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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1422 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Farm Risk 
Management Act for the 21st Century''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                   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.
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.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of 
Agriculture.

                   TITLE I--RISK MANAGEMENT ACCOUNTS

SEC. 1001. DEFINITIONS.

    In this title:
            (1) Adjusted gross revenue.--The term ``adjusted gross 
        revenue'', with respect to a farm of an operator or producer, 
        means the adjusted gross income of the farm, as determined by 
        the Secretary, from the sale or transfer of eligible 
        commodities of the farm, as calculated--
                    (A) taking into consideration the gross receipts 
                (including insurance indemnities) from each sale;
                    (B) including all farm payments received by the 
                operator or producer from any Federal, State, or local 
                government agency relating to the eligible commodities;
                    (C) by deducting the cost or basis of any eligible 
                livestock or other item purchased for resale, such as 
                feeder livestock, by the farm;
                    (D) excluding any revenue that does not arise from 
                the sale of eligible commodities of the farm, such as 
                revenue associated with the packaging, merchandising, 
                marketing, or reprocessing beyond what is typically 
                carried out by a producer of the eligible commodity, as 
                determined by the Secretary; and
                    (E) using such adjustments, additions, and 
                additional documentation as the Secretary determines to 
                be appropriate, as presented on--
                            (i) a schedule F form of the Federal income 
                        tax returns of the operator or producer; or
                            (ii) a comparable tax form relating to the 
                        farm, as approved by the Secretary.
            (2) Agricultural crop.--The term ``agricultural crop'' 
        means any annual or perennial crop raised or produced by an 
        operator or producer.
            (3) Applicable year.--The term ``applicable year'' means a 
        fiscal year covered by a risk management account contract.
            (4) Average adjusted gross revenue.--The term ``average 
        adjusted gross revenue'' means--
                    (A) the rolling average of the adjusted gross 
                revenue of an operator or producer for each of the 5 
                preceding taxable years; or
                    (B) in the case of a beginning farmer or rancher, 
                or another agricultural operation that does not have 
                adjusted gross revenue for each of the 5 preceding 
                taxable years, the estimated income of the operation 
                for the applicable year, as determined by the 
                Secretary.
            (5) Dairy product.--The term ``dairy product'' means fluid 
        milk produced on a farm or ranch.
            (6) Eligible commodity.--The term ``eligible commodity'' 
        means--
                    (A) an agricultural crop; and
                    (B) a dairy product.
            (7) Farm.--
                    (A) In general.--The term ``farm'' means any parcel 
                of land used for the raising or production of an 
                eligible commodity that is considered to be a separate 
                operation, as determined by the Secretary.
                    (B) Inclusions.--The term ``farm'' includes--
                            (i) any parcel of land and related 
                        agricultural production facilities on which an 
                        operator or producer has more than de minimis 
                        operational control; and
                            (ii) any parcel of land subject to more 
                        than de minimis common ownership, as determined 
                        by the Secretary, unless the common owners of 
                        the parcel--
                                    (I) except with respect to a 
                                conservation condition established in 
                                an applicable rental agreement, do not 
                                have operational control regarding any 
                                portion of the parcel; and
                                    (II) do not share in the proceeds 
                                of the parcel, other than cash rent.
                    (C) Exclusion.--The term ``farm'' does not include 
                a parcel that is not a portion of a farm subject to a 
                risk management account contract.
                    (D) Applicability of cfr.--Except as otherwise 
                provided in this title or by the Secretary, by 
                regulation, part 718 of title 7, Code of Federal 
                Regulations (or successor regulations), shall apply to 
                the definition, constitution, and reconstitution of a 
                farm for purposes of this paragraph.
            (8) Operator.--The term ``operator'' means a producer who 
        controls an agricultural operation on a farm, as determined by 
        the Secretary.
            (9) Producer.--The term ``producer'' means a person that, 
        as determined by the Secretary, for an applicable year--
                    (A) shares in the risk of producing, or provides a 
                material contribution in producing, an eligible 
                commodity;
                    (B) has a substantial beneficial interest in the 
                farm on which the eligible commodity is produced;
                    (C)(i) for each of the 5 preceding taxable years, 
                has filed--
                            (I) a schedule F form of the Federal income 
                        tax return relating to the eligible commodity; 
                        or
                            (II) a comparable tax form related to the 
                        eligible commodity, as approved by the 
                        Secretary; or
                    (ii) is a beginning farmer or rancher, or another 
                producer that does not have adjusted gross revenue for 
                each of the 5 preceding taxable years, as determined by 
                the Secretary; and
                    (D)(i) during the 5 preceding taxable years, has 
                earned at least $10,000 in average adjusted gross 
                revenue;
                    (ii) is a limited resource farmer or rancher, as 
                determined by the Secretary; or
                    (iii) in the case of a beginning farmer or rancher, 
                or another producer that does not have adjusted gross 
                revenue for each of the 5 preceding taxable years, has 
                at least $10,000 in estimated income from all farms for 
                the applicable year, as determined by the Secretary.
            (10) Risk management account.--The term ``risk management 
        account'' means a farm income stabilization assistance account 
        maintained at a qualified financial institution in accordance 
        with such terms as the Secretary may establish.
            (11) Risk management account contract.--The term ``risk 
        management account contract'' means a farm income stabilization 
        assistance contract entered into under section 1002.

SEC. 1002. RISK MANAGEMENT ACCOUNT CONTRACTS.

    (a) Establishment of Program.--The Secretary shall establish and 
carry out a program under which the Secretary shall offer to enter into 
contracts with eligible operators and producers in accordance with this 
section--
            (1) to provide to the operators and producers a reserve to 
        assist in the stabilization of farm income during low-revenue 
        years;
            (2) to assist operators and producers to invest in value-
        added farms; and
            (3) to recognize high levels of environmental stewardship.
    (b) Eligibility.--
            (1) In general.--Any operator that has participated in a 
        commodity program under title I of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 7901 et seq.), and that 
        otherwise meets each eligibility requirement under this title, 
        shall be eligible to enter into a risk management account 
        contract for agricultural production during each of fiscal 
        years 2008 through 2014.
            (2) Other producers.--A producer that is not an operator 
        described in paragraph (1) shall be eligible to enter into a 
        risk management account contract for agricultural production 
        during each of fiscal years 2008 through 2014.
            (3) Limitations.--
                    (A) In general.--No farm or portion of a farm shall 
                be subject to more than 1 risk management account 
                contract during any fiscal year.
                    (B) Multiple risk management account contracts.--
                            (i) In general.--Except as provided in 
                        clause (ii), no operator or producer shall 
                        participate or have a beneficial interest in 
                        more than 1 risk management account contract 
                        during any fiscal year.
                            (ii) Exception.--Notwithstanding clause 
                        (i), an operator that is eligible to receive a 
                        transition payment during a fiscal year, and 
                        that participates or has a beneficial interest 
                        in a risk management account contract during 
                        that fiscal year, may enter into an additional 
                        risk management account contract during the 
                        fiscal year if--
                                    (I) the additional risk management 
                                account contract is entered into solely 
                                for the purpose of receiving the 
                                transition payment; and
                                    (II) the operator is not otherwise 
                                eligible to participate or have a 
                                beneficial interest in the additional 
                                risk management account contract.
    (c) Risk Management Accounts.--
            (1) In general.--Each risk management account contract 
        entered into under this section shall establish, in the name of 
        the farm of the operator or producer, as applicable, in an 
        appropriate financial institution and subject to such 
        investment rules and other procedures as the Secretary, on 
        approval of the Secretary of the Treasury, determines to be 
        necessary to provide reasonable assurance of the viability and 
        stability of the account, a risk management account, to consist 
        of--
                    (A) such amounts as are transferred to the risk 
                management account by the Secretary during an 
                applicable year in accordance with paragraph (2) 
                (including the amendments made by that paragraph); and
                    (B) such amounts as are voluntarily contributed by 
                the operator or producer during the applicable year in 
                accordance with paragraph (6).
            (2) Transfers.--
                    (A) Availability of direct payments.--Section 1103 
                of the Farm Security and Rural Investment Act of 2002 
                (7 U.S.C. 7913) is amended--
                            (i) in subsection (a), by striking ``For 
                        each of the 2002 through 2007'' and inserting 
                        ``For each of the 2008 through 2014'';
                            (ii) in subsection (c), by adding at the 
                        end the following:
            ``(4)(A) In crop year 2008, 90 percent.
            ``(B) In crop year 2009, 85 percent.
            ``(C) In crop year 2010, 50 percent.
            ``(D) In crop year 2011, 25 percent.
            ``(E) In each of crop years 2012 and 2013, 10 percent.
            ``(F) In crop year 2014, 0 percent.'' and
                            (iii) by adding at the end the following:
    ``(e) Risk Management Accounts.--Of the total amount of direct 
payments made to producers on a farm under this section, the following 
amounts shall be deposited into risk management accounts established 
under section 1002 of the Farm Risk Management Act for the 21st 
Century:
            ``(1) In each of crop years 2008 and 2009, 50 percent.
            ``(2) In each of crop years 2010 and 2011, 75 percent.
            ``(3) In each of crop years 2012 and 2013, 100 percent.''.
                    (B) Availability of counter-cyclical payments.--
                Section 1104 of the Farm Security and Rural Investment 
                Act of 2002 (7 U.S.C. 7914) is amended--
                            (i) by striking ``2007'' each place it 
                        appears (other than paragraphs (3)(B) and 
                        (4)(B) of subsection (f)) and inserting 
                        ``2008''; and
                            (ii) in subsection (f)--
                                    (I) in paragraph (3)(B)--
                                            (aa) in the subparagraph 
                                        heading, by striking ``2007 
                                        crop year'' and inserting 
                                        ``2007 and 2008 crop years''; 
                                        and
                                            (bb) by striking ``the 2007 
                                        crop year'' and inserting 
                                        ``each of the 2007 and 2008 
                                        corp years''; and
                                    (II) in paragraph (4)(B)--
                                            (aa) in the subparagraph 
                                        heading, by striking ``2007 
                                        crop year'' and inserting 
                                        ``2007 and 2008 crop years''; 
                                        and
                                            (bb) by striking ``the 2007 
                                        crop year'' each place it 
                                        appears and inserting ``each of 
                                        the 2007 and 2008 crop years''.
                    (C) Dairy.--Section 1502 of the Farm Security and 
                Rural Investment Act of 2002 (7 U.S.C. 7982) is amended 
                to read as follows:

``SEC. 1502. DAIRY.

    ``(a) In General.--For each of fiscal years 2008 through 2012, the 
Secretary shall make an equal annual payment to producers on a dairy 
farm.
    ``(b) Amount.--The total amount of payments made under subsection 
(a) to the producers on a dairy farm shall be equal to 25 percent of 
the average amount of payments that the producers on the dairy farm 
received under this section during the period of fiscal years 2003 
through 2007.
    ``(c) Availability of Payments.--For each payment described in 
subsection (a)--
            ``(1) 50 percent shall be made directly to the producer; 
        and
            ``(2) 50 percent shall be placed in the risk management 
        account for the producers on the dairy farm established 
        pursuant to section 1002 of the Farm Risk Management Act for 
        the 21st Century.''.
                    (D) Stewardship payments.--
                            (i) Amount.--
                                    (I) In general.--For each 
                                applicable year during fiscal years 
                                2010 through 2014, the Secretary shall 
                                transfer to the risk management account 
                                of an operator or producer described in 
                                subclause (II) a stewardship payment in 
                                an amount equal to a percentage, as 
                                determined under clause (ii), of the 
                                adjusted gross revenue of the operator 
                                or producer for the applicable year, 
                                based on the level of stewardship of 
                                the conservation plan, as determined by 
                                the Chief of the Natural Resources 
                                Conservation Service, in accordance 
                                with subsection (d).
                                    (II) Eligibility.--To be eligible 
                                to receive a stewardship payment under 
                                subclause (I), an operator or producer 
                                shall comply with a conservation plan 
                                that describes the conservation and 
                                performance measures to be maintained 
                                or achieved on the farm of the operator 
                                or producer.
                            (ii) Percentages.--The Secretary shall 
                        transfer to the risk management account of an 
                        operator or producer described in clause (i) an 
                        amount equal to--
                                    (I) for an operator or producer 
                                that complies with a level 1 
                                conservation plan, $0;
                                    (II) for an operator or producer 
                                that complies with a level 2 
                                conservation plan, an amount equal to 
                                the sum of--
                                            (aa) 3 percent of the 
                                        adjusted gross revenue of the 
                                        operator or producer that are 
                                        not more than $250,000; and
                                            (bb) 0.5 percent of the 
                                        adjusted gross revenue of the 
                                        operator or producer that are 
                                        more than $250,000 and less 
                                        than $1,000,000; and
                                    (III) for an operator or producer 
                                that complies with a level 3 
                                conservation plan, an amount equal to 
                                the sum of--
                                            (aa) 4 percent of adjusted 
                                        the gross revenue of the 
                                        operator or producer that are 
                                        not more than $250,000; and
                                            (bb) 1 percent of adjusted 
                                        the gross revenue of the 
                                        operator or producer that are 
                                        more than $250,000 and less 
                                        than $1,000,000.
            (3) Operator and producer contributions.--During any 
        applicable year, an operator or producer may voluntarily 
        contribute to the risk management account of the operator or 
        producer not more than $8,000.
            (4) Withdrawals.--
                    (A) In general.--An operator or producer may 
                withdraw amounts in the risk management account of the 
                operator or producer only--
                            (i) for an applicable year during which the 
                        adjusted gross revenue of the operator or 
                        producer is equal to less than 95 percent of 
                        the average adjusted gross revenue of the 
                        operator or producer, in an amount that is 
                        equal to the lesser of--
                                    (I) the difference between--
                                            (aa) the average adjusted 
                                        gross revenue of the operator 
                                        or producer; and
                                            (bb) the adjusted gross 
                                        revenue of the operator or 
                                        producer; and
                                    (II) the amount of coverage that 
                                could be purchased under an adjusted 
                                gross revenue product available to the 
                                operator or producer through the 
                                Federal crop insurance program;
                            (ii) for investment in a value-added 
                        agricultural operation that contributes to the 
                        agricultural economy, as determined by the 
                        Secretary, and is not farmland or equipment 
                        used to produce raw agricultural products, an 
                        amount equal to the product obtained by 
                        multiplying--
                                    (I) the total amount in the risk 
                                management account of the operator or 
                                producer on September 30 of the 
                                preceding applicable year; and
                                    (II) 10 percent;
                            (iii) as the Secretary determines to be 
                        necessary to protect the solvency of a farm of 
                        the operator or producer; or
                            (iv) to purchase revenue insurance or crop 
                        insurance.
                    (B) Transfer to ira account.--In any calendar year, 
                an individual operator or producer aged 65 years or 
                older who is the holder of a risk management account in 
                existence for at least 5 years may elect to rollover 
                not more than 15 percent of the balance of the risk 
                management account into an individual retirement 
                account pursuant to section 408 of the Internal Revenue 
                Code of 1986.
            (5) Limitations.--
                    (A) Attribution requirement.--The Secretary shall 
                ensure that each payment transferred to a risk 
                management account under this subsection is attributed 
                to an individual operator or producer that is a party 
                to the applicable risk management account contract.
                    (B) No individual benefit.--
                            (i) In general.--The Secretary shall ensure 
                        that no individual operator or producer 
                        receives a direct benefit from more than 1 risk 
                        management account account.
                            (ii) Proportional reduction.--The Secretary 
                        shall reduce the amount of a standard payment 
                        or stewardship payment under this subsection in 
                        an amount equal to the proportion that--
                                    (I) the amount of each direct or 
                                indirect benefit received by the 
                                applicable individual operator or 
                                producer under the applicable risk 
                                management account contract; bears to
                                    (II) the amount of any direct or 
                                indirect benefit received by the 
                                individual operator or producer under 
                                any other risk management account 
                                contract under which a standard or 
                                stewardship payment is transferred to a 
                                risk management account.
                    (C) Maximum amount.--The total amount of standard 
                and stewardship payments attributed to an individual 
                operator or producer for any applicable year shall not 
                exceed the maximum total payment a risk management 
                account is eligible to receive during the applicable 
                year.
            (6) Conservation compliance.--Each operator, and each 
        holder of a beneficial interest in a farm subject to a risk 
        management account contract, shall comply with--
                    (A) applicable highly erodible land conservation 
                requirements under subtitle B of title XII of the Food 
                Security Act of 1985 (16 U.S.C. 3811 et seq.); and
                    (B) applicable wetland conservation requirements 
                under subtitle C of title XII of that Act (16 U.S.C. 
                3821 et seq.).
            (7) Regulations.--The Secretary shall promulgate such 
        regulations as the Secretary determines to be necessary to 
        carry out this subsection.
    (d) Administration of Stewardship Payments.--
            (1) Determination of levels.--
                    (A) In general.--The Secretary shall establish a 
                stewardship index through which conservation plans of 
                farms that are subject to risk management account 
                contracts shall be categorized.
                    (B) Levels.--The index under subparagraph (A) shall 
                be comprised of 5 levels, of which--
                            (i) level 1 shall represent the lowest 
                        level of stewardship of a conservation plan; 
                        and
                            (ii) level 5 shall represent the highest 
                        level of stewardship of a conservation plan.
                    (C) Requirements.--
                            (i) In general.--The Secretary shall ensure 
                        that each level of the index consists of an 
                        equal number of farms.
                            (ii) Factors for consideration.--In 
                        classifying farms into the index under this 
                        paragraph, the Secretary shall take into 
                        consideration--
                                    (I) the production type of the 
                                farms; and
                                    (II) such other factors as the 
                                Secretary determines to be appropriate 
                                to ensure that each farm is evaluated 
                                using the same criteria.
            (2) Eligibility.--To be eligible to receive a stewardship 
        payment under subsection (c)(2)(D), an operator or producer 
        shall--
                    (A) ensure that the farm of the operator or 
                producer complies with a conservation plan that--
                            (i) describes the conservation practices, 
                        measures, and performance standards to be 
                        achieved by the farm to maintain the 
                        stewardship level of the conservation plan; and
                            (ii) is objective, specific, and written in 
                        plain language, to the maximum extent 
                        practicable;
                    (B) submit to the Secretary--
                            (i) together with the risk management 
                        account contract of the operator or producer a 
                        copy of the conservation plan of the applicable 
                        farm (including a concise summary of the plan); 
                        and
                            (ii) a certified application at such time, 
                        in such manner, and containing such information 
                        as the Secretary may require; and
                    (C) accommodate such on-farm evaluations as the 
                Secretary determines to be necessary.
            (3) Notification.--The Secretary shall provide to each 
        operator and producer selected to receive a stewardship payment 
        under paragraph (2) a notification of--
                    (A) the stewardship level of the conservation plan 
                of the applicable farm; and
                    (B) the amount of the stewardship payment to be 
                transferred to the risk management account of the farm.
            (4) Certification requirement.--
                    (A) In general.--As a condition of receiving a 
                stewardship payment under subsection (c)(2)(D) for an 
                applicable year, an operator or producer shall certify 
                to the Secretary that the farm subject to the 
                applicable risk management account contract is in 
                compliance with--
                            (i) the conservation plan of the farm; and
                            (ii) such other conservation requirements 
                        as the Secretary may establish.
                    (B) Failure to certify.--In any applicable year 
                during which an operator or producer does not make a 
                certification under subparagraph (A)--
                            (i) the Secretary shall not transfer to the 
                        risk management account of the operator or 
                        producer a stewardship payment; but
                            (ii) the Secretary shall not--
                                    (I) reduce the amount of any other 
                                payment to the risk management account; 
                                or
                                    (II) impose on the operator or 
                                producer any other penalty.
            (5) Evaluations.--
                    (A) In general.--To ensure compliance with an 
                applicable conservation plan, the Secretary shall 
                ensure that each farm that receives a stewardship 
                payment under subsection (c)(2)(D) is independently 
                evaluated not less that once during the term of the 
                applicable risk management account contract.
                    (B) Certification of private entities.--The 
                Secretary, in coordination with appropriate private, 
                cooperative entities, may certify to carry out 
                evaluations under subparagraph (A) such private 
                entities as the Secretary determines to be appropriate 
                to ensure compliance with conservation plans.
                    (C) Reimbursement.--The Secretary may reimburse the 
                Chief of the Natural Resources Conservation Service for 
                the cost of any evaluation carried out by the Chief 
                under subparagraph (A).

SEC. 1003. TREATMENT OF RISK MANAGEMENT ACCOUNT ACCOUNTS ON TRANSFER.

    (a) In General.--In transferring, by sale or other means, any 
interest in a farm subject to a risk management account, an operator or 
producer may elect--
            (1) to transfer the risk management account to another farm 
        in which the operator or producer--
                    (A) has a controlling ownership interest; or
                    (B) not later than 2 years after the date of the 
                transfer, will acquire a controlling ownership 
                interest;
            (2) to transfer the risk management account to the 
        purchaser of the interest in the farm, if the purchaser is not 
        already a holder of a risk management account; or
            (3)(A) if the operator or producer is an individual, to 
        rollover amounts in the risk management account account into an 
        individual retirement account of the operator or producer 
        pursuant to section 408 of the Internal Revenue Code of 1986; 
        or
            (B) if the operator or producer is not an individual, to 
        transfer amounts in the risk management account into an account 
        of any individual who has a substantial beneficial interest in 
        the farm (including a substantial beneficiary of a trust that 
        holds at least a 50 percent ownership interest in the farm).
    (b) Transfer or Acquisition of Land or Portion of Operation.--The 
Secretary shall promulgate such regulations as the Secretary determines 
to be appropriate to require reformulation, reaffirmation, or 
abandonment of a risk management account contract--
            (1) on transfer of all or part of a farm under this 
        section; or
            (2) on any other major change to the farm, as determined by 
        the Secretary.

SEC. 1004. TAX TREATMENT OF RISK MANAGEMENT ACCOUNT ACCOUNTS.

    (a) Transfers.--No transfer by the Secretary, or by an operator or 
producer, of funds to a risk management account pursuant to this title 
shall be subject to Federal income tax.
    (b) Withdrawals.--A withdrawal of funds from a risk management 
account pursuant to section 1002(c)(4) shall be treated as part of the 
gross income of an operator or producer for the calendar year during 
which the funds are withdrawn.
    (c) Rollovers.--
            (1) In general.--A rollover of amounts in a risk management 
        account into an individual retirement account pursuant to 
        section 1002(c)(4)(B) or 1003(a)(3) shall not be subject to 
        Federal income tax.
            (2) Termination without rollover.--If a risk management 
        account is terminated without a rollover under section 
        1002(c)(4)(B) or 1003(a)(3), amounts in the risk management 
        account shall be considered to be withdrawn under subsection 
        (b).

SEC. 1005. ADMINISTRATION.

    (a) Implementation.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary shall carry out this title through the Farm Services 
        Agency.
            (2) Exception.--In providing stewardship payments under 
        section 1002(c)(2)(D), the Secretary shall act through the 
        Natural Resources Conservation Service.
    (b) Compliance.--In addition to evaluations under section 
1002(d)(5), the Secretary shall conduct random audits of operators and 
producers subject to risk management account contracts under this title 
as the Secretary determines to be necessary to ensure compliance with 
the risk management account contracts.
    (c) Violations.--If the Secretary determines that an operator or 
producer is in violation of the terms of an applicable risk management 
account contract--
            (1) the operator or producer shall refund to the Secretary 
        an amount equal to the amount transferred by the Secretary 
        under section 1002(c)(2) to the affected risk management 
        account during the applicable year in which the violation 
        occurred;
            (2) for a serious or deliberate violation, as determined by 
        the Secretary--
                    (A) the risk management account contract shall be 
                terminated; and
                    (B) amounts remaining in each applicable risk 
                management account as the result of a transfer by the 
                Secretary under section 1002(c)(2) shall be refunded to 
                the Secretary; and
            (3) for failure to comply with the terms of an applicable 
        conservation plan during an applicable year in which the 
        operator or producer certified compliance with the plan, the 
        operator or producer shall refund to the Secretary an amount 
        equal to the amount of the stewardship payment under section 
        1002(c)(2)(D) for each applicable year in which a violation 
        occurred.
    (d) Regulations.--The Secretary shall promulgate such regulations 
as the Secretary determines to be necessary to carry out this title.
    (e) Adjusted Gross Income Limitation.--The adjusted gross income 
limitation under section 1001D of the Food Security Act of 1985 (7 
U.S.C. 1308-3a) shall apply to participation in the farm income 
stabilization assistance program under this title.
    (f) Commodity Credit Corporation.--The Secretary shall use the 
funds, facilities, and authorities of the Commodity Credit Corporation 
to carry out this title.

SEC. 1006. COMMODITY PROGRAMS.

    (a) Repeals.--Subtitles A through E of title I of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.) (other than 
sections 1001, 1103, 1104, 1106, 1502) are repealed.
    (b) Planting Flexibility.--Section 1106 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7916) is amended to read as 
follows:

``SEC. 1106. PLANTING FLEXIBILITY.

    ``Any commodity or crop may be planted on base acres on a farm.''.
    (c) Recourse Loan Program.--Subtitle F of title I of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7991 et seq.) is 
amended by adding at the end the following:

``SEC. 1619. RECOURSE LOAN PROGRAM.

    ``For each of the 2008 through 2014 crop years, the Secretary shall 
establish a recourse loan program for each loan commodity at a rate of 
interest to be determined by the Secretary.''.
    (d) Administration.--
            (1) Suspension of permanent price support authority.--
        Section 1602 of the Farm Security and Rural Investment Act of 
        2002 (7 U.S.C. 7992) is amended by striking ``2007'' each place 
        it appears and inserting ``2014''.
            (2) Adjusted gross income limitation.--Section 1001D(e) of 
        the Food Security Act of 1985 (7 U.S.C. 1308-3a(e)) is amended 
        by striking ``2007'' and inserting ``2014''.

                         TITLE II--CONSERVATION

                  Subtitle A--Wetlands Reserve Program

SEC. 2001. WETLANDS RESERVE PROGRAM.

    (a) In General.--Section 1237(c) of the Food Security Act of 1985 
(16 U.S.C. 3837(c)) is amended by striking ``2007'' and inserting 
``2014''.
    (b) Maximum Enrollment.--Section 1237(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3837(b)(1)) is amended--
            (1) by striking ``2,275,000 acres'' and inserting 
        ``3,500,000 acres''; and
            (2) by striking ``shall enroll'' and all that follows 
        through the end of the paragraph and inserting the following: 
        ``shall enroll 250,000 acres in each of calendar years 2008 
        through 2014''.

              Subtitle B--Environmental Quality Incentives

SEC. 2101. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) In General.--Section 1240B(a)(1) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2010'' and 
inserting ``2014''.
    (b) Allocation of Funding.--Section 1240B(g) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended by striking ``2007'' and 
inserting ``2014''.
    (c) Conservation Innovation Grants Program.--Section 1240H of the 
Food Security Act of 1985 (16 U.S.C. 3839aa-8) is amended by adding at 
the end the following:
    ``(d) Funding.--Of the funds of the Commodity Credit Corporation, 
in addition to amounts made available under section 1241(a)(6) to carry 
out this chapter, the Secretary shall use to carry out this section, to 
remain available until expended--
            ``(1) $25,000,000 for fiscal year 2008;
            ``(2) $45,000,000 for fiscal year 2009; and
            ``(3) $65,000,000 for each of fiscal years 2010 through 
        2014.''.
    (d) Ground and Surface Water Conservation.--Section 1240I(c)(1)(C)) 
of the Food Security Act of 1985 (16 U.S.C. 3839aa-9(c)(1)(C)) is 
amended by striking ``2007'' and inserting ``2014''.

                     Subtitle C--Grassland Reserve

SEC. 2201. GRASSLAND RESERVE PROGRAM.

    Section 1238N(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3838n(b)(1)) is amended by striking ``2,000,000 acres'' and inserting 
``2,500,000 acres''.

                 Subtitle D--Funding and Administration

SEC. 2301. FUNDING AND ADMINISTRATION.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``2007'' and inserting ``2014'';
            (2) in paragraph (2), by striking ``The'' and inserting 
        ``For each of fiscal years 2002 through 2014, the'';
            (3) in paragraph (3)(B), by striking ``2015'' and inserting 
        ``2014'';
            (4) in paragraph (4)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(F) $120,000,000 in each of fiscal years 2008 
                through 2014.'';
            (5) by striking paragraph (5) and inserting the following:
            ``(5) For each of fiscal years 2002 through 2014, the 
        grassland reserve program under subchapter C of chapter 2 of 
        subtitle D.'';
            (6) in paragraph (6)--
                    (A) in subparagraph (E), by striking ``each of'' 
                and all that follows through the end and inserting 
                ``fiscal year 2007;'' and
                    (B) by striking subparagraph (F) and inserting the 
                following:
                    ``(F) $1,500,000,000 in fiscal year 2008;
                    ``(G) $1,600,000,000 in each of fiscal years 2009 
                and 2010;
                    ``(H) $1,800,000,000 in each of fiscal years 2011 
                and 2012; and
                    ``(I) $2,100,000,000 in each of fiscal years 2013 
                through 2014.''; and
            (7) in paragraph (7)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(E) $125,000,000 in fiscal year 2008;
                    ``(F) $135,000,000 in each of fiscal years 2009 and 
                2010; and
                    ``(G) $145,000,000 in each of fiscal years 2011 
                through 2014.''.

  TITLE III--MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
                           NUTRITION PROGRAM

SEC. 3001. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
              NUTRITION PROGRAM.

    (a) Administration.--Section 3107 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
            (1) in subsections (b), (c)(2)(B), (f)(1), (h), and (i), by 
        striking ``President'' each place it appears and inserting 
        ``Secretary'';
            (2) in subsection (d), in the matter preceding paragraph 
        (1), by striking ``The President shall designate 1 or more 
        Federal agencies to'' and inserting ``The Secretary shall''; 
        and
            (3) in subsection (f)(2), in the matter preceding 
        subparagraph (A), by striking ``implementing agency'' and 
        inserting ``Secretary''.
    (b) Funding.--Section 3107(l) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 1736o-1(l)) is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Use of commodity credit corporation funds.--Of the 
        funds of the Commodity Credit Corporation, the Secretary shall 
        use to carry out this section not less than, to remain 
        available until expended--
                    ``(A) $140,000,000 for fiscal year 2008;
                    ``(B) $180,000,000 for fiscal year 2009;
                    ``(C) $220,000,000 for fiscal year 2010;
                    ``(D) $260,000,000 for fiscal year 2011; and
                    ``(E) $300,000,000 for each of fiscal years 2012 
                through 2014.''.
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (2) (as redesignated by paragraph (2)), by 
        striking ``any Federal agency implementing or assisting'' and 
        inserting ``the Department of Agriculture or any other Federal 
        agency assisting''.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

SEC. 4001. EXCLUSION OF COMBAT-RELATED MILITARY PAY FROM COUNTABLE 
              INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 2014(d)) is 
amended--
            (1) by striking ``and 18'' and inserting ``(18)''; and
            (2) by inserting before the period at the end the 
        following: ``, and (19) any amount paid a member of the 
        uniformed services as hazardous duty pay under section 301 of 
        title 37, United States Code, hardship duty pay under section 
        305 of that title, or hostile fire or imminent danger special 
        pay under section 310 of that title for service of the member 
        in a combat operation or combat zone''.

SEC. 4002. STRENGTHENING THE FOOD PURCHASING POWER OF LOW-INCOME 
              AMERICANS.

    Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) 
is amended--
            (1) in subparagraph (A)(ii), by striking ``not less than 
        $134'' and all that follows through the period at the end and 
        inserting the following: ``not less than--
                                    ``(I) $149, $253, $209, and $132, 
                                respectively; and
                                    ``(II) for fiscal year 2009 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount from the 
                                previous fiscal year adjusted to the 
                                nearest lower dollar increment to 
                                reflect changes for the 12-month period 
                                ending on the preceding June 30 in the 
                                Consumer Price Index for All Urban 
                                Consumers published by the Bureau of 
                                Labor Statistics of the Department of 
                                Labor, for items other than food.''; 
                                and
            (2) in subparagraph (B)(ii), by striking ``not less than 
        $269'' and all that follows through the period at the end and 
        inserting the following: ``not less than--
                                    ``(I) $296; and
                                    ``(II) for fiscal year 2009 and 
                                each fiscal year thereafter, an amount 
                                that is equal to the amount from the 
                                previous fiscal year adjusted to the 
                                nearest lower dollar increment to 
                                reflect changes for the 12-month period 
                                ending on the preceding June 30 in the 
                                Consumer Price Index for All Urban 
                                Consumers published by the Bureau of 
                                Labor Statistics of the Department of 
                                Labor, for items other than food.''.

SEC. 4003. SUPPORTING WORKING FAMILIES WITH CHILD CARE EXPENSES.

    Section 5(e)(3)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)(3)(A)) is amended by striking ``, the maximum allowable level 
of which shall be $200 per month for each dependent child under 2 years 
of age and $175 per month for each other dependent,''.

SEC. 4004. EXCLUSION OF RETIREMENT ACCOUNTS FROM COUNTABLE FINANCIAL 
              RESOURCES.

    (a) In General.--Section 5(g)(2)(B)(v) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(g)(2)(B)(v)) is amended by striking ``or retirement 
account (including an individual account)'' and inserting ``account''.
    (b) Mandatory and Discretionary Exclusions.--Section 5(g) of the 
Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is amended by adding at the 
end the following:
            ``(7) Exclusion of retirement accounts from countable 
        financial resources.--
                    ``(A) Mandatory exclusions.--The Secretary shall 
                exclude from financial resources under this subsection 
                the value of any funds in a plan, contract, or account, 
                described in any of sections 401(a), 403(a), 403(b), 
                408, 408A, 457(b), and 501(c)(18) of the Internal 
                Revenue Code of 1986, and the value of funds in a 
                Federal Thrift Savings Plan account, as provided in 
                section 8439 of title 5, United States Code.
                    ``(B) Discretionary exclusions.--The Secretary may 
                exclude from financial resources under this subsection 
                the value of any other retirement plans, contracts, or 
                accounts (as determined by the Secretary, by 
                regulation).''.

SEC. 4005. SUPPORTING STATE EFFORTS DURING NATURAL DISASTERS.

    Section 5(h) of the Food Stamp Act of 1977 (7 U.S.C. 2014(h)) is 
amended by adding at the end the following:
            ``(4) Administrative cost share payments.--In case of a 
        disaster determined under paragraph (1), in lieu of the 
        administrative cost share payments otherwise required by 
        section 16(a), the Secretary shall pay each State agency an 
        amount equal to 90 percent of the administrative costs 
        allowable under that section for costs related to planning and 
        operating disaster food stamp programs under this 
        subsection.''.

SEC. 4006. SIMPLIFIED REPORTING.

    Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(1)(A)) 
is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``reporting by'' and inserting 
                ``reporting'';
                    (B) in clause (i), by inserting ``for periods 
                shorter than 4 months by'' before ``migrant'';
                    (C) in clause ii), by inserting ``for periods 
                shorter than 4 months by'' before ``households''; and
                    (D) in clause (iii), by inserting ``by'' before 
                ``households''; and
            (2) in paragraph (3)--
                    (A) in the third sentence--
                            (i) by striking ``Reports required to be 
                        filed monthly under paragraph (1)'' and 
                        inserting ``Except as provided in paragraph 
                        (1)(D)(ii), periodic reports filed under 
                        paragraph (1)''; and
                            (ii) by striking ``subject matter included 
                        in such reports'' and inserting ``the 
                        households required to make the reports''; and
                    (B) by inserting after the third sentence the 
                following: ``The State agency shall not be required to 
                act on information about a household described in the 
                preceding sentence received from any source between the 
                monthly reports unless the information clearly 
                indicates that the household is not eligible, subject 
                to standards established by the Secretary, or the 
                household requests an increase in benefits.''.

SEC. 4007. MINIMUM BENEFIT.

    Section 8(a) of the Food Stamp Act of 1977 (7 U.S.C. 2017(a)) is 
amended in the proviso by striking ``shall be $10 per month'' and 
inserting ``shall be--
            ``(1) for each of fiscal years 2008 through 2010, 10 
        percent of the cost of the thrifty food plan for a household 
        containing 1 member, as determined by the Secretary under 
        section 3(o); and
            ``(2) for fiscal years 2011 and each fiscal year 
        thereafter, 15 percent of the cost of the thrifty food plan for 
        a household containing 1 member, as determined by the Secretary 
        under section 3(o)''.

SEC. 4008. REAUTHORIZATION OF FOOD STAMP PROGRAM, FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS, AND THE COMMODITY 
              SUPPLEMENTAL FOOD PROGRAM.

    (a) Funding of Employment and Training Programs.--Section 16(h)(1) 
of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A)(vii), by striking ``2007'' and 
        inserting ``2014''; and
            (2) in subparagraph (E)(i), by striking ``2007'' and 
        inserting ``2014''.
    (b) Reductions in Payments for Administrative Costs.--Section 
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``2007'' and inserting ``2014''; and
            (2) in subparagraph (B)(ii) by striking ``2007'' and 
        inserting ``2014''.
    (c) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) of the 
Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B(vi)) is amended by 
striking ``2007'' and inserting ``2014''.
    (d) Authorization of Appropriations.--Section 18(a)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in the first 
sentence by striking ``2007'' and inserting ``2014''.
    (e) Consolidated Block Grants for Puerto Rico and American Samoa.--
Section 19(a)(2)(A)(ii) of the Food Stamp Act of 1977 (7 U.S.C. 
2028(a)(2)(A)(ii)) is amended by striking ``2007'' and inserting 
``2014''.
    (f) Commodity Distribution Program.--Section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; 
Public Law 93-86) is amended in the first sentence by striking ``2007'' 
and inserting ``2014''.

SEC. 4009. OUTREACH GRANTS.

    Section 11(t) of the Food Stamp Act of 1977 (7 U.S.C. 2020(t)) is 
amended--
            (1) in paragraph (1), by striking ``For each of'' and all 
        that follows through inserting ``of funds'' and inserting ``For 
        each of fiscal years 2008 through 2014, the Secretary shall use 
        not more than amount specified in paragraph (2) of funds'';
            (2) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively; and
            (3) by inserting after paragraph (1) the following:
            ``(2) Amounts.--For purposes of paragraph (1), the amount 
        specified in this paragraph is--
                    ``(A) for fiscal year 2008, $15,000,000; and
                    ``(B) for fiscal year 2009 and each fiscal year 
                thereafter, an amount that is equal to the amount that 
                applies under this paragraph for the previous fiscal 
                year, adjusted to the nearest lower dollar increment to 
                reflect changes for the 12-month period ending on the 
                preceding June 30 in the Consumer Price Index for All 
                Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.''.

SEC. 4010. FUNDS TO STATES FOR IMPROVING AND INNOVATING PROGRAM ACCESS 
              AND INTEGRITY.

    Section 16 of the Food Stamp Act of 2007 (7 U.S.C. 2025) is amended 
by adding at the end the following:
    ``(l) Funds to States for Improving and Innovating Program Access 
and Integrity.--
            ``(1) In general.--Subject to paragraph (3), the Secretary 
        may increase the administrative cost share percentage specified 
        in subsection (a) for eligible administrative expenditures.
            ``(2) Eligible administrative expenditures.--Administrative 
        expenditures that are eligible for an increased cost share 
        percentage under this subsection are expenditures that--
                    ``(A) are described in subsection (a); and
                    ``(B) as demonstrated by a State agency to the 
                satisfaction of the Secretary, are attributable to a 
                program innovation that improves--
                            ``(i) access to the food stamp program;
                            ``(ii) the efficiency and effectiveness of 
                        program operations; and
                            ``(iii) program integrity.
            ``(3) Limitations.--
                    ``(A) In general.--In carrying out this subsection, 
                the Secretary shall provide an increased administrative 
                cost share percentage for those eligible administrative 
                expenditures that, as determined by the Secretary--
                            ``(i) have the greatest likelihood of 
                        meeting the goals described in paragraph 
                        (2)(B); and
                            ``(ii) will result in new activities or 
                        operations.
                    ``(B) Funding.--The Secretary may use to carry out 
                this subsection not more than $10,000,000 for each of 
                fiscal years 2008 through 2014.''.

SEC. 4011. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``From amounts 
                made available to carry out this Act, the Secretary 
                may'' and inserting ``The Secretary shall''; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funding amounts.--From amounts made available to 
        carry out this Act, the Secretary shall use to make grants 
        under this section $5,000,000 for each of fiscal years 2008 
        through 2014.'';
            (2) in subsection (h)(4), by striking ``2007'' and 
        inserting ``2014''; and
            (3) by adding at the end the following:
    ``(i) Grants to Expand the Number of Farmers' Markets That Accept 
Food Stamp Benefits.--
            ``(1) In general.--For fiscal year 2008, the Secretary 
        shall use not more than $5,000,000 of funds made available 
        under section 18(a)(1) to make grants to pay 100 percent of the 
        costs of eligible entities approved by the Secretary to carry 
        out projects to expand the number of farmer' markets that 
        accept food stamp benefits by--
                    ``(A) providing equipment and training necessary 
                for the farmers' markets to accept food stamp benefits;
                    ``(B) educating and providing technical assistance 
                to agricultural producers and farmers' market operators 
                about the process and benefits of accepting food stamp 
                benefits; or
                    ``(C) other activities determined to be appropriate 
                by the Secretary.
            ``(2) Limitation.--A grant made under this subsection may 
        not be used to pay the ongoing cost of carrying out any 
        project.
            ``(3) Eligible entities.--To be eligible to receive a grant 
        under this subsection, an entity shall be--
                    ``(A) a State agency administering the food stamp 
                program;
                    ``(B) a State or local government; or
                    ``(C) a private nonprofit entity that--
                            ``(i) coordinates farmers' markets in a 
                        State; and
                            ``(ii) operates in cooperation with State 
                        or local government.
            ``(4) Selection of eligible entities.--The Secretary--
                    ``(A) shall develop criteria for the selection of 
                eligible entities to receive grants under this 
                subsection; and
                    ``(B) may give preference to any eligible entity 
                that consists of a partnership between a government 
                entity and a nongovernmental entity.''.

SEC. 4012. COMMODITIES FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM.

    Section 27(a) of the Food Stamp Act of 1977 (7 U.S.C. 2036(a)) is 
amended--
            (1) by striking ``(a) Purchase of Commodities.--'' and all 
        that follows through ``through 2007'' and inserting the 
        following:
    ``(a) Purchase of Commodities.--
            ``(1) In general.--As provided in paragraph (2), for each 
        of fiscal years 2008 through 2014'';
            (2) by striking ``$140,000,000 of''; and
            (3) by adding at the end the following:
            ``(2) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this 
        subsection, to remain available until expended--
                    ``(A) for fiscal year 2008, $220,000,000;
                    ``(B) for fiscal year 2009, $230,000,000;
                    ``(C) for fiscal year 2010, $240,000,000;
                    ``(D) for fiscal year 2011, $245,000,000; and
                    ``(E) for fiscal year 2012 and each fiscal year 
                thereafter, the dollar amount of commodities available 
                under this paragraph for the immediately preceding 
                fiscal year, adjusted by the percentage by which the 
                thrifty food plan has been adjusted under section 
                3(o)(4) between June 30, 2007 and June 30 of the 
                immediately preceding fiscal year.''.

SEC. 4013. COMMUNITY FOOD ASSISTANCE AND FOOD BANK INFRASTRUCTURE 
              COMPETITIVE GRANTS.

    The Food Stamp Act of 1977 is amended by adding after section 27 (7 
U.S.C. 2036) the following:

``SEC. 28. COMMUNITY FOOD ASSISTANCE AND FOOD BANK INFRASTRUCTURE 
              COMPETITIVE GRANTS.

    ``(a) Definition of Eligible Entity.--In this section, the term 
`eligible entity' means an emergency feeding organization (as defined 
in section 201A of the Emergency Food Assistance Act of 1983 (7 U.S.C. 
7501)).
    ``(b) Application.--
            ``(1) In general.--To receive a grant under this section, 
        an eligible entity shall submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) identify the activity described in subsection 
                (c) that the grant will be used to fund; and
                    ``(B) describe the means by which an activity 
                identified under subparagraph (A) will reduce hunger in 
                the community or support the efforts of food banks or 
                other nonprofit emergency feeding organizations to 
                reduce hunger or food insecurity in the communities 
                served by the emergency feeding organizations.
            ``(3) Priority.--In making grants under this section, the 
        Secretary shall give priority to eligible entities the 
        applications of which demonstrate at least 2 of the following 
        criteria, as determined by the Secretary:
                    ``(A) The eligible entity serves a predominantly 
                rural and geographically underserved area.
                    ``(B) The eligible entity serves a community in 
                which the rates of food insecurity, very low food 
                insecurity, hunger, poverty, or unemployment are 
                demonstrably higher than national average rates.
                    ``(C) The eligible entity serves a community that 
                provides demonstrable public support for the efforts of 
                the eligible entity through the direct provision of 
                private sector food assistance to low-income 
                individuals.
                    ``(D) The grant will assist in the support of rural 
                communities, small or mid-size agricultural operations, 
                and the consumption of locally-produced agricultural 
                products by low-income people in need of temporary food 
                assistance.
    ``(c) Use of Funds.--An eligible entity shall use a grant received 
under this section to carry out activities of the eligible entity, 
including--
            ``(1) constructing, expanding, or repairing a facility or 
        equipment to support hunger relief agencies in the community;
            ``(2) assisting an emergency feeding organization in the 
        community in obtaining locally-grown or raised produce, dairy, 
        or protein products; and
            ``(3) assisting an emergency feeding organization in the 
        community for the procurement, storage, handling, and 
        distribution of locally-produced agricultural commodities and 
        products.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $5,000,000 for each of fiscal 
years 2008 through 2014.''.

            Subtitle B--Child Nutrition and Related Programs

SEC. 4101. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.

    (a) Payments to Service Institutions.--Section 13(b) of the Richard 
B. Russell National School Lunch Act (42 U.S.C. 1761(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking subparagraph (A);
                    (B) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (A) through (C), respectively;
                    (C) in subparagraph (A) (as redesignated by 
                subparagraph (B)), by striking ``(B)'' and all that 
                follows through ``shall not exceed'' and inserting the 
                following:
                    ``(A) In general.--Subject to subparagraph (B) and 
                in addition to amounts made available under paragraph 
                (3), payments to service institutions shall be'';
                    (D) in subparagraph (B) (as redesignated by 
                subparagraph (B)), by striking ``subparagraph (B)'' and 
                inserting ``subparagraph (A)''; and
                    (E) in subparagraph (C) (as redesignated by 
                subparagraph (B)), by striking ``(A), (B), and (C)'' 
                and inserting ``(A) and (B)''; and
            (2) in the second sentence of paragraph (3), by striking 
        ``full amount of State approved'' and all that follows through 
        ``maximum allowable''.
    (b) Conforming Amendment.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) through (k) as 
        subsections (f) through (j), respectively.
    (c) Effective Date.--The amendments made by this section take 
effect on January 1 of the first full calendar year following the date 
of enactment of this Act.

SEC. 4102. FRUIT AND VEGETABLE PROGRAM.

    Section 18(g) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1769(g)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``July 2004'' and inserting ``July 2007''; and
                    (B) in subparagraph (B), by striking ``and'' at the 
                end;
                    (C) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
                    ``(D) additional elementary or secondary schools in 
                each State in proportion to the student population of 
                the State.'';
            (2) in paragraph (3)(A), by striking ``paragraph (1)(B)'' 
        and inserting ``paragraph (1)'';
            (3) in paragraph (5), in each of subparagraphs (A) and (B), 
        by striking ``2008'' each place it appears and inserting 
        ``2014''; and
            (4) in paragraph (6)(B), by striking clause (i) and 
        inserting the following:
                            ``(i) In general.--Out of any funds in the 
                        Treasury not otherwise appropriated, the 
                        Secretary of the Treasury shall transfer to the 
                        Secretary to carry out this section--
                                    ``(I) on October 1, 2007, 
                                $10,000,000;
                                    ``(II) on October 1, 2008, 
                                $12,000,000; and
                                    ``(III) on October 1, 2009, and 
                                each October 1 thereafter through 
                                October 1, 2014, $15,000,000.''.

SEC. 4103. FARM TO SCHOOL PROGRAM.

    Section 18(i)(2) of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1769(i)(2)) is amended by striking ``such sums as are 
necessary'' and all that follows through the period at the end and 
inserting ``to carry out this subsection--
                    ``(A) $5,000,000 for each of fiscal years 2008 and 
                2009;
                    ``(B) $8,000,000 for fiscal year 2010; and
                    ``(C) $10,000,000 for each of fiscal year 2011 
                through 2014.''.

                       Subtitle C--Miscellaneous

SEC. 4203. FOOD FOR THE HUNGRY TRANSPORTATION GRANT PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to authorize the creation of the National Food for the 
        Hungry Transportation, Self-Help, and Job Training Fund to 
        facilitate the procurement and transportation of highly-
        perishable, healthy food to low-income individuals in the 
        United States;
            (2) to establish a competitive mechanism in the Department 
        of Agriculture by which appropriations made available from the 
        Fund would be allocated;
            (3) to ensure the direct involvement of the private carrier 
        trucking fleet of the United States in carrying out this 
        section;
            (4) to increase the quantity of nutritious food available 
        to low-income individuals in the United States by supporting 
        the procurement and distribution of highly-perishable food, 
        such as fresh produce and protein products, to the low-income 
        individuals;
            (5) to offer job training and employment opportunities in 
        the food transportation and distribution systems;
            (6) to better identify potential providers of donated foods 
        and enhance the nonprofit food donation system; and
            (7) to provide adequate funding to carry out this section.
    (b) Definitions.--In this section:
            (1) Fund.--The term ``Fund'' means the National Food for 
        the Hungry Transportation, Self-Help, and Job Training Fund 
        established under subsection (c).
            (2) Nongovernmental organization.--The term 
        ``nongovernmental organization'' means a national nonprofit 
        charitable organization that--
                    (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986;
                    (B) is capable of, and has at least 10 years 
                experience in, procuring donated food and other 
                services from major domestic food manufacturers and 
                processors, grocery wholesalers and retailers, food 
                warehouse operations, agricultural producer 
                organizations, fishing interests commercial transport 
                providers (such as trucking companies), and Federal and 
                State food assistance agencies;
                    (C) is capable of, and has shown proficiency in, 
                the national distribution of highly-perishable food 
                through contracts with member emergency feeding 
                organizations (as defined in section 201A of the 
                Emergency Food Assistance Act of 1983 (7 U.S.C. 7501));
                    (D) has at least 10 years experience in procuring 
                commercial freight for the distribution of time-
                sensitive food products through a network of emergency 
                food assistance organizations;
                    (E) has at least 10 years experience in working 
                with transport providers in creating, coordinating, and 
                maintaining transfer systems designed to assist, at the 
                national level, the delivery of time-sensitive food 
                products, for distribution to emergency food assistance 
                organizations in all 50 States and the District of 
                Columbia;
                    (F) does not operate any commercial, private, or 
                public subsidiary trucking or freight operations for 
                the purposes of transporting food; and
                    (G) agrees--
                            (i) to contribute in-kind resources to 
                        assist in carrying out this section;
                            (ii) to provide to eligible emergency food 
                        assistance organizations services and 
                        information free of charge; and
                            (iii) to regularly certify and inspect any 
                        member emergency feeding organization with 
                        which the nongovernmental organization entered 
                        into a contract to carry out an activity 
                        described in subparagraph (B).
            (3) Primary nongovernmental organization.--The term 
        ``primary nongovernmental organization'' means a 
        nongovernmental organization selected by the Secretary on a 
        competitive basis from among nongovernmental organizations.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (5) Time-sensitive food product.--
                    (A) In general.--The term ``time-sensitive food 
                product'' means a fresh, raw, or processed food with a 
                short time limitation for safe and acceptable 
                consumption, as determined by the Secretary.
                    (B) Inclusions.--The term ``time-sensitive food 
                product'' includes fruits, vegetables, dairy products, 
                meat, fish, and poultry.
    (c) National Food for the Hungry Transportation Fund.--The 
Secretary shall offer to enter into a contract or grant agreement with 
a primary nongovernmental organization to establish a fund, to be known 
as the ``National Food for the Hungry Transportation Fund'', to track, 
collect, and deliver time-sensitive food products.
    (d) Program Requirements.--The Secretary shall ensure that funds 
made available to carry out this section are used for--
            (1) the development and maintenance of a computerized 
        system for the tracking of time-sensitive food products;
            (2) capital and operating costs associated with the 
        collection and transportation of time-sensitive food products;
            (3) capital and operating costs associated with the storage 
        and distribution of time-sensitive food products;
            (4) job training opportunities in trucking, food handling, 
        food recovery, and related industries;
            (5) improving the security and diversity of the food 
        distribution and recovery systems of the United States with the 
        use of--
                    (A) family-sized farms; and
                    (B) donations from entities of food products to 
                persons in need;
            (6) providing recovered healthy foods to nonprofit 
        emergency food providers to reduce hunger in the United States; 
        and
            (7) improving the identification of--
                    (A) potential providers of donated foods;
                    (B) potential nonprofit emergency food providers; 
                and
                    (C) persons in need of emergency food assistance 
                throughout the United States.
    (e) Additional Nongovernmental Organizations.--
            (1) In general.--A primary nongovernmental organization may 
        enter into 1 or more contracts with, and provide funds to, not 
        more than 2 other nongovernmental organizations that the 
        Secretary determines meet the requirements of paragraph (2) to 
        carry out the activities required under this section.
            (2) Requirements.--An additional nongovernmental 
        organization selected under paragraph (1) shall--
                    (A) have expertise in operating for several years a 
                national information clearinghouse relating to anti-
                hunger activities;
                    (B) have extensive experience in working with other 
                anti-hunger organizations throughout the United States;
                    (C) have significant experience in working with the 
                Department of Agriculture; and
                    (D) operate, at a national level, a hotline to 
                provide information about--
                            (i) access to food for low-income families;
                            (ii) programs in existence on the date of 
                        enactment of this Act that transport fresh 
                        produce to food pantries, homeless shelters, 
                        and soup kitchens that could serve as national 
                        models for replication in other areas; and
                            (iii) means through which low-income 
                        individuals and families may become self-
                        reliant.
    (f) Audits.--The Secretary shall establish fair and reasonable 
procedures to audit the expenditure of funds made available to carry 
out this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $5,000,000 for fiscal year 2008; and
            (2) for each subsequent fiscal year, the applicable amount 
        during the preceding fiscal year, as adjusted to reflect 
        changes for the 12-month period ending the preceding November 
        30 in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics of the Department 
        of Labor.

                           TITLE V--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 5001. FOREST LAND ENHANCEMENT PROGRAM.

    Section 4(j) of the Cooperative Forestry Assistance Act of 1978 (16 
U.S.C. 2103) is amended by striking subsection (j) and inserting the 
following:
    ``(j) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out the Program $100,000,000 during 
the period beginning on the date of enactment of the Farm Risk 
Management Act for the 21st Century and ending on September 30, 
2014.''.

                  Subtitle B--Amendments to Other Laws

SEC. 5101. HEALTHY FORESTS RESERVE PROGRAM.

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

``SEC. 508. FUNDING.

    ``For each of fiscal years 2008 through 2013, the Secretary shall 
use the funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this title, including the provision of 
technical assistance under this title.''.

                            TITLE VI--ENERGY

SEC. 6001. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    Section 9002(k)(2)(A) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(k)(2)(A)) is amended by striking ``2007'' and 
inserting ``2014''.

SEC. 6002. BIOREFINERY DEVELOPMENT GRANTS.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended--
            (1) in the section heading, by striking ``grants'';
            (2) by striking subsection (c) and inserting the following:
    ``(c) Assistance.--The Secretary shall award grants and make loans 
and loan guarantees to eligible entities to assist in covering the cost 
of development and construction of biorefineries, or the cost of 
construction or deployment of methane digesters used to capture the 
methane gas from livestock manure for use as a fuel source for biofuel 
production, to carry out projects to demonstrate the commercial 
viability of 1 or more processes for converting biomass to fuels or 
chemicals.'';
            (3) in subsection (e)--
                    (A) by striking ``grants'' each place it appears 
                and inserting ``assistance''; and
                    (B) in paragraph (2)(A)--
                            (i) in clause (i), by striking ``and'' at 
                        the end;
                            (ii) by redesignating clause (ii) as clause 
                        (iii); and
                            (iii) by inserting after clause (i) the 
                        following:
                            ``(ii) shall select projects based on the 
                        extent to which the projects meet environmental 
                        goals for feedstocks and biorefineries, 
                        including goals relating to reductions in 
                        greenhouse gas emissions and improvement in 
                        water quality and wildlife habitat, developed 
                        by the Secretary, in consultation with the 
                        Secretary of the Interior, the Secretary of 
                        Energy, and the National Academy of Sciences; 
                        and''; and
            (4) by striking subsection (h) and inserting the following:
    ``(h) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section, to remain available 
until expended--
            ``(1) $50,000,000 for each of fiscal years 2008 and 2009; 
        and
            ``(2) $75,000,000 for each of fiscal years 2010 through 
        2014.''.

SEC. 6003. RURAL ENERGY INNOVATION PROGRAM.

    Section 9005 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8105) is amended--
            (1) by striking the section heading and inserting ``rural 
        energy innovation
        program.--'';
            (2) in subsection (a), by striking ``a program'' and 
        inserting ``an energy technical assistance program'';
            (3) in subsection (b), by striking paragraphs (5) and (6) 
        and inserting the following:
            ``(5) a nonprofit organization (including an agricultural 
        trade association, resource conservation and development 
        district, and energy service provider);
            ``(6) a State environmental quality department; and
            ``(7) any other entity, as determined by the Secretary.'';
            (4) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Selection criteria.--In reviewing applications of 
        eligible entities to receive grants under subsection (a), the 
        Secretary shall consider--
                    ``(A) the ability and expertise of the eligible 
                entity in providing professional energy efficiency 
                audits, renewable energy assessments, environmental 
                management system plans, and assessments of fertilizer, 
                pesticide, or diesel use efficiency;
                    ``(B) the geographic scope of the program proposed 
                by the eligible entity;
                    ``(C) the percentage of farmers, ranchers, and 
                rural small businesses to be assisted by the program in 
                the service territory covered by the eligible entity;
                    ``(D) the potential for energy savings and 
                environmental and public health benefits resulting from 
                the program;
                    ``(E) the plan of the eligible entity for providing 
                information to farmers, ranchers, and rural small 
                businesses on the benefits of energy efficiency and 
                renewable energy development;
                    ``(F) demonstration of multi-stakeholder 
                collaborations;
                    ``(G) demonstration of matching funds; and
                    ``(H) clear performance metrics.'';
            (5) by striking subsection (d) and inserting the following:
    ``(d) Use of Grant Funds.--
            ``(1) Required uses.--A recipient of a grant under 
        subsection (a) shall use the grant funds--
                    ``(A) to conduct and promote--
                            ``(i) energy audits;
                            ``(ii) assessments of fertilizer, 
                        pesticide, or diesel use efficiency;
                            ``(iii) renewable energy assessments; or
                            ``(iv) environmental management system 
                        planning;
            ``(2) to make farmers, ranchers, and rural small businesses 
        aware of and able to apply for and ensure access to--
                    ``(A) financial assistance under section 9006; and
                    ``(B) other Federal, State, and local financial 
                assistance programs for which farmers, ranchers, and 
                rural small businesses may be eligible; or
            ``(3) to employ staff that--
                    ``(A) serve as central points of contact for 
                farmers, ranchers and rural businesses seeking to 
                evaluate energy practices and technologies; and
                    ``(B) are properly trained to collect data for 
                audits and renewable energy assessments.
            ``(4) Permitted uses.--A recipient of a grant may use funds 
        to finance--
                    ``(A) in partnership with the private sector, 
                agricultural demonstrations to demonstrate cost-
                effective high efficiency equipment and energy 
                management practices such as precision agriculture, 
                proper tire tractor inflation, and conservation 
                tillage; and
                    ``(B) educational workshops on different clean 
                energy technologies and techniques.'';
            (6) in subsection (e)--
                    (A) by striking ``an energy audit'' and inserting 
                ``energy technical assistance'';
                    (B) by striking ``the energy audit'' and inserting 
                ``the energy technical assistance''; and
                    (C) by striking ``the audit'' and inserting ``the 
                technical assistance'';
            (7) in subsection (h), by striking ``this Act'' and 
        inserting ``Farm Risk Management Act for the 21st Century''; 
        and
            (8) by striking subsection (i) and inserting the following:
    ``(i) Limitation.--A recipient of a grant under subsection (a) may 
receive no more than $250,000 in any 1 grant cycle.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $5,000,000 for fiscal year 2008;
                    ``(B) $10,000,000 for fiscal year 2009;
                    ``(C) $15,000,000 for fiscal year 2010;
                    ``(D) $20,000,000 for fiscal year 2011; and
                    ``(E) $25,000,000 for each of fiscal years 2012 
                through 2014.
            ``(2) Use of certain funds.--The Secretary may use not more 
        than 10 percent of amounts made available under paragraph (1) 
        to--
                    ``(A) increase or modify energy technical 
                assistance programs funded under this section; or
                    ``(B) develop training programs that enable 
                administrators of existing technical assistance 
                programs to help other eligible entities establish 
                technical assistance programs.''.

SEC. 6004. RURAL ENERGY FOR AMERICA PROGRAM.

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

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

            (2) in subsection (a)--
                    (A) by inserting ``, and issue rebates,'' after 
                ``grants''; and
                    (B) by inserting ``rural school districts,'' after 
                ``ranchers,'';
            (3) by striking subsection (f);
            (4) by redesignating subsection (e) as subsection (h);
            (5) by inserting after subsection (d) the following:
    ``(e) Production-Based Incentive in Lieu of Grant.--
            ``(1) In general.--In addition to the authority under 
        subsection (a), to encourage the production of electricity from 
        renewable energy systems, the Secretary shall, on the request 
        of an eligible applicant under this section, make production-
        based payments to the applicant in lieu of a grant.
            ``(2) Contingency.--Payments under paragraph (1) shall be 
        contingent on documented energy production and sales from the 
        renewable energy system to a third party.
            ``(3) Limitation.--The total net present value of a 
        production-based incentive may not exceed the lower of--
                    ``(A) 25 percent of the eligible project costs; and
                    ``(B) any other limits that the Secretary 
                establishes by rule or guidance.
    ``(f) Feasibility Studies.--
            ``(1) In general.--The Secretary may provide assistance to 
        eligible applicants to conduct feasibility studies of projects 
        for which assistance may be provided under this section.
            ``(2) Limitation.--The Secretary shall use not more than 10 
        percent of funds made available to carry out this section to 
        provide assistance described in paragraph (1).
            ``(3) Criteria.--The Secretary shall, by regulation, 
        establish criteria for the receipt of assistance under this 
        subsection.
            ``(4) Avoidance of duplicative assistance.--An applicant 
        that receives assistance to carry out a feasibility study for a 
        project under this subsection shall not be eligible for 
        assistance to carry out a feasibility study for the project 
        under any other provision of Federal law.
            ``(5) Matching funds.--To be eligible for assistance under 
        this subsection, a recipient of funds under this subsection 
        shall contribute an amount of non-Federal funds that is equal 
        to at least 75 percent of the amount of Federal funds received.
    ``(g) Rebate Program.--
            ``(1) In general.--The Secretary shall make competitive 
        grants to eligible entities to provide rebates for farmers, 
        ranchers, rural school districts, and rural small businesses to 
        purchase renewable energy systems and make energy efficiency 
        improvements.
            ``(2) Eligible entities.--To be eligible to receive a grant 
        under paragraph (1), an entity shall be--
                    ``(A) a State energy or agricultural office;
                    ``(B) a nonprofit State-based energy efficiency or 
                renewable energy organization that uses public funds 
                provided directly or under contract with a State 
                agency;
                    ``(C) any other nonprofit organization with a 
                demonstrated ability to administer a State-wide energy 
                efficiency or renewable energy rebate program; or
                    ``(D) a consortium of entities described in 
                subparagraphs (A) through (C).
            ``(3) Merit review.--
                    ``(A) In general.--The Secretary shall establish a 
                merit review process to review applications for grants 
                under paragraph (1) that uses the expertise of the 
                Department of Agriculture, other Federal and State 
                agencies, and non-governmental organizations.
                    ``(B) Requirements.--In reviewing the application 
                of an eligible entity to receive a grant under 
                paragraph (1), the Secretary shall consider--
                            ``(i) the experience and expertise of the 
                        entity in establishing and administering a 
                        State-wide clean energy rebate program;
                            ``(ii) the annual projected energy savings 
                        or production increases resulting from the 
                        proposed program;
                            ``(iii) the environmental benefits 
                        resulting from the proposed program; and
                            ``(iv) other appropriate factors, as 
                        determined by the Secretary.
            ``(4) Maintenance of effort.--An entity that receives a 
        grant under paragraph (1) shall provide assurances to the 
        Secretary that funds provided to the entity under this 
        subsection will be used to supplement, not to supplant, the 
        amount of Federal, State, and local funds otherwise expended 
        for rebate programs.
            ``(5) Rebate amount.--The amount of a rebate provided from 
        a grant under this subsection shall not exceed the lower of--
                    ``(A) $10,000; or
                    ``(B) 50 percent of the cost incurred to purchase a 
                renewable energy system or an energy efficiency 
                improvement, as determined by the Secretary.''; and
            (6) by adding at the end the following:
    ``(i) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section, to remain 
available until expended--
            ``(1) $60,000,000 for fiscal year 2008, of which not more 
        than $12,000,000 shall be used to carry out subsection (g);
            ``(2) $90,000,000 for fiscal year 2009, of which not more 
        than $18,000,000 shall be used to carry out subsection (g);
            ``(3) $130,000,000 for fiscal year 2010, of which not more 
        than $26,000,000 shall be used to carry out subsection (g);
            ``(4) $180,000,000 for fiscal year 2011, of which not more 
        than $36,000,000 shall be used to carry out subsection (g); and
            ``(5) $200,000,000 for each of fiscal years 2012 through 
        2014, of which not more than $50,000,000 shall be used to carry 
        out subsection (g).''.

SEC. 6005. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Distribution of Funding By and Within Each Technical Area.--
Section 307(g) of the Biomass Research and Development Act of 2000 (7 
U.S.C. 8606(g)) is amended in paragraphs (2) and (3) by striking 
``2010'' each place it appears and inserting ``2014''.
    (b) Funding.--Section 310 of the Biomass Research and Development 
Act of 2000 (7 U.S.C. 8609) is amended to read as follows:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section, to remain available 
until expended--
            ``(1) $100,000,000 for each of fiscal years 2008 through 
        2012; and
            ``(2) $200,000,000 for each of fiscal years 2013 through 
        2014.
    ``(b) Authorization of Appropriations.--In addition to amounts 
transferred under subsection (a), there is authorized to be 
appropriated to carry out this title $200,000,000 for each of fiscal 
years 2006 through 2015, to remain available until expended.''.

                        TITLE VII--MISCELLANEOUS

                       Subtitle A--Crop Insurance

SEC. 7001. ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM.

    Section 523(e) of the Federal Crop Insurance Act (7 U.S.C. 1523(e)) 
is amended--
            (1) in paragraph (1), by striking ``2004 reinsurance year'' 
        and inserting ``2010 reinsurance year''; and
            (2) in paragraph (2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--In addition to counties 
                otherwise included in the pilot program, the 
                Corporation shall include in the pilot program for the 
                2008 reinsurance year all States and counties that meet 
                the criteria for selection (pending required rating), 
                as determined by the Corporation.''.

SEC. 7002. REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary shall submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report that describes recommendations for 
legislative or regulatory changes that would save at least 
$1,000,000,000 per fiscal year in Federal expenditures in carrying out 
the Federal crop insurance program while--
            (1) not reducing overall risk management options to 
        agricultural producers;
            (2) expanding whole farm revenue-based insurance programs 
        to all agricultural operations in all States; and
            (3) maintaining actuarial soundness.

                      Subtitle B--Specialty Crops

SEC. 7101. FARMERS' MARKET PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005) is amended by striking subsections (d) and (e) and 
inserting the following:
    ``(d) Criteria and Guidelines.--
            ``(1) In general.--The Secretary shall establish criteria 
        and guidelines for the submission, evaluation, and funding of 
        proposed projects under the Program.
            ``(2) Priority.--The Secretary shall prioritize for funding 
        projects that would support, encourage, or promote the 
        transition to organic and other environmentally beneficial 
        forms of agricultural production.
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $25,000,000 for each 
of fiscal years 2008 through 2014, to remain available until 
expended.''.

SEC. 7102. FRUIT AND VEGETABLE NUTRITION PROMOTION PROGRAM.

    The Specialty Crops Competitiveness Act of 2004 (7 U.S.C. 1621 
note; Public Law 108-465) is amended by adding at the end of title II 
the following:

``SEC. 204. FRUIT AND VEGETABLE NUTRITION PROMOTION PROGRAM.

    ``(a) In General.--The Secretary of Agriculture (acting through the 
Administrator of the Agricultural Marketing Service) (referred to in 
this section as the `Secretary') shall establish and carry out a 
program to provide assistance to eligible trade organizations described 
in subsection (c) to increase the consumption of fruits and vegetables 
in the United States to meet Federal health guidelines.
    ``(b) Requirements for Participation.--To be eligible for 
assistance under this section, an organization shall--
            ``(1) be an eligible trade organization;
            ``(2) prepare and submit a plan to increase the consumption 
        of fruits and vegetables in the United States to the Secretary 
        that meets any guidelines governing such plans established by 
        the Secretary; and
            ``(3) meet any other requirements established by the 
        Secretary.
    ``(c) Eligible Trade Organizations.--An eligible trade organization 
under this section shall be--
            ``(1) a nonprofit fruit or vegetable trade organization in 
        the United States;
            ``(2) a nonprofit State or regional fruit or vegetable 
        organization;
            ``(3) a fruit or vegetable agricultural cooperative in the 
        United States;
            ``(4) a commodity board or commission in the United States; 
        or
            ``(5) a small business engaged in the fruit or vegetable 
        industry in the United States.
    ``(d) Matching Funds.--Assistance provided under this section shall 
not exceed--
            ``(1) in the case of an organization described in 
        paragraphs (1) through (4) of subsection (c), 90 percent of the 
        cost of carrying out a plan to increase the consumption of 
        fruits and vegetables in the United States submitted under 
        subsection (b)(2); and
            ``(2) in the case of an organization described in 
        subsection (c)(5), 50 percent of the cost of carrying out a 
        plan to increase the consumption of fruits and vegetables in 
        the United States submitted under subsection (b)(2).
    ``(e) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $10,000,000 for each 
of fiscal years 2008 through 2014, to remain available until 
expended.''.
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