rate by— 

12 ‘‘(I) beginning farmers or ranch13 ers (as defined in accordance with sec14 tion 343(a) of the Consolidated Farm 

15 and Rural Development Act (7 U.S.C. 

16 1991(a))); or 

17 ‘‘(II) socially disadvantaged farm18 ers or ranchers; 

19 ‘‘(vi) the impact on soil, water, and re20 lated resources; 

21 ‘‘(vii) the variety in biomass produc22 tion approaches within a project area, in23 cluding (as appropriate)— 

24 ‘‘(I) agronomic conditions; 
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1 ‘‘(II) harvest and postharvest 

2 practices; and 

3 ‘‘(III) monoculture and 

4 polyculture crop mixes; 

5 ‘‘(viii) the range of eligible crops 

6 among project areas; and 

7 ‘‘(ix) any additional information that 

8 the Secretary determines to be necessary. 

9 ‘‘(3) CONTRACT.— 

10 ‘‘(A) IN GENERAL.—On approval of a 

11 BCAP project area by the Secretary, each pro12 ducer in the BCAP project area shall enter into 

13 a contract directly with the Secretary. 

14 ‘‘(B) MINIMUM TERMS.—At a minimum, a 

15 contract under this subsection shall include 

16 terms that cover— 

17 ‘‘(i) an agreement to make available to 

18 the Secretary, or to an institution of higher 

19 education or other entity designated by the 

20 Secretary, such information as the Sec21 retary considers to be appropriate to pro22 mote the production of eligible crops and the 

23 development of biomass conversion tech24 nology; 
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1 ‘‘(ii) compliance with the highly erod2 ible land conservation requirements of sub3 title B of title XII of the Food Security Act 

4 of 1985 (16 U.S.C. 3811 et seq.) and the 

5 wetland conservation requirements of sub6 title C of title XII of that Act (16 U.S.C. 

7 3821 et seq.); 

8 ‘‘(iii) the implementation of (as deter9 mined by the Secretary)— 

10 ‘‘(I) a conservation plan; 

11 ‘‘(II) a forest stewardship plan; or 

12 ‘‘(III) a plan that is equivalent to 

13 a conservation or forest stewardship 

14 plan; and 

15 ‘‘(iv) any additional requirements that 

16 Secretary determines to be necessary. 

17 ‘‘(C) DURATION.—A contract under this 

18 subsection shall have a term of not more than— 

19 ‘‘(i) 5 years for annual and perennial 

20 crops; or 

21 ‘‘(ii) 15 years for woody biomass. 

22 ‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In 

23 carrying out this subsection, the Secretary shall pro24 vide for the preservation of cropland base and yield 
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† HR 2642 EAS 

1 history applicable to the land enrolled in a BCAP 

2 contract. 

3 ‘‘(5) PAYMENTS.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 make establishment and annual payments di6 rectly to producers to support the establishment 

7 and production of eligible crops on contract acre8 age. 

9 ‘‘(B) AMOUNT OF ESTABLISHMENT PAY10 MENTS.— 

11 ‘‘(i) IN GENERAL.—Subject to clause 

12 (ii), the amount of an establishment pay13 ment under this subsection shall be not 

14 more than 50 percent of the costs of estab15 lishing an eligible perennial crop covered by 

16 the contract but not to exceed $500 per acre, 

17 including— 

18 ‘‘(I) the cost of seeds and stock for 

19 perennials; 

20 ‘‘(II) the cost of planting the pe21 rennial crop, as determined by the Sec22 retary; and 

23 ‘‘(III) in the case of nonindustrial 

24 private forestland, the costs of site 

25 preparation and tree planting. 
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1 ‘‘(ii) SOCIALLY DISADVANTAGED FARM2 ERS OR RANCHERS.—In the case of socially 

3 disadvantaged farmers or ranchers, the costs 

4 of establishment may not exceed $750 per 

5 acre. 

6 ‘‘(C) AMOUNT OF ANNUAL PAYMENTS.— 

7 ‘‘(i) IN GENERAL.—Subject to clause 

8 (ii), the amount of an annual payment 

9 under this subsection shall be determined by 

10 the Secretary. 

11 ‘‘(ii) REDUCTION.—The Secretary shall 

12 reduce an annual payment by an amount 

13 determined to be appropriate by the Sec14 retary, if— 

15 ‘‘(I) an eligible crop is used for 

16 purposes other than the production of 

17 energy at the biomass conversion facil18 ity; 

19 ‘‘(II) an eligible crop is delivered 

20 to the biomass conversion facility; 

21 ‘‘(III) the producer receives a 

22 payment under subsection (d); 

23 ‘‘(IV) the producer violates a term 

24 of the contract; or 
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† HR 2642 EAS 

1 ‘‘(V) the Secretary determines a 

2 reduction is necessary to carry out this 

3 section. 

4 ‘‘(D) EXCLUSION.—The Secretary shall not 

5 make any BCAP payments on land for which 

6 payments are received under the conservation re7 serve program established under subchapter B of 

8 chapter 1 of subtitle D of title XII of the Food 

9 Security Act of 1985 (16 U.S.C. 3831 et seq.) or 

10 the agricultural conservation easement program 

11 established under subtitle H of title XII of that 

12 Act. 

13 ‘‘(d) ASSISTANCE WITH COLLECTION, HARVEST, 

14 STORAGE, AND TRANSPORTATION.— 

15 ‘‘(1) IN GENERAL.—The Secretary shall make a 

16 payment for the delivery of eligible material to a bio17 mass conversion facility to— 

18 ‘‘(A) a producer of an eligible crop that is 

19 produced on BCAP contract acreage; or 

20 ‘‘(B) a person with the right to collect or 

21 harvest eligible material, regardless of whether 

22 the eligible material is produced on contract 

23 acreage. 

24 ‘‘(2) PAYMENTS.— 
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1 ‘‘(A) COSTS COVERED.—A payment under 

2 this subsection shall be in an amount described 

3 in subparagraph (B) for— 

4 ‘‘(i) collection; 

5 ‘‘(ii) harvest; 

6 ‘‘(iii) storage; and 

7 ‘‘(iv) transportation to a biomass con8 version facility. 

9 ‘‘(B) AMOUNT.—Subject to paragraph (3), 

10 the Secretary may provide matching payments 

11 at a rate of up to $1 for each $1 per ton pro12 vided by the biomass conversion facility, in an 

13 amount not to exceed $20 per dry ton for a pe14 riod of 4 years. 

15 ‘‘(3) LIMITATION ON ASSISTANCE FOR BCAP CON16 TRACT ACREAGE.—As a condition of the receipt of an 

17 annual payment under subsection (c), a producer re18 ceiving a payment under this subsection for collection, 

19 harvest, storage, or transportation of an eligible crop 

20 produced on BCAP acreage shall agree to a reduction 

21 in the annual payment. 

22 ‘‘(e) REPORT.—Not later than 4 years after the date 

23 of enactment of the Agriculture Reform, Food, and Jobs Act 

24 of 2013, the Secretary shall submit to the Committee on 

25 Agriculture of the House of Representatives and the Com-
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† HR 2642 EAS 

1 mittee on Agriculture, Nutrition, and Forestry of the Senate 

2 a report on the dissemination by the Secretary of the best 

3 practice data and information gathered from participants 

4 receiving assistance under this section. 

5 ‘‘(f) FUNDING.— 

6 ‘‘(1) IN GENERAL.—Of the funds of the Com7 modity Credit Corporation, the Secretary shall use to 

8 carry out this section $38,600,000 for each of fiscal 

9 years 2014 through 2018. 

10 ‘‘(2) COLLECTION, HARVEST, STORAGE, AND

11 TRANSPORTATION PAYMENTS.—Of the amount made 

12 available under paragraph (1) for each fiscal year, 

13 the Secretary shall use not less than 10 percent, nor 

14 more than 50 percent, of the amount to make collec15 tion, harvest, transportation, and storage payments 

16 under subsection (d)(2).’’. 

17 SEC. 9010. REPEAL OF FOREST BIOMASS FOR ENERGY. 

18 Section 9012 of the Farm Security and Rural Invest19 ment Act of 2002 (7 U.S.C. 8112) is repealed. 

20 SEC. 9011. COMMUNITY WOOD ENERGY PROGRAM. 

21 (a) DEFINITION OF BIOMASS CONSUMER COOPERA22 TIVE.—Section 9013(a) of the Farm Security and Rural 

23 Investment Act of 2002 (7 U.S.C. 8113(a)) is amended— 

24 (1) by redesignating paragraphs (1) and (2) as 

25 paragraphs (2) and (3), respectively; and 
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1 (2) by inserting before paragraph (2) (as so re2 designated) the following: 

3 ‘‘(1) BIOMASS CONSUMER COOPERATIVE.—The 

4 term ‘biomass consumer cooperative’ means a con5 sumer membership organization the purpose of which 

6 is to provide members with services or discounts relat7 ing to the purchase of biomass heating products or 

8 biomass heating systems.’’. 

9 (b) GRANT PROGRAM.—Section 9013(b)(1) of the 

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

11 8113(b)(1)) is amended— 

12 (1) in subparagraph (A), by striking ‘‘and’’ after 

13 the semicolon at the end; 

14 (2) in subparagraph (B), by striking the period 

15 at the end and inserting ‘‘; and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(C) grants of up to $50,000 to biomass 

18 consumer cooperatives for the purpose of estab19 lishing or expanding biomass consumer coopera20 tives that will provide consumers with services or 

21 discounts relating to— 

22 ‘‘(i) the purchase of biomass heating 

23 systems; 
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1 ‘‘(ii) biomass heating products, includ2 ing wood chips, wood pellets, and advanced 

3 biofuels; or 

4 ‘‘(iii) the delivery and storage of bio5 mass of heating products.’’. 

6 (c) MATCHING FUNDS.—Section 9013(d) of the Farm 

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

8 8113(d)) is amended— 

9 (1) by striking ‘‘A State or local government that 

10 receives a grant under subsection (b)’’ and inserting 

11 the following: 

12 ‘‘(1) STATE AND LOCAL GOVERNMENTS.—A State 

13 or local government that receives a grant under sub14 paragraph (A) or (B) of subsection (b)(1)’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(2) BIOMASS CONSUMER COOPERATIVES.—A 

17 biomass consumer cooperative that receives a grant 

18 under subsection (b)(1)(C) shall contribute an amount 

19 of non-Federal funds (which may include State, local, 

20 and nonprofit funds and membership dues) toward 

21 the establishment or expansion of a biomass consumer 

22 cooperative that is at least equal to 50 percent of the 

23 amount of Federal funds received for that purpose.’’. 

24 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

25 9013(e) of the Farm Security and Rural Investment Act 
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1 of 2002 (7 U.S.C. 8113(e)) is amended by striking ‘‘2013’’ 

2 and inserting ‘‘2018’’. 

3 SEC. 9012. REPEAL OF RENEWABLE FERTILIZER STUDY. 

4 Section 9003 of the Food, Conservation, and Energy 

5 Act of 2008 (Public Law 110–246; 122 Stat. 2096) is re6 pealed. 

7 TITLE X—HORTICULTURE 

8 SEC. 10001. SPECIALTY CROPS MARKET NEWS ALLOCATION. 

9 Section 10107(b) of the Food, Conservation, and En10 ergy Act of 2008 (7 U.S.C. 1622b(b)) is amended by striking 

11 ‘‘2012’’ and inserting ‘‘2018’’. 

12 SEC. 10002. REPEAL OF GRANT PROGRAM TO IMPROVE 

13 MOVEMENT OF SPECIALTY CROPS. 

14 Section 10403 of the Food, Conservation, and Energy 

15 Act of 2008 (7 U.S.C. 1622c) is repealed. 

16 SEC. 10003. FARMERS MARKET AND LOCAL FOOD PRO17 MOTION PROGRAM. 

18 Section 6 of the Farmer-to-Consumer Direct Marketing 

19 Act of 1976 (7 U.S.C. 3005) is amended— 

20 (1) in the section heading, by adding ‘‘AND

21 LOCAL FOOD’’ after ‘‘MARKET’’; 

22 (2) in subsection (a)— 

23 (A) by inserting ‘‘and Local Food’’ after 

24 ‘‘Market’’; 
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† HR 2642 EAS 

1 (B) by striking ‘‘farmers’ markets and to 

2 promote’’; and 

3 (C) by inserting ‘‘and local food capacity 

4 development’’ before the period at the end; 

5 (3) in subsection (b), by striking paragraph (1) 

6 and inserting the following: 

7 ‘‘(1) IN GENERAL.—The purposes of the Program 

8 are to increase domestic consumption of and access to 

9 locally and regionally produced agricultural products 

10 by developing, improving, expanding, and providing 

11 outreach, training, and technical assistance to, or as12 sisting in the development, improvement and expan13 sion of— 

14 ‘‘(A) domestic farmers’ markets, roadside 

15 stands, community-supported agriculture pro16 grams, agritourism activities, and other direct 

17 producer-to-consumer market opportunities; and 

18 ‘‘(B) local and regional food enterprises that 

19 are not direct producer-to-consumer markets but 

20 process, distribute, aggregate, store, and market 

21 locally or regionally produced food products.’’; 

22 (4) in subsection (c)(1)— 

23 (A) by inserting ‘‘or other business entity’’ 

24 after ‘‘cooperative’’; and 
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† HR 2642 EAS 

1 (B) by inserting ‘‘, including a community 

2 supported agriculture network or association’’ 

3 after ‘‘association’’; 

4 (5) by redesignating subsection (e) as subsection 

5 (f); 

6 (6) by inserting after subsection (d) the fol7 lowing: 

8 ‘‘(e) PRIORITIES.—In providing grants under the Pro9 gram, priority shall be given to applications that include 

10 projects that— 

11 ‘‘(1) benefit underserved communities; 

12 ‘‘(2) develop market opportunities for small and 

13 mid-sized farm and ranch operations; and 

14 ‘‘(3) include a strategic plan to maximize the use 

15 of funds to build capacity for local and regional food 

16 systems in a community.’’; 

17 (7) in subsection (f) (as redesignated by para18 graph (5))— 

19 (A) in paragraph (1)— 

20 (i) in the heading, by striking ‘‘FISCAL

21 YEARS 2008 THROUGH 2012’’ and inserting 

22 ‘‘MANDATORY FUNDING’’; 

23 (ii) in subparagraph (B), by striking 

24 ‘‘and’’ after the semicolon at the end; 
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† HR 2642 EAS 

1 (iii) in subparagraph (C), by striking 

2 the period at the end and inserting ‘‘; and’’; 

3 and 

4 (iv) by adding at the end the following: 

5 ‘‘(D) $20,000,000 for each of fiscal years 

6 2014 through 2018.’’; 

7 (B) by striking paragraphs (3) and (5); 

8 (C) by inserting after paragraph (2) the fol9 lowing: 

10 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In 

11 addition to funds made available under paragraph 

12 (1), there is authorized to be appropriated to carry 

13 out this section $20,000,000 for each of fiscal years 

14 2014 through 2018.’’; and 

15 (D) by adding at the end the following: 

16 ‘‘(5) USE OF FUNDS.— 

17 ‘‘(A) IN GENERAL.—Of the funds made 

18 available to carry out the Program for each fis19 cal year, 50 percent shall be used for the pur20 poses described in subsection (b)(1)(A) and 50 

21 percent shall be used for the purposes described 

22 in subsection (b)(1)(B). 

23 ‘‘(B) COST SHARE.—To be eligible to receive 

24 a grant for a project described in subsection 

25 (b)(1)(B), a recipient shall provide a match in 
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† HR 2642 EAS 

1 the form of cash or in-kind contributions in an 

2 amount equal to 25 percent of the total cost of 

3 the project. 

4 ‘‘(6) ADMINISTRATIVE EXPENSES.—Not more 

5 than 10 percent of the total amount made available 

6 to carry out this section for a fiscal year may be used 

7 for administrative expenses. 

8 ‘‘(7) LIMITATIONS.—An eligible entity may not 

9 use a grant or other assistance provided under the 

10 Program for the purchase, construction, or rehabilita11 tion of a building or structure.’’. 

12 SEC. 10004. STUDY ON LOCAL FOOD PRODUCTION AND PRO13 GRAM EVALUATION. 

14 (a) IN GENERAL.—The Secretary shall— 

15 (1) collect data on the production and marketing 

16 of locally or regionally produced agricultural food 

17 products; 

18 (2) facilitate interagency collaboration and data 

19 sharing on programs related to local and regional 

20 food systems; and 

21 (3) monitor the effectiveness of programs de22 signed to expand or facilitate local food systems. 

23 (b) REQUIREMENTS.—In carrying out this section, the 

24 Secretary shall, at a minimum— 
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1 (1) collect and distribute comprehensive report2 ing of prices of locally or regionally produced agricul3 tural food products; 

4 (2) conduct surveys and analysis and publish re5 ports relating to the production, handling, distribu6 tion, retail sales, and trend studies (including con7 sumer purchasing patterns) of or on locally or region8 ally produced agricultural food products; 

9 (3) evaluate the effectiveness of existing programs 

10 in growing local and regional food systems, includ11 ing— 

12 (A) the impact of local food systems on job 

13 creation and economic development; 

14 (B) the level of participation in the Farm15 ers’ Market and Local Food Promotion Program 

16 established under section 6 of the Farmer-to-Con17 sumer Direct Marketing Act of 1976 (7 U.S.C. 

18 3005), including the percentage of projects fund19 ed in comparison to applicants and the types of 

20 eligible entities receiving funds; 

21 (C) the ability for participants to leverage 

22 private capital and a synopsis of the places from 

23 which non-Federal funds are derived; and 
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1 (D) any additional resources required to 

2 aid in the development or expansion of local and 

3 regional food systems; 

4 (4) expand the Agricultural Resource Manage5 ment Survey to include questions on locally or region6 ally produced agricultural food products; and 

7 (5) seek to establish or expand private-public 

8 partnerships to facilitate, to the maximum extent 

9 practicable, the collection of data on locally or region10 ally produced agricultural food products, including 

11 the development of a nationally coordinated and re12 gionally balanced evaluation of the redevelopment of 

13 locally or regionally produced food systems. 

14 (c) REPORT.—Not later than 1 year after the date of 

15 enactment of this Act and annually thereafter, the Secretary 

16 shall submit to the Committee on Agriculture of the House 

17 of Representatives and the Committee on Agriculture, Nu18 trition, and Forestry of the Senate a report describing the 

19 progress that has been made in implementing this section 

20 and identifying any additional needs related to developing 

21 local and regional food systems. 

22 SEC. 10005. ORGANIC AGRICULTURE. 

23 (a) ORGANIC PRODUCTION AND MARKET DATA INITIA24 TIVES.—Section 7407 of the Farm Security and Rural In25 vestment Act of 2002 (7 U.S.C. 5925c) is amended— 
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1 (1) in subsection (c)— 

2 (A) in the matter preceding paragraph (1), 

3 by inserting ‘‘and annually thereafter’’ after 

4 ‘‘this subsection’’; 

5 (B) in paragraph (1), by striking ‘‘and’’ at 

6 the end; 

7 (C) by redesignating paragraph (2) as 

8 paragraph (3); and 

9 (D) by inserting after paragraph (1) the fol10 lowing: 

11 ‘‘(2) describes how data collection agencies (such 

12 as the Agricultural Marketing Service and the Na13 tional Agricultural Statistics Service) are coordi14 nating with data user agencies (such as the Risk 

15 Management Agency) to ensure that data collected 

16 under this section can be used by data user agencies, 

17 including by the Risk Management Agency to offer 

18 price elections for all organic crops; and’’; and 

19 (2) in subsection (d)— 

20 (A) by striking paragraph (3); 

21 (B) by redesignating paragraph (2) as 

22 paragraph (3); 

23 (C) by inserting after paragraph (1) the fol24 lowing: 
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1 ‘‘(2) MANDATORY FUNDING.—In addition to any 

2 funds available under paragraph (1), of the funds of 

3 the Commodity Credit Corporation, the Secretary 

4 shall use to carry out this section $5,000,000, to re5 main available until expended.’’; and 

6 (D) in paragraph (3) (as redesignated by 

7 subparagraph (B))— 

8 (i) in the heading, by striking ‘‘FOR

9 FISCAL YEARS 2008 THROUGH 2012’’; 

10 (ii) by striking ‘‘paragraph (1)’’ and 

11 inserting ‘‘paragraphs (1) and (2)’’; and 

12 (iii) by striking ‘‘2012’’ and inserting 

13 ‘‘2018’’. 

14 (b) MODERNIZATION AND TECHNOLOGY UPGRADE FOR

15 NATIONAL ORGANIC PROGRAM.—Section 2123 of the Or16 ganic Foods Production Act of 1990 (7 U.S.C. 6522) is 

17 amended— 

18 (1) in subsection (b)— 

19 (A) in paragraph (5), by striking ‘‘and’’ at 

20 the end; 

21 (B) by redesignating paragraph (6) as 

22 paragraph (7); and 

23 (C) by inserting after paragraph (5) the fol24 lowing: 
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1 ‘‘(6) $15,000,000 for each of fiscal years 2014 

2 through 2018; and’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(c) MODERNIZATION AND TECHNOLOGY UPGRADE

5 FOR NATIONAL ORGANIC PROGRAM.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall mod7 ernize database and technology systems of the na8 tional organic program. 

9 ‘‘(2) FUNDING.—Of the funds of the Commodity 

10 Credit Corporation and in addition to any other 

11 funds made available for that purpose, the Secretary 

12 shall make available to carry out this subsection 

13 $5,000,000 for fiscal year 2014, to remain available 

14 until expended.’’. 

15 SEC. 10006. FOOD SAFETY EDUCATION INITIATIVES. 

16 Section 10105(c) of the Food, Conservation, and En17 ergy Act of 2008 (7 U.S.C. 7655a(c)) is amended by striking 

18 ‘‘2012’’ and inserting ‘‘2018’’. 

19 SEC. 10007. COORDINATED PLANT MANAGEMENT PROGRAM. 

20 (a) IN GENERAL.—Section 420 of the Plant Protection 

21 Act (7 U.S.C. 7721) is amended— 

22 (1) by striking the section heading and inserting 

23 ‘‘COORDINATED PLANT MANAGEMENT PRO24 GRAM.’’; 
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† HR 2642 EAS 

1 (2) by redesignating subsection (e) as subsection 

2 (f); and 

3 (3) by inserting after subsection (d) the fol4 lowing: 

5 ‘‘(e) NATIONAL CLEAN PLANT NETWORK.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall establish 

7 a program to be known as the ‘National Clean Plant 

8 Network’ (referred to in this subsection as the ‘Pro9 gram’). 

10 ‘‘(2) REQUIREMENTS.—Under the Program, the 

11 Secretary shall establish a network of clean plant cen12 ters for diagnostic and pathogen elimination serv13 ices— 

14 ‘‘(A) to produce clean propagative plant 

15 material; and 

16 ‘‘(B) to maintain blocks of pathogen-tested 

17 plant material in sites located throughout the 

18 United States. 

19 ‘‘(3) AVAILABILITY OF CLEAN PLANT SOURCE MA20 TERIAL.—Clean plant source material produced or 

21 maintained under the Program may be made avail22 able to— 

23 ‘‘(A) a State for a certified plant program 

24 of the State; and 

25 ‘‘(B) private nurseries and producers. 
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1 ‘‘(4) CONSULTATION AND COLLABORATION.—In 

2 carrying out the Program, the Secretary shall— 

3 ‘‘(A) consult with— 

4 ‘‘(i) State departments of agriculture; 

5 and 

6 ‘‘(ii) land-grant colleges and univer7 sities and NLGCA Institutions (as those 

8 terms are defined in section 1404 of the Na9 tional Agricultural Research, Extension, 

10 and Teaching Policy Act of 1977 (7 U.S.C. 

11 3103)); and 

12 ‘‘(B) to the extent practicable and with 

13 input from the appropriate State officials and 

14 industry representatives, use existing Federal or 

15 State facilities to serve as clean plant centers.’’. 

16 (b) FUNDING.—Subsection (f) of section 420 of the 

17 Plant Protection Act (7 U.S.C. 7721) (as redesignated by 

18 subsection (a)(2)) is amended— 

19 (1) in paragraph (3), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (4), by striking ‘‘and each fis22 cal year thereafter.’’ and inserting a semicolon; and 

23 (3) by adding at the end the following: 

24 ‘‘(5) $60,000,000 for each of fiscal years 2014 

25 through 2017; and 
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† HR 2642 EAS 

1 ‘‘(6) $65,000,000 for fiscal year 2018 and each 

2 fiscal year thereafter.’’. 

3 (c) REPEAL OF EXISTING PROVISION.—Section 10202 

4 of the Food, Conservation, and Energy Act of 2008 (7 

5 U.S.C. 7761) is repealed. 

6 (d) CLARIFICATION OF USE OF FUNDS FOR TECH7 NICAL ASSISTANCE.—Section 420 of the Plant Protection 

8 Act (7 U.S.C. 7721) (as amended by subsection (a)) is 

9 amended by adding at the end the following: 

10 ‘‘(g) RELATIONSHIP TO OTHER LAW.—The use of 

11 Commodity Credit Corporation funds under this section to 

12 provide technical assistance shall not be considered an allot13 ment or fund transfer from the Commodity Credit Corpora14 tion for purposes of the limit on expenditures for technical 

15 assistance imposed by section 11 of the Commodity Credit 

16 Corporation Charter Act (15 U.S.C. 714i).’’. 

17 SEC. 10008. SPECIALTY CROP BLOCK GRANTS. 

18 Section 101 of the Specialty Crops Competitiveness Act 

19 of 2004 (7 U.S.C. 1621 note; Public Law 108–465) is 

20 amended— 

21 (1) in subsection (a)— 

22 (A) by striking ‘‘subsection (j)’’ and insert23 ing ‘‘subsection (l)’’; and 

24 (B) by striking ‘‘2012’’ and inserting 

25 ‘‘2018’’; 
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1 (2) by striking subsection (b) and inserting the 

2 following: 

3 ‘‘(b) GRANTS BASED ON VALUE AND ACREAGE.—Sub4 ject to subsection (c), in the case of each State with an ap5 plication for a grant for a fiscal year that is accepted by 

6 the Secretary of Agriculture under subsection (f), the 

7 amount of a grant for a fiscal year to a State under this 

8 section shall bear the same ratio to the total amount made 

9 available under subsection (l) for that fiscal year as— 

10 ‘‘(1) the average of the most recent available 

11 value of specialty crop production in the State and 

12 the acreage of specialty crop production in the State, 

13 as demonstrated in the most recent Census of Agri14 culture data; bears to 

15 ‘‘(2) the average of the most recent available 

16 value of specialty crop production in all States and 

17 the acreage of specialty crop production in all States, 

18 as demonstrated in the most recent Census of Agri19 culture data.’’; 

20 (3) by redesignating subsection (j) as subsection 

21 (l); 

22 (4) by inserting after subsection (i) the following: 

23 ‘‘(j) MULTISTATE PROJECTS.— 

24 ‘‘(1) IN GENERAL.—Not later than 180 days 

25 after the date of enactment of the Agriculture Reform, 
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1 Food, and Jobs Act of 2013, the Secretary of Agri2 culture shall issue guidance for the purpose of making 

3 grants to multistate projects under this section for 

4 projects involving— 

5 ‘‘(A) food safety; 

6 ‘‘(B) plant pests and disease; 

7 ‘‘(C) crop-specific projects addressing com8 mon issues; and 

9 ‘‘(D) any other area that furthers the pur10 poses of this section, as determined by the Sec11 retary. 

12 ‘‘(2) FUNDING.—Of the funds provided under 

13 subsection (l), the Secretary of Agriculture may allo14 cate for grants under this subsection, to remain avail15 able until expended— 

16 ‘‘(A) $1,000,000 for fiscal year 2014; 

17 ‘‘(B) $2,000,000 for fiscal year 2015; 

18 ‘‘(C) $3,000,000 for fiscal year 2016; 

19 ‘‘(D) $4,000,000 for fiscal year 2017; and 

20 ‘‘(E) $5,000,000 for fiscal year 2018. 

21 ‘‘(k) ADMINISTRATION.— 

22 ‘‘(1) DEPARTMENT.—The Secretary of Agri23 culture may not use more than 3 percent of the funds 

24 made available to carry out this section for a fiscal 

25 year for administrative expenses. 
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† HR 2642 EAS 

1 ‘‘(2) STATES.—A State receiving a grant under 

2 this section may not use more than 8 percent of the 

3 funds received under the grant for a fiscal year for 

4 administrative expenses.’’; and 

5 (5) in subsection (l) (as redesignated by para6 graph (3))— 

7 (A) in paragraph (2), by striking ‘‘and’’ at 

8 the end; 

9 (B) in paragraph (3), by striking the period 

10 at the end and inserting ‘‘; and’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(4) $70,000,000 for fiscal year 2014 and each 

13 fiscal year thereafter.’’. 

14 SEC. 10009. RECORDKEEPING, INVESTIGATIONS, AND EN15 FORCEMENT. 

16 The Organic Foods Production Act of 1990 is amended 

17 by inserting after section 2120 (7 U.S.C. 6519) the fol18 lowing: 

19 ‘‘SEC. 2120A. RECORDKEEPING, INVESTIGATIONS, AND EN20 FORCEMENT. 

21 ‘‘(a) RECORDKEEPING.— 

22 ‘‘(1) IN GENERAL.—Except as otherwise provided 

23 in this title, all persons, including producers, han24 dlers, and certifying agents, required to report infor25 mation to the Secretary under this title shall main-
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† HR 2642 EAS 

1 tain, and make available to the Secretary on the re2 quest of the Secretary, all contracts, agreements, re3 ceipts, and other records associated with the organic 

4 certification program established by the Secretary 

5 under this title. 

6 ‘‘(2) DURATION OF RECORDKEEPING REQUIRE7 MENT.—A record covered by paragraph (1) shall be 

8 maintained— 

9 ‘‘(A) by a person covered by this title, ex10 cept for a certifying agent, for a period of 5 

11 years beginning on the date of the creation of the 

12 record; and 

13 ‘‘(B) by a certifying agent, for a period of 

14 10 years beginning on the date of the creation of 

15 the record. 

16 ‘‘(b) CONFIDENTIALITY.— 

17 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

18 and except as provided in section 2107(a)(9) and as 

19 otherwise directed by the Secretary or the Attorney 

20 General for enforcement purposes, no officer, em21 ployee, or agent of the United States shall make avail22 able to the public information, statistics, or docu23 ments obtained from or made available by any person 

24 under this title, other than in a manner that ensures 

25 that confidentiality is preserved regarding the iden-
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† HR 2642 EAS 

1 tity of persons, including parties to a contract, and 

2 proprietary business information. 

3 ‘‘(2) VIOLATORS AND NATURE OF ACTIONS.—The 

4 Secretary may release the name of the violator and 

5 the nature of the actions triggering an order or rev6 ocation under subsection (e). 

7 ‘‘(c) INVESTIGATION.— 

8 ‘‘(1) IN GENERAL.—The Secretary may take such 

9 investigative actions as the Secretary considers to be 

10 necessary to carry out this title— 

11 ‘‘(A) to verify the accuracy of any informa12 tion reported or made available under this title; 

13 and 

14 ‘‘(B) to determine, with regard to actions, 

15 practices, or information required under this 

16 title, whether a person covered by this title has 

17 committed, or will commit, a violation of any 

18 provision of this title, including an order or reg19 ulation promulgated by the Secretary. 

20 ‘‘(2) INVESTIGATIVE POWERS.—The Secretary 

21 may administer oaths and affirmations, subpoena 

22 witnesses, compel attendance of witnesses, take evi23 dence, and require the production of any records re24 quired to be maintained under subsection (a) or sec-
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† HR 2642 EAS 

1 tion 2112(d) or 2116(c) that are relevant to the inves2 tigation. 

3 ‘‘(d) UNLAWFUL ACT.—It shall be unlawful and a vio4 lation of this title for any person covered by this title— 

5 ‘‘(1) to fail or refuse to provide, or delay the 

6 timely provision of, accurate information required by 

7 the Secretary under this section; 

8 ‘‘(2) to violate— 

9 ‘‘(A) an order of the Secretary; 

10 ‘‘(B) a revocation of the organic certifi11 cation of a producer or handler; or 

12 ‘‘(C) a revocation of the accreditation of a 

13 certifying agent; or 

14 ‘‘(3) to sell, or attempt to sell, a product that is 

15 represented as being organically produced under this 

16 title (including an order or regulation promulgated 

17 under this title) if in fact the product has been pro18 duced or handled by an operation that is not yet a 

19 certified organic producer or handler under this title. 

20 ‘‘(e) ENFORCEMENT.— 

21 ‘‘(1) ORDER.— 

22 ‘‘(A) IN GENERAL.—The Secretary may 

23 issue an order to stop the sale of an agricultural 

24 product that is labeled or otherwise represented 

25 as being organically produced in cases of sus-
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† HR 2642 EAS 

1 pected fraudulent or otherwise unlawful acts as 

2 described in subsection (d) that are willful, non3 correctable, or the subject of a combined non4 compliance and adverse action until the product 

5 can be verified— 

6 ‘‘(i) as meeting the national and State 

7 standards for organic production and han8 dling as provided in sections 2105 through 

9 2114; 

10 ‘‘(ii) as having been produced or han11 dled without the use of a prohibited sub12 stance listed under section 2118; and 

13 ‘‘(iii) as being produced and handled 

14 by a certified organic operation. 

15 ‘‘(B) AFFIRMATIVE DEFENSE TO STOP SALE

16 ORDER.— 

17 ‘‘(i) IN GENERAL.—If a producer or 

18 handler has a valid organic certification 

19 from the Department of Agriculture, the 

20 burden shall shift to the Secretary to prove 

21 fraud or unlawful activity that is willful, 

22 noncorrectable, or the subject of a combined 

23 noncompliance and adverse action before a 

24 stop sale order under subparagraph (A) 

25 may be implemented. 
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1 ‘‘(ii) INFORMATION.— 

2 ‘‘(I) IN GENERAL.—The producer 

3 or handler shall comply with any re4 quests of the Secretary for documents 

5 and other information not later than 

6 30 days after a request is made. 

7 ‘‘(II) NONCOMPLIANCE.—If the 

8 producer or handler fails to comply 

9 within the period described in sub10 clause (I), the Secretary may issue a 

11 stop sale order. 

12 ‘‘(C) APPEAL OF STOP SALE ORDER.— 

13 ‘‘(i) IN GENERAL.—If the Secretary 

14 proves fraud or unlawful activity that is 

15 willful, noncorrectable, or the subject of a 

16 combined noncompliance and adverse ac17 tion, the determination may be appealed 

18 through an expedited administrative appeal 

19 process. 

20 ‘‘(ii) DEADLINE.—The expedited ap21 peal process shall be completed not later 

22 than 30 days after the date of the issuance 

23 of the stop sale order. 
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† HR 2642 EAS 

1 ‘‘(iii) STAY.—Any stop sale order shall 

2 be stayed pending the 30 day-expedited ap3 peal under this subparagraph. 

4 ‘‘(2) CERTIFICATION OR ACCREDITATION.—After 

5 notice and opportunity for an administrative appeal 

6 under section 2121, if a violation described in sub7 paragraph (A)(ii) is determined to have occurred and 

8 is an unlawful act under subsection (d), the Secretary 

9 shall revoke the organic certification of the producer 

10 or handler, or the accreditation of the certifying 

11 agent. 

12 ‘‘(3) VIOLATION OF ORDER OR REVOCATION.—A 

13 person who violates an order to stop the sale of a 

14 product as an organically produced product under 

15 paragraph (1), or a revocation of certification or ac16 creditation under paragraph (2), shall be subject to 1 

17 or more of the penalties provided under subsections 

18 (a) and (b) of section 2120. 

19 ‘‘(f) APPEAL.— 

20 ‘‘(1) IN GENERAL.—An order under subsection 

21 (e)(1), or a revocation of certification or accreditation 

22 under subsection (e)(2)(B), shall be final and conclu23 sive unless the affected person files an appeal of the 

24 order— 
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† HR 2642 EAS 

1 ‘‘(A) first, to the administrative appeals 

2 process established under section 2121(a); and 

3 ‘‘(B) after a final decision of the Secretary, 

4 if the affected person so elects, to a United States 

5 district court as provided in section 2121(b) not 

6 later than 30 days after the date of the deter7 mination under subparagraph (A). 

8 ‘‘(2) STANDARD.—An order under subsection 

9 (e)(1)(A), or a revocation of certification or accredita10 tion under subsection (e)(2), shall be set aside if the 

11 order, or the revocation of certification or accredita12 tion, fails to comply with section 706 of title 5, 

13 United States Code. 

14 ‘‘(g) NONCOMPLIANCE.— 

15 ‘‘(1) IN GENERAL.—If a person covered by this 

16 title fails to obey an order, or a revocation of certifi17 cation or accreditation, described in subsection (f)(2) 

18 after the order or revocation has become final and 

19 conclusive or after the appropriate United States dis20 trict court has entered a final judgment in favor of 

21 the Secretary, the United States may apply to the ap22 propriate United States district court for enforcement 

23 of the order, or the revocation of certification or ac24 creditation. 
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† HR 2642 EAS 

1 ‘‘(2) ENFORCEMENT.—If the court determines 

2 that the order or revocation was lawfully made and 

3 duly served and that the person violated the order or 

4 revocation, the court shall enforce the order or revoca5 tion. 

6 ‘‘(3) CIVIL PENALTY.—If the court finds that the 

7 person violated the order or revocation, the person 

8 shall be subject to a civil penalty of not more than 

9 $10,000 for each offense.’’. 

10 SEC. 10010. REPORT ON HONEY. 

11 (a) IN GENERAL.—Not later than 180 days after the 

12 date of enactment of this Act, the Secretary, in consultation 

13 with affected stakeholders, shall submit to the Commissioner 

14 of Food and Drugs a report describing how an appropriate 

15 Federal standard for the identity of honey would promote 

16 honesty and fair dealing and would be in the interest of 

17 consumers, the honey industry, and United States agri18 culture. 

19 (b) CONTENTS.—In preparing the report under sub20 section (a), the Secretary shall take into consideration the 

21 March 2006 Standard of Identity citizens petition filed 

22 with the Food and Drug Administration, including any 

23 current industry amendments or clarifications necessary to 

24 update that 2006 petition. 
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† HR 2642 EAS 

1 SEC. 10011. REMOVAL OF AMS INSPECTION AUTHORITY 

2 OVER APPLES IN BULK BINS. 

3 (a) DEFINITION OF BULK BIN.—In this section, the 

4 term ‘‘bulk bin’’ means a bin that contains a quantity of 

5 apples weighing more than 100 pounds. 

6 (b) PROHIBITION.—Notwithstanding any other provi7 sion of law, the Secretary of Agriculture, acting through 

8 the Agricultural Marketing Service, shall have no authority 

9 to inspect apples in bulk bins prior to export to Canada. 

10 SEC. 10012. ORGANIC PRODUCT PROMOTION ORDERS. 

11 (a) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS

12 FROM PROMOTION ORDER ASSESSMENTS.—Section 501 of 

13 the Federal Agriculture Improvement and Reform Act of 

14 1996 (7 U.S.C. 7401) is amended by striking subsection (e) 

15 and inserting the following: 

16 ‘‘(e) EXEMPTION OF CERTIFIED ORGANIC PRODUCTS

17 FROM PROMOTION ORDER ASSESSMENTS.— 

18 ‘‘(1) IN GENERAL.—Notwithstanding any provi19 sion of a commodity promotion law, a person that 

20 produces, handles, markets, or imports organic prod21 ucts may be exempt from the payment of an assess22 ment under a commodity promotion law with respect 

23 to any agricultural commodity that is certified as ‘or24 ganic’ or ‘100 percent organic’ (as defined in part 

25 205 of title 7, Code of Federal Regulations (or suc26 cessor regulations)). 
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† HR 2642 EAS 

1 ‘‘(2) SPLIT OPERATIONS.—The exemption de2 scribed in paragraph (1) shall apply to an agricul3 tural commodity described in that paragraph regard4 less of whether the agricultural commodity subject to 

5 the exemption is produced, handled, or marketed by 

6 a person that also produces, handles, or markets con7 ventional or nonorganic agricultural products, in8 cluding conventional or nonorganic agricultural prod9 ucts of the same agricultural commodity as that for 

10 which the exemption is claimed. 

11 ‘‘(3) APPROVAL.—The Secretary shall approve 

12 the exemption of a person under this subsection if the 

13 person maintains a valid organic certificate issued 

14 under the Organic Foods Production Act of 1990 (7 

15 U.S.C. 6501 et seq.). 

16 ‘‘(4) TERMINATION OF EFFECTIVENESS.—This 

17 subsection shall be effective until the date on which 

18 the Secretary issues an organic commodity promotion 

19 order in accordance with subsection (f). 

20 ‘‘(5) REGULATIONS.—The Secretary shall pro21 mulgate regulations concerning eligibility and com22 pliance for an exemption under paragraph (1).’’. 

23 (b) ORGANIC COMMODITY PROMOTION ORDER.—Sec24 tion 501 of the Federal Agriculture Improvement and Re-
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† HR 2642 EAS 

1 form Act of 1996 (7 U.S.C. 7401) (as amended by subsection 

2 (a)) is amended by adding at the end the following: 

3 ‘‘(f) ORGANIC COMMODITY PROMOTION ORDER.— 

4 ‘‘(1) DEFINITIONS.—In this subsection: 

5 ‘‘(A) CERTIFIED ORGANIC FARM.—The term 

6 ‘certified organic farm’ has the meaning given 

7 the term in section 2103 of the Organic Foods 

8 Production Act of 1990 (7 U.S.C. 6502). 

9 ‘‘(B) COVERED PERSON.—The term ‘covered 

10 person’ means a producer, handler, marketer, or 

11 importer of an organic agricultural commodity. 

12 ‘‘(C) DUAL-COVERED AGRICULTURAL COM13 MODITY.—The term ‘dual-covered agricultural 

14 commodity’ means an agricultural commodity 

15 that— 

16 ‘‘(i) is produced on a certified organic 

17 farm; and 

18 ‘‘(ii) is covered under both— 

19 ‘‘(I) an organic commodity pro20 motion order issued under paragraph 

21 (2); and 

22 ‘‘(II) any other agricultural com23 modity promotion order issued under 

24 this section. 
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† HR 2642 EAS 

1 ‘‘(2) AUTHORIZATION.—The Secretary may issue 

2 an organic commodity promotion order under section 

3 514 that includes any agricultural commodity that— 

4 ‘‘(A) is— 

5 ‘‘(i) produced or handled (as defined in 

6 section 2103 of the Organic Foods Produc7 tion Act of 1990 (7 U.S.C. 6502)); and 

8 ‘‘(ii) certified to be sold or labeled as 

9 ‘organic’ or ‘100 percent organic’ (as de10 fined in part 205 of title 7, Code of Federal 

11 Regulations (or successor regulations)); or 

12 ‘‘(B) is imported with a valid organic cer13 tificate (as defined in that part). 

14 ‘‘(3) ELECTION.—If the Secretary issues an or15 ganic commodity promotion order described in para16 graph (2), a covered person may elect, for applicable 

17 dual-covered agricultural commodities and in the sole 

18 discretion of the covered person, whether to be assessed 

19 under the organic commodity promotion order or an20 other applicable agricultural commodity promotion 

21 order. 

22 ‘‘(4) REGULATIONS.—The Secretary shall pro23 mulgate regulations concerning eligibility and com24 pliance for an exemption under paragraph (1).’’. 
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† HR 2642 EAS 

1 (c) DEFINITION OF AGRICULTURAL COMMODITY.—Sec2 tion 513(1) of the Commodity Promotion, Research, and In3 formation Act of 1996 (7 U.S.C. 7412(1)) is amended— 

4 (1) by redesignating subparagraphs (E) and (F) 

5 as subparagraphs (F) and (G), respectively; and 

6 (2) by inserting after subparagraph (D) the fol7 lowing: 

8 ‘‘(E) products, as a class, that are produced 

9 on a certified organic farm (as defined in section 

10 2103 of the Organic Foods Production Act of 

11 1990 (7 U.S.C. 6502)) and that are certified to 

12 be sold or labeled as ‘organic’ or ‘100 percent or13 ganic’ (as defined in part 205 of title 7, Code of 

14 Federal Regulations (or successor regulations));’’. 

15 SEC. 10013. EFFECTIVE DATE. 

16 This title and the amendments made by this title take 

17 effect on October 1, 2013. 

18 TITLE XI—CROP INSURANCE 

19 SEC. 11001. SUPPLEMENTAL COVERAGE OPTION. 

20 (a) AVAILABILITY OF SUPPLEMENTAL COVERAGE OP21 TION.—Section 508(c) of the Federal Crop Insurance Act 

22 (7 U.S.C. 1508(c)) is amended by striking paragraph (3) 

23 and inserting the following: 
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† HR 2642 EAS 

1 ‘‘(3) YIELD AND LOSS BASIS OPTIONS.—A pro2 ducer shall have the option of purchasing additional 

3 coverage based on— 

4 ‘‘(A)(i) an individual yield and loss basis; 

5 or 

6 ‘‘(ii) an area yield and loss basis; or 

7 ‘‘(B) an individual yield and loss basis, 

8 supplemented with coverage based on an area 

9 yield and loss basis to cover part of the deduct10 ible under the individual yield and loss policy, 

11 as authorized in paragraph (4)(C).’’. 

12 (b) LEVEL OF COVERAGE.—Section 508(c) of the Fed13 eral Crop Insurance Act (7 U.S.C. 1508(c)) is amended by 

14 striking paragraph (4) and inserting the following: 

15 ‘‘(4) LEVEL OF COVERAGE.— 

16 ‘‘(A) DOLLAR DENOMINATION AND PER17 CENTAGE OF YIELD.—Except as provided in sub18 paragraph (C), the level of coverage— 

19 ‘‘(i) shall be dollar denominated; and 

20 ‘‘(ii) may be purchased at any level 

21 not to exceed 85 percent of the individual 

22 yield or 95 percent of the area yield (as de23 termined by the Corporation). 

24 ‘‘(B) INFORMATION.—The Corporation shall 

25 provide producers with information on cata-
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1 strophic risk and additional coverage in terms of 

2 dollar coverage (within the allowable limits of 

3 coverage provided in this paragraph). 

4 ‘‘(C) SUPPLEMENTAL COVERAGE OPTION.— 

5 ‘‘(i) IN GENERAL.—Notwithstanding 

6 subparagraph (A), in the case of the supple7 mental coverage option described in para8 graph (3)(B), the Corporation shall offer 

9 producers the opportunity to purchase cov10 erage in combination with an individual 

11 buy up policy or plan of insurance offered 

12 under this subtitle that would allow indem13 nities to be paid to a producer equal to part 

14 of the deductible under the policy or plan of 

15 insurance, if sufficient area data is avail16 able (as determined by the Corporation). 

17 ‘‘(ii) DEDUCTIBLE.—Coverage offered 

18 under this subparagraph shall be subject to 

19 a deductible in an amount equal to— 

20 ‘‘(I) in the case of a producer who 

21 participates in the agriculture risk 

22 coverage program under section 

23 1108(c) of the Agriculture Reform, 

24 Food, and Jobs Act of 2013, 22 percent 

25 of the expected value of the crop of the 
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† HR 2642 EAS 

1 producer covered by the underlying 

2 policy or plan of insurance, as deter3 mined by the Corporation; and 

4 ‘‘(II) in the case of all other pro5 ducers, 10 percent of the expected value 

6 of the crop of the producer covered by 

7 the underlying policy or plan of insur8 ance, as determined by the Corpora9 tion. 

10 ‘‘(iii) COVERAGE.—Subject to the de11 ductible imposed by clause (ii), coverage of12 fered under this subparagraph shall cover 

13 the first loss incurred by the producer, not 

14 to exceed the difference between— 

15 ‘‘(I) 100 percent; and 

16 ‘‘(II) the coverage level selected by 

17 the producer for the underlying policy 

18 or plan of insurance. 

19 ‘‘(iv) CALCULATION OF PREMIUM.— 

20 Notwithstanding subsection (d), the pre21 mium shall— 

22 ‘‘(I) be sufficient to cover antici23 pated losses and a reasonable reserve; 

24 and 
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† HR 2642 EAS 

1 ‘‘(II) include an amount for oper2 ating and administrative expenses es3 tablished in accordance with subsection 

4 (k)(4)(F).’’. 

5 (c) PAYMENT OF PORTION OF PREMIUM BY CORPORA6 TION.—Section 508(e)(2) of the Federal Crop Insurance Act 

7 (7 U.S.C. 1508(e)(2)) is amended by adding at the end the 

8 following: 

9 ‘‘(H) In the case of the supplemental cov10 erage option authorized in subsection (c)(4)(C), 

11 the amount shall be equal to the sum of— 

12 ‘‘(i) 65 percent of the additional pre13 mium associated with the coverage; and 

14 ‘‘(ii) the amount determined under 

15 subsection (c)(4)(C)(iv)(II) for the coverage 

16 to cover operating and administrative ex17 penses.’’. 

18 (d) CONFORMING AMENDMENT.—Section 508(k)(4)(F) 

19 of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) 

20 is amended by inserting ‘‘or authorized under subsection 

21 (c)(4)(C)’’ after ‘‘of this subparagraph’’. 

22 (e) EFFECTIVE DATE.—The Federal Crop Insurance 

23 Corporation shall begin to provide additional coverage 

24 based on an individual yield and loss basis, supplemented 
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† HR 2642 EAS 

1 with coverage based on an area yield and loss basis, not 

2 later than for the 2014 crop year. 

3 SEC. 11002. CROP MARGIN COVERAGE OPTION. 

4 (a) AVAILABILITY OF CROP MARGIN COVERAGE OP5 TION.—Section 508(c)(3) of the Federal Crop Insurance Act 

6 (7 U.S.C. 1508(c)) (as amended by section 11001(a)) is 

7 amended— 

8 (1) in subparagraph (A)(ii), by striking ‘‘or’’ at 

9 the end; 

10 (2) in subparagraph (B), by striking the period 

11 at the end and inserting ‘‘; or’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(C) a margin basis alone or in combina14 tion with— 

15 ‘‘(i) individual yield and loss coverage; 

16 or 

17 ‘‘(ii) area yield and loss coverage.’’. 

18 SEC. 11003. PREMIUM AMOUNTS FOR CATASTROPHIC RISK 

19 PROTECTION. 

20 Section 508(d)(2) of the Federal Crop Insurance Act 

21 (7 U.S.C. 1508(d)(2)) is amended by striking subparagraph 

22 (A) and inserting the following: 

23 ‘‘(A) In the case of catastrophic risk protec24 tion, the amount of the premium established by 

25 the Corporation for each crop for which cata-
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† HR 2642 EAS 

1 strophic risk protection is available shall be re2 duced by the percentage equal to the difference 

3 between the average loss ratio for the crop and 

4 100 percent, plus a reasonable reserve, as deter5 mined by the Corporation.’’. 

6 SEC. 11004. PERMANENT ENTERPRISE UNIT. 

7 Section 508(e)(5) of the Federal Crop Insurance Act 

8 (7 U.S.C. 1508(e)(5)) is amended by striking subparagraph 

9 (A) and inserting the following: 

10 ‘‘(A) IN GENERAL.—The Corporation may 

11 pay a portion of the premiums for plans or poli12 cies of insurance for which the insurable unit is 

13 defined on a whole farm or enterprise unit basis 

14 that is higher than would otherwise be paid in 

15 accordance with paragraph (2).’’. 

16 SEC. 11005. ENTERPRISE UNITS FOR IRRIGATED AND NON17 IRRIGATED CROPS. 

18 Section 508(e)(5) of the Federal Crop Insurance Act 

19 (7 U.S.C. 1508(e)(5)) is amended by adding at the end the 

20 following: 

21 ‘‘(D) NONIRRIGATED CROPS.—Beginning 

22 with the 2014 crop year, the Corporation shall 

23 make available separate enterprise units for irri24 gated and nonirrigated acreages of crops in 

25 counties.’’. 
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† HR 2642 EAS 

1 SEC. 11006. DATA COLLECTION. 

2 Section 508(g)(2) of the Federal Crop Insurance Act 

3 (7 U.S.C. 1508(g)(2)) is amended by adding at the end the 

4 following: 

5 ‘‘(E) SOURCES OF YIELD DATA.—To deter6 mine yields under this paragraph, the Corpora7 tion— 

8 ‘‘(i) shall use county data collected by 

9 the Risk Management Agency or the Na10 tional Agricultural Statistics Service, or 

11 both; or 

12 ‘‘(ii) if sufficient county data is not 

13 available, may use other data considered 

14 appropriate by the Secretary.’’. 

15 SEC. 11007. ADJUSTMENT IN ACTUAL PRODUCTION HIS16 TORY TO ESTABLISH INSURABLE YIELDS. 

17 Section 508(g)(4)(B) of the Federal Crop Insurance 

18 Act (7 U.S.C. 1508(g)(4)(B)) is amended— 

19 (1) in the matter preceding clause (i), by insert20 ing ‘‘for the 2013 crop year or any prior crop year, 

21 or 65 percent of the applicable transitional yield for 

22 the 2014 or any subsequent crop year,’’ after ‘‘transi23 tional yield’’; and 

24 (2) in clause (ii), by striking ‘‘60 percent of the 

25 applicable transitional yield’’ and inserting ‘‘the ap-
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† HR 2642 EAS 

1 plicable percentage of the transitional yield described 

2 in this subparagraph’’. 

3 SEC. 11008. SUBMISSION AND REVIEW OF POLICIES. 

4 Section 508(h)(1) of the Federal Crop Insurance Act 

5 (7 U.S.C. 1508(h)(1)) is amended— 

6 (1) by redesignating subparagraphs (A) and (B) 

7 as clauses (i) and (ii), respectively, and indenting ap8 propriately; 

9 (2) by striking ‘‘(1) IN GENERAL.—’’ and insert10 ing the following: 

11 ‘‘(1) SUBMISSION AND REVIEW OF POLICIES.— 

12 ‘‘(A) SUBMISSIONS.—In addition’’; and 

13 (3) by adding at the end the following: 

14 ‘‘(B) REVIEW.—The Corporation shall re15 view any policy developed under section 522(c) 

16 or any pilot program developed under section 

17 523 and submit the policy or program to the 

18 Board under this subsection if the Corporation, 

19 at the sole discretion of the Corporation, finds 

20 that the policy or program— 

21 ‘‘(i) will likely result in a viable and 

22 marketable policy consistent with this sub23 section; 
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† HR 2642 EAS 

1 ‘‘(ii) would provide crop insurance 

2 coverage in a significantly improved form; 

3 and 

4 ‘‘(iii) adequately protects the interests 

5 of producers.’’. 

6 SEC. 11009. BOARD REVIEW AND APPROVAL. 

7 (a) REVIEW AND APPROVAL BY THE BOARD.—Section 

8 508(h) of the Federal Crop Insurance Act (7 U.S.C. 

9 1508(h)) is amended by striking paragraph (3) and insert10 ing the following: 

11 ‘‘(3) REVIEW AND APPROVAL BY THE BOARD.— 

12 ‘‘(A) IN GENERAL.—A policy, plan of insur13 ance, or other material submitted to the Board 

14 under this subsection shall be reviewed by the 

15 Board and shall be approved by the Board for 

16 reinsurance and for sale by approved insurance 

17 providers to producers at actuarially appro18 priate rates and under appropriate terms and 

19 conditions if the Board, at the sole discretion of 

20 the Board, determines that— 

21 ‘‘(i) the interests of producers are ade22 quately protected; 

23 ‘‘(ii) the rates of premium and price 

24 election methodology are actuarially appro25 priate; 
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† HR 2642 EAS 

1 ‘‘(iii) the terms and conditions for the 

2 proposed policy or plan of insurance are 

3 appropriate and would not unfairly dis4 criminate among producers; 

5 ‘‘(iv) the proposed policy or plan of in6 surance will, at the sole discretion of the 

7 Board— 

8 ‘‘(I) likely result in a viable and 

9 marketable policy that can reasonably 

10 attain levels of participation similar to 

11 other like policies or plans of insur12 ance; 

13 ‘‘(II) provide crop insurance cov14 erage in a significantly improved form 

15 or in a manner that addresses a recog16 nized flaw or problem in an existing 

17 policy; or 

18 ‘‘(III) provide a new kind of cov19 erage for a commodity that previously 

20 had no available crop insurance, or 

21 has demonstrated a low level of partici22 pation under existing coverage; 

23 ‘‘(v) the proposed policy or plan of in24 surance will, at the sole discretion of the 

25 Board, not have a significant adverse im-
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† HR 2642 EAS 

1 pact on the crop insurance delivery system; 

2 and 

3 ‘‘(vi) the proposed policy or plan of in4 surance meets such other requirements as 

5 are determined appropriate by the Board. 

6 ‘‘(B) PRIORITIES.— 

7 ‘‘(i) ESTABLISHMENT.—The Board, at 

8 the sole discretion of the Board, may— 

9 ‘‘(I) annually establish priorities 

10 under this subsection that specify types 

11 of submissions needed to fulfill the 

12 portfolio of policies or plans of insur13 ance to be reviewed and approved 

14 under this subsection; and 

15 ‘‘(II) make the priorities available 

16 on the website of the Corporation. 

17 ‘‘(ii) PROCESS.— 

18 ‘‘(I) IN GENERAL.—Policies or 

19 plans of insurance that satisfy the pri20 orities established by the Board under 

21 this subsection shall be considered by 

22 the Board for approval prior to other 

23 submissions. 
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† HR 2642 EAS 

1 ‘‘(II) CONSIDERATIONS.—In ap2 proving policies or plans of insurance, 

3 the Board shall— 

4 ‘‘(aa) consider providing the 

5 highest priorities for policies or 

6 plans of insurance that address 

7 underserved commodities, includ8 ing commodities for which there is 

9 no insurance; and 

10 ‘‘(bb) consider providing the 

11 highest priorities for existing poli12 cies for which there is inadequate 

13 coverage or there exists low levels 

14 of participation. 

15 ‘‘(iii) OTHER CRITERIA.—The Board 

16 may establish such other criteria as the 

17 Board determines to meet the needs of pro18 ducers and the priorities of this subsection, 

19 consistent with the purposes of this sub20 title.’’. 

21 SEC. 11010. CONSULTATION. 

22 Section 508(h)(4) of the Federal Crop Insurance Act 

23 (7 U.S.C. 1508(h)) is amended by adding at the end the 

24 following: 

25 ‘‘(E) CONSULTATION.— 
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† HR 2642 EAS 

1 ‘‘(i) REQUIREMENT.—As part of the 

2 feasibility and research associated with the 

3 development of a policy or other material 

4 conducted prior to making a submission to 

5 the Board under this subsection, the sub6 mitter shall consult with groups rep7 resenting producers of agricultural commod8 ities in all major producing areas for the 

9 commodities to be served or potentially im10 pacted, either directly or indirectly. 

11 ‘‘(ii) SUBMISSION TO THE BOARD.— 

12 Any submission made to the Board under 

13 this subsection shall contain a summary 

14 and analysis of the feasibility and research 

15 findings from the impacted groups described 

16 in clause (i), including a summary assess17 ment of the support for or against develop18 ment of the policy and an assessment on the 

19 impact of the proposed policy to the general 

20 marketing and production of the crop from 

21 both a regional and national perspective. 

22 ‘‘(iii) EVALUATION BY THE BOARD.— 

23 In evaluating whether the interests of pro24 ducers are adequately protected pursuant to 

25 paragraph (3) with respect to an submis-
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† HR 2642 EAS 

1 sion made under this subsection, the Board 

2 shall review the information provided pur3 suant to clause (ii) to determine if the sub4 mission will create adverse market distor5 tions with respect to the production of com6 modities that are the subject of the submis7 sion.’’. 

8 SEC. 11011. BUDGET LIMITATIONS ON RENEGOTIATION OF 

9 THE STANDARD REINSURANCE AGREEMENT. 

10 Section 508(k)(8) of the Federal Crop Insurance Act 

11 (7 U.S.C. 1508(k)(8)) is amended by adding at the end the 

12 following: 

13 ‘‘(F) BUDGET.— 

14 ‘‘(i) IN GENERAL.—The Board shall 

15 ensure that any Standard Reinsurance 

16 Agreement negotiated under subparagraph 

17 (A)(ii), as compared to the previous Stand18 ard Reinsurance Agreement— 

19 ‘‘(I) to the maximum extent prac20 ticable, shall be budget neutral; and 

21 ‘‘(II) in no event, may signifi22 cantly depart from budget neutrality. 

23 ‘‘(ii) USE OF SAVINGS.—To the extent 

24 that any budget savings is realized in the 

25 renegotiation of a Standard Reinsurance 
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† HR 2642 EAS 

1 Agreement under subparagraph (A)(ii), and 

2 the savings are determined not to be a sig3 nificant departure from budget neutrality 

4 under clause (i), the savings shall be used 

5 for programs administered or managed by 

6 the Risk Management Agency.’’. 

7 SEC. 11012. TEST WEIGHT FOR CORN. 

8 Section 508(m) of the Federal Crop Insurance Act (7 

9 U.S.C. 1508(m)) is amended by adding at the end the fol10 lowing: 

11 ‘‘(6) TEST WEIGHT FOR CORN.— 

12 ‘‘(A) IN GENERAL.—The Corporation shall 

13 establish procedures to allow insured producers 

14 not more than 120 days to settle claims, in ac15 cordance with procedures established by the Sec16 retary, involving corn that is determined to have 

17 low test weight. 

18 ‘‘(B) IMPLEMENTATION.—As soon as prac19 ticable after the date of enactment of this para20 graph, the Corporation shall implement subpara21 graph (A) on a regional basis based on market 

22 conditions and the interests of producers. 

23 ‘‘(C) TERMINATION OF EFFECTIVENESS.— 

24 The authority provided by this paragraph termi25 nates effective on the date that is 5 years after 
1054 

† HR 2642 EAS 

1 the date on which subparagraph (A) is imple2 mented.’’. 

3 SEC. 11013. STACKED INCOME PROTECTION PLAN FOR PRO4 DUCERS OF UPLAND COTTON. 

5 (a) AVAILABILITY OF STACKED INCOME PROTECTION

6 PLAN.—The Federal Crop Insurance Act is amended by in7 serting after section 508A (7 U.S.C. 1508a) the following: 

8 ‘‘SEC. 508B. STACKED INCOME PROTECTION PLAN FOR PRO9 DUCERS OF UPLAND COTTON. 

10 ‘‘(a) AVAILABILITY.—Beginning not later than the 

11 2014 crop of upland cotton, if practicable, the Corporation 

12 shall make available to producers of maximum eligible acres 

13 of upland cotton an additional policy (to be known as the 

14 ‘Stacked Income Protection Plan’), which shall provide cov15 erage consistent with the Group Risk Income Protection 

16 Plan (and the associated Harvest Revenue Option Endorse17 ment) offered by the Corporation for the 2011 crop year. 

18 ‘‘(b) REQUIRED TERMS.—The Corporation may mod19 ify the Stacked Income Protection Plan on a program-wide 

20 basis, except that the Stacked Income Protection Plan shall 

21 comply with the following requirements: 

22 ‘‘(1)(A) Provide coverage for revenue loss of not 

23 more than 30 percent of expected county revenue, 

24 specified in increments of 5 percent. 
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† HR 2642 EAS 

1 ‘‘(B) The deductible is the minimum percent of 

2 revenue loss at which indemnities are triggered under 

3 the plan, not to be less than 10 percent of the expected 

4 county revenue. 

5 ‘‘(C) Once the deductible is met, any losses in ex6 cess of the deductible will be paid up to the coverage 

7 selected by the producer. 

8 ‘‘(2) Be offered to producers of upland cotton in 

9 all counties with upland cotton production— 

10 ‘‘(A) at a county-wide level to the fullest ex11 tent practicable; or 

12 ‘‘(B) in counties that lack sufficient data, 

13 on the basis of such larger geographical area as 

14 the Corporation determines to provide sufficient 

15 data for purposes of providing the coverage. 

16 ‘‘(3) Be purchased in addition to any other indi17 vidual or area coverage in effect on the producer’s 

18 acreage or as a stand-alone policy, except that if a 

19 producer has an individual or area coverage for the 

20 same acreage, the maximum coverage available under 

21 the Stacked Income Protection Plan shall not exceed 

22 the deductible for the individual or area coverage. 

23 ‘‘(4) Establish coverage based on— 

24 ‘‘(A) an expected price that is the expected 

25 price established under existing Group Risk In-
1056 

† HR 2642 EAS 

1 come Protection or area wide policy offered by 

2 the Corporation for the applicable county (or 

3 area) and crop year; and 

4 ‘‘(B) an expected county yield that is the 

5 higher of— 

6 ‘‘(i) the expected county yield estab7 lished for the existing area-wide plans of8 fered by the Corporation for the applicable 

9 county (or area) and crop year (or, in geo10 graphic areas where area-wide plans are 

11 not offered, an expected yield determined in 

12 a manner consistent with those of area-wide 

13 plans); or 

14 ‘‘(ii)(I) the average of the applicable 

15 yield data for the county (or area) for the 

16 most recent 5 years, excluding the highest 

17 and lowest observations, from the Risk Man18 agement Agency or the National Agricul19 tural Statistics, or both; or 

20 ‘‘(II) if sufficient county data is not 

21 available, such other data considered appro22 priate by the Secretary. 

23 ‘‘(5) Use a multiplier factor to establish max24 imum protection per acre (referred to as a ‘protection 

25 factor’) of not more than 120 percent. 
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† HR 2642 EAS 

1 ‘‘(6) Pay an indemnity based on the amount 

2 that the expected county revenue exceeds the actual 

3 county revenue, as applied to the individual coverage 

4 of the producer. Indemnities under the Stacked In5 come Protection Plan shall not include or overlap the 

6 amount of the deductible selected under paragraph 

7 (1). 

8 ‘‘(7) To the maximum extent practicable, in all 

9 counties for which data are available, establish sepa10 rate coverage for irrigated and nonirrigated practices. 

11 ‘‘(8) Notwithstanding section 508(d), include a 

12 premium that— 

13 ‘‘(A) is sufficient to cover anticipated losses 

14 and a reasonable reserve; and 

15 ‘‘(B) includes an amount for operating and 

16 administrative expenses established in accord17 ance with section 508(k)(4)(F). 

18 ‘‘(c) RELATION TO OTHER COVERAGES.— 

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), the Stacked Income Protection Plan is in 

21 addition to all other coverages available to producers 

22 of upland cotton. 

23 ‘‘(2) LIMITATION.—Acreage of upland cotton in24 sured under the Supplemental Coverage Option shall 
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† HR 2642 EAS 

1 not be eligible for the Stacked Income Protection 

2 Plan. 

3 ‘‘(d) PAYMENT OF PORTION OF PREMIUM BY COR4 PORATION.—Subject to section 508(e)(4), the amount of pre5 mium paid by the Corporation for all qualifying coverage 

6 levels of the Stacked Income Protection Plan shall be— 

7 ‘‘(1) 80 percent of the amount of the premium es8 tablished under subsection (b)(8)(A) for the coverage 

9 level selected; and 

10 ‘‘(2) the amount determined under subsection 

11 (b)(8)(B) to cover administrative and operating ex12 penses.’’. 

13 (b) CONFORMING AMENDMENT.—Section 508(k)(4)(F) 

14 of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(F)) 

15 (as amended by section 11001(d)) is amended by inserting 

16 ‘‘or under section 508B’’ after ‘‘subsection (c)(4)(C)’’. 

17 SEC. 11014. PEANUT REVENUE CROP INSURANCE. 

18 The Federal Crop Insurance Act is amended by insert19 ing after section 508B (as added by section 11013(a)) the 

20 following: 

21 ‘‘SEC. 508C. PEANUT REVENUE CROP INSURANCE. 

22 ‘‘(a) IN GENERAL.—Effective beginning with the 2014 

23 crop year, the Risk Management Agency and the Corpora24 tion shall make available to producers of peanuts a revenue 

25 crop insurance program for peanuts. 
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† HR 2642 EAS 

1 ‘‘(b) EFFECTIVE PRICE.— 

2 ‘‘(1) IN GENERAL.—Subject to paragraph (2), for 

3 purposes of the policies and plans of insurance offered 

4 under subsections (a) and (b) of section 508, the effec5 tive price for peanuts shall be equal to the Rotterdam 

6 price index for peanuts, as adjusted to reflect the 

7 farmer stock price of peanuts in the United States. 

8 ‘‘(2) ADJUSTMENTS.— 

9 ‘‘(A) IN GENERAL.—The effective price for 

10 peanuts established under paragraph (1) may be 

11 adjusted by the Risk Management Agency and 

12 the Corporation to correct distortions. 

13 ‘‘(B) ADMINISTRATION.—If an adjustment 

14 is made under subparagraph (A), the Risk Man15 agement Agency and the Corporation shall— 

16 ‘‘(i) make the adjustment in an open 

17 and transparent manner; and 

18 ‘‘(ii) submit to the Committee on Agri19 culture of the House of Representatives and 

20 the Committee on Agriculture, Nutrition, 

21 and Forestry of the Senate a report that de22 scribes the reasons for the adjustment.’’. 

23 SEC. 11015. AUTHORITY TO CORRECT ERRORS. 

24 Section 515(c) of the Federal Crop Insurance Act (7 

25 U.S.C. 1515(c)) is amended— 
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† HR 2642 EAS 

1 (1) in the first sentence, by striking ‘‘The Sec2 retary’’ and inserting the following: 

3 ‘‘(1) IN GENERAL.—The Secretary’’; 

4 (2) in the second sentence, by striking ‘‘Begin5 ning with’’ and inserting the following: 

6 ‘‘(2) FREQUENCY.—Beginning with’’; and 

7 (3) by adding at the end the following: 

8 ‘‘(3) CORRECTIONS.— 

9 ‘‘(A) IN GENERAL.—The Corporation shall 

10 establish procedures that allow an agent and ap11 proved insurance provider within a reasonable 

12 amount of time following the applicable sales 

13 closing date to correct information regarding the 

14 entity name, social security number, tax identi15 fication number, or such other eligibility infor16 mation as determined by the Corporation that is 

17 provided by a producer for the purpose of obtain18 ing coverage under any policy or plan of insur19 ance made available under this subtitle to ensure 

20 that the eligibility information is consistent with 

21 the information reported by the producer to the 

22 Farm Service Agency. 

23 ‘‘(B) LIMITATION.—In accordance with the 

24 procedures of the Corporation, procedures under 

25 subparagraph (A) may include any subsequent 
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† HR 2642 EAS 

1 correction to the eligibility information described 

2 in that subparagraph made by the Farm Service 

3 Agency if the corrections do not allow the pro4 ducer— 

5 ‘‘(i) to obtain a disproportionate ben6 efit under the crop insurance program or 

7 any related program of the Department of 

8 Agriculture; 

9 ‘‘(ii) to avoid ineligibility require10 ments for insurance; or 

11 ‘‘(iii) to avoid an obligation or re12 quirement under any Federal or State 

13 law.’’. 

14 SEC. 11016. IMPLEMENTATION. 

15 Section 515 of the Federal Crop Insurance Act (7 

16 U.S.C. 1515) is amended— 

17 (1) in subsection (j), by striking paragraph (1) 

18 and inserting the following: 

19 ‘‘(1) SYSTEMS MAINTENANCE AND UPGRADES.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 maintain and upgrade the information manage22 ment systems of the Corporation used in the ad23 ministration and enforcement of this subtitle. 

24 ‘‘(B) REQUIREMENT.— 
1062 

† HR 2642 EAS 

1 ‘‘(i) IN GENERAL.—In maintaining 

2 and upgrading the systems, the Secretary 

3 shall ensure that new hardware and soft4 ware are compatible with the hardware and 

5 software used by other agencies of the De6 partment to maximize data sharing and 

7 promote the purposes of this section. 

8 ‘‘(ii) ACREAGE REPORT STREAMLINING

9 INITIATIVE PROJECT.—As soon as prac10 ticable, the Secretary shall develop and im11 plement an acreage report streamlining ini12 tiative project to allow producers to report 

13 acreage and other information directly to 

14 the Department.’’; and 

15 (2) in subsection (k), by striking paragraph (1) 

16 and inserting the following: 

17 ‘‘(1) INFORMATION TECHNOLOGY.— 

18 ‘‘(A) IN GENERAL.—For purposes of sub19 section (j)(1), the Corporation may use, from 

20 amounts made available from the insurance fund 

21 established under section 516(c), not more 

22 than— 

23 ‘‘(i)(I) for fiscal year 2014, 

24 $25,000,000; and 
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† HR 2642 EAS 

1 ‘‘(II) for each of fiscal years 2015 

2 through 2018, $10,000,000; or 

3 ‘‘(ii) if the Acreage Crop Reporting 

4 Streamlining Initiative (ACRSI) project is 

5 substantially completed by September 30, 

6 2013, not more than $15,000,000 for each of 

7 fiscal years 2015 through 2018. 

8 ‘‘(B) NOTIFICATION.—Not later than July 

9 1, 2013, the Secretary shall notify the Committee 

10 on Agriculture of the House of Representatives 

11 and the Committee on Agriculture, Nutrition, 

12 and Forestry of the Senate on the status of the 

13 substantial completion of the Acreage Crop Re14 porting Streamlining Initiative (ACRSI) 

15 project.’’. 

16 SEC. 11017. CROP INSURANCE FRAUD. 

17 Section 516(b)(2) of the Federal Crop Insurance Act 

18 (7 U.S.C. 1516(b)(2)) is amended by adding at the end the 

19 following: 

20 ‘‘(C) REVIEWS, COMPLIANCE, AND PROGRAM

21 INTEGRITY.—For each of the 2014 and subse22 quent reinsurance years, the Corporation may 

23 use the insurance fund established under sub24 section (c), but not to exceed $5,000,000 for each 

25 fiscal year, to pay the following: 
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† HR 2642 EAS 

1 ‘‘(i) Costs to reimburse expenses in2 curred for the review of policies, plans of in3 surance, and related materials and to assist 

4 the Corporation in maintaining program 

5 integrity. 

6 ‘‘(ii) In addition to other available 

7 funds, costs incurred by the Risk Manage8 ment Agency for compliance operations as9 sociated with activities authorized under 

10 this title.’’. 

11 SEC. 11018. APPROVAL OF COSTS FOR RESEARCH AND DE12 VELOPMENT. 

13 Section 522(b)(2) of the Federal Crop Insurance Act 

14 (7 U.S.C. 1522(b)(2)) is amended by striking subparagraph 

15 (E) and inserting the following: 

16 ‘‘(E) APPROVAL.— 

17 ‘‘(i) IN GENERAL.—The Board may 

18 approve up to 50 percent of the projected 

19 total research and development costs to be 

20 paid in advance to an applicant, in accord21 ance with the procedures developed by the 

22 Board for the making of the payments, if, 

23 after consideration of the reviewer reports 

24 described in subparagraph (D) and such 
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† HR 2642 EAS 

1 other information as the Board determines 

2 appropriate, the Board determines that— 

3 ‘‘(I) the concept, in good faith, 

4 will likely result in a viable and mar5 ketable policy consistent with section 

6 508(h); 

7 ‘‘(II) at the sole discretion of the 

8 Board, the concept, if developed into a 

9 policy and approved by the Board, 

10 would provide crop insurance cov11 erage— 

12 ‘‘(aa) in a significantly im13 proved form or that addresses a 

14 unique need of agricultural pro15 ducers; 

16 ‘‘(bb) to a crop or region not 

17 traditionally served by the Fed18 eral crop insurance program; or 

19 ‘‘(cc) in a form that address20 es a recognized flaw or problem in 

21 the program; 

22 ‘‘(III) the applicant agrees to pro23 vide such reports as the Corporation 

24 determines are necessary to monitor 

25 the development effort; 
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1 ‘‘(IV) the proposed budget and 

2 timetable are reasonable, as determined 

3 by the Board; and 

4 ‘‘(V) the concept proposal meets 

5 any other requirements that the Board 

6 determines appropriate. 

7 ‘‘(ii) WAIVER.—The Board may waive 

8 the 50-percent limitation and, upon request 

9 of the submitter after the submitter has 

10 begun research and development activities, 

11 the Board may approve an additional 25 

12 percent advance payment to the submitter 

13 for research and development costs, if, at the 

14 sole discretion of the Board, the Board de15 termines that— 

16 ‘‘(I) the intended policy or plan of 

17 insurance developed by the submitter 

18 will provide coverage for a region or 

19 crop that is underserved by the Federal 

20 crop insurance program, including 

21 specialty crops; 

22 ‘‘(II) the submitter is making sat23 isfactory progress towards developing a 

24 viable and marketable policy or plan of 
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† HR 2642 EAS 

1 insurance consistent with section 

2 508(h); and 

3 ‘‘(III) the submitter does not have 

4 sufficient financial resources to com5 plete the development of the submission 

6 into a viable and marketable policy or 

7 plan of insurance consistent with sec8 tion 508(h).’’. 

9 SEC. 11019. WHOLE FARM RISK MANAGEMENT INSURANCE. 

10 Section 522(c) of the Federal Crop Insurance Act (7 

11 U.S.C. 1522(c)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(18) WHOLE FARM DIVERSIFIED RISK MANAGE14 MENT INSURANCE PLAN.— 

15 ‘‘(A) IN GENERAL.—The Corporation shall 

16 conduct activities or enter into contracts to carry 

17 out research and development to develop a whole 

18 farm risk management insurance plan, with a 

19 liability limitation of $1,500,000, that allows a 

20 diversified crop or livestock producer the option 

21 to qualify for an indemnity if actual gross farm 

22 revenue is below 85 percent of the average gross 

23 farm revenue or the expected gross farm revenue 

24 that can reasonably be expected of the producer, 

25 as determined by the Corporation. 
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† HR 2642 EAS 

1 ‘‘(B) ELIGIBLE PRODUCERS.—The Corpora2 tion shall permit producers (including direct-to3 consumer marketers, and producers servicing 

4 local and regional and farm identity-preserved 

5 markets) who produce multiple agricultural com6 modities, including specialty crops, industrial 

7 crops, livestock, and aquaculture products, to 

8 participate in the plan in lieu of any other plan 

9 under this subtitle. 

10 ‘‘(C) DIVERSIFICATION.—The Corporation 

11 may provide diversification-based additional 

12 coverage payment rates, premium discounts, or 

13 other enhanced benefits in recognition of the risk 

14 management benefits of crop and livestock diver15 sification strategies for producers that grow mul16 tiple crops or that may have income from the 

17 production of livestock that uses a crop grown on 

18 the farm. 

19 ‘‘(D) MARKET READINESS.—The Corpora20 tion may include coverage for the value of any 

21 packing, packaging, or any other similar on22 farm activity the Corporation determines to be 

23 the minimum required in order to remove the 

24 commodity from the field. 
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† HR 2642 EAS 

1 ‘‘(E) REPORT.—Not later than 2 years after 

2 the date of enactment of this paragraph, the Cor3 poration shall submit to the Committee on Agri4 culture of the House of Representatives and the 

5 Committee on Agriculture, Nutrition, and For6 estry of the Senate a report that describes the re7 sults and feasibility of the research and develop8 ment conducted under this paragraph, including 

9 an analysis of potential adverse market distor10 tions.’’. 

11 SEC. 11020. STUDY OF FOOD SAFETY INSURANCE. 

12 Section 522(c) of the Federal Crop Insurance Act (7 

13 U.S.C. 1522(c)) (as amended by section 11018) is amended 

14 by adding at the end the following: 

15 ‘‘(19) STUDY OF FOOD SAFETY INSURANCE.— 

16 ‘‘(A) IN GENERAL.—The Corporation shall 

17 offer to enter into a contract with 1 or more 

18 qualified entities to conduct a study to determine 

19 whether offering policies that provide coverage 

20 for specialty crops from food safety and contami21 nation issues would benefit agricultural pro22 ducers. 

23 ‘‘(B) SUBJECT.—The study described in 

24 subparagraph (A) shall evaluate policies and 

25 plans of insurance coverage that provide protec-
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† HR 2642 EAS 

1 tion for production or revenue impacted by food 

2 safety concerns including, at a minimum, gov3 ernment, retail, or national consumer group an4 nouncements of a health advisory, removal, or 

5 recall related to a contamination concern. 

6 ‘‘(C) REPORT.—Not later than 1 year after 

7 the date of enactment of this paragraph, the Cor8 poration shall submit to the Committee on Agri9 culture of the House of Representatives and the 

10 Committee on Agriculture, Nutrition, and For11 estry of the Senate a report that describes the re12 sults of the study conducted under subparagraph 

13 (A).’’. 

14 SEC. 11021. CROP INSURANCE FOR LIVESTOCK. 

15 Section 522(c) of the Federal Crop Insurance Act (as 

16 amended by section 11019) is amended by adding at the 

17 end the following: 

18 ‘‘(20) STUDY ON SWINE CATASTROPHIC DISEASE

19 PROGRAM.— 

20 ‘‘(A) IN GENERAL.—The Corporation shall 

21 contract with a qualified person to conduct a 

22 study to determine the feasibility of insuring 

23 swine producers for a catastrophic event. 

24 ‘‘(B) REPORT.—Not later than 1 year after 

25 the date of the enactment of this paragraph, the 
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† HR 2642 EAS 

1 Corporation shall submit to the Committee on 

2 Agriculture of the House of Representatives and 

3 the Committee on Agriculture, Nutrition, and 

4 Forestry of the Senate a report that describes the 

5 results of the study conducted under subpara6 graph (A).’’. 

7 SEC. 11022. MARGIN COVERAGE FOR CATFISH. 

8 Section 522(c) of the Federal Crop Insurance Act (as 

9 amended by section 11020) is amended by adding at the 

10 end the following: 

11 ‘‘(21) MARGIN COVERAGE FOR CATFISH.— 

12 ‘‘(A) IN GENERAL.—The Corporation shall 

13 offer to enter into a contract with a qualified en14 tity to conduct research and development regard15 ing a policy to insure producers against reduc16 tion in the margin between the market value of 

17 catfish and selected costs incurred in the produc18 tion of catfish. 

19 ‘‘(B) ELIGIBILITY.—Eligibility for the pol20 icy described in subparagraph (A) shall be lim21 ited to freshwater species of catfish that are 

22 propagated and reared in controlled or selected 

23 environments. 

24 ‘‘(C) IMPLEMENTATION.—The Board shall 

25 review the policy described in subparagraph (B) 
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† HR 2642 EAS 

1 under subsection 508(h) and approve the policy 

2 if the Board finds that the policy— 

3 ‘‘(i) will likely result in a viable and 

4 marketable policy consistent with this sub5 section; 

6 ‘‘(ii) would provide crop insurance 

7 coverage in a significantly improved form; 

8 ‘‘(iii) adequately protects the interests 

9 of producers; and 

10 ‘‘(iv) the proposed policy meets other 

11 requirements of this subtitle determined ap12 propriate by the Board.’’. 

13 SEC. 11023. POULTRY BUSINESS DISRUPTION INSURANCE 

14 POLICY. 

15 Section 522(c) of the Federal Crop Insurance Act (7 

16 U.S.C. 1522(c)) (as amended by section 11021) is amended 

17 by adding at the end the following: 

18 ‘‘(22) POULTRY BUSINESS DISRUPTION INSUR19 ANCE POLICY AND CATASTROPHIC DISEASE PRO20 GRAM.— 

21 ‘‘(A) DEFINITION OF POULTRY.—In this 

22 paragraph, the term ‘poultry’ has the meaning 

23 given the term in section 2(a) of the Packers and 

24 Stockyards Act, 1921 (7 U.S.C. 182(a)). 
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† HR 2642 EAS 

1 ‘‘(B) AUTHORITY.—The Corporation shall 

2 offer to enter into 1 or more contracts with 

3 qualified entities to carry out— 

4 ‘‘(i) a study to determine the feasi5 bility of insuring commercial poultry pro6 duction against business disruptions caused 

7 by integrator bankruptcy; and 

8 ‘‘(ii) a study to determine the feasi9 bility of insuring poultry producers for a 

10 catastrophic event. 

11 ‘‘(C) BUSINESS DISRUPTION STUDY.—The 

12 study described in subparagraph (B)(i) shall— 

13 ‘‘(i) evaluate the market place for busi14 ness disruption insurance that is available 

15 to poultry producers; 

16 ‘‘(ii) assess the feasibility of a policy to 

17 allow producers to ensure against a portion 

18 of losses from loss under contract due to 

19 business disruption from integrator bank20 ruptcy; and 

21 ‘‘(iii) analyze the costs to the Federal 

22 Government of a Federal business disrup23 tion insurance program for poultry pro24 ducers. 
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† HR 2642 EAS 

1 ‘‘(D) REPORTS.—Not later than 1 year 

2 after the date of enactment of this paragraph, the 

3 Corporation shall submit to the Committee on 

4 Agriculture of the House of Representatives and 

5 the Committee on Agriculture, Nutrition, and 

6 Forestry of the Senate a report that describes the 

7 results of— 

8 ‘‘(i) the study carried out under sub9 paragraph (B)(i); and 

10 ‘‘(ii) the study carried out under sub11 paragraph (B)(ii).’’. 

12 SEC. 11024. STUDY OF CROP INSURANCE FOR SEAFOOD 

13 HARVESTERS. 

14 Section 522(c) of the Federal Crop Insurance Act (7 

15 U.S.C. 1522(c)) (as amended by section 11022) is amended 

16 by adding at the end the following: 

17 ‘‘(23) FEASIBILITY STUDY TO ASSIST SEAFOOD

18 HARVESTERS.— 

19 ‘‘(A) IN GENERAL.—The Corporation shall 

20 offer to enter into a contract with a qualified en21 tity to conduct a feasibility study to determine 

22 the best method of insuring seafood harvesters, 

23 including such data collection and analysis as is 

24 necessary to conduct the study. 
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† HR 2642 EAS 

1 ‘‘(B) REPORT.—Not later than 1 year after 

2 the date of enactment of this subsection, the Cor3 poration shall submit to the Committee on Agri4 culture of the House of Representatives and the 

5 Committee on Agriculture, Nutrition, and For6 estry of the Senate a report describing the results 

7 of the study.’’. 

8 SEC. 11025. BIOMASS AND SWEET SORGHUM ENERGY CROP 

9 INSURANCE POLICIES. 

10 Section 522(c) of the Federal Crop Insurance Act of 

11 1938 (7 U.S.C. 1522(c)) (as amended by section 11023) is 

12 amended by adding at the end the following: 

13 ‘‘(24) BIOMASS AND SWEET SORGHUM ENERGY

14 CROP INSURANCE POLICIES.— 

15 ‘‘(A) AUTHORITY.—The Corporation shall 

16 offer to enter into 1 or more contracts with 

17 qualified entities to carry out research and devel18 opment regarding— 

19 ‘‘(i) a policy to insure biomass sor20 ghum that is grown expressly for the pur21 pose of producing a feedstock for renewable 

22 biofuel, renewable electricity, or biobased 

23 products; and 
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† HR 2642 EAS 

1 ‘‘(ii) a policy to insure sweet sorghum 

2 that is grown for a purpose described in 

3 clause (i). 

4 ‘‘(B) RESEARCH AND DEVELOPMENT.—Re5 search and development with respect to each of 

6 the policies described in subparagraph (A) shall 

7 evaluate the effectiveness of risk management 

8 tools for the production of biomass sorghum or 

9 sweet sorghum, including policies and plans of 

10 insurance that— 

11 ‘‘(i) are based on market prices and 

12 yields; 

13 ‘‘(ii) to the extent that insufficient 

14 data exist to develop a policy based on mar15 ket prices and yields, are based on the use 

16 of weather indices, including, at a min17 imum, excessive or inadequate rainfall, to 

18 protect the interests of crop producers; and 

19 ‘‘(iii) provide protection for production 

20 or revenue losses, or both.’’. 

21 SEC. 11026. ALFALFA CROP INSURANCE POLICY. 

22 Section 522(c) of the Federal Crop Insurance Act (7 

23 U.S.C. 1522(c)) (as amended by section 11024) is amended 

24 by adding at the end the following: 

25 ‘‘(25) ALFALFA CROP INSURANCE POLICY.— 
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† HR 2642 EAS 

1 ‘‘(A) IN GENERAL.—The Corporation shall 

2 offer to enter into 1 or more contracts with 

3 qualified entities to carry out research and devel4 opment regarding a policy to insure alfalfa. 

5 ‘‘(B) REPORT.—Not later than 1 year after 

6 the date of enactment of this paragraph, the Cor7 poration shall submit to the Committee on Agri8 culture of the House of Representatives and the 

9 Committee on Agriculture, Nutrition, and For10 estry of the Senate a report that describes the re11 sults of the study conducted under subparagraph 

12 (A).’’. 

13 SEC. 11027. CROP INSURANCE FOR ORGANIC CROPS. 

14 (a) IN GENERAL.—Section 508(c)(6) of the Federal 

15 Crop Insurance Act (7 U.S.C. 1508(c)(6)) is amended by 

16 adding at the end the following: 

17 ‘‘(D) ORGANIC CROPS.— 

18 ‘‘(i) IN GENERAL.—As soon as possible, 

19 but not later than the 2015 reinsurance 

20 year, the Corporation shall offer producers 

21 of organic crops price elections for all or22 ganic crops produced in compliance with 

23 standards issued by the Department of Ag24 riculture under the national organic pro25 gram established under the Organic Foods 
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† HR 2642 EAS 

1 Production Act of 1990 (7 U.S.C. 6501 et 

2 seq.) that reflect the actual retail or whole3 sale prices, as appropriate, received by pro4 ducers for organic crops, as determined by 

5 the Secretary using all relevant sources of 

6 information. 

7 ‘‘(ii) ANNUAL REPORT.—The Corpora8 tion shall submit to the Committee on Agri9 culture of the House of Representatives and 

10 the Committee on Agriculture, Nutrition, 

11 and Forestry of the Senate an annual re12 port on progress made in developing and 

13 improving Federal crop insurance for or14 ganic crops, including— 

15 ‘‘(I) the numbers and varieties of 

16 organic crops insured; 

17 ‘‘(II) the progress of implementing 

18 the price elections required under this 

19 subparagraph, including the rate at 

20 which additional price elections are 

21 adopted for organic crops; 

22 ‘‘(III) the development of new in23 surance approaches relevant to organic 

24 producers; and 
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† HR 2642 EAS 

1 ‘‘(IV) any recommendations the 

2 Corporation considers appropriate to 

3 improve Federal crop insurance cov4 erage for organic crops.’’. 

5 (b) CONFORMING AMENDMENT.—Section 522(c) of the 

6 Federal Crop Insurance Act (7 U.S.C. 1522(c)) (as amend7 ed by section 11024) is amended— 

8 (1) by striking paragraph (10); and 

9 (2) by redesignating paragraphs (11) through 

10 (24) as paragraphs (10) through (23), respectively. 

11 SEC. 11028. RESEARCH AND DEVELOPMENT. 

12 (a) IN GENERAL.—Section 522(c) of the Federal Crop 

13 Insurance Act (7 U.S.C. 1522(c)) is amended— 

14 (1) in the subsection heading, by striking ‘‘Con15 tracting’’; 

16 (2) in paragraph (1), in the matter preceding 

17 subparagraph (A), by striking ‘‘may enter into con18 tracts to carry out research and development to’’ and 

19 inserting ‘‘may conduct activities or enter into con20 tracts to carry out research and development to main21 tain or improve existing policies or develop new poli22 cies to’’; 

23 (3) in paragraph (2)— 
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† HR 2642 EAS 

1 (A) in subparagraph (A), by inserting ‘‘con2 duct research and development or’’ after ‘‘The 

3 Corporation may’’; and 

4 (B) by striking subparagraph (B) and in5 serting the following: 

6 ‘‘(B) CONSULTATION.—Before conducting 

7 research and development or entering into a con8 tract under subparagraph (A), the Corporation 

9 shall follow the consultation requirements de10 scribed in section 508(h)(4)(E).’’; 

11 (4) in paragraph (5), by inserting ‘‘after expert 

12 review in accordance with section 505(e) and proce13 dures of the Board’’ after ‘‘approved by the Board’’; 

14 and 

15 (5) in paragraph (6), by striking ‘‘a pasture, 

16 range, and forage program’’ and inserting ‘‘policies 

17 that increase participation by producers of under18 served agricultural commodities, including sweet sor19 ghum, sorghum for biomass, specialty crops, sugar20 cane, and dedicated energy crops’’. 

21 (b) FUNDING.—Section 522(e) of the Federal Crop In22 surance Act (7 U.S.C. 1522(e)) is amended— 

23 (1) in paragraph (2)— 
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† HR 2642 EAS 

1 (A) by striking ‘‘(A) AUTHORITY.—’’ and 

2 inserting ‘‘(A) CONDUCTING AND CONTRACTING

3 FOR RESEARCH AND DEVELOPMENT.—’’; 

4 (B) in subparagraph (A), by inserting ‘‘con5 duct research and development and’’ after ‘‘the 

6 Corporation may use to’’; and 

7 (C) in subparagraph (B), by inserting ‘‘con8 duct research and development and’’ after ‘‘for 

9 the fiscal year to’’; 

10 (2) in paragraph (3), in the matter preceding 

11 subparagraph (A), by striking ‘‘to provide either re12 imbursement payments or contract payments’’; and 

13 (3) by striking paragraph (4). 

14 SEC. 11029. PILOT PROGRAMS. 

15 Section 523(a) of the Federal Crop Insurance Act (7 

16 U.S.C. 1523(a)) is amended— 

17 (1) in paragraph (1), by inserting ‘‘, at the sole 

18 discretion of the Corporation,’’ after ‘‘may’’; and 

19 (2) by striking paragraph (5). 

20 SEC. 11030. INDEX-BASED WEATHER INSURANCE PILOT 

21 PROGRAM. 

22 Section 523(a)(2) of the Federal Crop Insurance Act 

23 (7 U.S.C. 1523(a)(2)) is amended— 

24 (1) by striking ‘‘Under’’ inserting the following: 

25 ‘‘(A) IN GENERAL.—Under’’; and 
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† HR 2642 EAS 

1 (2) by adding at the end the following: 

2 ‘‘(B) INDEX-BASED WEATHER INSURANCE

3 PILOT PROGRAM.— 

4 ‘‘(i) IN GENERAL.—Notwithstanding 

5 subparagraph (A), the Corporation, at the 

6 sole discretion of the Corporation, may con7 duct a pilot program to provide financial 

8 assistance for producers of underserved 

9 crops and livestock (including specialty 

10 crops) to purchase an index-based weather 

11 insurance product from a private insurance 

12 company, subject to the requirements of this 

13 subparagraph. 

14 ‘‘(ii) PAYMENT OF PREMIUM.— 

15 ‘‘(I) IN GENERAL.—Subject to 

16 subclause (II) and clause (v), the Cor17 poration may pay a portion of the pre18 mium for producers who purchase 

19 index-based weather insurance protec20 tion from a private insurance com21 pany for a crop and policy that is not 

22 reinsured under this subtitle, as deter23 mined by the Corporation. 

24 ‘‘(II) CONDITION.—The premium 

25 assistance under subclause (I) shall not 
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† HR 2642 EAS 

1 exceed 60 percent of the estimated pre2 mium amount, based on expected 

3 losses, representative operating ex4 penses, and representative profit mar5 gins, as determined by the Corpora6 tion. 

7 ‘‘(iii) ELIGIBLE PROVIDERS.—Before 

8 providing premium assistance to producers 

9 to purchase index-based weather insurance 

10 from a private insurance company pursu11 ant to this subparagraph, the Corporation 

12 shall verify that the company has adequate 

13 experience— 

14 ‘‘(I) to develop and manage the 

15 index-based weather insurance prod16 ucts, including adequate resources, ex17 perience, and assets or sufficient rein18 surance to meet the obligations of the 

19 company under this subparagraph; 

20 and 

21 ‘‘(II) to support and deliver the 

22 index-based weather insurance prod23 ucts. 

24 ‘‘(iv) PROCEDURES.—The Corporation 

25 shall develop and publish procedures to ad-
1084 

† HR 2642 EAS 

1 minister the pilot program under this sub2 paragraph that— 

3 ‘‘(I) require each applicable pri4 vate insurance company to report 

5 claim and sales data, and any other 

6 data the Corporation determines to be 

7 appropriate, to allow the Corporation 

8 to evaluate product pricing and per9 formance; 

10 ‘‘(II) allow the private insurance 

11 companies exclusive rights over the pri12 vate insurance offered under this sub13 paragraph, including rating of poli14 cies, protection of intellectual property 

15 rights on the product or policy, and as16 sociated rating methodology, for the pe17 riod during which the companies are 

18 eligible under clause (iii); and 

19 ‘‘(III) contain such other require20 ments as the Corporation determines to 

21 be necessary to ensure that— 

22 ‘‘(aa) the interests of pro23 ducers are protected; and 

24 ‘‘(bb) the program operates 

25 in an actuarially sound manner. 
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† HR 2642 EAS 

1 ‘‘(v) FUNDING.—Of the funds of the 

2 Corporation, the Corporation shall use to 

3 carry out this subparagraph $10,000,000 

4 for each of fiscal years 2014 through 2018, 

5 to remain available until expended.’’. 

6 SEC. 11031. ENHANCING PRODUCER SELF-HELP THROUGH 

7 FARM FINANCIAL BENCHMARKING. 

8 (a) DEFINITION.—Section 502(b) of the Federal Crop 

9 Insurance Act (7 U.S.C. 1502(b)) is amended— 

10 (1) by redesignating paragraphs (6) through (9) 

11 as paragraphs (7) through (10), respectively; and 

12 (2) by inserting after paragraph (5) the fol13 lowing: 

14 ‘‘(6) FARM FINANCIAL BENCHMARKING.—The 

15 term ‘farm financial benchmarking’ means— 

16 ‘‘(A) the process of comparing the perform17 ance of an agricultural enterprise against the 

18 performance of other similar enterprises, through 

19 the use of comparable and reliable data, in order 

20 to identify business management strengths, weak21 nesses, and steps necessary to improve manage22 ment performance and business profitability; 

23 and 

24 ‘‘(B) benchmarking of the type conducted by 

25 farm management and producer associations 
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1 consistent with the activities described in or 

2 funded pursuant to section 1672D of the Food, 

3 Agriculture, Conservation, and Trade Act of 

4 1990 (7 U.S.C. 5925f).’’. 

5 (b) PARTNERSHIPS FOR RISK MANAGEMENT FOR PRO6 DUCERS OF SPECIALTY CROPS AND UNDERSERVED AGRI7 CULTURAL COMMODITIES.—Section 522(d)(3)(F) of the 

8 Federal Crop Insurance Act (7 U.S.C. 1522(d)(3)(F)) is 

9 amended by inserting ‘‘farm financial benchmarking,’’ after 

10 ‘‘management,’’. 

11 (c) CROP INSURANCE EDUCATION AND RISK MANAGE12 MENT ASSISTANCE.—Section 524(a) of the Federal Crop In13 surance Act (7 U.S.C. 1524(a)) is amended— 

14 (1) in paragraph (3)(A), by inserting ‘‘farm fi15 nancial benchmarking,’’ after ‘‘risk reduction,’’; and 

16 (2) in paragraph (4), in the matter preceding 

17 subparagraph (A), by inserting ‘‘(including farm fi18 nancial benchmarking)’’ after ‘‘management strate19 gies’’. 

20 SEC. 11032. BEGINNING FARMER AND RANCHER PROVI21 SIONS. 

22 (a) DEFINITION.—Section 502(b) of the Federal Crop 

23 Insurance Act (7 U.S.C. 1502(b)) (as amended by section 

24 11029(a)) is amended— 
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† HR 2642 EAS 

1 (1) by redesignating paragraphs (3) through (10) 

2 as paragraphs (4) through (11), respectively; and 

3 (2) by inserting after paragraph (2) the fol4 lowing: 

5 ‘‘(3) BEGINNING FARMER OR RANCHER.—The 

6 term ‘beginning farmer or rancher’ means a farmer 

7 or rancher who has not actively operated and man8 aged a farm or ranch with a bona fide insurable in9 terest in a crop or livestock as an owner-operator, 

10 landlord, tenant, or sharecropper for more than 5 

11 crop years, as determined by the Secretary.’’. 

12 (b) PREMIUM ADJUSTMENTS.—Section 508 of the Fed13 eral Crop Insurance Act (7 U.S.C. 1508) is amended— 

14 (1) in subsection (b)(5)(E), by inserting ‘‘and be15 ginning farmers or ranchers’’ after ‘‘limited resource 

16 farmers’’; 

17 (2) in subsection (e), by adding at the end the 

18 following: 

19 ‘‘(8) PREMIUM FOR BEGINNING FARMERS OR

20 RANCHERS.—Notwithstanding any other provision of 

21 this subsection regarding payment of a portion of pre22 miums, a beginning farmer or rancher shall receive 

23 premium assistance that is 10 percentage points 

24 greater than premium assistance that would otherwise 

25 be available under paragraphs (2) (except for sub-
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† HR 2642 EAS 

1 paragraph (A) of that paragraph), (5), (6), and (7) 

2 for the applicable policy, plan of insurance, and cov3 erage level selected by the beginning farmer or ranch4 er.’’; and 

5 (3) in subsection (g)— 

6 (A) in paragraph (2)(B)— 

7 (i) in clause (i), by striking ‘‘or’’ at 

8 the end; 

9 (ii) in clause (ii)(III), by striking the 

10 period at the end and inserting ‘‘; or’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(iii) if the producer is a beginning 

14 farmer or rancher who was previously in15 volved in a farming or ranching operation, 

16 including involvement in the decision17 making or physical involvement in the pro18 duction of the crop or livestock on the farm, 

19 for any acreage obtained by the beginning 

20 farmer or rancher, a yield that is the higher 

21 of— 

22 ‘‘(I) the actual production history 

23 of the previous producer of the crop or 

24 livestock on the acreage determined 

25 under subparagraph (A); or 
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† HR 2642 EAS 

1 ‘‘(II) a yield of the producer, as 

2 determined in clause (i).’’; and 

3 (B) in paragraph (4)(B)(ii) (as amended by 

4 section 11007)— 

5 (i) by inserting ‘‘(I)’’ after ‘‘(ii)’’; 

6 (ii) by striking the period at the end 

7 and inserting ‘‘; or’’; and 

8 (iii) by adding at the end the fol9 lowing: 

10 ‘‘(II) in the case of beginning 

11 farmers or ranchers, replace each 

12 excluded yield with a yield equal 

13 to 80 percent of the applicable 

14 transitional yield.’’. 

15 SEC. 11033. LIMITATION ON PREMIUM SUBSIDY BASED ON 

16 AVERAGE ADJUSTED GROSS INCOME. 

17 Section 508(e) of the Federal Crop Insurance Act (7 

18 U.S.C. 1508(e)) (as amended by section 11030(b)) is 

19 amended by adding at the end the following: 

20 ‘‘(9) LIMITATION ON PREMIUM SUBSIDY BASED

21 ON AVERAGE ADJUSTED GROSS INCOME.— 

22 ‘‘(A) DEFINITION OF AVERAGE ADJUSTED

23 GROSS INCOME.—In this paragraph, the term 

24 ‘average adjusted gross income’ has the meaning 
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† HR 2642 EAS 

1 given the term in section 1001D(a) of the Food 

2 Security Act of 1985 (7 U.S.C. 1308–3a(a)). 

3 ‘‘(B) LIMITATION.—Notwithstanding any 

4 other provision of this subtitle and beginning 

5 with the 2014 reinsurance year, in the case of 

6 any producer that is a person or legal entity 

7 that has an average adjusted gross income in ex8 cess of $750,000 based on the most recent data 

9 available from the Farm Service Agency as of the 

10 beginning of the reinsurance year, the total 

11 amount of premium subsidy provided with re12 spect to additional coverage under subsection (c), 

13 section 508B, or section 508C issued on behalf of 

14 the producer for a reinsurance year shall be 15 

15 percentage points less than the premium subsidy 

16 provided in accordance with this subsection that 

17 would otherwise be available for the applicable 

18 policy, plan of insurance, and coverage level se19 lected by the producer. 

20 ‘‘(C) APPLICATION.— 

21 ‘‘(i) STUDY.—Not later than 1 year 

22 after the date of enactment of this Act, the 

23 Secretary, in consultation with the Govern24 ment Accountability Office, shall carry out 
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1 a study to determine the effects of the limi2 tation described in subparagraph (B) on— 

3 ‘‘(I) the overall operations of the 

4 Federal crop insurance program; 

5 ‘‘(II) the number of producers 

6 participating in the Federal crop in7 surance program; 

8 ‘‘(III) the level of coverage pur9 chased by participating producers; 

10 ‘‘(IV) the amount of premiums 

11 paid by participating producers and 

12 the Federal Government; 

13 ‘‘(V) any potential liability for 

14 participating producers, approved in15 surance providers, and the Federal 

16 Government; 

17 ‘‘(VI) different crops or growing 

18 regions; 

19 ‘‘(VII) program rating structures; 

20 ‘‘(VIII) creation of schemes or de21 vices to evade the impact of the limita22 tion; and 

23 ‘‘(IX) administrative and oper24 ating expenses paid to approved insur25 ance providers and underwriting gains 
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1 and loss for the Federal government 

2 and approved insurance providers. 

3 ‘‘(ii) EFFECTIVENESS.—The limitation 

4 described in subparagraph (B) shall not 

5 take effect unless the Secretary determines, 

6 through the study described in clause (i), 

7 that the limitation would not— 

8 ‘‘(I) significantly increase the pre9 mium amount paid by producers with 

10 an average adjusted gross income of 

11 less than $750,000; 

12 ‘‘(II) result in a decline in the 

13 crop insurance coverage available to 

14 producers; and 

15 ‘‘(III) increase the total cost of the 

16 Federal crop insurance program.’’. 

17 SEC. 11034. AGRICULTURAL MANAGEMENT ASSISTANCE, 

18 RISK MANAGEMENT EDUCATION, AND OR19 GANIC CERTIFICATION COST SHARE ASSIST20 ANCE. 

21 Section 524 of the Federal Crop Insurance Act (7 

22 U.S.C. 1524) is amended by striking subsection (b) and in23 serting the following: 
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1 ‘‘(b) AGRICULTURAL MANAGEMENT ASSISTANCE, RISK

2 MANAGEMENT EDUCATION, AND ORGANIC CERTIFICATION

3 COST SHARE ASSISTANCE.— 

4 ‘‘(1) AUTHORITY FOR PROVISION OF ASSIST5 ANCE.—The Secretary shall provide assistance under 

6 this section as follows: 

7 ‘‘(A) Provision of organic certification cost 

8 share assistance pursuant to section 10606 of the 

9 Farm Security and Rural Investment Act of 

10 2002 (7 U.S.C. 6523). 

11 ‘‘(B) Activities to support risk management 

12 education and community outreach partnerships 

13 pursuant to section 522(d), including— 

14 ‘‘(i) entering into futures or hedging; 

15 ‘‘(ii) entering into agricultural trade 

16 options as a hedging transaction to reduce 

17 production, price, or revenue risk; or 

18 ‘‘(iii) conducting any other activity re19 lating to an activity described in clause (i) 

20 or (ii), including farm financial 

21 benchmarking, as determined by the Sec22 retary. 

23 ‘‘(C) Provision of agricultural management 

24 assistance grants to producers in States in which 

25 there has been traditionally, and continues to be, 
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1 a low level of Federal crop insurance participa2 tion and availability, and producers underserved 

3 by the Federal crop insurance program, as deter4 mined by the Secretary, for the purposes of— 

5 ‘‘(i) constructing or improving— 

6 ‘‘(I) watershed management struc7 tures; or 

8 ‘‘(II) irrigation structures; 

9 ‘‘(ii) planting trees to form windbreaks 

10 or to improve water quality; and 

11 ‘‘(iii) mitigating financial risk through 

12 production or marketing diversification or 

13 resource conservation practices, including— 

14 ‘‘(I) soil erosion control; 

15 ‘‘(II) integrated pest management; 

16 ‘‘(III) organic farming; or 

17 ‘‘(IV) to develop and implement a 

18 plan to create marketing opportunities 

19 for the producer, including through 

20 value-added processing. 

21 ‘‘(2) PAYMENT LIMITATION.—The total amount 

22 of payments made to a person (as defined in section 

23 1001(a)(5) of the Food Security Act (7 U.S.C. 

24 1308(a)(5))) (as in existence before the amendment 

25 made by section 1603(b) of the Food, Conservation, 
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1 and Energy Act of 2008 (Public Law 110–246; 122 

2 Stat. 1730)) under paragraph (1) for any year may 

3 not exceed $50,000. 

4 ‘‘(3) FUNDING.— 

5 ‘‘(A) IN GENERAL.—The Secretary shall 

6 carry out this subsection through the Commodity 

7 Credit Corporation. 

8 ‘‘(B) FUNDING.—For each of fiscal years 

9 2014 through 2018, the Commodity Credit Cor10 poration shall make available to carry out this 

11 subsection $23,000,000. 

12 ‘‘(C) DISTRIBUTION OF FUNDS.—Of the 

13 amount made available to carry out this sub14 section for a fiscal year, the Commodity Credit 

15 Corporation shall use not less than— 

16 ‘‘(i) 50 percent to carry out paragraph 

17 (1)(A); 

18 ‘‘(ii) 26 percent to carry out para19 graph (1)(B); and 

20 ‘‘(iii) 24 percent to carry out para21 graph (1)(C).’’. 

22 SEC. 11035. CROP PRODUCTION ON NATIVE SOD. 

23 (a) FEDERAL CROP INSURANCE.—Section 508(o) of 

24 the Federal Crop Insurance Act (7 U.S.C. 1508(o)) is 

25 amended— 
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1 (1) in paragraph (1)(B), by inserting ‘‘, or the 

2 producer cannot substantiate that the ground has ever 

3 been tilled,’’ after ‘‘tilled’’; 

4 (2) in paragraph (2)(A), by striking ‘‘for benefits 

5 under—’’ and all that follows through the period at 

6 the end and inserting ‘‘for— 

7 ‘‘(i) a portion of crop insurance pre8 mium subsidies under this subtitle in ac9 cordance with paragraph (3); 

10 ‘‘(ii) benefits under section 196 of the 

11 Federal Agriculture Improvement and Re12 form Act of 1996 (7 U.S.C. 7333); and 

13 ‘‘(iii) payments described in section 

14 1001(b) of the Food Security Act of 1985 (7 

15 U.S.C. 1308(b)).’’; and 

16 (3) by striking paragraph (3) and inserting the 

17 following: 

18 ‘‘(3) ADMINISTRATION.— 

19 ‘‘(A) IN GENERAL.—During the first 4 crop 

20 years of planting on native sod acreage by a pro21 ducer described in paragraph (2)— 

22 ‘‘(i) paragraph (2) shall apply to 65 

23 percent of the applicable transitional yield; 

24 and 
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1 ‘‘(ii) the crop insurance premium sub2 sidy provided for the producer under this 

3 subtitle shall be 50 percentage points less 

4 than the premium subsidy that would other5 wise apply. 

6 ‘‘(B) YIELD SUBSTITUTION.—During the 

7 period native sod acreage is covered by this sub8 section, a producer may not substitute yields for 

9 the native sod acreage.’’. 

10 (b) NONINSURED CROP DISASTER ASSISTANCE.—Sec11 tion 196(a)(4) of the Federal Agriculture Improvement and 

12 Reform Act of 1996 (7 U.S.C. 7333(a)(4)) is amended— 

13 (1) in subparagraph (A)(ii), by inserting ‘‘, or 

14 the producer cannot substantiate that the ground has 

15 ever been tilled,’’ after ‘‘tilled’’; 

16 (2) in subparagraph (B)(i), by striking ‘‘for ben17 efits under—’’ and all that follows through the period 

18 at the end and inserting ‘‘for— 

19 ‘‘(I) benefits under this section; 

20 ‘‘(II) a portion of crop insurance 

21 premium subsidies under the Federal 

22 Crop Insurance Act (7 U.S.C. 1501 et 

23 seq.) in accordance with subparagraph 

24 (C); and 
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1 ‘‘(III) payments described in sec2 tion 1001(b) of the Food Security Act 

3 of 1985 (7 U.S.C. 1308(b)).’’; and 

4 (3) by striking subparagraph (C) and inserting 

5 the following: 

6 ‘‘(C) ADMINISTRATION.— 

7 ‘‘(i) IN GENERAL.—During the first 4 

8 crop years of planting on native sod acreage 

9 by a producer described in subparagraph 

10 (B)— 

11 ‘‘(I) subparagraph (B) shall apply 

12 to 65 percent of the applicable transi13 tional yield; and 

14 ‘‘(II) the crop insurance premium 

15 subsidy provided for the producer 

16 under the Federal Crop Insurance Act 

17 (7 U.S.C. 1501 et seq.) shall be 50 per18 centage points less than the premium 

19 subsidy that would otherwise apply. 

20 ‘‘(ii) YIELD SUBSTITUTION.—During 

21 the period native sod acreage is covered by 

22 this paragraph, a producer may not sub23 stitute yields for the native sod acreage.’’. 

24 (c) CROPLAND REPORT.— 
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1 (1) BASELINE.—Not later than 180 days after 

2 the date of enactment of this Act, the Secretary of Ag3 riculture shall submit to the Committee on Agri4 culture of the House of Representatives and the Com5 mittee on Agriculture, Nutrition, and Forestry of the 

6 Senate a report that describes the cropland acreage in 

7 each county and State, and the change in cropland 

8 acreage from the preceding year in each county and 

9 State, beginning with calendar year 2000 and includ10 ing that information for the most recent year for 

11 which that information is available. 

12 (2) ANNUAL UPDATES.—Not later than January 

13 1, 2014, and each January 1 thereafter through Janu14 ary 1, 2018, the Secretary of Agriculture shall submit 

15 to the Committee on Agriculture of the House of Rep16 resentatives and the Committee on Agriculture, Nutri17 tion, and Forestry of the Senate a report that de18 scribes— 

19 (A) the cropland acreage in each county 

20 and State as of the date of submission of the re21 port; 

22 (B) the change in cropland acreage from the 

23 preceding year in each county and State; and 

24 (C) the number of acres of native sod that 

25 have been converted to cropland or to any other 
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1 use in the preceding year in each county and 

2 State. 

3 SEC. 11036. TECHNICAL AMENDMENTS. 

4 Section 508(b) of the Federal Crop Insurance Act (7 

5 U.S.C. 1508(b)) is amended— 

6 (1) by striking paragraph (7); and 

7 (2) by redesignating paragraphs (8) through (11) 

8 as paragraphs (7) through (10), respectively. 

9 SEC. 11037. GREATER ACCESSIBILITY FOR CROP INSUR10 ANCE. 

11 (a) FINDINGS.—Congress finds that— 

12 (1) due to changes in commodity and other agri13 cultural programs made by the Agriculture Reform, 

14 Food, and Jobs Act of 2013, it is more important 

15 than ever that agricultural producers be able to fully 

16 understand the terms of plans and policies of crop in17 surance offered under the Federal Crop Insurance Act 

18 (7 U.S.C. 1501 et seq.); and 

19 (2) proposed reductions by the Secretary in the 

20 number of State and local offices of the Farm Service 

21 Agency will reduce the services available to assist ag22 ricultural producers in understanding crop insurance. 

23 (b) REQUIREMENT FOR USE OF PLAIN LANGUAGE.— 

24 (1) IN GENERAL.—In issuing regulations and 

25 guidance relating to plans and policies of crop insur-
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1 ance, the Risk Management Agency and the Federal 

2 Crop Insurance Corporation shall, to the greatest ex3 tent practicable, use plain language, as required 

4 under Executive Orders 12866 (5 U.S.C. 601 note; re5 lating to regulatory planning and review) and 12988 

6 (28 U.S.C. 519 note; relating to civil justice reform). 

7 (2) REPORT.—Not later than 180 days after the 

8 date of enactment of this Act, the Secretary shall sub9 mit to the Committee on Agriculture of the House of 

10 Representatives and the Committee on Agriculture, 

11 Nutrition, and Forestry of the Senate a report de12 scribing the efforts of the Secretary to accelerate com13 pliance with the Executive orders described in para14 graph (1). 

15 (c) WEBSITE.— 

16 (1) IN GENERAL.—Not later than 1 year after 

17 the date of enactment of this Act, the Secretary, in 

18 consultation with the approved insurance providers 

19 (as defined in section 502(b) of the Federal Crop In20 surance Act (7 U.S.C. 1502(b)), shall improve the ex21 isting Internet website through which agricultural 

22 producers in any State may identify crop insurance 

23 options in that State. 

24 (2) REQUIREMENTS.—The website described in 

25 paragraph (1) shall— 
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1 (A) provide answers in an easily accessible 

2 format to frequently asked questions; and 

3 (B) include published materials of the De4 partment of Agriculture that relate to plans and 

5 policies of crop insurance offered under that Act. 

6 (d) ADMINISTRATION.—Nothing in this section author7 izes the Risk Management Agency to sell a crop insurance 

8 policy or plan of insurance. 

9 SEC. 11038. GAO CROP INSURANCE FRAUD REPORT. 

10 Section 515(d) of the Federal Crop Insurance Act (7 

11 U.S.C. 1515(d)) is amended by adding at the end the fol12 lowing: 

13 ‘‘(6) GAO CROP INSURANCE FRAUD REPORT.—As 

14 soon as practicable after the date of enactment of this 

15 paragraph, the Comptroller General of the United 

16 States shall conduct, and submit to Congress a report 

17 describing the results of, a study regarding fraudulent 

18 claims filed, and benefits provided, under this sub19 title.’’. 
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1 TITLE XII—MISCELLANEOUS 

2 Subtitle A—Socially Disadvantaged 

3 Producers and Limited Resource 

4 Producers 

5 SEC. 12001. OUTREACH AND ASSISTANCE FOR SOCIALLY 

6 DISADVANTAGED FARMERS AND RANCHERS 

7 AND VETERAN FARMERS AND RANCHERS. 

8 (a) OUTREACH AND ASSISTANCE FOR SOCIALLY DIS9 ADVANTAGED FARMERS AND RANCHERS AND VETERAN

10 FARMERS AND RANCHERS.—Section 2501 of the Food, Ag11 riculture, Conservation, and Trade Act of 1990 (7 U.S.C. 

12 2279) is amended— 

13 (1) in the section heading, by inserting ‘‘AND

14 VETERAN FARMERS AND RANCHERS’’ after 

15 ‘‘RANCHERS’’; 

16 (2) in subsection (a)— 

17 (A) in paragraph (2)(B)(i), by inserting 

18 ‘‘and veteran farmers or ranchers’’ after ‘‘ranch19 ers’’; and 

20 (B) in paragraph (4)— 

21 (i) in subparagraph (A)— 

22 (I) in the heading, by striking 

23 ‘‘FISCAL YEARS 2009 THROUGH 2012’’ 

24 and inserting ‘‘MANDATORY FUNDING’’; 
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1 (II) in clause (i), by striking 

2 ‘‘and’’ at the end; 

3 (III) in clause (ii), by striking the 

4 period at the end and inserting ‘‘; 

5 and’’; and 

6 (IV) by adding at the end the fol7 lowing: 

8 ‘‘(iii) $10,000,000 for each of fiscal 

9 years 2014 through 2018.’’; and 

10 (ii) by striking subparagraph (B) and 

11 inserting the following: 

12 ‘‘(B) AUTHORIZATION OF APPROPRIA13 TIONS.—There is authorized to be appropriated 

14 to carry out this section $20,000,000 for each of 

15 fiscal years 2014 through 2018.’’; 

16 (3) in subsection (b)(2), by inserting ‘‘or veteran 

17 farmers and ranchers’’ after ‘‘socially disadvantaged 

18 farmers and ranchers’’; and 

19 (4) in subsection (c)— 

20 (A) in paragraph (1)(A), by inserting ‘‘vet21 eran farmers or ranchers and’’ before ‘‘members’’; 

22 and 

23 (B) in paragraph (2)(A), by inserting ‘‘vet24 eran farmers or ranchers and’’ before ‘‘members’’. 
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1 (b) DEFINITION OF VETERAN FARMER OR RANCH2 ER.—Section 2501(e) of the Food, Agriculture, Conserva3 tion, and Trade Act of 1990 (7 U.S.C. 2279(e)) is amended 

4 by adding at the end the following: 

5 ‘‘(7) VETERAN FARMER OR RANCHER.—The term 

6 ‘veteran farmer or rancher’ means a farmer or ranch7 er who served in the active military, naval, or air 

8 service, and who was discharged or released from the 

9 service under conditions other than dishonorable.’’. 

10 SEC. 12002. SOCIALLY DISADVANTAGED FARMERS AND 

11 RANCHERS POLICY RESEARCH CENTER. 

12 Section 2501 of the Food, Agriculture, Conservation, 

13 and Trade Act of 1990 (7 U.S.C. 2279) is amended by add14 ing at the end the following: 

15 ‘‘(i) SOCIALLY DISADVANTAGED FARMERS AND

16 RANCHERS POLICY RESEARCH CENTER.—The Secretary 

17 shall award a grant, through a competitive grant program, 

18 to an eligible 1890 Institution (as defined in section 2 of 

19 the Agricultural Research, Extension, and Education Re20 form Act of 1998 (7 U.S.C. 7601)) to establish a policy re21 search center, to be known as the ‘Socially Disadvantaged 

22 Farmers and Ranchers Policy Research Center’, for the pur23 pose of developing policy recommendations for the protec24 tion and promotion of the interests of socially disadvan25 taged farmers and ranchers.’’. 
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1 SEC. 12003. OFFICE OF ADVOCACY AND OUTREACH. 

2 Section 226B(f)(3) of the Department of Agriculture 

3 Reorganization Act of 1994 (7 U.S.C. 6934(f)(3)) is amend4 ed to read as follows: 

5 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

6 There are authorized to be appropriated to carry out 

7 this subsection— 

8 ‘‘(A) such sums as are necessary for each of 

9 fiscal years 2009 through 2013; and 

10 ‘‘(B) $2,000,000 for each of fiscal years 

11 2014 through 2018.’’. 

12 Subtitle B—Livestock 

13 SEC. 12101. WILDLIFE RESERVOIR ZOONOTIC DISEASE INI14 TIATIVE. 

15 Title IV of the Agricultural Research, Extension, and 

16 Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) is 

17 amended by adding at the end the following: 

18 ‘‘SEC. 413. WILDLIFE RESERVOIR ZOONOTIC DISEASE INI19 TIATIVE. 

20 ‘‘(a) DEFINITION OF COVERED DISEASE.—In this sec21 tion, the term ‘covered disease’ means a zoonotic disease af22 fecting domestic livestock that is transmitted primarily 

23 from wildlife. 

24 ‘‘(b) ESTABLISHMENT.—There is established within 

25 the Department a wildlife reservoir zoonotic disease initia26 tive to provide assistance through Coordinated Agricultural 
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1 Project grants for research and development of surveillance 

2 methods, vaccines, vaccination delivery systems, or diag3 nostic tests for covered diseases. 

4 ‘‘(c) COVERED DISEASE.— 

5 ‘‘(1) IN GENERAL.—To be eligible for a grant 

6 under this section, an eligible entity shall conduct re7 search and development of surveillance methods, vac8 cines, vaccination delivery systems, or diagnostic tests 

9 for covered diseases in— 

10 ‘‘(A) a wildlife reservoir in the United 

11 States; or 

12 ‘‘(B) domestic livestock or wildlife pre13 senting a potential concern to public health. 

14 ‘‘(2) PRIORITY.—In making grants under this 

15 section, the Secretary shall give priority to grants 

16 that address— 

17 ‘‘(A) Brucella abortus (Bovine Brucellosis); 

18 ‘‘(B) Mycobacterium bovis (Bovine Tuber19 culosis); or 

20 ‘‘(C) other zoonotic disease in livestock that 

21 is covered by a high-priority research and exten22 sion initiative conducted under section 1672 of 

23 the Food, Agriculture, Conservation, and Trade 

24 Act of 1990 (7 U.S.C. 5925). 
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1 ‘‘(d) ELIGIBLE ENTITIES.—The Secretary shall carry 

2 out the initiative established under subsection (b) through 

3 public scientific research consortia that may consist of 

4 members from— 

5 ‘‘(1) Federal agencies; 

6 ‘‘(2) National Laboratories; 

7 ‘‘(3) institutions of higher education; 

8 ‘‘(4) research institutions and organizations; or 

9 ‘‘(5) State agricultural experiment stations. 

10 ‘‘(e) RESEARCH PROJECTS.—In carrying out this sec11 tion, the Secretary shall award grants on a competitive 

12 basis. 

13 ‘‘(f) ADMINISTRATION.— 

14 ‘‘(1) IN GENERAL.—In the case of grants award15 ed under this section, the Secretary shall— 

16 ‘‘(A) seek and accept proposals for grants; 

17 ‘‘(B) determine the relevance and merit of 

18 proposals through a system of peer and merit re19 view in accordance with section 103; 

20 ‘‘(C) award grants on the basis of merit, 

21 quality, and relevance; and 

22 ‘‘(D) manage the initiative established 

23 under subsection (b) using a Coordinated Agri24 cultural Project format. 
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1 ‘‘(2) TERM.—The term of a grant under this sec2 tion may not exceed 10 years. 

3 ‘‘(3) MATCHING FUNDS REQUIRED.—The Sec4 retary shall require the recipient of a grant under 

5 this section to provide funds or in-kind support from 

6 non-Federal sources in an amount that is not less 

7 than 25 percent of the amount provided by the Fed8 eral Government. 

9 ‘‘(4) OTHER CONDITIONS.—The Secretary may 

10 set such other conditions on the award of a grant 

11 under this section as the Secretary determines to be 

12 appropriate. 

13 ‘‘(g) BUILDINGS AND FACILITIES.—Funds made avail14 able under this section shall not be used for— 

15 ‘‘(1) the construction of a new building or facil16 ity; or 

17 ‘‘(2) the acquisition, expansion, remodeling, or 

18 alteration of an existing building or facility (includ19 ing site grading and improvement and architect fees). 

20 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 

21 ‘‘(1) IN GENERAL.—There is authorized to be ap22 propriated to carry out this section $7,000,000 for 

23 each of fiscal years 2014 through 2018. 

24 ‘‘(2) ALLOCATION.—Of the amount made avail25 able for a fiscal year under paragraph (1), the Sec-
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† HR 2642 EAS 

1 retary shall use not less than 30 percent of the 

2 amount for the fiscal year to carry out activities 

3 under each of subparagraphs (A) and (B) of sub4 section (c)(2).’’. 

5 SEC. 12102. TRICHINAE CERTIFICATION PROGRAM. 

6 (a) ALTERNATIVE CERTIFICATION PROCESS.— 

7 (1) IN GENERAL.—The Secretary shall amend 

8 the regulation issued under section 11010(a)(2) of the 

9 Food, Conservation, and Energy Act of 2008 (7 

10 U.S.C. 8304(a)(2)) to implement the voluntary 

11 trichinae certification program established under sec12 tion 11010(a)(1) of that Act, to include a requirement 

13 to establish an alternative trichinae certification 

14 process based on surveillance or other methods con15 sistent with international standards for categorizing 

16 compartments as having negligible risk for trichinae. 

17 (2) FINAL REGULATIONS.—Not later than 1 year 

18 after the date on which the international standards 

19 described in paragraph (1) are adopted, the Secretary 

20 shall finalize the rule amended under paragraph (1). 

21 (b) REAUTHORIZATION.—Section 10405(d)(1) of the 

22 Animal Health Protection Act (7 U.S.C. 8304(d)(1)) is 

23 amended in subparagraphs (A) and (B) by striking ‘‘2012’’ 

24 each place it appears and inserting ‘‘2018’’. 
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1 SEC. 12103. NATIONAL AQUATIC ANIMAL HEALTH PLAN. 

2 Section 11013(d) of the Food, Conservation, and En3 ergy Act of 2008 (7 U.S.C. 8322(d)) is amended by striking 

4 ‘‘2012’’ and inserting ‘‘2018’’. 

5 SEC. 12104. SHEEP PRODUCTION AND MARKETING GRANT 

6 PROGRAM. 

7 (a) IN GENERAL.—Subtitle A of the Agricultural Mar8 keting Act of 1946 (7 U.S.C. 1621 et seq.) is amended by 

9 adding at the end the following: 

10 ‘‘SEC. 209. SHEEP PRODUCTION AND MARKETING GRANT 

11 PROGRAM. 

12 ‘‘(a) ESTABLISHMENT.—The Secretary, acting through 

13 the Administrator of the Agricultural Marketing Service 

14 (referred to in this section as the ‘Secretary’) shall establish 

15 a competitive grant program for the purposes of improving 

16 the United States sheep industry. 

17 ‘‘(b) PURPOSE.—The purpose of the grant program 

18 shall be to strengthen and enhance the production and mar19 keting of sheep and sheep products, including improvement 

20 of— 

21 ‘‘(1) infrastructure; 

22 ‘‘(2) business; 

23 ‘‘(3) resource development; and 

24 ‘‘(4) innovative approaches to solve long-term 

25 needs. 
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1 ‘‘(c) ELIGIBILITY.—The Secretary shall make grants 

2 under this section to 1 or more national entities the mission 

3 of which is consistent with the purpose of the grant pro4 gram. 

5 ‘‘(d) FUNDING.—Of the funds of the Commodity Credit 

6 Corporation, the Secretary shall use to carry out this sec7 tion $1,500,000 for fiscal year 2014, to remain available 

8 until expended.’’. 

9 (b) CONFORMING AMENDMENT.—Section 374 of the 

10 Consolidated Farm and Rural Development Act (7 U.S.C. 

11 2008j) (as in existence on the day before the date of enact12 ment of this Act) is— 

13 (1) amended in subsection (e)— 

14 (A) in paragraph (3)(D), by striking ‘‘3 

15 percent’’ and inserting ‘‘10 percent’’; and 

16 (B) by striking paragraph (6); and 

17 (2) redesignated as section 210 of the Agricul18 tural Marketing Act of 1946; and 

19 (3) moved so as to appear at the end of subtitle 

20 A of that Act (as amended by subsection (a)). 

21 SEC. 12105. FERAL SWINE ERADICATION PILOT PROGRAM. 

22 (a) IN GENERAL.—To eradicate or control the threat 

23 feral swine pose to the domestic swine population, the entire 

24 livestock industry, and the destruction of crops and natural 

25 plant communities and native habitats, the Secretary of Ag-
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† HR 2642 EAS 

1 riculture may establish a feral swine eradication pilot pro2 gram. 

3 (b) PILOT.—Subject to the availability of appropria4 tions under this section, the Secretary may provide finan5 cial assistance for the cost of carrying out a pilot pro6 gram— 

7 (1) to study and assess the nature and extent of 

8 damage to the pilot area caused by feral swine; 

9 (2) to develop methods to eradicate or control 

10 feral swine in the pilot area; and 

11 (3) to develop methods to restore damage caused 

12 by feral swine. 

13 (c) COORDINATION.—The Secretary shall ensure that 

14 the Natural Resource Conservation Service and the Animal 

15 and Plant Health Inspection Service coordinate to carry 

16 out the pilot program. 

17 (d) COST SHARING.— 

18 (1) FEDERAL SHARE.—The Federal share of the 

19 costs of the pilot program under this section may not 

20 exceed 75 percent of the total costs of carrying out the 

21 pilot program. 

22 (2) IN-KIND CONTRIBUTIONS.—The non-Federal 

23 share of the costs of the pilot program may be pro24 vided in the form of in-kind contributions of mate25 rials or services. 
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1 (e) LIMITATION ON ADMINISTRATIVE EXPENSES.—Not 

2 more than 10 percent of financial assistance provided by 

3 the Secretary under this section may be used for adminis4 trative expenses. 

5 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated to carry out this section 

7 $2,000,000 for each of fiscal years 2014 through 2018. 

8 SEC. 12106. NATIONAL ANIMAL HEALTH LABORATORY NET9 WORK. 

10 Subtitle E of title X of the Farm Security and Rural 

11 Investment Act of 2002 (7 U.S.C. 8301 et seq.) is amended 

12 by inserting after section 10409 the following: 

13 ‘‘SEC. 10409A. NATIONAL ANIMAL HEALTH LABORATORY 

14 NETWORK. 

15 ‘‘(a) DEFINITION OF ELIGIBLE LABORATORY.—In this 

16 section, the term ‘eligible laboratory’ means a diagnostic 

17 laboratory that meets specific criteria developed by the Sec18 retary, in consultation with State animal health officials, 

19 State veterinary diagnostic laboratories, and veterinary di20 agnostic laboratories at institutions of higher education. 

21 ‘‘(b) CONTRACTS.—The Secretary, in consultation with 

22 State veterinarians, shall offer to enter into contracts, 

23 grants, cooperative agreements, or other legal instruments 

24 with eligible laboratories— 
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1 ‘‘(1) to enhance the capability of the Secretary to 

2 respond in a timely manner to emerging or existing 

3 bioterrorist threats to animal health; and 

4 ‘‘(2) to provide the capacity and capability for 

5 standardized— 

6 ‘‘(A) test procedures, reference materials, 

7 and equipment; 

8 ‘‘(B) laboratory biosafety and biosecurity 

9 levels; 

10 ‘‘(C) quality management system require11 ments; 

12 ‘‘(D) interconnected electronic reporting and 

13 transmission of data; and 

14 ‘‘(E) evaluation for emergency prepared15 ness; and 

16 ‘‘(3) to coordinate the development, implementa17 tion, and enhancement of national veterinary diag18 nostic laboratory capabilities, with special emphasis 

19 on surveillance planning and vulnerability analysis, 

20 technology development and validation, training, and 

21 outreach. 

22 ‘‘(c) PRIORITY.—To the extent practicable and to the 

23 extent capacity and specialized expertise may be necessary, 

24 the Secretary shall give priority to eligible laboratories at 
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1 existing Federal facilities, State facilities, and facilities at 

2 institutions of higher education. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated to carry out this section 

5 $15,000,000 for each of fiscal years 2014 through 2018.’’. 

6 SEC. 12107. NATIONAL POULTRY IMPROVEMENT PLAN 

7 (NPIP). 

8 (a) SURVEILLANCE PROGRAM.—The Secretary shall 

9 ensure that the Department of Agriculture continues to ad10 minister the avian influenza surveillance program in com11 mercial poultry through the National Poultry Improvement 

12 Program. 

13 (b) STANDARDS.—The Secretary shall ensure that the 

14 program described in subsection (a) meets any relevant 

15 standards established by the World Organization for Ani16 mal Health. 

17 Subtitle C—Other Miscellaneous 

18 Provisions 

19 SEC. 12201. MILITARY VETERANS AGRICULTURAL LIAISON. 

20 Subtitle A of the Department of Agriculture Reorga21 nization Act of 1994 is amended by inserting after section 

22 218 (7 U.S.C. 6918) the following: 
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1 ‘‘SEC. 219. MILITARY VETERANS AGRICULTURAL LIAISON. 

2 ‘‘(a) AUTHORIZATION.—The Secretary shall establish 

3 in the Department the position of Military Veterans Agri4 cultural Liaison. 

5 ‘‘(b) DUTIES.—The Military Veterans Agricultural Li6 aison shall— 

7 ‘‘(1) provide information to returning veterans 

8 about, and connect returning veterans with, beginning 

9 farmer training and agricultural vocational and re10 habilitation programs appropriate to the needs and 

11 interests of returning veterans, including assisting 

12 veterans in using Federal veterans educational bene13 fits for purposes relating to beginning a farming or 

14 ranching career; 

15 ‘‘(2) provide information to veterans concerning 

16 the availability of and eligibility requirements for 

17 participation in agricultural programs, with par18 ticular emphasis on beginning farmer and rancher 

19 programs; 

20 ‘‘(3) serving as a resource for assisting veteran 

21 farmers and ranchers, and potential farmers and 

22 ranchers, in applying for participation in agricul23 tural programs; and 

24 ‘‘(4) advocating on behalf of veterans in inter25 actions with employees of the Department. 
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1 ‘‘(c) CONTRACTS AND COOPERATIVE AGREEMENTS.— 

2 For purposes of carrying out the duties under subsection 

3 (b), the Military Veterans Agricultural Liaison may enter 

4 into contracts or cooperative agreements with the research 

5 centers of the Agricultural Research Service, institutions of 

6 higher education, or nonprofit organizations for— 

7 ‘‘(1) the conduct of regional research on the prof8 itability of small farms; 

9 ‘‘(2) the development of educational materials; 

10 ‘‘(3) the conduct of workshops, courses, and cer11 tified vocational training; 

12 ‘‘(4) the conduct of mentoring activities; or 

13 ‘‘(5) the provision of internship opportunities.’’. 

14 SEC. 12202. INFORMATION GATHERING. 

15 Section 1619(b)(3) of the Food, Conservation, and En16 ergy Act of 2008 (7 U.S.C. 8791) is amended by adding 

17 at the end the following: 

18 ‘‘(B) COOPERATION WITH STATE AND LOCAL

19 GOVERNMENTS.— 

20 ‘‘(i) IN GENERAL.—Subject to clause 

21 (ii), in the case of a State agency, political 

22 subdivision, or local governmental agency 

23 that is charged with implementing an agri24 culture or conservation program under 

25 State law, on request of the State agency, 
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† HR 2642 EAS 

1 political subdivision, or local governmental 

2 agency, the information described in para3 graph (2) shall be disclosed to the State 

4 agency, political subdivision, or local gov5 ernmental agency if the Secretary deter6 mines that the State agency, political sub7 division, or local governmental agency dem8 onstrates that the disclosure is required for 

9 implementing the State program. 

10 ‘‘(ii) RESTRICTION.—Any information 

11 disclosed to a State agency, political sub12 division, or local governmental agency 

13 under clause (i) shall be— 

14 ‘‘(I) used solely by the State agen15 cy, political subdivision, or local gov16 ernmental agency; and 

17 ‘‘(II) exempt from disclosure to 

18 the public, including under any State 

19 law that allows a citizen to petition a 

20 State agency for that information.’’. 
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1 SEC. 12203. GRANTS TO IMPROVE SUPPLY, STABILITY, SAFE2 TY, AND TRAINING OF AGRICULTURAL LABOR 

3 FORCE. 

4 Section 14204(d) of the Food, Conservation, and En5 ergy Act of 2008 (7 U.S.C. 2008q–1(d)) is amended to read 

6 as follows: 

7 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this sec9 tion— 

10 ‘‘(1) such sums as are necessary for each of fiscal 

11 years 2008 through 2013; and 

12 ‘‘(2) $10,000,000 for each of fiscal years 2014 

13 through 2018.’’. 

14 SEC. 12204. NONINSURED CROP ASSISTANCE PROGRAM. 

15 (a) IN GENERAL.—Section 196 of the Federal Agri16 culture Improvement and Reform Act of 1996 (7 U.S.C. 

17 7333) is amended— 

18 (1) in subsection (a)— 

19 (A) by striking paragraph (1) and inserting 

20 the following: 

21 ‘‘(1) IN GENERAL.— 

22 ‘‘(A) COVERAGES.—In the case of an eligi23 ble crop described in paragraph (2), the Sec24 retary of Agriculture shall operate a noninsured 

25 crop disaster assistance program to provide cov-
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1 erages based on individual yields (other than for 

2 value-loss crops) equivalent to— 

3 ‘‘(i) catastrophic risk protection avail4 able under section 508(b) of the Federal 

5 Crop Insurance Act (7 U.S.C. 1508(b)); or 

6 ‘‘(ii) additional coverage available 

7 under subsections (c) and (h) of section 508 

8 of that Act (7 U.S.C. 1508) that does not 

9 exceed 65 percent. 

10 ‘‘(B) ADMINISTRATION.—The Secretary 

11 shall carry out this section through the Farm 

12 Service Agency (referred to in this section as the 

13 ‘Agency’).’’; and 

14 (B) in paragraph (2)— 

15 (i) in subparagraph (A)— 

16 (I) in the matter before clause (i), 

17 by striking ‘‘(except livestock)’’ and in18 serting ‘‘(except livestock and crops 

19 and grasses used for grazing)’’; 

20 (II) in clause (i), by striking 

21 ‘‘and’’ after the semicolon at the end; 

22 (III) by redesignating clause (ii) 

23 as clause (iii); and 

24 (IV) by inserting after clause (i) 

25 the following: 
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1 ‘‘(ii) for which additional 

2 coverage under subsections (c) and 

3 (h) of section 508 of that Act (7 

4 U.S.C. 1508) is not available; 

5 and’’; and 

6 (ii) in subparagraph (B)— 

7 (I) by inserting ‘‘(except ferns)’’ 

8 after ‘‘floricultural’’; 

9 (II) by inserting ‘‘(except ferns)’’ 

10 after ‘‘ornamental nursery’’; and 

11 (III) by striking ‘‘(including or12 namental fish)’’ and inserting ‘‘(in13 cluding ornamental fish, but excluding 

14 tropical fish)’’; 

15 (2) in subsection (d), by striking ‘‘The Sec16 retary’’ and inserting ‘‘Subject to subsection (l), the 

17 Secretary’’; 

18 (3) in subsection (k)(1)— 

19 (A) in subparagraph (A), by striking 

20 ‘‘$250’’ and inserting ‘‘$260’’; and 

21 (B) in subparagraph (B)— 

22 (i) by striking ‘‘$750’’ and inserting 

23 ‘‘$780’’; and 

24 (ii) by striking ‘‘$1,875’’ and inserting 

25 ‘‘$1,950’’; and 
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1 (4) by adding at the end the following: 

2 ‘‘(l) PAYMENT EQUIVALENT TO ADDITIONAL COV3 ERAGE.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall make 

5 available to a producer eligible for noninsured assist6 ance under this section a payment equivalent to an 

7 indemnity for additional coverage under subsections 

8 (c) and (h) of section 508 of the Federal Crop Insur9 ance Act (7 U.S.C. 1508) that does not exceed 65 per10 cent, computed by multiplying— 

11 ‘‘(A) the quantity that is less than 50 to 65 

12 percent of the established yield for the crop, as 

13 determined by the Secretary, specified in incre14 ments of 5 percent; 

15 ‘‘(B) 100 percent of the average market 

16 price for the crop, as determined by the Sec17 retary; and 

18 ‘‘(C) a payment rate for the type of crop, as 

19 determined by the Secretary, that reflects— 

20 ‘‘(i) in the case of a crop that is pro21 duced with a significant and variable har22 vesting expense, the decreasing cost incurred 

23 in the production cycle for the crop that is, 

24 as applicable— 

25 ‘‘(I) harvested; 
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1 ‘‘(II) planted but not harvested; or 

2 ‘‘(III) prevented from being plant3 ed because of drought, flood, or other 

4 natural disaster, as determined by the 

5 Secretary; or 

6 ‘‘(ii) in the case of a crop that is pro7 duced without a significant and variable 

8 harvesting expense, such rate as shall be de9 termined by the Secretary. 

10 ‘‘(2) PREMIUM.—To be eligible to receive a pay11 ment under this subsection, a producer shall pay— 

12 ‘‘(A) the service fee required by subsection 

13 (k); and 

14 ‘‘(B) a premium for the applicable crop 

15 year that is equal to— 

16 ‘‘(i) the product obtained by multi17 plying— 

18 ‘‘(I) the number of acres devoted 

19 to the eligible crop; 

20 ‘‘(II) the yield, as determined by 

21 the Secretary under subsection (e); 

22 ‘‘(III) the coverage level elected by 

23 the producer; 

24 ‘‘(IV) the average market price, as 

25 determined by the Secretary; and 
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1 ‘‘(ii) 5.25-percent premium fee. 

2 ‘‘(3) LIMITED RESOURCE, BEGINNING, AND SO3 CIALLY DISADVANTAGED FARMERS.—The additional 

4 coverage made available under this subsection shall be 

5 available to limited resource, beginning, and socially 

6 disadvantaged producers, as determined by the Sec7 retary, in exchange for a premium that is 50 percent 

8 of the premium determined for a producer under 

9 paragraph (2). 

10 ‘‘(4) ADDITIONAL AVAILABILITY.— 

11 ‘‘(A) IN GENERAL.—As soon as practicable 

12 after October 1, 2013, the Secretary shall make 

13 assistance available to producers of an otherwise 

14 eligible crop described in subsection (a)(2) that 

15 suffered losses— 

16 ‘‘(i) to a 2012 annual fruit crop grown 

17 on a bush or tree; and 

18 ‘‘(ii) in a county covered by a declara19 tion by the Secretary of a natural disaster 

20 for production losses due to a freeze or frost. 

21 ‘‘(B) ASSISTANCE.—The Secretary shall 

22 make assistance available under subparagraph 

23 (A) in an amount equivalent to assistance avail24 able under paragraph (1), less any fees not pre25 viously paid under paragraph (2).’’. 
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1 (b) TERMINATION DATE.— 

2 (1) IN GENERAL.—Effective October 1, 2018, sub3 section (a) and the amendments made by subsection 

4 (a) (other than the amendments made by clauses 

5 (i)(I) and (ii) of subsection (a)(1)(B)) are repealed. 

6 (2) ADMINISTRATION.—Effective October 1, 2018, 

7 section 196 of the Federal Agriculture Improvement 

8 and Reform Act of 1996 (7 U.S.C. 7333) shall be ap9 plied and administered as if subsection (a) and the 

10 amendments made by subsection (a) (other than the 

11 amendments made by clauses (i)(I) and (ii) of sub12 section (a)(1)(B)) had not been enacted. 

13 SEC. 12205. BIOENERGY COVERAGE IN NONINSURED CROP 

14 ASSISTANCE PROGRAM. 

15 Section 196(a)(2)(B) of the Federal Agriculture Im16 provement and Reform Act of 1996 (7 U.S.C. 

17 7333(a)(2)(B)) is amended by inserting ‘‘(including those 

18 grown expressly for the purpose of producing a feedstock 

19 for renewable biofuel, renewable electricity, or biobased 

20 products)’’ after ‘‘industrial crops’’. 

21 SEC. 12206. REGIONAL ECONOMIC AND INFRASTRUCTURE 

22 DEVELOPMENT. 

23 Section 15751 of title 40, United States Code, is 

24 amended— 
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1 (1) in subsection (a), by striking ‘‘2012’’ and in2 serting ‘‘2018’’; and 

3 (2) in subsection (b)— 

4 (A) by striking ‘‘Not more than’’ and insert5 ing the following: 

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graph (2), not more than’’; and 

8 (B) by adding at the end the following: 

9 ‘‘(2) LIMITED FUNDING.—In a case in which less 

10 than $10,000,000 is made available to a Commission 

11 for a fiscal year under this section, paragraph (1) 

12 shall not apply.’’. 

13 SEC. 12207. OFFICE OF TRIBAL RELATIONS. 

14 Title III of the Department of Agriculture Reorganiza15 tion Act of 1994 is amended by adding after section 308 

16 (7 U.S.C. 3125a note; Public Law 103–354) the following: 

17 ‘‘SEC. 309. OFFICE OF TRIBAL RELATIONS. 

18 ‘‘The Secretary shall establish in the Office of the Sec19 retary an Office of Tribal Relations.’’. 

20 SEC. 12208. ACER ACCESS AND DEVELOPMENT PROGRAM. 

21 (a) GRANTS AUTHORIZED; AUTHORIZED ACTIVI22 TIES.—The Secretary of Agriculture may make grants to 

23 States and tribal governments to support their efforts to 

24 promote the domestic maple syrup industry through the fol25 lowing activities: 
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1 (1) Promotion of research and education related 

2 to maple syrup production. 

3 (2) Promotion of natural resource sustainability 

4 in the maple syrup industry. 

5 (3) Market promotion for maple syrup and 

6 maple-sap products. 

7 (4) Encouragement of owners and operators of 

8 privately held land containing species of tree in the 

9 genus Acer— 

10 (A) to initiate or expand maple-sugaring 

11 activities on the land; or 

12 (B) to voluntarily make the land available, 

13 including by lease or other means, for access by 

14 the public for maple-sugaring activities. 

15 (b) APPLICATIONS.—In submitting an application for 

16 a grant under this section, a State or tribal government 

17 shall include— 

18 (1) a description of the activities to be supported 

19 using the grant funds; 

20 (2) a description of the benefits that the State or 

21 tribal government intends to achieve as a result of en22 gaging in such activities; and 

23 (3) an estimate of the increase in maple-sug24 aring activities or maple syrup production that the 
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1 State or tribal government anticipates will occur as 

2 a result of engaging in such activities. 

3 (c) RELATIONSHIP TO OTHER LAWS.—Nothing in this 

4 section preempts a State or tribal government law, includ5 ing any State or tribal government liability law. 

6 (d) DEFINITION OF MAPLE SUGARING.—In this sec7 tion, the term ‘‘maple-sugaring’’ means the collection of sap 

8 from any species of tree in the genus Acer for the purpose 

9 of boiling to produce food. 

10 (e) REGULATIONS.—The Secretary of Agriculture shall 

11 promulgate such regulations as are necessary to carry out 

12 this section. 

13 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $20,000,000 for each of fiscal years 2014 and 2015. 

16 SEC. 12209. PROHIBITION ON ATTENDING AN ANIMAL 

17 FIGHT OR CAUSING A MINOR TO ATTEND AN 

18 ANIMAL FIGHT; ENFORCEMENT OF ANIMAL 

19 FIGHTING PROVISIONS. 

20 (a) PROHIBITION ON ATTENDING AN ANIMAL FIGHT

21 OR CAUSING A MINOR TO ATTEND AN ANIMAL FIGHT.— 

22 Section 26 of the Animal Welfare Act (7 U.S.C. 2156) is 

23 amended— 

24 (1) in subsection (a)— 
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† HR 2642 EAS 

1 (A) in the heading, by striking ‘‘SPON2 SORING OR EXHIBITING AN ANIMAL IN’’ and in3 serting ‘‘SPONSORING OR EXHIBITING AN ANI4 MAL IN, ATTENDING, OR CAUSING A MINOR TO

5 ATTEND’’; 

6 (B) in paragraph (1)— 

7 (i) in the heading, by striking ‘‘IN

8 GENERAL’’ and inserting ‘‘SPONSORING OR

9 EXHIBITING’’; and 

10 (ii) by striking ‘‘paragraph (2)’’ and 

11 inserting ‘‘paragraph (3)’’; 

12 (C) by redesignating paragraph (2) as 

13 paragraph (3); and 

14 (D) by inserting after paragraph (1) the fol15 lowing: 

16 ‘‘(2) ATTENDING OR CAUSING A MINOR TO AT17 TEND.—It shall be unlawful for any person to— 

18 ‘‘(A) knowingly attend an animal fighting 

19 venture; or 

20 ‘‘(B) knowingly cause a minor to attend an 

21 animal fighting venture.’’; and 

22 (2) in subsection (g), by adding at the end the 

23 following: 

24 ‘‘(5) the term ‘minor’ means a person under the 

25 age of 18 years old.’’. 
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1 (b) ENFORCEMENT OF ANIMAL FIGHTING PROHIBI2 TIONS.—Section 49 of title 18, United States Code, is 

3 amended— 

4 (1) by striking ‘‘Whoever’’ and inserting ‘‘(a) IN

5 GENERAL.—Whoever’’; 

6 (2) in subsection (a), as designated by para7 graph (1) of this section, by striking ‘‘subsection (a),’’ 

8 and inserting ‘‘subsection (a)(1),’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(b) ATTENDING AN ANIMAL FIGHTING VENTURE.— 

11 Whoever violates subsection (a)(2)(A) of section 26 of the 

12 Animal Welfare Act (7 U.S.C. 2156) shall be fined under 

13 this title, imprisoned for not more than 1 year, or both, 

14 for each violation. 

15 ‘‘(c) CAUSING A MINOR T O ATTEND AN ANIMAL

16 FIGHTING VENTURE.—Whoever violates subsection 

17 (a)(2)(B) of section 26 (7 U.S.C. 2156) of the Animal Wel18 fare Act shall be fined under this title, imprisoned for not 

19 more than 3 years, or both, for each violation.’’. 

20 SEC. 12210. PIMA COTTON TRUST FUND. 

21 (a) ESTABLISHMENT OF TRUST FUND.—There is es22 tablished in the Treasury of the United States a trust fund 

23 to be known as the ‘‘Pima Cotton Trust Fund’’, consisting 

24 of such amounts as may be transferred to the Pima Cotton 
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† HR 2642 EAS 

1 Trust Fund pursuant to the authorization of appropria2 tions under subsection (e). 

3 (b) DISTRIBUTION OF FUNDS.—From amounts in the 

4 Pima Cotton Trust Fund, the Secretary may make pay5 ments annually beginning in fiscal year 2014 as follows: 

6 (1) To nationally recognized associations estab7 lished for the promotion of pima cotton for use in tex8 tile and apparel goods. 

9 (2) To yarn spinners of pima cotton that 

10 produce ring spun cotton yarns in the United States, 

11 to be allocated to each spinner in an amount that 

12 bears the same ratio as— 

13 (A) the spinner’s production of ring spun 

14 cotton yarns, measuring less than 83.33 decitex 

15 (exceeding 120 metric number) from pima cotton 

16 in single and plied form during the period Janu17 ary 1, 1998, through December 31, 2003 (as evi18 denced by an affidavit provided by the spinner 

19 that meets the requirements of subsection (c)) 

20 bears to— 

21 (B) the production of the yarns described in 

22 subparagraph (A) during the period January 1, 

23 1998, through December 31, 2003, for all spin24 ners who qualify under this paragraph. 
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† HR 2642 EAS 

1 (3) To manufacturers who cut and sew cotton 

2 shirts in the United States who certify that they used 

3 imported cotton fabric during the period January 1, 

4 1998, through July 1, 2003, to be allocated to each 

5 such manufacturer in an amount that bears the same 

6 ratio as— 

7 (A) the dollar value (excluding duty, ship8 ping, and related costs) of imported woven cotton 

9 shirting fabric of 80s or higher count and 2-ply 

10 in warp purchased by the manufacturer during 

11 calendar year 2002 (as evidenced by an affidavit 

12 provided by the manufacturer that meets the re13 quirements of subsection (d)) used in the manu14 facturing of men’s and boys’ cotton shirts, bears 

15 to— 

16 (B) the dollar value (excluding duty, ship17 ping, and related costs) of the fabric described in 

18 subparagraph (A) purchased during calendar 

19 year 2002 by all manufacturers who qualify 

20 under this paragraph. 

21 (c) AFFIDAVIT OF YARN SPINNERS.—The affidavit re22 quired by subsection (c)(2)(A) is a notarized affidavit pro23 vided annually by an officer of a producer of ring spun 

24 yarns that affirms— 
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1 (1) that the producer used pima cotton during 

2 the year in which the affidavit is filed and during the 

3 period January 1, 2002, through December 31, 2002, 

4 to produce ring spun cotton yarns in the United 

5 States, measuring less than 83.33 decitex (exceeding 

6 120 metric number), in single and plied form during 

7 2002; 

8 (2) the quantity, measured in pounds, of ring 

9 spun cotton yarns, measuring less than 83.33 decitex 

10 (exceeding 120 metric number), in single and plied 

11 form during calendar year 2002; and 

12 (3) that the producer maintains supporting doc13 umentation showing the quantity of such yarns pro14 duced, and evidencing the yarns as ring spun cotton 

15 yarns, measuring less than 83.33 decitex (exceeding 

16 120 metric number), in single and plied form during 

17 calendar year 2002. 

18 (d) AFFIDAVIT OF SHIRTING MANUFACTURERS.—The 

19 affidavit required by subsection (c)(3)(A) is a notarized af20 fidavit provided annually by an officer of a manufacturer 

21 of men’s and boys’ shirts that affirms— 

22 (1) that the manufacturer used imported cotton 

23 fabric during the year in which the affidavit is filed 

24 and during the period January 1, 1998, through July 
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1 1, 2003, to cut and sew men’s and boys’ woven cotton 

2 shirts in the United States; 

3 (2) the dollar value of imported woven cotton 

4 shirting fabric of 80s or higher count and 2-ply in 

5 warp purchased by the manufacturer during calendar 

6 year 2002; 

7 (3) that the manufacturer maintains invoices 

8 along with other supporting documentation (such as 

9 price lists and other technical descriptions of the fab10 ric qualities) showing the dollar value of such fabric 

11 purchased, the date of purchase, and evidencing the 

12 fabric as woven cotton fabric of 80s or higher count 

13 and 2-ply in warp; and 

14 (4) that the fabric was suitable for use in the 

15 manufacturing of men’s and boys’ cotton shirts. 

16 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

17 authorized to be appropriated such sums as are necessary 

18 to carry out this section for each of fiscal years 2014 

19 through 2019. 

20 SEC. 12211. AGRICULTURE WOOL APPAREL MANUFACTUR21 ERS TRUST FUND. 

22 (a) ESTABLISHMENT OF TRUST FUND.—There is es23 tablished in the Treasury of the United States a trust fund 

24 to be known as the ‘‘Agriculture Wool Apparel Manufactur25 ers Trust Fund’’ (in this section referred to as the ‘‘Wool 
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† HR 2642 EAS 

1 Trust Fund’’), consisting of such amounts as may be trans2 ferred to the Wool Trust Fund pursuant to the authoriza3 tion of appropriations under subsection (e). 

4 (b) DISTRIBUTION OF FUNDS.—From amounts in the 

5 Wool Trust Fund, the Secretary of Agriculture may make 

6 payments annually beginning in fiscal year 2014 for cal7 endar years 2010 through 2019 as follows: 

8 (1) To eligible manufactures under paragraph 

9 (3) of section 4002(c) of the Wool Suit and Textile 

10 Trade Extension Act of 2004 (Public Law 108–429; 

11 118 Stat. 2600), as amended by section 1633(c) of the 

12 Miscellaneous Trade and Technical Corrections Act of 

13 2006 (Public Law 109–280; 120 Stat. 1166) and sec14 tion 325(b) of the Tax Extenders and Alternative 

15 Minimum Tax Relief Act of 2008 (division C of Pub16 lic Law 110–343; 122 Stat. 3875), who filed an affi17 davit with U.S. Customs and Border Protection not 

18 later than April 15 of the year of the payment, so 

19 that the amount of such payments, when added to 

20 any other payments made to eligible manufacturers 

21 under that paragraph in calendar years 2010 through 

22 2019, equal the total amount of payments authorized 

23 to be provided to eligible manufacturers under that 

24 paragraph, or the provisions of this section, in such 

25 calendar years. 
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1 (2) To eligible manufacturers under paragraph 

2 (6) of such section 4002(c), so that the amount of such 

3 payments, when added to any other payments made 

4 to eligible manufacturers under that paragraph in 

5 calendar years 2010 through 2019, equal the total 

6 amount of payments authorized to be provided to eli7 gible manufacturers under that paragraph, or the 

8 provisions of this section, in such calendar years. 

9 (c) PAYMENT OF AMOUNTS.—The Secretary of Agri10 culture shall make payments to eligible manufacturers de11 scribed in paragraphs (1) and (2) of subsection (b)— 

12 (1) for calendar years 2010 through 2013, not 

13 later than 30 days after the transfer of amounts from 

14 the general fund of the Treasury to the Wool Trust 

15 Fund under this section; and 

16 (2) for calendar years 2014 through 2019, not 

17 later than April 15 of the year of the payment. 

18 (d) RELATIONSHIP TO OTHER LAW.—The payments 

19 authorized under this section shall be made through the end 

20 of fiscal year 2019 notwithstanding any lapse of authority 

21 under any other provision of law to transfer funds to— 

22 (1) the Wool Apparel Manufacturers Trust Fund 

23 established by section 4002(c) of the Wool Suit and 

24 Textile Trade Extension Act of 2004 (Public Law 

25 108–429; 118 Stat. 2600), as amended by section 
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1 1633(c) of the Miscellaneous Trade and Technical 

2 Corrections Act of 2006 (Public Law 109–280; 120 

3 Stat. 1166) and section 325(b) of the Tax Extenders 

4 and Alternative Minimum Tax Relief Act of 2008 (di5 vision C of Public Law 110–343; 122 Stat. 3875); or 

6 (2) the Wool Research, Development, and Pro7 motion Trust Fund established by 506 of the Trade 

8 and Development Act of 2000 (7 U.S.C. 7101 note). 

9 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

10 authorized to be appropriated such sums as are necessary 

11 to carry out this section for each of fiscal years 2014 

12 through 2019. 

13 SEC. 12212. CITRUS DISEASE RESEARCH AND DEVELOP14 MENT TRUST FUND. 

15 (a) ESTABLISHMENT OF TRUST FUND.—There is es16 tablished in the Treasury of the United States a trust fund 

17 to be known as the ‘‘Citrus Disease Research and Develop18 ment Trust Fund’’ (in this section referred to as the ‘‘Citrus 

19 Trust Fund’’), consisting of such amounts as may be trans20 ferred to the Citrus Trust Fund pursuant to the authoriza21 tion of appropriations under subsection (f). 

22 (b) DISTRIBUTION OF FUNDS.—From amounts in the 

23 Citrus Trust Fund, the Secretary may make payments an24 nually beginning in fiscal year 2014 to the following: 
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1 (1) Entities engaged in scientific research con2 cerning diseases and pests, both domestic and 

3 invasive, afflicting the citrus industry. 

4 (2) Entities engaged in dissemination and com5 mercialization of relevant information, techniques, or 

6 technologies, or in research projects intended to solve 

7 problems caused by citrus production diseases and 

8 invasive pests. 

9 (3) The Citrus Disease Research and Develop10 ment Trust Fund Advisory Board, if established 

11 under subsection (c). 

12 (c) CITRUS ADVISORY BOARD.— 

13 (1) IN GENERAL.—From amounts in the Citrus 

14 Trust Fund, and with the advice and recommenda15 tions of citrus producers and other entities with an 

16 interest in the citrus industry, the Secretary may es17 tablish a Citrus Disease Research and Development 

18 Trust Fund Advisory Board (in this subsection re19 ferred to as the ‘‘Citrus Advisory Board’’). 

20 (2) MEMBERSHIP.—The Citrus Advisory Board, 

21 if established under paragraph (1), shall consist of 9 

22 members, who shall be appointed by the Secretary as 

23 follows: 

24 (A) Five members who are domestic pro25 ducers of citrus in Florida. 
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† HR 2642 EAS 

1 (B) Three members who are domestic pro2 ducers of citrus in Arizona or California. 

3 (C) One member who is a domestic producer 

4 of citrus in Texas. 

5 (3) REGULATIONS.—The Secretary may pre6 scribe such rules and regulations as are necessary to 

7 carry out this subsection, including rules establishing 

8 procedures for disqualification from service on the 

9 Citrus Advisory Board, appointment terms for mem10 bers of the Citrus Advisory Board, compensation for 

11 those members, and powers and responsibilities of the 

12 Citrus Advisory Board. 

13 (4) LIMITATION ON EXPENDITURES.—The Sec14 retary shall ensure that not more than 5 percent of 

15 total expenditures from the Citrus Trust Fund in any 

16 year are used for the operations of the Citrus Advi17 sory Board. 

18 (d) SECRETARIAL DISCRETION OF FUND ALLOCA19 TION.—Subject to subsection (e), in distributing amounts 

20 under subsection (b), the Secretary shall give strong def21 erence to providing funding for research projects exploring 

22 the proximity of citrus producers to the effects of diseases 

23 such as huanglongbing and the quickly evolving nature of 

24 scientific understanding of the effect of the diseases on citrus 

25 production. 
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† HR 2642 EAS 

1 (e) OTHER FUNDING.—The Secretary should take into 

2 account other public and private citrus-related research and 

3 development projects and funding. 

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

5 authorized to be appropriated such sums as are necessary 

6 to carry out this section for each of fiscal years 2014 

7 through 2019. 

Attest: 

Secretary. 
113TH CONGRESS 

1ST SESSION H.R. 2642 

AMENDMENT