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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1424 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1424

To provide for the continuation of agricultural programs through fiscal 
                   year 2013, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2007

 Mr. Schumer (for himself, Mr. Lieberman, Mr. Kerry, and Mr. Kennedy) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To provide for the continuation of agricultural programs through fiscal 
                   year 2013, 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, Nutrition, 
and Community Investment Act of 2007''.
    (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--DAIRY

Sec. 1001. Continuation of the milk income loss contract program.
Sec. 1002. Minimum price for Class I milk under Federal milk marketing 
                            orders.
Sec. 1003. Dairy export incentive and dairy indemnity programs.
Sec. 1004. Funding of dairy promotion and research program.
Sec. 1005. Federal milk marketing orders.
Sec. 1006. Dairy processing equipment loan guarantee fund.
Sec. 1007. Federal loan forgiveness program.
Sec. 1008. Mandatory reporting of dairy commodities.
                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

Sec. 2001. Sense of Congress regarding the conservation security 
                            program.
Sec. 2002. Dual eligibility for certified organic farms.
Sec. 2003. Comprehensive conservation enhancement program.
Sec. 2004. Conservation security program.
                    Subtitle B--Conservation Reserve

Sec. 2011. Conservation reserve program.
                  Subtitle C--Wetlands Reserve Program

Sec. 2021. Wetlands reserve program.
              Subtitle D--Environmental Quality Incentives

Sec. 2031. Environmental quality incentives program.
                Subtitle E--Farmland Protection Program

Sec. 2041. Farmland protection program.
Sec. 2042. Debt for agricultural easements.
Sec. 2043. Farmland Protection Policy Act.
      Subtitle F--Cooperative Conservation Partnership Initiative

Sec. 2051. Cooperative conservation partnership initiative.
Sec. 2052. Minimum base allocation to States in funding of certain 
                            department of agriculture conservation 
                            programs.
                Subtitle G--Other Conservation Programs

Sec. 2061. Wildlife habitat incentive program.
Sec. 2062. Pilot program for comprehensive conservation planning.
Sec. 2063. Pilot program for conservation risk management.
                 Subtitle H--Funding and Administration

Sec. 2071. Funding and administration.
Sec. 2072. Delivery of technical assistance.
Sec. 2073. Conservation application process.
Sec. 2074. Planning for agriculture grants.
Sec. 2075. Exclusion of payments under Department of Agriculture 
                            conservation programs from adjusted gross 
                            income limitation.
            Subtitle I--Conservation Loan Guarantee Program

Sec. 2081. Conservation loan guarantee program.
                            TITLE III--TRADE

Sec. 3001. Market access program.
Sec. 3002. Technical assistance for specialty crops.
                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 4001. Definition of thrifty food plan.
Sec. 4002. Exclusion of combat-related military pay from countable 
                            income.
Sec. 4003. Deductions from income.
Sec. 4004. Dependent care deduction.
Sec. 4005. Allowable financial resources.
Sec. 4006. Exclusion of retirement accounts from countable financial 
                            resources.
Sec. 4007. Simplified reporting.
Sec. 4008. Work requirement.
Sec. 4009. Fairness for legal immigrants.
Sec. 4010. Minimum benefit.
Sec. 4011. Accountability for paperwork requirements.
Sec. 4012. Administrative cost-sharing and quality control.
Sec. 4013. Reauthorization of food stamp program and food distribution 
                            program on Indian reservations.
Sec. 4014. Assistance for community food projects.
Sec. 4015. Availability of commodities for the emergency food 
                            assistance program.
Sec. 4016. Study on comparable access to food stamp benefits for Puerto 
                            Rico.
                       Subtitle B--Miscellaneous

Sec. 4021. Nutrition information and awareness pilot program.
                       TITLE V--RURAL DEVELOPMENT

Sec. 5001. Farm and ranch profitability grant program.
Sec. 5002. Definition of rural and rural area.
                           TITLE VI--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 6001. Community forest and open space conservation program.
Sec. 6002. Development of National priorities and State forest plans.
          Subtitle B--Healthy Forests Restoration Act of 2003

Sec. 6011. Healthy forests reserve program.
                           TITLE VII--ENERGY

Sec. 7001. Definition of biomass.
Sec. 7002. Federal procurement of biobased products.
Sec. 7003. Biorefinery development grants.
Sec. 7004. Energy audit and renewable energy development program.
Sec. 7005. Renewable energy systems and energy efficiency improvements.
Sec. 7006. Biomass research and development.
Sec. 7007. Cooperative research and extension projects.
Sec. 7008. Industrial site redevelopment through cellulosic program.
Sec. 7009. Farm and ranch energy efficiency rebate program.
Sec. 7010. Alternative uses for biofuel byproducts.
Sec. 7011. National net metering for farm energy.
                        TITLE VIII--HEALTH DIETS

Sec. 8001. Expansion of fresh fruit and vegetable program.
Sec. 8002. Section 32 specialty crop purchases.
Sec. 8003. School preference study.
Sec. 8004. Independent evaluation of commodity purchase process.
Sec. 8005. WIC farmers' market nutrition program.
Sec. 8006. Seniors farmers' market nutrition program.
Sec. 8007. Direct-to-consumer promotion program.
Sec. 8008. Purchases of locally produced foods.
                        TITLE IX--MISCELLANEOUS

                    Subtitle A--Organic Agriculture

Sec. 9001. National organic certification cost-share program.
                       Subtitle B--Crop Insurance

Sec. 9011. Provision of organic insurance programs.
Sec. 9012. Coverage area flexibility.
Sec. 9013. Crop insurance incentives for beginning farmers and 
                            ranchers.
Sec. 9014. Crop insurance appeals for denial of claims.
Sec. 9015. Expanded coverage based on historical data.
Sec. 9016. Reauthorization, expansion, and improvement of adjusted 
                            gross revenue insurance pilot program.
Sec. 9017. Agricultural management assistance program.
Sec. 9018. Education and risk management assistance.
                     Subtitle C--General Provisions

Sec. 9021. Colony collapse disorder.
Sec. 9022. 100-percent exclusion of gain on sales of conservation 
                            easements on farmland to eligible entities 
                            for conservation purposes.

SEC. 2. DEFINITION OF SECRETARY.

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

                             TITLE I--DAIRY

SEC. 1001. CONTINUATION OF THE MILK INCOME LOSS CONTRACT PROGRAM.

    (a) Continuation of Program; Payment Percentage Rate.--Section 
1502(c)(3)(C) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 7982(c)(3)(C)) is amended by striking ``0 percent'' and 
inserting ``and ending on September 30, 2013, 45 percent''.
    (b) Maximum Payment Quantity.--Section 1502(d)(2)) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7982(d)(2)) is 
amended in the first sentence by striking ``2,400,000 pounds'' and 
inserting ``4,800,000 pounds''.
    (c) Contract Signup and Duration.--Section 1502 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is amended in 
subsections (f) and (g)(1) by striking ``September 30, 2007'' each 
place it appears and inserting ``September 30, 2013''.

SEC. 1002. MINIMUM PRICE FOR CLASS I MILK UNDER FEDERAL MILK MARKETING 
              ORDERS.

    Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 
608c(5)), reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, is amended by adding at the end the following:
                    ``(P) Class i milk pricing.--
                            ``(i) Minimum price.--Notwithstanding any 
                        other provision of law, beginning on October 1, 
                        2007, the minimum price for Class I milk under 
                        each Federal milk marketing order issued under 
                        this subsection shall be $15.58 per 
                        hundredweight.
                            ``(ii) Adjustment for inflation.--
                                    ``(I) In general.--Beginning on 
                                October 1, 2008, and each October 1 
                                thereafter, the amount in clause (i) 
                                shall be adjusted by the percent that 
                                equals the total percentage change for 
                                the 12-month period ending 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.
                                    ``(II) Requirement.--Each 
                                adjustment under subclause (I) shall be 
                                based on the unrounded amount for the 
                                prior 12-month period.''.

SEC. 1003. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by striking 
``2007'' and inserting ``2013''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-484 (7 
U.S.C. 450l) is amended by striking ``2007'' and inserting ``2013''.

SEC. 1004. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    Section 113(e)(2) of the Dairy Production Stabilization Act of 1983 
(7 U.S.C. 4504(e)(2)) is amended by striking ``2007'' and inserting 
``2013''.

SEC. 1005. FEDERAL MILK MARKETING ORDERS.

    (a) 2-Class System for Classifying Milk.--
            (1) In general.--Not later than September 30, 2008, the 
        Secretary shall conduct a study of the economic benefits to 
        milk producers of establishing a 2-class system for classifying 
        milk under Federal milk marketing orders issued under section 
        8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), 
        reenacted with amendments by the Agricultural Marketing 
        Agreement Act of 1937, consisting of a fluid milk class and a 
        manufacturing grade milk class (with the price for both classes 
        determined using the component prices of butterfat, protein, 
        and other solids).
            (2) Amendment to orders.--
                    (A) In general.--If the Secretary determines (on 
                the basis of the study conducted under paragraph (1)) 
                that a 2-class system for classifying milk under 
                Federal milk marketing orders would have a positive 
                impact on milk producers, the Secretary submit a report 
                to the Committee on Agriculture of the House of 
                Representatives and the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate that includes the 
                text of proposed amendments to the Federal milk 
                marketing orders to implement the 2-class system for 
                classifying milk.
                    (B) Effective date.--The proposed amendments 
                described in subparagraph (A) shall take effect not 
                earlier than the date that is 180 days after the date 
                on which the report is submitted under that 
                subparagraph.
    (b) Deadline for Issuance of Orders.--Section 8c(4) of the 
Agricultural Adjustment Act (7 U.S.C. 608c(4)), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, is 
amended by striking ``After'' and inserting ``Not later than 30 days 
after''.
    (c) Advanced Pricing.--Section 8c(5) of the Agricultural Adjustment 
Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended by adding at the end the 
following:
                    ``(P) Advanced pricing.--Not later than September 
                30, 2007, in calculating the advanced price of Class I 
                butterfat milk and Class I and II skim milk under 
                Federal milk marketing orders, the Secretary shall use 
                the 4-week component prices that are used to calculate 
                prices for Class III and Class IV milk, as determined 
                by the Secretary.''.
    (d) Economic Impact Assessment.--The Secretary shall--
            (1) carry out a review of the milk-feed ratio during the 1-
        year period ending on the date of enactment of this Act; and
            (2) not later than September 30, 2008, and each time a 
        proposed change in the Federal milk marketing order formulas is 
        considered by the Secretary--
                    (A) assess the economic impact, over a 1- and 2-
                year period, of proposed changes in Federal milk 
                marketing order formulas on--
                            (i) milk supply;
                            (ii) farm profitability;
                            (iii) consumer demand; and
                            (iv) market prices;
                    (B) submit to the Committee on Agriculture of the 
                House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry a report that 
                describes the results of the assessment; and
                    (C) consider, and include in the record, the 
                results of the assessment before making a decision on 
                any proposed change to the Federal milk marketing order 
                formulas.

SEC. 1006. DAIRY PROCESSING EQUIPMENT LOAN GUARANTEE FUND.

    (a) Loans.--
            (1) In general.--Section 310B(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1932(a)) is amended--
                    (A) by designating the first through fifth 
                sentences as paragraphs (1) through (5), respectively;
                    (B) by striking ``sec 310B. (a) The Secretary'' and 
                inserting the following:

``SEC. 310B. RURAL INDUSTRIALIZATION ASSISTANCE.

    ``(a) Loans.--
            ``(1) In general.--The Secretary'';
                    (C) by striking ``for the purposes of (1) 
                improving'' and inserting ``for the purposes of--
                    ``(A) improving'';
                    (D) by striking ``abatement and control, (2) the 
                conservation'' and inserting ``abatement and control;
                    ``(B) the conservation'';
                    (E) by striking ``rural areas, (3) reducing'' and 
                inserting ``rural areas;
                    ``(C) reducing'';
                    (F) by striking ``rural areas, and (4) to 
                facilitate economic'' and inserting ``rural areas;
                    ``(D) facilitating economic''; and
                    (G) by striking ``foreign trade.'' and inserting 
                ``foreign trade; and
                    ``(E) providing processors of dairy products with 
                incentives for investing in new equipment and 
                technologies by using not more than $15,000,000 each 
                fiscal year to--
                            ``(i) make loans to dairy processors and 
                        cooperatives to cover not more than 50 percent 
                        of the cost of acquisition and adoption of new 
                        equipment, equipment upgrades, and new 
                        technologies--
                                    ``(I) at a fixed rate of interest 
                                not to exceed the prime lending rate 
                                plus 1 percent; and
                                    ``(II) with a term of not to exceed 
                                15 years; and
                            ``(ii) guarantee loans made to dairy 
                        processors and cooperatives for the acquisition 
                        and adoption of new dairy equipment, equipment 
                        upgrades, and new technologies, at a guarantee 
                        rate of 90 percent.''.
            (2) Conforming amendments.--
                    (A) Section 307(a)(6)(B)(ii) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 
                1927(a)(6)(B)(ii)) is amended by striking ``clause (1) 
                of section 310B(a)'' and inserting ``section 
                310B(a)(1)(A)''.
                    (B) Section 333A(g)(1)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1983a(g)(1)(B)) is 
                amended by striking ``310B(a)(1)'' and inserting 
                ``310(a)(1)(A)''.
                    (C) Section 381E(d)(3)(B) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2009d(d)(3)(B)) is 
                amended by striking ``310B(a)(1)'' and inserting 
                ``310B(a)(1)(A)''.
    (b) Lending Power for Dairy Processing Cooperatives.--Section 3.7 
of the Farm Credit Act of 1971 (12 U.S.C. 2128) is amended by adding at 
the end the following:
    ``(g) Dairy Processing Cooperatives.--
            ``(1) In general.--The banks for cooperatives may use not 
        more than $15,000,000 each fiscal year to provide dairy 
        processing cooperatives with working capital lines of credit 
        and accounts receivable financing for the purpose of accessing 
        export marketing opportunities for milk and milk products.
            ``(2) Limitations.--Financing provided by the banks for 
        cooperatives for a project under paragraph (1) may not exceed 
        the lesser of--
                    ``(A) $1,000,000; or
                    ``(B) 75 percent of the costs of carrying out the 
                project.
            ``(3) Term.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term of a line of credit 
                described in paragraph (1) shall not exceed 24 months.
                    ``(B) Revolving lines of credit.--A revolving line 
                of credit may be used for multiple transactions.
            ``(4) Due date.--An accounts receivable financing loan 
        under this subsection shall be due on the earlier of--
                    ``(A) the date on which the receivable is paid; or
                    ``(B) 180 days after the date of disbursement.
            ``(5) Use of financing.--
                    ``(A) Working capital line of credit financing.--
                Working capital line of credit financing under this 
                subsection may be used--
                            ``(i) to acquire inventory for the 
                        production of milk;
                            ``(ii) to pay direct and indirect costs 
                        (such as design, engineering, labor, and 
                        overhead costs) used for--
                                    ``(I) the manufacture or purchase 
                                of goods, including work-in-process, 
                                for the production of milk; or
                                    ``(II) for the provision of 
                                services for the production of milk; or
                            ``(iii) to support standby letters of 
                        credit used as bid bonds, performance bonds, or 
                        payment guarantees.
                    ``(B) Accounts receivable financing.--Accounts 
                receivable financing under this subsection may be used 
                to finance export accounts receivables for milk and 
                milk products sold on payment terms of not more than 
                180 days after the date of arrival at the port of 
                importation, if the finance export accounts receivable 
                have been insured by the Commodity Credit Corporation 
                or other guarantor approved by the Secretary.''.

SEC. 1007. FEDERAL LOAN FORGIVENESS PROGRAM.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at the end the 
following:

         ``Subtitle P--Federal Dairy Education Loan Forgiveness

``SEC. 1495. SHORT TITLE.

    ``This subtitle may be cited as the `Federal Dairy Education Loan 
Forgiveness Act'.

``SEC. 1496. DEFINITIONS.

    ``In this subtitle:
            ``(1) Family dairy farm.--The term `family dairy farm' 
        means the real property of a dairy farm--
                    ``(A) owned by--
                            ``(i) 1 or more immediate family members; 
                        or
                            ``(ii) a family dairy farm corporation; and
                    ``(B) used for the production, for commercial 
                purposes, of milk or milk products.
            ``(2) Family dairy farm corporation.--The term `family 
        dairy farm corporation' means a corporation--
                    ``(A) at least 75 percent of the assets of which 
                are devoted to active involvement in farming; and
                    ``(B) at least 75 percent of each class of stock of 
                which is continuously owned by 1 or more immediate 
                family members.
            ``(3) Immediate family member.--The term `immediate family 
        member' means a spouse, child, stepchild, parent, stepparent, 
        grandparent, brother, stepbrother, sister, stepsister, or 
        similar relative-in-law of an owner of real property, as 
        determined by the Secretary.
            ``(4) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            ``(5) Program.--The term `program' means the Federal dairy 
        education loan forgiveness program established under section 
        1497(a).
            ``(6) Qualified applicant.--The term `qualified applicant' 
        means a resident of the United States who, as determined by the 
        Secretary--
                    ``(A) holds a 2- or 4-year degree in a field 
                related to the production of agricultural products from 
                an institution of higher education;
                    ``(B) on or after January 1, 2008, has commenced 
                the first year of full-time ownership or operation of a 
                family dairy farm; and
                    ``(C) is the borrower of an outstanding qualified 
                loan as a result of pursuing a degree described in 
                subparagraph (A).
            ``(7) Qualified loan.--The term `qualified loan' means--
                    ``(A)(i) a loan made, insured, or guaranteed under 
                section 428 or 428H of the Higher Education Act of 1965 
                (20 U.S.C. 1078, 1078-8);
                    ``(ii) a Federal Direct Stafford Loan or a Federal 
                Direct Unsubsidized Stafford Loan made under section 
                455 of that Act (20 U.S.C. 1087e); or
                    ``(iii) a consolidation loan under section 428C of 
                that Act (20 U.S.C. 1078-3), or a Federal Direct 
                Consolidation Loan under section 455 of that Act (20 
                U.S.C. 1087e), to the extent that the amount of the 
                loan was used to repay a loan described in clause (i) 
                or (ii); and
                    ``(B) a loan under part B or D of title IV of that 
                Act (20 U.S.C. 1070 et seq.); or
                    ``(C) a loan under a guaranteed student loan 
                program of the Department.

``SEC. 1497. FEDERAL DAIRY EDUCATION LOAN FORGIVENESS PROGRAM.

    ``(a) In General.--Subject to the availability of appropriations, 
the Secretary shall carry out a Federal dairy education loan 
forgiveness program under which the Secretary shall assume the 
obligation to repay an amount calculated in accordance with subsection 
(c) for 1 or more qualified loans made to eligible qualified applicants 
in accordance with this section.
    ``(b) Eligibility.--A qualified applicant shall submit to the 
Secretary an application and such documentation of continued 
eligibility as the Secretary determines to be appropriate.
    ``(c) Maximum Amount.--The maximum amount that the Secretary may 
repay under the program for each qualified applicant shall be equal to 
the average annual cost of tuition at land-grant colleges and 
universities (as determined by the Secretary annually), for each year 
that the qualified applicant--
            ``(1) is an owner or operator of a family dairy farm; and
            ``(2) has not otherwise received loan repayment on behalf 
        of the qualified applicant under this section or any other 
        Federal or State program.
    ``(d) Prohibition.--Nothing in this section authorizes the 
refunding of any repayment of a qualified loan.
    ``(e) Exclusion From Income.--Any payment to, or on behalf of, a 
qualified applicant under this subtitle shall not be included in the 
gross income of the qualified applicant for purposes of the Internal 
Revenue Code of 1986.
    ``(f) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as are necessary to carry out this subtitle.
            ``(2) Insufficient funds.--If the total amount of funds 
        appropriated to carry out this subtitle is insufficient to 
        provide loan repayment under the program for all eligible 
        qualified applicants, the Secretary shall provide loan 
        repayment to eligible qualified applicants on a pro rata 
        basis.''.

SEC. 1008. MANDATORY REPORTING OF DAIRY COMMODITIES.

    (a) Definitions.--Section 272 of the Agricultural Marketing Act of 
1946 (7 U.S.C. 1637a) is amended to read as follows:

``SEC. 272. DEFINITIONS.

    ``In this subtitle:
            ``(1) Dairy commodity.--
                    ``(A) In general.--The term `dairy commodity' means 
                a product manufactured from milk or a milk-derived 
                ingredient.
                    ``(B) Inclusions.--The term `dairy commodity' 
                includes--
                            ``(i) fluid milk;
                            ``(ii) cheese;
                            ``(iii) butter;
                            ``(iv) nonfat dry milk;
                            ``(v) skim milk;
                            ``(vi) whey products;
                            ``(vii) dry proteins (such as a milk 
                        protein concentrate, casein, and a caseinate);
                            ``(viii) a lactose product; and
                            ``(ix) a fresh dairy product (such as 
                        yogurt and ice cream).
            ``(2) Dairy processor.--The term `dairy processor' means a 
        person or legal entity that commercially processes milk into 
        cheese, butter, nonfat dry milk, or other dairy solids.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.''.
    (b) Mandatory Reporting.--Section 273 of the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1637b) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) Daily Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary at least once each reporting day, not later 
        than 10:00 a.m. Central Time, for each sales transaction 
        involving a dairy commodity, information concerning--
                    ``(A) the sales price;
                    ``(B) the quantity sold;
                    ``(C) the location of the sales transaction; and
                    ``(D) product characteristics, including--
                            ``(i) moisture level;
                            ``(ii) packaging size;
                            ``(iii) grade;
                            ``(iv) if appropriate, fat or protein 
                        level;
                            ``(v) heat level for dried products; and
                            ``(vi) other defining product 
                        characteristics.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public not less frequently than once each reporting day, 
        categorized by location and product characteristics.
    ``(b) Weekly Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary, on the first reporting day of each week, not 
        later than 9:00 a.m. Central Time, for the prior week 
        information concerning--
                    ``(A) the sales prices for sales transactions 
                involving dairy commodities, categorized by product 
                characteristics; and
                    ``(B) the quantities of dairy commodities sold.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public on the first reporting day of the each week, not later 
        than 10:00 a.m. Central Time, categorized by location and 
        product characteristics.
            ``(3) Federal order prices.--The Secretary shall use weekly 
        prices published under paragraph (2) to calculate Federal milk 
        marketing order prices.
    ``(c) Monthly Reporting.--
            ``(1) In general.--The corporate officers or officially-
        designated representatives of each dairy processor shall report 
        to the Secretary, on the first reporting day of each month, not 
        later than 9:00 a.m. Central Time, the quantity of all dairy 
        commodities processed by the dairy processor during the prior 
        month.
            ``(2) Publication.--The Secretary shall make the 
        information reported under paragraph (1) available to the 
        public on the first reporting day of the each month, not later 
        than 10:00 a.m. Central Time, categorized by location and 
        product characteristics.''.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

SEC. 2001. SENSE OF CONGRESS REGARDING THE CONSERVATION SECURITY 
              PROGRAM.

    It is the sense of Congress that the conservation security program 
established under subchapter A of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) should--
            (1) be fully funded and implemented on a nationwide basis;
            (2) have simplified and streamlined payments and 
        eligibility requirements to increase transparency, clarity, and 
        ease of use by producers;
            (3) create a better balance between rewards for current 
        stewardship and incentives for new conservation;
            (4) emphasize payments based on management intensity (the 
        level of treatment) and the breadth of resource concerns 
        addressed;
            (5) reward producers for addressing the most important 
        resources of concern as determined by States;
            (6) provide greater flexibility to States and State 
        technical committees to determine and rank priority resource 
        concerns;
            (7) provide adequate technical assistance to ensure that 
        there is the capacity to enroll participants, provide on-site 
        assessment and planning, and to facilitate timely contract 
        renewals and modifications;
            (8) provide a predictable and reliable stream of revenue 
        based on environmental measures;
            (9) be universally available and adaptable to all types of 
        farm operations in all regions of the country;
            (10) have expanded eligibility to include non-industrial 
        private forested land, whether or not the land is incidental to 
        an agricultural operation;
            (11) provide a minimum annual base payment;
            (12) be coordinated with other working land conservation 
        programs of the Natural Resources Conservation Service;
            (13) encourage payments based on carbon sequestration;
            (14) encourage environmentally-sound methods and practices 
        for the production of sustainable cellulosic bioenergy 
        feedstocks; and
            (15) ensure dual eligibility for certified organic farms in 
        accordance with the amendments made by section 2002.

SEC. 2002. DUAL ELIGIBILITY FOR CERTIFIED ORGANIC FARMS.

    Section 1238C of the Food Security Act of 1985 (16 U.S.C. 3838c) is 
amended by adding at the end the following:
    ``(h) Dual Eligibility for Certified Organic Farms.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this subsection, the Secretary shall establish a 
        clear, producer-friendly means by which producers may 
        simultaneously--
                    ``(A) certify eligibility under the national 
                organic program established under the Organic Foods 
                Production Act of 1990 (7 U.S.C. 6501 et seq.) 
                (referred to in this subsection as the `national 
                organic program'); and
                    ``(B) be determined eligible for enrollment in the 
                conservation security program.
            ``(2) Continuous enrollment.--The Secretary shall allow any 
        producer that is certified as organic under the national 
        organic program to automatically enroll in the conservation 
        security program.
            ``(3) Priority.--If the Secretary establishes a system to 
        select participants to enroll in the conservation security 
        program from among eligible applicants, the Secretary shall 
        give priority, within any class or category of potential 
        participants, to producers certified under the national organic 
        program.''.

SEC. 2003. COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM.

    Section 1230(a)(1) of the Food Security Act of 1985 (16 U.S.C. 
3830(a)(1)) is amended by striking ``2002'' and inserting ``2013''.

SEC. 2004. CONSERVATION SECURITY PROGRAM.

    (a) In General.--Section 1238A(a) of the Food Security Act of 1985 
(16 U.S.C. 3838a(a)) is amended by striking ``2011'' and inserting 
``2013''.
    (b) Technical Assistance.--Section 1238C(g) of the Food Security 
Act of 1985 (16 U.S.C. 3838c(g)) is amended by striking ``2007'' and 
inserting ``2013''.

                    Subtitle B--Conservation Reserve

SEC. 2011. CONSERVATION RESERVE PROGRAM.

    (a) In General.--Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended by striking ``2007'' and inserting 
``2013''.
    (b) Eligible Land.--Section 1231(b) of the Food Security Act of 
1985 (16 U.S.C. 3831(b)) is amended--
            (1) in paragraph (1), by striking the period at the end and 
        inserting a semicolon;
            (2) in paragraph (4)--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end; and
                    (B) in subparagraph (D), by striking ``and'' and 
                inserting ``or'';
            (3) in paragraph (5), by striking the period at the end and 
        inserting a ``; or''; and
            (4) by adding at the end the following:
            ``(6) marginal pasture land or hay land that is otherwise 
        ineligible, if the Secretary determines that the land--
                    ``(A) is to be devoted to native vegetation 
                appropriate to the locale; and
                    ``(B)(i) will provide suitable habitat for a State 
                or federally listed threatened or endangered species or 
                a species determined by the Secretary of the Interior 
                to be species of concern; or
                    ``(ii) will contribute to the restoration of a 
                critically endangered ecosystem or endangered 
                ecosystem, as defined by the Secretary.''.
    (c) Maximum Enrollment.--Section 1231(d) of the Food Security Act 
of 1985 (16 U.S.C. 3831(d)) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--The Secretary'';
            (2) in paragraph (1) (as designated by paragraph (1)), by 
        striking ``2007'' and inserting ``2013''; and
            (3) by adding at the end the following:
            ``(2) Enrollment goals.--For the period beginning on the 
        date of enactment of this paragraph and ending on December 31, 
        2013, the Secretary shall establish a goal to enroll not less 
        than 7,000,000 acres of eligible land through the continuous 
        enrollment program and the conservation reserve enhancement 
        program.
            ``(3) General signup.--
                    ``(A) In general.--To the maximum extent 
                practicable, the Secretary shall ensure that not more 
                than 80 percent of the acres maintained in the 
                conservation reserve at any 1 time during the 2008 
                through 2013 calendar years are acres that were 
                enrolled through a general signup under section 
                1234(c)(2)(A).
                    ``(B) Requirements.--For an offer to be accepted 
                into the conservation reserve under the general signup, 
                the Secretary shall require an offer to have an 
                environmental benefit index score at or above a 
                threshold that is 15 percent higher than the average of 
                the thresholds used in general signups during fiscal 
                years 1996 through 2006, adjusted for changes in the 
                index over those fiscal years.''.
    (d) Duration of Contract.--Section 1231(e)(3) of the Food Security 
Act of 1985 (16 U.S.C. 3831(e)(3)) is amended by striking by striking 
``2002'' and inserting ``2008''.
    (e) Early Termination Option for Bioenergy Production.--Section 
1231(e) of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is amended 
by adding at the end the following:
            ``(4) Early termination option for bioenergy production.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                Secretary shall offer to producers applying for entry 
                into the conservation reserve through the general 
                signup under section 1234(c)(2)(A), the option of 
                including a contract provision to allow the affected 
                acreage to exit from the conservation reserve at any 
                time after an initial period of 3 years but prior to 
                completing a full contract term in order to produce a 
                sustainable cellulosic bioenergy crop on the affected 
                acres.
                    ``(B) Eligible land.--Land eligible for the early 
                termination option described in subparagraph (A) is 
                land that--
                            ``(i) has an erodibility index value of 
                        less than 15; and
                            ``(ii) is otherwise eligible for enrollment 
                        in the conservation reserve (other than land 
                        that is to be enrolled under the continuous 
                        signup or the conservation reserve enhancement 
                        program under section 1234(c)(2)(B)).
                    ``(C) Restriction.--As a condition of entering into 
                a conservation reserve contract with an early 
                termination option, if a producer with the option 
                elects to exercise the option, the producer shall be 
                required to restrict any agricultural production during 
                the remaining term that the affected acres would have 
                had under the contract to the production of a 
                sustainable cellulosic bioenergy crop on the land.
                    ``(D) Payment reduction.--If a producer elects to 
                have the early termination option included in the 
                conservation reserve contract, the Secretary shall 
                reduce the annual rental payment otherwise payable for 
                the contract to be paid on those acres during the time 
                of enrollment.
                    ``(E) Contract termination.--If a producer 
                exercises the early termination option to have the 
                affected acreage leave the reserve in order to produce 
                a sustainable cellulosic bioenergy crop, the Secretary 
                shall terminate the conservation reserve contract and 
                cease making any payment to the producer for the 
                affected acres.''.
    (f) Pilot Program for Enrollment of Wetland and Buffer Acreage in 
Conservation Reserve.--Section 1231(h)(1)(A) of the Food Security Act 
of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking ``2007'' and 
inserting ``2013''.
    (g) Balance of Natural Resource Purposes.--Section 1231(j) of the 
Food Security Act of 1985 (16 U.S.C. 3831(j)) is amended--
            (1) by striking ``In determining'' and inserting the 
        following:
            ``(1) In general.--Subject to paragraph (2), in 
        determining''; and
            (2) by adding at the end the following:
            ``(2) Equitable balance across all contracts.--In balancing 
        purposes under paragraph (1), the Secretary is not required to 
        balance all conservation purposes with respect to each 
        individual contract offer.
            ``(3) Wildlife.--In considering the extent to which a 
        contract offer would achieve the conservation purposes of the 
        conservation reserve program relating to wildlife habitat, the 
        Secretary shall consider the extent to which the contract offer 
        would--
                    ``(A) contribute to increased populations of 
                wildlife, including waterfowl, nongame grassland birds, 
                and neotropical migrants; and
                    ``(B) assist in the recovery of at-risk species.''.
    (h) Duties of Owners and Operators.--Section 1232(a) of the Food 
Security Act of 1985 (16 U.S.C. 3832(a)) is amended--
            (1) in paragraph (4)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                subparagraphs (B) and (C), respectively; and
                    (B) by inserting before subparagraph (B) (as 
                redesignated by subparagraph (A)), the following:
                    ``(A) approved vegetative cover shall not include 
                vegetative cover inappropriate to the locale;''.
            (2) by redesignating paragraphs (5) through (10) as 
        paragraphs (6) through (11); respectively;
            (3) by inserting after paragraph (4) the following:
            ``(5) to undertake appropriate management activities on the 
        land as needed throughout the term of the contract to achieve 
        the purposes of the conservation reserve program;''; and
            (4) in paragraph (8)(A)(i)(II) (as redesignated by 
        paragraph (2)), by inserting before the semicolon at the end 
        ``, taking into account grassland types and species, location, 
        weather conditions, and other factors that determine to what 
        extent harvesting and grazing activities would advance the 
        conservation purposes of the program''.
    (i) Conservation Plans.--Section 1232(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3832(b)(1)) is amended--
            (1) in subparagraph (A), by striking ``; and'' and 
        inserting ``, including appropriate management activities 
        required by subsection (a)(5);'' and
            (2) by adding at the end the following:
                    ``(C) criteria for conducting any commercial use to 
                be permitted, including criteria for managed harvesting 
                and grazing that specifies frequency, timing, number of 
                animal units, percentage of field, and other criteria 
                to ensure that managed harvesting and grazing advances 
                the conservation purposes of the conservation reserve 
                program; and''.
    (j) Cost-Share and Management Assistance.--Section 1234(b) of the 
Food Security Act of 1985 (16 U.S.C. 3834(b)) is amended by adding at 
the end the following:
            ``(6) Management costs.--The Secretary shall pay 75 percent 
        of the cost of management activities, including control of 
        invasive species, required under a contract entered into under 
        this subchapter, subject to such limits as the Secretary may 
        establish.''.
    (k) Acceptance of Contract Offers.--Section 1234(c)(3) of the Food 
Security Act of 1985 (16 U.S.C. 3834(c)(3)) is amended--
            (1) by striking ``In determining'' and all that follows 
        through ``take into consideration'' in subparagraph (A) and 
        inserting the following:
                    ``(A) In general.--In determining the acceptability 
                of contract offers, the Secretary shall take into 
                consideration'';
            (2) by striking ``benefits; and'' and all that follows 
        through ``establish'' in subparagraph (B) and inserting the 
        following: ``benefits.
                    ``(B) Maximizing environmental benefits.--The 
                Secretary shall establish criteria for the acceptance 
                of contract offers that would maximize environmental 
                benefits, including criteria relating to the 
                characteristics of the land that is the subject of the 
                contract offer, its location, proposed cover and 
                proposed management practices.
                    ``(C) Flexibility.--The Secretary may establish'';
            (3) in subparagraph (C) (as redesignated by paragraph (2)), 
        by striking ``abated'' and inserting ``abated, in order to more 
        effectively address specific State or regional resource 
        concerns and conservation priorities''; and
            (4) by adding at the end the following:
                    ``(D) Relationship to other conservation 
                programs.--In the enrollment of land in the 
                conservation reserve established under this subchapter, 
                the Secretary shall give priority to land that would 
                not produce comparable environmental benefits if the 
                land were--
                            ``(i) maintained in agricultural 
                        production; and
                            ``(ii) enrolled in the environmental 
                        quality incentives program established under 
                        chapter 4 of subtitle D or other program 
                        designed to assist producers in improving the 
                        environmental performance of working 
                        agricultural land.''.
    (l) Conservation Reserve Enhancement Program.--Section 1234(f)(1) 
of the Food Security Act of 1985 (16 U.S.C. 3834(f)(1)) is amended--
            (1) by striking ``(1)'' and all that follows through ``The 
        total'' and inserting the following:
            ``(1) Amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the total''; and
            (2) by adding at the end the following:
                    ``(B) Exception.--The Secretary may waive 
                subparagraph (A) for persons participating in a 
                conservation reserve enhancement program if the 
                Secretary determines that a waiver is necessary to 
                achieve the objectives of the conservation reserve 
                enhancement program.''.

                  Subtitle C--Wetlands Reserve Program

SEC. 2021. 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 
``2013''.
    (b) Maximum Enrollment.--Section 1237(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3837(b)(1)) is amended by striking ``2,275,000 
acres'' and inserting ``5,000,000 acres''.
    (c) Wetland Easement Conservation Plan.--Section 1237A(b)(3) of the 
Food Security Act of 1985(16 U.S.C. 3837a(b)(3)) is amended by 
inserting before the semicolon at the end the following: ``and 
activities necessary to maintain hydrologic, habitat, and other 
functional values of the wetlands''.
    (d) Cost-Share and Management Assistance.--Section 1237C of the 
Food Security Act of 1985 (16 U.S.C. 3837c) is amended--
            (1) in subsection (a)(1), by inserting ``including 
        necessary hydrologic and habitat maintenance activities,'' 
        after ``values,''; and
            (2) in subsection (b), by adding at the end the following:
            ``(4) Management costs.--The Secretary may make payments to 
        owners in an amount of up to the full actual cost of 
        undertaking any ongoing or periodic management activities 
        necessary to maintain the functional values of wetland enrolled 
        in the wetlands reserve program.''.

              Subtitle D--Environmental Quality Incentives

SEC. 2031. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Purposes.--Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended--
            (1) in paragraph (2), by inserting ``, conserving energy,'' 
        after ``resources''; and
            (2) in paragraph (3), by inserting ``and conserve energy,'' 
        after ``wildlife''.
    (b) Extension.--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 ``2013''.
    (c) Bidding Down.--Section 1240B of the Food Security Act of 1985 
(16 U.S.C. 3839aa-2) is amended by striking subsection (c) and 
inserting the following:
    ``(c) Bidding Down.--
            ``(1) In general.--The Secretary shall not assign a higher 
        priority to any application because the applicant is willing to 
        accept a lower cost-share or incentive payment than the 
        applicant would otherwise be entitled to receive.
            ``(2) Cost-effectiveness.--Nothing in this subsection 
        relieves the Secretary of the obligation, when evaluating 
        applications for cost-share payments and incentive payments--
                    ``(A) to evaluate the cost-effectiveness of the 
                proposed conservation practices, systems, and 
                approaches described in the applications; and
                    ``(B) to prioritize the most cost-effective 
                applications in accordance with section 1240C(1).''.
    (d) Cost-Share Payment Exception.--Section 1240B(d)(2) of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-2(d)(2)) is amended by striking 
subparagraph (A) and inserting the following:
                    ``(A) Limited resource and beginning farmers.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary may increase the amount provided 
                        to a producer under paragraph (1) to not more 
                        than 90 percent if the producer is a limited 
                        resource or beginning farmer or rancher, as 
                        determined by the Secretary.
                            ``(ii) Limitation.--A cost-share payment 
                        under this paragraph shall not be less than 115 
                        percent of the amount of the payment that the 
                        Secretary may determine under paragraph (1).''.
    (e) 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 ``2013''.
    (f) Evaluation of Applications for Cost-Share Payments and 
Incentive Payments.--Section 1240C of the Food Security Act of 1985 (16 
U.S.C. 3839aa-3) is amended to read as follows:

``SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST-SHARE PAYMENTS AND 
              INCENTIVE PAYMENTS.

    ``In evaluating applications for cost-share payments and incentive 
payments, the Secretary shall--
            ``(1) prioritize applications based on the overall level of 
        cost-effectiveness of the applications to ensure, to the 
        maximum extent practicable, that the proposed conservation 
        practices, systems, and approaches are the most efficient means 
        of achieving the anticipated environmental benefits of the 
        project;
            ``(2) prioritize applications based on how effectively and 
        comprehensively the projects address the 1 or more designated 
        resource concerns;
            ``(3) reward higher levels of environmental performance, 
        such as advanced levels of management within land management 
        practices;
            ``(4) develop criteria for evaluating applications that 
        will ensure that national, State, and local conservation 
        priorities are effectively addressed; and
            ``(5) prioritize applications that will improve 
        environmental performance on existing operations.''.
    (g) Conservation Innovation Grants.--Section 1240H of the Food 
Security Act of 1985 (16 U.S.C. 3839aa-8) is amended--
            (1) in subsection (a), by striking ``may'' and inserting 
        ``shall'';
            (2) in subsection (b)--
                    (A) in the matter before paragraph (1), by striking 
                ``may'' and inserting ``shall'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end; and
                            (ii) by adding at the end the following:
                    ``(C) methane digester research; and''.
                    (C) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(4) include a plan for technology transfer.''; and
            (3) by adding at the end the following:
    ``(d) Technology Transfer.--To the maximum extent practicable, the 
Secretary shall ensure efficient, effective transfer of innovative 
technologies and approaches demonstrated through projects that receive 
funding under this section.
    ``(e) Funding.--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, of funds of the Commodity Credit Corporation--
            ``(1) $40,000,000 for fiscal year 2008;
            ``(2) $50,000,000 for fiscal year 2009;
            ``(3) $60,000,000 for fiscal year 2010; and
            ``(4) $75,000,000 for each of fiscal years 2011 through 
        2013.''.
    (h) 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 ``2013''.
    (i) Performance Incentives for States.--Chapter 4 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
is amended by adding at the end the following:

``SEC. 1240J. PERFORMANCE INCENTIVES FOR STATES.

    ``(a) High Level of Performance Bonus.--For each of fiscal years 
2008 through 2013, 10 percent of the funds made available to carry out 
this chapter shall be reserved by the Secretary for bonus allocations 
to States that demonstrate a high level of performance in implementing 
the environmental quality incentives program, as determined by the 
Secretary in accordance with subsection (b).
    ``(b) Special Considerations.--In evaluating State performance 
under subsection (a), the Secretary shall reward States that--
            ``(1) consistently meet the requirements of section 1240C 
        in evaluating offers and payments;
            ``(2) dedicate a portion of the annual environmental 
        quality incentives program allocation of the States to 
        multiproducer cooperative efforts to address specific resource 
        concerns;
            ``(3) collaborate with other Federal and State agencies, 
        local governments, educational institutions, and for-profit and 
        nonprofit organizations to monitor and evaluate the 
        environmental outcomes associated with implementation of the 
        environmental quality incentives program;
            ``(4) demonstrate effective and efficient program delivery, 
        including the provision of adequate technical assistance to all 
        program participants through--
                    ``(A) appropriate staffing; and
                    ``(B) cooperation with other Federal, State, 
                tribal, and local agencies, for-profit and nonprofit 
                organizations, and individuals with demonstrated 
                expertise in the planning and implementation of 
                conservation practices, systems, and approaches;
            ``(5) support and encourage innovative approaches to 
        addressing resource concerns;
            ``(6) effectively leverage Federal funding with local and 
        State matching funds; and
            ``(7) demonstrate effective outreach and innovative 
        approaches to reaching and serving beginning farmers and 
        ranchers, limited-resource producers, and operators with lower 
        rates of historical participation in Federal farm and 
        conservation programs.''.

                Subtitle E--Farmland Protection Program

SEC. 2041. FARMLAND PROTECTION PROGRAM.

    (a) Definitions.--Section 1238H of the Food Security Act of 1985 
(16 U.S.C. 3838h) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Eligible land.--
                    ``(A) In general.--The term `eligible land' means 
                land on a farm or ranch that is--
                            ``(i) cropland;
                            ``(ii) rangeland;
                            ``(iii) grassland;
                            ``(iv) pasture land; or
                            ``(v) forest land that is an incidental 
                        part of an agricultural operation, as 
                        determined by the Secretary.'';
            (2) by redesignating paragraph (4) as paragraph (5);
            (3) by inserting after paragraph (3) the following:
            ``(4) Permanent conservation easement.--The term `permanent 
        conservation easement' means a conservation easement or other 
        interest in eligible land that--
                    ``(A) is for the primary purpose of protecting the 
                agricultural production capacity of the eligible land; 
                and
                    ``(B) is permanent or for the maximum duration 
                allowed under State law.''; and
            (4) by adding at the end the following:
            ``(6) Qualified state or local entity.--The term `qualified 
        State or local entity' means a public or private entity that--
                    ``(A) operates a farm and ranch land protection 
                program that--
                            ``(i) has for at least 3 calendar or fiscal 
                        years used or provided public or private funds 
                        to purchase permanent conservation easements on 
                        not less than 10 farms or ranches;
                            ``(ii) has the necessary authority under 
                        State law, as well as the technical and 
                        financial capacity and natural resources--
                                    ``(I) to monitor and enforce the 
                                terms of the permanent conservation 
                                easements so that the purpose of the 
                                permanent conservation easements is 
                                carried out for the maximum allowable 
                                duration; or
                                    ``(II) in the case of a 
                                governmental entity, to require other 
                                public or private holders of the 
                                permanent conservation easements 
                                acquired with public funding to hold, 
                                monitor, and enforce in perpetuity the 
                                permanent conservation easements for 
                                the purpose described in subclause (I); 
                                and
                            ``(iii) has financial control policies to 
                        ensure that, on average, the purchase price of 
                        the permanent conservation easements does not 
                        exceed the appraised fair market value of the 
                        permanent conservation easements; and
                    ``(B) is an eligible entity.''.
    (b) Farmland Protection.--Section 1238I of the Food Security Act of 
1985 (16 U.S.C. 3838i) is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (e) and (f), respectively;
            (2) by striking subsection (a) and inserting the following:
    ``(a) Program.--
            ``(1) In general.--The Secretary, acting through the 
        Natural Resources Conservation Service, shall carry out a farm 
        and ranch land protection program under which the Secretary 
        shall facilitate and provide funding for the purchase of 
        conservation easements or other interests in eligible land for 
        the purpose of protecting the agricultural production capacity 
        and natural resources of the land by limiting incompatible 
        nonagricultural uses of the land.
            ``(2) Priority.--In carrying out the program, the Secretary 
        shall give the highest priority to protecting farm and ranch 
        land with prime, unique, or other productive soils that are at 
        risk of nonagricultural development.
    ``(b) Grants.--
            ``(1) In general.--The Secretary, acting through the 
        Natural Resources Conservation Service, shall use funds made 
        available to carry out this subchapter to award grants to 
        qualified State or local entities for the purchase of 
        conservation easements and other interests in land.
            ``(2) Distribution.--The Secretary shall distribute grants 
        described in paragraph (1) among States based on--
                    ``(A) the demonstrated need for farm and ranch land 
                protection; and
                    ``(B) the relative contribution of funds provided 
                by State or local entities for the protection of farm 
                and ranch land.
            ``(3) Use of grants.--A qualified State or local entity 
        that receives a grant under this subsection--
                    ``(A) may use the grant funds to purchase 1 or more 
                conservation easements, regardless of whether the 
                qualified State or local entity has a pending purchase 
                offer for any of the conversation easements at the time 
                of receiving the grant;
                    ``(B) shall use the grant funds only for the 
                purchase of conservation easements and other interests 
                in land; and
                    ``(C) may use up to 10 percent of the amount of the 
                grant for reasonable costs of purchasing and enforcing 
                conservation easements and other interests in land.
            ``(4) Remaining funds.--Any funds remaining after grants 
        are distributed to qualified State or local entities shall be 
        available to other eligible entities as matching funds for 
        individual purchases of conservation easements and other 
        interests in land.
    ``(c) Grant Agreements.--
            ``(1) In general.--The Secretary, acting through the 
        Natural Resources Conservation Service, may enter into 
        agreements with qualified State or local entities, under which 
        a State or local entity may purchase conservation easements 
        using a combination of the funds of the entity and grant funds 
        made available by the Secretary under subsection (b).
            ``(2) Terms and conditions.--
                    ``(A) In general.--Subject to subparagraph (B), an 
                agreement described in paragraph (1) shall stipulate 
                the terms and conditions under which qualified State or 
                local entities shall use grant funds distributed by the 
                Secretary under subsection (b).
                    ``(B) Requirements.--Each agreement shall, in 
                accordance with the purposes of the program under this 
                section--
                            ``(i) authorize the State or local entity 
                        to determine the criteria and priorities of the 
                        entity for purchasing conservation easements 
                        and other interests in land;
                            ``(ii) authorize the State or local entity 
                        to establish terms and conditions for 
                        conservation easements and other purchases of 
                        interests in land, if--
                                    ``(I) such terms and conditions are 
                                adequate under State law to achieve and 
                                permit effective enforcement of the 
                                conservation purposes of the 
                                conservation easements or other 
                                interests; and
                                    ``(II) the State or local entity 
                                includes a requirement regarding the 
                                impervious surfaces to be allowed for 
                                any conservation easement or other 
                                interest in land purchased using grant 
                                funds provided under this section;
                            ``(iii) not require a Federal contingent 
                        right of enforcement or reversionary interest 
                        in the conservation easement or other interest 
                        in land; and
                            ``(iv) allow qualified entities to use up 
                        to 10 percent of the amount of the grant for 
                        reasonable costs of purchasing and enforcing 
                        conservation easements and other interests in 
                        land.
    ``(d) Individual Purchases.--
            ``(1) In general.--The Secretary may enter into agreements 
        with eligible entities under which the Secretary shall provide 
        matching funds to the eligible entities for the purpose of 
        purchasing conservation easements or other interests in land on 
        individual farm and ranch properties.
            ``(2) Requirements.--An agreement described in paragraph 
        (1) shall--
                    ``(A) include such terms and conditions as the 
                Secretary considers appropriate to ensure that the 
                purposes of the farmland protection program are carried 
                out;
                    ``(B) not require a Federal continent right of 
                enforcement or reversionary interest in the 
                conservation easement or other interest in land, if--
                            ``(i) the conservation easement or other 
                        interest in land is held by a State or local 
                        agency; or
                            ``(ii) a qualified State or local entity 
                        will hold a contingent right of enforcement in 
                        the conservation easement or other interest in 
                        land.'';
            (3) in subsection (e) (as redesignated by paragraph (1))--
                    (A) by striking ``Any highly'' and inserting the 
                following:
            ``(1) In general.--Notwithstanding subsection 
        (c)(2)(B)(ii), subject to paragraph (2), any highly''; and
                    (B) by adding at the end the following:
            ``(2) Permanent conservation easements.--In the case of a 
        permanent conservation easement, the Secretary may not require 
        the conversion of cropland to less intensive uses if, under the 
        conservation plan, soil erosion can be reduced to `T' or 
        below.''; and
            (4) in paragraph (1) of subsection (f) (as redesignated by 
        paragraph (1))--
                    (A) in subparagraph (A), by striking ``section 
                1241(d)'' and inserting ``1241(a)(4)'';
                    (B) by striking ``shall not exceed 50 percent'' and 
                inserting the following: ``shall not exceed--
                            ``(i) 50 percent'';
                    (C) by striking the period at the end and inserting 
                ``; or''; and
                    (D) by adding at the end the following:
                            ``(ii) if a qualified conservation 
                        contribution, as defined by section 170(h) of 
                        the Internal Revenue Code of 1986, of at least 
                        25 percent of the market value is made by the 
                        landowner in connection with the purchase of a 
                        conservation easement or other interest in 
                        land, \2/3\ of the actual cost of purchasing 
                        the conservation easement or other interest in 
                        land.''.

SEC. 2042. DEBT FOR AGRICULTURAL EASEMENTS.

    Subchapter B of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 is amended--
            (1) by redesignating section 1238J (16 U.S.C. 3838j) as 
        1238K; and
            (2) by inserting after section 1238I (16 U.S.C. 3838i) the 
        following:

``SEC. 1238J. DEBT FOR AGRICULTURAL EASEMENTS.

    ``(a) Definitions.--In this section:
            ``(1) Conservation purposes.--The term `conservation 
        purposes' means the permanent protection of agricultural land 
        for continued agricultural use.
            ``(2) Governmental entity.--The term `governmental entity' 
        means any Federal agency, a State or State agency, or a unit of 
        local government.
            ``(3) Recreational purposes.--The term `recreational 
        purposes' includes hunting.
            ``(4) Wildlife.--The term `wildlife' has the meaning given 
        the term `fish or wildlife' in section 2 of the Lacey Act 
        Amendments of 1981 (16 U.S.C. 3371).
    ``(b) Contracts on Loan Security Properties.--Subject to subsection 
(c), the Secretary--
            ``(1) may enter into a contract relating to real property 
        for conservation purposes, recreational purposes, or wildlife 
        purposes; and
            ``(2) shall offer to enter into a contract relating to real 
        property for conservation purposes if--
                    ``(A) the property secures any delinquent loan made 
                under any law administered by the Secretary and held by 
                the Secretary;
                    ``(B) at least 50 percent of the property is prime 
                or unique farmland or farmland of statewide importance, 
                as determined by the Secretary; and
                    ``(C) the property is reasonably likely to be 
                developed for nonagricultural purposes in the absence 
                of such a contract, as determined by the Secretary.
    ``(c) Limitations.--The Secretary may enter into a contract 
described in subsection (b) if--
            ``(1) the property is prime or unique farmland, farmland of 
        statewide importance, wetland, upland, or highly erodible land;
            ``(2) the property is determined by the Secretary to be 
        suitable for the purposes of the contract;
            ``(3) the property secures any loan made under any law 
        administered by the Secretary and held by the Secretary; and
            ``(4) the contract better enables a qualified borrower to 
        repay the loan in a timely manner, as determined by the 
        Secretary.
    ``(d) Terms and Conditions.--The terms and conditions specified in 
each contract described in subsection (b) shall--
            ``(1) specify the purposes for which the real property may 
        be used;
            ``(2) identify the conservation measures to be taken, and 
        the 1 or more agricultural, recreational, or wildlife uses to 
        be allowed, with respect to the real property; and
            ``(3) require the owner of the property to permit the 
        Secretary, and any person or governmental entity designated by 
        the Secretary, to have access to the real property for the 
        purpose of monitoring compliance with the contract.
    ``(e) Loan Reduction or Forgiveness.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        may reduce or forgive the outstanding debt of a borrower--
                    ``(A) in the case of a borrower to whom the 
                Secretary has made 1 or more outstanding loans under 
                laws administered by the Secretary, by canceling that 
                part of the aggregate amount of the outstanding loans 
                that bears the same ratio to the aggregate amount as--
                            ``(i) the number of acres of the real 
                        property of the borrower that are subject to 
                        the contract; bears to
                            ``(ii) the aggregate number of acres 
                        securing the loans; or
                    ``(B) in any other case, by treating as prepaid 
                that part of the principal amount of a new loan to the 
                borrower issued and held by the Secretary under a law 
                administered by the Secretary that bears the same ratio 
                to the principal amount as--
                            ``(i) the number of acres of the real 
                        property of the borrower that are subject to 
                        the contract; bears to
                            ``(ii) the aggregate number of acres 
                        securing the new loan.
            ``(2) Limitation.--The amount canceled or treated as 
        prepaid pursuant to paragraph (1) shall not exceed--
                    ``(A) in the case of a delinquent loan, the greater 
                of--
                            ``(i) the value of the land for which the 
                        contract is entered into; or
                            ``(ii) the difference between--
                                    ``(I) the amount of the outstanding 
                                loan secured by the land; and
                                    ``(II) the value of the land;
                    ``(B) in the case of a nondelinquent loan, 33 
                percent of the amount of the loan secured by the land; 
                or
                    ``(C) for any loan, the difference between--
                            ``(i) the fair market value of the land for 
                        which the contract is entered into; and
                            ``(ii)(I) any reductions required by the 
                        terms of the contract; and
                            ``(II) the fair market value of the land 
                        unrestricted by the contract.
    ``(f) Consultations With Fish and Wildlife Service.--If the 
Secretary elects to use the authority provided by this section to enter 
into contracts for recreational or wildlife purposes, the Secretary 
shall consult with the Secretary of the Interior to--
            ``(1) select real property for which the Secretary may 
        enter into contracts for recreational or wildlife purposes 
        under this section;
            ``(2) formulate the terms and conditions of such contracts; 
        and
            ``(3) enforce the contracts.
    ``(g) Enforcement.--The Secretary, and any person or governmental 
entity designated by the Secretary, may enforce a contract entered into 
by the Secretary under this section.''.

SEC. 2043. FARMLAND PROTECTION POLICY ACT.

    (a) Findings.--Section 1540(a) of the Farmland Protection Policy 
Act (7 U.S.C. 4201(a)) is amended--
            (1) by striking the section heading and all that follows 
        through paragraph (3) and inserting the following:

``SEC. 1540. FINDINGS, PURPOSES, AND DEFINITIONS.

    ``(a) Findings.--Congress finds that--
            ``(1) the farmland of the United States is a unique and 
        irreplaceable natural resource critical to the national 
        security of the United States, that provides food, fiber, and 
        renewable energy necessary for the continued welfare of the 
        people of the United States;
            ``(2) each year, a large quantity of United States farmland 
        is unnecessarily and irrevocably converted from actual or 
        potential agricultural use to nonagricultural use;
            ``(3) continued conversion of the United States farmland 
        base to nonagricultural uses may threaten the ability of the 
        United States to produce food, fiber, and renewable energy in 
        sufficient quantities to meet domestic needs and the demands of 
        export markets;'';
            (2) in paragraph (5), by striking ``would be preferred'' 
        and inserting ``are feasible'';
            (3) in paragraph (6), by striking ``and'' at the end;
            (4) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding at the end the following:
            ``(8) the Department of Agriculture and other Federal 
        agencies should be required--
                    ``(A) to ensure that the actions of the Federal 
                Government do not cause permanently-protected United 
                States farmland to be irreversibly converted to 
                nonagricultural uses in cases in which there are other 
                feasible alternatives; and
                    ``(B) to mitigate the loss of any such farmland if 
                no feasible alternative exists.''.
    (b) Purposes and Definitions.--Section 1540 of the Farmland 
Protection Policy Act (7 U.S.C. 4201) is amended by striking 
subsections (b) and (c) and inserting the following:
    ``(b) Purposes.--The purposes of this subtitle are--
            ``(1) to minimize the extent to which Federal programs 
        contribute to the irreversible conversion of farmland to 
        nonagricultural uses; and
            ``(2) to the maximum extent practicable, ensure that 
        Federal programs are administered in a manner that is 
        compatible with State, local, and private programs and policies 
        to protect farmland.
    ``(c) Definitions.--In this subtitle:
            ``(1) Farmland.--The term `farmland' means--
                    ``(A) prime farmland;
                    ``(B) unique farmland; and
                    ``(C) farmland of statewide or local importance.
            ``(2) Farmland of statewide or local importance.--The term 
        `farmland of statewide or local importance' means farmland, 
        other than prime farmland or unique farmland, that--
                    ``(A) is of statewide or local importance for the 
                production of food, feed, fiber, forage, oilseed, or 
                energy crops, as determined by the appropriate State or 
                1 or more agencies of a unit of local government; and
                    ``(B) the Secretary determines should be considered 
                to be farmland for the purposes of this subtitle.
            ``(3) Federal program.--
                    ``(A) In general.--The term `Federal program' means 
                those activities or responsibilities of a department, 
                agency, independent commission, or other unit of the 
                Federal Government that involve--
                            ``(i) undertaking, financing, or assisting 
                        construction or improvement projects; or
                            ``(ii) acquiring, managing, or disposing of 
                        Federal land and facilities.
                    ``(B) Exclusion.--The term `Federal program' does 
                not include construction or improvement projects that 
                are, as of the effective date of this subtitle--
                            ``(i) beyond the planning stage; and
                            ``(ii) in the active design or construction 
                        stage.
            ``(4) Permanently-protected farmland.--The term 
        `permanently-protected farmland' means farmland that is--
                    ``(A) subject to a permanent easement for 
                conservation purposes described in clause (i), (ii), or 
                (iii) of section 170(h)(4)(A) of the Internal Revenue 
                Code of 1986;
                    ``(B) held by the Federal Government or any State 
                or local unit of government.
            ``(5) Prime farmland.--
                    ``(A) In general.--The term `prime farmland' means 
                land that has the best combination of physical and 
                chemical characteristics for producing food, feed, 
                fiber, forage, oilseed, and other agricultural crops 
                with minimum inputs of fuel, fertilizer, pesticides, 
                and labor, and without intolerable soil erosion, as 
                determined by the Secretary.
                    ``(B) Inclusions.--The term `prime farmland' 
                includes land that--
                            ``(i) possesses the characteristics 
                        described in subparagraph (A); and
                            ``(ii) is being used currently to produce 
                        livestock or timber.
                    ``(C) Exclusion.--The term `prime farmland' does 
                not include land already in or committed to urban 
                development or water storage.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(7) State.--The term `State' means--
                    ``(A) each of the several States of the United 
                States;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico;
                    ``(D) Guam;
                    ``(E) American Samoa;
                    ``(F) the Commonwealth of the Northern Mariana 
                Islands;
                    ``(G) the Federated States of Micronesia;
                    ``(H) the Republic of the Marshall Islands;
                    ``(I) the Republic of Palau; and
                    ``(J) the United States Virgin Islands.
            ``(8) Unique farmland.--The term `unique farmland' means 
        land other than prime farmland or farmland of statewide or 
        local importance that--
                    ``(A) is used for production of specific high-value 
                food and fiber crops, as determined by the Secretary; 
                and
                    ``(B) has the special combination of soil quality, 
                location, growing season, and moisture supply needed to 
                economically produce sustained high quality or high 
                yields of specific crops (such as citrus, tree nuts, 
                olives, cranberries, fruits, and vegetables) when 
                treated and managed according to acceptable farming 
                methods.
            ``(9) Unit of the federal government.--The term `unit of 
        the Federal Government' means each department, agency, 
        independent commission, and other unit of the Federal 
        Government.
            ``(10) Unit of local government.--The term `unit of local 
        government' means--
                    ``(A) the government of a county, municipality, 
                town, township, village, or other unit of general 
                government below the State level; or
                    ``(B) a combination of units of local government 
                acting through an areawide agency under State law or an 
                agreement for the formulation of regional development 
                policies and plans.'';
    (c) Farmland Protection Policy.--Section 1541 of the Farmland 
Protection Policy Act (7 U.S.C. 4202) is amended--
            (1) by striking the section heading and all that follows 
        through ``(a) The Department of Agriculture'' and inserting the 
        following:

``SEC. 1541. FARMLAND PROTECTION POLICY.

    ``(a) In General.--The Secretary'';
            (2) by striking subsection (b);
            (3) in subsection (c), by striking ``(c) The Department of 
        Agriculture'' and inserting the following:
    ``(f) Provision of Information.--The Secretary''; and
            (4) by inserting after subsection (a) the following:
    ``(b) Use of Criteria.--Each unit of the Federal Government shall, 
in cooperation with the Secretary, use the criteria established under 
subsection (a) to--
            ``(1) identify the quantity of farmland that will be 
        directly or indirectly converted through proposed Federal 
        program actions under the jurisdiction of the unit of the 
        Federal Government; and
            ``(2) to the maximum extent practicable, develop and 
        implement alternative actions--
                    ``(A) to minimize the impact of each proposed 
                Federal program action on the conversion of farmland to 
                nonagricultural uses; and
                    ``(B) ensure the compatibility of the proposed 
                Federal program action with State, unit of local 
                government, and private programs and policies to 
                protect farmland.
    ``(c) Limitation.--
            ``(1) In general.--Permanently-protected farmland shall not 
        be subject to conversion to nonagricultural uses by Federal 
        programs unless the Secretary determines that there is no other 
        feasible alternative to the proposed Federal program action.
            ``(2) Mitigation.--In a case in which a Federal action 
        results in the conversion of permanently-protected farmland to 
        nonagricultural use, the responsible Federal entity shall 
        mitigate the loss of the permanently-protected farmland with 
        the protection of an equal amount of permanently-protected 
        farmland that is of equal or greater quality to the converted 
        land.
    ``(d) Annual Report.--
            ``(1) In general.--Each unit of the Federal Government 
        shall submit to the Secretary an annual report containing the 
        information required under subsection (b).
            ``(2) Availability.--The Secretary shall make each report 
        described in paragraph (1) available to the public on an annual 
        basis.
    ``(e) Enforcement.--Any unit of the Federal Government, State, unit 
of local government, organization, or individual aggrieved by a 
violation of any of the provisions of this subtitle shall have a civil 
cause of action against the unit of the Federal Government committing 
the violation.''.
    (d) Existing Policies and Procedures.--Section 1542 of the Farmland 
Protection Policy Act (7 U.S.C. 4203) is amended--
            (1) by striking the section heading and all that follows 
        through ``or other unit'' in subsection (a) and inserting the 
        following:

``SEC. 1542. EXISTING POLICIES AND PROCEDURES.

    ``(a) In General.--Each unit''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) Requirement.--Each unit of the Federal Government, with the 
assistance of the Secretary, shall, as appropriate, bring the programs, 
authorities, and administrative activities of the unit of the Federal 
Government into conformity with the purposes and policy of this 
subtitle.''.
    (e) Technical Assistance.--Section 1543 of the Farmland Protection 
Policy Act (7 U.S.C. 4204) is amended to read as follows:

``SEC. 1543. TECHNICAL ASSISTANCE.

    ``The Secretary shall provide to States, units of local government, 
nonprofit organizations, and the general public technical assistance to 
assist in the development of programs or policies to limit the 
conversion of farmland to nonagricultural uses.''.
    (f) Farmland Resource Information.--Section 1544 of the Farmland 
Protection Policy Act (7 U.S.C. 4205) is amended to read as follows:

``SEC. 1544. FARMLAND RESOURCE INFORMATION.

    ``(a) In General.--The Secretary, through existing agencies or 
interagency groups, and in cooperation with nonprofit organizations or 
the cooperative extension services of the States, shall--
            ``(1) design and implement educational programs and 
        materials emphasizing the importance of productive farmland to 
        the well-being of the United States; and
            ``(2) distribute educational materials through 
        communications media, schools, groups, and other Federal 
        agencies.
    ``(b) Farmland Information Centers.--
            ``(1) In general.--The Secretary shall designate 1 or more 
        farmland information centers to provide technical assistance 
        and serve as central depositories and distribution points for 
        information on farmland issues.
            ``(2) Inclusions.--Information provided by the 1 or more 
        farmland information centers shall--
                    ``(A) include on-line access to data on land cover; 
                and
                    ``(B) use changes and trends and literature, laws, 
                historical archives, policies, programs, and innovative 
                actions or proposals by local and State governments or 
                nonprofit organizations relating to farmland 
                protection.
    ``(c) Funding.--
            ``(1) In general.--Funding for subsection (b) shall--
                    ``(A) be provided through the farmland protection 
                program established under subchapter B of chapter 2 of 
                subtitle D of title XII of the Food Security Act of 
                1985 (16 U.S.C. 3838h et seq.);
                    ``(B) not exceed \1/2\ of 1 percent of annual 
                appropriations for that program; and
                    ``(C) be not less than $400,000 for each fiscal 
                year.
            ``(2) Matching funds.--Federal funding for the 1 or more 
        farmland information centers shall be matched on a 1-to-1 basis 
        with non-Federal funds, through cash or in-kind 
        contributions.''.
    (g) Implementation.--Section 1545 of the Farmland Protection Policy 
Act (7 U.S.C. 4206) is amended to read as follows:

``SEC. 1545. IMPLEMENTATION.

    ``Except as provided in sections 1544 and 1548, the Secretary shall 
carry out this subtitle using existing facilities and funds otherwise 
available, through the use of grants, contracts, or such other means as 
the Secretary considers to be appropriate.''.
    (h) Reports.--Section 1546 of the Farmland Protection Policy Act (7 
U.S.C. 4207) is amended to read as follows:

``SEC. 1546. REPORT.

    ``(a) In General.--At the beginning of each calendar year, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate a report describing the progress made in 
implementing this subtitle.
    ``(b) Inclusions.--An annual report under subsection (a) shall 
include--
            ``(1) data on the conversion of farmland to nonagricultural 
        uses at the national, State, and, as available, local level;
            ``(2) information on the effects of Federal programs, 
        authorities, and administrative activities with respect to the 
        protection of United States farmland; and
            ``(3) the results of the data collected and reviews and 
        actions taken as required under sections 1541 and 1542.''.
    (i) Statement of Limitation.--Section 1547 of the Farmland 
Protection Policy Act (7 U.S.C. 4208) is amended--
            (1) by striking the section heading and all that follows 
        through ``(a) This subtitle'' and inserting the following:

``SEC. 1547. STATEMENT OF LIMITATION.

    ``(a) In General.--This subtitle''; and
            (2) by striking ``(b) None of'' and inserting the 
        following:
    ``(b) National Emergencies.--None of''.
    (j) Repeals.--The Farmland Protection Policy Act is amended by 
striking sections 1548, 1549, 1550, 1552, 1553, and 1554 (7 U.S.C. 
4209, 4201 note, 2273; 16 U.S.C. 3471, 3472, 3473).
    (k) National Agricultural Land Commission.--The Farmland Protection 
Policy Act is amended by inserting after section 1547 (7 U.S.C. 4208) 
the following:

``SEC. 1548. NATIONAL AGRICULTURAL LAND COMMISSION.

    ``(a) Establishment.--There is established a commission to be known 
as the `National Agricultural Land Commission' (referred to in this 
section as the `Commission').
    ``(b) Membership.--
            ``(1) Composition.--The Commission shall be composed of 23 
        members, of whom--
                    ``(A) 1 shall be the Secretary, who shall be the 
                Chairperson of the Commission;
                    ``(B) 10 members shall be appointed by the 
                President, from among individuals who are 
                representatives of State and local governments, 
                academia, nonprofit conservation organizations, and 
                farm, forest, and ranch interests;
                    ``(C) 6 shall be members, or designees of members, 
                of the Committee on Agriculture of the House of 
                Representatives; and
                    ``(D) 6 shall be members, or designees of members 
                of the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.
            ``(2) Term; vacancies.--
                    ``(A) Term.--A member shall be appointed for the 
                life of the Commission.
                    ``(B) Vacancies.--A vacancy on the Commission--
                            ``(i) shall not affect the powers of the 
                        Commission; and
                            ``(ii) shall be filled in the same manner 
                        as the original appointment was made.
            ``(3) Initial meeting.--Not later than 30 days after the 
        date on which all members of the Commission have been 
        appointed, the Commission shall hold the initial meeting of the 
        Commission.
            ``(4) Meetings.--The Commission shall meet at the call of 
        the Chairperson.
    ``(c) Duties.--
            ``(1) Study.--
                    ``(A) In general.--The Commission shall--
                            ``(i) conduct a study of all matters 
                        relating to the importance of protecting an 
                        adequate agricultural land base to homeland 
                        security, food security, energy security, 
                        environmental quality, and quality of life in 
                        the United States; and
                            ``(ii) develop recommendations by which the 
                        Federal Government can encourage the retention 
                        of agricultural land at the national, State, 
                        and local levels.
                    ``(B) Requirements.--In conducting the study, the 
                Commission shall--
                            ``(i) identify the quality, quantity, and 
                        location of the agricultural land in the United 
                        States;
                            ``(ii) identify and define the effects of 
                        urbanization, industrial, and commercial 
                        development and other nonagricultural 
                        activities on the United States agricultural 
                        land base;
                            ``(iii) identify and define the 
                        implications for the United States agricultural 
                        land base of--
                                    ``(I) global and national 
                                population trends and the projected 
                                international and domestic demand for 
                                food and energy production from the 
                                United States agricultural land;
                                    ``(II) national land use trends and 
                                competing demands on the United States 
                                agricultural land as a source for 
                                housing, industrial, and commercial 
                                development, food, fiber and energy 
                                production, and recreational and 
                                environmental amenities;
                                    ``(III) national environmental 
                                trends and the capacity of the United 
                                States agricultural land to contribute 
                                to improvements in water quality and 
                                quantity, air quality, and carbon 
                                sequestration;
                                    ``(IV) agricultural land loss by 
                                region and the projected impact of the 
                                land loss on the food and energy 
                                security, natural resources, and 
                                economy of the region;
                                    ``(V) land ownership patterns and 
                                the impact of the patterns on the 
                                security of the United States 
                                agricultural land base;
                                    ``(VI) State and local programs, 
                                policies, and actions effecting or 
                                supporting agricultural land 
                                availability; and
                                    ``(VII) Federal programs, policies, 
                                and actions affecting or supporting 
                                agricultural land availability; and
                            ``(iv) explore methods by which the Federal 
                        Government can encourage retention of the 
                        United States agricultural land base at the 
                        Federal, State, and local levels.
            ``(2) Reports.--
                    ``(A) Interim report.--Not later than 18 months 
                after the date of enactment of this paragraph, the 
                Commission shall submit to the President and Congress 
                an interim report that contains--
                            ``(i) the analysis by the Commission of 
                        existing data; and
                            ``(ii) any needs of the Commission for 
                        additional information.
                    ``(B) Final report.--Not later than 3 years after 
                the date of enactment of this paragraph, the Commission 
                shall submit to the President and Congress a final 
                report that contains--
                            ``(i) a detailed statement of the findings 
                        and conclusions of the Commission; and
                            ``(ii) the recommendations of the 
                        Commission for such legislation and 
                        administrative actions as the Commission 
                        considers appropriate.
    ``(d) Powers.--
            ``(1) Hearings.--The Commission may hold such hearings, 
        meet and act at such times and places, take such testimony, and 
        receive such evidence as the Commission considers advisable to 
        carry out this section.
            ``(2) Information from federal agencies.--
                    ``(A) In general.--The Commission may secure 
                directly from a Federal agency such information as the 
                Commission considers necessary to carry out this 
                section.
                    ``(B) Provision of information.--On request of the 
                Chairperson of the Commission, the head of the agency 
                shall provide the information to the Commission.
            ``(3) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as other agencies of the Federal Government.
            ``(4) Gifts.--The Commission may accept, use, and dispose 
        of gifts or donations of services or property.
    ``(e) Commission Personnel Matters.--
            ``(1) Compensation of members.--
                    ``(A) Non-federal employees.--A member of the 
                Commission who is not an officer or employee of the 
                Federal Government shall be compensated at a rate equal 
                to the daily equivalent of the annual rate of basic pay 
                prescribed for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the performance of the duties of the 
                Commission.
                    ``(B) Federal employees.--A member of the 
                Commission who is an officer or employee of the Federal 
                Government shall serve without compensation in addition 
                to the compensation received for the services of the 
                member as an officer or employee of the Federal 
                Government.
            ``(2) Travel expenses.--A member of the Commission shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for an employee of an agency 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from the home or regular place of business of 
        the member in the performance of the duties of the Commission.
            ``(3) Staff.--
                    ``(A) In general.--The Chairperson of the 
                Commission may, without regard to the civil service 
                laws (including regulations), appoint and terminate an 
                executive director and such other additional personnel 
                as are necessary to enable the Commission to perform 
                the duties of the Commission.
                    ``(B) Confirmation of executive director.--The 
                employment of an executive director shall be subject to 
                confirmation by the Commission.
                    ``(C) Compensation.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Chairperson of the 
                        Commission may fix the compensation of the 
                        executive director and other personnel without 
                        regard to the provisions of chapter 51 and 
                        subchapter III of chapter 53 of title 5, United 
                        States Code, relating to classification of 
                        positions and General Schedule pay rates.
                            ``(ii) Maximum rate of pay.--The rate of 
                        pay for the executive director and other 
                        personnel shall not exceed the rate payable for 
                        level V of the Executive Schedule under section 
                        5316 of title 5, United States Code.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $2,000,000 for each of fiscal 
years 2009 through 2011, to remain available until expended.
    ``(g) Termination of Commission.--The Commission shall terminate 90 
days after the date on which the Commission submits the report of the 
Commission under subsection (c)(2)(B).''.

      Subtitle F--Cooperative Conservation Partnership Initiative

SEC. 2051. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    (a) In General.--Subtitle D of title XII of the Food Security Act 
of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at the end the 
following:

      ``CHAPTER 6--COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE

``SEC. 1240S. COOPERATIVE CONSERVATION PARTNERSHIP INITIATIVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible conservation program.--The term `eligible 
        conservation program' means--
                    ``(A) the continuous signup portion of the 
                conservation reserve program established under 
                subchapter B of chapter 1;
                    ``(B) a special conservation reserve enhancement 
                program described in section 1234(f)(4);
                    ``(C) the environmental quality incentives program 
                established under chapter 4, including the ground and 
                surface water conservation program under section 1240I;
                    ``(D) the farmland protection program established 
                under subchapter B of chapter 2;
                    ``(E) the grassland reserve program established 
                under subchapter C of chapter 2;
                    ``(F) the wetlands reserve program established 
                under subchapter C of chapter 1; and
                    ``(G) the wildlife habitat incentive program 
                established under section 1240N.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State, including an agency of a State;
                    ``(B) a political subdivision of a State, including 
                a State-sponsored conservation district;
                    ``(C) an Indian tribe; and
                    ``(D) a nongovernmental organization or 
                association, including--
                            ``(i) a producer association;
                            ``(ii) a farmer cooperative;
                            ``(iii) an extension association; and
                            ``(iv) a conservation organization with a 
                        history of working cooperatively with producers 
                        to effectively address resource concerns 
                        related to agricultural production, as 
                        determined by the Secretary.
    ``(b) Grants and Agreements.--
            ``(1) In general.--The Secretary shall make grants and 
        enter into agreements with eligible entities to preferentially 
        enroll producers in 1 or more of eligible conservation programs 
        to carry out special projects and initiatives through which 
        multiple producers and other interested persons cooperate to 
        address specific resources of concern relating to agricultural 
        production on a local, State, or regional scale.
            ``(2) Term.--Grants and agreements described in paragraph 
        (1) shall have a term of--
                    ``(A) not less than 2 years; and
                    ``(B) not more than 5 years.
    ``(c) Applications.--
            ``(1) Competitive process.--The Secretary shall establish a 
        competitive process for considering applications for grants or 
        agreements under this section consistent with the evaluation 
        criteria described in subsection (d).
            ``(2) Program allocation.--An application for a grant or 
        agreement under this section shall include--
                    ``(A) specification of the amount of funding or 
                quantity of acres, or both, of 1 or more eligible 
                conservation programs proposed to be allocated to carry 
                out the special project or initiative; and
                    ``(B) a schedule for use of funding or acres over 
                the life of the proposed project or initiative.
    ``(d) Evaluation Criteria.--In evaluating applications for grants 
or agreements under this section, the Secretary shall consider the 
extent to which--
            ``(1) preferential enrollment in the eligible conservation 
        program specified in the application will effectively address 
        the environmental objectives established for the special 
        project or initiative; and
            ``(2) the special project or initiative covered by the 
        application--
                    ``(A) enjoys broad local and regional support from 
                producers and other interested persons, including 
                governmental and nongovernmental organizations with 
                appropriate expertise on the issues the project or 
                initiative seeks to address;
                    ``(B) includes clear environmental objectives and a 
                high likelihood of success;
                    ``(C) includes a well-defined project or initiative 
                plan that identifies sensitive areas requiring 
                treatment and prioritizes conservation systems, 
                practices, and activities needed to achieve 
                environmental objectives;
                    ``(D) promises adequate and coordinated 
                participation to achieve the objectives of the project 
                or initiative;
                    ``(E) coordinates integration of Federal, State, 
                and local efforts to make the best use of available 
                resources and maximize cost-effective investments;
                    ``(F) leverages financial and technical resources 
                from sources other than the conservation programs 
                authorized by this subtitle, including financial and 
                technical resources provided by Federal and State 
                agencies, local governments, nongovernmental 
                organizations and associations, and other private 
                sector entities;
                    ``(G) describes how all necessary technical 
                assistance will be provided to each producer 
                participating in the project or initiative, including 
                cost estimates for technical assistance and whether 
                such assistance will be provided by technical service 
                providers;
                    ``(H) describes how the administrative costs of the 
                project or initiative will be minimized;
                    ``(I) addresses 1 or more local, State, regional, 
                or national environmental priorities, with particular 
                emphasis on any priority for which there is an existing 
                State or federally-approved plan in place for 
                addressing that priority;
                    ``(J) includes a plan to evaluate progress and 
                measure results; and
                    ``(K) clearly demonstrates that enrollment of 
                producers in eligible conservation programs will be 
                consistent with the purposes and policies of each 
                eligible conservation program, as established in law 
                (including rules, regulations, and program guidance 
                promulgated by implementing agencies).
    ``(e) Priorities.--To the maximum extent practicable, consistent 
with subsections (c) and (d), the Secretary shall ensure that, for each 
fiscal year, grants are awarded and agreements are entered into under 
this section to support projects and initiatives that collectively 
address the resource concerns facing producers, ranchers, and small 
private forest landowners, specifically including projects and 
initiatives that are designed--
            ``(1) to achieve improvements in water quality in 
        watersheds impacted by agriculture, particularly by increasing 
        the participation of producers in implementing best management 
        practices in a watershed or developing environmentally and 
        economically viable alternative uses for manure and litter;
            ``(2) to achieve improvements in air quality in a 
        geographical area in which agricultural operations impact air 
        quality, especially an area that, as determined by the 
        Administrator of the Environmental Protection Agency, is a 
        nonattainment area with respect to any of the national primary 
        and secondary ambient air quality standards promulgated by the 
        Administrator under section 109 of the Clean Air Act (42 U.S.C. 
        7409);
            ``(3) to conserve water for environmental purposes, such as 
        enhanced stream flows or aquifer recharge in regions, States, 
        or local areas in which water quantity is a concern;
            ``(4) to assist in the recovery of Federal or State-listed 
        endangered species or species of special concern or to further 
        the goals and objectives of the comprehensive wildlife 
        conservation plan of a State through the cooperative efforts of 
        multiple producers;
            ``(5) to control invasive species on rangeland or other 
        agricultural land through the cooperative efforts of multiple 
        producers in a geographical area;
            ``(6) to address 1 or more specific resources of concern on 
        private, non-industrial forest land;
            ``(7) to reduce losses of pesticides to the environment by 
        engaging multiple producers in a geographic area in adoption of 
        integrated pest management practices and approaches; and
            ``(8) to keep in production farms and ranches facing 
        development pressures in agricultural use.
    ``(f) Cost Share.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall not require more than 25 percent of the cost of 
        a project or initiative supported under a grant or agreement 
        entered into under this section to be derived from non-Federal 
        sources.
            ``(2) Exception.--The Secretary may give greater priority 
        to projects or initiatives that offer to provide a higher 
        percentage of the cost of the project or initiative from non-
        Federal sources.
            ``(3) In-kind contributions.--If the Secretary establishes 
        a cost-share requirement for a project or initiative, the 
        Secretary shall allow the use of in-kind contributions to 
        fulfill that requirement.
    ``(g) Funding.--
            ``(1) In general.--Of the funds made available for each 
        fiscal year to carry out the eligible conservation programs, to 
        provide funding for grants and agreements entered into under 
        this section, the Secretary shall reserve--
                    ``(A) 5 percent for fiscal year 2008;
                    ``(B) 10 percent for fiscal year 2009;
                    ``(C) 15 percent for fiscal year 2010; and
                    ``(D) 20 percent for each of fiscal years 2011 
                through 2013.
            ``(2) Allocation to states.--Using the method of allocation 
        for States under each eligible conservation program, the 
        Secretary shall allocate to States 75 percent of the funds 
        reserved under paragraph (1) for each fiscal year to allow 
        State Conservationists of the Natural Resources Conservation 
        Service, with the advice of State technical committees, to 
        select projects and initiatives for funding under this section 
        at the State level.''.
    (b) Conforming Amendment.--Section 1243 of the Food Security Act of 
1985 (16 U.S.C. 3843) is amended by striking subsection (f).

SEC. 2052. MINIMUM BASE ALLOCATION TO STATES IN FUNDING OF CERTAIN 
              DEPARTMENT OF AGRICULTURE CONSERVATION PROGRAMS.

    Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Minimum Base Allocation to States for Certain Conservation 
Programs.--
            ``(1) In general.--In allocating funds to States to 
        implement the conservation programs under subtitle D (excluding 
        the conservation reserve program under subchapter B of chapter 
        1, the wetlands reserve program under subchapter C of chapter 
        1, the conservation security program under subchapter A of 
        chapter 2, and the grassland reserve program under subchapter C 
        of chapter 2), the Secretary shall ensure that each State 
        receives, at a minimum, $15,000,000 for each of fiscal years 
        2007 through 2013.
            ``(2) Exception.--The Secretary shall ensure that any funds 
        made available under chapter 6 of subtitle D to carry out a 
        project in or adjacent to a State are over and above the 
        minimum base allocation in paragraph (1).''.

                Subtitle G--Other Conservation Programs

SEC. 2061. WILDLIFE HABITAT INCENTIVE PROGRAM.

    Section 1240N of the Food Security Act of 1985 (16 U.S.C. 3839bb-1) 
is amended by adding at the end the following:
    ``(d) Incentive Payments for Certain Agreements and Applications.--
In a case in which the Secretary enters into an agreement or contract 
to protect or restore habitat for a federally- or State-listed 
endangered, threatened, or candidate species or for applications that 
further the goals and objectives of the comprehensive wildlife 
conservation plan of a State, the Secretary may provide incentive 
payments to landowners to protect or restore the habitat, including the 
cost of management activities needed during the term of the agreement 
or contract.''.

SEC. 2062. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) is amended by adding at the end the 
following:

``SEC. 1240Q. PILOT PROGRAM FOR COMPREHENSIVE CONSERVATION PLANNING.

    ``(a) In General.--The Secretary shall establish a pilot program to 
undertake comprehensive conservation planning to assist producers 
before the producers apply for assistance under any of the conservation 
programs authorized by this subtitle.
    ``(b) Conservation Planning Assistance.--
            ``(1) In general.--In carrying out the pilot program under 
        subsection (a), the Secretary shall establish 4 pilot projects 
        at the locations specified in paragraph (c) to assist producers 
        by making a comprehensive assessment of the resource concerns, 
        needs, and alternative solutions for the entire operations of 
        the producers, as determined by the Secretary, following the 
        procedures in the Natural Resources Conservation Service 
        conservation planning manual.
            ``(2) Requirements.--Assistance to producers under the 
        pilot program shall--
                    ``(A) be provided by the Secretary directly or 
                through third party providers certified by the 
                Secretary; and
                    ``(B) not be at the expense of the producer.
            ``(3) Provision of results.--The Secretary shall provide to 
        a producer the results of the comprehensive planning assistance 
        to enable the producer to make informed choices on the type of 
        financial assistance available through conservation programs 
        under this subtitle that would most effectively address the 
        resource needs of the operation of the producer, consistent 
        with the environmental goals for the area in which the 
        operation is located.
    ``(c) Pilot Projects.--The Secretary shall establish pilot projects 
in comprehensive conservation planning in--
            ``(1) the Chesapeake Bay watershed;
            ``(2) the Great Lakes Basin;
            ``(3) the Connecticut River Valley Watershed; and
            ``(4) the Highlands region, as defined in section 3 of the 
        Highlands Conservation Act (Public Law 108-421; 118 Stat. 
        2375).
    ``(d) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $40,000,000 for each of fiscal years 2008 through 2013.
            ``(2) Allocation.--Funds made available under paragraph (1) 
        shall be equitably allocated among each of the 4 pilot 
        projects.
    ``(e) Report.--In the second and fifth years of the pilot program, 
the Secretary shall--
            ``(1) carry out an assessment of the effectiveness of the 
        pilot program; and
            ``(2) publish and make available to the public a report 
        describing the results of the assessment.''.

SEC. 2063. PILOT PROGRAM FOR CONSERVATION RISK MANAGEMENT.

    Chapter 5 of subtitle D of title XII of the Food Security Act of 
1985 (16 U.S.C. 3839bb et seq.) (as amended by section 2062) is amended 
by adding at the end the following:

``SEC. 2040R. CONSERVATION RISK MANAGEMENT PILOT PROGRAM.

    ``(a) Findings.--Congress finds that--
            ``(1) numerous studies have identified risk as a major 
        barrier to the adoption of well-established conservation 
        measures, including best management practices;
            ``(2) studies have determined that conservation risk 
        management guarantees are among the most cost-effective means 
        of encouraging conservation adoption; and
            ``(3) the Pennsylvania Department of Agriculture has 
        successfully operated an experimental conservation risk 
        management program in conjunction with the Agricultural 
        Conservation Innovation Center of the American Farmland Trust.
    ``(b) Pilot Program.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program to support innovative conservation risk management 
        tools to encourage the implementation of conservation and best 
        management practices on land in agricultural production.
            ``(2) Conservation risk management.--
                    ``(A) In general.--In carrying out the pilot 
                program at the locations specified in subsection (c), 
                the Secretary shall offer agricultural producers 
                innovative tools to manage the business and production 
                risk of implementing conservation or best management 
                practices on some portion of the land of the 
                agricultural producers.
                    ``(B) Inclusions.--Risk management tools under 
                paragraph (1) shall include price and yield guarantees 
                that are contingent on conversion to conservation or 
                best management practices, such as reduced application 
                rates of nutrients.
    ``(c) Pilot Projects.--The Secretary shall carry out pilot projects 
under this section in--
            ``(1) the Chesapeake Bay watershed;
            ``(2) the Great Lakes Basin;
            ``(3) the Finger Lakes region of the State of New York; and
            ``(4) the Ohio River watershed.
    ``(d) Research.--
            ``(1) In general.--The Secretary shall carry out research 
        to improve and maintain the integrity of the pilot program 
        under this section.
            ``(2) Priority areas.--The Secretary shall prioritize 
        research that is intended to--
                    ``(A) study the impact of short- and long-term 
                weather changes on the performance of conservation and 
                best management practices;
                    ``(B) study the impact on yield and net returns 
                of--
                            ``(i) new fertility recommendations;
                            ``(ii) reduced tillage practices for 
                        continuous corn; and
                            ``(iii) emerging technologies and enhanced 
                        nutrient management techniques, such as 
                        variable rate applications, in-season nutrient 
                        testing, and precision farming practices;
                    ``(C) study genomic markers indicating nutrient 
                insufficiency;
                    ``(D) improve actuarial analysis and performance; 
                and
                    ``(E) study other risk management tools to improve 
                the adoption of conservation and best management 
                practices.
    ``(e) Report.--Not less frequently than at the midway point and end 
of the pilot project carried out under this section, the Secretary 
shall--
            ``(1) carry out an assessment of the effectiveness of each 
        pilot project;
            ``(2) publish, and make available to the public, reports 
        that describe the results of each assessment.
    ``(f) Funding.--
            ``(1) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this section 
        $20,000,000 for each of fiscal years 2008 through 2013.
            ``(2) Use of funds.--Of funds made available under 
        paragraph (1), the Secretary shall use--
                    ``(A) $10,000,000 to establish and maintain a 
                guarantee pool from which the Secretary may make 
                payments to producers participating in the pilot 
                program that suffered losses due to implementation of 
                conservation or best management practices;
                    ``(B) $5,000,000 to administer and deliver the 
                pilot program to producers; and
                    ``(C) $5,000,000 for research described in 
                subsection (d).''.

                 Subtitle H--Funding and Administration

SEC. 2071. FUNDING AND ADMINISTRATION.

    (a) Commodity Credit Corporation.--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 ``2013'';
            (2) in paragraph (1), by striking ```The''' and inserting 
        ``For each of fiscal years 2002 through 2013, the'';
            (3) in paragraph (2), by striking ```The''' and inserting 
        ``For each of fiscal years 2002 through 2013, the'';
            (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) $300,000,000 in each of fiscal years 2008 
                through 2013.'';
            (5) in paragraph (6)--
                    (A) in subparagraph (E), by striking ``each of 
                fiscal years 2007 through 2009; and'' and inserting 
                ``fiscal year 2007; and'' and
                    (B) by striking subparagraph (F) and inserting the 
                following:
                    ``(F) $2,000,000,000 in each of fiscal years 2008 
                through 2013.''; and
            (6) 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) $100,000,000 in fiscal year 2008;
                    ``(F) $140,000,000 in fiscal year 2009;
                    ``(G) $200,000,000 in each of fiscal years 2010 and 
                2011; and
                    ``(H) $300,000,000 in each of fiscal years 2012 and 
                2013.''.
    (b) Technical Assistance.--Section 1241(b)(1) of the Food Security 
Act of 1985 (16 U.S.C. 3841(b)(1)) is amended by adding before the 
semicolon ``, beginning on the date on which the producer submits a 
bona fide application for assistance under the program''.

SEC. 2072. DELIVERY OF TECHNICAL ASSISTANCE.

    Section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842) is 
amended--
            (1) in subsection (a), by striking paragraph (2) and 
        inserting the following:
            ``(2) at the option of the producer, through a payment, as 
        determined by the Secretary, to an approved third party or 
        technical service provider, if available.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking subparagraph (B) 
                and inserting the following:
                    ``(B) establishing the amounts and methods for 
                payments for that assistance, on the condition that 
                payment rates reflect reasonable market conditions for 
                the region in which the assistance would be 
                provided.'';
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) Competitive bidding.--The Secretary may accept bids 
        from and enter into annual or multi-year contracts and 
        agreements with approved third parties to provide technical 
        assistance to producers eligible for assistance under this 
        title.''; and
                    (C) in paragraph (4), by striking ``Secretary may 
                request'' and inserting ``Secretary shall, to the 
                maximum extent practicable, request''.

SEC. 2073. CONSERVATION APPLICATION PROCESS.

    Section 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) is 
amended by adding at the end the following:
    ``(c) Conservation Application Process.--
            ``(1) Initial application.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall establish a single, simplified application for 
                eligible entities to use in initially requesting 
                assistance under any conservation program administered 
                by the Natural Resources Conservation Service (referred 
                to in this subsection as the `initial application').
                    ``(B) Requirements.--To the maximum extent 
                practicable, the Secretary shall ensure that--
                            ``(i) a conservation program applicant is 
                        not required to provide information that is 
                        duplicative of information or resources already 
                        available to the Secretary for that applicant 
                        and the specific operation of the applicant; 
                        and
                            ``(ii) the initial application process is 
                        streamlined to minimize complexity and 
                        redundancy.
            ``(2) Review of application process.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall review the application process for each 
                conservation program administered by the Natural 
                Resources Conservation Service, including the forms and 
                processes used to receive assistance requests from 
                eligible program participants.
                    ``(B) Requirements.--In carrying out the review, 
                the Secretary shall determine what information the 
                participant is required to submit during the 
                application process, including--
                            ``(i) identification information for the 
                        applicant;
                            ``(ii) identification and location 
                        information for the land parcel or tract of 
                        concern;
                            ``(iii) a general statement of the need or 
                        resource concern of the applicant for the land 
                        parcel or tract; and
                            ``(iv) the minimum amount of other 
                        information the Secretary considers to be 
                        essential for the applicant to provide 
                        personally.
            ``(3) Revision and streamline.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Secretary 
                shall carry out a revision of the application forms and 
                processes for each conservation program administered by 
                the Natural Resources Conservation Service to enable 
                use of information technology to incorporate 
                appropriate data and information concerning the 
                conservation needs and solutions appropriate for the 
                land area identified by the applicant.
                    ``(B) Goal.--The goal of the revision shall be to 
                streamline the application process to minimize the 
                burden placed on applicants.
            ``(4) Conservation program application.--
                    ``(A) In general.--Once the needs of an applicant 
                have been adequately assessed by the Secretary, or a 
                third party provider under section 1242, based on the 
                initial application, in order to determine the 1 or 
                more programs under this title that best match the 
                needs of the applicant, with the approval of the 
                applicant, the Secretary may convert the initial 
                application into the specific application for 
                assistance for the relevant conservation program.
                    ``(B) Secretarial burden.--To the maximum extent 
                practicable, the Secretary shall--
                            ``(i) complete the specific application for 
                        conservation program assistance for each 
                        applicant; and
                            ``(ii) request only that specific further 
                        information from the applicant that is not 
                        already available to the Secretary.
            ``(5) Implementation and notification.--Not later than 1 
        year after the date of enactment of this subsection, 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 written notification that 
        the Secretary has fulfilled the requirements of this 
        subsection.''.

SEC. 2074. PLANNING FOR AGRICULTURE GRANTS.

    Subtitle F of title XII of the Food Security Act of 1985 (16 U.S.C. 
2005a et seq.) is amended by adding at the end the following:

``SEC. 1257. GRANTS TO PROMOTE PLANNING FOR AGRICULTURE.

    ``(a) In General.--To encourage State and local efforts to retain 
farmland and promote food security, the Secretary shall provide 
competitive grants to State and local units of government to carry out 
planning projects for the purposes described in subsection (b)(1).
    ``(b) Project Requirements.--
            ``(1) In general.--A project eligible to receive planning 
        assistance under this section shall be a project designed to 
        support--
                    ``(A) farm and ranchland protection and transition;
                    ``(B) agricultural economic development; or
                    ``(C) local and regional food processing and other 
                agricultural infrastructure.
            ``(2) Priority funding.--A project shall be eligible to 
        receive priority for funding under this section if the 
        project--
                    ``(A) addresses more than 1 of the purposes 
                described in paragraph (1); or
                    ``(B) coordinates activities pursuant to 1 or more 
                of the purposes described in paragraph (1) among 
                different levels of government.
    ``(c) Grants.--
            ``(1) In general.--From amounts made available to carry out 
        this section, the Secretary shall make grants to State and 
        local units of government to assist the States and local units 
        of government in developing plans that assess needs and 
        identify implementation strategies for furthering 1 or more of 
        the purposes described in subsection (b)(1).
            ``(2) Maximum amount.--The maximum amount of a grant 
        provided under this section shall be $100,000.
            ``(3) Matching funds requirement.--The Federal share of any 
        project that receives funding under this section may not exceed 
        50 percent of the total cost of the project.
            ``(4) Term.--The term of a grant made under this section 
        may not exceed 2 years.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2008 through 2013, to remain available until expended.''.

SEC. 2075. EXCLUSION OF PAYMENTS UNDER DEPARTMENT OF AGRICULTURE 
              CONSERVATION PROGRAMS FROM ADJUSTED GROSS INCOME 
              LIMITATION.

    (a) Exclusion.--Section 1001D(b)(2) of the Food Security Act of 
1985 (7 U.S.C. 1308-3a(b)(2)) is amended by striking subparagraph (C).
    (b) Effective Period.--Section 1001D of the Food Security Act of 
1985 (7 U.S.C. 1308-3a) is amended by striking subsection (e).

            Subtitle I--Conservation Loan Guarantee Program

SEC. 2081. CONSERVATION LOAN GUARANTEE PROGRAM.

    Subtitle A of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 304 (7 U.S.C. 1924) the following:

``SEC. 304A. CONSERVATION LOAN GUARANTEE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Eligible borrower.--The term `eligible borrower' 
        means a farmer, rancher, farm cooperative, private domestic 
        corporation, partnership, joint operation, trust, or limited 
        liability company, that is engaged primarily and directly in 
        agricultural production in the United States.
            ``(2) Qualified conservation loan.--The term `qualified 
        conservation loan' means a loan described in subsection (c).
            ``(3) Qualified conservation project.--The term `eligible 
        conservation project' means, with respect to an eligible 
        borrower, conservation measures included in a conservation plan 
        for a farming or ranching operation of the borrower, 
        including--
                    ``(A) the installation of conservation structures, 
                including terraces, sod waterways, permanently-
                vegetated stream borders and filter strips, tree or 
                grass windbreaks, shelter belts, and living snow 
                fences, if all plantings consist of vegetation 
                appropriate to the locale;
                    ``(B) the establishment of forest cover for 
                sustained yield timber management, erosion control, or 
                shelter belt purposes, if the forest cover is 
                appropriate to the locale;
                    ``(C) the installation of water conservation 
                measures;
                    ``(D) the installation of waste management systems;
                    ``(E) the establishment or improvement of permanent 
                pasture;
                    ``(F) the payment of costs of complying with 
                section 1212 of the Food Security Act of 1985 (16 
                U.S.C. 3812);
                    ``(G) other purposes consistent with the 
                conservation plan;
                    ``(H) any conservation project or practice, as 
                described by technical guides and handbooks issued by 
                the Natural Resources Conservation Service; and
                    ``(I) emerging conservation practices, techniques, 
                or technologies, that are approved by the Secretary.
    ``(b) Program.--The Secretary may provide a loan guarantee, an 
interest subsidy, or both, to enable an eligible borrower to obtain a 
qualified conservation loan.
    ``(c) Qualified Conservation Loan.--A qualified conservation loan 
is a loan--
            ``(1) the proceeds of which are required to be used to 
        cover the costs to the borrower of carrying out a qualified 
        conservation project;
            ``(2) the principal amount of which is not more than 
        $1,000,000;
            ``(3) the repayment period of which does not exceed 10 
        years;
            ``(4) for which the lender is prohibited from--
                    ``(A) requiring any part of the loan to be repaid 
                in the 1-year period that begins with the date of the 
                closing of the loan; and
                    ``(B) forgiving any part of the loan; and
            ``(5) for which the total of all processing fees charged 
        with respect to the loan does not exceed such amount as shall 
        be prescribed by the Secretary.
    ``(d) Limitations Applicable to Loan Guarantees.--
            ``(1) Limitation on amount of guarantee.--The portion of a 
        qualified conservation loan that the Secretary may guarantee 
        under this section shall be not less than 80 percent, nor more 
        than 90 percent, of the principal amount of the qualified 
        conservation loan.
            ``(2) Limitation on total amount outstanding.--The 
        aggregate principal amount of outstanding qualified 
        conservation loans guaranteed by the Secretary under this 
        section shall not exceed $1,000,000,000.
    ``(e) Limitation on Amount of Interest Subsidy.--
            ``(1) In general.--Subject to paragraph (2), the interest 
        subsidy that the Secretary may provide under this section with 
        respect to a qualified conservation loan shall result in a 
        reduction of the interest rate agreed to by the borrower and 
        the lender by--
                    ``(A) 500 basis points, if the principal amount of 
                the qualified conservation loan is less than $100,000;
                    ``(B) 400 basis points, if the principal amount of 
                the qualified conservation loan is--
                            ``(i) at least $100,000; and
                            ``(ii) less than $500,000; and
                    ``(C) 300 basis points, in any other case.
            ``(2) Limitation.--A reduction described in paragraph (1) 
        may not reduce the interest rate to less than 0.
    ``(f) Administrative Provisions.--
            ``(1) Authority to collect processing fee.--The Secretary 
        may assess a fee to cover the cost of processing an application 
        under this section equal to not more than 1 percent of the 
        principal amount of the qualified conservation loan sought by 
        the applicant, as described in the application.
            ``(2) Provision of financial information.--An applicant for 
        a loan guarantee or interest subsidy under this section shall 
        provide the Secretary with such financial information as may be 
        required by the Secretary, in the manner generally required by 
        commercial agricultural lenders in the geographical area in 
        which the farming or ranching operation of the applicant is 
        located.
            ``(3) Appraisal.--The Secretary may require that an 
        appraisal made in connection with an application for a loan 
        guarantee or interest subsidy under this section be conducted 
        by a specialized appraiser that uses standards similar to the 
        standards used for similar purposes in the private sector, as 
        determined by the Secretary.
            ``(4) Approval of application.--The Secretary shall not 
        approve an application submitted pursuant to this section, 
        unless the Natural Resources Conservation Service has 
        determined that--
                    ``(A) the loan sought by the applicant, as 
                described in the application, would be a qualified 
                conservation loan; and
                    ``(B) the project for which the qualified 
                conservation loan is sought is likely to result in a 
                net benefit to the environment.
            ``(5) Deadline for decision on application.--To the maximum 
        extent practicable, not later than 45 business days after the 
        receipt of an application for assistance under this section, 
        the Secretary shall submit to the applicant the decision of the 
        Secretary to approve or disapprove the application.
            ``(6) Equitable distribution of loan guarantees and 
        interest subsidies.--To the maximum extent practicable, the 
        Secretary shall ensure that loan guarantees and interest 
        subsidies under this section are equitably distributed among 
        agricultural producers according to the scale of the operations 
        of the producers that submit applications in any year.
    ``(g) Relationship With Other Conservation Programs.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        application for, and the receipt of, a loan guarantee or an 
        interest subsidy under this section does not effect the 
        eligibility of the recipient for assistance under--
                    ``(A) title XII of the Food Security Act of 1985 
                (16 U.S.C. 3801 et seq.); or
                    ``(B) the Watershed Protection and Flood Prevention 
                Act (16 U.S.C. 1001 et seq.).
            ``(2) Exception.--If an applicant receives financial 
        assistance under the programs specified in paragraph (1), the 
        loan principal shall be limited to the share of the applicant 
        of the total project cost.
    ``(h) Appropriations.--For each of fiscal years 2008 through 2013, 
the Secretary shall use such funds of the Commodity Credit Corporation 
as are necessary to carry out this section.''.

                            TITLE III--TRADE

SEC. 3001. MARKET ACCESS PROGRAM.

    Section 211(c)(1)(A) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641(c)(1)(A)) is amended--
            (1) by striking ``and'' after ``fiscal year 2005,''; and
            (2) by inserting ``and $350,000,000 for each of fiscal 
        years 2008 through 2013,'' after ``2007, .''

SEC. 3002. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    Section 3205 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 5680) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Flexibility.--In providing technical assistance under the 
program, the Secretary shall provide for extensions on a case-by-case 
basis, on the approval of the Secretary, acting through the 
Administrator of the Foreign Agricultural Service, of time frames 
provided in regulations in connection with the technical assistance.
    ``(e) Funding.--
            ``(1) In general.--To carry out the program, the Secretary 
        shall make available funds of, or an equal value of commodities 
        owned by, the Commodity Credit Corporation, in the amount of--
                    ``(A) $4,000,000 for fiscal year 2008;
                    ``(B) $6,000,000 for fiscal year 2009;
                    ``(C) $8,000,000 for fiscal year 2010; and
                    ``(D) $10,000,000 for each of fiscal years 2011 
                through 2013.
            ``(2) Carryover of funding.--Funds made available to carry 
        out the program under paragraph (1) or under section 201 of the 
        Specialty Crops Competitiveness Act of 2004 (Public Law 108-
        465; 118 Stat. 3884) shall remain available until expended.''.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

SEC. 4001. DEFINITION OF THRIFTY FOOD PLAN.

    Section 3(o)(4) of the Food Stamp Act of 1977 (7 U.S.C. 2012(o)(4)) 
is amended--
            (1) by striking ``except that on October 1, 1996,'' and 
        inserting ``except that''; and
            (2) by striking ``in effect on September'' and all that 
        follows before the period and inserting ``in effect during the 
        immediately preceding fiscal year''.

SEC. 4002. 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. 4003. DEDUCTIONS FROM INCOME.

    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) $156, $267, $220, and $137, 
                                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) $313; 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. 4004. DEPENDENT CARE DEDUCTION.

    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. 4005. ALLOWABLE FINANCIAL RESOURCES.

    Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 2014(g)) is 
amended--
            (1) by striking ``(g)(1) The Secretary'' and inserting the 
        following:
    ``(g) Allowable Financial Resources.--
            ``(1) Total amount.--
                    ``(A) In general.--The Secretary''.
            (2) in subparagraph (A) (as designated by paragraph (1))--
                    (A) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$2,000''; and
                    (B) by inserting ``(as adjusted in accordance with 
                subparagraph (B))'' after ``$3,000''; and
            (3) in paragraph (1), by adding at the end the following:
                    ``(B) Adjustment for inflation.--
                            ``(i) In general.--Beginning on October 1, 
                        2007, and each October 1 thereafter, the 
                        amounts in subparagraph (A) shall be adjusted 
                        to the nearest $100 increment to reflect 
                        changes for the 12-month period ending the 
                        preceding June in the Consumer Price Index for 
                        All Urban Consumers published by the Bureau of 
                        Labor Statistics of the Department of Labor.
                            ``(ii) Requirement.--Each adjustment under 
                        clause (i) shall be based on the unrounded 
                        amount for the prior 12-month period.''.

SEC. 4006. 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. 4007. 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. 4008. WORK REQUIREMENT.

    (a) Repeal.--Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 
2015) is amended by striking subsection (o).
    (b) 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)--
                    (A) in clause (vi)(II), by striking ``and'' at the 
                end;
                    (B) in clause (vii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
                            ``(viii) for each of fiscal years 2008 
                        through 2012, $110,000,000'';
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``; and'' and 
                inserting a period;
                    (B) by striking clause (ii); and
                    (C) by striking ``that--'' and all that follows 
                through ``is determined'' and inserting ``that is 
                determined''; and
            (3) by striking subparagraph (E).
    (c) Conforming Amendments.--
            (1) Section 7(j)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
        2016(j)(1)) is amended by striking ``section 6(o)(2) of this 
        Act or''.
            (2) Section 501(b)(2) of the Workforce Investment Act of 
        1998 (20 U.S.C. 9271(b)(2)) is amended--
                    (A) by striking subparagraph (F); and
                    (B) by redesignating subparagraphs (G) through (O) 
                as subparagraphs (F) through (N), respectively.
            (3) Section 112(b)(8)(A) of the Workforce Investment Act of 
        1998 (29 U.S.C. 2822(b)(8)(A)) is amended--
                    (A) by striking clause (iv); and
                    (B) by redesignating clauses (v) through (x) as 
                clauses (iv) through (ix), respectively.
            (4) Section 121(b)(2)(B) of the Workforce Investment Act of 
        1998 (29 U.S.C. 2841(b)(2)(B)) is amended--
                    (A) by striking clause (iii); and
                    (B) by redesignating clauses (iv) and (v) as 
                clauses (iii) and (iv), respectively.

SEC. 4009. FAIRNESS FOR LEGAL IMMIGRANTS.

    (a) In General.--Notwithstanding sections 401(a), 402(a), and 
403(a) of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1611(a), 1612(a), 1613(a)), and 
section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015), an individual 
who is lawfully residing in the United States shall not be ineligible 
for the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.) on the basis of--
            (1) the immigration status of the individual; or
            (2) the date on which the individual entered the United 
        States.
    (b) Clarifying Eligibility.--Section 421(d)(3) of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1631(d)(3)) is amended by striking ``to the extent that a 
qualified alien is eligible under section 1612(a)(2)(J) of this title'' 
and inserting ``to the extent that a child is a member of a household 
receiving food stamps under that Act''.
    (c) Ensuring Proper Screening.--Section 11(e)(2)(B) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(e)(2)(B)) is amended--
            (1) by redesignating clauses (vi) and (vii) as clauses 
        (vii) and (viii), respectively; and
            (2) by inserting after clause (v) the following:
                            ``(vi) shall provide a method for 
                        implementing section 421 of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996 (8 U.S.C. 1631) that 
                        does not require any unnecessary information 
                        from individuals who may be exempt from that 
                        section;''.
    (d) Simplified Administrative Reporting Requirement.--Section 11(a) 
of the Food Stamp Act of 1977 (7 U.S.C. 2020(a)) is amended by adding 
at the end the following: ``Notwithstanding subsection (e)(2) of 
section 421 of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (8 U.S.C. 1631(e)(2)), the administrative 
reporting requirement under that subsection shall be satisfied by the 
submission of an aggregate report on the numbers of exceptions granted 
under that subsection each year.''.

SEC. 4010. 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 ``$10 per month'' and inserting ``20 
percent of the thrifty food plan for a household containing 1 member, 
as determined by the Secretary under section 3(o)''.

SEC. 4011. ACCOUNTABILITY FOR PAPERWORK REQUIREMENTS.

    Section 11(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)(3)) is amended by inserting ``(except that no application shall 
be denied for lack of verification unless the State agency determines 
that the household refused to comply with a request for verification 
made by an individual described in paragraph (6)(B))'' after ``of an 
application''.

SEC. 4012. ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL.

    (a) Preventing Conflicts of Interest.--Section 16(a) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended in the last sentence by 
inserting ``directly or indirectly'' before ``receive or benefit''.
    (b) Limitation on Contracting.--Section 16(a) of the Food Stamp Act 
of 1977 (7 U.S.C. 2025(a)) is amended by adding at the end the 
following: ``The Secretary shall not make any payments for 
administrative costs under this Act relating to a contract that a State 
agency concluded in violation of this Act or regulations promulgated by 
the Secretary (regardless of whether the Secretary may approve the 
contract subsequent to the letting of the contract) or for any 
personnel costs to carry out functions specified under section 11(e)(3) 
except by individuals described in section 11(e)(6)(B).''.
    (c) Prohibition.--Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 
2016) is amended by adding at the end the following:
    ``(l) Prohibition.--No State agency may establish any requirement 
or condition on the receipt of food stamp benefits by a household other 
than the requirements and conditions specified in this section.''.

SEC. 4013. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
              PROGRAM ON INDIAN RESERVATIONS.

    (a) Grants for Simple Application and Eligibility Determination 
Systems and Improved Access to Benefits.--Section 11(t)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2020(t)(1)) is amended by striking ``2007'' 
and inserting ``2013''.
    (b) 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 ``2013''; and
            (2) in subparagraph (E)(i), by striking ``2007'' and 
        inserting ``2013''.
    (c) 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 ``2013''; and
            (2) in subparagraph (B)(ii) by striking ``2007'' and 
        inserting ``2013''.
    (d) 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 ``2013''.
    (e) 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 ``2013''.
    (f) 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 
``2013''.

SEC. 4014. 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 $30,000,000 for 
        each of fiscal years 2008 through 2012 to make grants under 
        this section, adjusted to reflect changes for the 12-month 
        period ending 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.'';
            (2) in subsection (d)--
                    (A) in paragraph (3), by striking ``or'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(5) serve special project needs in areas of--
                    ``(A) transportation and processing for expanding 
                institutional and emergency food service demand for 
                local food;
                    ``(B) retail access to healthy foods in underserved 
                markets;
                    ``(C) integration of urban and metro-area food 
                production in food projects; and
                    ``(D) technical assistance for youth, socially 
                disadvantaged individuals, and limited resource 
                groups.'';
            (3) in subsection (e)(1), by striking ``50'' and inserting 
        ``75'';
            (4) in subsection (f)(2), by striking ``3'' and inserting 
        ``5''; and
            (5) in subsection (h)(4)--
                    (A) by striking ``2007'' and inserting ``2013''; 
                and
                    (B) by striking ``$200,000'' and inserting 
                ``$500,000''.

SEC. 4015. AVAILABILITY OF 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.--Subject to paragraph (2), for each of 
        fiscal years 2008 through 2013''; and
            (2) by striking ``$140,000,000 of''; and
            (3) by inserting at the end the following:
            ``(2) Amounts.--The Secretary shall use to carry out this 
        subsection--
                    ``(A) for fiscal year 2008, $250,000,000; and
                    ``(B) for each of fiscal years 2009 through 2013, 
                the dollar amount of commodities available in 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. 4016. STUDY ON COMPARABLE ACCESS TO FOOD STAMP BENEFITS FOR PUERTO 
              RICO.

    (a) In General.--The Secretary shall carry out a study of the 
feasibility and effects of including the Commonwealth of Puerto Rico in 
the definition of the term ``State'' under section 3 of the Food Stamp 
Act of 1977 (7 U.S.C. 2012), in lieu of providing block grants to the 
Commonwealth under section 19 of that Act (7 U.S.C. 2028).
    (b) Inclusions.--The study shall include--
            (1) an assessment of the administrative, financial 
        management, and other changes that would be necessary for the 
        Commonwealth to establish a comparable food stamp program, 
        including compliance with appropriate program rules under the 
        Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), such as--
                    (A) benefit levels under section 3(o) of that Act 
                (7 U.S.C. 3012(o));
                    (B) income eligibility standards under section 5(c) 
                of that Act (7 U.S.C. 2014(c)); and
                    (C) deduction levels under section 5(e) of that Act 
                (7 U.S.C. 2014(e));
            (2) an estimate of the impact on Federal and Commonwealth 
        benefit and administrative costs;
            (3) an estimate of the impact of the food stamp program on 
        hunger and food insecurity among low-income Puerto Ricans; and
            (4) such other matters as the Secretary considers to be 
        appropriate.
    (c) 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 the 
results of the study conducted under this section.

                       Subtitle B--Miscellaneous

SEC. 4021. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    Section 4403(f) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 3171 note; Public Law 107-171) is amended by striking 
``2007'' and inserting ``2013''.

                       TITLE V--RURAL DEVELOPMENT

SEC. 5001. FARM AND RANCH PROFITABILITY GRANT PROGRAM.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) is amended by adding at the end the following:

        ``Subtitle J--Farm and Ranch Profitability Grant Program

``SEC. 386A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Producer.--The term `producer' has the meaning given 
        the term by the Secretary for the purposes of the Census of 
        Agriculture.
            ``(2) State.--The term `State' means each of the several 
        States of the United States.
            ``(3) State department of agriculture.--The term `State 
        department of agriculture' means the agency, commission, or 
        department of a State government responsible for agriculture in 
        the State.

``SEC. 386B. AVAILABILITY AND PURPOSES OF GRANTS.

    ``(a) In General.--For each of fiscal years 2008 through 2013, the 
Secretary shall carry out a program to make grants to eligible States 
through State departments of agriculture.
    ``(b) Eligibility.--To be eligible to receive a grant under this 
subtitle, a State shall--
            ``(1) have a 3-year strategic plan approved by the 
        Secretary in accordance with section 386D(a); and
            ``(2) submit to the Secretary an annual report, including 
        an annual work plan, in accordance with section 386D(b).
    ``(c) Purposes of Grant Program.--The purposes of the grant program 
under this subtitle are--
            ``(1) to improve the profitability of farms and ranches in 
        the United States;
            ``(2) to increase self-employment opportunities for farmers 
        and ranchers;
            ``(3) to revitalize local and regional food systems;
            ``(4) to increase wealth and asset-building in rural 
        communities; and
            ``(5) to encourage entrepreneurship and innovation in 
        farming and ranching by funding State, local, and farm-level 
        programs and projects that address--
                    ``(A) farm viability;
                    ``(B) market development and promotion;
                    ``(C) product development, differentiation, and 
                promotion;
                    ``(D) consumer education;
                    ``(E) business planning;
                    ``(F) alternate ownership models and structures;
                    ``(G) local and regional infrastructure needs; or
                    ``(H) local and regional food security needs.
    ``(d) Maintenance of Effort.--The State shall provide assurances to 
the Secretary in the annual report required under section 386D(b) that 
funds provided to the State under this subtitle have been used only to 
supplement, not to supplant, the amount of Federal, State, and local 
funds otherwise expended in the State for the permitted uses described 
in section 386C.
    ``(e) Administrative and Planning Expenses.--Not more than 5 
percent of funds provided annually under this subtitle may be used by 
the State for administrative and planning expenses.

``SEC. 386C. PERMITTED USES OF GRANT FUNDS.

    ``(a) In General.--In accordance with the purposes described in 
section 386B(c), as determined by the Secretary, a State department of 
agriculture may use grant funds received under this subtitle--
            ``(1) to supplement funding for State programs, projects, 
        and initiatives; and
            ``(2) to provide grants to--
                    ``(A) producers;
                    ``(B) local and regional government entities;
                    ``(C) agricultural cooperatives;
                    ``(D) agricultural processors;
                    ``(E) nonprofit organizations; and
                    ``(F) research institutions.
    ``(b) Specific Permitted Uses of Grant Funds.--A State may use 
grant funds received under this subtitle--
            ``(1) to provide marketing or business development 
        assistance to producers;
            ``(2) to promote product development or differentiation;
            ``(3) to encourage direct-to-consumer market opportunities, 
        including--
                    ``(A) farmers markets;
                    ``(B) buy-local campaigns;
                    ``(C) agritourism; and
                    ``(D) on-farm retail market opportunities;
            ``(4) to rebuild local and regional food systems through 
        planning or development of agricultural processing facilities 
        or other infrastructure that enhances or adds value to 
        agricultural products grown in the State;
            ``(5) to match State funding for--
                    ``(A) farm viability programs;
                    ``(B) agriculture innovation centers; or
                    ``(C) recreational walk-in or access programs;
            ``(6) to encourage profitable business models and develop 
        alternative ownership structures and new business succession 
        models;
            ``(7) to increase consumer awareness of agricultural 
        products produced and services provided in the State, including 
        advertising and promotional campaigns;
            ``(8) to provide direct grants to producers for farm 
        infrastructure or equipment needs that--
                    ``(A) add value to a commodity produced; or
                    ``(B) will allow for the transition to a new 
                agricultural enterprise;
            ``(9) to provide technical, legal, and other support to 
        beginning or socially disadvantaged farmers;
            ``(10) to assist county and local governments in planning 
        for agriculture, including the land use and infrastructure 
        needs of local producers;
            ``(11) to address food safety issues, including training; 
        and
            ``(12) to enhance the competitiveness of specialty crops, 
        including applied research.
    ``(c) Prohibited Use of Grant Funds.--A State may not use grant 
funds received under this section to directly subsidize the price of an 
agricultural commodity in the market.
    ``(d) Maximum Grant Amount.--A State may not award more than 33 
percent of the funds received by the State under this subtitle in any 
fiscal year to any single project, proposal, or program.

``SEC. 386D. STRATEGIC PLANS AND ANNUAL REPORTS.

    ``(a) Strategic Plan.--
            ``(1) In general.--To be eligible to receive a grant under 
        this subtitle, a State shall have a 3-year strategic plan that 
        has been--
                    ``(A) reviewed by the Federal Food and Agricultural 
                Council of the State in accordance with subsection 
                (c)(1); and
                    ``(B) approved by the Secretary.
            ``(2) Submission.--A State shall submit to the Secretary 
        the strategic plan described in this subsection during the 
        first and fourth fiscal years in which the State receives 
        grants under this section.
            ``(3) Contents.--A strategic plan required under this 
        subsection shall--
                    ``(A) reflect the diversity of the agricultural 
                sector of the State, including the production, 
                processing, marketing, and distribution of the food and 
                agricultural products of the State; and
                    ``(B) include--
                            ``(i) the vision of the State for meeting 
                        the purposes described in section 386B(c);
                            ``(ii) the 3-year plan of the State for 
                        achieving that vision, including goals, 
                        objectives, measurable outcomes, and yearly 
                        milestones toward completion;
                            ``(iii) an explanation of how the plan 
                        reflects the diversity of the agricultural 
                        sector of the State;
                            ``(iv) the method by which the State has 
                        and will continue to solicit the input of the 
                        agricultural sector in developing the plan, 
                        setting grant priorities, and selecting 
                        project;
                            ``(v) a year-by-year work plan, including--
                                    ``(I) a description of the general 
                                project areas that will be funded;
                                    ``(II) the percent of funding 
                                anticipated for each project area; and
                                    ``(III) the expected project 
                                selection process for each fiscal year; 
                                and
                            ``(vi) such other information as the 
                        Secretary may require by regulation.
    ``(b) Annual Reports.--
            ``(1) In general.--As a condition of receiving a grant 
        under this subtitle, not later than 90 days after the end of 
        each fiscal year in which a State receives grant funds under 
        this subtitle, the State shall submit to the Secretary a report 
        of the activities the State carried out using the grant funds 
        during the preceding fiscal year.
            ``(2) Review.--Each annual report described in paragraph 
        (1) shall be reviewed by the Federal Food and Agricultural 
        Council of the State in accordance with subsection (c)(2).
            ``(3) Contents.--Each annual report shall include--
                    ``(A) an accounting of projects funded, non-Federal 
                funds leveraged, mileposts completed, and outcomes 
                achieved during the preceding fiscal year;
                    ``(B) an accounting of any unobligated funds 
                remaining;
                    ``(C) an updated work plan for the current fiscal 
                year; and
                    ``(D) such other information as the Secretary may 
                require by regulation.
    ``(c) Review of Strategic Plans and Annual Reports.--
            ``(1) Strategic plans.--
                    ``(A) In general.--In reviewing a strategic plan 
                submitted under subsection (a), the Federal Food and 
                Agricultural Council of a State shall ensure that the 
                plan, to the maximum extent practicable --
                            ``(i) reflects the diversity of the 
                        agricultural sector of the State; and
                            ``(ii) will carry out the purposes 
                        described in section 386B(c).
                    ``(B) Submission to secretary.--Not later than 45 
                days after receiving a strategic plan submitted under 
                subsection (a), a Federal Food and Agricultural Council 
                shall submit to the Secretary--
                            ``(i) the strategic plan; and
                            ``(ii) any recommendations of the Council 
                        regarding the strategic plan.
                    ``(C) Revisions.--The Secretary may--
                            ``(i) request that a State make changes to 
                        a strategic plan; or
                            ``(ii) after giving the State an 
                        opportunity to resubmit a revised strategic 
                        plan, reject a strategic plan.
            ``(2) Annual reports.--
                    ``(A) In general.--Not later than 45 days after 
                receiving an annual report submitted under subsection 
                (b), the Federal Food and Agricultural Council of a 
                State shall submit to the Secretary--
                            ``(i) the annual report; and
                            ``(ii) any recommendations of the Council 
                        regarding the updated work plan.
                    ``(B) Revisions.--The Secretary may request that a 
                State make changes to an updated work plan in order to 
                more fully reflect--
                            ``(i) the priorities of the strategic plan 
                        of the State; or
                            ``(ii) the purposes described in section 
                        386B(c).
    ``(d) Effect of Noncompliance.--The Secretary may disqualify, for 1 
or more years, a State from receipt of future grants under this 
subtitle, if the Secretary, after reasonable notice to a State, finds 
that the State--
            ``(1) has failed to comply with the requirements of this 
        section or section 386B(d);
            ``(2) is not substantially meeting the outcomes and 
        milestones described in the strategic plan or annual work plans 
        of the State;
            ``(3) is not meeting the purposes described in section 
        386B(c); or
            ``(4) is not funding projects reflective of the diversity 
        of the agricultural sector of the State.
    ``(e) Audit Requirements.--
            ``(1) In general.--A State that receives a grant under this 
        subtitle shall submit to the Secretary, through the 
        Agricultural Marketing Service, an annual audit.
            ``(2) Limitation.--A State may use not more than 2 percent 
        of the total funds awarded to the State under this subtitle to 
        carry out the audit.

``SEC. 386E. ALLOCATIONS TO STATES.

    ``(a) Minimum Base Grant Amount.--
            ``(1) In general.--Of funds made available each year to 
        carry out this subtitle, 15 percent shall be allocated equally 
        among States as a minimum base grant amount.
            ``(2) Minimum amount.--Subject to the availability of funds 
        made available to carry out this subtitle, the minimum base 
        grant amount under paragraph (1) shall be not less than 
        $3,000,000 per eligible State per fiscal year.
    ``(b) Bonus Payments.--
            ``(1) In general.--In fiscal year 2009, and each subsequent 
        fiscal year, of funds made available to carry out this 
        subtitle, 15 percent shall be allocated to States as bonus 
        payments.
            ``(2) Allocation.--Bonus payments described in paragraph 
        (1) shall be allocated equally among each State that provides a 
        cost share of non-Federal funds to match at least 30 percent of 
        the Federal funding received by the State under this subtitle 
        for the preceding fiscal year.
    ``(c) Remaining Funds.--The amount remaining after allocation and 
distribution of funds under subsections (a) and (b) shall be allocated 
among eligible States in the proportion that--
            ``(1) the market value of agricultural sales and the number 
        of farms in a State during the preceding fiscal year, expressed 
        as a composite index, weighted equally; bears to
            ``(2) the market value of agricultural sales and the number 
        of farms in all States receiving grants under this subtitle in 
        that fiscal year, expressed as a composite index, weighted 
        equally.
    ``(d) Unobligated Funds.--Any funds received by a State under this 
subtitle and not obligated by the State within 2 fiscal years shall be 
remitted to the Secretary for redistribution in the subsequent fiscal 
year in accordance with this section.

``SEC. 386F. FUNDING.

    ``(a) In General.--On October 1, 2007, and on each October 1 
thereafter through October 1, 2012, out of any funds in the Treasury 
not otherwise appropriated, the Secretary of the Treasury shall 
transfer to the Secretary to carry out this subtitle $1,000,000,000, to 
remain available until expended.
    ``(b) Receipt and Acceptance.--The Secretary shall be entitled to 
receive, shall accept, and shall use to carry out this section the 
funds transferred under subsection (a), without further 
appropriation.''.

SEC. 5002. DEFINITION OF RURAL AND RURAL AREA.

    Section 343(a)(13) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(13)) is amended by adding at the end the 
following:
                    ``(F) Exemption.--For the purpose of eligibility 
                for Department of Agriculture-Rural Development 
                Business and Cooperative Programs, subparagraph (A) 
                shall not apply to agricultural producers or to 
                entities that are substantially owned and operated by 
                agricultural producers.''.

                           TITLE VI--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 6001. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    (a) Findings.--Congress finds that--
            (1) the Forest Service recently projected that, by 2030, 
        approximately 44,000,000 acres of privately owned forest land 
        will be developed throughout the United States, including many 
        of the important parcels of privately owned forest land that 
        are located in, or adjacent to, communities of the United 
        States;
            (2) the threat of development of those parcels of privately 
        owned forest land creates an urgent need for local governmental 
        entities to possess sufficient financial resources to purchase 
        the parcels of privately owned forest land that are most 
        important to the communities of the United States as those 
        parcels of privately owned forest land are offered for sale;
            (3) forest parcelization has led to a rapidly expanding 
        base of private owners of forest land that includes many 
        individuals who--
                    (A) do not possess any experience in forest 
                stewardship; and
                    (B) could learn proper forest management techniques 
                through relevant demonstration sites, for which many 
                communities of the United States use land owned by the 
                local governmental entities of those communities;
            (4) in rapidly-growing communities of all sizes throughout 
        the United States, remaining parcels of privately owned forest 
        land play an essential role in protecting public water 
        supplies, leading many local governmental entities to purchase 
        parcels of privately owned forest land for ownership;
            (5) rising rates of obesity and other public health 
        problems relating to the inactivity of the citizens of the 
        United States have been shown to be ameliorated by improving 
        public access to safe and pleasing areas for outdoor 
        recreation, leading many local governmental entities to 
        purchase recreation land for ownership;
            (6) throughout the United States, many communities of 
        diverse types and sizes derive significant financial benefits 
        from managing parcels of privately owned forest land owned by 
        the local governmental entities of those communities because 
        those parcels--
                    (A) provide a significant source of local revenue 
                to the communities; and
                    (B) contribute to the health of the forest products 
                economy of the communities and the United States;
            (7) public access to parcels of privately owned forest land 
        for hunting, fishing, and trapping has declined and, as a 
        result, participation in those activities has also declined as 
        parcels of privately owned forest land and watersheds 
        throughout the United States have become further parcelized 
        among a growing base of private owners who often prohibit 
        public use of the land, leading many local governmental 
        entities to purchase parcels of privately owned forest land to 
        ensure that individuals who participate in sports have access 
        to those parcels; and
            (8) there is a national interest in providing financial 
        assistance to local governmental entities to purchase important 
        and closely located parcels of privately owned forest land to 
        maintain the diverse benefits provided by those parcels to 
        communities served by those local governmental entities.
    (b) Community Forest and Open Space Conservation Program.--The 
Cooperative Forestry Assistance Act of 1978 is amended by inserting 
after section 9 (16 U.S.C. 2105) the following:

``SEC. 9A. COMMUNITY FOREST AND OPEN SPACE CONSERVATION PROGRAM.

    ``(a) Establishment.--The Secretary, in cooperation with 
appropriate State and local governments, shall establish a program to 
be known as the `Community Forest and Open Space Conservation Program' 
(referred to in this section as the `program') to enable local 
governmental entities of participating States to acquire parcels of 
privately owned forest land that are--
            ``(1) economically, culturally, and environmentally 
        important to the communities of the local governmental 
        entities; and
            ``(2) threatened by conversion to nonforest uses.
    ``(b) Implementation.--
            ``(1) Participating states.--
                    ``(A) Application.--To participate in the program, 
                a State shall submit to the Secretary an application in 
                such time, in such manner, and containing such 
                information as the Secretary may require.
                    ``(B) Duties of participating state.--A State that 
                participates in the program shall, through the State 
                forester of the State--
                            ``(i) coordinate the program in the 
                        participating State; and
                            ``(ii) perform any other duty consistent 
                        with the implementation of the program, as 
                        determined by the Secretary.
                    ``(C) Participation requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not later than 1 year after the 
                        date of enactment of this section, the 
                        Secretary shall establish the program in not 
                        less than 1 State in each region of the United 
                        States, including--
                                    ``(I) the Northeast region;
                                    ``(II) the mid-Atlantic region;
                                    ``(III) the Midwest region;
                                    ``(IV) the Southern region;
                                    ``(V) the Western region; and
                                    ``(VI) the Pacific Northwest 
                                region.
                            ``(ii) Requirement of applications.--The 
                        requirement described in clause (i) shall not 
                        apply to a region of the United States if, not 
                        later than 1 year after the date of enactment 
                        of this section, the Secretary has not received 
                        an application from a State in the region.
            ``(2) Assessment of need report.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each participating State shall prepare, and submit to 
                the Secretary, an assessment of need report that 
                identifies--
                            ``(i) each geographic program focus area of 
                        the participating State; and
                            ``(ii) any priority objective for 
                        conservation based on any condition or need of 
                        the citizens of the participating State.
                    ``(B) Exception.--The requirement described in 
                subparagraph (A) may be fulfilled by a participating 
                State through the inclusion of information described in 
                subparagraph (A) as part of an integrated statewide 
                forest planning process for the application of a 
                Federal program in the State.
    ``(c) Application by Local Governmental Entity.--
            ``(1) In general.--A local governmental entity may, in such 
        time and in such manner as the Secretary may require, submit to 
        the State forester of the participating State in which the 
        local governmental entity is located a project application to 
        acquire 1 or more parcels of privately owned forest land that 
        are located in the geographic program focus area of the State, 
        as determined by the State forester.
            ``(2) Contents.--A project application submitted by a local 
        governmental entity to a State forester under paragraph (1) 
        shall include--
                    ``(A) a certification from the local governmental 
                entity that the project proposed in the project 
                application is consistent with any comprehensive plan 
                for development adopted by the local governmental 
                entity; and
                    ``(B) any other applicable information, as 
                determined by the Secretary.
            ``(3) Prioritized list.--The State forester of each 
        participating State shall prepare and submit to the Secretary a 
        prioritized list that includes each project application 
        submitted by a local governmental entity of the State to the 
        State forester under paragraph (1).
    ``(d) Development of National List.--Not later than 1 year after 
the date of enactment of this section, the Secretary shall, in 
accordance with the criteria developed by the Secretary under 
subsection (e), develop a prioritized national list that incorporates 
each prioritized list submitted by a State forester to the Secretary 
under subsection (c)(3).
    ``(e) Development of Criteria for Project Applications.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, Secretary shall, in consultation 
        with forest stewardship advisory committees, urban and 
        community forestry advisory committees, and related 
        organizations of the States, develop prioritization criteria 
        for project applications submitted by local governmental 
        entities to State foresters under subsection (c)(1).
            ``(2) Priority for certain parcels of privately owned 
        forest land.--In developing the prioritization criteria under 
        paragraph (1), the Secretary shall give priority to parcels of 
        privately owned forest land that--
                    ``(A) meet any identified local open space or 
                natural resource need described in a municipal plan, 
                regional plan, or other relevant local, regional, or 
                State planning document;
                    ``(B) could--
                            ``(i) be effectively managed to model 
                        effective forest stewardship for private 
                        landowners;
                            ``(ii) support forest-based educational 
                        programs, including vocational education 
                        programs in forestry;
                            ``(iii) provide significant protection to 
                        public water supplies or other waterways; or
                            ``(iv) offer long-term economic benefits to 
                        communities through the increase of economic 
                        activities relating to forestry;
                    ``(C) contain important wildlife habitats;
                    ``(D) provide convenient public access to parcels 
                of forest land suitable for outdoor recreation, 
                including hunting and fishing; or
                    ``(E) are threatened with conversion to nonforest 
                uses.
            ``(3) Special consideration for certain parcels.--In 
        developing the prioritization criteria under paragraph (1), the 
        Secretary shall give special consideration to any proposal that 
        is jointly prepared and submitted by not less than 2 local 
        governmental entities.
    ``(f) Ownership of Parcels of Privately Owned Forest Land.--
            ``(1) Ownership by local governmental entity.--Except as 
        provided in paragraph (2), any parcel of privately owned forest 
        land acquired by a local governmental entity under the program 
        shall be owned in fee simple by the local governmental entity.
            ``(2) Nonprofit ownership.--Upon request by a participating 
        State, any designated nonprofit organization that operates in 
        the State in which the local governmental entity is located may 
        own a parcel of forest land acquired by the local governmental 
        entity under the program if the designated nonprofit 
        organization allows public access to the parcel of forest land 
        in a manner consistent with the purposes of the program.
    ``(g) Duties of Local Governmental Entities.--
            ``(1) Management of parcels of privately owned forest 
        land.--
                    ``(A) In general.--A local governmental entity that 
                acquires a parcel of privately owned forest land under 
                the program shall manage the parcel of forest land in a 
                manner consistent with the purposes of the program.
                    ``(B) Public access.--A local governmental entity 
                that acquires a parcel of privately owned forest land 
                under the program shall provide public access to the 
                parcel of forest land for any recreational use that is 
                consistent with the purposes of the program, as 
                determined by the local governmental entity.
            ``(2) Forest management plan.--
                    ``(A) In general.--Not later than 2 years after the 
                date on which a local governmental entity acquires a 
                parcel of forest land under the program, the local 
                governmental entity shall develop and submit to the 
                appropriate State agency for approval a forest 
                management plan for the parcel of forest land.
                    ``(B) Public participation.--In developing a forest 
                management plan for a parcel of forest land under 
                subparagraph (A), the local governmental entity shall 
                provide members of the public with an opportunity to 
                participate in the development of the forest management 
                plan.
            ``(3) Use of parcels of privately owned forest land.--
                    ``(A) Authorized uses.--Any parcel of privately 
                owned forest land acquired by a local governmental 
                entity under the program shall be used to preserve 
                community access to, and benefits from, the parcel of 
                forest land for public purposes, including purposes 
                relating to--
                            ``(i) model forest stewardship;
                            ``(ii) sustainable timber production;
                            ``(iii) forest-based educational and 
                        cultural activities;
                            ``(iv) the conservation of wildlife 
                        habitats;
                            ``(v) the protection of watersheds; and
                            ``(vi) the preservation of outdoor 
                        recreation activities, including hunting and 
                        fishing.
                    ``(B) Prohibited uses.--A local governmental entity 
                that acquires a parcel of privately owned forest land 
                under the program shall not convert the parcel of 
                forest land to any nonforest use.
            ``(4) Penalty for sale of acquired parcels of privately 
        owned forest land.--
                    ``(A) Reimbursement of funds.--A local governmental 
                entity that sells a parcel of forest land acquired 
                under the program shall pay to the Federal Government 
                an amount equal to the sum obtained by adding--
                            ``(i) the amount provided under the program 
                        to the local governmental entity to purchase 
                        the parcel of privately owned forest land; and
                            ``(ii) an amount equal to 50 percent of the 
                        greater of--
                                    ``(I) the sales price of the 
                                privately owned parcel of land; and
                                    ``(II) the appraised price of the 
                                privately owned parcel of forest land.
                    ``(B) Loss of eligibility.--A local governmental 
                entity that sells a parcel of forest land acquired 
                under the program shall not be eligible to receive 
                grants under the program after the date on which the 
                local governmental entity sells the parcel of forest 
                land.
    ``(h) Cost Sharing.--
            ``(1) In general.--In accordance with any term or condition 
        of the Secretary, any cost relating to the acquisition of any 
        parcel of privately owned forest land and any project described 
        in a project application submitted to a State forester under 
        subsection (c)(1) shall be shared among any participating 
        entity, including any--
                    ``(A) State;
                    ``(B) local governmental entity;
                    ``(C) owner of a parcel of privately owned forest 
                land;
                    ``(D) corporation; or
                    ``(E) private organization.
            ``(2) Eligible costs.--A local governmental entity shall be 
        eligible for assistance under the program for any cost relating 
        to a parcel of privately owned forest land, including any cost 
        relating to--
                    ``(A) planning;
                    ``(B) administration;
                    ``(C) acquisition of the parcel of privately owned 
                forest land; or
                    ``(D) management of the privately owned forest 
                land.
            ``(3) Non-federal share.--
                    ``(A) In general.--The non-Federal share of the 
                cost of a parcel of privately owned forest land 
                acquired under the program shall be not less than 50 
                percent.
                    ``(B) In-kind contributions.--The non-Federal share 
                under subparagraph (A) may be provided in cash or in-
                kind.
                    ``(C) Appraisal of parcels of privately owned 
                forest land.--To determine the non-Federal share of the 
                cost of a parcel of privately owned forest land under 
                subparagraph (A), the local governmental entity shall 
                determine the value of the parcel of privately owned 
                forest land by an appraisal that is performed in 
                accordance with--
                            ``(i) the Uniform Appraisal Standards for 
                        Federal Land Acquisitions developed by the 
                        Interagency Land Acquisition Conference;
                            ``(ii) the Uniform Standards of 
                        Professional Appraisal Practice; and
                            ``(iii) any other applicable law.
    ``(i) State Administration and Technical Assistance.--To assist 
local governmental entities in conducting model stewardship of parcels 
of privately owned forest land acquired under the program, not more 
than 10 percent of all funds made available to carry out the program 
each fiscal year shall be allocated to appropriate State agencies in 
participating States--
            ``(1) to carry out the program; and
            ``(2) to provide technical assistance to local governmental 
        entities for any activity relating to forest stewardship, 
        including the development and implementation of an approved 
        forest management plan.
    ``(j) Effect.--
            ``(1) Recognition of authority to control land use.--
        Nothing in this section modifies the authority of a Federal, 
        State, or local government to regulate land use.
            ``(2) Participation of private property owners.--Nothing in 
        this section requires the owner of any private property to 
        participate in the program.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 6002. DEVELOPMENT OF NATIONAL PRIORITIES AND STATE FOREST PLANS.

    The Cooperative Forestry Assistance Act of 1978 is amended--
            (1) by redesignating section 20 (16 U.S.C. 2114) as section 
        21; and
            (2) by inserting after section 19 (16 U.S.C. 2113) the 
        following:

``SEC. 20. DEVELOPMENT OF NATIONAL PRIORITIES AND STATE FOREST PLANS.

    ``(a) National Priorities.--Not later than 1 year after the date of 
enactment of this section, the Secretary, in coordination with 
appropriate Federal agencies, shall develop national priorities for the 
conservation of the privately owned forest land of the United States 
that include a description of--
            ``(1) the most pressing threats to the sustainability, 
        management, and conservation of the privately owned forest land 
        of the United States; and
            ``(2) the expected roles of Federal agencies and the 
        conservation and forest programs of the Department of 
        Agriculture in partnering with States and private landowners to 
        address identified threats to the privately owned forest land 
        of the United States.
    ``(b) State Forest Plans.--Not later than 3 years after the date of 
enactment of this section, the State forester of each State, in 
consultation with stakeholders, conservationists, wildlife agencies, 
and other appropriate agencies of the State of the State forester, 
shall develop a State forest plan that includes a description of--
            ``(1) threats to the sustainability, management, and 
        conservation of privately owned forest land of the State, with 
        particular emphasis on any threat that is--
                    ``(A) included in the national priorities developed 
                by the Secretary, in coordination with appropriate 
                Federal agencies, under subsection (a); and
                    ``(B) relevant to the State for which the State 
                forest plan is developed;
            ``(2) goals and strategies--
                    ``(A) to address any identified threat to the 
                privately owned forest land of the State; and
                    ``(B) to maintain the productivity and capacity of 
                forest resources in the State, including the means by 
                which the coordinated application of the conservation 
                and forest programs of the Department of Agriculture 
                could address relevant threats and support private 
                landowners; and
            ``(3) a program to monitor and measure any progress made by 
        the Federal Government and the States toward reaching each goal 
        and implementing each strategy included in the State forest 
        plan developed under this section.
    ``(c) Appropriations.--There is authorized to be appropriated to 
carry out this section $10,000,000 for each of fiscal years 2008 
through 2010.''.

          Subtitle B--Healthy Forests Restoration Act of 2003

SEC. 6011. HEALTHY FORESTS RESERVE PROGRAM.

    (a) Methods of Enrollment.--Section 502(f)(1) of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6572(f)(1)) is amended by 
striking subparagraph (C) and inserting the following:
                    ``(C) a permanent easement.''.
    (b) Funding.--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 HEALTHY FORESTS RESERVE PROGRAM.

    ``(a) Funding.--
            ``(1) In general.--On October 1, 2007, and on each October 
        1 thereafter through October 1, 2013, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of the 
        Treasury shall transfer to the Secretary of Agriculture to 
        carry out this title $50,000,000.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this title the funds transferred under paragraph (1), without 
        further appropriation.
    ``(b) Section 11 Cap.--The use of Commodity Credit Corporation 
funds under subsection (a) to provide technical assistance under the 
healthy forests reserve program shall not be considered an allotment or 
fund transfer from the Commodity Credit Corporation for purposes of the 
limitation on expenditures for technical assistance imposed by section 
11 of the Commodity Credit Corporation Charter Act (15 U.S.C. 714i).''.

                           TITLE VII--ENERGY

SEC. 7001. DEFINITION OF BIOMASS.

    Section 9001(3)(B)(i) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8101(3)(B)(i)) is amended by inserting ``and crop 
waste'' after ``agricultural crops''.

SEC. 7002. 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``$1,000,000 for 
each of fiscal years 2002 through 2007'' and inserting ``$10,000,000 
for each of fiscal years 2008 through 2013''.

SEC. 7003. BIOREFINERY DEVELOPMENT GRANTS.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended 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 $100,000,000 for each 
of fiscal years 2008 through 2013, to remain available until 
expended.''.

SEC. 7004. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    Section 9005 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8105) is amended by striking subsection (i) and inserting the 
following:
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 7005. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106) is amended--
            (1) in subsection (c), by adding at the end the following:
            ``(3) Priority.--In making loans and grants under this 
        section, the Secretary shall give priority to activities that, 
        as determined by the Secretary--
                    ``(A) are undertaken jointly by more than 1 
                eligible entity in a local community;
                    ``(B) involve direct cooperation between 2 or more 
                eligible entities; or
                    ``(C) otherwise foster community or cooperative 
                approaches to renewable energy and energy efficiency 
                development.'';
            (2) by striking subsection (f);
            (3) by redesignating subsection (e) as subsection (f);
            (4) 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 lesser of--
                    ``(A) 25 percent of the eligible project costs; and
                    ``(B) any other limits that the Secretary 
                establishes by rule or guidance.''; and
            (5) by adding at the end the following:
    ``(g) Funding.--
            ``(1) Commodity credit corporation.--Of the funds of the 
        Commodity Credit Corporation, the Secretary shall use to carry 
        out this section--
                    ``(A) $60,000,000 for fiscal year 2008;
                    ``(B) $90,000,000 for fiscal year 2009;
                    ``(C) $130,000,000 for fiscal year 2010;
                    ``(D) $180,000,000 for fiscal year 2011; and
                    ``(E) $250,000,000 for each of fiscal years 2012 
                and 2013.
            ``(2) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

SEC. 7006. 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 ``2013''.
    (b) Funding.--Section 310 of the Biomass Research and Development 
Act of 2000 (7 U.S.C. 8609) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this title $25,000,000 for each of 
fiscal years 2008 through 2013.''; and
            (2) by adding at the end the following:
    ``(c) Availability of Funds.--Funds made available under 
subsections (a) and (b) shall remain available until expended.''.

SEC. 7007. COOPERATIVE RESEARCH AND EXTENSION PROJECTS.

    The Agricultural Risk Protection Act of 2000 is amended--
            (1) in section 221 (7 U.S.C. 6711), by striking ``2007'' 
        each place it appears and inserting ``2013''; and
            (2) by inserting after section 227 (Public Law 106-224; 114 
        Stat. 409) the following:

``SEC. 228. COOPERATIVE RESEARCH AND EXTENSION PROJECTS FOR CARBON 
              CYCLE, RENEWABLE ENERGY, AND CLIMATE CHANGE IN THE 
              NORTHEAST AND MID-ATLANTIC.

    ``(a) In General.--The Secretary shall use $15,000,000 to provide 
grants to the eligible universities described in subsection (b) for the 
conduct of research on carbon cycle, renewable energy, and climate 
change.
    ``(b) Eligible Universities.--The eligible universities referred to 
in subsection (a) are--
            ``(1) Cornell University;
            ``(2) the University of the District of Columbia; and
            ``(3) public universities in the following States:
                    ``(A) Connecticut.
                    ``(B) Delaware.
                    ``(C) Maine.
                    ``(D) Maryland.
                    ``(E) Massachusetts.
                    ``(F) New Hampshire.
                    ``(G) New Jersey.
                    ``(H) New York.
                    ``(I) Pennsylvania.
                    ``(J) Rhode Island.
                    ``(K) Vermont.
                    ``(L) Virginia.
    ``(c) Use.--The universities described in subsection (b) shall use 
funds made available under this section--
            ``(1) to conduct research to improve the scientific basis 
        of using land management practices to increase soil carbon 
        sequestration, including research on the use of new 
        technologies to increase carbon cycle effectiveness, such as 
        biotechnology and nanotechnology;
            ``(2) to enter into partnerships to identify, develop, and 
        evaluate agricultural best practices, including partnerships 
        between--
                    ``(A) Federal, State, or private entities; and
                    ``(B) the Department of Agriculture;
            ``(3) to develop necessary computer models to predict and 
        assess the carbon cycle;
            ``(4) to estimate and develop mechanisms to measure carbon 
        levels made available as a result of--
                    ``(A) voluntary Federal conservation programs;
                    ``(B) private and Federal forests; and
                    ``(C) other land uses;
            ``(5) to develop outreach programs, in coordination with 
        Extension Services, to share information on carbon cycle and 
        agricultural best practices that is useful to agricultural 
        producers;
            ``(6) to conduct research on the effects of increased 
        greenhouse gases and global warming on agriculture in the 
        Northeast and Mid-Atlantic regions; and
            ``(7) to conduct studies of the potential for production 
        of--
                    ``(A) ethanol and other biofuels from cellulosic 
                materials produced in the Northeast and Mid-Atlantic 
                regions;
                    ``(B) electricity produced from cellulosic 
                materials produced in the Northeast and Mid-Atlantic 
                regions; and
                    ``(C) natural gas produced from agricultural waste 
                and animal waste produced in the Northeast and Mid-
                Atlantic regions.
    ``(d) Administrative Costs.--Not more than 3 percent of the funds 
made available under subsection (a) may be used by the Secretary to pay 
administrative costs incurred in carrying out this section.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $15,000,000 for each of fiscal 
years 2008 through 2013.''.

SEC. 7008. INDUSTRIAL SITE REDEVELOPMENT THROUGH CELLULOSIC PROGRAM.

    Section 9010 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) by striking the section enumerator and the heading and 
        inserting the following:

``SEC. 9010. INDUSTRIAL SITE REDEVELOPMENT THROUGH CELLULOSIC 
              PROGRAM.'';

            (2) in subsection (a)--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraph (2) as paragraph 
                (1);
                    (C) by inserting after paragraph (1) (as 
                redesignated by subparagraph (B)) the following:
            ``(2) Biofuel.--The term `biofuel' means--
                    ``(A) biodiesel;
                    ``(B) fuel grade ethanol; and
                    ``(C) other liquid transportation fuels.'';
                    (D) in paragraph (3)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) residue and waste material from the 
                production of agricultural crops (such as wheat and 
                rice straw, corn stover, sugar bagasse, and trimmings 
                from fruits and tree nuts);''; and
                            (ii) in subparagraph (D), by striking 
                        ``bioenergy'' and inserting ``biofuel''; and
                    (E) by striking paragraph (4) and inserting the 
                following:
            ``(4) Eligible producer.--The term `eligible producer' 
        means a producer that operates an eligible project.
            ``(5) Eligible project.--The term `eligible project' means 
        a project that uses an eligible site for the industrial 
        production of biofuel directly from an eligible commodity.
            ``(6) Eligible site.--
                    ``(A) In general.--The term `eligible site' means--
                            ``(i) an active industrial or processing 
                        facility (such as a distillery, ethanol plant, 
                        or paper mill); or
                            ``(ii) a site on which an industrial or 
                        processing facility that is no longer in active 
                        use is located.
                    ``(B) Inclusions.--The term `eligible site' 
                includes any land contiguous with and immediately 
                surrounding a facility or site described in 
                subparagraph (A).
            ``(7) Program.--The term `program' means the Industrial 
        Site Redevelopment through Cellulosic Program established by 
        subsection (b)(1).''; and
            (3) by striking subsections (b) and (c) and inserting the 
        following:
    ``(b) Industrial Site Redevelopment Through Cellulosic Program.--
            ``(1) Establishment.--There is established in the 
        Department of Agriculture the Industrial Site Redevelopment 
        through Cellulosic Program.
            ``(2) Purpose.--The purpose of the program is to stimulate 
        the conversion of existing industrial infrastructure into 
        advanced cellulosic biofuel production facilities to--
                    ``(A) diversify fuel options;
                    ``(B) stimulate rural development; and
                    ``(C) provide new markets for agricultural goods 
                and byproducts.
            ``(3) Grants, loans, and loan guarantees.--
                    ``(A) In general.--Under the program, the Secretary 
                may provide grants, loans, and loan guarantees to 
                eligible producers for--
                            ``(i) the purchase of equipment for an 
                        eligible project;
                            ``(ii) the purchase of construction or 
                        related services for an eligible project; and
                            ``(iii) the construction of infrastructure 
                        for an eligible project.
                    ``(B) Limitations.--
                            ``(i) Grants.--The maximum amount of a 
                        grant provided to any 1 eligible producer under 
                        subparagraph (A) shall be not more than 
                        $25,000,000.
                            ``(ii) Total assistance.--The total amount 
                        of grants, loans, and loan guarantees provided 
                        to any 1 eligible producer under subparagraph 
                        (A) shall be not more than $50,000,000.
                    ``(C) Matching funds.--An eligible producer that 
                receives a grant under the program shall provide 
                matching funds from non-Federal sources in an amount 
                that is at least equal to the amount of the grant.
            ``(4) Producer payments in lieu of grants.--
                    ``(A) In general.--In lieu of a grant provided 
                under the program, the Secretary may make an annual 
                payment to an eligible producer that provides up to $2 
                for each gallon of biofuel produced by the eligible 
                producer during applicable year.
                    ``(B) Limitations.--
                            ``(i) Payments.--The total amount of 
                        producer payments provided under subparagraph 
                        (A) shall be not more than $25,000,000.
                            ``(ii) All forms of assistance.--The total 
                        amount of producer payments, grants, loans, and 
                        loan guarantees provided to eligible producers 
                        under the program shall be not more than 
                        $50,000,000.
            ``(5) Other requirements.--To be eligible to receive a 
        grant, loan, loan guarantee, or payment under the program, an 
        eligible producer shall meet other requirements of Federal law 
        (including regulations) applicable to--
                    ``(A) the production of bioenergy; and
                    ``(B) the provision of assistance from the 
                Department of Agriculture.
    ``(c) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section $150,000,000 for each 
of fiscal years 2008 through 2013, to remain available until 
expended.''.

SEC. 7009. FARM AND RANCH ENERGY EFFICIENCY REBATE PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State energy or agriculture office;
                    (B) a nonprofit State-based energy efficiency or 
                renewable energy organization that uses public funds 
                provided directly by, or under contract with, a State 
                agency;
                    (C) any other nonprofit organization with a 
                demonstrated ability to administer a statewide energy 
                efficiency or renewable energy rebate program; or
                    (D) a consortium of entities described in 
                subparagraphs (A) through (C).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Grants.--The Secretary shall provide competitive grants to 
eligible entities to provide rebates to agricultural producers, rural 
school districts, and rural small businesses that--
            (1) purchase renewable energy systems; or
            (2) make energy efficiency improvements.
    (c) Merit Review.--
            (1) In general.--The Secretary shall establish a merit 
        review process to review applications for grants under this 
        section.
            (2) Requirements.--In reviewing the application of an 
        eligible entity for a grant under this section, the Secretary 
        shall consider--
                    (A) the experience and expertise of the eligible 
                entity in establishing and administering a statewide 
                clean energy rebate program;
                    (B) the annual projected energy savings or 
                production increases from the proposed program;
                    (C) the projected environmental benefits from the 
                proposed program; and
                    (D) other appropriate factors, as determined by the 
                Secretary.
    (d) Rebate Amount.--The amount of a rebate provided from a grant 
under this section shall not exceed the lesser of--
            (1) $10,000; or
            (2) 50 percent of the cost incurred in--
                    (A) purchasing a renewable energy system; or
                    (B) making an energy efficiency improvement.
    (e) Maintenance of Effort.--An eligible entity that receives a 
grant under subsection (b) shall provide assurances to the Secretary 
that any funds provided to the entity under this subsection will be 
used only to supplement, not to supplant, the amount of Federal, State, 
and local funds otherwise expended for rebate programs.
    (f) 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 2013, to remain available until expended.

SEC. 7010. ALTERNATIVE USES FOR BIOFUEL BYPRODUCTS.

    (a) Definitions.--In this section:
            (1) Bioenergy.--The term ``bioenergy'' means heat or 
        electricity produced from--
                    (A) solar panels or concentrators;
                    (B) wind capturing devices;
                    (C) small-scale hydroelectric devices;
                    (D) methane and other biodigesters;
                    (E) landfill digesters;
                    (F) biomass; or
                    (G) waste materials from cropping or livestock 
                production.
            (2) Biofuel.--The term ``biofuel'' means--
                    (A) biodiesel;
                    (B) fuel grade ethanol; and
                    (C) other liquid transportation fuels.
            (3) Byproduct.--The term ``byproduct'' includes--
                    (A) any solid, gaseous, or liquid matter produced 
                from the biofuel or bioenergy production process that 
                may be converted to food, feed, fiber, or energy;
                    (B) unused electricity, energy, or heat produced 
                from the biofuel or bioenergy production process; and
                    (C) unused solid, gaseous, or liquid materials not 
                consumed during the biofuel or bioenergy production 
                process.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Grants.--The Secretary shall provide grants to the eligible 
universities described in subsection (b) for the conduct of research on 
alternative uses for byproducts produced from the biofuel or bioenergy 
production process.
    (c) Eligible Universities.--The eligible universities referred to 
in subsection (a) are--
            (1) Cornell University;
            (2) the University of the District of Columbia; and
            (3) public universities in the following States:
                    (A) Connecticut.
                    (B) Delaware.
                    (C) Maine.
                    (D) Maryland.
                    (E) Massachusetts.
                    (F) New Hampshire.
                    (G) New Jersey.
                    (H) New York.
                    (I) Pennsylvania.
                    (J) Rhode Island.
                    (K) Vermont.
                    (L) Virginia.
    (d) Maximum Grant Amount.--The amount of a grant provided to any 1 
eligible institution under this section for a fiscal year shall not 
exceed an amount equal to the lesser of--
            (1) $1,000,000; or
            (2) 10 percent of the funds made available to carry out 
        this section for the fiscal year.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2008 through 2013.

SEC. 7011. NATIONAL NET METERING FOR FARM ENERGY.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
striking paragraph (11) and inserting the following:
            ``(11) Net metering.--On the request of any electric 
        consumer served by an electric utility, the electric utility 
        shall make available to the electric consumer net metering as 
        provided in section 115(j).''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(j) Net Metering.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible on-site generating facility.--The 
                term `eligible on-site generating facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 25 kilowatts or less; 
                        and
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 1,000 kilowatts or less 
                        that is fueled solely by a renewable energy 
                        resource.
                    ``(B) Net metering service.--The term `net metering 
                service' means service to an electric consumer, as 
                provided in section 111(d)(11), under which electric 
                energy generated by that electric consumer from an 
                eligible on-site generating facility and delivered to 
                the local distribution facilities may be used to offset 
                electric energy provided by the electric utility to the 
                electric consumer during the applicable billing period.
                    ``(C) Renewable energy resource.--The term 
                `renewable energy resource' means--
                            ``(i) solar, wind, biomass, geothermal, or 
                        wave energy;
                            ``(ii) landfill gas;
                            ``(iii) energy produced from livestock 
                        waste;
                            ``(iv) energy produced from a biodigester;
                            ``(v) fuel cells; and
                            ``(vi) a combined heat and power system.
            ``(2) Net metering service.--For the purposes of 
        undertaking the consideration and making the determination with 
        respect to the standard concerning net metering established by 
        section 111(d)(11), the term `net metering service' means a 
        service provided in accordance with this subsection.
            ``(3) Charges by an electric utility.--An electric 
        utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(4) Measurement of quantities.--An electric utility that 
        sells electric energy to the owner or operator of an on-site 
        generating facility shall measure the quantity of electric 
        energy produced by the on-site facility and the quantity of 
        electric energy consumed by the owner or operator of an on-site 
        generating facility during a billing period in accordance with 
        reasonable metering practices.
            ``(5) Quantity sold in excess of quantity supplied.--If the 
        quantity of electric energy sold by the electric utility to an 
        on-site generating facility exceeds the quantity of electric 
        energy supplied by the on-site generating facility to the 
        electric utility during the billing period, the electric 
        utility may bill the owner or operator for the net quantity of 
        electric energy sold, in accordance with reasonable metering 
        practices.
            ``(6) Quantity supplied in excess of quantity sold.--If the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility exceeds the quantity of 
        electric energy sold by the electric utility to the on-site 
        generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (5); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period with 
                a kilowatt-hour credit appearing on the bill for the 
                following billing period.
            ``(7) Compliance with standards.--An eligible on-site 
        generating facility and net metering system used by an electric 
        consumer shall meet all applicable safety, performance, 
        reliability, and interconnection standards established by the 
        National Electrical Code, the Institute of Electrical and 
        Electronics Engineers, and Underwriters Laboratories.
            ``(8) Requirements.--The Commission, after consultation 
        with State regulatory authorities and unregulated electric 
        utilities, and after notice and opportunity for comment, may 
        promulgate additional control and testing requirements for on-
        site generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
            ``(9) State authority.--An electric utility must provide 
        net metering services to electric consumers until the 
        cumulative generating capacity of net metering systems equals 
        10.0 percent of the peak demand of the utility during the most 
        recent calendar year.
            ``(10) Additional state requirements.--Nothing in this 
        subsection precludes a State from imposing additional 
        requirements regarding the amount of net metering available 
        within a State consistent with the requirements of this 
        section.''.

                        TITLE VIII--HEALTH DIETS

SEC. 8001. EXPANSION OF FRESH FRUIT AND VEGETABLE PROGRAM.

    Section 18 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1769) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``July 2004'' and inserting 
                        ``July 2007''; and
                            (ii) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) 100 elementary schools or secondary schools 
                in each State;
                    ``(B) additional elementary schools or secondary 
                schools in each State, in accordance with the 
                proportion that--
                            ``(i) the total student population of the 
                        State; bears to
                            ``(ii) the total student population of all 
                        States; and'';
                    (B) in paragraph (3)(A), by striking ``paragraph 
                (1)(B)'' and inserting ``paragraph (1)'';
                    (C) in subparagraphs (A) and (B) of paragraph (5) 
                by striking ``2008'' each place it appears and 
                inserting ``2011''; and
                    (D) in paragraph (6)(B)--
                            (i) in clause (i)--
                                    (I) by striking ``October 1, 2004'' 
                                and inserting ``October 1, 2007''; and
                                    (II) by striking ``$9,000,000'' and 
                                inserting ``$300,000,000''; and
                            (ii) by adding at the end the following:
                            ``(iii) Administrative expenses.--For 
                        fiscal year 2008 and each fiscal year 
                        thereafter, of amounts made available to carry 
                        out this subsection, the Secretary may use not 
                        more than 1 percent for administrative expenses 
                        of carrying out this subsection.
                            ``(iv) State administrative costs.--
                                    ``(I) In general.--Subject to 
                                subclause (II), for fiscal year 2008 
                                and each fiscal year thereafter, of 
                                amounts made available to a State to 
                                carry out this subsection, the State 
                                may use not more than 5 percent for 
                                administrative expenses of carrying out 
                                this subsection.
                                    ``(II) Requirement.--To be eligible 
                                to use funds under subclause (I), a 
                                State shall submit to the Secretary a 
                                plan indicating the manner in which the 
                                State intends to use the funds.
                            ``(v) Federal requirements.--Not later than 
                        1 year after the date of enactment of this 
                        clause, and periodically thereafter as the 
                        Secretary determines to be appropriate, the 
                        Secretary shall establish requirements for 
                        States in administering this subsection.''; and
            (2) in subsection (i)(2), by striking ``such sums as are 
        necessary'' and all that follows through the period at the end 
        and inserting ``to carry out this subsection $20,000,000 for 
        each of fiscal years 2008 through 2013.''.

SEC. 8002. SECTION 32 SPECIALTY CROP PURCHASES.

    Section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), is 
amended--
            (1) by redesignating the first through sixth sentences as 
        subsections (a) through (f), respectively;
            (2) by redesignating the seventh and eighth sentences as 
        subsections (h) and (i), respectively; and
            (3) by inserting after subsection (f) the following:
    ``(g) Purchase of Agricultural Commodities.--
            ``(1) In general.--Subject to paragraph (2), for each of 
        fiscal years 2008 through 2013, the Secretary shall use not 
        less than $400,000,000 of amounts made available to carry out 
        this section to purchase nonbasic agricultural commodities 
        (such as fruits, vegetables, and other specialty food crops).
            ``(2) Purchase of fresh fruits and vegetables for child 
        nutrition programs.--Of amounts made available under paragraph 
        (1), the Secretary shall use for the purchase of fresh fruits 
        and vegetables for distribution to schools and service 
        institutions in accordance with section 6(a) of the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1755(a)) not less 
        than--
                    ``(A) $50,000,000 for fiscal year 2008;
                    ``(B) $75,000,000 for each of fiscal years 2009 and 
                2010;
                    ``(C) $100,000,000 for fiscal year 2011; and
                    ``(D) $125,000,000 for each of fiscal years 2012 
                and 2013.''.

SEC. 8003. SCHOOL PREFERENCE STUDY.

    Section 12 of the Richard B. Russell National School Lunch Act (42 
U.S.C. 1760) is amended by adding at the end the following:
    ``(p) School Preference Study.--
            ``(1) In general.--The Secretary shall carry out a study of 
        the preferences of elementary schools and secondary schools for 
        commodity distribution, including the extent to which the 
        schools prefer commodity distribution to include fresh fruits 
        and vegetables.
            ``(2) Report.--The Secretary shall submit to the Committee 
        on Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of the Senate 
        a report on the results of the study under paragraph (1) that 
        includes--
                    ``(A) an analysis of any logistical issue that 
                would impede efforts to increase the extent to which 
                commodity distribution to schools includes the 
                distribution of fresh fruits and vegetables; and
                    ``(B) recommendations for improving the 
                availability of fresh fruits and vegetables to 
                schools.''.

SEC. 8004. INDEPENDENT EVALUATION OF COMMODITY PURCHASE PROCESS.

    Section 4 of the Agriculture and Consumer Protection Act of 1973 (7 
U.S.C. 612c note; Public Law 93-86) is amended--
            (1) in subsection (a), in the first sentence by striking 
        ``2007'' and inserting ``2013''; and
            (2) by adding at the end the following:
    ``(d) Independent Evaluation of Commodity Purchase Process.--
            ``(1) In general.--The Secretary shall provide for an 
        independent evaluation of the process (including the statutory 
        and regulatory authority for the process) by which the 
        Secretary purchases commodities in order to reduce the purchase 
        of surplus commodities from the market and to support commodity 
        prices and producer income--
                    ``(A) especially with respect to activities under 
                section 32 of the Act of August 24, 1935 (7 U.S.C. 
                612c); and
                    ``(B) taking into consideration the importance of 
                increasing purchases of perishable specialty crops.
            ``(2) Report.--Not later than 1 year after the date of 
        enactment of this subsection, the Secretary shall submit to the 
        Committee on Agriculture of the House of Representatives and 
        the Committee on Agriculture, Nutrition, and Forestry of the 
        Senate a report on the results of the evaluation under 
        paragraph (1).''.

SEC. 8005. WIC FARMERS' MARKET NUTRITION PROGRAM.

    Section 17(m)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(m)(9)(A)) is amended--
            (1) in clause (i), by striking ``2009'' and inserting 
        ``2013''; and
            (2) by striking clause (ii) and inserting the following:
                            ``(ii) Mandatory funding.--Of the funds of 
                        the Commodity Credit Corporation, the Secretary 
                        shall make available to carry out this 
                        subsection, to remain available until 
                        expended--
                                    ``(I) $20,000,000 for fiscal year 
                                2008;
                                    ``(II) $30,000,000 for fiscal year 
                                2009;
                                    ``(III) $45,000,000 for fiscal year 
                                2010;
                                    ``(IV) $60,000,000 for fiscal year 
                                2011; and
                                    ``(V) not less than $75,000,000 for 
                                fiscal year 2012 and each fiscal year 
                                thereafter.''.

SEC. 8006. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    Section 4402 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 3007) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Establishment.--Of funds available to the Commodity Credit 
Corporation, the Secretary of Agriculture (referred to in this section 
as the `Secretary') shall use to carry out and expand a seniors 
farmers' market nutrition program--
            ``(1) $20,000,000 for fiscal year 2008;
            ``(2) $30,000,000 for fiscal year 2009;
            ``(3) $45,000,000 for fiscal year 2010;
            ``(4) $60,000,000 for fiscal year 2011; and
            ``(5) not less than $75,000,000 for fiscal year 2012 and 
        each fiscal year thereafter.'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) to promote the transition to organic and other 
        environmentally beneficial food production systems.'';
            (3) by redesignating subsection (c) as subsection (d); and
            (4) by inserting after subsection (b) the following:
    ``(c) Eligible Participants; Benefits Levels.--Regulations issued 
pursuant to subsection (d)--
            ``(1) shall allow for participation by participants in 
        farmers' markets, roadside stands, and community supported 
        agriculture programs; and
            ``(2) shall not limit the ability of any State or regional 
        program to set benefit levels for individual seniors.''.

SEC. 8007. DIRECT-TO-CONSUMER PROMOTION PROGRAM.

    Section 6 of the Farmer-to-Consumer Direct Marketing Act of 1976 (7 
U.S.C. 3005) is amended by striking subsections (c) through (e) and 
inserting the following:
    ``(c) Eligibility.--
            ``(1) Eligible entities.--An entity shall be eligible to 
        receive a grant under the Program if the entity is--
                    ``(A) 2 or more agricultural producers or farm 
                vendors that produce and sell products through a common 
                distribution channel;
                    ``(B) an agricultural cooperative or producer 
                association or network;
                    ``(C) a local government;
                    ``(D) a nonprofit corporation;
                    ``(E) a public benefit corporation;
                    ``(F) an economic development corporation;
                    ``(G) a regional farmers' market authority; or
                    ``(H) such other entity as the Secretary may 
                designate.
            ``(2) Eligible activities.--Eligible direct farmer-to-
        consumer activities include--
                    ``(A) farmers' markets;
                    ``(B) roadside stands;
                    ``(C) community-supported agriculture;
                    ``(D) activities to support the use of electronic 
                benefit transfer systems at farmers' markets and other 
                direct market enterprises, if feasible;
                    ``(E) pick-your-own operations;
                    ``(F) producer-owned agritourism activities 
                facilitating the direct sale of agricultural products;
                    ``(G) related Internet and mail order sales; and
                    ``(H) other similar ventures, as determined by the 
                Secretary.
    ``(d) Funding.--The Secretary shall use $25,000,000 of funds of the 
Commodity Credit Corporation to carry out this section for each of 
fiscal years 2008 through 2013, of which not less than 10 percent shall 
be used to support the use of electronic benefit transfers at farmers' 
markets.''.

SEC. 8008. PURCHASES OF LOCALLY PRODUCED FOODS.

    (a) Findings.--Congress finds that--
            (1) locally produced agricultural products, as compared to 
        products transported from distant sources--
                    (A)(i) are often harvested closer to full ripeness; 
                and
                    (ii) can provide higher nutritional quality;
                    (B) can provide improved ripeness, taste, and 
                selection, which can increase rates of consumption of 
                agricultural products; and
                    (C) are more efficient to store, distribute, and 
                package; and
            (2) use of local produce to carry out nutrition programs--
                    (A) reduces dependence on foreign oil by reducing 
                fuel consumption rates associated with the production 
                or transportation of agricultural products;
                    (B) can improve the ability of users of the 
                procurement system to provide education relating to 
                nutrition, farming, sustainability, energy efficiency, 
                and the importance of local purchases to the local 
                economy;
                    (C) helps to maintain a robust logistics network 
                for agricultural product procurement; and
                    (D) promotes farm, business, and economic 
                development by accessing local markets.
    (b) Program Improvements.--Section 9(j) of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1758(j)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``In general'' and inserting 
                ``Purchases''; and
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) allow institutions described in paragraph 
                (3)(A)--
                            ``(i) to purchase, in addition to other 
                        food purchases, locally produced foods for 
                        school meal programs, to the maximum extent 
                        practicable and appropriate; and
                            ``(ii) to establish, in compliance with 
                        Federal and State procurement laws (including 
                        regulations), preapproved suppliers and product 
                        lists that require a comprehensive competitive 
                        evaluation before a supplier or product is 
                        included on the list;'';
            (2) by redesignating paragraph (2) as paragraph (6);
            (3) by inserting after paragraph (1) the following:
            ``(2) Department of defense.--Notwithstanding any other 
        provision of law, the Secretary of Defense may elect to use a 
        geographic preference to purchase locally produced agricultural 
        products for--
                    ``(A) the Defense Supply Center Philadelphia;
                    ``(B) the Department of Defense Farm to School 
                Program;
                    ``(C) the Department of Defense Fresh Fruit and 
                Vegetable Program;
                    ``(D) the service academies of the Department of 
                Defense;
                    ``(E) Department of Defense domestic dependent 
                schools;
                    ``(F) other Department of Defense schools under 
                chapter 108 of title 10, United States Code;
                    ``(G) commissary and exchange stores of the 
                Department of Defense; and
                    ``(H) morale, welfare, and recreation facilities 
                operated by the Department of Defense.
            ``(3) Department of agriculture and related entities.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the Secretary or the head of any 
                school, local educational agency, or other entity, as 
                applicable, may elect to use a geographic preference to 
                purchase locally produced agricultural products for--
                            ``(i) the school breakfast program 
                        established by section 4 of the Child Nutrition 
                        Act of 1966 (42 U.S.C. 1773);
                            ``(ii) the school lunch program established 
                        under this Act;
                            ``(iii) the summer food service program for 
                        children established under section 13; and
                            ``(iv) the child and adult care food 
                        program established under section 17.
                    ``(B) Report.--The head of any school, local 
                educational agency, or other entity participating in a 
                program described in subparagraph (A) that makes an 
                election under that subparagraph shall submit to the 
                Secretary a report describing any case in which the 
                school, local educational agency, or other entity pays 
                an amount in excess of an amount equal to 10 percent 
                more than the lowest applicable bid to purchase locally 
                produced agricultural products.
            ``(4) Treatment of certain bids.--
                    ``(A) In general.--On making an election under 
                paragraph (2) or (3), the Secretary, the Secretary of 
                Defense, or the head of any school, local educational 
                agency, or other entity participating in a program 
                described in paragraph (3)(A) may--
                            ``(i) include in the text of any bid a 
                        description of the election;
                            ``(ii) select any bid involving a locally 
                        produced agricultural product, regardless of 
                        whether the bid is the lowest bid relating to 
                        the agricultural product; and
                            ``(iii) subject to subparagraph (B), 
                        acquire agricultural products from preapproved 
                        local and regional vendors and distributors 
                        authorized by the Secretary that have agreed to 
                        supply eligible products to the above 
                        referenced schools and service institutions.
                    ``(B) Requirements.--To be eligible to be 
                preapproved by the Secretary a vendor or distributor 
                described in subparagraph (A)(iii) shall--
                            ``(i) demonstrate an ability to supply 
                        agricultural products from local growers and 
                        processors;
                            ``(ii) comply with food safety standards 
                        developed by the Secretary; and
                            ``(iii) consistently provide agricultural 
                        products that meet standards of grade, size, 
                        freshness, and quality as required by the 
                        Secretary or local procurement officer.
                    ``(C) Relation to state procurement laws.--Nothing 
                in this paragraph precludes a school or service 
                institution described in subparagraph (A) from 
                purchasing agricultural products from potential local 
                farmers in compliance with applicable State procurement 
                laws.
            ``(5) Review.--The Secretary and the Secretary of Defense 
        shall periodically review each election to use a geographic 
        preference under this subsection to prevent fraud or abuse.''; 
        and
            (4) in paragraph (6)(A) (as redesignated by paragraph (2)), 
        by striking ``2009'' and inserting ``2013''.

                        TITLE IX--MISCELLANEOUS

                    Subtitle A--Organic Agriculture

SEC. 9001. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    (a) In General.--Section 2104 of the Organic Foods Production Act 
of 1990 (7 U.S.C. 6503) is amended--
            (1) in subsection (d)--
                    (A) the first sentence, by striking ``The 
                Secretary'' and inserting the following:
            ``(1) In general.--The Secretary'';
                    (B) in the second sentence, by striking ``Such 
                certifying agents'' and inserting the following:
            ``(2) Requirements.--Certifying agents''; and
                    (C) by adding at the end the following:
            ``(3) National organic certification cost-share program.--
                    ``(A) In general.--The Secretary, acting through 
                the Director of the Natural Resources Conservation 
                Service, shall establish a national organic 
                certification cost-share program in each State to 
                assist producers and handlers in the State in obtaining 
                certification under this subsection.
                    ``(B) Federal share.--
                            ``(i) In general.--Subject to clause (ii), 
                        the Secretary shall pay to each producer or 
                        handler participating in the program under this 
                        paragraph an amount equal to 75 percent of the 
                        costs incurred by the producer or handler in 
                        obtaining certification under this subsection, 
                        as certified to and approved by the Secretary.
                            ``(ii) Maximum amount of payment.--The 
                        maximum amount of a payment made to a producer 
                        or handler under this paragraph for a fiscal 
                        year shall be $750.
                    ``(C) Funding.--
                            ``(i) In general.--Not later than 30 days 
                        after the date of enactment of this paragraph, 
                        on October 1, 2007, and on each October 1 
                        thereafter through October 1, 2012, 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 $2,500,000, to remain available 
                        until expended.
                            ``(ii) Receipt and acceptance.--The 
                        Secretary shall be entitled to receive, shall 
                        accept, and shall use to carry out this section 
                        the funds transferred under paragraph (1), 
                        without further appropriation.''; and
            (2) by adding at the end the following:
    ``(e) Reimbursements for Infrastructure Necessary to Implement 
Organic Practice Standards.--
            ``(1) Establishment.--The Secretary, acting through the 
        Director of the Natural Resources Conservation Service, shall 
        establish a program to reimburse producers for the costs of--
                    ``(A) transitioning to organic food production; and
                    ``(B) developing and implementing infrastructure 
                and practices necessary to transition land and animals 
                to meet the requirements of this title.
            ``(2) Plan submission.--The Secretary may reimburse a 
        producer under this subsection only if the producer submits to 
        the Secretary an organic transition plan that contains a 
        description of--
                    ``(A) the expected costs of obtaining and 
                implementing necessary infrastructure and practices;
                    ``(B) the environmental and economic benefits 
                derived from the infrastructure or implementation of 
                organic practice standards; and
                    ``(C) an existing market or the reasonable 
                expectation of a future market for the products the 
                producer intends to produce.
            ``(3) Appropriate infrastructure and practice standards.--
        The Secretary shall reimburse producers under this subsection 
        only for the costs of--
                    ``(A) obtaining farm infrastructure necessary to 
                implement organic practice standards (including 
                livestock watering facilities, fencing, and organic 
                pest and weed control measures), on the condition that 
                the infrastructure is consistent with an approved plan 
                to transition to certified organic production;
                    ``(B) implementing organic livestock welfare 
                measures, on the condition that the measures are--
                            ``(i) necessary to implement an organic 
                        practice standard; and
                            ``(ii) consistent with an approved plan to 
                        transition to certified organic production;
                    ``(C) carrying out advanced organic practices, on 
                the condition that the practices are consistent with an 
                approved plan to transition to certified organic 
                production;
                    ``(D) obtaining technical assistance, including the 
                costs of developing an approved transition plan under 
                this section; and
                    ``(E) carrying out such other projects and 
                activities as the Secretary, after consultation with 
                the National Organic Standards Board, determines to be 
                appropriate.
            ``(4) Organic transition technical advice.--The Secretary 
        shall consult with the National Organic Standards Board with 
        respect to--
                    ``(A) the elements required to be included in a 
                plan approved under this subsection; and
                    ``(B) the identification and recommendation of ways 
                to facilitate the transition to organic production.
            ``(5) Maximum amount for transition reimbursement.--The 
        maximum amount of reimbursement paid to a producer for 
        transition to organic production under this subsection shall be 
        $10,000 for each fiscal year.
            ``(6) Eligible fiscal years.--A producer may receive 
        payments under this subsection for a period of not more than 4 
        consecutive fiscal years.
            ``(7) Transition reimbursements for organic producers.--A 
        certified organic producer participating in the national 
        organic program under this title shall be eligible to receive 
        reimbursement under this subsection to make the transition to 
        organic production for new land and livestock.
            ``(8) Limitation on reimbursements.--The Secretary shall 
        not enroll a producer under this subsection if, for any 
        particular agricultural product, the producers currently 
        enrolled in the program produce a quantity of that agricultural 
        product that is greater than 10 percent of the quantity of that 
        agricultural product produced by all producers certified under 
        this title on the date of enactment of this subsection.
            ``(9) Appeals.--An applicant seeking transition assistance 
        under this subsection shall have the right to appeal an adverse 
        decision by Secretary with regard to an application for 
        assistance in accordance with section 275 of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6995).
    ``(f) Technical Assistance.--The Secretary may provide technical 
assistance to producers to carry out subsections (d) and (e), including 
for use in entering into cooperative agreements with qualified entities 
under subsection (e) to implement the transition to organic production.
    ``(g) Reporting.--Not later than the first March 1 following the 
date of enactment of this subsection, and annually thereafter, the 
Secretary shall submit to the Committee on Agriculture of the House of 
Representatives, the Committee on Agriculture, Nutrition, and Forestry 
of the Senate, and the National Organic Standards Board a report that 
describes--
            ``(1) State-by-State expenditures on certification under 
        subsection (d), including the number of producers and handlers 
        served by the program under that subsection;
            ``(2) State-by-State expenditures on transition assistance 
        under subsection (e), including the number of producers served 
        by the program under that subsection;
            ``(3) the practices implemented under subsection (e) as a 
        result of assistance provided under that subsection; and
            ``(4) the effects of the programs under subsections (d) and 
        (e) on organic food production, including any recommendations 
        for reforms.
    ``(h) Funding.--
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of this subsection, on October 1, 2007, and on each 
        October 1 thereafter through October 1, 2012, 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 $35,000,000, to remain available until expended.
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.''.
    (b) Conforming Amendments.--
            (1) Section 2103 of the Organic Foods Production Act of 
        1990 (7 U.S.C. 6502) is amended--
                    (A) by redesignating paragraphs (20) and (21) as 
                paragraphs (21) and (22), respectively; and
                    (B) by inserting after paragraph (19) the 
                following:
            ``(20) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia;
                    ``(C) the Commonwealth of Puerto Rico; and
                    ``(D) any other territory or possession of the 
                United States.''.
            (2) Section 10606 of the Farm Security and Rural Investment 
        Act of 2002 (7 U.S.C. 6523) is repealed.

                       Subtitle B--Crop Insurance

SEC. 9011. PROVISION OF ORGANIC INSURANCE PROGRAMS.

    (a) Expected Market Price.--Section 508(c)(5)(C) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(c)(5)(C)) is amended--
            (1) in clause (iii), by striking ``or'' at the end;
            (2) in clause (iv), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(v) not later than October 1, 2009, in 
                        the case of organic commodities, shall be the 
                        expected or the actual organic market price of 
                        the agricultural commodity, as determined by 
                        the Corporation.''.
    (b) Surcharge Prohibition.--Section 508(d) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)) is amended by adding at the end the 
following:
            ``(4) Surcharge prohibition.--The Corporation may not 
        require producers to pay a premium surcharge for using 
        scientifically-sound, sustainable, and organic farming 
        practices and systems.''.

SEC. 9012. COVERAGE AREA FLEXIBILITY.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by adding at the end the following:
            ``(9) Coverage area flexibility.--Notwithstanding any other 
        provision of this title, in providing insurance under this 
        title, the Corporation shall provide flexibility to producers 
        to separate insurance units for each Farm Service Agency tract 
        or to use section equivalents where mile-square section surveys 
        are not in effect.''.

SEC. 9013. CROP INSURANCE INCENTIVES FOR BEGINNING FARMERS AND 
              RANCHERS.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended--
            (1) in paragraph (2), in the matter before subparagraph 
        (A), by striking ``paragraph (4)'' and inserting ``paragraphs 
        (4) and (6)''; and
            (2) by adding at the end the following:
            ``(6) Beginning farmers and ranchers.--
                    ``(A) In general.--The percentage of the premium 
                paid by the Corporation under subparagraphs (B) through 
                (G) of paragraph (2), shall be increased by 50 percent 
                for a beginning farmer or rancher (as defined in 
                section 7405(a) of the Farm Security and Rural 
                Investment Act of 2002 (7 U.S.C. 3319f(a))) during the 
                first year of farming or ranching operations.
                    ``(B) Subsequent years.--For each of the 5 years 
                subsequent to the first year of farming or ranching, 
                the percentage of the premium calculated in accordance 
                with subparagraph (A) shall be decreased by 10 
                percent.''.

SEC. 9014. CROP INSURANCE APPEALS FOR DENIAL OF CLAIMS.

    Section 508(j)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(j)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``subparagraph (B)'' and inserting 
                ``subparagraphs (B) and (C)''; and
                    (B) by striking ``only'';
            (2) by adding at the end the following:
                    ``(C) Alternative claims procedure.--The Secretary 
                shall establish alternative claims procedures--
                            ``(i) under which the Corporation, or an 
                        approved insurance provider, can settle appeals 
                        for denied claims; and
                            ``(ii) that uses the State committee of the 
                        Farm Service Agency as a third-party 
                        arbiter.''.

SEC. 9015. EXPANDED COVERAGE BASED ON HISTORICAL DATA.

    Section 522(d)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1522(d)(3)) is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(H) to develop policies or other risk management 
                tools that provide protection for all crops or 
                commodities produced commercially within each county, 
                using the historical production of the producers as the 
                basis for protection.''.

SEC. 9016. REAUTHORIZATION, EXPANSION, AND IMPROVEMENT OF ADJUSTED 
              GROSS REVENUE INSURANCE PILOT PROGRAM.

    (a) Reauthorization.--Section 523(e)(1) of the Federal Crop 
Insurance Act (7 U.S.C. 1523(e)(1)) is amended by striking ``2004 
reinsurance year'' and inserting ``2013 reinsurance year''.
    (b) Expansion.--Section 523(e)(2)(A) of the Federal Crop Insurance 
Act (7 U.S.C. 1523(e)(2)(A)) is amended by striking ``the Corporation'' 
and all that follows through ``Pennsylvania''and inserting ``the 
Corporation shall include in the adjusted gross revenue insurance pilot 
programs for each of the 2008 through 2013 reinsurance years all 
counties and States that meet the criteria for selection.''.
    (c) Specific Policy Improvements.--Section 523(e) of the Federal 
Crop Insurance Act (7 U.S.C. 1523(e)) is amended by adding at the end 
the following:
            ``(3) Specific requirements.--In carrying out the pilot 
        program under this subsection, the Corporation shall, to the 
        maximum extent practicable--
                    ``(A) offer higher coverage levels, including an 85 
                percent coverage level with an 100 percent payment 
                rate;
                    ``(B) in order to maintain adequate coverage levels 
                during low income years, provide a 10-percent floor to 
                declines in the 5-year income history of a producer, 
                which is used to determine coverage levels;
                    ``(C) include crop insurance payments and 
                noninsured crop disaster assistance as allowable income 
                in the 5-year average income history of a producer, 
                used in determining premium rates;
                    ``(D) conduct additional analysis to more 
                accurately reflect the risk of producing dairy and 
                livestock;
                    ``(E) provide clear and accurate information 
                regarding the coverage and inventory rules for 
                commodities with carryover inventory, including 
                Christmas trees, shellfish, nursery crops, and 
                livestock;
                    ``(F) include the perils of quarantine and bio-
                terrorism as insurable causes of loss;
                    ``(G) establish local market value for direct 
                marketers by using the best available estimate from 
                direct marketers rather than commercial buyers;
                    ``(H) require that the value for estimating the 
                revenue for the intention report of producers for the 
                current year be determined at the time the intentions 
                report is filed; and
                    ``(I) provide coverage levels that accurately 
                reflect the risk of a producer under conditions of 
                increasing intended revenue.
            ``(4) Exclusion from income requirement.--Effective 
        beginning on the date of enactment of this paragraph, the 
        Corporation shall eliminate any single crop income requirement 
        that excludes potatoes from the pilot program.
            ``(5) Covered animals.--Effective beginning on the date of 
        enactment of this paragraph, the Corporation shall revise the 
        definition of `animals' that are eligible for coverage under 
        the pilot program to ensure that the definition includes--
                    ``(A) animals in production agriculture;
                    ``(B) fryers and shellfish from licensed commercial 
                producers under the local approving authority in a 
                certified growing area; and
                    ``(C) livestock grown under contract, if the 
                producer can demonstrate an insurable interest in the 
                livestock.
            ``(6) Beginning farmers and ranchers.--The Corporation 
        shall provide opportunities for beginning farmers and ranchers 
        (as defined in section 7405(a) of the Farm Security and Rural 
        Investment Act of 2002 (7 U.S.C. 3319f(a))) to participate in 
        the adjusted gross revenue insurance pilot program, including 
        by providing premium rates to be established based on the 
        historical information of similar farms and ranches.
            ``(7) Small farmers and ranchers.--The Corporation shall 
        develop a small farm revenue assurance pilot program to provide 
        small farmers and ranchers (as defined by the Secretary) with 
        access to streamlined, reasonably-priced risk management 
        products.
            ``(8) Equitable treatment of all income tax filers.--The 
        Corporation shall revise program requirements to ensure that 
        producers that have a taxable year other than the calendar year 
        are treated equitably to calendar year tax filers, including 
        requirements for--
                    ``(A) payment of premiums during or after the 
                insurance year; and
                    ``(B) multiple years of the intention report of a 
                producer.
            ``(9) Commodities produced for feed.--The Corporation shall 
        revise program requirements to include commodities produced for 
        on-farm feed as an intended commodity.''.

SEC. 9017. AGRICULTURAL MANAGEMENT ASSISTANCE PROGRAM.

    Section 524(b)(4)(B)) of the Federal Crop Insurance Act (7 U.S.C. 
1524(b)(4)(B)) is amended--
            (1) in clause (ii)--
                    (A) by striking ``fiscal years 2003 through 2007'' 
                and inserting ``fiscal years 2008 through 2013''; and
                    (B) by striking ``$20,000,000'' and inserting 
                ``$40,000,000''; and
            (2) in clause (iii)--
                    (A) by striking ``fiscal years 2004 through 2007'' 
                and inserting ``fiscal years 2008 through 2013'';
                    (B) in subclause (I), by striking ``$14,000,000'' 
                and inserting ``$19,000,000'';
                    (C) in subclause (II), by striking ``$1,000,000'' 
                and inserting ``$2,000,000''; and
                    (D) in subclause (III), by striking ``$5,000,000'' 
                and inserting ``$19,000,000''.

SEC. 9018. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

    Section 524(a)(3)(C) of the Federal Crop Insurance Act (7 U.S.C. 
1524(a)(3)(C)) is amended by striking ``2-year'' and inserting ``3-
year''.

                     Subtitle C--General Provisions

SEC. 9021. COLONY COLLAPSE DISORDER.

    The Secretary, acting through the Administrator of the Agricultural 
Research Service, shall use not less than $250,000,000 during the 10-
year period beginning on the date of enactment of this Act to carry out 
a study of honeybees and the 1 or more causes of colony collapse 
disorder.

SEC. 9022. 100-PERCENT EXCLUSION OF GAIN ON SALES OF CONSERVATION 
              EASEMENTS ON FARMLAND TO ELIGIBLE ENTITIES FOR 
              CONSERVATION PURPOSES.

    (a) In General.--Part I of subchapter P of chapter 1 of the 
Internal Revenue Code of 1986 (relating to treatment of capital gains) 
is amended by adding at the end the following new section:

``SEC. 1203. 100-PERCENT EXCLUSION OF GAIN ON SALES OF CONSERVATION 
              EASEMENTS ON FARMLAND TO ELIGIBLE ENTITIES FOR 
              CONSERVATION PURPOSES.

    ``(a) Exclusion.--Gross income shall not include 100 percent of any 
gain from the sale of any conservation easement that is evidenced by a 
permanent deed restriction and that requires that the eligible farmland 
subject to the deed restriction be made available for agricultural 
production if such eligible farmland was owned by the taxpayer or a 
member of the taxpayer's family (as defined in section 2032A(e)(2)) at 
all times during the 3-year period ending on the date of the sale.
    ``(b) Eligible Entity.--For purposes of this section, the term 
`eligible entity' means--
            ``(1) any agency of the United States or of any State or 
        local government, or
            ``(2) any other organization that--
                    ``(A) is organized and at all times operated 
                principally for 1 or more of the conservation purposes 
                specified in clause (i), (ii), or (iii) of section 
                170(h)(4)(A),
                    ``(B) is described in section 501(c)(3) and exempt 
                from tax under section 501(a), and
                    ``(C) meets the requirements of--
                            ``(i) section 509(a)(2), or
                            ``(ii) section 509(a)(3) and is controlled 
                        by an organization described in section 
                        509(a)(2).
    ``(c) Eligible Farmland.--For purposes of this section--
            ``(1) Eligible farmland.--The term `eligible farmland' 
        means farmland comprised of at least 50 percent of any 
        combination of prime, unique, or statewide or locally important 
        farmland.
            ``(2) Farmland.--The term `farmland' includes all land 
        capable of being used for agricultural production.
            ``(3) Prime farmland.--The term `prime farmland' means 
        farmland that has the best combination of physical and chemical 
        characteristics for producing food, feed, fiber, forage, 
        oilseed, and other agricultural crops with minimum inputs of 
        fuel, fertilizer, pesticides, and labor, and without 
        intolerable soil erosion, as determined by the Secretary of 
        Agriculture. Such term includes farmland that possesses the 
        characteristics described in the preceding sentence, but is 
        being used currently to produce livestock and timber. Such term 
        does not include farmland already in or committed to urban 
        development or water storage.
            ``(4) Unique farmland.--The term `unique farmland' means 
        farmland, other than prime farmland, that is used for 
        production of specific high-value food and fiber crops, as 
        determined by the Secretary of Agriculture. Such term includes 
        farmland with the special combination of soil quality, 
        location, growing season, and moisture supply needed to 
        economically produce sustained high quality or high yields of 
        specific crops when treated and managed according to acceptable 
        farming methods, including such crops as citrus, tree nuts, 
        olives, cranberries, fruits, and vegetables.
            ``(5) Statewide or locally important farmland.--The term 
        `statewide or locally important farmland' means farmland, other 
        than prime or unique farmland, that is of statewide or local 
        importance for the production of food, feed, fiber, forage, or 
        oilseed crops, as determined by the appropriate State or unit 
        of local government agency or agencies, and that the Secretary 
        of Agriculture determines should be considered as such farmland 
        for purposes of this section.''.
    (b) Conforming Amendment.--The table of sections for part I of 
subchapter P of chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 1203. 100-percent exclusion of gain on sales of development 
                            rights or conservation easements on 
                            farmland to eligible entities for 
                            conservation purposes.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales occurring on or after the date of the enactment of this 
Act.
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