II 

110TH CONGRESS 

1ST SESSION S. 1422 

To direct the Secretary of Agriculture to establish a program to provide 

to agricultural operators and producers a reserve to assist in the stabilization of farm income during low-revenue years, to assist operators 

and producers to invest in value-added farms, to promote higher levels 

of environmental stewardship, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2007 

Mr. LUGAR introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To direct the Secretary of Agriculture to establish a program 

to provide to agricultural operators and producers a reserve to assist in the stabilization of farm income during 

low-revenue years, to assist operators and producers to 

invest in value-added farms, to promote higher levels 

of environmental stewardship, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Farm Risk Management Act for the 21st Century’’. 


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

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definition of Secretary. 

TITLE I—RISK MANAGEMENT ACCOUNTS 

Sec. 1001. Definitions. 

Sec. 1002. Risk management account contracts. 

Sec. 1003. Treatment of risk management account accounts on transfer. 

Sec. 1004. Tax treatment of risk management account accounts. 

Sec. 1005. Administration. 

Sec. 1006. Commodity programs. 

TITLE II—CONSERVATION 

Subtitle A—Wetlands Reserve Program 

Sec. 2001. Wetlands reserve program. 

Subtitle B—Environmental Quality Incentives 

Sec. 2101. Environmental quality incentives program. 

Subtitle C—Grassland Reserve 

Sec. 2201. Grassland reserve program. 

Subtitle D—Funding and Administration 

Sec. 2301. Funding and administration. 

TITLE III—MCGOVERN-DOLE INTERNATIONAL FOOD FOR 

EDUCATION AND CHILD NUTRITION PROGRAM 

Sec. 3001. McGovern-Dole International Food for Education and Child Nutrition Program. 

TITLE IV—NUTRITION PROGRAMS 

Subtitle A—Food Stamp Program 

Sec. 4001. Exclusion of combat-related military pay from countable income. 

Sec. 4002. Strengthening the food purchasing power of low-income Americans. 

Sec. 4003. Supporting working families with child care expenses. 

Sec. 4004. Exclusion of retirement accounts from countable financial resources. 

Sec. 4005. Supporting State efforts during natural disasters. 

Sec. 4006. Simplified reporting. 

Sec. 4007. Minimum benefit. 

Sec. 4008. Reauthorization of food stamp program, food distribution program 

on Indian reservations, and the commodity supplemental food 

program. 

Sec. 4009. Outreach grants. 

Sec. 4010. Funds to States for improving and innovating program access and 

integrity. 

Sec. 4011. Assistance for community food projects. 


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Sec. 4012. Commodities for the emergency food assistance program. 

Sec. 4013. Community food assistance and food bank infrastructure competitive 

grants. 

Subtitle B—Child Nutrition and Related Programs 

Sec. 4101. Summer food service program for children. 

Sec. 4102. Fruit and vegetable program. 

Sec. 4103. Farm to school program. 

Subtitle C—Miscellaneous 

Sec. 4203. Food for the hungry transportation grant program. 

TITLE V—FORESTRY 

Subtitle A—Cooperative Forestry Assistance Act of 1978 

Sec. 5001. Forest Land Enhancement Program. 

Subtitle B—Amendments to Other Laws 

Sec. 5101. Healthy forests reserve program. 

TITLE VI—ENERGY 

Sec. 6001. Federal procurement of biobased products. 

Sec. 6002. Biorefinery development grants. 

Sec. 6003. Rural energy innovation program. 

Sec. 6004. Rural energy for America program. 

Sec. 6005. Biomass research and development. 

TITLE VII—MISCELLANEOUS 

Subtitle A—Crop Insurance 

Sec. 7001. Adjusted gross revenue insurance pilot program. 

Sec. 7002. Report. 

Subtitle B—Specialty Crops 

Sec. 7101. Farmers’ market promotion program. 

Sec. 7102. Fruit and vegetable nutrition promotion program. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Agriculture. 

4 TITLE I—RISK MANAGEMENT 

5 ACCOUNTS 

6 SEC. 1001. DEFINITIONS. 

7 In this title: 


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1 (1) ADJUSTED GROSS REVENUE.—The term 

2 ‘‘adjusted gross revenue’’, with respect to a farm of 

3 an operator or producer, means the adjusted gross 

4 income of the farm, as determined by the Secretary, 

5 from the sale or transfer of eligible commodities of 

6 the farm, as calculated— 

7 (A) taking into consideration the gross re8 ceipts (including insurance indemnities) from 

9 each sale; 

10 (B) including all farm payments received 

11 by the operator or producer from any Federal, 

12 State, or local government agency relating to 

13 the eligible commodities; 

14 (C) by deducting the cost or basis of any 

15 eligible livestock or other item purchased for re16 sale, such as feeder livestock, by the farm; 

17 (D) excluding any revenue that does not 

18 arise from the sale of eligible commodities of 

19 the farm, such as revenue associated with the 

20 packaging, merchandising, marketing, or re21 processing beyond what is typically carried out 

22 by a producer of the eligible commodity, as de23 termined by the Secretary; and 


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1 (E) using such adjustments, additions, and 

2 additional documentation as the Secretary de3 termines to be appropriate, as presented on— 

4 (i) a schedule F form of the Federal 

5 income tax returns of the operator or pro6 ducer; or 

7 (ii) a comparable tax form relating to 

8 the farm, as approved by the Secretary. 

9 (2) AGRICULTURAL CROP.—The term ‘‘agricul10 tural crop’’ means any annual or perennial crop 

11 raised or produced by an operator or producer. 

12 (3) APPLICABLE YEAR.—The term ‘‘applicable 

13 year’’ means a fiscal year covered by a risk manage14 ment account contract. 

15 (4) AVERAGE ADJUSTED GROSS REVENUE.— 

16 The term ‘‘average adjusted gross revenue’’ means— 

17 (A) the rolling average of the adjusted 

18 gross revenue of an operator or producer for 

19 each of the 5 preceding taxable years; or 

20 (B) in the case of a beginning farmer or 

21 rancher, or another agricultural operation that 

22 does not have adjusted gross revenue for each 

23 of the 5 preceding taxable years, the estimated 

24 income of the operation for the applicable year, 

25 as determined by the Secretary. 


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1 (5) DAIRY PRODUCT.—The term ‘‘dairy prod2 uct’’ means fluid milk produced on a farm or ranch. 

3 (6) ELIGIBLE COMMODITY.—The term ‘‘eligible 

4 commodity’’ means— 

5 (A) an agricultural crop; and 

6 (B) a dairy product. 

7 (7) FARM.— 

8 (A) IN GENERAL.—The term ‘‘farm’’ 

9 means any parcel of land used for the raising 

10 or production of an eligible commodity that is 

11 considered to be a separate operation, as deter12 mined by the Secretary. 

13 (B) INCLUSIONS.—The term ‘‘farm’’ in14 cludes— 

15 (i) any parcel of land and related ag16 ricultural production facilities on which an 

17 operator or producer has more than de 

18 minimis operational control; and 

19 (ii) any parcel of land subject to more 

20 than de minimis common ownership, as de21 termined by the Secretary, unless the com22 mon owners of the parcel— 

23 (I) except with respect to a con24 servation condition established in an 

25 applicable rental agreement, do not 


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1 have operational control regarding any 

2 portion of the parcel; and 

3 (II) do not share in the proceeds 

4 of the parcel, other than cash rent. 

5 (C) EXCLUSION.—The term ‘‘farm’’ does 

6 not include a parcel that is not a portion of a 

7 farm subject to a risk management account 

8 contract. 

9 (D) APPLICABILITY OF CFR.—Except as 

10 otherwise provided in this title or by the Sec11 retary, by regulation, part 718 of title 7, Code 

12 of Federal Regulations (or successor regula13 tions), shall apply to the definition, constitu14 tion, and reconstitution of a farm for purposes 

15 of this paragraph. 

16 (8) OPERATOR.—The term ‘‘operator’’ means a 

17 producer who controls an agricultural operation on 

18 a farm, as determined by the Secretary. 

19 (9) PRODUCER.—The term ‘‘producer’’ means a 

20 person that, as determined by the Secretary, for an 

21 applicable year— 

22 (A) shares in the risk of producing, or pro23 vides a material contribution in producing, an 

24 eligible commodity; 


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1 (B) has a substantial beneficial interest in 

2 the farm on which the eligible commodity is 

3 produced; 

4 (C)(i) for each of the 5 preceding taxable 

5 years, has filed— 

6 (I) a schedule F form of the Federal 

7 income tax return relating to the eligible 

8 commodity; or 

9 (II) a comparable tax form related to 

10 the eligible commodity, as approved by the 

11 Secretary; or 

12 (ii) is a beginning farmer or rancher, or 

13 another producer that does not have adjusted 

14 gross revenue for each of the 5 preceding tax15 able years, as determined by the Secretary; and 

16 (D)(i) during the 5 preceding taxable 

17 years, has earned at least $10,000 in average 

18 adjusted gross revenue; 

19 (ii) is a limited resource farmer or rancher, 

20 as determined by the Secretary; or 

21 (iii) in the case of a beginning farmer or 

22 rancher, or another producer that does not have 

23 adjusted gross revenue for each of the 5 pre24 ceding taxable years, has at least $10,000 in esVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 timated income from all farms for the applica2 ble year, as determined by the Secretary. 

3 (10) RISK MANAGEMENT ACCOUNT.—The term 

4 ‘‘risk management account’’ means a farm income 

5 stabilization assistance account maintained at a 

6 qualified financial institution in accordance with 

7 such terms as the Secretary may establish. 

8 (11) RISK MANAGEMENT ACCOUNT CON9 TRACT.—The term ‘‘risk management account con10 tract’’ means a farm income stabilization assistance 

11 contract entered into under section 1002. 

12 SEC. 1002. RISK MANAGEMENT ACCOUNT CONTRACTS. 

13 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

14 shall establish and carry out a program under which the 

15 Secretary shall offer to enter into contracts with eligible 

16 operators and producers in accordance with this section— 

17 (1) to provide to the operators and producers a 

18 reserve to assist in the stabilization of farm income 

19 during low-revenue years; 

20 (2) to assist operators and producers to invest 

21 in value-added farms; and 

22 (3) to recognize high levels of environmental 

23 stewardship. 

24 (b) ELIGIBILITY.— 


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1 (1) IN GENERAL.—Any operator that has par2 ticipated in a commodity program under title I of 

3 the Farm Security and Rural Investment Act of 

4 2002 (7 U.S.C. 7901 et seq.), and that otherwise 

5 meets each eligibility requirement under this title, 

6 shall be eligible to enter into a risk management ac7 count contract for agricultural production during 

8 each of fiscal years 2008 through 2014. 

9 (2) OTHER PRODUCERS.—A producer that is 

10 not an operator described in paragraph (1) shall be 

11 eligible to enter into a risk management account 

12 contract for agricultural production during each of 

13 fiscal years 2008 through 2014. 

14 (3) LIMITATIONS.— 

15 (A) IN GENERAL.—No farm or portion of 

16 a farm shall be subject to more than 1 risk 

17 management account contract during any fiscal 

18 year. 

19 (B) MULTIPLE RISK MANAGEMENT AC20 COUNT CONTRACTS.— 

21 (i) IN GENERAL.—Except as provided 

22 in clause (ii), no operator or producer shall 

23 participate or have a beneficial interest in 

24 more than 1 risk management account 

25 contract during any fiscal year. 


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1 (ii) EXCEPTION.—Notwithstanding 

2 clause (i), an operator that is eligible to re3 ceive a transition payment during a fiscal 

4 year, and that participates or has a bene5 ficial interest in a risk management ac6 count contract during that fiscal year, may 

7 enter into an additional risk management 

8 account contract during the fiscal year if— 

9 (I) the additional risk manage10 ment account contract is entered into 

11 solely for the purpose of receiving the 

12 transition payment; and 

13 (II) the operator is not otherwise 

14 eligible to participate or have a bene15 ficial interest in the additional risk 

16 management account contract. 

17 (c) RISK MANAGEMENT ACCOUNTS.— 

18 (1) IN GENERAL.—Each risk management ac19 count contract entered into under this section shall 

20 establish, in the name of the farm of the operator 

21 or producer, as applicable, in an appropriate finan22 cial institution and subject to such investment rules 

23 and other procedures as the Secretary, on approval 

24 of the Secretary of the Treasury, determines to be 

25 necessary to provide reasonable assurance of the viaVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 bility and stability of the account, a risk manage2 ment account, to consist of— 

3 (A) such amounts as are transferred to the 

4 risk management account by the Secretary dur5 ing an applicable year in accordance with para6 graph (2) (including the amendments made by 

7 that paragraph); and 

8 (B) such amounts as are voluntarily con9 tributed by the operator or producer during the 

10 applicable year in accordance with paragraph 

11 (6). 

12 (2) TRANSFERS.— 

13 (A) AVAILABILITY OF DIRECT PAY14 MENTS.—Section 1103 of the Farm Security 

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

16 7913) is amended— 

17 (i) in subsection (a), by striking ‘‘For 

18 each of the 2002 through 2007’’ and in19 serting ‘‘For each of the 2008 through 

20 2014’’; 

21 (ii) in subsection (c), by adding at the 

22 end the following: 

23 ‘‘(4)(A) In crop year 2008, 90 percent. 

24 ‘‘(B) In crop year 2009, 85 percent. 

25 ‘‘(C) In crop year 2010, 50 percent. 


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1 ‘‘(D) In crop year 2011, 25 percent. 

2 ‘‘(E) In each of crop years 2012 and 2013, 10 

3 percent. 

4 ‘‘(F) In crop year 2014, 0 percent.’’ and 

5 (iii) by adding at the end the fol6 lowing: 

7 ‘‘(e) RISK MANAGEMENT ACCOUNTS.—Of the total 

8 amount of direct payments made to producers on a farm 

9 under this section, the following amounts shall be depos10 ited into risk management accounts established under sec11 tion 1002 of the Farm Risk Management Act for the 21st 

12 Century: 

13 ‘‘(1) In each of crop years 2008 and 2009, 50 

14 percent. 

15 ‘‘(2) In each of crop years 2010 and 2011, 75 

16 percent. 

17 ‘‘(3) In each of crop years 2012 and 2013, 100 

18 percent.’’. 

19 (B) AVAILABILITY OF COUNTER-CYCLICAL

20 PAYMENTS.—Section 1104 of the Farm Secu21 rity and Rural Investment Act of 2002 (7 

22 U.S.C. 7914) is amended— 

23 (i) by striking ‘‘2007’’ each place it 

24 appears (other than paragraphs (3)(B) and 


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1 (4)(B) of subsection (f)) and inserting 

2 ‘‘2008’’; and 

3 (ii) in subsection (f)— 

4 (I) in paragraph (3)(B)— 

5 (aa) in the subparagraph 

6 heading, by striking ‘‘2007 CROP

7 YEAR’’ and inserting ‘‘2007 AND

8 2008 CROP YEARS’’; and 

9 (bb) by striking ‘‘the 2007 

10 crop year’’ and inserting ‘‘each of 

11 the 2007 and 2008 corp years’’; 

12 and 

13 (II) in paragraph (4)(B)— 

14 (aa) in the subparagraph 

15 heading, by striking ‘‘2007 CROP

16 YEAR’’ and inserting ‘‘2007 AND

17 2008 CROP YEARS’’; and 

18 (bb) by striking ‘‘the 2007 

19 crop year’’ each place it appears 

20 and inserting ‘‘each of the 2007 

21 and 2008 crop years’’. 

22 (C) DAIRY.—Section 1502 of the Farm 

23 Security and Rural Investment Act of 2002 (7 

24 U.S.C. 7982) is amended to read as follows: 


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1 ‘‘SEC. 1502. DAIRY. 

2 ‘‘(a) IN GENERAL.—For each of fiscal years 2008 

3 through 2012, the Secretary shall make an equal annual 

4 payment to producers on a dairy farm. 

5 ‘‘(b) AMOUNT.—The total amount of payments made 

6 under subsection (a) to the producers on a dairy farm 

7 shall be equal to 25 percent of the average amount of pay8 ments that the producers on the dairy farm received under 

9 this section during the period of fiscal years 2003 through 

10 2007. 

11 ‘‘(c) AVAILABILITY OF PAYMENTS.—For each pay12 ment described in subsection (a)— 

13 ‘‘(1) 50 percent shall be made directly to the 

14 producer; and 

15 ‘‘(2) 50 percent shall be placed in the risk man16 agement account for the producers on the dairy 

17 farm established pursuant to section 1002 of the 

18 Farm Risk Management Act for the 21st Century.’’. 

19 (D) STEWARDSHIP PAYMENTS.— 

20 (i) AMOUNT.— 

21 (I) IN GENERAL.—For each ap22 plicable year during fiscal years 2010 

23 through 2014, the Secretary shall 

24 transfer to the risk management ac25 count of an operator or producer de26 scribed in subclause (II) a stewardVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 ship payment in an amount equal to 

2 a percentage, as determined under 

3 clause (ii), of the adjusted gross rev4 enue of the operator or producer for 

5 the applicable year, based on the level 

6 of stewardship of the conservation 

7 plan, as determined by the Chief of 

8 the Natural Resources Conservation 

9 Service, in accordance with subsection 

10 (d). 

11 (II) ELIGIBILITY.—To be eligible 

12 to receive a stewardship payment 

13 under subclause (I), an operator or 

14 producer shall comply with a con15 servation plan that describes the con16 servation and performance measures 

17 to be maintained or achieved on the 

18 farm of the operator or producer. 

19 (ii) PERCENTAGES.—The Secretary 

20 shall transfer to the risk management ac21 count of an operator or producer described 

22 in clause (i) an amount equal to— 

23 (I) for an operator or producer 

24 that complies with a level 1 conserva25 tion plan, $0; 


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1 (II) for an operator or producer 

2 that complies with a level 2 conserva3 tion plan, an amount equal to the sum 

4 of— 

5 (aa) 3 percent of the ad6 justed gross revenue of the oper7 ator or producer that are not 

8 more than $250,000; and 

9 (bb) 0.5 percent of the ad10 justed gross revenue of the oper11 ator or producer that are more 

12 than $250,000 and less than 

13 $1,000,000; and 

14 (III) for an operator or producer 

15 that complies with a level 3 conserva16 tion plan, an amount equal to the sum 

17 of— 

18 (aa) 4 percent of adjusted 

19 the gross revenue of the operator 

20 or producer that are not more 

21 than $250,000; and 

22 (bb) 1 percent of adjusted 

23 the gross revenue of the operator 

24 or producer that are more than 


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1 $250,000 and less than 

2 $1,000,000. 

3 (3) OPERATOR AND PRODUCER CONTRIBU4 TIONS.—During any applicable year, an operator or 

5 producer may voluntarily contribute to the risk man6 agement account of the operator or producer not 

7 more than $8,000. 

8 (4) WITHDRAWALS.— 

9 (A) IN GENERAL.—An operator or pro10 ducer may withdraw amounts in the risk man11 agement account of the operator or producer 

12 only— 

13 (i) for an applicable year during which 

14 the adjusted gross revenue of the operator 

15 or producer is equal to less than 95 per16 cent of the average adjusted gross revenue 

17 of the operator or producer, in an amount 

18 that is equal to the lesser of— 

19 (I) the difference between— 

20 (aa) the average adjusted 

21 gross revenue of the operator or 

22 producer; and 

23 (bb) the adjusted gross rev24 enue of the operator or producer; 

25 and 


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1 (II) the amount of coverage that 

2 could be purchased under an adjusted 

3 gross revenue product available to the 

4 operator or producer through the Fed5 eral crop insurance program; 

6 (ii) for investment in a value-added 

7 agricultural operation that contributes to 

8 the agricultural economy, as determined by 

9 the Secretary, and is not farmland or 

10 equipment used to produce raw agricul11 tural products, an amount equal to the 

12 product obtained by multiplying— 

13 (I) the total amount in the risk 

14 management account of the operator 

15 or producer on September 30 of the 

16 preceding applicable year; and 

17 (II) 10 percent; 

18 (iii) as the Secretary determines to be 

19 necessary to protect the solvency of a farm 

20 of the operator or producer; or 

21 (iv) to purchase revenue insurance or 

22 crop insurance. 

23 (B) TRANSFER TO IRA ACCOUNT.—In any 

24 calendar year, an individual operator or pro25 ducer aged 65 years or older who is the holder 


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1 of a risk management account in existence for 

2 at least 5 years may elect to rollover not more 

3 than 15 percent of the balance of the risk man4 agement account into an individual retirement 

5 account pursuant to section 408 of the Internal 

6 Revenue Code of 1986. 

7 (5) LIMITATIONS.— 

8 (A) ATTRIBUTION REQUIREMENT.—The 

9 Secretary shall ensure that each payment trans10 ferred to a risk management account under this 

11 subsection is attributed to an individual oper12 ator or producer that is a party to the applica13 ble risk management account contract. 

14 (B) NO INDIVIDUAL BENEFIT.— 

15 (i) IN GENERAL.—The Secretary shall 

16 ensure that no individual operator or pro17 ducer receives a direct benefit from more 

18 than 1 risk management account account. 

19 (ii) PROPORTIONAL REDUCTION.—The 

20 Secretary shall reduce the amount of a 

21 standard payment or stewardship payment 

22 under this subsection in an amount equal 

23 to the proportion that— 

24 (I) the amount of each direct or 

25 indirect benefit received by the appliVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 cable individual operator or producer 

2 under the applicable risk management 

3 account contract; bears to 

4 (II) the amount of any direct or 

5 indirect benefit received by the indi6 vidual operator or producer under any 

7 other risk management account con8 tract under which a standard or stew9 ardship payment is transferred to a 

10 risk management account. 

11 (C) MAXIMUM AMOUNT.—The total 

12 amount of standard and stewardship payments 

13 attributed to an individual operator or producer 

14 for any applicable year shall not exceed the 

15 maximum total payment a risk management ac16 count is eligible to receive during the applicable 

17 year. 

18 (6) CONSERVATION COMPLIANCE.—Each oper19 ator, and each holder of a beneficial interest in a 

20 farm subject to a risk management account contract, 

21 shall comply with— 

22 (A) applicable highly erodible land con23 servation requirements under subtitle B of title 

24 XII of the Food Security Act of 1985 (16 

25 U.S.C. 3811 et seq.); and 


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1 (B) applicable wetland conservation re2 quirements under subtitle C of title XII of that 

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

4 (7) REGULATIONS.—The Secretary shall pro5 mulgate such regulations as the Secretary deter6 mines to be necessary to carry out this subsection. 

7 (d) ADMINISTRATION OF STEWARDSHIP PAY8 MENTS.— 

9 (1) DETERMINATION OF LEVELS.— 

10 (A) IN GENERAL.—The Secretary shall es11 tablish a stewardship index through which con12 servation plans of farms that are subject to risk 

13 management account contracts shall be cat14 egorized. 

15 (B) LEVELS.—The index under subpara16 graph (A) shall be comprised of 5 levels, of 

17 which— 

18 (i) level 1 shall represent the lowest 

19 level of stewardship of a conservation plan; 

20 and 

21 (ii) level 5 shall represent the highest 

22 level of stewardship of a conservation plan. 

23 (C) REQUIREMENTS.— 


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1 (i) IN GENERAL.—The Secretary shall 

2 ensure that each level of the index consists 

3 of an equal number of farms. 

4 (ii) FACTORS FOR CONSIDERATION.— 

5 In classifying farms into the index under 

6 this paragraph, the Secretary shall take 

7 into consideration— 

8 (I) the production type of the 

9 farms; and 

10 (II) such other factors as the 

11 Secretary determines to be appro12 priate to ensure that each farm is 

13 evaluated using the same criteria. 

14 (2) ELIGIBILITY.—To be eligible to receive a 

15 stewardship payment under subsection (c)(2)(D), an 

16 operator or producer shall— 

17 (A) ensure that the farm of the operator or 

18 producer complies with a conservation plan 

19 that— 

20 (i) describes the conservation prac21 tices, measures, and performance stand22 ards to be achieved by the farm to main23 tain the stewardship level of the conserva24 tion plan; and 


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1 (ii) is objective, specific, and written 

2 in plain language, to the maximum extent 

3 practicable; 

4 (B) submit to the Secretary— 

5 (i) together with the risk management 

6 account contract of the operator or pro7 ducer a copy of the conservation plan of 

8 the applicable farm (including a concise 

9 summary of the plan); and 

10 (ii) a certified application at such 

11 time, in such manner, and containing such 

12 information as the Secretary may require; 

13 and 

14 (C) accommodate such on-farm evaluations 

15 as the Secretary determines to be necessary. 

16 (3) NOTIFICATION.—The Secretary shall pro17 vide to each operator and producer selected to re18 ceive a stewardship payment under paragraph (2) a 

19 notification of— 

20 (A) the stewardship level of the conserva21 tion plan of the applicable farm; and 

22 (B) the amount of the stewardship pay23 ment to be transferred to the risk management 

24 account of the farm. 

25 (4) CERTIFICATION REQUIREMENT.— 


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1 (A) IN GENERAL.—As a condition of re2 ceiving a stewardship payment under subsection 

3 (c)(2)(D) for an applicable year, an operator or 

4 producer shall certify to the Secretary that the 

5 farm subject to the applicable risk management 

6 account contract is in compliance with— 

7 (i) the conservation plan of the farm; 

8 and 

9 (ii) such other conservation require10 ments as the Secretary may establish. 

11 (B) FAILURE TO CERTIFY.—In any appli12 cable year during which an operator or pro13 ducer does not make a certification under sub14 paragraph (A)— 

15 (i) the Secretary shall not transfer to 

16 the risk management account of the oper17 ator or producer a stewardship payment; 

18 but 

19 (ii) the Secretary shall not— 

20 (I) reduce the amount of any 

21 other payment to the risk manage22 ment account; or 

23 (II) impose on the operator or 

24 producer any other penalty. 

25 (5) EVALUATIONS.— 


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1 (A) IN GENERAL.—To ensure compliance 

2 with an applicable conservation plan, the Sec3 retary shall ensure that each farm that receives 

4 a stewardship payment under subsection 

5 (c)(2)(D) is independently evaluated not less 

6 that once during the term of the applicable risk 

7 management account contract. 

8 (B) CERTIFICATION OF PRIVATE ENTI9 TIES.—The Secretary, in coordination with ap10 propriate private, cooperative entities, may cer11 tify to carry out evaluations under subpara12 graph (A) such private entities as the Secretary 

13 determines to be appropriate to ensure compli14 ance with conservation plans. 

15 (C) REIMBURSEMENT.—The Secretary 

16 may reimburse the Chief of the Natural Re17 sources Conservation Service for the cost of any 

18 evaluation carried out by the Chief under sub19 paragraph (A). 

20 SEC. 1003. TREATMENT OF RISK MANAGEMENT ACCOUNT 

21 ACCOUNTS ON TRANSFER. 

22 (a) IN GENERAL.—In transferring, by sale or other 

23 means, any interest in a farm subject to a risk manage24 ment account, an operator or producer may elect— 


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1 (1) to transfer the risk management account to 

2 another farm in which the operator or producer— 

3 (A) has a controlling ownership interest; or 

4 (B) not later than 2 years after the date 

5 of the transfer, will acquire a controlling owner6 ship interest; 

7 (2) to transfer the risk management account to 

8 the purchaser of the interest in the farm, if the pur9 chaser is not already a holder of a risk management 

10 account; or 

11 (3)(A) if the operator or producer is an indi12 vidual, to rollover amounts in the risk management 

13 account account into an individual retirement ac14 count of the operator or producer pursuant to sec15 tion 408 of the Internal Revenue Code of 1986; or 

16 (B) if the operator or producer is not an indi17 vidual, to transfer amounts in the risk management 

18 account into an account of any individual who has 

19 a substantial beneficial interest in the farm (includ20 ing a substantial beneficiary of a trust that holds at 

21 least a 50 percent ownership interest in the farm). 

22 (b) TRANSFER OR ACQUISITION OF LAND OR POR23 TION OF OPERATION.—The Secretary shall promulgate 

24 such regulations as the Secretary determines to be approVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 priate to require reformulation, reaffirmation, or abandon2 ment of a risk management account contract— 

3 (1) on transfer of all or part of a farm under 

4 this section; or 

5 (2) on any other major change to the farm, as 

6 determined by the Secretary. 

7 SEC. 1004. TAX TREATMENT OF RISK MANAGEMENT AC8 COUNT ACCOUNTS. 

9 (a) TRANSFERS.—No transfer by the Secretary, or 

10 by an operator or producer, of funds to a risk management 

11 account pursuant to this title shall be subject to Federal 

12 income tax. 

13 (b) WITHDRAWALS.—A withdrawal of funds from a 

14 risk management account pursuant to section 1002(c)(4) 

15 shall be treated as part of the gross income of an operator 

16 or producer for the calendar year during which the funds 

17 are withdrawn. 

18 (c) ROLLOVERS.— 

19 (1) IN GENERAL.—A rollover of amounts in a 

20 risk management account into an individual retire21 ment account pursuant to section 1002(c)(4)(B) or 

22 1003(a)(3) shall not be subject to Federal income 

23 tax. 

24 (2) TERMINATION WITHOUT ROLLOVER.—If a 

25 risk management account is terminated without a 


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1 rollover under section 1002(c)(4)(B) or 1003(a)(3), 

2 amounts in the risk management account shall be 

3 considered to be withdrawn under subsection (b). 

4 SEC. 1005. ADMINISTRATION. 

5 (a) IMPLEMENTATION.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the Secretary shall carry out this title 

8 through the Farm Services Agency. 

9 (2) EXCEPTION.—In providing stewardship 

10 payments under section 1002(c)(2)(D), the Sec11 retary shall act through the Natural Resources Con12 servation Service. 

13 (b) COMPLIANCE.—In addition to evaluations under 

14 section 1002(d)(5), the Secretary shall conduct random 

15 audits of operators and producers subject to risk manage16 ment account contracts under this title as the Secretary 

17 determines to be necessary to ensure compliance with the 

18 risk management account contracts. 

19 (c) VIOLATIONS.—If the Secretary determines that 

20 an operator or producer is in violation of the terms of an 

21 applicable risk management account contract— 

22 (1) the operator or producer shall refund to the 

23 Secretary an amount equal to the amount trans24 ferred by the Secretary under section 1002(c)(2) to 


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1 the affected risk management account during the 

2 applicable year in which the violation occurred; 

3 (2) for a serious or deliberate violation, as de4 termined by the Secretary— 

5 (A) the risk management account contract 

6 shall be terminated; and 

7 (B) amounts remaining in each applicable 

8 risk management account as the result of a 

9 transfer by the Secretary under section 

10 1002(c)(2) shall be refunded to the Secretary; 

11 and 

12 (3) for failure to comply with the terms of an 

13 applicable conservation plan during an applicable 

14 year in which the operator or producer certified com15 pliance with the plan, the operator or producer shall 

16 refund to the Secretary an amount equal to the 

17 amount of the stewardship payment under section 

18 1002(c)(2)(D) for each applicable year in which a 

19 violation occurred. 

20 (d) REGULATIONS.—The Secretary shall promulgate 

21 such regulations as the Secretary determines to be nec22 essary to carry out this title. 

23 (e) ADJUSTED GROSS INCOME LIMITATION.—The 

24 adjusted gross income limitation under section 1001D of 

25 the Food Security Act of 1985 (7 U.S.C. 1308–3a) shall 


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1 apply to participation in the farm income stabilization as2 sistance program under this title. 

3 (f) COMMODITY CREDIT CORPORATION.—The Sec4 retary shall use the funds, facilities, and authorities of the 

5 Commodity Credit Corporation to carry out this title. 

6 SEC. 1006. COMMODITY PROGRAMS. 

7 (a) REPEALS.—Subtitles A through E of title I of 

8 the Farm Security and Rural Investment Act of 2002 (7 

9 U.S.C. 7901 et seq.) (other than sections 1001, 1103, 

10 1104, 1106, 1502) are repealed. 

11 (b) PLANTING FLEXIBILITY.—Section 1106 of the 

12 Farm Security and Rural Investment Act of 2002 (7 

13 U.S.C. 7916) is amended to read as follows: 

14 ‘‘SEC. 1106. PLANTING FLEXIBILITY. 

15 ‘‘Any commodity or crop may be planted on base 

16 acres on a farm.’’. 

17 (c) RECOURSE LOAN PROGRAM.—Subtitle F of title 

18 I of the Farm Security and Rural Investment Act of 2002 

19 (7 U.S.C. 7991 et seq.) is amended by adding at the end 

20 the following: 

21 ‘‘SEC. 1619. RECOURSE LOAN PROGRAM. 

22 ‘‘For each of the 2008 through 2014 crop years, the 

23 Secretary shall establish a recourse loan program for each 

24 loan commodity at a rate of interest to be determined by 

25 the Secretary.’’. 


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1 (d) ADMINISTRATION.— 

2 (1) SUSPENSION OF PERMANENT PRICE SUP3 PORT AUTHORITY.—Section 1602 of the Farm Secu4 rity and Rural Investment Act of 2002 (7 U.S.C. 

5 7992) is amended by striking ‘‘2007’’ each place it 

6 appears and inserting ‘‘2014’’. 

7 (2) ADJUSTED GROSS INCOME LIMITATION.— 

8 Section 1001D(e) of the Food Security Act of 1985 

9 (7 U.S.C. 1308–3a(e)) is amended by striking 

10 ‘‘2007’’ and inserting ‘‘2014’’. 

11 TITLE II—CONSERVATION 

12 Subtitle A—Wetlands Reserve 

13 Program 

14 SEC. 2001. WETLANDS RESERVE PROGRAM. 

15 (a) IN GENERAL.—Section 1237(c) of the Food Secu16 rity Act of 1985 (16 U.S.C. 3837(c)) is amended by strik17 ing ‘‘2007’’ and inserting ‘‘2014’’. 

18 (b) MAXIMUM ENROLLMENT.—Section 1237(b)(1) of 

19 the Food Security Act of 1985 (16 U.S.C. 3837(b)(1)) 

20 is amended— 

21 (1) by striking ‘‘2,275,000 acres’’ and inserting 

22 ‘‘3,500,000 acres’’; and 

23 (2) by striking ‘‘shall enroll’’ and all that fol24 lows through the end of the paragraph and inserting 


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1 the following: ‘‘shall enroll 250,000 acres in each of 

2 calendar years 2008 through 2014’’. 

3 Subtitle B—Environmental Quality 

4 Incentives 

5 SEC. 2101. ENVIRONMENTAL QUALITY INCENTIVES PRO6 GRAM. 

7 (a) IN GENERAL.—Section 1240B(a)(1) of the Food 

8 Security Act of 1985 (16 U.S.C. 3839aa–2(a)(1)) is 

9 amended by striking ‘‘2010’’ and inserting ‘‘2014’’. 

10 (b) ALLOCATION OF FUNDING.—Section 1240B(g) of 

11 the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 

12 is amended by striking ‘‘2007’’ and inserting ‘‘2014’’. 

13 (c) CONSERVATION INNOVATION GRANTS PRO14 GRAM.—Section 1240H of the Food Security Act of 1985 

15 (16 U.S.C. 3839aa–8) is amended by adding at the end 

16 the following: 

17 ‘‘(d) FUNDING.—Of the funds of the Commodity 

18 Credit Corporation, in addition to amounts made available 

19 under section 1241(a)(6) to carry out this chapter, the 

20 Secretary shall use to carry out this section, to remain 

21 available until expended— 

22 ‘‘(1) $25,000,000 for fiscal year 2008; 

23 ‘‘(2) $45,000,000 for fiscal year 2009; and 

24 ‘‘(3) $65,000,000 for each of fiscal years 2010 

25 through 2014.’’. 


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1 (d) GROUND AND SURFACE WATER CONSERVA2 TION.—Section 1240I(c)(1)(C)) of the Food Security Act 

3 of 1985 (16 U.S.C. 3839aa–9(c)(1)(C)) is amended by 

4 striking ‘‘2007’’ and inserting ‘‘2014’’. 

5 Subtitle C—Grassland Reserve 

6 SEC. 2201. GRASSLAND RESERVE PROGRAM. 

7 Section 1238N(b)(1) of the Food Security Act of 

8 1985 (16 U.S.C. 3838n(b)(1)) is amended by striking 

9 ‘‘2,000,000 acres’’ and inserting ‘‘2,500,000 acres’’. 

10 Subtitle D—Funding and 

11 Administration 

12 SEC. 2301. FUNDING AND ADMINISTRATION. 

13 Section 1241(a) of the Food Security Act of 1985 

14 (16 U.S.C. 3841(a)) is amended— 

15 (1) in the matter preceding paragraph (1), by 

16 striking ‘‘2007’’ and inserting ‘‘2014’’; 

17 (2) in paragraph (2), by striking ‘‘The’’ and in18 serting ‘‘For each of fiscal years 2002 through 

19 2014, the’’; 

20 (3) in paragraph (3)(B), by striking ‘‘2015’’ 

21 and inserting ‘‘2014’’; 

22 (4) in paragraph (4)— 

23 (A) in subparagraph (D), by striking 

24 ‘‘and’’ at the end; 


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1 (B) in subparagraph (E), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(F) $120,000,000 in each of fiscal years 

5 2008 through 2014.’’; 

6 (5) by striking paragraph (5) and inserting the 

7 following: 

8 ‘‘(5) For each of fiscal years 2002 through 

9 2014, the grassland reserve program under sub10 chapter C of chapter 2 of subtitle D.’’; 

11 (6) in paragraph (6)— 

12 (A) in subparagraph (E), by striking ‘‘each 

13 of’’ and all that follows through the end and in14 serting ‘‘fiscal year 2007;’’ and 

15 (B) by striking subparagraph (F) and in16 serting the following: 

17 ‘‘(F) $1,500,000,000 in fiscal year 2008; 

18 ‘‘(G) $1,600,000,000 in each of fiscal 

19 years 2009 and 2010; 

20 ‘‘(H) $1,800,000,000 in each of fiscal 

21 years 2011 and 2012; and 

22 ‘‘(I) $2,100,000,000 in each of fiscal years 

23 2013 through 2014.’’; and 

24 (7) in paragraph (7)— 


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1 (A) in subparagraph (C), by striking 

2 ‘‘and’’ at the end; 

3 (B) in subparagraph (D), by striking the 

4 period at the end and inserting a semicolon; 

5 and 

6 (C) by adding at the end the following: 

7 ‘‘(E) $125,000,000 in fiscal year 2008; 

8 ‘‘(F) $135,000,000 in each of fiscal years 

9 2009 and 2010; and 

10 ‘‘(G) $145,000,000 in each of fiscal years 

11 2011 through 2014.’’. 

12 TITLE III—MCGOVERN-DOLE 

13 INTERNATIONAL FOOD FOR 

14 EDUCATION AND CHILD NU15 TRITION PROGRAM 

16 SEC. 3001. MCGOVERN-DOLE INTERNATIONAL FOOD FOR 

17 EDUCATION AND CHILD NUTRITION PRO18 GRAM. 

19 (a) ADMINISTRATION.—Section 3107 of the Farm 

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

21 1736o–1) is amended— 

22 (1) in subsections (b), (c)(2)(B), (f)(1), (h), 

23 and (i), by striking ‘‘President’’ each place it ap24 pears and inserting ‘‘Secretary’’; 


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1 (2) in subsection (d), in the matter preceding 

2 paragraph (1), by striking ‘‘The President shall des3 ignate 1 or more Federal agencies to’’ and inserting 

4 ‘‘The Secretary shall’’; and 

5 (3) in subsection (f)(2), in the matter preceding 

6 subparagraph (A), by striking ‘‘implementing agen7 cy’’ and inserting ‘‘Secretary’’. 

8 (b) FUNDING.—Section 3107(l) of the Farm Security 

9 and Rural Investment Act of 2002 (7 U.S.C. 1736o–1(l)) 

10 is amended— 

11 (1) by striking paragraphs (1) and (2) and in12 serting the following: 

13 ‘‘(1) USE OF COMMODITY CREDIT CORPORATION

14 FUNDS.—Of the funds of the Commodity Credit 

15 Corporation, the Secretary shall use to carry out this 

16 section not less than, to remain available until ex17 pended— 

18 ‘‘(A) $140,000,000 for fiscal year 2008; 

19 ‘‘(B) $180,000,000 for fiscal year 2009; 

20 ‘‘(C) $220,000,000 for fiscal year 2010; 

21 ‘‘(D) $260,000,000 for fiscal year 2011; 

22 and 

23 ‘‘(E) $300,000,000 for each of fiscal years 

24 2012 through 2014.’’. 


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1 (2) by redesignating paragraph (3) as para2 graph (2); and 

3 (3) in paragraph (2) (as redesignated by para4 graph (2)), by striking ‘‘any Federal agency imple5 menting or assisting’’ and inserting ‘‘the Depart6 ment of Agriculture or any other Federal agency as7 sisting’’. 

8 TITLE IV—NUTRITION 

9 PROGRAMS 

10 Subtitle A—Food Stamp Program 

11 SEC. 4001. EXCLUSION OF COMBAT-RELATED MILITARY PAY 

12 FROM COUNTABLE INCOME. 

13 Section 5(d) of the Food Stamp Act of 1977 (7 

14 U.S.C. 2014(d)) is amended— 

15 (1) by striking ‘‘and 18’’ and inserting ‘‘(18)’’; 

16 and 

17 (2) by inserting before the period at the end the 

18 following: ‘‘, and (19) any amount paid a member of 

19 the uniformed services as hazardous duty pay under 

20 section 301 of title 37, United States Code, hardship 

21 duty pay under section 305 of that title, or hostile 

22 fire or imminent danger special pay under section 

23 310 of that title for service of the member in a com24 bat operation or combat zone’’. 


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1 SEC. 4002. STRENGTHENING THE FOOD PURCHASING 

2 POWER OF LOW-INCOME AMERICANS. 

3 Section 5(e)(1) of the Food Stamp Act of 1977 (7 

4 U.S.C. 2014(e)(1)) is amended— 

5 (1) in subparagraph (A)(ii), by striking ‘‘not 

6 less than $134’’ and all that follows through the pe7 riod at the end and inserting the following: ‘‘not less 

8 than— 

9 ‘‘(I) $149, $253, $209, and 

10 $132, respectively; and 

11 ‘‘(II) for fiscal year 2009 and 

12 each fiscal year thereafter, an amount 

13 that is equal to the amount from the 

14 previous fiscal year adjusted to the 

15 nearest lower dollar increment to re16 flect changes for the 12-month period 

17 ending on the preceding June 30 in 

18 the Consumer Price Index for All 

19 Urban Consumers published by the 

20 Bureau of Labor Statistics of the De21 partment of Labor, for items other 

22 than food.’’; and 

23 (2) in subparagraph (B)(ii), by striking ‘‘not 

24 less than $269’’ and all that follows through the pe25 riod at the end and inserting the following: ‘‘not less 

26 than— 


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1 ‘‘(I) $296; and 

2 ‘‘(II) for fiscal year 2009 and 

3 each fiscal year thereafter, an amount 

4 that is equal to the amount from the 

5 previous fiscal year adjusted to the 

6 nearest lower dollar increment to re7 flect changes for the 12-month period 

8 ending on the preceding June 30 in 

9 the Consumer Price Index for All 

10 Urban Consumers published by the 

11 Bureau of Labor Statistics of the De12 partment of Labor, for items other 

13 than food.’’. 

14 SEC. 4003. SUPPORTING WORKING FAMILIES WITH CHILD 

15 CARE EXPENSES. 

16 Section 5(e)(3)(A) of the Food Stamp Act of 1977 

17 (7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, the 

18 maximum allowable level of which shall be $200 per month 

19 for each dependent child under 2 years of age and $175 

20 per month for each other dependent,’’. 

21 SEC. 4004. EXCLUSION OF RETIREMENT ACCOUNTS FROM 

22 COUNTABLE FINANCIAL RESOURCES. 

23 (a) IN GENERAL.—Section 5(g)(2)(B)(v) of the Food 

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1 ed by striking ‘‘or retirement account (including an indi2 vidual account)’’ and inserting ‘‘account’’. 

3 (b) MANDATORY AND DISCRETIONARY EXCLU4 SIONS.—Section 5(g) of the Food Stamp Act of 1977 (7 

5 U.S.C. 2014(g)) is amended by adding at the end the fol6 lowing: 

7 ‘‘(7) EXCLUSION OF RETIREMENT ACCOUNTS

8 FROM COUNTABLE FINANCIAL RESOURCES.— 

9 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec10 retary shall exclude from financial resources 

11 under this subsection the value of any funds in 

12 a plan, contract, or account, described in any of 

13 sections 401(a), 403(a), 403(b), 408, 408A, 

14 457(b), and 501(c)(18) of the Internal Revenue 

15 Code of 1986, and the value of funds in a Fed16 eral Thrift Savings Plan account, as provided in 

17 section 8439 of title 5, United States Code. 

18 ‘‘(B) DISCRETIONARY EXCLUSIONS.—The 

19 Secretary may exclude from financial resources 

20 under this subsection the value of any other re21 tirement plans, contracts, or accounts (as deter22 mined by the Secretary, by regulation).’’. 


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1 SEC. 4005. SUPPORTING STATE EFFORTS DURING NATURAL 

2 DISASTERS. 

3 Section 5(h) of the Food Stamp Act of 1977 (7 

4 U.S.C. 2014(h)) is amended by adding at the end the fol5 lowing: 

6 ‘‘(4) ADMINISTRATIVE COST SHARE PAY7 MENTS.—In case of a disaster determined under 

8 paragraph (1), in lieu of the administrative cost 

9 share payments otherwise required by section 16(a), 

10 the Secretary shall pay each State agency an 

11 amount equal to 90 percent of the administrative 

12 costs allowable under that section for costs related 

13 to planning and operating disaster food stamp pro14 grams under this subsection.’’. 

15 SEC. 4006. SIMPLIFIED REPORTING. 

16 Section 6(c) of the Food Stamp Act of 1977 (7 

17 U.S.C. 2015(c)(1)(A)) is amended— 

18 (1) in paragraph (1)(A)— 

19 (A) by striking ‘‘reporting by’’ and insert20 ing ‘‘reporting’’; 

21 (B) in clause (i), by inserting ‘‘for periods 

22 shorter than 4 months by’’ before ‘‘migrant’’; 

23 (C) in clause ii), by inserting ‘‘for periods 

24 shorter than 4 months by’’ before ‘‘households’’; 

25 and 


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1 (D) in clause (iii), by inserting ‘‘by’’ before 

2 ‘‘households’’; and 

3 (2) in paragraph (3)— 

4 (A) in the third sentence— 

5 (i) by striking ‘‘Reports required to be 

6 filed monthly under paragraph (1)’’ and 

7 inserting ‘‘Except as provided in paragraph 

8 (1)(D)(ii), periodic reports filed under 

9 paragraph (1)’’; and 

10 (ii) by striking ‘‘subject matter in11 cluded in such reports’’ and inserting ‘‘the 

12 households required to make the reports’’; 

13 and 

14 (B) by inserting after the third sentence 

15 the following: ‘‘The State agency shall not be 

16 required to act on information about a house17 hold described in the preceding sentence re18 ceived from any source between the monthly re19 ports unless the information clearly indicates 

20 that the household is not eligible, subject to 

21 standards established by the Secretary, or the 

22 household requests an increase in benefits.’’. 


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1 SEC. 4007. MINIMUM BENEFIT. 

2 Section 8(a) of the Food Stamp Act of 1977 (7 

3 U.S.C. 2017(a)) is amended in the proviso by striking 

4 ‘‘shall be $10 per month’’ and inserting ‘‘shall be— 

5 ‘‘(1) for each of fiscal years 2008 through 

6 2010, 10 percent of the cost of the thrifty food plan 

7 for a household containing 1 member, as determined 

8 by the Secretary under section 3(o); and 

9 ‘‘(2) for fiscal years 2011 and each fiscal year 

10 thereafter, 15 percent of the cost of the thrifty food 

11 plan for a household containing 1 member, as deter12 mined by the Secretary under section 3(o)’’. 

13 SEC. 4008. REAUTHORIZATION OF FOOD STAMP PROGRAM, 

14 FOOD DISTRIBUTION PROGRAM ON INDIAN 

15 RESERVATIONS, AND THE COMMODITY SUP16 PLEMENTAL FOOD PROGRAM. 

17 (a) FUNDING OF EMPLOYMENT AND TRAINING PRO18 GRAMS.—Section 16(h)(1) of the Food Stamp Act of 1977 

19 (7 U.S.C. 2025(h)(1)) is amended— 

20 (1) in subparagraph (A)(vii), by striking 

21 ‘‘2007’’ and inserting ‘‘2014’’; and 

22 (2) in subparagraph (E)(i), by striking ‘‘2007’’ 

23 and inserting ‘‘2014’’. 

24 (b) REDUCTIONS IN PAYMENTS FOR ADMINISTRA25 TIVE COSTS.—Section 16(k)(3) of the Food Stamp Act 

26 of 1977 (7 U.S.C. 2025(k)(3)) is amended— 


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1 (1) in the first sentence of subparagraph (A), 

2 by striking ‘‘2007’’ and inserting ‘‘2014’’; and 

3 (2) in subparagraph (B)(ii) by striking ‘‘2007’’ 

4 and inserting ‘‘2014’’. 

5 (c) CASH PAYMENT PILOT PROJECTS.—Section 

6 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C. 

7 2026(b)(1)(B(vi)) is amended by striking ‘‘2007’’ and in8 serting ‘‘2014’’. 

9 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

10 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 

11 2027(a)(1)) is amended in the first sentence by striking 

12 ‘‘2007’’ and inserting ‘‘2014’’. 

13 (e) CONSOLIDATED BLOCK GRANTS FOR PUERTO

14 RICO AND AMERICAN SAMOA.—Section 19(a)(2)(A)(ii) of 

15 the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(2)(A)(ii)) 

16 is amended by striking ‘‘2007’’ and inserting ‘‘2014’’. 

17 (f) COMMODITY DISTRIBUTION PROGRAM.—Section 

18 4(a) of the Agriculture and Consumer Protection Act of 

19 1973 (7 U.S.C. 612c note; Public Law 93–86) is amended 

20 in the first sentence by striking ‘‘2007’’ and inserting 

21 ‘‘2014’’. 

22 SEC. 4009. OUTREACH GRANTS. 

23 Section 11(t) of the Food Stamp Act of 1977 (7 

24 U.S.C. 2020(t)) is amended— 


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1 (1) in paragraph (1), by striking ‘‘For each of’’ 

2 and all that follows through inserting ‘‘of funds’’ 

3 and inserting ‘‘For each of fiscal years 2008 through 

4 2014, the Secretary shall use not more than amount 

5 specified in paragraph (2) of funds’’; 

6 (2) by redesignating paragraphs (2) through 

7 (5) as paragraphs (3) through (6), respectively; and 

8 (3) by inserting after paragraph (1) the fol9 lowing: 

10 ‘‘(2) AMOUNTS.—For purposes of paragraph 

11 (1), the amount specified in this paragraph is— 

12 ‘‘(A) for fiscal year 2008, $15,000,000; 

13 and 

14 ‘‘(B) for fiscal year 2009 and each fiscal 

15 year thereafter, an amount that is equal to the 

16 amount that applies under this paragraph for 

17 the previous fiscal year, adjusted to the nearest 

18 lower dollar increment to reflect changes for the 

19 12-month period ending on the preceding June 

20 30 in the Consumer Price Index for All Urban 

21 Consumers published by the Bureau of Labor 

22 Statistics of the Department of Labor.’’. 


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1 SEC. 4010. FUNDS TO STATES FOR IMPROVING AND INNO2 VATING PROGRAM ACCESS AND INTEGRITY. 

3 Section 16 of the Food Stamp Act of 2007 (7 U.S.C. 

4 2025) is amended by adding at the end the following: 

5 ‘‘(l) FUNDS TO STATES FOR IMPROVING AND INNO6 VATING PROGRAM ACCESS AND INTEGRITY.— 

7 ‘‘(1) IN GENERAL.—Subject to paragraph (3), 

8 the Secretary may increase the administrative cost 

9 share percentage specified in subsection (a) for eligi10 ble administrative expenditures. 

11 ‘‘(2) ELIGIBLE ADMINISTRATIVE EXPENDI12 TURES.—Administrative expenditures that are eligi13 ble for an increased cost share percentage under this 

14 subsection are expenditures that— 

15 ‘‘(A) are described in subsection (a); and 

16 ‘‘(B) as demonstrated by a State agency to 

17 the satisfaction of the Secretary, are attrib18 utable to a program innovation that improves— 

19 ‘‘(i) access to the food stamp pro20 gram; 

21 ‘‘(ii) the efficiency and effectiveness of 

22 program operations; and 

23 ‘‘(iii) program integrity. 

24 ‘‘(3) LIMITATIONS.— 

25 ‘‘(A) IN GENERAL.—In carrying out this 

26 subsection, the Secretary shall provide an inVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 creased administrative cost share percentage for 

2 those eligible administrative expenditures that, 

3 as determined by the Secretary— 

4 ‘‘(i) have the greatest likelihood of 

5 meeting the goals described in paragraph 

6 (2)(B); and 

7 ‘‘(ii) will result in new activities or op8 erations. 

9 ‘‘(B) FUNDING.—The Secretary may use 

10 to carry out this subsection not more than 

11 $10,000,000 for each of fiscal years 2008 

12 through 2014.’’. 

13 SEC. 4011. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 

14 Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 

15 2034) is amended— 

16 (1) in subsection (b)— 

17 (A) in paragraph (1), by striking ‘‘From 

18 amounts made available to carry out this Act, 

19 the Secretary may’’ and inserting ‘‘The Sec20 retary shall’’; and 

21 (B) by striking paragraph (2) and insert22 ing the following: 

23 ‘‘(2) FUNDING AMOUNTS.—From amounts 

24 made available to carry out this Act, the Secretary 

25 shall use to make grants under this section 


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1 $5,000,000 for each of fiscal years 2008 through 

2 2014.’’; 

3 (2) in subsection (h)(4), by striking ‘‘2007’’ 

4 and inserting ‘‘2014’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(i) GRANTS TO EXPAND THE NUMBER OF FARM7 ERS’ MARKETS THAT ACCEPT FOOD STAMP BENEFITS.— 

8 ‘‘(1) IN GENERAL.—For fiscal year 2008, the 

9 Secretary shall use not more than $5,000,000 of 

10 funds made available under section 18(a)(1) to make 

11 grants to pay 100 percent of the costs of eligible en12 tities approved by the Secretary to carry out projects 

13 to expand the number of farmer’ markets that ac14 cept food stamp benefits by— 

15 ‘‘(A) providing equipment and training 

16 necessary for the farmers’ markets to accept 

17 food stamp benefits; 

18 ‘‘(B) educating and providing technical as19 sistance to agricultural producers and farmers’ 

20 market operators about the process and benefits 

21 of accepting food stamp benefits; or 

22 ‘‘(C) other activities determined to be ap23 propriate by the Secretary. 


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1 ‘‘(2) LIMITATION.—A grant made under this 

2 subsection may not be used to pay the ongoing cost 

3 of carrying out any project. 

4 ‘‘(3) ELIGIBLE ENTITIES.—To be eligible to re5 ceive a grant under this subsection, an entity shall 

6 be— 

7 ‘‘(A) a State agency administering the food 

8 stamp program; 

9 ‘‘(B) a State or local government; or 

10 ‘‘(C) a private nonprofit entity that— 

11 ‘‘(i) coordinates farmers’ markets in a 

12 State; and 

13 ‘‘(ii) operates in cooperation with 

14 State or local government. 

15 ‘‘(4) SELECTION OF ELIGIBLE ENTITIES.—The 

16 Secretary— 

17 ‘‘(A) shall develop criteria for the selection 

18 of eligible entities to receive grants under this 

19 subsection; and 

20 ‘‘(B) may give preference to any eligible 

21 entity that consists of a partnership between a 

22 government entity and a nongovernmental enti23 ty.’’. 


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1 SEC. 4012. COMMODITIES FOR THE EMERGENCY FOOD AS2 SISTANCE PROGRAM. 

3 Section 27(a) of the Food Stamp Act of 1977 (7 

4 U.S.C. 2036(a)) is amended— 

5 (1) by striking ‘‘(a) PURCHASE OF COMMOD6 ITIES.—’’ and all that follows through ‘‘through 

7 2007’’ and inserting the following: 

8 ‘‘(a) PURCHASE OF COMMODITIES.— 

9 ‘‘(1) IN GENERAL.—As provided in paragraph 

10 (2), for each of fiscal years 2008 through 2014’’; 

11 (2) by striking ‘‘$140,000,000 of’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(2) FUNDING.—Of the funds of the Com14 modity Credit Corporation, the Secretary shall use 

15 to carry out this subsection, to remain available 

16 until expended— 

17 ‘‘(A) for fiscal year 2008, $220,000,000; 

18 ‘‘(B) for fiscal year 2009, $230,000,000; 

19 ‘‘(C) for fiscal year 2010, $240,000,000; 

20 ‘‘(D) for fiscal year 2011, $245,000,000; 

21 and 

22 ‘‘(E) for fiscal year 2012 and each fiscal 

23 year thereafter, the dollar amount of commod24 ities available under this paragraph for the im25 mediately preceding fiscal year, adjusted by the 

26 percentage by which the thrifty food plan has 


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1 been adjusted under section 3(o)(4) between 

2 June 30, 2007 and June 30 of the immediately 

3 preceding fiscal year.’’. 

4 SEC. 4013. COMMUNITY FOOD ASSISTANCE AND FOOD BANK 

5 INFRASTRUCTURE COMPETITIVE GRANTS. 

6 The Food Stamp Act of 1977 is amended by adding 

7 after section 27 (7 U.S.C. 2036) the following: 

8 ‘‘SEC. 28. COMMUNITY FOOD ASSISTANCE AND FOOD BANK 

9 INFRASTRUCTURE COMPETITIVE GRANTS. 

10 ‘‘(a) DEFINITION OF ELIGIBLE ENTITY.—In this sec11 tion, the term ‘eligible entity’ means an emergency feeding 

12 organization (as defined in section 201A of the Emergency 

13 Food Assistance Act of 1983 (7 U.S.C. 7501)). 

14 ‘‘(b) APPLICATION.— 

15 ‘‘(1) IN GENERAL.—To receive a grant under 

16 this section, an eligible entity shall submit to the 

17 Secretary an application at such time, in such man18 ner, and containing such information as the Sec19 retary may require. 

20 ‘‘(2) CONTENTS.—Each application submitted 

21 under paragraph (1) shall— 

22 ‘‘(A) identify the activity described in sub23 section (c) that the grant will be used to fund; 

24 and 


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1 ‘‘(B) describe the means by which an activ2 ity identified under subparagraph (A) will re3 duce hunger in the community or support the 

4 efforts of food banks or other nonprofit emer5 gency feeding organizations to reduce hunger or 

6 food insecurity in the communities served by 

7 the emergency feeding organizations. 

8 ‘‘(3) PRIORITY.—In making grants under this 

9 section, the Secretary shall give priority to eligible 

10 entities the applications of which demonstrate at 

11 least 2 of the following criteria, as determined by the 

12 Secretary: 

13 ‘‘(A) The eligible entity serves a predomi14 nantly rural and geographically underserved 

15 area. 

16 ‘‘(B) The eligible entity serves a commu17 nity in which the rates of food insecurity, very 

18 low food insecurity, hunger, poverty, or unem19 ployment are demonstrably higher than national 

20 average rates. 

21 ‘‘(C) The eligible entity serves a commu22 nity that provides demonstrable public support 

23 for the efforts of the eligible entity through the 

24 direct provision of private sector food assistance 

25 to low-income individuals. 


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1 ‘‘(D) The grant will assist in the support 

2 of rural communities, small or mid-size agricul3 tural operations, and the consumption of lo4 cally-produced agricultural products by low-in5 come people in need of temporary food assist6 ance. 

7 ‘‘(c) USE OF FUNDS.—An eligible entity shall use a 

8 grant received under this section to carry out activities 

9 of the eligible entity, including— 

10 ‘‘(1) constructing, expanding, or repairing a fa11 cility or equipment to support hunger relief agencies 

12 in the community; 

13 ‘‘(2) assisting an emergency feeding organiza14 tion in the community in obtaining locally-grown or 

15 raised produce, dairy, or protein products; and 

16 ‘‘(3) assisting an emergency feeding organiza17 tion in the community for the procurement, storage, 

18 handling, and distribution of locally-produced agri19 cultural commodities and products. 

20 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

21 is authorized to be appropriated to carry out this section 

22 $5,000,000 for each of fiscal years 2008 through 2014.’’. 


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1 Subtitle B—Child Nutrition and 

2 Related Programs 

3 SEC. 4101. SUMMER FOOD SERVICE PROGRAM FOR CHIL4 DREN. 

5 (a) PAYMENTS TO SERVICE INSTITUTIONS.—Section 

6 13(b) of the Richard B. Russell National School Lunch 

7 Act (42 U.S.C. 1761(b)) is amended— 

8 (1) in paragraph (1)— 

9 (A) by striking subparagraph (A); 

10 (B) by redesignating subparagraphs (B) 

11 through (D) as subparagraphs (A) through (C), 

12 respectively; 

13 (C) in subparagraph (A) (as redesignated 

14 by subparagraph (B)), by striking ‘‘(B)’’ and 

15 all that follows through ‘‘shall not exceed’’ and 

16 inserting the following: 

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B) and in addition to amounts made 

19 available under paragraph (3), payments to 

20 service institutions shall be’’; 

21 (D) in subparagraph (B) (as redesignated 

22 by subparagraph (B)), by striking ‘‘subpara23 graph (B)’’ and inserting ‘‘subparagraph (A)’’; 

24 and 


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1 (E) in subparagraph (C) (as redesignated 

2 by subparagraph (B)), by striking ‘‘(A), (B), 

3 and (C)’’ and inserting ‘‘(A) and (B)’’; and 

4 (2) in the second sentence of paragraph (3), by 

5 striking ‘‘full amount of State approved’’ and all 

6 that follows through ‘‘maximum allowable’’. 

7 (b) CONFORMING AMENDMENT.—Section 18 of the 

8 Richard B. Russell National School Lunch Act (42 U.S.C. 

9 1769) is amended— 

10 (1) by striking subsection (f); and 

11 (2) by redesignating subsection (g) through (k) 

12 as subsections (f) through (j), respectively. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section take effect on January 1 of the first full cal15 endar year following the date of enactment of this Act. 

16 SEC. 4102. FRUIT AND VEGETABLE PROGRAM. 

17 Section 18(g) of the Richard B. Russell National 

18 School Lunch Act (42 U.S.C. 1769(g)) is amended— 

19 (1) in paragraph (1)— 

20 (A) in the matter preceding subparagraph 

21 (A), by striking ‘‘July 2004’’ and inserting 

22 ‘‘July 2007’’; and 

23 (B) in subparagraph (B), by striking 

24 ‘‘and’’ at the end; 


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1 (C) in subparagraph (C), by striking the 

2 period at the end and inserting ‘‘; and’’; and 

3 (D) by adding at the end the following: 

4 ‘‘(D) additional elementary or secondary 

5 schools in each State in proportion to the stu6 dent population of the State.’’; 

7 (2) in paragraph (3)(A), by striking ‘‘paragraph 

8 (1)(B)’’ and inserting ‘‘paragraph (1)’’; 

9 (3) in paragraph (5), in each of subparagraphs 

10 (A) and (B), by striking ‘‘2008’’ each place it ap11 pears and inserting ‘‘2014’’; and 

12 (4) in paragraph (6)(B), by striking clause (i) 

13 and inserting the following: 

14 ‘‘(i) IN GENERAL.—Out of any funds 

15 in the Treasury not otherwise appro16 priated, the Secretary of the Treasury 

17 shall transfer to the Secretary to carry out 

18 this section— 

19 ‘‘(I) on October 1, 2007, 

20 $10,000,000; 

21 ‘‘(II) on October 1, 2008, 

22 $12,000,000; and 

23 ‘‘(III) on October 1, 2009, and 

24 each October 1 thereafter through Oc25 tober 1, 2014, $15,000,000.’’. 


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1 SEC. 4103. FARM TO SCHOOL PROGRAM. 

2 Section 18(i)(2) of the Richard B. Russell National 

3 School Lunch Act (42 U.S.C. 1769(i)(2)) is amended by 

4 striking ‘‘such sums as are necessary’’ and all that follows 

5 through the period at the end and inserting ‘‘to carry out 

6 this subsection— 

7 ‘‘(A) $5,000,000 for each of fiscal years 

8 2008 and 2009; 

9 ‘‘(B) $8,000,000 for fiscal year 2010; and 

10 ‘‘(C) $10,000,000 for each of fiscal year 

11 2011 through 2014.’’. 

12 Subtitle C—Miscellaneous 

13 SEC. 4203. FOOD FOR THE HUNGRY TRANSPORTATION 

14 GRANT PROGRAM. 

15 (a) PURPOSES.—The purposes of this section are— 

16 (1) to authorize the creation of the National 

17 Food for the Hungry Transportation, Self-Help, and 

18 Job Training Fund to facilitate the procurement and 

19 transportation of highly-perishable, healthy food to 

20 low-income individuals in the United States; 

21 (2) to establish a competitive mechanism in the 

22 Department of Agriculture by which appropriations 

23 made available from the Fund would be allocated; 

24 (3) to ensure the direct involvement of the pri25 vate carrier trucking fleet of the United States in 

26 carrying out this section; 


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1 (4) to increase the quantity of nutritious food 

2 available to low-income individuals in the United 

3 States by supporting the procurement and distribu4 tion of highly-perishable food, such as fresh produce 

5 and protein products, to the low-income individuals; 

6 (5) to offer job training and employment oppor7 tunities in the food transportation and distribution 

8 systems; 

9 (6) to better identify potential providers of do10 nated foods and enhance the nonprofit food donation 

11 system; and 

12 (7) to provide adequate funding to carry out 

13 this section. 

14 (b) DEFINITIONS.—In this section: 

15 (1) FUND.—The term ‘‘Fund’’ means the Na16 tional Food for the Hungry Transportation, Self17 Help, and Job Training Fund established under sub18 section (c). 

19 (2) NONGOVERNMENTAL ORGANIZATION.—The 

20 term ‘‘nongovernmental organization’’ means a na21 tional nonprofit charitable organization that— 

22 (A) is described in section 501(c)(3) of the 

23 Internal Revenue Code of 1986; 

24 (B) is capable of, and has at least 10 years 

25 experience in, procuring donated food and other 


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1 services from major domestic food manufactur2 ers and processors, grocery wholesalers and re3 tailers, food warehouse operations, agricultural 

4 producer organizations, fishing interests com5 mercial transport providers (such as trucking 

6 companies), and Federal and State food assist7 ance agencies; 

8 (C) is capable of, and has shown pro9 ficiency in, the national distribution of highly10 perishable food through contracts with member 

11 emergency feeding organizations (as defined in 

12 section 201A of the Emergency Food Assist13 ance Act of 1983 (7 U.S.C. 7501)); 

14 (D) has at least 10 years experience in 

15 procuring commercial freight for the distribu16 tion of time-sensitive food products through a 

17 network of emergency food assistance organiza18 tions; 

19 (E) has at least 10 years experience in 

20 working with transport providers in creating, 

21 coordinating, and maintaining transfer systems 

22 designed to assist, at the national level, the de23 livery of time-sensitive food products, for dis24 tribution to emergency food assistance organiVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 zations in all 50 States and the District of Co2 lumbia; 

3 (F) does not operate any commercial, pri4 vate, or public subsidiary trucking or freight 

5 operations for the purposes of transporting 

6 food; and 

7 (G) agrees— 

8 (i) to contribute in-kind resources to 

9 assist in carrying out this section; 

10 (ii) to provide to eligible emergency 

11 food assistance organizations services and 

12 information free of charge; and 

13 (iii) to regularly certify and inspect 

14 any member emergency feeding organiza15 tion with which the nongovernmental orga16 nization entered into a contract to carry 

17 out an activity described in subparagraph 

18 (B). 

19 (3) PRIMARY NONGOVERNMENTAL ORGANIZA20 TION.—The term ‘‘primary nongovernmental organi21 zation’’ means a nongovernmental organization se22 lected by the Secretary on a competitive basis from 

23 among nongovernmental organizations. 

24 (4) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Transportation. 


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1 (5) TIME-SENSITIVE FOOD PRODUCT.— 

2 (A) IN GENERAL.—The term ‘‘time-sen3 sitive food product’’ means a fresh, raw, or 

4 processed food with a short time limitation for 

5 safe and acceptable consumption, as determined 

6 by the Secretary. 

7 (B) INCLUSIONS.—The term ‘‘time-sen8 sitive food product’’ includes fruits, vegetables, 

9 dairy products, meat, fish, and poultry. 

10 (c) NATIONAL FOOD FOR THE HUNGRY TRANSPOR11 TATION FUND.—The Secretary shall offer to enter into 

12 a contract or grant agreement with a primary nongovern13 mental organization to establish a fund, to be known as 

14 the ‘‘National Food for the Hungry Transportation 

15 Fund’’, to track, collect, and deliver time-sensitive food 

16 products. 

17 (d) PROGRAM REQUIREMENTS.—The Secretary shall 

18 ensure that funds made available to carry out this section 

19 are used for— 

20 (1) the development and maintenance of a com21 puterized system for the tracking of time-sensitive 

22 food products; 

23 (2) capital and operating costs associated with 

24 the collection and transportation of time-sensitive 

25 food products; 


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1 (3) capital and operating costs associated with 

2 the storage and distribution of time-sensitive food 

3 products; 

4 (4) job training opportunities in trucking, food 

5 handling, food recovery, and related industries; 

6 (5) improving the security and diversity of the 

7 food distribution and recovery systems of the United 

8 States with the use of— 

9 (A) family-sized farms; and 

10 (B) donations from entities of food prod11 ucts to persons in need; 

12 (6) providing recovered healthy foods to non13 profit emergency food providers to reduce hunger in 

14 the United States; and 

15 (7) improving the identification of— 

16 (A) potential providers of donated foods; 

17 (B) potential nonprofit emergency food 

18 providers; and 

19 (C) persons in need of emergency food as20 sistance throughout the United States. 

21 (e) ADDITIONAL NONGOVERNMENTAL ORGANIZA22 TIONS.— 

23 (1) IN GENERAL.—A primary nongovernmental 

24 organization may enter into 1 or more contracts 

25 with, and provide funds to, not more than 2 other 


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1 nongovernmental organizations that the Secretary 

2 determines meet the requirements of paragraph (2) 

3 to carry out the activities required under this sec4 tion. 

5 (2) REQUIREMENTS.—An additional nongovern6 mental organization selected under paragraph (1) 

7 shall— 

8 (A) have expertise in operating for several 

9 years a national information clearinghouse re10 lating to anti-hunger activities; 

11 (B) have extensive experience in working 

12 with other anti-hunger organizations through13 out the United States; 

14 (C) have significant experience in working 

15 with the Department of Agriculture; and 

16 (D) operate, at a national level, a hotline 

17 to provide information about— 

18 (i) access to food for low-income fami19 lies; 

20 (ii) programs in existence on the date 

21 of enactment of this Act that transport 

22 fresh produce to food pantries, homeless 

23 shelters, and soup kitchens that could 

24 serve as national models for replication in 

25 other areas; and 


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1 (iii) means through which low-income 

2 individuals and families may become self3 reliant. 

4 (f) AUDITS.—The Secretary shall establish fair and 

5 reasonable procedures to audit the expenditure of funds 

6 made available to carry out this section. 

7 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this sec9 tion— 

10 (1) $5,000,000 for fiscal year 2008; and 

11 (2) for each subsequent fiscal year, the applica12 ble amount during the preceding fiscal year, as ad13 justed to reflect changes for the 12-month period 

14 ending the preceding November 30 in the Consumer 

15 Price Index for All Urban Consumers published by 

16 the Bureau of Labor Statistics of the Department of 

17 Labor. 

18 TITLE V—FORESTRY 

19 Subtitle A—Cooperative Forestry 

20 Assistance Act of 1978 

21 SEC. 5001. FOREST LAND ENHANCEMENT PROGRAM. 

22 Section 4(j) of the Cooperative Forestry Assistance 

23 Act of 1978 (16 U.S.C. 2103) is amended by striking sub24 section (j) and inserting the following: 


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1 ‘‘(j) FUNDING.—Of the funds of the Commodity 

2 Credit Corporation, the Secretary shall use to carry out 

3 the Program $100,000,000 during the period beginning 

4 on the date of enactment of the Farm Risk Management 

5 Act for the 21st Century and ending on September 30, 

6 2014.’’. 

7 Subtitle B—Amendments to Other 

8 Laws 

9 SEC. 5101. HEALTHY FORESTS RESERVE PROGRAM. 

10 Section 508 of the Healthy Forests Restoration Act 

11 of 2003 (16 U.S.C. 6578) is amended to read as follows: 

12 ‘‘SEC. 508. FUNDING. 

13 ‘‘For each of fiscal years 2008 through 2013, the 

14 Secretary shall use the funds, facilities, and authorities of 

15 the Commodity Credit Corporation to carry out this title, 

16 including the provision of technical assistance under this 

17 title.’’. 

18 TITLE VI—ENERGY 

19 SEC. 6001. FEDERAL PROCUREMENT OF BIOBASED PROD20 UCTS. 

21 Section 9002(k)(2)(A) of the Farm Security and 

22 Rural Investment Act of 2002 (7 U.S.C. 8102(k)(2)(A)) 

23 is amended by striking ‘‘2007’’ and inserting ‘‘2014’’. 


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1 SEC. 6002. BIOREFINERY DEVELOPMENT GRANTS. 

2 Section 9003 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 8103) is amended— 

4 (1) in the section heading, by striking 

5 ‘‘GRANTS’’; 

6 (2) by striking subsection (c) and inserting the 

7 following: 

8 ‘‘(c) ASSISTANCE.—The Secretary shall award grants 

9 and make loans and loan guarantees to eligible entities 

10 to assist in covering the cost of development and construc11 tion of biorefineries, or the cost of construction or deploy12 ment of methane digesters used to capture the methane 

13 gas from livestock manure for use as a fuel source for 

14 biofuel production, to carry out projects to demonstrate 

15 the commercial viability of 1 or more processes for con16 verting biomass to fuels or chemicals.’’; 

17 (3) in subsection (e)— 

18 (A) by striking ‘‘grants’’ each place it ap19 pears and inserting ‘‘assistance’’; and 

20 (B) in paragraph (2)(A)— 

21 (i) in clause (i), by striking ‘‘and’’ at 

22 the end; 

23 (ii) by redesignating clause (ii) as 

24 clause (iii); and 

25 (iii) by inserting after clause (i) the 

26 following: 


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1 ‘‘(ii) shall select projects based on the 

2 extent to which the projects meet environ3 mental goals for feedstocks and biorefin4 eries, including goals relating to reductions 

5 in greenhouse gas emissions and improve6 ment in water quality and wildlife habitat, 

7 developed by the Secretary, in consultation 

8 with the Secretary of the Interior, the Sec9 retary of Energy, and the National Acad10 emy of Sciences; and’’; and 

11 (4) by striking subsection (h) and inserting the 

12 following: 

13 ‘‘(h) FUNDING.—Of the funds of the Commodity 

14 Credit Corporation, the Secretary shall use to carry out 

15 this section, to remain available until expended— 

16 ‘‘(1) $50,000,000 for each of fiscal years 2008 

17 and 2009; and 

18 ‘‘(2) $75,000,000 for each of fiscal years 2010 

19 through 2014.’’. 

20 SEC. 6003. RURAL ENERGY INNOVATION PROGRAM. 

21 Section 9005 of the Farm Security and Rural Invest22 ment Act of 2002 (7 U.S.C. 8105) is amended— 

23 (1) by striking the section heading and insert24 ing ‘‘RURAL ENERGY INNOVATION

25 PROGRAM.—’’; 


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1 (2) in subsection (a), by striking ‘‘a program’’ 

2 and inserting ‘‘an energy technical assistance pro3 gram’’; 

4 (3) in subsection (b), by striking paragraphs 

5 (5) and (6) and inserting the following: 

6 ‘‘(5) a nonprofit organization (including an ag7 ricultural trade association, resource conservation 

8 and development district, and energy service pro9 vider); 

10 ‘‘(6) a State environmental quality department; 

11 and 

12 ‘‘(7) any other entity, as determined by the Sec13 retary.’’; 

14 (4) in subsection (c), by striking paragraph (2) 

15 and inserting the following: 

16 ‘‘(2) SELECTION CRITERIA.—In reviewing appli17 cations of eligible entities to receive grants under 

18 subsection (a), the Secretary shall consider— 

19 ‘‘(A) the ability and expertise of the eligi20 ble entity in providing professional energy effi21 ciency audits, renewable energy assessments, 

22 environmental management system plans, and 

23 assessments of fertilizer, pesticide, or diesel use 

24 efficiency; 


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1 ‘‘(B) the geographic scope of the program 

2 proposed by the eligible entity; 

3 ‘‘(C) the percentage of farmers, ranchers, 

4 and rural small businesses to be assisted by the 

5 program in the service territory covered by the 

6 eligible entity; 

7 ‘‘(D) the potential for energy savings and 

8 environmental and public health benefits result9 ing from the program; 

10 ‘‘(E) the plan of the eligible entity for pro11 viding information to farmers, ranchers, and 

12 rural small businesses on the benefits of energy 

13 efficiency and renewable energy development; 

14 ‘‘(F) demonstration of multi-stakeholder 

15 collaborations; 

16 ‘‘(G) demonstration of matching funds; 

17 and 

18 ‘‘(H) clear performance metrics.’’; 

19 (5) by striking subsection (d) and inserting the 

20 following: 

21 ‘‘(d) USE OF GRANT FUNDS.— 

22 ‘‘(1) REQUIRED USES.—A recipient of a grant 

23 under subsection (a) shall use the grant funds— 

24 ‘‘(A) to conduct and promote— 

25 ‘‘(i) energy audits; 


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1 ‘‘(ii) assessments of fertilizer, pes2 ticide, or diesel use efficiency; 

3 ‘‘(iii) renewable energy assessments; 

4 or 

5 ‘‘(iv) environmental management sys6 tem planning; 

7 ‘‘(2) to make farmers, ranchers, and rural small 

8 businesses aware of and able to apply for and ensure 

9 access to— 

10 ‘‘(A) financial assistance under section 

11 9006; and 

12 ‘‘(B) other Federal, State, and local finan13 cial assistance programs for which farmers, 

14 ranchers, and rural small businesses may be eli15 gible; or 

16 ‘‘(3) to employ staff that— 

17 ‘‘(A) serve as central points of contact for 

18 farmers, ranchers and rural businesses seeking 

19 to evaluate energy practices and technologies; 

20 and 

21 ‘‘(B) are properly trained to collect data 

22 for audits and renewable energy assessments. 

23 ‘‘(4) PERMITTED USES.—A recipient of a grant 

24 may use funds to finance— 


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1 ‘‘(A) in partnership with the private sector, 

2 agricultural demonstrations to demonstrate 

3 cost-effective high efficiency equipment and en4 ergy management practices such as precision 

5 agriculture, proper tire tractor inflation, and 

6 conservation tillage; and 

7 ‘‘(B) educational workshops on different 

8 clean energy technologies and techniques.’’; 

9 (6) in subsection (e)— 

10 (A) by striking ‘‘an energy audit’’ and in11 serting ‘‘energy technical assistance’’; 

12 (B) by striking ‘‘the energy audit’’ and in13 serting ‘‘the energy technical assistance’’; and 

14 (C) by striking ‘‘the audit’’ and inserting 

15 ‘‘the technical assistance’’; 

16 (7) in subsection (h), by striking ‘‘this Act’’ and 

17 inserting ‘‘Farm Risk Management Act for the 21st 

18 Century’’; and 

19 (8) by striking subsection (i) and inserting the 

20 following: 

21 ‘‘(i) LIMITATION.—A recipient of a grant under sub22 section (a) may receive no more than $250,000 in any 1 

23 grant cycle. 

24 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— 


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1 ‘‘(1) IN GENERAL.—There are authorized to be 

2 appropriated to carry out this section— 

3 ‘‘(A) $5,000,000 for fiscal year 2008; 

4 ‘‘(B) $10,000,000 for fiscal year 2009; 

5 ‘‘(C) $15,000,000 for fiscal year 2010; 

6 ‘‘(D) $20,000,000 for fiscal year 2011; 

7 and 

8 ‘‘(E) $25,000,000 for each of fiscal years 

9 2012 through 2014. 

10 ‘‘(2) USE OF CERTAIN FUNDS.—The Secretary 

11 may use not more than 10 percent of amounts made 

12 available under paragraph (1) to— 

13 ‘‘(A) increase or modify energy technical 

14 assistance programs funded under this section; 

15 or 

16 ‘‘(B) develop training programs that en17 able administrators of existing technical assist18 ance programs to help other eligible entities es19 tablish technical assistance programs.’’. 

20 SEC. 6004. RURAL ENERGY FOR AMERICA PROGRAM. 

21 Section 9006 of the Farm Security and Rural Invest22 ment Act of 2002 (7 U.S.C. 8106)) is amended— 

23 (1) by striking the section enumerator and 

24 heading and inserting the following: 


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1 ‘‘SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.’’; 

2 (2) in subsection (a)— 

3 (A) by inserting ‘‘, and issue rebates,’’ 

4 after ‘‘grants’’; and 

5 (B) by inserting ‘‘rural school districts,’’ 

6 after ‘‘ranchers,’’; 

7 (3) by striking subsection (f); 

8 (4) by redesignating subsection (e) as sub9 section (h); 

10 (5) by inserting after subsection (d) the fol11 lowing: 

12 ‘‘(e) PRODUCTION-BASED INCENTIVE IN LIEU OF

13 GRANT.— 

14 ‘‘(1) IN GENERAL.—In addition to the authority 

15 under subsection (a), to encourage the production of 

16 electricity from renewable energy systems, the Sec17 retary shall, on the request of an eligible applicant 

18 under this section, make production-based payments 

19 to the applicant in lieu of a grant. 

20 ‘‘(2) CONTINGENCY.—Payments under para21 graph (1) shall be contingent on documented energy 

22 production and sales from the renewable energy sys23 tem to a third party. 

24 ‘‘(3) LIMITATION.—The total net present value 

25 of a production-based incentive may not exceed the 

26 lower of— 


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1 ‘‘(A) 25 percent of the eligible project 

2 costs; and 

3 ‘‘(B) any other limits that the Secretary 

4 establishes by rule or guidance. 

5 ‘‘(f) FEASIBILITY STUDIES.— 

6 ‘‘(1) IN GENERAL.—The Secretary may provide 

7 assistance to eligible applicants to conduct feasibility 

8 studies of projects for which assistance may be pro9 vided under this section. 

10 ‘‘(2) LIMITATION.—The Secretary shall use not 

11 more than 10 percent of funds made available to 

12 carry out this section to provide assistance described 

13 in paragraph (1). 

14 ‘‘(3) CRITERIA.—The Secretary shall, by regu15 lation, establish criteria for the receipt of assistance 

16 under this subsection. 

17 ‘‘(4) AVOIDANCE OF DUPLICATIVE ASSIST18 ANCE.—An applicant that receives assistance to 

19 carry out a feasibility study for a project under this 

20 subsection shall not be eligible for assistance to 

21 carry out a feasibility study for the project under 

22 any other provision of Federal law. 

23 ‘‘(5) MATCHING FUNDS.—To be eligible for as24 sistance under this subsection, a recipient of funds 

25 under this subsection shall contribute an amount of 


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1 non-Federal funds that is equal to at least 75 per2 cent of the amount of Federal funds received. 

3 ‘‘(g) REBATE PROGRAM.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall make 

5 competitive grants to eligible entities to provide re6 bates for farmers, ranchers, rural school districts, 

7 and rural small businesses to purchase renewable en8 ergy systems and make energy efficiency improve9 ments. 

10 ‘‘(2) ELIGIBLE ENTITIES.—To be eligible to re11 ceive a grant under paragraph (1), an entity shall 

12 be— 

13 ‘‘(A) a State energy or agricultural office; 

14 ‘‘(B) a nonprofit State-based energy effi15 ciency or renewable energy organization that 

16 uses public funds provided directly or under 

17 contract with a State agency; 

18 ‘‘(C) any other nonprofit organization with 

19 a demonstrated ability to administer a State20 wide energy efficiency or renewable energy re21 bate program; or 

22 ‘‘(D) a consortium of entities described in 

23 subparagraphs (A) through (C). 

24 ‘‘(3) MERIT REVIEW.— 


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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 establish a merit review process to review appli3 cations for grants under paragraph (1) that 

4 uses the expertise of the Department of Agri5 culture, other Federal and State agencies, and 

6 non-governmental organizations. 

7 ‘‘(B) REQUIREMENTS.—In reviewing the 

8 application of an eligible entity to receive a 

9 grant under paragraph (1), the Secretary shall 

10 consider— 

11 ‘‘(i) the experience and expertise of 

12 the entity in establishing and admin13 istering a State-wide clean energy rebate 

14 program; 

15 ‘‘(ii) the annual projected energy sav16 ings or production increases resulting from 

17 the proposed program; 

18 ‘‘(iii) the environmental benefits re19 sulting from the proposed program; and 

20 ‘‘(iv) other appropriate factors, as de21 termined by the Secretary. 

22 ‘‘(4) MAINTENANCE OF EFFORT.—An entity 

23 that receives a grant under paragraph (1) shall pro24 vide assurances to the Secretary that funds provided 

25 to the entity under this subsection will be used to 


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1 supplement, not to supplant, the amount of Federal, 

2 State, and local funds otherwise expended for rebate 

3 programs. 

4 ‘‘(5) REBATE AMOUNT.—The amount of a re5 bate provided from a grant under this subsection 

6 shall not exceed the lower of— 

7 ‘‘(A) $10,000; or 

8 ‘‘(B) 50 percent of the cost incurred to 

9 purchase a renewable energy system or an en10 ergy efficiency improvement, as determined by 

11 the Secretary.’’; and 

12 (6) by adding at the end the following: 

13 ‘‘(i) FUNDING.—Of the funds of the Commodity 

14 Credit Corporation, the Secretary shall make available to 

15 carry out this section, to remain available until ex16 pended— 

17 ‘‘(1) $60,000,000 for fiscal year 2008, of which 

18 not more than $12,000,000 shall be used to carry 

19 out subsection (g); 

20 ‘‘(2) $90,000,000 for fiscal year 2009, of which 

21 not more than $18,000,000 shall be used to carry 

22 out subsection (g); 

23 ‘‘(3) $130,000,000 for fiscal year 2010, of 

24 which not more than $26,000,000 shall be used to 

25 carry out subsection (g); 


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1 ‘‘(4) $180,000,000 for fiscal year 2011, of 

2 which not more than $36,000,000 shall be used to 

3 carry out subsection (g); and 

4 ‘‘(5) $200,000,000 for each of fiscal years 2012 

5 through 2014, of which not more than $50,000,000 

6 shall be used to carry out subsection (g).’’. 

7 SEC. 6005. BIOMASS RESEARCH AND DEVELOPMENT. 

8 (a) DISTRIBUTION OF FUNDING BY AND WITHIN

9 EACH TECHNICAL AREA.—Section 307(g) of the Biomass 

10 Research and Development Act of 2000 (7 U.S.C. 

11 8606(g)) is amended in paragraphs (2) and (3) by striking 

12 ‘‘2010’’ each place it appears and inserting ‘‘2014’’. 

13 (b) FUNDING.—Section 310 of the Biomass Research 

14 and Development Act of 2000 (7 U.S.C. 8609) is amended 

15 to read as follows: 

16 ‘‘SEC. 310. FUNDING. 

17 ‘‘(a) FUNDING.—Of the funds of the Commodity 

18 Credit Corporation, the Secretary shall use to carry out 

19 this section, to remain available until expended— 

20 ‘‘(1) $100,000,000 for each of fiscal years 2008 

21 through 2012; and 

22 ‘‘(2) $200,000,000 for each of fiscal years 2013 

23 through 2014. 

24 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—In ad25 dition to amounts transferred under subsection (a), there 


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1 is authorized to be appropriated to carry out this title 

2 $200,000,000 for each of fiscal years 2006 through 2015, 

3 to remain available until expended.’’. 

4 TITLE VII—MISCELLANEOUS 

5 Subtitle A—Crop Insurance 

6 SEC. 7001. ADJUSTED GROSS REVENUE INSURANCE PILOT 

7 PROGRAM. 

8 Section 523(e) of the Federal Crop Insurance Act (7 

9 U.S.C. 1523(e)) is amended— 

10 (1) in paragraph (1), by striking ‘‘2004 rein11 surance year’’ and inserting ‘‘2010 reinsurance 

12 year’’; and 

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

14 (A) and inserting the following: 

15 ‘‘(A) IN GENERAL.—In addition to coun16 ties otherwise included in the pilot program, the 

17 Corporation shall include in the pilot program 

18 for the 2008 reinsurance year all States and 

19 counties that meet the criteria for selection 

20 (pending required rating), as determined by the 

21 Corporation.’’. 

22 SEC. 7002. REPORT. 

23 Not later than 180 days after the date of enactment 

24 of this Act, the Secretary shall submit to the Committee 

25 on Agriculture of the House of Representatives and the 


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1 Committee on Agriculture, Nutrition, and Forestry of the 

2 Senate a report that describes recommendations for legis3 lative or regulatory changes that would save at least 

4 $1,000,000,000 per fiscal year in Federal expenditures in 

5 carrying out the Federal crop insurance program while— 

6 (1) not reducing overall risk management op7 tions to agricultural producers; 

8 (2) expanding whole farm revenue-based insur9 ance programs to all agricultural operations in all 

10 States; and 

11 (3) maintaining actuarial soundness. 

12 Subtitle B—Specialty Crops 

13 SEC. 7101. FARMERS’ MARKET PROMOTION PROGRAM. 

14 Section 6 of the Farmer-to-Consumer Direct Mar15 keting Act of 1976 (7 U.S.C. 3005) is amended by strik16 ing subsections (d) and (e) and inserting the following: 

17 ‘‘(d) CRITERIA AND GUIDELINES.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall estab19 lish criteria and guidelines for the submission, eval20 uation, and funding of proposed projects under the 

21 Program. 

22 ‘‘(2) PRIORITY.—The Secretary shall prioritize 

23 for funding projects that would support, encourage, 

24 or promote the transition to organic and other enviVerDate Aug 31 2005 21:12 May 18, 2007 Jkt 059200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\S1422.IS S1422

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1 ronmentally beneficial forms of agricultural produc2 tion. 

3 ‘‘(e) FUNDING.—Of the funds of the Commodity 

4 Credit Corporation, the Secretary shall use to carry out 

5 this section $25,000,000 for each of fiscal years 2008 

6 through 2014, to remain available until expended.’’. 

7 SEC. 7102. FRUIT AND VEGETABLE NUTRITION PROMOTION 

8 PROGRAM. 

9 The Specialty Crops Competitiveness Act of 2004 (7 

10 U.S.C. 1621 note; Public Law 108–465) is amended by 

11 adding at the end of title II the following: 

12 ‘‘SEC. 204. FRUIT AND VEGETABLE NUTRITION PROMOTION 

13 PROGRAM. 

14 ‘‘(a) IN GENERAL.—The Secretary of Agriculture 

15 (acting through the Administrator of the Agricultural 

16 Marketing Service) (referred to in this section as the ‘Sec17 retary’) shall establish and carry out a program to provide 

18 assistance to eligible trade organizations described in sub19 section (c) to increase the consumption of fruits and vege20 tables in the United States to meet Federal health guide21 lines. 

22 ‘‘(b) REQUIREMENTS FOR PARTICIPATION.—To be 

23 eligible for assistance under this section, an organization 

24 shall— 

25 ‘‘(1) be an eligible trade organization; 


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1 ‘‘(2) prepare and submit a plan to increase the 

2 consumption of fruits and vegetables in the United 

3 States to the Secretary that meets any guidelines 

4 governing such plans established by the Secretary; 

5 and 

6 ‘‘(3) meet any other requirements established 

7 by the Secretary. 

8 ‘‘(c) ELIGIBLE TRADE ORGANIZATIONS.—An eligible 

9 trade organization under this section shall be— 

10 ‘‘(1) a nonprofit fruit or vegetable trade organi11 zation in the United States; 

12 ‘‘(2) a nonprofit State or regional fruit or vege13 table organization; 

14 ‘‘(3) a fruit or vegetable agricultural coopera15 tive in the United States; 

16 ‘‘(4) a commodity board or commission in the 

17 United States; or 

18 ‘‘(5) a small business engaged in the fruit or 

19 vegetable industry in the United States. 

20 ‘‘(d) MATCHING FUNDS.—Assistance provided under 

21 this section shall not exceed— 

22 ‘‘(1) in the case of an organization described in 

23 paragraphs (1) through (4) of subsection (c), 90 

24 percent of the cost of carrying out a plan to increase 

25 the consumption of fruits and vegetables in the 


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1 United States submitted under subsection (b)(2); 

2 and 

3 ‘‘(2) in the case of an organization described in 

4 subsection (c)(5), 50 percent of the cost of carrying 

5 out a plan to increase the consumption of fruits and 

6 vegetables in the United States submitted under 

7 subsection (b)(2). 

8 ‘‘(e) FUNDING.—Of the funds of the Commodity 

9 Credit Corporation, the Secretary shall use to carry out 

10 this section $10,000,000 for each of fiscal years 2008 

11 through 2014, to remain available until expended.’’. 

Æ 


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