316 
† HR 2642 EAS 
(2) FUNDING.— 
(A) USE OF PRIOR YEAR FUNDS.—Notwith-
standing the repeal of section 1243 of the Food 
Security Act of 1985 (16 U.S.C. 3843), any 
funds made available from the Commodity Cred-
it Corporation to carry out the cooperative con-
servation partnership initiative under that sec-
tion for fiscal years 2009 through 2013 shall be 
made available to carry out contracts and agree-
ments referred to in paragraph (1) that were en-
tered into prior to October 1, 2013 (including the 
provision of technical assistance). 
(B) OTHER.—On exhaustion of funds made 
available under subparagraph (A), the Secretary 
may use funds made available to carry out the 
regional 
conservation 
partnerships 
program 
under subtitle I of title XII of the Food Security 
Act of 1985, as added by section 2401, to con-
tinue to carry out contracts and agreements re-
ferred to in paragraph (1) using the provisions 
of law and regulation applicable to such con-
tracts and agreements as in existence on Sep-
tember 30, 2013. 
(c) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2013.
317 
† HR 2642 EAS 
SEC. 2711. ENVIRONMENTAL EASEMENT PROGRAM. 
Chapter 3 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3839 et seq.) is repealed. 
SEC. 2712. TECHNICAL AMENDMENTS. 
(a) Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended in the matter preceding 
paragraph (1) by striking ‘‘E’’ and inserting ‘‘I’’. 
(b) Section 1211(a) of the Food Security Act of 1985 
(16 U.S.C. 3811(a)) is amended by striking ‘‘predominate’’ 
each place it appears and inserting ‘‘predominant’’. 
(c) Section 1242(i) of the Food Security Act of 1985 
(16 U.S.C. 3842(i)) is amended in the subsection heading 
by striking ‘‘SPECIALITY’’ and inserting ‘‘SPECIALTY’’. 
TITLE III—TRADE 
Subtitle A—Food for Peace Act 
SEC. 3001. SET-ASIDE FOR SUPPORT FOR ORGANIZATIONS 
THROUGH WHICH NONEMERGENCY ASSIST-
ANCE IS PROVIDED. 
Effective October 1, 2013, section 202(e)(1) of the Food 
for Peace Act (7 U.S.C. 1722(e)(1)) is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘13 percent’’ and inserting ‘‘15 percent’’; 
and 
(2) in subparagraph (A), by striking ‘‘new’’ and 
inserting ‘‘and enhancing’’.
318 
† HR 2642 EAS 
SEC. 3002. FOOD AID QUALITY. 
Section 202(h) of the Food for Peace Act (7 U.S.C. 
1722(h)) is amended— 
(1) by striking paragraph (1) and inserting the 
following: 
‘‘(1) IN GENERAL.—The Administrator shall use 
funds made available for fiscal year 2014 and subse-
quent fiscal years to carry out this title— 
‘‘(A) to assess the types and quality of agri-
cultural commodities and products donated for 
food aid; 
‘‘(B) to adjust products and formulations, 
including 
potential 
introduction 
of 
new 
fortificants and products, as necessary to cost-ef-
fectively meet nutrient needs of target popu-
lations; 
‘‘(C) to test prototypes; 
‘‘(D) to adopt new specifications or improve 
existing specifications for micronutrient fortified 
food aid products, based on the latest develop-
ments in food and nutrition science, and in co-
ordination with other international partners; 
‘‘(E) to develop new program guidance to 
facilitate improved matching of products to pur-
poses having nutritional intent, in coordination 
with other international partners;
319 
† HR 2642 EAS 
‘‘(F) to develop improved guidance for im-
plementing partners on how to address nutri-
tional deficiencies that emerge among recipients 
for whom food assistance is the sole source of diet 
in emergency programs that extend beyond 1 
year, in coordination with other international 
partners; and 
‘‘(G) to evaluate, in appropriate settings 
and as necessary, the performance and cost-effec-
tiveness of new or modified specialized food prod-
ucts and program approaches designed to meet 
the nutritional needs of the most vulnerable 
groups, such as pregnant and lactating mothers, 
and children under the age of 5.’’; and 
(2) in paragraph (3), by striking ‘‘2011’’ and in-
serting ‘‘2018’’. 
SEC. 3003. MINIMUM LEVELS OF ASSISTANCE. 
Section 204(a) of the Food for Peace Act (7 U.S.C. 
1724(a)) is amended— 
(1) in paragraph (1), by striking ‘‘2012’’ and in-
serting ‘‘2018’’; and 
(2) in paragraph (2), by striking ‘‘2012’’ and in-
serting ‘‘2018’’.
320 
† HR 2642 EAS 
SEC. 3004. REAUTHORIZATION OF FOOD AID CONSULT-
ATIVE GROUP. 
Section 205(f) of the Food for Peace Act (7 U.S.C. 
1725(f)) is amended by striking ‘‘2012’’ and inserting 
‘‘2018’’. 
SEC. 3005. OVERSIGHT, MONITORING, AND EVALUATION OF 
FOOD FOR PEACE ACT PROGRAMS. 
Section 207(f) of the Food for Peace Act (7 U.S.C. 
1726a(f)) is amended— 
(1) by striking paragraph (4) and redesignating 
paragraphs (5) and (6) as paragraphs (4) and (5), 
respectively; and 
(2) in subparagraph (A) of paragraph (5) (as so 
redesignated)— 
(A) by striking ‘‘2012’’ and inserting 
‘‘2018’’; and 
(B) by striking ‘‘during fiscal year 2009’’ 
and inserting ‘‘during the period of fiscal years 
2014 through 2018’’. 
SEC. 3006. ASSISTANCE FOR STOCKPILING AND RAPID 
TRANSPORTATION, 
DELIVERY, 
AND 
DIS-
TRIBUTION OF SHELF-STABLE PREPACKAGED 
FOODS. 
Section 208(f) of the Food for Peace Act (7 U.S.C. 
1726b(f)) is amended by striking ‘‘2012’’ and inserting 
‘‘2018’’.
321 
† HR 2642 EAS 
SEC. 3007. LIMITATION ON TOTAL VOLUME OF COMMOD-
ITIES MONETIZED. 
Section 403 of the Food for Peace Act (7 U.S.C. 1733) 
is amended by adding at the end the following: 
‘‘(m) LIMITATION
ON MONETIZATION
OF COMMOD-
ITIES.— 
‘‘(1) LIMITATION.— 
‘‘(A) IN
GENERAL.—Unless the Adminis-
trator grants a waiver under paragraph (2), no 
commodity may be made available under this 
Act unless the rate of return for the commodity 
(as determined under subparagraph (B)) is at 
least 70 percent. 
‘‘(B) RATE OF RETURN.—For purposes of 
subparagraph (A), the rate of return shall be 
equal to the proportion that— 
‘‘(i) the proceeds the implementing 
partners generate through monetization; 
bears to 
‘‘(ii) the cost to the Federal Govern-
ment to procure and ship the commodities 
to a recipient country for monetization. 
‘‘(2) WAIVER
AUTHORITY.—The Administrator 
may waive the application of the limitation in para-
graph (1) with regard to a commodity for a recipient 
country if the Administrator determines that it is
322 
† HR 2642 EAS 
necessary to achieve the purposes of this Act in the re-
cipient country. 
‘‘(3) REPORT.—Not later than 90 days after a 
waiver is granted under paragraph (2), the Adminis-
trator shall prepare, publish in the Federal Register, 
and submit to the Committees on Foreign Affairs, Ag-
riculture, and Appropriations of the House of Rep-
resentatives, and the Committees on Appropriations, 
Foreign Relations, and Agriculture, Nutrition, and 
Forestry of the Senate a report that— 
‘‘(A) contains the reasons for granting the 
waiver and the actual rate of return for the com-
modity; and 
‘‘(B) includes for the commodity the costs of 
bagging or further processing, ocean transpor-
tation, inland transportation in the recipient 
country, storage costs, and any other informa-
tion that the Administrator determines to be nec-
essary.’’. 
SEC. 3008. FLEXIBILITY. 
Section 406 of the Food for Peace Act (7 U.S.C. 1736) 
is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and
323 
† HR 2642 EAS 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) FLEXIBILITY.—Notwithstanding any other provi-
sion of law and as necessary to achieve the purposes of this 
Act, funds available under this Act may be used to pay the 
costs of up to 20 percent of activities conducted in recipient 
countries by nonprofit voluntary organizations, coopera-
tives, or intergovernmental agencies or organizations.’’. 
SEC. 3009. PROCUREMENT, TRANSPORTATION, TESTING, 
AND STORAGE OF AGRICULTURAL COMMOD-
ITIES FOR PREPOSITIONING IN THE UNITED 
STATES AND FOREIGN COUNTRIES. 
Section 407 of the Food for Peace Act (7 U.S.C. 1736a) 
is amended— 
(1) in subparagraph (c)(4)(A)— 
(A) by striking ‘‘2012’’ and inserting 
‘‘2018’’; and 
(B) by striking ‘‘for each such fiscal year 
not more than $10,000,000 of such funds’’ and 
inserting ‘‘for each of fiscal years 2001 through 
2012 not more than $10,000,000 of such funds 
and for each of fiscal years 2014 through 2018 
not more than $15,000,000 of such funds’’; and 
(2) by adding at the end the following:
324 
† HR 2642 EAS 
‘‘(g) FUNDING
FOR TESTING
OF FOOD AID SHIP-
MENTS.—Funds made available for agricultural products 
acquired under this Act and section 3107 of the Farm Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 1736o– 
1) may be used to pay for the testing of those agricultural 
products.’’. 
SEC. 3010. DEADLINE FOR AGREEMENTS TO FINANCE SALES 
OR TO PROVIDE OTHER ASSISTANCE. 
Section 408 of the Food for Peace Act (7 U.S.C. 1736b) 
is amended by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 3011. MINIMUM LEVEL OF NONEMERGENCY FOOD AS-
SISTANCE. 
Section 412 of the Food for Peace Act (7 U.S.C. 1736f) 
is amended by striking subsection (e) and inserting the fol-
lowing: 
‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD AS-
SISTANCE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), of 
the amounts made available to carry out emergency 
and nonemergency food assistance programs under 
title II, not less than 20 nor more than 30 percent for 
each of fiscal years 2014 through 2018 shall be ex-
pended for nonemergency food assistance programs 
under title II.
325 
† HR 2642 EAS 
‘‘(2) MINIMUM LEVEL.—The amount made avail-
able to carry out nonemergency food assistance pro-
grams under title II shall not be less than 
$275,000,000 for any fiscal year.’’. 
SEC. 3012. COORDINATION OF FOREIGN ASSISTANCE PRO-
GRAMS REPORT. 
Section 413 of the Food for Peace Act (7 U.S.C. 1736g) 
is amended— 
(1) by striking ‘‘(a) IN GENERAL.—To the max-
imum’’ and inserting ‘‘To the maximum’’; and 
(2) by striking subsection (b). 
SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS. 
(a) ELIMINATION
OF
OBSOLETE
REFERENCE
TO 
STUDY.—Section 415(a)(2)(B) of the Food for Peace Act (7 
U.S.C. 1736g–2(a)(2)(B)) is amended by striking ‘‘, using 
recommendations’’ and all that follows through ‘‘quality en-
hancements’’. 
(b) EXTENSION.—Section 415(c) of the Food for Peace 
Act (7 U.S.C. 1736g–2(c)) is amended by striking ‘‘2012’’ 
and inserting ‘‘2018’’. 
SEC. 3014. JOHN OGONOWSKI AND DOUG BEREUTER FARM-
ER-TO-FARMER PROGRAM. 
Section 501 of the Food for Peace Act (7 U.S.C. 1737) 
is amended— 
(1) in subsection (d)—
326 
† HR 2642 EAS 
(A) by striking ‘‘0.5 percent’’ and inserting 
‘‘0.6 percent’’; and 
(B) by striking ‘‘2012’’ and inserting 
‘‘2018’’; and 
(2) in subsection (e)(1), by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
SEC. 3015. PROHIBITION ON ASSISTANCE FOR NORTH 
KOREA. 
(a) IN GENERAL.—No amounts may be obligated or 
expended to provide assistance under title II of the Food 
for Peace Act (7 U.S.C. 1721 et seq.) to the Democratic Peo-
ple’s Republic of Korea. 
(b) NATIONAL INTEREST WAIVER.—The President 
may waive subsection (a) if the President determines and 
certifies to the Committees on Agriculture, Nutrition, and 
Forestry and Foreign Relations of the Senate and the Com-
mittees on Agriculture and Foreign Affairs of the House 
of Representatives that the waiver is in the national interest 
of the United States. 
Subtitle B—Agricultural Trade Act 
of 1978 
SEC. 3101. EXPORT CREDIT GUARANTEE PROGRAMS. 
Section 211 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641) is amended by striking subsection (b) and in-
serting the following:
327 
† HR 2642 EAS 
‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—The 
Commodity Credit Corporation shall make available for 
each of fiscal years 2014 through 2018 credit guarantees 
under section 202(a) in an amount equal to not more than 
$4,500,000,000 in credit guarantees.’’. 
SEC. 3102. FUNDING FOR MARKET ACCESS PROGRAM. 
Section 211(c)(1)(A) of the Agricultural Trade Act of 
1978 (7 U.S.C. 5641(c)(1)(A)) is amended by striking 
‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 3103. FOREIGN MARKET DEVELOPMENT COOPERATOR 
PROGRAM. 
Section 703(a) of the Agricultural Trade Act of 1978 
(7 U.S.C. 5723(a)) is amended by striking ‘‘2012’’ and in-
serting ‘‘2018’’. 
Subtitle C—Other Agricultural 
Trade Laws 
SEC. 3201. FOOD FOR PROGRESS ACT OF 1985. 
(a) EXTENSION.—The Food for Progress Act of 1985 
(7 U.S.C. 1736o) is amended— 
(1) in subsection (f)(3), by striking ‘‘2012’’ and 
inserting ‘‘2018’’; 
(2) in subsection (g), by striking ‘‘2012’’ and in-
serting ‘‘2018’’; 
(3) in subsection (k), by striking ‘‘2012’’ and in-
serting ‘‘2018’’; and
328 
† HR 2642 EAS 
(4) in subsection (l)(1), by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
(b) REPEAL OF COMPLETED PROJECT.—Subsection (f) 
of the Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
amended by striking paragraph (6). 
(c) FLEXIBILITY.—The Food for Progress Act of 1985 
(7 U.S.C. 1736o) is amended in subsection (l) by adding 
at the end the following: 
‘‘(5) FLEXIBILITY.—Notwithstanding any other 
provision of law and as necessary to achieve the pur-
poses of this Act, funds available under this Act may 
be used to pay the costs of up to 20 percent of activi-
ties conducted in recipient countries by nonprofit vol-
untary organizations, cooperatives, or intergovern-
mental agencies or organizations.’’. 
(d) LIMITATION ON TOTAL VOLUME OF COMMODITIES 
MONETIZED.—The Food for Progress Act of 1985 (7 U.S.C. 
1736o) is amended by adding at the end the following: 
‘‘(p) LIMITATION
ON MONETIZATION
OF COMMOD-
ITIES.— 
‘‘(1) LIMITATION.— 
‘‘(A) IN
GENERAL.—Unless the Secretary 
grants a waiver under paragraph (2), no eligible 
commodity may be made available under this 
section unless the rate of return for the eligible
329 
† HR 2642 EAS 
commodity (as determined under subparagraph 
(B)) is at least 70 percent. 
‘‘(B) RATE OF RETURN.—For purposes of 
subparagraph (A), the rate of return shall be 
equal to the proportion that— 
‘‘(i) the proceeds the implementing 
partners generate through monetization; 
bears to 
‘‘(ii) the cost to the Federal Govern-
ment to procure and ship the eligible com-
modities to a recipient country for mone-
tization. 
‘‘(2) WAIVER AUTHORITY.—The Secretary may 
waive the application of the limitation in paragraph 
(1) with regard to an eligible commodity for a recipi-
ent country if the Secretary determines that it is nec-
essary to achieve the purposes of this Act in the re-
cipient country. 
‘‘(3) REPORT.—Not later than 90 days after a 
waiver is granted under paragraph (2), the Secretary 
shall prepare, publish in the Federal Register, and 
submit to the Committees on Foreign Affairs, Agri-
culture, and Appropriations of the House of Rep-
resentatives, and the Committees on Appropriations,
330 
† HR 2642 EAS 
Foreign Relations, and Agriculture, Nutrition, and 
Forestry of the Senate a report that— 
‘‘(A) contains the reasons for granting the 
waiver and the actual rate of return for the eligi-
ble commodity; and 
‘‘(B) includes for the commodity the costs of 
bagging or further processing, ocean transpor-
tation, inland transportation in the recipient 
country, storage costs, and any other informa-
tion that the Secretary determines to be nec-
essary.’’. 
SEC. 3202. BILL EMERSON HUMANITARIAN TRUST. 
Section 302 of the Bill Emerson Humanitarian Trust 
Act (7 U.S.C. 1736f–1) is amended— 
(1) in subsection (b)(2)(B)(i), by striking ‘‘2012’’ 
both places it appears and inserting ‘‘2018’’; and 
(2) in subsection (h), by striking ‘‘2012’’ both 
places it appears and inserting ‘‘2018’’. 
SEC. 3203. PROMOTION OF AGRICULTURAL EXPORTS TO 
EMERGING MARKETS. 
(a) DIRECT CREDITS OR EXPORT CREDIT GUARAN-
TEES.—Section 1542(a) of the Food, Agriculture, Conserva-
tion, and Trade Act of 1990 (Public Law 101–624; 7 U.S.C. 
5622 note) is amended by striking ‘‘2012’’ and inserting 
‘‘2018’’.
331 
† HR 2642 EAS 
(b) DEVELOPMENT
OF AGRICULTURAL SYSTEMS.— 
Section 1542(d)(1)(A)(i) of the Food, Agriculture, Con-
servation, and Trade Act of 1990 (Public Law 101–624; 
7 U.S.C. 5622 note) is amended by striking ‘‘2012’’ and 
inserting ‘‘2018’’. 
SEC. 3204. MCGOVERN-DOLE INTERNATIONAL FOOD FOR 
EDUCATION AND CHILD NUTRITION PRO-
GRAM. 
(a) REAUTHORIZATION.—Section 3107(l)(2) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
1736o–1(l)(2)) is amended by striking ‘‘2012’’ and insert-
ing ‘‘2018’’. 
(b) TECHNICAL CORRECTION.—Section 3107(d) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
1736o–1(d)) is amended by striking ‘‘to’’ in the matter pre-
ceding paragraph (1). 
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 
(a) PURPOSE.—Section 3205(b) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 5680(b)) is 
amended by striking ‘‘related barriers to trade’’ and insert-
ing ‘‘technical barriers to trade’’. 
(b) FUNDING.—Section 3205(e)(2) of the Farm Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 
5680(e)(2)) is amended—
332 
† HR 2642 EAS 
(1) by inserting ‘‘and’’ at the end of subpara-
graph (C); and 
(2) by striking subparagraphs (D) and (E) and 
inserting the following new subparagraph: 
‘‘(D) $9,000,000 for each of fiscal years 
2011 through 2018.’’. 
SEC. 3206. GLOBAL CROP DIVERSITY TRUST. 
Section 3202(c) of the Food, Conservation, and Energy 
Act of 2008 (Public Law 110–246; 22 U.S.C. 2220a note) 
is amended by striking ‘‘2008 through 2012’’ and inserting 
‘‘2014 through 2018’’. 
SEC. 3207. LOCAL AND REGIONAL FOOD AID PROCUREMENT 
PROJECTS. 
Section 3206 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 1726c) is amended— 
(1) in subsection (b)— 
(A) by striking ‘‘(b) STUDY; FIELD-BASED 
PROJECTS.—’’ and all that follows through ‘‘(2) 
FIELD-BASED PROJECTS.—’’ and inserting the 
following: 
‘‘(b) FIELD-BASED PROJECTS.—’’; 
(B) by redesignating subparagraphs (A) 
and (B) as paragraphs (1) and (2), respectively, 
and indenting appropriately;
333 
† HR 2642 EAS 
(C) in paragraph (1) (as so redesignated), 
by striking ‘‘subparagraph (B)’’ and inserting 
‘‘paragraph (2)’’; and 
(D) in paragraph (2) (as so redesignated), 
by striking ‘‘subparagraph (A)’’ and inserting 
‘‘paragraph (1)’’; 
(2) in subsection (c)(1), by striking ‘‘subsection 
(b)(2)’’ and inserting ‘‘subsection (b)’’; 
(3) by striking subsections (d), (f), and (g); 
(4) by redesignating subsection (e) as subsection 
(d); 
(5) in subsection (d) (as so redesignated)— 
(A) in paragraph (2)— 
(i) by striking subparagraph (B); and 
(ii) in subparagraph (A)— 
(I) by striking ‘‘(A) APPLICA-
TION.—’’ and all that follows through 
‘‘To be eligible’’ in clause (i) and in-
serting the following: 
‘‘(A) IN GENERAL.—To be eligible’’; 
(II) by redesignating clause (ii) 
as subparagraph (B) and indenting 
appropriately; and 
(III) in subparagraph (B) (as so 
redesignated), by striking ‘‘clause (i)’’
334 
† HR 2642 EAS 
and inserting ‘‘subparagraph (A)’’; 
and 
(B) by striking paragraph (4); and 
(6) by adding at the end the following: 
‘‘(e) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $60,000,000 for each of fiscal years 2014 
through 2018. 
‘‘(2) PREFERENCE.—In carrying out this sec-
tion, the Secretary may give a preference to eligible 
organizations that have, or are working toward, 
projects under the McGovern-Dole International Food 
for Education and Child Nutrition Program estab-
lished under section 3107 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 1736o–1). 
‘‘(3) REPORTING.—Each year, the Secretary 
shall submit to the appropriate committees of Con-
gress a report that describes the use of funds under 
this section, including— 
‘‘(A) the impact of procurements and 
projects on— 
‘‘(i) local and regional agricultural 
producers; and
335 
† HR 2642 EAS 
‘‘(ii) markets and consumers, including 
low-income consumers; and 
‘‘(B) implementation time frames and 
costs.’’. 
SEC. 3208. DONALD PAYNE HORN OF AFRICA FOOD RESIL-
IENCE PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) 
ADMINISTRATOR.—The 
term 
‘‘Adminis-
trator’’ means the Administrator of the Agency for 
International Development. 
(2) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate; 
(B) the Committee on Agriculture of the 
House of Representatives; 
(C) the Committee on Foreign Relations of 
the Senate; and 
(D) the Committee on Foreign Affairs of the 
House of Representatives. 
(3) ELIGIBLE ORGANIZATION.—The term ‘‘eligi-
ble organization’’ means an organization that is—
336 
† HR 2642 EAS 
(A) a private voluntary organization or co-
operative that is, to the extent practicable, reg-
istered with the Administrator; or 
(B) an intergovernmental organization, 
such as the World Food Program. 
(4) HORN OF AFRICA.—The term ‘‘Horn of Afri-
ca’’ means the countries of— 
(A) Ethiopia; 
(B) Somalia; 
(C) Kenya; 
(D) Djibouti; 
(E) Eritrea; 
(F) South Sudan; 
(G) Uganda; and 
(H) such other countries as the Adminis-
trator determines to be appropriate after pro-
viding notification to the appropriate committees 
of Congress. 
(5) 
RESILIENCE.—The 
term 
‘‘resilience’’ 
means— 
(A) the capacity to mitigate the negative 
impacts of crises (including natural disasters, 
conflicts, and economic shocks) in order to reduce 
loss of life and depletion of productive assets;
337 
† HR 2642 EAS 
(B) the capacity to respond effectively to 
crises, ensuring basic needs are met in a way 
that is integrated with long-term development ef-
forts; and 
(C) the capacity to recover and rebuild after 
crises so that future shocks can be absorbed with 
less need for ongoing external assistance. 
(b) PURPOSE.—The purpose of this section is to estab-
lish a pilot program to effectively integrate all United 
States-funded emergency and long-term development activi-
ties that aim to improve food security in the Horn of Africa, 
building resilience so as— 
(1) to reduce the impacts of future crises; 
(2) to enhance local capacity for emergency re-
sponse; 
(3) to enhance sustainability of long-term devel-
opment programs targeting poor and vulnerable 
households; and 
(4) to reduce the need for repeated costly emer-
gency operations. 
(c) STUDY.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of enactment of this Act, the Administrator 
shall initiate a study of prior programs to support re-
silience in the Horn of Africa conducted by—
338 
† HR 2642 EAS 
(A) other donor countries; 
(B) private voluntary organizations; 
(C) the World Food Program of the United 
Nations; and 
(D) multilateral institutions, including the 
World Bank. 
(2) REQUIREMENTS.—The study shall— 
(A) include all programs implemented 
through the Agency for International Develop-
ment, the Department of Agriculture, the Depart-
ment of the Treasury, the Millennium Challenge 
Corporation, the Peace Corps, and other relevant 
Federal agencies; 
(B) evaluate how well the programs de-
scribed in subparagraph (A) work together to 
complement each other and leverage impacts 
across programs; 
(C) include recommendations for how full 
integration of efforts can be achieved; and 
(D) evaluate the degree to which country-led 
development plans support programs that in-
crease resilience, including review of the invest-
ments by each country in nutrition and safety 
nets.
339 
† HR 2642 EAS 
(3) REPORT.—Not later than 180 days after the 
date of enactment of this Act, the Administrator shall 
submit to the appropriate committees of Congress a 
report containing the results of the study. 
(d) FIELD-BASED PROJECT GRANTS OR COOPERATIVE 
AGREEMENTS.— 
(1) IN GENERAL.—The Administrator shall— 
(A) provide grants to, or enter into coopera-
tive agreements with, eligible organizations to 
carry out field-based projects that build resilience 
in the Horn of Africa in accordance with this 
section; and 
(B) develop a project approval process to 
ensure full integration of efforts. 
(2) REQUIREMENTS
OF
ELIGIBLE
ORGANIZA-
TIONS.— 
(A) APPLICATION.—To be eligible to receive 
a grant from, or enter into a cooperative agree-
ment with, the Administrator under this sub-
section, an eligible organization shall submit to 
the Administrator an application by such date, 
in such manner, and containing such informa-
tion as the Administrator may require. 
(B) COMPLETION REQUIREMENT.—To be el-
igible to receive a grant from, or enter into a co-
340 
† HR 2642 EAS 
operative agreement with, the Administrator 
under this subsection, an eligible organization 
shall agree— 
(i) to collect, not later than September 
30, 2016, data containing the information 
required under subsection (f)(2) relating to 
the field-based project funded through the 
grant or cooperative agreement; and 
(ii) to provide to the Administrator the 
data collected under clause (i). 
(3) REQUIREMENTS OF ADMINISTRATOR.— 
(A) PROJECT DIVERSITY.— 
(i) IN GENERAL.—Subject to clause (ii) 
and subparagraph (B), in selecting pro-
posals for field-based projects to fund under 
this section, the Administrator shall select a 
diversity of projects, including projects lo-
cated in— 
(I) areas most prone to repeated 
crises; 
(II) areas with effective existing 
resilience programs that can be scaled; 
and 
(III) areas in all countries of the 
Horn of Africa.
341 
† HR 2642 EAS 
(ii) PRIORITY.—In selecting proposals 
for field-based projects under clause (i), the 
Administrator shall ensure that the selected 
proposals are for field-based projects that— 
(I) effectively integrate emergency 
and long-term development programs 
to improve sustainability; 
(II) demonstrate the potential to 
reduce the need for future emergency 
assistance; and 
(III) build targeted productive 
safety nets, in coordination with host 
country governments, through food for 
work, cash for work, and other proven 
program methodologies. 
(B) 
AVAILABILITY.—The 
Administrator 
shall not award a grant or cooperative agree-
ment or approve a field-based project under this 
subsection until the date on which the Adminis-
trator promulgates regulations or issues guide-
lines under subsection (e). 
(e) REGULATIONS; GUIDELINES.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of completion of the study under subsection 
(c), the Administrator shall promulgate regulations or
342 
† HR 2642 EAS 
issue guidelines to carry out field-based projects under 
this section. 
(2) REQUIREMENTS.—In promulgating regula-
tions or issuing guidelines under paragraph (1), the 
Administrator shall— 
(A) take into consideration the results of the 
study described in subsection (c); and 
(B) provide an opportunity for public re-
view and comment. 
(f) REPORT.— 
(1) IN GENERAL.—Not later than November 1, 
2016, the Administrator shall submit to the appro-
priate committees of Congress a report that— 
(A) addresses each factor described in para-
graph (2); and 
(B) is conducted in accordance with this 
section. 
(2) REQUIRED FACTORS.—The report shall in-
clude baseline and end-of-project data that meas-
ures— 
(A) the prevalence of moderate and severe 
hunger so as to provide an accurate accounting 
of project impact on household access to and con-
sumption of food during every month of the year 
prior to data collection;
343 
† HR 2642 EAS 
(B) household ownership of and access to 
productive assets, including at a minimum land, 
livestock, homes, equipment, and other materials 
assets needed for income generation; 
(C) household incomes, including informal 
sources of employment; and 
(D) the productive assets of women using 
the Women’s Empowerment in Agriculture 
Index. 
(3) PUBLIC
ACCESS
TO
RECORDS
AND
RE-
PORTS.—Not later than 90 days after the date on 
which the report is submitted under paragraph (1), 
the Administrator shall provide public access to the 
report. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2014 through 2018. 
SEC. 3209. UNDER SECRETARY OF AGRICULTURE FOR 
TRADE AND FOREIGN AGRICULTURAL AF-
FAIRS. 
(a) DEFINITION OF AGRICULTURE COMMITTEES AND 
SUBCOMMITTEES.—In this section, the term ‘‘agriculture 
committees and subcommittees’’ means— 
(1) the Committee on Agriculture of the House of 
Representatives;
344 
† HR 2642 EAS 
(2) the Committee on Agriculture, Nutrition, and 
Forestry of the Senate; and 
(3) the subcommittees on agriculture, rural de-
velopment, food and drug administration, and related 
agencies of the Committees on Appropriations of the 
House of Representatives and the Senate. 
(b) PROPOSAL.— 
(1) IN GENERAL.—The Secretary, in consultation 
with the agriculture committees and subcommittees, 
shall propose a reorganization of international trade 
functions for imports and exports of the Department 
of Agriculture. 
(2) CONSIDERATIONS.—In producing the pro-
posal under this section, the Secretary shall— 
(A) in recognition of the importance of ag-
ricultural exports to the farm economy and the 
economy as a whole, include a plan for the estab-
lishment of an Under Secretary of Agriculture 
for Trade and Foreign Agricultural Affairs; 
(B) take into consideration how the Under 
Secretary described in subparagraph (A) would 
serve as a multiagency coordinator of sanitary 
and phytosanitary issues and nontariff trade 
barriers in agriculture with respect to imports 
and exports of agricultural products; and
345 
† HR 2642 EAS 
(C) take into consideration all implications 
of a reorganization described in paragraph (1) 
on domestic programs and operations of the De-
partment of Agriculture. 
(3) REPORT.—Not later than 180 days after the 
date of enactment of this Act and before the reorga-
nization described in paragraph (1) can take effect, 
the Secretary shall submit to the agriculture commit-
tees and subcommittees a report that— 
(A) includes the results of the proposal 
under this section; and 
(B) provides a notice of the reorganization 
plan. 
(4) IMPLEMENTATION.—Not later than 1 year 
after the date of the submission of the report under 
paragraph (3), the Secretary shall implement a reor-
ganization of international trade functions for im-
ports and exports of the Department of Agriculture, 
including the establishment of an Under Secretary of 
Agriculture for Trade and Foreign Agricultural Af-
fairs. 
(c) CONFIRMATION REQUIRED.—The position of Under 
Secretary of Agriculture for Trade and Foreign Agricul-
tural Affairs established under subsection (b)(2)(A) shall be
346 
† HR 2642 EAS 
appointed by the President, by and with the advice and 
consent of the Senate. 
TITLE IV—NUTRITION 
Subtitle A—Supplemental Nutrition 
Assistance Program 
SEC. 4001. ACCESS TO GROCERY DELIVERY FOR HOME-
BOUND SENIORS AND INDIVIDUALS WITH 
DISABILITIES ELIGIBLE FOR SUPPLEMENTAL 
NUTRITION ASSISTANCE BENEFITS. 
(a) IN GENERAL.—Section 3(p) of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2012(p)) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (4), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) a public or private nonprofit food pur-
chasing and delivery service that— 
‘‘(A) purchases food for, and delivers the 
food to, individuals who are— 
‘‘(i) unable to shop for food; and 
‘‘(ii)(I) not less than 60 years of age; 
or 
‘‘(II) individuals with disabilities;
347 
† HR 2642 EAS 
‘‘(B) clearly notifies the participating 
household at the time the household places a food 
order— 
‘‘(i) of any delivery fee associated with 
the food purchase and delivery provided to 
the household by the service; and 
‘‘(ii) that a delivery fee cannot be paid 
with benefits provided under the supple-
mental nutrition assistance program; and 
‘‘(C) sells food purchased for the household 
at the price paid by the service for the food with-
out any additional cost markup.’’. 
(b) ISSUANCE OF REGULATIONS.—Not later than 1 
year after the date of enactment of this Act, the Secretary 
shall issue regulations that— 
(1) establish criteria to identify a food pur-
chasing and delivery service described in section 
3(p)(5) of the Food and Nutrition Act of 2008 (as 
added by subsection (a)(3)); and 
(2) establish procedures to ensure that the serv-
ice— 
(A) does not charge more for a food item 
than the price paid by the service for the food 
item;
348 
† HR 2642 EAS 
(B) offers food delivery service at no or low 
cost to households under that Act; 
(C) ensures that benefits provided under the 
supplemental nutrition assistance program are 
used only to purchase food, as defined in section 
3 of that Act (7 U.S.C. 2012); 
(D) limits the purchase of food, and the de-
livery of the food, to households eligible to receive 
services described in section 3(p)(5) of that Act 
(as added by subsection (a)(3)); 
(E) has established adequate safeguards 
against fraudulent activities, including unau-
thorized use of electronic benefit cards issued 
under that Act; and 
(F) such other requirements as the Sec-
retary considers appropriate. 
(c) LIMITATION.—Before the issuance of regulations 
under subsection (b), the Secretary may not approve more 
than 20 food purchasing and delivery services described in 
section 3(p)(5) of the Food and Nutrition Act of 2008 (as 
added by subsection (a)(3)) to participate as retail food 
stores under the supplemental nutrition assistance pro-
gram.
349 
† HR 2642 EAS 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section take effect on the date that is 
30 days after the date of the enactment of this Act. 
SEC. 4002. FOOD DISTRIBUTION PROGRAM ON INDIAN RES-
ERVATIONS. 
(a) IN GENERAL.—Section 4(b)(6)(F) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2013(b)(6)(F)) is amended 
by striking ‘‘2012’’ and inserting ‘‘2018’’. 
(b) FEASABILITY STUDY FOR INDIAN TRIBES.—Sec-
tion 17 of the Food and Nutrition Act of 2008 (7 U.S.C. 
2026) is amended by inserting at the end the following: 
‘‘(l) FEASIBILITY STUDY FOR INDIAN TRIBES.— 
‘‘(1) IN GENERAL.—The Secretary shall conduct 
a study to determine the feasibility of a tribal dem-
onstration project for tribes, in lieu of State agencies 
or other administrating entities, to administer Fed-
eral food assistance programs, services, functions, and 
activities (or portions thereof). 
‘‘(2) 
CONSIDERATIONS.—In 
conducting 
the 
study, the Secretary shall consider— 
‘‘(A) the probable effects on specific pro-
grams and program beneficiaries of such a dem-
onstration project;
350 
† HR 2642 EAS 
‘‘(B) statutory, regulatory, or other impedi-
ments to implementation of such a demonstra-
tion project; 
‘‘(C) strategies for implementing such a 
demonstration project; 
‘‘(D) probable costs or savings associated 
with such a demonstration project; 
‘‘(E) methods to assure quality and ac-
countability in such a demonstration project; 
and 
‘‘(F) such other issues that may be deter-
mined by the Secretary or developed through 
consultation pursuant to paragraph (4). 
‘‘(3) REPORT.—Not later than 18 months after 
the date of the enactment of this subsection, the Sec-
retary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate a 
report that contains— 
‘‘(A) the results of the study under this sub-
section; 
‘‘(B) a list of programs, services, functions, 
and activities (or portions thereof) within each 
agency that would be feasible to include in a 
tribal demonstration project;
351 
† HR 2642 EAS 
‘‘(C) a list of programs, services, functions, 
and activities (or portions thereof) included in 
the list described in subparagraph (B) that could 
be included in a tribal demonstration project 
without amending existing law or without 
waiving regulations that the Secretary may not 
waive; and 
‘‘(D) a list of legislative actions required in 
order to include those programs, services, func-
tions, and activities (or portions thereof) in-
cluded in the list described in subparagraph (B) 
but not included in the list described in subpara-
graph (C) in a tribal demonstration project. 
‘‘(4) CONSULTATION WITH INDIAN TRIBES.— 
‘‘(A) IN GENERAL.—Prior to consultation, 
the Secretary shall consult with Indian tribes to 
determine a protocol for consultation. 
‘‘(B) REQUIREMENTS.—The protocol shall 
require, at a minimum, that— 
‘‘(i) the government-to-government re-
lationship with Indian tribes forms the 
basis for the consultation process; 
‘‘(ii) the Indian tribes and the Sec-
retary jointly conduct the consultations re-
quired by this paragraph; and
352 
† HR 2642 EAS 
‘‘(iii) the consultation process allows 
for separate and direct recommendations 
from the Indian tribes and other entities 
referenced in this subsection.’’. 
(c) TRADITIONAL AND LOCALLY-GROWN FOOD.—Sec-
tion 4(b)(6) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2013(b)(6)) is amended— 
(1) by redesignating subparagraph (F) as sub-
paragraph (G); and 
(2) by inserting after subparagraph (E) the fol-
lowing: 
‘‘(F) TRADITIONAL
AND
LOCALLY-GROWN 
FOOD.—A tribe that is authorized to administer 
the distribution described in paragraph (1) shall 
have the option to use 5 percent of the program 
funding of the tribe to promote local purchase of 
traditional and locally-grown food to be used in 
the food package of the tribe by purchasing tra-
ditional and locally-grown foods from local Na-
tive American farmers, ranchers, and pro-
ducers.’’.
353 
† HR 2642 EAS 
SEC. 4003. STANDARD UTILITY ALLOWANCES BASED ON 
THE RECEIPT OF ENERGY ASSISTANCE PAY-
MENTS. 
(a) STANDARD UTILITY ALLOWANCES IN THE SUPPLE-
MENTAL
NUTRITION
ASSISTANCE
PROGRAM.—Section 
5(e)(6)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2014(e)(6)(C)) is amended— 
(1) in clause (i), by inserting ‘‘, subject to clause 
(iv)’’ after ‘‘Secretary’’; and 
(2) in clause (iv), by striking subclause (I) and 
inserting the following: 
‘‘(I) IN
GENERAL.—Subject to 
subclause (II), if a State agency elects 
to use a standard utility allowance 
that reflects heating and cooling costs, 
the standard utility allowance shall be 
made available to households that have 
received a payment, or on behalf of 
which a payment has been made, 
under the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621 
et seq.) or other similar energy assist-
ance program, if in the current month 
or during the immediately preceding 
12 months, the household either has re-
ceived a payment, or a payment has
354 
† HR 2642 EAS 
been made on behalf of the household, 
that is greater than $10 annually, as 
determined by the Secretary.’’. 
(b) CONFORMING AMENDMENT.—Section 2605(f)(2)(A) 
of the Low-Income Home Energy Assistance Act of 1981 
(42 U.S.C. 8624(f)(2)(A)) is amended by inserting before 
the semicolon at the end ‘‘, except that, for purposes of the 
supplemental nutrition assistance program established 
under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.), such payments or allowances were greater than $10 
annually, consistent with section 5(e)(6)(C)(iv)(I) of that 
Act (7 U.S.C. 2014(e)(6)(C)(iv)(I)), as determined by the 
Secretary of Agriculture.’’. 
(c) EFFECTIVE AND IMPLEMENTATION DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), this section and the amendments made by 
this section shall take effect beginning on October 1, 
2013, for all certification periods beginning after that 
date. 
(2) STATE OPTION TO DELAY IMPLEMENTATION 
FOR CURRENT RECIPIENTS.—A State may, at the op-
tion of the State, implement a policy that eliminates 
or minimizes the effect of the amendments made by 
this section for households that receive a standard 
utility allowance as of the date of enactment of this
355 
† HR 2642 EAS 
Act for not more than a 180-day period beginning on 
the date on which the amendments made by this sec-
tion would otherwise affect the benefits received by a 
household. 
SEC. 4004. ELIGIBILITY DISQUALIFICATIONS. 
Section 6(e)(3)(B) of Food and Nutrition Act of 2008 
(7 U.S.C. 2015(e)(3)(B)) is amended by striking ‘‘section’’ 
and inserting the following: ‘‘section, subject to the condi-
tion that the course or program of study— 
‘‘(i) is part of a program of career and 
technical education (as defined in section 3 
of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302)) 
that may be completed in not more than 4 
years at an institution of higher education 
(as defined in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002)); 
or 
‘‘(ii) is limited to remedial courses, 
basic adult education, literacy, or English 
as a second language;’’.
356 
† HR 2642 EAS 
SEC. 4005. ENDING SUPPLEMENTAL NUTRITION ASSIST-
ANCE PROGRAM BENEFITS FOR LOTTERY OR 
GAMBLING WINNERS. 
(a) IN GENERAL.—Section 6 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2015) is amended by adding 
at the end the following: 
‘‘(r) INELIGIBILITY FOR BENEFITS DUE TO RECEIPT 
OF SUBSTANTIAL LOTTERY OR GAMBLING WINNINGS.— 
‘‘(1) IN GENERAL.—Any household in which a 
member receives substantial lottery or gambling 
winnings, as determined by the Secretary, shall lose 
eligibility for benefits immediately upon receipt of the 
winnings. 
‘‘(2) DURATION OF INELIGIBILITY.—A household 
described in paragraph (1) shall remain ineligible for 
participation until the household meets the allowable 
financial resources and income eligibility require-
ments under subsections (c), (d), (e), (f), (g), (i), (k), 
(l), (m), and (n) of section 5. 
‘‘(3) AGREEMENTS.—As determined by the Sec-
retary, each State agency, to the maximum extent 
practicable, shall establish agreements with entities 
responsible for the regulation or sponsorship of gam-
ing in the State to determine whether individuals 
participating in the supplemental nutrition assist-
357 
† HR 2642 EAS 
ance program have received substantial lottery or 
gambling winnings.’’. 
(b) CONFORMING AMENDMENTS.—Section 5(a) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2014(a)) is 
amended in the second sentence by striking ‘‘sections 6(b), 
6(d)(2), and 6(g)’’ and inserting ‘‘subsections (b), (d)(2), 
(g), and (r) of section 6’’. 
SEC. 4006. RETAIL FOOD STORES. 
(a) DEFINITION OF RETAIL FOOD STORE.—Subsection 
(o)(1)(A) of section 3 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2012) (as redesignated by section 4018(a)(4)) is 
amended by striking ‘‘at least 2’’ and inserting ‘‘at least 
3’’. 
(b) ALTERNATIVE BENEFIT DELIVERY.—Section 7(f) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2016(f)) 
is amended— 
(1) by striking paragraph (2) and inserting the 
following: 
‘‘(2) IMPOSITION OF COSTS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall require 
participating retail food stores (including res-
taurants participating in a State option res-
taurant program intended to serve the elderly, 
disabled, and homeless) to pay 100 percent of the
358 
† HR 2642 EAS 
costs of acquiring, and arrange for the imple-
mentation of, electronic benefit transfer point-of- 
sale equipment and supplies, including related 
services. 
‘‘(B) EXEMPTIONS.—The Secretary may ex-
empt from subparagraph (A)— 
‘‘(i) farmers’ markets and other direct- 
to-consumer 
markets, 
military 
com-
missaries, nonprofit food buying coopera-
tives, and establishments, organizations, 
programs, or group living arrangements de-
scribed in paragraphs (5), (7), and (8) of 
section 3(k); and 
‘‘(ii) establishments described in para-
graphs (3), (4), and (9) of section 3(k), 
other than restaurants participating in a 
State option restaurant program. 
‘‘(C) INTERCHANGE FEES.—Nothing in this 
paragraph permits the charging of fees relating 
to the redemption of supplemental nutrition as-
sistance program benefits, in accordance with 
subsection (h)(13).’’; and 
(2) by adding at the end the following: 
‘‘(4) TERMINATION OF MANUAL VOUCHERS.—
359 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—Effective beginning on 
the date of enactment of this paragraph, except 
as provided in subparagraph (B), no State shall 
issue manual vouchers to a household that re-
ceives supplemental nutrition assistance under 
this Act or allow retail food stores to accept 
manual vouchers as payment, unless the Sec-
retary determines that the manual vouchers are 
necessary, such as in the event of an electronic 
benefit transfer system failure or a disaster situ-
ation. 
‘‘(B) EXEMPTIONS.—The Secretary may ex-
empt categories of retail food stores or individual 
retail food stores from subparagraph (A) based 
on criteria established by the Secretary. 
‘‘(5) UNIQUE
IDENTIFICATION
NUMBER
RE-
QUIRED.— 
‘‘(A) IN GENERAL.—To enhance the anti- 
fraud protections of the program, the Secretary 
shall require all parties providing electronic ben-
efit transfer services to provide for and maintain 
unique terminal identification number informa-
tion through the supplemental nutrition assist-
ance program electronic benefit transfer trans-
action routing system.
360 
† HR 2642 EAS 
‘‘(B) REGULATIONS.— 
‘‘(i) IN GENERAL.—Not earlier than 2 
years after the date of enactment of this 
paragraph, the Secretary shall issue pro-
posed regulations to carry out this para-
graph. 
‘‘(ii) 
COMMERCIAL
PRACTICES.—In 
issuing regulations to carry out this para-
graph, the Secretary shall consider existing 
commercial practices for other point-of-sale 
debit transactions.’’. 
(c) 
ELECTRONIC
BENEFIT
TRANSFERS.—Section 
7(h)(3)(B) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2016(h)(3)(B)) is amended by striking ‘‘is operational—’’ 
and all that follows through ‘‘(ii) in the case of other par-
ticipating stores,’’ and inserting ‘‘is operational’’. 
(d) APPROVAL OF RETAIL FOOD STORES AND WHOLE-
SALE FOOD CONCERNS.—Section 9 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2018) is amended— 
(1) in the second sentence of subsection (a)(1)— 
(A) in subparagraph (A), by inserting ‘‘, 
including the depth of stock, variety of staple 
food items, and the sale of excepted items de-
scribed in 3(k)(1)’’ after ‘‘applicant’’; and
361 
† HR 2642 EAS 
(B) by striking ‘‘; and (C)’’ and inserting 
‘‘; (C) whether the applicant is located in an 
area with significantly limited access to food; 
and (D)’’; and 
(2) by adding at the end the following: 
‘‘(g) EBT SERVICE REQUIREMENT.—An approved re-
tail food store shall provide adequate EBT service as de-
scribed in section 7(h)(3)(B).’’. 
SEC. 4007. IMPROVING SECURITY OF FOOD ASSISTANCE. 
Section 7(h)(8) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2016(h)(8)) is amended— 
(1) by striking the paragraph heading and in-
serting ‘‘REPLACEMENT OF CARDS.—’’; 
(2) by striking ‘‘A State’’ and inserting the fol-
lowing: 
‘‘(A) FEES.—A State’’; and 
(3) by adding after subparagraph (A) (as so des-
ignated by paragraph (2)) the following: 
‘‘(B) PURPOSEFUL LOSS OF CARDS.— 
‘‘(i) IN
GENERAL.—Subject to terms 
and conditions established by the Secretary 
in accordance with clause (ii), if a house-
hold makes excessive requests for replace-
ment of the electronic benefit transfer card 
of the household, the Secretary may require
362 
† HR 2642 EAS 
a State agency to decline to issue a replace-
ment card to the household unless the house-
hold, upon request of the State agency, pro-
vides an explanation for the loss of the card. 
‘‘(ii) REQUIREMENTS.—The terms and 
conditions established by the Secretary shall 
provide that— 
‘‘(I) the household be given the op-
portunity to provide the requested ex-
planation and meet the requirements 
under this paragraph promptly; 
‘‘(II) after an excessive number of 
lost cards, the head of the household 
shall be required to review program 
rights and responsibilities with State 
agency personnel authorized to make 
determinations under section 5(a); and 
‘‘(III) any action taken, including 
actions required under section 6(b)(2), 
other than the withholding of the elec-
tronic benefit transfer card until an 
explanation described in subclause (I) 
is provided, shall be consistent with the 
due process protections under section 
6(b) or 11(e)(10), as appropriate.
363 
† HR 2642 EAS 
‘‘(C) PROTECTING VULNERABLE PERSONS.— 
In implementing this paragraph, a State agency 
shall act to protect homeless persons, persons 
with disabilities, victims of crimes, and other 
vulnerable persons who lose electronic benefit 
transfer cards but are not intentionally commit-
ting fraud. 
‘‘(D) EFFECT
ON
ELIGIBILITY.—While a 
State may decline to issue an electronic benefits 
transfer card until a household satisfies the re-
quirements under this paragraph, nothing in 
this paragraph shall be considered a denial of, or 
limitation on, the eligibility for benefits under 
section 5.’’. 
SEC. 4008. TECHNOLOGY MODERNIZATION FOR RETAIL 
FOOD STORES. 
(a) MOBILE TECHNOLOGIES.—Section 7(h) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2016(h)) (as amended 
by section 4018(e)) is amended by adding at the end the 
following: 
‘‘(14) MOBILE TECHNOLOGIES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall approve retail 
food stores to redeem benefits through electronic 
means other than wired point of sale devices for
364 
† HR 2642 EAS 
electronic benefit transfer transactions, if the re-
tail food stores— 
‘‘(i) establish recipient protections re-
garding privacy, ease of use, access, and 
support similar to the protections provided 
for transactions made in retail food stores; 
‘‘(ii) bear the costs of obtaining, in-
stalling, and maintaining mobile tech-
nologies, including mechanisms needed to 
process EBT cards and transaction fees; 
‘‘(iii) demonstrate the foods purchased 
with benefits issued under this section 
through mobile technologies are purchased 
at a price not higher than the price of the 
same food purchased by other methods used 
by the retail food store, as determined by 
the Secretary; 
‘‘(iv) provide adequate documentation 
for each authorized transaction, as deter-
mined by the Secretary; and 
‘‘(v) meet other criteria as established 
by the Secretary. 
‘‘(B) DEMONSTRATION PROJECT ON ACCEPT-
ANCE OF BENEFITS OF MOBILE TRANSACTIONS.—
365 
† HR 2642 EAS 
‘‘(i) IN GENERAL.—Before authorizing 
implementation of subparagraph (A) in all 
States, the Secretary shall pilot the use of 
mobile technologies determined by the Sec-
retary to be appropriate to test the feasi-
bility and implications for program integ-
rity, by allowing retail food stores to accept 
benefits from recipients of supplemental nu-
trition assistance through mobile trans-
actions. 
‘‘(ii) DEMONSTRATION PROJECTS.—To 
be eligible to participate in a demonstration 
project under clause (i), a retail food store 
shall submit to the Secretary for approval a 
plan that includes— 
‘‘(I) a description of the tech-
nology; 
‘‘(II) the manner by which the re-
tail food store will provide proof of the 
transaction to households; 
‘‘(III) the provision of data to the 
Secretary, consistent with requirements 
established by the Secretary, in a man-
ner that allows the Secretary to evalu-
ate the impact of the demonstration on
366 
† HR 2642 EAS 
participant access, ease of use, and 
program integrity; and 
‘‘(IV) such other criteria as the 
Secretary may require. 
‘‘(iii) DATE
OF
COMPLETION.—The 
demonstration projects under this subpara-
graph shall be completed and final reports 
submitted to the Secretary by not later than 
July 1, 2015. 
‘‘(C) REPORT
TO
CONGRESS.—The Sec-
retary shall— 
‘‘(i) by not later than January 1, 
2016, authorize implementation of subpara-
graph (A) in all States, unless the Secretary 
makes a finding, based on the data provided 
under subparagraph (B), that implementa-
tion in all States is not in the best interest 
of the supplemental nutrition assistance 
program; and 
‘‘(ii) if the determination made in 
clause (i) is not to implement subparagraph 
(A) in all States, submit a report to the 
Committee on Agriculture of the House of 
Representatives and the Committee on Agri-
367 
† HR 2642 EAS 
culture, Nutrition, and Forestry of the Sen-
ate that includes the basis of the finding.’’. 
(b) ACCEPTANCE OF BENEFITS THROUGH ON-LINE 
TRANSACTIONS.— 
(1) IN GENERAL.—Section 7 of the Food and Nu-
trition Act of 2008 (7 U.S.C. 2016) is amended by 
adding at the end the following: 
‘‘(k) OPTION
TO
ACCEPT
PROGRAM
BENEFITS 
THROUGH ON-LINE TRANSACTIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), the 
Secretary shall approve retail food stores to accept 
benefits from recipients of supplemental nutrition as-
sistance through on-line transactions. 
‘‘(2) REQUIREMENTS TO ACCEPT BENEFITS.—A 
retail food store seeking to accept benefits from recipi-
ents of supplemental nutrition assistance through on- 
line transactions shall— 
‘‘(A) establish recipient protections regard-
ing privacy, ease of use, access, and support 
similar to the protections provided for trans-
actions made in retail food stores; 
‘‘(B) ensure benefits are not used to pay de-
livery, ordering, convenience, or other fees or 
charges;
368 
† HR 2642 EAS 
‘‘(C) clearly notify participating households 
at the time a food order is placed— 
‘‘(i) of any delivery, ordering, conven-
ience, or other fee or charge associated with 
the food purchase; and 
‘‘(ii) that any such fee cannot be paid 
with benefits provided under this Act; 
‘‘(D) ensure the security of on-line trans-
actions by using the most effective technology 
available that the Secretary considers appro-
priate and cost-effective and that is comparable 
to the security of transactions at retail food 
stores; and 
‘‘(E) meet other criteria as established by 
the Secretary. 
‘‘(3) STATE AGENCY ACTION.—Each State agency 
shall ensure that recipients of supplemental nutrition 
assistance can use benefits on-line as described in this 
subsection as appropriate. 
‘‘(4) DEMONSTRATION PROJECT ON ACCEPTANCE 
OF BENEFITS THROUGH ON-LINE TRANSACTIONS.— 
‘‘(A) IN
GENERAL.—Before the Secretary 
authorizes implementation of paragraph (1) in 
all States, the Secretary shall carry out a num-
ber of demonstration projects as determined by
369 
† HR 2642 EAS 
the Secretary to test the feasibility of allowing 
retail food stores to accept benefits through on- 
line transactions. 
‘‘(B) DEMONSTRATION
PROJECTS.—To be 
eligible to participate in a demonstration project 
under subparagraph (A), a retail food store shall 
submit to the Secretary for approval a plan that 
includes— 
‘‘(i) a method of ensuring that benefits 
may be used to purchase only eligible items 
under this Act; 
‘‘(ii) a description of the method of 
educating participant households about the 
availability and operation of on-line pur-
chasing; 
‘‘(iii) adequate testing of the on-line 
purchasing option prior to implementation; 
‘‘(iv) the provision of data as requested 
by the Secretary for purposes of analyzing 
the impact of the project on participant ac-
cess, ease of use, and program integrity; 
‘‘(v) reports on progress, challenges, 
and results, as determined by the Secretary; 
and
370 
† HR 2642 EAS 
‘‘(vi) such other criteria, including se-
curity criteria, as established by the Sec-
retary. 
‘‘(C) DATE
OF
COMPLETION.—The dem-
onstration projects under this paragraph shall be 
completed and final reports submitted to the Sec-
retary by not later than July 1, 2015. 
‘‘(5) REPORT
TO
CONGRESS.—The Secretary 
shall— 
‘‘(A) by not later than January 1, 2016, 
authorize implementation of paragraph (1) in 
all States, unless the Secretary makes a finding, 
based on the data provided under paragraph (4), 
that implementation in all States is not in the 
best interest of the supplemental nutrition assist-
ance program; and 
‘‘(B) if the determination made in subpara-
graph (A) is not to implement in all States, sub-
mit a report to the Committee on Agriculture of 
the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the 
Senate that includes the basis of the finding.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 7(b) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2016(b)) is amended by
371 
† HR 2642 EAS 
striking ‘‘purchase food in retail food stores’’ and 
inserting ‘‘purchase food from retail food stores’’. 
(B) Section 10 of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2019) is amended in the 
first sentence by inserting ‘‘retail food stores au-
thorized to accept and redeem benefits through 
on-line transactions shall be authorized to accept 
benefits prior to the delivery of food if the deliv-
ery occurs within a reasonable time of the pur-
chase, as determined by the Secretary,’’ after 
‘‘food so purchased,’’. 
(c) SAVINGS CLAUSE.—Nothing in this section or an 
amendment made by this section alter any requirements of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) 
unless specifically authorized in this section or an amend-
ment made by this section. 
SEC. 4009. USE OF BENEFITS FOR PURCHASE OF COMMU-
NITY-SUPPORTED AGRICULTURE SHARE. 
Subsection (o)(4) of section 3 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2012) (as redesignated by section 
4018(a)(4)) is amended by inserting ‘‘, or agricultural pro-
ducers who market agricultural products directly to con-
sumers’’ after ‘‘such food’’.
372 
† HR 2642 EAS 
SEC. 4010. RESTAURANT MEALS PROGRAM. 
(a) IN GENERAL.—Section 11(e) of the Food and Nu-
trition Act of 2008 (7 U.S.C. 2020(e)) is amended— 
(1) in paragraph (22), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (23), by striking the period at 
the end of subparagraph (C) and inserting ‘‘; and’’; 
and 
(3) by adding at the end the following: 
‘‘(24) if the State elects to carry out a program 
to contract with private establishments to offer meals 
at concessional prices, as described in paragraphs 3, 
4, and 9 of section 3(k)— 
‘‘(A) the plans of the State agency for oper-
ating the program, including— 
‘‘(i) documentation of a need that eli-
gible homeless, elderly, and disabled clients 
are underserved in a particular geographic 
area; 
‘‘(ii) the manner by which the State 
agency will limit participation to only 
those private establishments that the State 
determines necessary to meet the need iden-
tified in clause (i); and 
‘‘(iii) any other conditions the Sec-
retary may prescribe, such as the level of se-
373 
† HR 2642 EAS 
curity necessary to ensure that only eligible 
recipients participate in the program; and 
‘‘(B) a report by the State agency to the 
Secretary annually, the schedule of which shall 
be established by the Secretary, that includes— 
‘‘(i) the number of households and in-
dividual recipients authorized to partici-
pate in the program, including any infor-
mation on whether the individual recipient 
is elderly, disabled, or homeless; and 
‘‘(ii) an assessment of whether the pro-
gram is meeting an established need, as doc-
umented under subparagraph (A)(i).’’. 
(b) APPROVAL OF RETAIL FOOD STORES AND WHOLE-
SALE FOOD CONCERNS.—Section 9 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2018) (as amended by section 
4005(d)(3)) is amended by adding at the end the following: 
‘‘(h) PRIVATE ESTABLISHMENTS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), no 
private establishment that contracts with a State 
agency to offer meals at concessional prices as de-
scribed in paragraphs 3, 4, and 9 of section 3(k) may 
be authorized to accept and redeem benefits unless the 
Secretary determines that the participation of the
374 
† HR 2642 EAS 
private establishment is required to meet a docu-
mented need in accordance with section 11(e)(24). 
‘‘(2) EXISTING CONTRACTS.— 
‘‘(A) IN GENERAL.—If, on the day before the 
date of enactment of this subsection, a State has 
entered into a contract with a private establish-
ment described in paragraph (1) and the Sec-
retary has not determined that the participation 
of the private establishment is necessary to meet 
a documented need in accordance with section 
11(e)(24), the Secretary shall allow the operation 
of the private establishment to continue without 
that determination of need for a period not to 
exceed 180 days from the date on which the Sec-
retary establishes determination criteria, by reg-
ulation, under section 11(e)(24). 
‘‘(B) 
JUSTIFICATION.—If 
the 
Secretary 
makes a determination to terminate a contract 
with a private establishment that is in effect on 
the date of enactment of this subsection, the Sec-
retary shall provide justification to the State in 
which the private establishment is located for 
that termination. 
‘‘(3) REPORT TO CONGRESS.—Not later than 90 
days after September 30, 2013, and 90 days after the
375 
† HR 2642 EAS 
last day of each fiscal year thereafter, the Secretary 
shall report to the Committee on Agriculture of the 
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate on the 
effectiveness of a program under this subsection using 
any information received from States under section 
11(e)(24) as well as any other information the Sec-
retary may have relating to the manner in which 
benefits are used.’’. 
(c) CONFORMING AMENDMENTS.—Section 3(k) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2012(k)) is 
amended by inserting ‘‘subject to section 9(h)’’ after 
‘‘concessional prices’’ each place it appears. 
SEC. 4011. QUALITY CONTROL STANDARDS. 
(a) IN GENERAL.—Section 16(c)(1)(D)(i) of the Food 
and Nutrition Act of 2008 (7 U.S.C. 2025(c)(1)(D)(i)) is 
amended by striking subclause (I). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 13(a)(1) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2022(a)(1)) is amended in the 
first sentence by striking ‘‘section 16(c)(1)(D)(i)(III)’’ 
and inserting ‘‘section 16(c)(1)(D)(i)(II)’’. 
(2) Section 16(c)(1) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025(c)(1)) is amended— 
(A) in subparagraph (D)(i)—
376 
† HR 2642 EAS 
(i) by redesignating subclauses (II) 
through (IV) as subclauses (I) through (III), 
respectively; and 
(ii) in subclause (III) (as so redesig-
nated), by striking ‘‘through (III)’’ and in-
serting ‘‘and (II)’’; 
(B) in subparagraph (E)(i), by striking 
‘‘(D)(i)(III)’’ and inserting ‘‘(D)(i)(II)’’; and 
(C) in subparagraph (F), by striking 
‘‘(D)(i)(II)’’ each place it appears and inserting 
‘‘(D)(i)(I)’’. 
SEC. 4012. PERFORMANCE BONUS PAYMENTS. 
Section 16(d) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025(d)) is amended by adding at the end the 
following: 
‘‘(5) USE OF PERFORMANCE BONUS PAYMENTS.— 
A State agency may use a performance bonus pay-
ment received under this subsection only to carry out 
the program established under this Act, including in-
vestments in— 
‘‘(A) technology; 
‘‘(B) improvements in administration and 
distribution; and 
‘‘(C) actions to prevent fraud, waste, and 
abuse.’’.
377 
† HR 2642 EAS 
SEC. 4013. FUNDING OF EMPLOYMENT AND TRAINING PRO-
GRAMS. 
Section 16(h)(1)(A) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2025(h)(1)(A)) is amended by striking ‘‘sec-
tion 18(a)(1), $90,000,000’’ and all that follows through the 
end of the subparagraph and inserting ‘‘section 18(a)(1)— 
‘‘(i) for each of fiscal years 2014 
through 2017, $90,000,000; and 
‘‘(ii) for fiscal year 2018 and each fis-
cal year thereafter, $80,000,000.’’. 
SEC. 4014. AUTHORIZATION OF APPROPRIATIONS. 
Section 18(a)(1) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2027(a)(1)) is amended in the first sentence by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 4015. ASSISTANCE FOR COMMUNITY FOOD PROJECTS. 
Section 25 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2034) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(B)— 
(i) in clause (i)— 
(I) in subclause (I), by inserting 
after 
‘‘individuals’’ 
the 
following: 
‘‘through food distribution, community 
outreach to assist in participation in 
Federally assisted nutrition programs,
378 
† HR 2642 EAS 
or improving access to food as part of 
a comprehensive service;’’; and 
(II) in subclause (III), by insert-
ing ‘‘food access,’’ after ‘‘food,’’; and 
(ii) in clause (ii), by striking subclause 
(I) and inserting the following: 
‘‘(I) equipment necessary for the 
efficient operation of a project;’’; and 
(B) by striking paragraph (2) and inserting 
the following: 
‘‘(2) HUNGER-FREE
COMMUNITIES
GOAL.—The 
term ‘hunger-free communities goal’ means any of the 
14 goals described in House Concurrent Resolution 
302, 102nd Congress, agreed to October 5, 1992.’’; 
(2) in subsection (c)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘public food program service pro-
vider or a’’ before ‘‘private’’; 
(B) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘or’’ after the semicolon at the end; 
(ii) in subparagraph (B), by inserting 
‘‘or’’ after the semicolon at the end; and 
(iii) by adding at the end the fol-
lowing:
379 
† HR 2642 EAS 
‘‘(C) efforts to reduce food insecurity in the 
community, including food distribution, improv-
ing access to services, or coordinating services 
and programs;’’; 
(C) in paragraph (2), by striking ‘‘and’’ 
after the semicolon at the end; 
(D) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(E) by adding at the end the following: 
‘‘(4) collaborate with 1 or more local partner or-
ganizations to achieve at least 1 hunger-free commu-
nities goal.’’; 
(3) in subsection (d)— 
(A) in paragraph (3), by striking ‘‘or’’ after 
the semicolon at the end; 
(B) in paragraph (4), by striking the period 
at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(5) develop new resources and strategies to help 
reduce food insecurity in the community and prevent 
food insecurity in the future by— 
‘‘(A) developing creative food resources; 
‘‘(B) coordinating food services with park 
and recreation programs and other community- 
based outlets to reduce barriers to access; or
380 
† HR 2642 EAS 
‘‘(C) creating nutrition education programs 
for at- risk populations to enhance food-pur-
chasing and food- preparation skills and to 
heighten awareness of the connection between diet 
and health.’’; 
(4) in subsection (f)(2), by striking ‘‘3 years’’ 
and inserting ‘‘5 years’’; and 
(5) by striking subsections (h) and (i) and in-
serting the following: 
‘‘(h) REPORTS TO CONGRESS.—Not later than Sep-
tember 30, 2014, and each year thereafter, the Secretary 
shall submit to Congress a report that describes each grant 
made under this section, including— 
‘‘(1) a description of any activity funded; 
‘‘(2) the degree of success of each activity funded 
in achieving hunger-free community goals; and 
‘‘(3) the degree of success in improving the long- 
term capacity of a community to address food and 
agriculture problems related to hunger or access to 
healthy food.’’. 
SEC. 4016. EMERGENCY FOOD ASSISTANCE. 
(a) PURCHASE OF COMMODITIES.—Section 27(a) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) is 
amended—
381 
† HR 2642 EAS 
(1) in paragraph (1), by striking ‘‘2008 through 
2012’’ and inserting ‘‘2014 through 2018’’; 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) AMOUNTS.—The Secretary shall use to 
carry out paragraph (1)— 
‘‘(A) for fiscal year 2013, $265,750,000; and 
‘‘(B) for each subsequent fiscal year, the dol-
lar amount of commodities specified in subpara-
graph (A) adjusted by the percentage by which 
the thrifty food plan has been adjusted under sec-
tion 3(u)(4) between June 30, 2013, and June 30 
of the immediately preceding fiscal year, and 
subsequently increased by— 
‘‘(i) for fiscal year 2014, $22,000,000; 
‘‘(ii) for fiscal year 2015, $18,000,000; 
‘‘(iii) for fiscal year 2016, $10,000,000; 
and 
‘‘(iv) 
for 
fiscal 
year 
2017, 
$4,000,000.’’; and 
(3) by adding at the end the following: 
‘‘(3) FUNDS AVAILABILITY.—For purposes of the 
funds described in this subsection, the Secretary 
shall—
382 
† HR 2642 EAS 
‘‘(A) make the funds available for 2 fiscal 
years; and 
‘‘(B) allow States to carry over unexpended 
balances to the next fiscal year pursuant to such 
terms and conditions as are determined by the 
Secretary.’’. 
(b) EMERGENCY FOOD PROGRAM INFRASTRUCTURE 
GRANTS.—Section 209(d) of the Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 7511a(d)) is amended by strik-
ing ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 4017. NUTRITION EDUCATION. 
Section 28(b) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2036a(b)) is amended by inserting ‘‘and physical 
activity’’ after ‘‘healthy food choices’’. 
SEC. 4018. RETAIL FOOD STORE AND RECIPIENT TRAF-
FICKING. 
The Food and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.) is amended by adding at the end the following: 
‘‘SEC. 29. RETAIL FOOD STORE AND RECIPIENT TRAF-
FICKING. 
‘‘(a) PURPOSE.—The purpose of this section is to pro-
vide the Department of Agriculture with additional re-
sources to prevent trafficking in violation of this Act by 
strengthening recipient and retail food store program integ-
rity.
383 
† HR 2642 EAS 
‘‘(b) USE OF FUNDS.— 
‘‘(1) IN GENERAL.—Additional funds are pro-
vided under this section to supplement the retail food 
store and recipient integrity activities of the Depart-
ment. 
‘‘(2) INFORMATION
TECHNOLOGIES.—The Sec-
retary shall use an appropriate amount of the funds 
provided under this section to employ information 
technologies known as data mining and data 
warehousing and other available information tech-
nologies to administer the supplemental nutrition as-
sistance program and enforce regulations promulgated 
under section 4(c). 
‘‘(c) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $12,000,000 for each of fiscal years 2014 
through 2018. 
‘‘(2) MANDATORY FUNDING.— 
‘‘(A) IN GENERAL.—Out of any funds in the 
Treasury not otherwise appropriated, the Sec-
retary of the Treasury shall transfer to the Sec-
retary to carry out this section not less than 
$5,000,000 for fiscal year 2014, to remain avail-
able until expended.
384 
† HR 2642 EAS 
‘‘(B) RECEIPT AND ACCEPTANCE.—The Sec-
retary shall be entitled to receive, shall accept, 
and shall use to carry out this section the funds 
transferred under subparagraph (A), without 
further appropriation. 
‘‘(C) MAINTENANCE
OF
FUNDING.—The 
funding provided under subparagraph (A) shall 
supplement (and not supplant) other Federal 
funding for programs carried out under this 
Act.’’. 
SEC. 4019. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 3 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2012) is amended— 
(1) in subsection (g), by striking ‘‘coupon,’’ and 
inserting ‘‘coupon’’; 
(2) in subsection (k)(7), by striking ‘‘or are’’ and 
inserting ‘‘and’’; 
(3) by striking subsection (l); 
(4) by redesignating subsections (m) through (t) 
as subsections (l) through (s), respectively; and 
(5) by inserting after subsection (s) (as so redes-
ignated) the following: 
‘‘(t) ‘Supplemental nutrition assistance program’ 
means the program operated pursuant to this Act.’’.
385 
† HR 2642 EAS 
(b) Section 4(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(a)) is amended in the last sentence by strik-
ing ‘‘benefits’’ and inserting ‘‘Benefits’’. 
(c) Section 5 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2014) is amended— 
(1) in the last sentence of subsection (i)(2)(D), by 
striking ‘‘section 13(b)(2)’’ and inserting ‘‘section 
13(b)’’; and 
(2) in subsection (k)(4)(A), by striking ‘‘para-
graph (2)(H)’’ and inserting ‘‘paragraph (2)(G)’’. 
(d) Section 6(d)(4) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2015(d)(4)) is amended in subparagraphs 
(B)(vii) and (F)(iii) by indenting both clauses appro-
priately. 
(e) Section 7(h) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2016(h)) is amended by redesignating the second 
paragraph (12) (relating to interchange fees) as paragraph 
(13). 
(f) Section 9(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2018(a)) is amended by indenting paragraph (3) 
appropriately. 
(g) Section 12 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2021) is amended— 
(1) in subsection (b)(3)(C), by striking ‘‘civil 
money penalties’’ and inserting ‘‘civil penalties’’; and
386 
† HR 2642 EAS 
(2) in subsection (g)(1), by striking ‘‘(7 U.S.C. 
1786)’’ and inserting ‘‘(42 U.S.C. 1786)’’. 
(h) Section 15(b)(1) of the Food and Nutrition Act of 
2008 (7 U.S.C. 2024(b)(1)) is amended in the first sentence 
by striking ‘‘an benefit’’ and inserting ‘‘a benefit’’. 
(i) Section 16(a) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2025(a)) is amended in the proviso following 
paragraph (8) by striking ‘‘as amended.’’. 
(j) Section 18(e) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2027(e)) is amended in the first sentence by strik-
ing ‘‘sections 7(f)’’ and inserting ‘‘section 7(f)’’. 
(k) Section 22(b)(10)(B)(i) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2031(b)(10)(B)(i)) is amended in the 
last sentence by striking ‘‘Food benefits’’ and inserting 
‘‘Benefits’’. 
(l) Section 26(f)(3)(C) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2035(f)(3)(C)) is amended by striking 
‘‘subsection’’ and inserting ‘‘subsections’’. 
(m) Section 27(a)(1) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2036(a)(1)) is amended by striking 
‘‘(Public Law 98–8; 7 U.S.C. 612c note)’’ and inserting ‘‘(7 
U.S.C. 7515)’’. 
(n) Section 509 of the Older Americans Act of 1965 
(42 U.S.C. 3056g) is amended in the section heading by 
striking ‘‘FOOD
STAMP
PROGRAMS’’ and inserting
387 
† HR 2642 EAS 
‘‘SUPPLEMENTAL
NUTRITION
ASSISTANCE
PRO-
GRAMS’’. 
(o) Section 4115(c)(2)(H) of the Food, Conservation, 
and Energy Act of 2008 (Public Law 110–246; 122 Stat. 
1871) is amended by striking ‘‘531’’ and inserting ‘‘454’’. 
SEC. 4020. ELIGIBILITY DISQUALIFICATIONS FOR CERTAIN 
CONVICTED FELONS. 
Section 6 of the Food and Nutrition Act of 2008 (7 
U.S.C. 2015) (as amended by section 4004) is amended by 
adding at the end the following: 
‘‘(s) DISQUALIFICATION
FOR CERTAIN CONVICTED 
FELONS.— 
‘‘(1) IN GENERAL.—An individual shall not be 
eligible for benefits under this Act if the individual is 
convicted of— 
‘‘(A) aggravated sexual abuse under section 
2241 of title 18, United States Code; 
‘‘(B) murder under section 1111 of title 18, 
United States Code; 
‘‘(C) an offense under chapter 110 of title 
18, United States Code; 
‘‘(D) a Federal or State offense involving 
sexual assault, as defined in 40002(a) of the Vio-
lence Against Women Act of 1994 (42 U.S.C. 
13925(a)); or
388 
† HR 2642 EAS 
‘‘(E) an offense under State law determined 
by the Attorney General to be substantially simi-
lar to an offense described in subparagraph (A), 
(B), or (C). 
‘‘(2) EFFECTS
ON
ASSISTANCE
AND
BENEFITS 
FOR OTHERS.—The amount of benefits otherwise re-
quired to be provided to an eligible household under 
this Act shall be determined by considering the indi-
vidual to whom paragraph (1) applies not to be a 
member of such household, except that the income and 
resources of the individual shall be considered to be 
income and resources of the household. 
‘‘(3) ENFORCEMENT.—Each State shall require 
each individual applying for benefits under this Act, 
during the application process, to state, in writing, 
whether the individual, or any member of the house-
hold of the individual, has been convicted of a crime 
described in paragraph (1).’’. 
Subtitle B—Commodity Distribution 
Programs 
SEC. 4101. COMMODITY DISTRIBUTION PROGRAM. 
Section 4(a) of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) 
is amended in the first sentence by striking ‘‘2012’’ and 
inserting ‘‘2018’’.
389 
† HR 2642 EAS 
SEC. 4102. COMMODITY SUPPLEMENTAL FOOD PROGRAM. 
Section 5 of the Agriculture and Consumer Protection 
Act of 1973 (7 U.S.C. 612c note; Public Law 93–86) is 
amended— 
(1) in paragraphs (1) and (2)(B) of subsection 
(a), by striking ‘‘2012’’ each place it appears and in-
serting ‘‘2018’’; 
(2) in the first sentence of subsection (d)(2), by 
striking ‘‘2012’’ and inserting ‘‘2018’’; 
(3) by striking subsection (g) and inserting the 
following: 
‘‘(g) ELIGIBILITY.—Except as provided in subsection 
(m), the States shall only provide assistance under the com-
modity supplemental food program to low-income persons 
aged 60 and older.’’; and 
(4) by adding at the end the following: 
‘‘(m) PHASE-OUT.—Notwithstanding any other provi-
sion of law, an individual who receives assistance under 
the commodity supplemental food program on the day be-
fore the date of enactment of this subsection shall continue 
to receive that assistance until the date on which the indi-
vidual is no longer eligible for assistance under the eligi-
bility requirements for the program in effect on the day be-
fore the date of enactment of this subsection.’’.
390 
† HR 2642 EAS 
SEC. 4103. DISTRIBUTION OF SURPLUS COMMODITIES TO 
SPECIAL NUTRITION PROJECTS. 
Section 1114(a)(2)(A) of the Agriculture and Food Act 
of 1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sen-
tence by striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 4104. PROCESSING OF COMMODITIES. 
(a) IN GENERAL.—Section 17 of the Commodity Dis-
tribution Reform Act and WIC Amendments of 1987 (7 
U.S.C. 612c note; Public Law 100–237) is amended— 
(1) in the section heading, by inserting ‘‘AND 
PROCESSING’’ after ‘‘DONATIONS’’; and 
(2) by adding at the end the following: 
‘‘(c) PROCESSING.— 
‘‘(1) IN GENERAL.—For any program included 
under subsection (b), the Secretary may, notwith-
standing any other provision of Federal or State law 
relating to the procurement of goods and services— 
‘‘(A) retain title to commodities delivered to 
a processor, on behalf of a State (including a 
State distributing agency and a recipient agen-
cy), until such time as end products containing 
the commodities, or similar commodities as ap-
proved by the Secretary, are delivered to a State 
distributing agency or to a recipient agency; and 
‘‘(B) promulgate regulations to ensure ac-
countability for commodities provided to a proc-
391 
† HR 2642 EAS 
essor for processing into end products, and to fa-
cilitate processing of commodities into end prod-
ucts for use by recipient agencies. 
‘‘(2) REGULATIONS.—The regulations described 
in paragraph (1)(B) may provide that— 
‘‘(A) a processor that receives commodities 
for processing into end products, or provides a 
service with respect to the commodities or end 
products, in accordance with the agreement of 
the processor with a State distributing agency or 
a recipient agency, provide to the Secretary a 
bond or other means of financial assurance to 
protect the value of the commodities; and 
‘‘(B) in the event a processor fails to deliver 
to a State distributing agency or a recipient 
agency an end product in conformance with the 
processing agreement entered into under this Act, 
the Secretary— 
‘‘(i) take action with respect to the 
bond or other means of financial assurance 
pursuant to regulations promulgated under 
this subsection; and 
‘‘(ii) distribute any proceeds obtained 
by the Secretary to 1 or more State distrib-
392 
† HR 2642 EAS 
uting agencies and recipient agencies, as de-
termined appropriate by the Secretary.’’. 
(b) DEFINITIONS.—Section 18 of the Commodity Dis-
tribution Reform Act and WIC Amendments of 1987 (7 
U.S.C. 612c note; Public Law 100–237) is amended by 
striking paragraphs (1) and (2) and inserting the following: 
‘‘(1) COMMODITIES.—The term ‘commodities’ 
means agricultural commodities and their products 
that are donated by the Secretary for use by recipient 
agencies. 
‘‘(2) END
PRODUCT.—The term ‘end product’ 
means a food product that contains processed com-
modities.’’. 
(c) TECHNICAL
AND CONFORMING AMENDMENTS.— 
Section 3 of the Commodity Distribution Reform Act and 
WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 
100–237) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2), by striking subpara-
graph (B) and inserting the following: 
‘‘(B) the program established under section 
4(b) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2013(b));’’; and 
(B) in paragraph (3)(D), by striking ‘‘the 
Committee on Education and Labor’’ and insert-
393 
† HR 2642 EAS 
ing ‘‘the Committee on Education and the Work-
force’’; 
(2) in subsection (b)(1)(A)(ii), by striking ‘‘sec-
tion 32 of the Agricultural Adjustment Act (7 U.S.C. 
601 et seq.)’’ and inserting ‘‘section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c)’’; 
(3) in subsection (e)(1)(D)(iii), by striking sub-
clause (II) and inserting the following: 
‘‘(II) 
the 
program 
established 
under section 4(b) of the Food and Nu-
trition 
Act 
of 
2008 
(7 
U.S.C. 
2013(b));’’; and 
(4) in subsection (k), by striking ‘‘the Committee 
on Education and Labor’’ and inserting ‘‘the Com-
mittee on Education and the Workforce’’. 
Subtitle C—Miscellaneous 
SEC. 4201. PURCHASE OF FRESH FRUITS AND VEGETABLES 
FOR DISTRIBUTION TO SCHOOLS AND SERV-
ICE INSTITUTIONS. 
Section 10603(b) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 612c–4(b)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’.
394 
† HR 2642 EAS 
SEC. 4202. SENIORS FARMERS’ MARKET NUTRITION PRO-
GRAM. 
Section 4402(a) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 3007(a)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2018’’. 
SEC. 4203. NUTRITION INFORMATION AND AWARENESS 
PILOT PROGRAM. 
Section 4403 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 3171 note; Public Law 107– 
171) is repealed. 
SEC. 4204. HUNGER-FREE COMMUNITIES. 
Section 4405 of the Food, Conservation, and Energy 
Act of 2008 (7 U.S.C. 7517) is amended to read as follows: 
‘‘SEC. 4405. HUNGER-FREE COMMUNITIES. 
‘‘(a) IN GENERAL.—In this section: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) a nonprofit organization (including 
an emergency feeding organization); 
‘‘(B) an agricultural cooperative; 
‘‘(C) a producer network or association; 
‘‘(D) a community health organization; 
‘‘(E) a public benefit corporation; 
‘‘(F) an economic development corporation; 
‘‘(G) a farmers’ market;
395 
† HR 2642 EAS 
‘‘(H) a community-supported agriculture 
program; 
‘‘(I) a buying club; 
‘‘(J) a retail food store participating in the 
supplemental nutrition assistance program; 
‘‘(K) a State, local, or tribal agency; and 
‘‘(L) any other entity the Secretary des-
ignates. 
‘‘(2) EMERGENCY FEEDING ORGANIZATION.—The 
term ‘emergency feeding organization’ has the mean-
ing given the term in section 201A of the Emergency 
Food Assistance Act of 1983 (7 U.S.C. 7501). 
‘‘(3) SUPPLEMENTAL
NUTRITION
ASSISTANCE 
PROGRAM.—The term ‘supplemental nutrition assist-
ance program’ means the supplemental nutrition as-
sistance program established under the Food and Nu-
trition Act of 2008 (7 U.S.C. 2011 et seq.). 
‘‘(b) 
HUNGER-FREE
COMMUNITIES
INCENTIVE 
GRANTS.— 
‘‘(1) AUTHORIZATION.— 
‘‘(A) IN GENERAL.—In each of the years 
specified in subsection (c), the Secretary shall 
make grants to eligible entities in accordance 
with paragraph (2).
396 
† HR 2642 EAS 
‘‘(B) FEDERAL SHARE.—The Federal share 
of the cost of carrying out an activity under this 
subsection shall not exceed 50 percent of the total 
cost of the activity. 
‘‘(C) NON-FEDERAL SHARE.— 
‘‘(i) IN
GENERAL.—The non-Federal 
share of the cost of an activity under this 
subsection may be provided— 
‘‘(I) in cash or in-kind contribu-
tions as determined by the Secretary, 
including facilities, equipment, or serv-
ices; and 
‘‘(II) by a State or local govern-
ment or a private source. 
‘‘(ii) LIMITATION.—In the case of a 
for-profit entity, the non-Federal share de-
scribed in clause (i) shall not include serv-
ices of an employee, including salaries paid 
or expenses covered by the employer. 
‘‘(2) CRITERIA.— 
‘‘(A) IN
GENERAL.—For purposes of this 
subsection, an eligible entity is a governmental 
agency or nonprofit organization that— 
‘‘(i) meets the application criteria set 
forth by the Secretary; and
397 
† HR 2642 EAS 
‘‘(ii) proposes a project that, at a min-
imum— 
‘‘(I) has the support of the State 
agency; 
‘‘(II) would increase the purchase 
of fruits and vegetables by low-income 
consumers participating in the supple-
mental nutrition assistance program 
by providing incentives at the point of 
purchase; 
‘‘(III) agrees to participate in the 
evaluation described in paragraph (4); 
‘‘(IV) ensures that the same terms 
and conditions apply to purchases 
made by individuals with benefits 
issued under this Act and incentives 
provided for in this subsection as 
apply to purchases made by individ-
uals who are not members of house-
holds receiving benefits, such as pro-
vided for in section 278.2(b) of title 7, 
Code of Federal Regulations (or a suc-
cessor regulation); and 
‘‘(V) includes effective and effi-
cient technologies for benefit redemp-
398 
† HR 2642 EAS 
tion systems that may be replicated in 
other for States and communities. 
‘‘(B) PRIORITY.—In awarding grants under 
this section, the Secretary shall give priority to 
projects that— 
‘‘(i) maximize the share of funds used 
for direct incentives to participants; 
‘‘(ii) use direct-to-consumer sales mar-
keting; 
‘‘(iii) demonstrate a track record of de-
signing and implementing successful nutri-
tion incentive programs that connect low- 
income consumers and agricultural pro-
ducers; 
‘‘(iv) provide locally or regionally pro-
duced fruits and vegetables; 
‘‘(v) are located in underserved com-
munities; or 
‘‘(vi) address other criteria as estab-
lished by the Secretary. 
‘‘(3) APPLICABILITY.— 
‘‘(A) IN GENERAL.—The value of any ben-
efit provided to a participant in any activity 
funded under this subsection shall not be consid-
399 
† HR 2642 EAS 
ered income or resources for any purpose under 
any Federal, State, or local law. 
‘‘(B) PROHIBITION
ON
COLLECTION
OF 
SALES TAXES.—Each State shall ensure that no 
State or local tax is collected on a purchase of 
food under this subsection. 
‘‘(C) NO
LIMITATION
ON
BENEFITS.—A 
grant made available under this subsection shall 
not be used to carry out any project that limits 
the use of benefits under the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.) or any other 
Federal nutrition law. 
‘‘(D) HOUSEHOLD ALLOTMENT.—Assistance 
provided under this subsection to households re-
ceiving benefits under the supplemental nutrition 
assistance program shall not— 
‘‘(i) be considered part of the supple-
mental nutrition assistance program bene-
fits of the household; or 
‘‘(ii) be used in the collection or dis-
position of claims under section 13 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 
2022). 
‘‘(4) EVALUATION.—
400 
† HR 2642 EAS 
‘‘(A) INDEPENDENT EVALUATION.—The Sec-
retary shall provide for an independent evalua-
tion of projects selected under this subsection that 
measures the impact of each project on— 
‘‘(i) improving the nutrition and 
health status of participating households re-
ceiving incentives under this subsection; and 
‘‘(ii) increasing fruit and vegetable 
purchases in participating households. 
‘‘(B) 
REQUIREMENT.—The 
independent 
evaluation under subparagraph (A) shall use rig-
orous methodologies capable of producing sci-
entifically valid information regarding the effec-
tiveness of a project. 
‘‘(C) COSTS.—The Secretary may use funds 
not to exceed 10 percent of the funding provided 
to carry out this section to pay costs associated 
with administering, monitoring, and evaluating 
each project. 
‘‘(c) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
subsection (b) $5,000,000 for each of fiscal years 2014 
through 2018.
401 
† HR 2642 EAS 
‘‘(2) MANDATORY FUNDING.—Of the funds of the 
Commodity Credit Corporation, the Secretary shall 
use to carry out subsection (b)— 
‘‘(A) $15,000,000 for fiscal year 2014; 
‘‘(B) $20,000,000 for each of fiscal years 
2015 through 2017; and 
‘‘(C) $25,000,000 for fiscal year 2018.’’. 
SEC. 4205. HEALTHY FOOD FINANCING INITIATIVE. 
Subtitle D of title II of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 242. HEALTHY FOOD FINANCING INITIATIVE. 
‘‘(a) PURPOSE.—The purpose of this section is to en-
hance the authorities of the Secretary to support efforts to 
provide access to healthy food by establishing an initiative 
to improve access to healthy foods in underserved areas, to 
create and preserve quality jobs, and to revitalize low-in-
come communities by providing loans and grants to eligible 
fresh, healthy food retailers to overcome the higher costs and 
initial barriers to entry in underserved areas. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘community development fi-
nancial institution’ has the meaning given the term 
in section 103 of the Community Development Bank-
402 
† HR 2642 EAS 
ing and Financial Institutions Act of 1994 (12 
U.S.C. 4702). 
‘‘(2) INITIATIVE.—The term ‘Initiative’ means 
the Healthy Food Financing Initiative established 
under subsection (c)(1). 
‘‘(3) NATIONAL FUND MANAGER.—The term ‘na-
tional fund manager’ means a community develop-
ment financial institution that is— 
‘‘(A) in existence on the date of enactment 
of this section; and 
‘‘(B) certified by the Community Develop-
ment Financial Institution Fund of the Depart-
ment of the Treasury to manage the Initiative 
for purposes of— 
‘‘(i) raising private capital; 
‘‘(ii) providing financial and technical 
assistance to partnerships; and 
‘‘(iii) funding eligible projects to at-
tract fresh, healthy food retailers to under-
served areas, in accordance with this sec-
tion. 
‘‘(4) PARTNERSHIP.—The term ‘partnership’ 
means a regional, State, or local public-private part-
nership that—
403 
† HR 2642 EAS 
‘‘(A) is organized to improve access to fresh, 
healthy foods; 
‘‘(B) provides financial and technical as-
sistance to eligible projects; and 
‘‘(C) meets such other criteria as the Sec-
retary may establish. 
‘‘(5) PERISHABLE FOOD.—The term ‘perishable 
food’ means a staple food that is fresh, refrigerated, 
or frozen. 
‘‘(6) QUALITY
JOB.—The term ‘quality job’ 
means a job that provides wages and other benefits 
comparable to, or better than, similar positions in ex-
isting businesses of similar size in similar local 
economies. 
‘‘(7) STAPLE FOOD.— 
‘‘(A) IN GENERAL.—The term ‘staple food’ 
means food that is a basic dietary item. 
‘‘(B) INCLUSIONS.—The term ‘staple food’ 
includes— 
‘‘(i) bread; 
‘‘(ii) flour; 
‘‘(iii) fruits; 
‘‘(iv) vegetables; and 
‘‘(v) meat. 
‘‘(c) INITIATIVE.—
404 
† HR 2642 EAS 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an initiative to achieve the purpose described 
in subsection (a) in accordance with this subsection. 
‘‘(2) IMPLEMENTATION.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN GENERAL.—In carrying out the 
Initiative, the Secretary shall provide fund-
ing to entities with eligible projects, as de-
scribed in subparagraph (B), subject to the 
priorities described in subparagraph (C). 
‘‘(ii) USE OF FUNDS.—Funds provided 
to an entity pursuant to clause (i) shall be 
used— 
‘‘(I) to create revolving loan pools 
of capital or other products to provide 
loans to finance eligible projects or 
partnerships; 
‘‘(II) to provide grants for eligible 
projects or partnerships; 
‘‘(III) to provide technical assist-
ance to funded projects and entities 
seeking Initiative funding; and 
‘‘(IV) to cover administrative ex-
penses of the national fund manager in
405 
† HR 2642 EAS 
an amount not to exceed 10 percent of 
the Federal funds provided. 
‘‘(B) ELIGIBLE PROJECTS.—Subject to the 
approval of the Secretary, the national fund 
manager shall establish eligibility criteria for 
projects under the Initiative, which shall include 
the existence or planned execution of agree-
ments— 
‘‘(i) to expand or preserve the avail-
ability of staple foods in underserved areas 
with moderate- and low-income populations 
by maintaining or increasing the number of 
retail outlets that offer an assortment of 
perishable food and staple food items, as de-
termined by the Secretary, in those areas; 
and 
‘‘(ii) to accept benefits under the sup-
plemental nutrition assistance program es-
tablished under the Food and Nutrition Act 
of 2008 (7 U.S.C. 2011 et seq.). 
‘‘(C) PRIORITIES.—In carrying out the Ini-
tiative, priority shall be given to projects that— 
‘‘(i) are located in severely distressed 
low-income communities, as defined by the 
Community Development Financial Institu-
406 
† HR 2642 EAS 
tions Fund of the Department of the Treas-
ury; and 
‘‘(ii) include 1 or more of the following 
characteristics: 
‘‘(I) The project will create or re-
tain quality jobs for low-income resi-
dents in the community. 
‘‘(II) The project supports re-
gional food systems and locally grown 
foods, to the maximum extent prac-
ticable. 
‘‘(III) In areas served by public 
transit, the project is accessible by pub-
lic transit. 
‘‘(IV) The project involves women- 
or minority-owned businesses. 
‘‘(V) The project receives funding 
from other sources, including other 
Federal agencies. 
‘‘(VI) The project otherwise ad-
vances the purpose of this section, as 
determined by the Secretary. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry out
407 
† HR 2642 EAS 
this section $125,000,000, to remain available until ex-
pended.’’. 
SEC. 4206. PULSE CROP PRODUCTS. 
(a) PURPOSE.—The purpose of this section is to en-
courage greater awareness and interest in the number and 
variety of pulse crop products available to schoolchildren, 
as recommended by the most recent Dietary Guidelines for 
Americans published under section 301 of the National Nu-
trition Monitoring and Related Research Act of 1990 (7 
U.S.C. 5341). 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE PULSE CROP.—The term ‘‘eligible 
pulse crop’’ means dry beans, dry peas, lentils, and 
chickpeas. 
(2) PULSE
CROP
PRODUCT.—The term ‘‘pulse 
crop product’’ means a food product derived in whole 
or in part from an eligible pulse crop. 
(c) PURCHASE OF PULSE CROPS AND PULSE CROP 
PRODUCTS.—In addition to the commodities delivered 
under section 6 of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1755), the Secretary shall purchase 
eligible pulse crops and pulse crop products for use in— 
(1) the school lunch program established under 
the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1751 et seq.); and
409 
† HR 2642 EAS 
and Forestry of the Senate and the Committee on Edu-
cation and the Workforce of the House of Representative a 
report describing the results of the evaluation. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000, to remain available until expended. 
SEC. 4207. DIETARY GUIDELINES FOR AMERICANS. 
Section 301(a) of the National Nutrition Monitoring 
and Related Research Act of 1990 (7 U.S.C. 5341(a)) is 
amended by adding at the end the following: 
‘‘(3) PREGNANT
WOMEN
AND
YOUNG
CHIL-
DREN.—Not later than the 2020 report and in each 
report thereafter, the Secretaries shall include na-
tional nutritional and dietary information and 
guidelines for pregnant women and children from 
birth until the age of 2.’’. 
SEC. 4208. PURCHASES OF LOCALLY PRODUCED FOODS. 
Section 9(j) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1758(j)) is amended— 
(1) by redesignating paragraphs (1) through (3) 
as subparagraphs (A) through (C), respectively, and 
indenting the subparagraphs appropriately; 
(2) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’;
410 
† HR 2642 EAS 
(3) in paragraph (1) (as so redesignated)— 
(A) in subparagraph (B)— 
(i) by striking ‘‘paragraph (1) of the 
policy described in that paragraph and 
paragraph (3)’’ and inserting ‘‘subpara-
graph (A) of the policy described in that 
subparagraph and subparagraph (C)’’; and 
(ii) by striking ‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) not later than 1 year after the date of 
enactment of this subparagraph, in accordance 
with paragraphs (2) and (3), conduct not fewer 
than 5 demonstration projects through school 
food authorities receiving funds under this Act 
and the Child Nutrition Act of 1966 (42 U.S.C. 
1771 et seq.) to facilitate the purchase of unproc-
essed and minimally processed locally grown and 
locally raised agricultural products.’’; and 
(4) by adding at the end the following: 
‘‘(2) SELECTION.—In conducting demonstration 
projects under paragraph (1)(D), the Secretary shall 
ensure that at least 1 project is located in a State in 
each of—
411 
† HR 2642 EAS 
‘‘(A) the Pacific Northwest Region; 
‘‘(B) the Northeast Region; 
‘‘(C) the Western Region; 
‘‘(D) the Midwest Region; and 
‘‘(E) the Southern Region. 
‘‘(3) PRIORITY.—In selecting States for partici-
pation in the demonstration projects under paragraph 
(2), the Secretary shall prioritize applications based 
on— 
‘‘(A) the quantity and variety of growers of 
local fruits and vegetables in the State; 
‘‘(B) the demonstrated commitment of the 
State to farm-to-school efforts, as evidenced by 
prior efforts to increase and promote farm-to- 
school programs in the State; and 
‘‘(C) whether the State contains a sufficient 
quantity of school districts of varying population 
sizes and geographical locations.’’. 
SEC. 4209. MULTIAGENCY TASK FORCE. 
Subtitle D of title II of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as 
amended by section 4205) is amended by adding at the end 
the following:
412 
† HR 2642 EAS 
‘‘SEC. 243. MULTIAGENCY TASK FORCE. 
‘‘(a) IN GENERAL.—The Secretary shall establish, in 
the office of the Under Secretary for Food, Nutrition, and 
Consumer Services, a multiagency task force for the purpose 
of providing coordination and direction for commodity pro-
grams. 
‘‘(b) COMPOSITION.—The Task Force shall be composed 
of at least 4 members, including— 
‘‘(1) a representative from the Food Distribution 
Division of the Food and Nutrition Service, who 
shall— 
‘‘(A) be appointed by the Under Secretary 
for Food, Nutrition, and Consumer Services; and 
‘‘(B) serve as Chairperson of the Task 
Force; 
‘‘(2) at least 1 representative from the Agricul-
tural Marketing Service, who shall be appointed by 
the Under Secretary for Marketing and Regulatory 
Programs; 
‘‘(3) at least 1 representative from the Farm 
Services Agency, who shall be appointed by the Under 
Secretary for Farm and Foreign Agricultural Serv-
ices; and 
‘‘(4) at least 1 representative from the Food Safe-
ty and Inspection Service, who shall be appointed by 
the Under Secretary for Food Safety.
413 
† HR 2642 EAS 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—The Task Force shall be re-
sponsible for evaluation and monitoring of the com-
modity programs to ensure that the commodity pro-
grams meet the mission of the Department— 
‘‘(A) to support the United States farm sec-
tor; and 
‘‘(B) to contribute to the health and well- 
being of individuals in the United States through 
the distribution of domestic agricultural products 
through commodity programs. 
‘‘(2) SPECIFIC DUTIES.—In carrying out para-
graph (1), the Task Force shall— 
‘‘(A) review and make recommendations re-
garding the specifications used for the procure-
ment of food commodities; 
‘‘(B) review and make recommendations re-
garding the efficient and effective distribution of 
food commodities; and 
‘‘(C) review and make recommendations re-
garding the degree to which the quantity, qual-
ity, and specifications of procured food commod-
ities align the needs of producers and the pref-
erences of recipient agencies.
414 
† HR 2642 EAS 
‘‘(d) REPORTS.—Not later than 1 year after the date 
of enactment of this section, and annually thereafter, the 
Secretary shall submit to Congress a report that describes, 
for the period covered by the report— 
‘‘(1) the findings and recommendations of the 
Task Force; and 
‘‘(2) policies implemented for the improvement of 
commodity procurement programs.’’. 
SEC. 4210. FOOD AND AGRICULTURE SERVICE LEARNING 
PROGRAM. 
Subtitle D of title II of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6951 et seq.) (as 
amended by section 4209) is amended by adding at the end 
the following: 
‘‘SEC. 244. FOOD AND AGRICULTURE SERVICE LEARNING 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) APPROVED NATIONAL SERVICE POSITION.— 
The term ‘approved national service position’ has the 
meaning given the term in section 101 of the National 
and Community Service Act of 1990 (42 U.S.C. 
12511)). 
‘‘(2) ELEMENTARY SCHOOL.—The term ‘elemen-
tary school’ has the meaning given the term in section
415 
† HR 2642 EAS 
9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801). 
‘‘(3) PROGRAM.—The term ‘Program’ means the 
Food and Agriculture Service Learning Program es-
tablished under subsection (b). 
‘‘(4) SECONDARY SCHOOL.—The term ‘secondary 
school’ has the meaning given the term in section 
9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801). 
‘‘(b) ESTABLISHMENT.—The Secretary shall establish 
a Food and Agriculture Service Learning Program to in-
crease knowledge of agriculture and improve the nutritional 
health of children. 
‘‘(c) PURPOSES.—The purposes of the Program are— 
‘‘(1) to increase capacity for food, garden, and 
nutrition education within host organizations or enti-
ties and school cafeterias and in the classroom; 
‘‘(2) to complement and build on the efforts of 
the farm to school programs implemented under sec-
tion 18(g) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1769(g)); 
‘‘(3) to complement efforts by the Department 
and school food authorities to implement school meal 
programs under section 4(b)(3) of the Richard B.
416 
† HR 2642 EAS 
Russell National School Lunch Act (42 U.S.C. 
1753(b)(3)); 
‘‘(4) to carry out activities that advance the nu-
tritional health of children and nutrition education 
in elementary schools and secondary schools; 
‘‘(5) to build on activities carried out by the 
Food and Nutrition Service and the Corporation for 
National and Community Service by providing funds 
to establish new approved national service positions 
for a national service program; and 
‘‘(6) to further expand the impact of the efforts 
described in paragraphs (1) through (5) through co-
ordination with the National Institute of Food and 
Agriculture. 
‘‘(d) ELIGIBILITY.—In carrying out the Program, the 
Secretary may make awards to an organization or other 
entity that, as determined by the Secretary— 
‘‘(1) has a proven track record in carrying out 
the activities described in subsection (c); 
‘‘(2) is designated as a national service organi-
zation by the Corporation for National and Commu-
nity Service under subtitle C of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 
12571 et seq.);
417 
† HR 2642 EAS 
‘‘(3) works in underserved rural and urban com-
munities; 
‘‘(4) teaches and engages children in experiential 
learning about agriculture, gardening, nutrition, 
cooking, and where food comes from; and 
‘‘(5) facilitates a connection between elementary 
schools and secondary schools and agricultural pro-
ducers in the local and regional area. 
‘‘(e) ACCOUNTABILITY.— 
‘‘(1) IN GENERAL.—The Secretary may require 
an organization or other entity receiving an award 
under subsection (d), or another qualified entity, to 
collect and report any data on the activities carried 
out under the Program, as determined by the Sec-
retary. 
‘‘(2) EVALUATION.—The Secretary shall— 
‘‘(A) conduct regular evaluation of the ac-
tivities carried out under the Program; and 
‘‘(B) submit to the Committee on Agri-
culture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that includes a de-
scription of the results of an evaluation con-
ducted under subparagraph (A). 
‘‘(f) FUNDING.—
418 
† HR 2642 EAS 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $25,000,000, to remain available until ex-
pended. 
‘‘(2) USE
OF
CERTAIN
FUNDS.—Of the funds 
made available to carry out this section for a fiscal 
year, 20 percent shall be made available to the Na-
tional Institute of Food and Agriculture to offset costs 
associated with hosting, training, and overseeing in-
dividuals in approved national service positions 
under the Program. 
‘‘(3) MAINTENANCE
OF
EFFORT.—Funds made 
available under paragraph (1) shall be used only to 
supplement, not to supplant, the amount of Federal 
funding otherwise expended for nutrition, research, 
and extension programs of the Department.’’.
419 
† HR 2642 EAS 
TITLE V—CREDIT 
Subtitle A—Farmer Loans, Serv-
icing, 
and 
Other 
Assistance 
Under the Consolidated Farm 
and Rural Development Act 
SEC. 5001. FARMER LOANS, SERVICING, AND OTHER ASSIST-
ANCE UNDER THE CONSOLIDATED FARM AND 
RURAL DEVELOPMENT ACT. 
The Consolidated Farm and Rural Development Act 
(as amended by section 6001) is amended by inserting after 
section 3002 the following: 
‘‘Subtitle A—Farmer Loans, 
Servicing, and Other Assistance 
‘‘CHAPTER 1—FARM OWNERSHIP LOANS 
‘‘SEC. 3101. FARM OWNERSHIP LOANS. 
‘‘(a) IN GENERAL.—The Secretary may make or guar-
antee a farm ownership loan under this chapter to an eligi-
ble farmer for a farm in the United States. 
‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 
subsection (a) only— 
‘‘(1) if the farmer, or, in the case of an entity, 
1 or more individuals holding a majority interest in 
the entity— 
‘‘(A) is a citizen of the United States; and
421 
† HR 2642 EAS 
Secretary determines to be appropriate, with respect 
to the entity and each farm in which the entity has 
an ownership or operator interest— 
‘‘(A) if— 
‘‘(i) a majority interest is held by indi-
viduals who are related by blood or mar-
riage, as defined by the Secretary; 
‘‘(ii) at least 1 of the individuals is or 
will be the operator of the farm; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(B) if— 
‘‘(i) all of the individuals who are or 
propose to become owners or operators of a 
farm are related by blood or marriage; 
‘‘(ii) all of the individuals are or pro-
pose to become operators of the farm; and 
‘‘(iii) each of the interests of the indi-
viduals separately constitutes not larger 
than a family farm even if the ownership 
interests of the individuals collectively con-
stitute larger than a family farm; or 
‘‘(C) if—
422 
† HR 2642 EAS 
‘‘(i) the entire interest is not held by 
individuals who are related by blood or 
marriage, as defined by the Secretary; 
‘‘(ii) all of the individuals are or pro-
pose to become farm operators; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(4) in the case of an entity that is, or will be-
come within a reasonable period of time, as deter-
mined by the Secretary, only the operator of a family 
farm, if the 1 or more individuals who are the owners 
of the family farm own— 
‘‘(A) a percentage of the family farm that 
exceeds 50 percent; or 
‘‘(B) such other percentage as the Secretary 
determines to be appropriate; 
‘‘(5) in the case of an operator described in 
paragraph (3) that is owned, in whole or in part, by 
1 or more other entities, if each of the individuals 
that have a direct or indirect ownership interest in 
such other entities also have a direct ownership inter-
est in the entity; and 
‘‘(6) if the farmer (or in the case of a farmer 
that is an entity, the 1 or more individuals that hold
423 
† HR 2642 EAS 
a majority interest in the entity) is unable to obtain 
credit elsewhere. 
‘‘(c) DIRECT LOANS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary may make a direct loan under this chapter 
only to a farmer who has participated in business op-
erations of a farm for not less than 3 years (or has 
other acceptable experience for a period of time deter-
mined by the Secretary) and— 
‘‘(A) is a qualified beginning farmer; 
‘‘(B) has not received a previous direct farm 
ownership loan made under this chapter; or 
‘‘(C) has not received a direct farm owner-
ship loan under this chapter more than 10 years 
before the date on which the new loan would be 
made. 
‘‘(2) YOUTH LOANS.—The operation of an enter-
prise by a youth under section 3201(d) shall not be 
considered the operation of a farm for purposes of 
paragraph (1). 
‘‘SEC. 3102. PURPOSES OF LOANS. 
‘‘(a) ALLOWED PURPOSES.— 
‘‘(1) DIRECT LOANS.—A farmer may use a direct 
loan made under this chapter only— 
‘‘(A) to acquire or enlarge a farm;
424 
† HR 2642 EAS 
‘‘(B) to make capital improvements to a 
farm; 
‘‘(C) to pay loan closing costs related to ac-
quiring, enlarging, or improving a farm; 
‘‘(D) to pay for activities to promote soil 
and water conservation and protection described 
in section 3103 on a farm; or 
‘‘(E) to refinance a temporary bridge loan 
made by a commercial or cooperative lender to 
a farmer for the acquisition of land for a farm, 
if— 
‘‘(i) the Secretary approved an appli-
cation for a direct farm ownership loan to 
the farmer for acquisition of the land; and 
‘‘(ii) funds for direct farm ownership 
loans under section 3201(a) were not avail-
able at the time at which the application 
was approved. 
‘‘(2) GUARANTEED LOANS.—A farmer may use a 
loan guaranteed under this chapter only— 
‘‘(A) to acquire or enlarge a farm; 
‘‘(B) to make capital improvements to a 
farm; 
‘‘(C) to pay loan closing costs related to ac-
quiring, enlarging, or improving a farm;
425 
† HR 2642 EAS 
‘‘(D) to pay for activities to promote soil 
and water conservation and protection described 
in section 3103 on a farm; or 
‘‘(E) to refinance indebtedness. 
‘‘(b) PREFERENCES.—In making or guaranteeing a 
loan under this chapter for purchase of a farm, the Sec-
retary shall give preference to a person who— 
‘‘(1) has a dependent family; 
‘‘(2) to the extent practicable, is able to make an 
initial down payment on the farm; or 
‘‘(3) is an owner of livestock or farm equipment 
that is necessary to successfully carry out farming op-
erations. 
‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec-
retary may not make a loan to a farmer under this chapter 
unless the farmer has, or agrees to obtain, hazard insurance 
on any real property to be acquired or improved with the 
loan. 
‘‘SEC. 3103. CONSERVATION LOAN AND LOAN GUARANTEE 
PROGRAM. 
‘‘(a) IN GENERAL.—The Secretary may make or guar-
antee qualified conservation loans to eligible borrowers 
under this section. 
‘‘(b) DEFINITIONS.—In this section:
426 
† HR 2642 EAS 
‘‘(1) CONSERVATION PLAN.—The term ‘conserva-
tion plan’ means a plan, approved by the Secretary, 
that, for a farming operation, identifies the conserva-
tion activities that will be addressed with loan funds 
provided under this section, including— 
‘‘(A) the installation of conservation struc-
tures to address soil, water, and related re-
sources; 
‘‘(B) the establishment of forest cover for 
sustained yield timber management, erosion con-
trol, or shelter belt purposes; 
‘‘(C) the installation of water conservation 
measures; 
‘‘(D) the installation of waste management 
systems; 
‘‘(E) the establishment or improvement of 
permanent pasture; 
‘‘(F) compliance with section 1212 of the 
Food Security Act of 1985 (16 U.S.C. 3812); and 
‘‘(G) other purposes consistent with the 
plan, including the adoption of any other emerg-
ing or existing conservation practices, tech-
niques, or technologies approved by the Sec-
retary.
427 
† HR 2642 EAS 
‘‘(2) QUALIFIED
CONSERVATION
LOAN.—The 
term ‘qualified conservation loan’ means a loan, the 
proceeds of which are used to cover the costs to the 
borrower of carrying out a qualified conservation 
project. 
‘‘(3) QUALIFIED CONSERVATION PROJECT.—The 
term ‘qualified conservation project’ means conserva-
tion measures that address provisions of a conserva-
tion plan of the eligible borrower. 
‘‘(c) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Secretary may make or 
guarantee loans to farmers. 
‘‘(2) REQUIREMENTS.—To be eligible for a loan 
under this section, applicants shall meet the citizen-
ship and training and experience requirements of sec-
tion 3101(b). 
‘‘(d) PRIORITY.—In making or guaranteeing loans 
under this section, the Secretary shall give priority to— 
‘‘(1) qualified beginning farmers and socially 
disadvantaged farmers; 
‘‘(2) owners or tenants who use the loans to con-
vert to sustainable or organic agricultural production 
systems; and 
‘‘(3) producers who use the loans to build con-
servation structures or establish conservation practices
428 
† HR 2642 EAS 
to comply with section 1212 of the Food Security Act 
of 1985 (16 U.S.C. 3812). 
‘‘(e) LIMITATIONS APPLICABLE
TO LOAN GUARAN-
TEES.—The portion of a loan that the Secretary may guar-
antee under this section shall not exceed 75 percent of the 
principal amount of the loan. 
‘‘(f) ADMINISTRATIVE PROVISIONS.—The Secretary 
shall ensure, to the maximum extent practicable, that loans 
made or guaranteed under this section are distributed 
across diverse geographic regions. 
‘‘(g) CREDIT ELIGIBILITY.—The provisions of para-
graphs (1) and (3) of section 3406(a) shall not apply to 
loans made or guaranteed under this section. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For each 
of fiscal years 2013 through 2018, there are authorized to 
be appropriated to the Secretary such sums as are necessary 
to carry out this section. 
‘‘SEC. 3104. LOAN MAXIMUMS. 
‘‘(a) MAXIMUM.— 
‘‘(1) IN GENERAL.—The Secretary shall make or 
guarantee no loan under sections 3101, 3102, 3103, 
3106, and 3107 that would cause the unpaid indebt-
edness under those sections of any 1 borrower to ex-
ceed the lesser of—
429 
† HR 2642 EAS 
‘‘(A) the value of the farm or other security, 
or 
‘‘(B)(i) in the case of a loan made by the 
Secretary, $300,000; or 
‘‘(ii) in the case of a loan guaranteed by the 
Secretary, $700,000 (as modified under para-
graph (2)). 
‘‘(2) MODIFICATION.—The amount specified in 
paragraph (1)(B)(ii) shall be— 
‘‘(A) increased, beginning with fiscal year 
2000, by the inflation percentage applicable to 
the fiscal year in which the loan is guaranteed; 
and 
‘‘(B) reduced by the amount of any unpaid 
indebtedness of the borrower on loans under 
chapter 2 that are guaranteed by the Secretary. 
‘‘(b) DETERMINATION OF VALUE.—In determining the 
value of the farm, the Secretary shall consider appraisals 
made by competent appraisers under rules established by 
the Secretary. 
‘‘(c) INFLATION PERCENTAGE.—For purposes of this 
section, the inflation percentage applicable to a fiscal year 
is the percentage (if any) by which— 
‘‘(1) the average of the Prices Paid By Farmers 
Index (as compiled by the National Agricultural Sta-
430 
† HR 2642 EAS 
tistics Service of the Department) for the 12-month 
period ending on August 31 of the immediately pre-
ceding fiscal year; exceeds 
‘‘(2) the average of that index (as so defined) for 
the 12-month period ending on August 31, 1996. 
‘‘SEC. 3105. REPAYMENT REQUIREMENTS FOR FARM OWN-
ERSHIP LOANS. 
‘‘(a) PERIOD FOR REPAYMENT.—The period for repay-
ment of a loan under this chapter shall not exceed 40 years. 
‘‘(b) INTEREST RATES.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this title, the interest rate on a loan under this 
chapter shall be determined by the Secretary at a 
rate— 
‘‘(A) not to exceed the sum obtained by add-
ing— 
‘‘(i) the current average market yield 
on outstanding marketable obligations of the 
United States with remaining periods to 
maturity comparable to the average matu-
rity of the loan; and 
‘‘(ii) an amount not to exceed 1 per-
cent, as determined by the Secretary; and 
‘‘(B) adjusted to the nearest 1⁄8 of 1 percent.
431 
† HR 2642 EAS 
‘‘(2) LOW INCOME FARM OWNERSHIP LOANS.— 
Except as provided in paragraph (3), the interest rate 
on a loan (other than a guaranteed loan) under sec-
tion 3106 shall be determined by the Secretary at a 
rate that is— 
‘‘(A) not greater than the sum obtained by 
adding— 
‘‘(i) an amount that does not exceed 1⁄2 
of the current average market yield on out-
standing marketable obligations of the 
United States with maturities of 5 years; 
and 
‘‘(ii) an amount not to exceed 1 per-
cent per year, as the Secretary determines is 
appropriate; and 
‘‘(B) not less than 5 percent per year. 
‘‘(3) JOINT FINANCING ARRANGEMENT.—If a di-
rect farm ownership loan is made under this chapter 
as part of a joint financing arrangement and the 
amount of the direct farm ownership loan does not ex-
ceed 50 percent of the total principal amount fi-
nanced under the arrangement, the interest rate on 
the direct farm ownership loan shall be at least 4 per-
cent annually.
432 
† HR 2642 EAS 
‘‘(4) GUARANTEED LOANS.—The interest rate on 
a loan made under this chapter as a guaranteed loan 
shall be such rate as may be agreed on by the bor-
rower and the lender, but not in excess of any rate 
determined by the Secretary. 
‘‘(c) PAYMENT OF CHARGES.—A borrower of a loan 
made or guaranteed under this chapter shall pay such fees 
and other charges as the Secretary may require, and prepay 
to the Secretary such taxes and insurance as the Secretary 
may require, on such terms and conditions as the Secretary 
may prescribe. 
‘‘(d) SECURITY.— 
‘‘(1) IN GENERAL.—The Secretary shall take as 
security for an obligation entered into in connection 
with a loan, a mortgage on a farm with respect to 
which the loan is made or such other security as the 
Secretary may require. 
‘‘(2) LIENS TO UNITED STATES.—An instrument 
for security under paragraph (1) may constitute a 
lien running to the United States notwithstanding the 
fact that the note for the security may be held by a 
lender other than the United States. 
‘‘(3) MULTIPLE LOANS.—A borrower may use the 
same collateral to secure 2 or more loans made or 
guaranteed under this chapter, except that the out-
433 
† HR 2642 EAS 
standing amount of the loans may not exceed the total 
value of the collateral. 
‘‘(e) MINERAL RIGHTS AS COLLATERAL.— 
‘‘(1) IN GENERAL.—In the case of a farm owner-
ship loan made after December 23, 1985, unless ap-
praised values of the rights to oil, gas, or other min-
erals are specifically included as part of the ap-
praised value of collateral securing the loan, the 
rights to oil, gas, or other minerals located under the 
property shall not be considered part of the collateral 
securing the loan. 
‘‘(2) COMPENSATORY
PAYMENTS.—Nothing in 
this subsection prevents the inclusion of, as part of the 
collateral securing the loan, any payment or other 
compensation the borrower may receive for damages 
to the surface of the collateral real estate resulting 
from the exploration for or recovery of minerals. 
‘‘(f) ADDITIONAL COLLATERAL.—The Secretary may 
not— 
‘‘(1) require any borrower to provide additional 
collateral to secure a farmer program loan made or 
guaranteed under this subtitle, if the borrower is cur-
rent in the payment of principal and interest on the 
loan; or
434 
† HR 2642 EAS 
‘‘(2) bring any action to foreclose, or otherwise 
liquidate, the loan as a result of the failure of a bor-
rower to provide additional collateral to secure the 
loan, if the borrower was current in the payment of 
principal and interest on the loan at the time the ad-
ditional collateral was requested. 
‘‘SEC. 3106. LIMITED-RESOURCE LOANS. 
‘‘(a) IN GENERAL.—The Secretary may make or guar-
antee a limited-resource loan for any of the purposes speci-
fied in sections 3102(a) or 3103(a) to a farmer in the 
United States who— 
‘‘(1) in the case of an entity, all members, stock-
holders, or partners are eligible under section 3101(b); 
‘‘(2) has a low income; and 
‘‘(3) demonstrates a need to maximize the in-
come of the farmer from farming operations. 
‘‘(b) INSTALLMENTS.—A loan made or guaranteed 
under this section shall be repayable in such installments 
as the Secretary determines will provide for reduced pay-
ments during the initial repayment period of the loan and 
larger payments during the remainder of the repayment pe-
riod of the loan. 
‘‘(c) INTEREST RATES.—Except as provided in section 
3105(b)(3) and in section 3204(b)(3), the interest rate on
435 
† HR 2642 EAS 
loans (other than guaranteed loans) under this section shall 
not be— 
‘‘(1) greater than the sum obtained by adding— 
‘‘(A) an amount that does not exceed 1⁄2 of 
the current average market yield on outstanding 
marketable obligations of the United States with 
maturities of 5 years; and 
‘‘(B) an amount not exceeding 1 percent per 
year, as the Secretary determines is appropriate; 
or 
‘‘(2) less than 5 percent per year. 
‘‘SEC. 3107. DOWNPAYMENT LOAN PROGRAM. 
‘‘(a) IN GENERAL.— 
‘‘(1) ESTABLISHMENT.—Notwithstanding any 
other provision of this chapter, the Secretary shall es-
tablish, under the farm ownership loan program es-
tablished under this chapter, a program under which 
loans shall be made under this section to a qualified 
beginning farmer or a socially disadvantaged farmer 
for a downpayment on a farm ownership loan. 
‘‘(2) COORDINATION.—The Secretary shall be the 
primary coordinator of credit supervision for the 
downpayment loan program established under this 
section, in consultation with a commercial or cooper-
436 
† HR 2642 EAS 
ative lender and, if applicable, a contracting credit 
counseling service selected under section 3420(c). 
‘‘(b) LOAN TERMS.— 
‘‘(1) PRINCIPAL.—Each loan made under this 
section shall be in an amount that does not exceed 45 
percent of the lesser of— 
‘‘(A) the purchase price of the farm to be 
acquired; 
‘‘(B) the appraised value of the farm to be 
acquired; or 
‘‘(C) $667,000. 
‘‘(2) INTEREST RATE.—The interest rate on any 
loan made by the Secretary under this section shall 
be a rate equal to the greater of— 
‘‘(A) the difference between— 
‘‘(i) 4 percent; and 
‘‘(ii) the interest rate for farm owner-
ship loans under this chapter; or 
‘‘(B) 1.5 percent. 
‘‘(3) DURATION.—Each loan under this section 
shall be made for a period of 20 years or less, at the 
option of the borrower. 
‘‘(4) REPAYMENT.—Each borrower of a loan 
under this section shall repay the loan to the Sec-
retary in equal annual installments.
437 
† HR 2642 EAS 
‘‘(5) NATURE
OF
RETAINED
SECURITY
INTER-
EST.—The Secretary shall retain an interest in each 
farm acquired with a loan made under this section 
that shall— 
‘‘(A) be secured by the farm; 
‘‘(B) be junior only to such interests in the 
farm as may be conveyed at the time of acquisi-
tion to the person (including a lender) from 
whom the borrower obtained a loan used to ac-
quire the farm; and 
‘‘(C) require the borrower to obtain the per-
mission of the Secretary before the borrower may 
grant an additional security interest in the 
farm. 
‘‘(c) LIMITATIONS.— 
‘‘(1) BORROWERS REQUIRED TO MAKE MINIMUM 
DOWN
PAYMENT.—The Secretary shall not make a 
loan under this section to any borrower with respect 
to a farm if the contribution of the borrower to the 
down payment on the farm will be less than 5 percent 
of the purchase price of the farm. 
‘‘(2) PROHIBITED
TYPES
OF
FINANCING.—The 
Secretary shall not make a loan under this section 
with respect to a farm if the farm is to be acquired
438 
† HR 2642 EAS 
with other financing that contains any of the fol-
lowing conditions: 
‘‘(A) The financing is to be amortized over 
a period of less than 30 years. 
‘‘(B) A balloon payment will be due on the 
financing during the 20-year period beginning 
on the date on which the loan is to be made by 
the Secretary. 
‘‘(d) ADMINISTRATION.—In carrying out this section, 
the Secretary shall, to the maximum extent practicable— 
‘‘(1) facilitate the transfer of farms from retiring 
farmers to persons eligible for insured loans under 
this subtitle; 
‘‘(2) make efforts to widely publicize the avail-
ability of loans under this section among— 
‘‘(A) potentially eligible recipients of the 
loans; 
‘‘(B) retiring farmers; and 
‘‘(C) applicants for farm ownership loans 
under this chapter; 
‘‘(3) encourage retiring farmers to assist in the 
sale of their farms to qualified beginning farmers and 
socially disadvantaged farmers providing seller fi-
nancing;
439 
† HR 2642 EAS 
‘‘(4) coordinate the loan program established by 
this section with State programs that provide farm 
ownership or operating loans for beginning farmers 
or socially disadvantaged farmers; and 
‘‘(5) establish annual performance goals to pro-
mote the use of the down payment loan program and 
other joint financing arrangements as the preferred 
choice for direct real estate loans made by any lender 
to a qualified beginning farmer or socially disadvan-
taged farmer. 
‘‘SEC. 3108. BEGINNING FARMER AND SOCIALLY DISADVAN-
TAGED FARMER CONTRACT LAND SALES PRO-
GRAM. 
‘‘(a) IN GENERAL.—The Secretary shall, in accordance 
with this section, guarantee a loan made by a private seller 
of a farm to a qualified beginning farmer or socially dis-
advantaged farmer on a contract land sales basis. 
‘‘(b) ELIGIBILITY.—To be eligible for a loan guarantee 
under subsection (a)— 
‘‘(1) the qualified beginning farmer or socially 
disadvantaged farmer shall— 
‘‘(A) on the date the contract land sale that 
is subject of the loan is complete, own and oper-
ate the farm that is the subject of the contract 
land sale;
440 
† HR 2642 EAS 
‘‘(B) have a credit history that— 
‘‘(i) includes a record of satisfactory 
debt repayment, as determined by the Sec-
retary; and 
‘‘(ii) is acceptable to the Secretary; 
and 
‘‘(C) demonstrate to the Secretary that the 
farmer is unable to obtain sufficient credit with-
out a guarantee to finance any actual need of the 
farmer at a reasonable rate or term; and 
‘‘(2) the loan shall meet applicable underwriting 
criteria, as determined by the Secretary. 
‘‘(c) LIMITATIONS.—The Secretary shall not provide a 
loan guarantee under subsection (a) if— 
‘‘(1) the contribution of the qualified beginning 
farmer or socially disadvantaged farmer to the down 
payment for the farm that is the subject of the con-
tract land sale would be less than 5 percent of the 
purchase price of the farm; or 
‘‘(2) the purchase price or the appraisal value of 
the farm that is the subject of the contract land sale 
is greater than $500,000. 
‘‘(d) PERIOD
OF GUARANTEE.—A loan guarantee 
under this section shall be in effect for the 10-year period 
beginning on the date on which the guarantee is provided.
441 
† HR 2642 EAS 
‘‘(e) GUARANTEE PLAN.— 
‘‘(1) SELECTION OF PLAN.—A private seller of a 
farm who makes a loan guaranteed by the Secretary 
under subsection (a) may select— 
‘‘(A) a prompt payment guarantee plan, 
which shall cover— 
‘‘(i) 3 amortized annual installments; 
or 
‘‘(ii) an amount equal to 3 annual in-
stallments (including an amount equal to 
the total cost of any tax and insurance in-
curred during the period covered by the an-
nual installments); or 
‘‘(B) a standard guarantee plan, which 
shall cover an amount equal to 90 percent of the 
outstanding principal of the loan. 
‘‘(2) ELIGIBILITY
FOR
STANDARD
GUARANTEE 
PLAN.—To be eligible for a standard guarantee plan 
referred to in paragraph (1)(B), a private seller 
shall— 
‘‘(A) secure a commercial lending institu-
tion or similar entity, as determined by the Sec-
retary, to serve as an escrow agent; or
442 
† HR 2642 EAS 
‘‘(B) in cooperation with the farmer, use an 
appropriate alternate arrangement, as deter-
mined by the Secretary. 
‘‘CHAPTER 2—OPERATING LOANS 
‘‘SEC. 3201. OPERATING LOANS. 
‘‘(a) IN GENERAL.—The Secretary may make or guar-
antee an operating loan under this chapter to an eligible 
farmer in the United States. 
‘‘(b) ELIGIBILITY.—A farmer shall be eligible under 
subsection (a) only— 
‘‘(1) if the farmer, or an individual holding a 
majority interest in the farmer— 
‘‘(A) is a citizen of the United States; and 
‘‘(B) has training or farming experience 
that the Secretary determines is sufficient to en-
sure a reasonable prospect of success in the farm-
ing operation proposed by the farmer; 
‘‘(2) in the case of a farmer that is an indi-
vidual, if the farmer is or proposes to become an oper-
ator of a farm that is not larger than a family farm; 
‘‘(3) in the case of a farmer that is a cooperative, 
corporation, partnership, trust, limited liability com-
pany, joint operation, or such other legal entity as the 
Secretary determines to be appropriate, with respect
443 
† HR 2642 EAS 
to the entity and each farm in which the entity has 
an ownership or operator interest— 
‘‘(A) if— 
‘‘(i) a majority interest is held by indi-
viduals who are related by blood or mar-
riage, as defined by the Secretary; 
‘‘(ii) at least 1 of the individuals is or 
will be the operator of the farm; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(B) if— 
‘‘(i) all of the individuals who are or 
propose to become owners or operators of a 
farm are related by blood or marriage; 
‘‘(ii) all of the individuals are or pro-
pose to become operators of the farm; and 
‘‘(iii) each of the interests of the indi-
viduals separately constitutes not larger 
than a family farm even if the ownership 
interests of the individuals collectively con-
stitute larger than a family farm; or 
‘‘(C) if— 
‘‘(i) the entire interest is not held by 
individuals who are related by blood or 
marriage, as defined by the Secretary;
444 
† HR 2642 EAS 
‘‘(ii) all of the individuals are or pro-
pose to become farm operators; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(4) in the case of an operator described in 
paragraph (3) that is owned, in whole or in part by 
1 or more other entities, if not less than 75 percent 
of the ownership interests of each other entity is 
owned directly or indirectly by 1 or more individuals 
who own the family farm; and 
‘‘(5) if the farmer (or in the case of a farmer 
that is an entity, the 1 or more individuals that hold 
a majority interest in the entity) is unable to obtain 
credit elsewhere. 
‘‘(c) DIRECT LOANS.— 
‘‘(1) IN GENERAL.—The Secretary may make a 
direct loan under this chapter only to a farmer who— 
‘‘(A) is a qualified beginning farmer; 
‘‘(B) has not received a previous direct op-
erating loan made under this chapter; or 
‘‘(C) has not received a direct operating 
loan made under this chapter for a total of 10 
years, plus any year the farmer or rancher did 
not receive a direct operating loan after the year 
in which the borrower initially received a direct
445 
† HR 2642 EAS 
operating loan under this chapter, as determined 
by the Secretary. 
‘‘(2) YOUTH LOANS.—In this subsection, the term 
‘direct operating loan’ shall not include a loan made 
to a youth under subsection (d). 
‘‘(3) WAIVERS.— 
‘‘(A) 
FARM
OPERATIONS
ON
TRIBAL 
LAND.—The Secretary shall waive the limitation 
under paragraph (1)(C) for a direct loan made 
under this chapter to a farmer whose farm land 
is subject to the jurisdiction of an Indian tribe 
and whose loan is secured by 1 or more security 
instruments that are subject to the jurisdiction of 
an Indian tribe if the Secretary determines that 
commercial credit is not generally available for 
such farm operations. 
‘‘(B) OTHER
FARM
OPERATIONS.—On a 
case-by-case determination not subject to admin-
istrative appeal, the Secretary may grant a bor-
rower a waiver, 1 time only for a period of 2 
years, of the limitation under paragraph (1)(C) 
for a direct operating loan if the borrower dem-
onstrates to the satisfaction of the Secretary 
that—
446 
† HR 2642 EAS 
‘‘(i) the borrower has a viable farm op-
eration; 
‘‘(ii) the borrower applied for commer-
cial credit from at least 2 commercial lend-
ers; 
‘‘(iii) the borrower was unable to ob-
tain a commercial loan (including a loan 
guaranteed by the Secretary); and 
‘‘(iv) the borrower successfully has 
completed, or will complete within 1 year, 
borrower training under section 3419 (from 
which requirement the Secretary shall not 
grant a waiver under section 3419(f)). 
‘‘(d) YOUTH LOANS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(b), except for citizenship and credit requirements, a 
loan may be made under this chapter to a youth who 
is a rural resident to enable the youth to operate an 
enterprise in connection with the participation in a 
youth organization, as determined by the Secretary. 
‘‘(2) FULL PERSONAL LIABILITY.—A youth re-
ceiving a loan under this subsection who executes a 
promissory note for the loan shall incur full personal 
liability for the indebtedness evidenced by the note, in
447 
† HR 2642 EAS 
accordance with the terms of the note, free of any dis-
ability of minority. 
‘‘(3) COSIGNER.—The Secretary may accept the 
personal liability of a cosigner of a promissory note 
for a loan under this subsection, in addition to the 
personal liability of the youth borrower. 
‘‘(4) YOUTH ENTERPRISES NOT FARMING.—The 
operation of an enterprise by a youth under this sub-
section shall not be considered the operation of a farm 
under this subtitle. 
‘‘(5) RELATION TO OTHER LOAN PROGRAMS.— 
Notwithstanding any other provision of law, if a bor-
rower becomes delinquent with respect to a youth loan 
made under this subsection, the borrower shall not be-
come ineligible, as a result of the delinquency, to re-
ceive loans and loan guarantees from the Federal gov-
ernment to pay for education expenses of the bor-
rower. 
‘‘(e) PILOT LOAN PROGRAM TO SUPPORT HEALTHY 
FOODS FOR THE HUNGRY.— 
‘‘(1) DEFINITION
OF
GLEANER.—In this sub-
section, the term ‘gleaner’ means an entity that— 
‘‘(A) collects edible, surplus food that would 
be thrown away and distributes the food to agen-
448 
† HR 2642 EAS 
cies or nonprofit organizations that feed the hun-
gry; or 
‘‘(B) harvests for free distribution to the 
needy, or for donation to agencies or nonprofit 
organizations for ultimate distribution to the 
needy, an agricultural crop that has been do-
nated by the owner of the crop. 
‘‘(2) PROGRAM.—Not later than 180 days after 
the date of enactment of this subsection, the Secretary 
shall establish, within the operating loan program es-
tablished under this chapter, a pilot program under 
which the Secretary makes loans available to eligible 
entities to assist the entities in providing food to the 
hungry. 
‘‘(3) ELIGIBILITY.—In addition to any other 
person eligible under the terms and conditions of the 
operating loan program established under this chap-
ter, gleaners shall be eligible to receive loans under 
this subsection. 
‘‘(4) LOAN AMOUNT.— 
‘‘(A) IN GENERAL.—Each loan issued under 
the program shall be in an amount of not less 
than $500 and not more than $5,000. 
‘‘(B) REDISTRIBUTION.—If the eligible re-
cipients in a State do not use the full allocation
449 
† HR 2642 EAS 
of loans that are available to eligible recipients 
in the State under this subsection, the Secretary 
may use any unused amounts to make loans 
available to eligible entities in other States in 
accordance with this subsection. 
‘‘(5) LOAN PROCESSING.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
process any loan application submitted under 
the program not later than 30 days after the 
date on which the application was submitted. 
‘‘(B) EXPEDITING APPLICATIONS.—The Sec-
retary shall take any measure the Secretary de-
termines necessary to expedite any application 
submitted under the program. 
‘‘(6) PAPERWORK
REDUCTION.—The Secretary 
shall take measures to reduce any paperwork require-
ments for loans under the program. 
‘‘(7) PROGRAM INTEGRITY.—The Secretary shall 
take such actions as are necessary to ensure the integ-
rity of the program established under this subsection. 
‘‘(8) MAXIMUM
AMOUNT.—Of funds that are 
made available to carry out this chapter, the Sec-
retary shall use to carry out this subsection a total 
amount of not more than $500,000.
450 
† HR 2642 EAS 
‘‘(9) REPORT.—Not later than 180 days after the 
maximum amount of funds are used to carry out this 
subsection under paragraph (8), 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 pilot program and the fea-
sibility of expanding the program. 
‘‘SEC. 3202. PURPOSES OF LOANS. 
‘‘(a) DIRECT LOANS.—A direct loan may be made 
under this chapter only— 
‘‘(1) to pay the costs incident to reorganizing a 
farm for more profitable operation; 
‘‘(2) to purchase livestock, poultry, or farm 
equipment; 
‘‘(3) to purchase feed, seed, fertilizer, insecticide, 
or farm supplies, or to meet other essential farm oper-
ating expenses, including cash rent; 
‘‘(4) to finance land or water development, use, 
or conservation; 
‘‘(5) to pay loan closing costs; 
‘‘(6) to assist a farmer in changing the equip-
ment, facilities, or methods of operation of a farm to 
comply with a standard promulgated under section 6 
of the Occupational Safety and Health Act of 1970
451 
† HR 2642 EAS 
(29 U.S.C. 655) or a standard adopted by a State 
under a plan approved under section 18 of that Act 
(29 U.S.C. 667), if the Secretary determines that 
without assistance under this paragraph the farmer is 
likely to suffer substantial economic injury in com-
plying with the standard; 
‘‘(7) to train a limited-resource borrower receiv-
ing a loan under section 3106 in maintaining records 
of farming operations; 
‘‘(8) to train a borrower under section 3419; 
‘‘(9) to refinance the indebtedness of a borrower, 
if the borrower— 
‘‘(A) has refinanced a loan under this chap-
ter not more than 4 times previously; and 
‘‘(B)(i) is a direct loan borrower under this 
subtitle at the time of the refinancing and has 
suffered a qualifying loss because of a natural or 
major disaster or emergency; or 
‘‘(ii) is refinancing a debt obtained from a 
creditor other than the Secretary; 
‘‘(10) to provide other farm or home needs, in-
cluding family subsistence; or 
‘‘(11) to assist a farmer in the production of a 
locally or regionally produced agricultural food prod-
uct (as defined in section 3601(e)(11)(A)), including
452 
† HR 2642 EAS 
to qualified producers engaged in direct-to-consumer 
marketing, direct-to-institution marketing, or direct- 
to-store marketing, business, or activities that produce 
a value-added agricultural product (as defined in sec-
tion 231(a) of the Agricultural Risk Protection Act of 
2000 (7 U.S.C. 1632a(a))). 
‘‘(b) GUARANTEED LOANS.—A loan may be guaran-
teed under this chapter only— 
‘‘(1) to pay the costs incident to reorganizing a 
farm for more profitable operation; 
‘‘(2) to purchase livestock, poultry, or farm 
equipment; 
‘‘(3) to purchase feed, seed, fertilizer, insecticide, 
or farm supplies, or to meet other essential farm oper-
ating expenses, including cash rent; 
‘‘(4) to finance land or water development, use, 
or conservation; 
‘‘(5) to refinance indebtedness; 
‘‘(6) to pay loan closing costs; 
‘‘(7) to assist a farmer in changing the equip-
ment, facilities, or methods of operation of a farm to 
comply with a standard promulgated under section 6 
of the Occupational Safety and Health Act of 1970 
(29 U.S.C. 655) or a standard adopted by a State 
under a plan approved under section 18 of that Act
453 
† HR 2642 EAS 
(29 U.S.C. 667), if the Secretary determines that 
without assistance under this paragraph the farmer is 
likely to suffer substantial economic injury due to 
compliance with the standard; 
‘‘(8) to train a borrower under section 3419; or 
‘‘(9) to provide other farm or home needs, in-
cluding family subsistence. 
‘‘(c) HAZARD INSURANCE REQUIREMENT.—The Sec-
retary may not make a loan to a farmer under this chapter 
unless the farmer has, or agrees to obtain, hazard insurance 
on the property to be acquired with the loan. 
‘‘(d) PRIVATE RESERVE.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this title, the Secretary may reserve a 
portion of any loan made under this chapter to be 
placed in an unsupervised bank account that may be 
used at the discretion of the borrower for the basic 
family needs of the borrower and the immediate fam-
ily of the borrower. 
‘‘(2) LIMIT ON SIZE OF THE RESERVE.—The size 
of the reserve shall not exceed the lesser of— 
‘‘(A) 10 percent of the loan; 
‘‘(B) $5,000; or 
‘‘(C) the amount needed to provide for the 
basic family needs of the borrower and the imme-
454 
† HR 2642 EAS 
diate family of the borrower for 3 calendar 
months. 
‘‘(e) LOANS TO LOCAL AND REGIONAL FOOD PRO-
DUCERS.— 
‘‘(1) TRAINING.—The Secretary shall ensure that 
loan officers processing loans under subsection (a)(11) 
receive appropriate training to serve borrowers and 
potential borrowers engaged in local and regional food 
production. 
‘‘(2) VALUATION.— 
‘‘(A) IN GENERAL.—The Secretary shall de-
velop ways to determine unit prices (or other ap-
propriate forms of valuation) for crops and other 
agricultural products, the end use of which is in-
tended to be in locally or regionally produced ag-
ricultural food products, to facilitate lending to 
local and regional food producers. 
‘‘(B) PRICE HISTORY.—The Secretary shall 
implement a mechanism for local and regional 
food producers to establish price history for the 
crops and other agricultural products produced 
by local and regional food producers. 
‘‘(3) OUTREACH.—The Secretary shall develop 
and implement an outreach strategy to engage and
455 
† HR 2642 EAS 
provide loan services to local and regional food pro-
ducers. 
‘‘SEC. 3203. RESTRICTIONS ON LOANS. 
‘‘(a) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Secretary may not make 
or guarantee a loan under this chapter— 
‘‘(A) that would cause the total principal 
indebtedness outstanding at any 1 time for loans 
made under this chapter to any 1 borrower to ex-
ceed— 
‘‘(i)(I) in the case of a loan made by 
the Secretary, $300,000; or 
‘‘(II) in the case of a loan guaranteed 
by the Secretary, $700,000 (as modified 
under paragraph (2)); or 
‘‘(B) for the purchasing or leasing of land 
other than for cash rent, or for carrying on a 
land leasing or land purchasing program. 
‘‘(2) MODIFICATION.—The amount specified in 
paragraph (1)(A)(ii) shall be— 
‘‘(A) increased, beginning with fiscal year 
2000, by the inflation percentage applicable to 
the fiscal year in which the loan is guaranteed; 
and
456 
† HR 2642 EAS 
‘‘(B) reduced by the unpaid indebtedness of 
the borrower on loans under sections specified in 
section 3104 that are guaranteed by the Sec-
retary. 
‘‘(b) INFLATION PERCENTAGE.—For purposes of this 
section, the inflation percentage applicable to a fiscal year 
is the percentage (if any) by which— 
‘‘(1) the average of the Prices Paid By Farmers 
Index (as compiled by the National Agricultural Sta-
tistics Service of the Department) for the 12-month 
period ending on August 31 of the immediately pre-
ceding fiscal year; exceeds 
‘‘(2) the average of that index (as so defined) for 
the 12-month period ending on August 31, 1996. 
‘‘SEC. 3204. TERMS OF LOANS. 
‘‘(a) PERSONAL LIABILITY.—A borrower of a loan 
made under this chapter shall secure the loan with the full 
personal liability of the borrower and such other security 
as the Secretary may prescribe. 
‘‘(b) INTEREST RATES.— 
‘‘(1) MAXIMUM RATE.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraphs (2) and (3), the interest rate on a 
loan made under this chapter (other than a 
guaranteed loan) shall be determined by the Sec-
457 
† HR 2642 EAS 
retary at a rate not to exceed the sum obtained 
by adding— 
‘‘(i) the current average market yield 
on outstanding marketable obligations of the 
United States with remaining periods to 
maturity comparable to the average matu-
rity of the loan; and 
‘‘(ii) an additional charge not to ex-
ceed 1 percent, as determined by the Sec-
retary. 
‘‘(B) ADJUSTMENT.—The sum obtained 
under subparagraph (A) shall be adjusted to the 
nearest 1⁄8 of 1 percent. 
‘‘(2) GUARANTEED LOAN.—The interest rate on a 
guaranteed loan made under this chapter shall be 
such rate as may be agreed on by the borrower and 
the lender, but may not exceed any rate prescribed by 
the Secretary. 
‘‘(3) LOW INCOME LOAN.—The interest rate on a 
direct loan made under this chapter to a low-income, 
limited-resource borrower shall be determined by the 
Secretary at a rate that is not— 
‘‘(A) greater than the sum obtained by add-
ing—
458 
† HR 2642 EAS 
‘‘(i) an amount that does not exceed 1⁄2 
of the current average market yield on out-
standing marketable obligations of the 
United States with a maturity of 5 years; 
and 
‘‘(ii) an amount not to exceed 1 per-
cent per year, as the Secretary determines is 
appropriate; or 
‘‘(B) less than 5 percent per year. 
‘‘(c) PERIOD FOR REPAYMENT.—The period for repay-
ment of a loan made under this chapter may not exceed 
7 years. 
‘‘(d) LINE-OF-CREDIT LOANS.— 
‘‘(1) IN GENERAL.—A loan made or guaranteed 
by the Secretary under this chapter may be in the 
form of a line-of-credit loan. 
‘‘(2) TERM.—A line-of-credit loan under para-
graph (1) shall terminate not later than 5 years after 
the date that the loan is made or guaranteed. 
‘‘(3) ELIGIBILITY.—For purposes of determining 
eligibility for an operating loan under this chapter, 
each year during which a farmer takes an advance or 
draws on a line-of-credit loan the farmer shall be con-
sidered as having received an operating loan for 1 
year.
459 
† HR 2642 EAS 
‘‘(4) TERMINATION OF DELINQUENT LOANS.—If 
a borrower does not pay an installment on a line-of- 
credit loan on schedule, the borrower may not take an 
advance or draw on the line-of-credit, unless the Sec-
retary determines that— 
‘‘(A) the failure of the borrower to pay on 
schedule was due to unusual conditions that the 
borrower could not control; and 
‘‘(B) the borrower will reduce the line-of- 
credit balance to the scheduled level at the end 
of— 
‘‘(i) the production cycle; or 
‘‘(ii) the marketing of the agricultural 
products of the borrower. 
‘‘(5) AGRICULTURAL
COMMODITIES.—A line-of- 
credit loan may be used to finance the production or 
marketing of an agricultural commodity that is eligi-
ble for a price support program of the Department. 
‘‘CHAPTER 3—EMERGENCY LOANS 
‘‘SEC. 3301. EMERGENCY LOANS. 
‘‘(a) IN GENERAL.—The Secretary shall make or guar-
antee an emergency loan under this chapter to an eligible 
farmer (including a commercial fisherman) only to the ex-
tent and in such amounts as provided in advance in appro-
priation Acts.
460 
† HR 2642 EAS 
‘‘(b) ELIGIBILITY.—An established farmer shall be eli-
gible under subsection (a) only— 
‘‘(1) if the farmer or an individual holding a 
majority interest in the farmer— 
‘‘(A) is a citizen of the United States; and 
‘‘(B) has experience and resources that the 
Secretary determines are sufficient to ensure a 
reasonable prospect of success in the farming op-
eration proposed by the farmer; 
‘‘(2) in the case of a farmer that is an indi-
vidual, if the farmer is— 
‘‘(A) in the case of a loan for a purpose 
under chapter 1, an owner, operator, or lessee- 
operator described in section 3101(b)(2); and 
‘‘(B) in the case of a loan for a purpose 
under chapter 2, an operator of a farm that is 
not larger than a family farm; 
‘‘(3) in the case of a farmer that is a cooperative, 
corporation, partnership, trust, limited liability com-
pany, joint operation, or such other legal entity as the 
Secretary determines to be appropriate, with respect 
to the entity and each farm in which the entity has 
an ownership or operator interest— 
‘‘(A) if—
461 
† HR 2642 EAS 
‘‘(i) a majority interest is held by indi-
viduals who are related by blood or mar-
riage, as defined by the Secretary; 
‘‘(ii) at least 1 of the individuals is or 
will be the operator of the farm; and 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(B) if— 
‘‘(i) all of the individuals who are or 
propose to become owners or operators of a 
farm are related by blood or marriage; 
‘‘(ii) all of the individuals are or pro-
pose to become operators of the farm; and 
‘‘(iii) each of the interests of the indi-
viduals separately constitutes not larger 
than a family farm even if the ownership 
interests of the individuals collectively con-
stitute larger than a family farm; or 
‘‘(C) if— 
‘‘(i) the entire interest is not held by 
individuals who are related by blood or 
marriage, as defined by the Secretary; 
‘‘(ii) all of the individuals are or pro-
pose to become farm operators; and
462 
† HR 2642 EAS 
‘‘(iii) the farm is not larger than a 
family farm; 
‘‘(4) if the entity is owned, in whole or in part, 
by 1 or more other entities and each individual who 
is an owner of the family farm involved has a direct 
or indirect ownership interest in each of the other en-
tities; 
‘‘(5) if the farmer (or in the case of a farmer 
that is an entity, the 1 or more individuals that hold 
a majority interest in the entity) is unable to obtain 
credit elsewhere; and 
‘‘(6)(A) if the Secretary finds that the operations 
of the farmer have been substantially affected by— 
‘‘(i) a natural or major disaster or emer-
gency designated by the President under the Rob-
ert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.); or 
‘‘(ii) a quarantine imposed by the Secretary 
under the Plant Protection Act (7 U.S.C. 7701 
et seq.) or the Animal Health Protection Act (7 
U.S.C. 8301 et seq.); or 
‘‘(B) if the farmer conducts farming operations 
in a county or a county contiguous to a county in 
which the Secretary has found that farming oper-
463 
† HR 2642 EAS 
ations have been substantially affected by a natural 
or major disaster or emergency. 
‘‘(c) TIME
FOR ACCEPTING
AN APPLICATION.—The 
Secretary shall accept an application for a loan under this 
chapter from a farmer at any time during the 8-month pe-
riod beginning on the date that— 
‘‘(1) the Secretary determines that farming oper-
ations of the farmer have been substantially affected 
by— 
‘‘(A) a quarantine imposed by the Secretary 
under the Plant Protection Act (7 U.S.C. 7701 
et seq.) or the Animal Health Protection Act (7 
U.S.C. 8301 et seq.); or 
‘‘(B) a natural disaster; or 
‘‘(2) the President makes a major disaster or 
emergency designation with respect to the affected 
county of the farmer referred to in subsection 
(b)(5)(B). 
‘‘(d) HAZARD INSURANCE REQUIREMENT.—The Sec-
retary may not make a loan to a farmer under this chapter 
to cover a property loss unless the farmer had hazard insur-
ance that insured the property at the time of the loss. 
‘‘(e) FAMILY FARM.—The Secretary shall conduct the 
loan program under this chapter in a manner that will fos-
ter and encourage the family farm system of agriculture,
464 
† HR 2642 EAS 
consistent with the reaffirmation of policy and declaration 
of the intent of Congress contained in section 102(a) of the 
Food and Agriculture Act of 1977 (7 U.S.C. 2266(a)). 
‘‘SEC. 3302. PURPOSES OF LOANS. 
‘‘Subject to the limitations on the amounts of loans 
provided in section 3303(a), a loan may be made or guar-
anteed under this chapter for— 
‘‘(1) any purpose authorized for a loan under 
chapter 1 or 2; and 
‘‘(2) crop or livestock purposes that are— 
‘‘(A) necessitated by a quarantine, natural 
disaster, major disaster, or emergency; and 
‘‘(B) considered desirable by the farmer. 
‘‘SEC. 3303. TERMS OF LOANS. 
‘‘(a) MAXIMUM AMOUNT
OF LOAN.—The Secretary 
may not make or guarantee a loan under this chapter to 
a borrower who has suffered a loss in an amount that— 
‘‘(1) exceeds the actual loss caused by a disaster; 
or 
‘‘(2) would cause the total indebtedness of the 
borrower under this chapter to exceed $500,000. 
‘‘(b) INTEREST RATES.—Any portion of a loan under 
this chapter up to the amount of the actual loss suffered 
by a farmer caused by a disaster shall be at a rate pre-
465 
† HR 2642 EAS 
scribed by the Secretary, but not in excess of 8 percent per 
annum. 
‘‘(c) 
INTEREST
SUBSIDIES
FOR
GUARANTEED 
LOANS.—In the case of a guaranteed loan under this chap-
ter, the Secretary may pay an interest subsidy to the lender 
for any portion of the loan up to the amount of the actual 
loss suffered by a farmer caused by a disaster. 
‘‘(d) TIME FOR REPAYMENT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
loan under this chapter shall be repayable at such 
times as the Secretary may determine, considering the 
purpose of the loan and the nature and effect of the 
disaster, but not later than the maximum repayment 
period allowed for a loan for a similar purpose under 
chapters 1 and 2. 
‘‘(2) EXTENDED REPAYMENT PERIOD.—The Sec-
retary may, if the loan is for a purpose described in 
chapter 2 and the Secretary determines that the need 
of the loan applicant justifies the longer repayment 
period, make the loan repayable at the end of a pe-
riod of more than 7 years, but not more than 20 
years. 
‘‘(e) SECURITY FOR LOAN.— 
‘‘(1) IN GENERAL.—A borrower of a loan made 
under this chapter shall secure the loan with the full
466 
† HR 2642 EAS 
personal liability of the borrower and such other secu-
rity as the Secretary may prescribe. 
‘‘(2) ADEQUATE
SECURITY.—Subject to para-
graph (3), the Secretary may not make or guarantee 
a loan under this chapter unless the security for the 
loan is adequate to ensure repayment of the loan. 
‘‘(3) INADEQUATE
SECURITY
DUE
TO
DIS-
ASTER.—If adequate security for a loan under this 
chapter is not available because of a disaster, the Sec-
retary shall accept as security any collateral that is 
available if the Secretary is confident that the collat-
eral and the repayment ability of the farmer are ade-
quate security for the loan. 
‘‘(4) VALUATION OF FARM ASSETS.—If a farm 
asset (including land, livestock, or equipment) is used 
as collateral to secure a loan applied for under this 
chapter and the governor of the State in which the 
farm is located requests assistance under this chapter 
or the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) for the 
portion of the State in which the asset is located, the 
Secretary shall establish the value of the asset as of 
the day before the occurrence of the natural or major 
disaster or emergency. 
‘‘(f) REVIEW OF LOAN.—
467 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—In the case of a loan made, 
but not guaranteed, under section 3301, the Secretary 
shall review the loan 3 years after the loan is made, 
and every 2 years thereafter for the term of the loan. 
‘‘(2) TERMINATION OF FEDERAL ASSISTANCE.— 
If, based on a review under paragraph (1), the Sec-
retary determines that the borrower is able to obtain 
a loan from a non-Federal source at reasonable rates 
and terms, the borrower shall, on request by the Sec-
retary, apply for, and accept, a non-Federal loan in 
a sufficient amount to repay the Secretary. 
‘‘SEC. 3304. PRODUCTION LOSSES. 
‘‘(a) IN GENERAL.—The Secretary shall make or guar-
antee a loan under this chapter to an eligible farmer for 
production losses if a single enterprise that constitutes a 
basic part of the farming operation of the farmer has sus-
tained at least a 30 percent loss in normal per acre or per 
animal production, or such lesser percentage as the Sec-
retary may determine, as a result of a disaster. 
‘‘(b) BASIS
FOR PERCENTAGE.—A percentage loss 
under subsection (a) shall be based on the average monthly 
price in effect for the previous crop or calendar year, as 
appropriate. 
‘‘(c) AMOUNT OF LOAN.—A loan under subsection (a) 
shall be in an amount that is equal to 80 percent, or such
468 
† HR 2642 EAS 
greater percentage as the Secretary may determine, of the 
total calculated actual production loss sustained by the 
farmer. 
‘‘CHAPTER 4—GENERAL FARMER LOAN 
PROVISIONS 
‘‘SEC. 3401. AGRICULTURAL CREDIT INSURANCE FUND. 
‘‘The fund established pursuant to section 11(a) of the 
Bankhead-Jones Farm Tenant Act (60 Stat. 1075, chapter 
964) shall be known as the Agricultural Credit Insurance 
Fund (referred to in this section as the ‘Fund’, unless the 
context otherwise requires) for the discharge of the obliga-
tions of the Secretary under agreements insuring loans 
under this subtitle and loans and mortgages insured under 
prior authority. 
‘‘SEC. 3402. GUARANTEED FARMER LOANS. 
‘‘(a) IN GENERAL.—The Secretary may provide finan-
cial assistance to a borrower for a purpose provided in this 
subtitle by guaranteeing a loan made by any Federal or 
State chartered bank, savings and loan association, cooper-
ative lending agency, or other legally organized lending 
agency. 
‘‘(b) INTEREST RATE.—The interest rate payable by 
a borrower on the portion of a guaranteed loan that is sold 
by a lender to the secondary market under this subtitle may 
be lower than the interest rate charged on the portion re-
469 
† HR 2642 EAS 
tained by the lender, but shall not exceed the average inter-
est rate charged by the lender on loans made to farm bor-
rowers. 
‘‘(c) FEES.—In the case of a loan guarantee on a loan 
made by a commercial or cooperative lender related to a 
loan made by the Secretary under section 3107— 
‘‘(1) the Secretary shall not charge a fee to any 
person (including a lender); and 
‘‘(2) a lender may charge a loan origination and 
servicing fee in an amount not to exceed 1 percent of 
the amount of the loan. 
‘‘(d) MAXIMUM GUARANTEE OF 90 PERCENT.—Except 
as provided in subsections (e) and (f), a loan guarantee 
under this subtitle shall be for not more than 90 percent 
of the principal and interest due on the loan. 
‘‘(e) REFINANCED LOANS GUARANTEED AT 95 PER-
CENT.—The Secretary shall guarantee 95 percent of— 
‘‘(1) in the case of a loan that solely refinances 
a direct loan made under this subtitle, the principal 
and interest due on the loan on the date of the refi-
nancing; or 
‘‘(2) in the case of a loan that is used for mul-
tiple purposes, the portion of the loan that refinances 
the principal and interest due on a direct loan made
470 
† HR 2642 EAS 
under this subtitle that is outstanding on the date the 
loan is guaranteed. 
‘‘(f) BEGINNING FARMER LOANS GUARANTEED UP TO 
95 PERCENT.—The Secretary may guarantee not more than 
95 percent of— 
‘‘(1) a farm ownership loan for acquiring a farm 
to a borrower who is participating in the downpay-
ment loan program under section 3107; or 
‘‘(2) an operating loan to a borrower who is par-
ticipating in the downpayment loan program under 
section 3107 that is made during the period that the 
borrower has a direct loan outstanding under chapter 
1 for acquiring a farm. 
‘‘(g) GUARANTEE OF LOANS MADE UNDER STATE BE-
GINNING FARMER PROGRAMS.—The Secretary may guar-
antee under this subtitle a loan made under a State begin-
ning farmer program, including a loan financed by the net 
proceeds of a qualified small issue agricultural bond for 
land or property described in section 144(a)(12)(B)(ii) of 
the Internal Revenue Code of 1986. 
‘‘(h) PARTIAL LIQUIDATIONS.—If a partial liquida-
tion of a delinquent loan is performed (with the prior con-
sent of the Secretary) as part of loan servicing by a guaran-
teed lender under this subtitle, the Secretary shall not re-
471 
† HR 2642 EAS 
quire full liquidation of the loan for the lender to be eligible 
to receive payment on losses. 
‘‘SEC. 3403. PROVISION OF INFORMATION TO BORROWERS. 
‘‘(a) APPROVAL NOTIFICATION.—The Secretary shall 
approve or disapprove an application for a loan or loan 
guarantee made under this subtitle, and notify the appli-
cant of such action, not later than 60 days after the date 
on which the Secretary has received a complete application 
for the loan or loan guarantee. 
‘‘(b) LIST OF LENDERS.—The Secretary shall make 
available to any farmer, on request, a list of lenders in the 
area that participate in guaranteed farmer program loan 
programs established under this subtitle, and other lenders 
in the area that express a desire to participate in the pro-
grams and that request inclusion on the list. 
‘‘(c) OTHER INFORMATION.— 
‘‘(1) IN GENERAL.—On the request of a borrower, 
the Secretary shall make available to the borrower— 
‘‘(A) a copy of each document signed by the 
borrower; 
‘‘(B) a copy of each appraisal performed 
with respect to the loan; and 
‘‘(C) any document that the Secretary is re-
quired to provide to the borrower under any law 
in effect on the date of the request.
472 
† HR 2642 EAS 
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 
shall not supersede any duty imposed on the Sec-
retary by a law in effect on January 5, 1988, unless 
the duty directly conflicts with a duty under para-
graph (1). 
‘‘SEC. 3404. NOTICE OF LOAN SERVICE PROGRAMS. 
‘‘(a) REQUIREMENT.—The Secretary shall provide no-
tice by certified mail to each borrower who is at least 90 
days past due on the payment of principal or interest on 
a loan made under this subtitle. 
‘‘(b) CONTENTS.—The notice required under subsection 
(a) shall— 
‘‘(1) include a summary of all primary loan 
service programs, homestead retention programs, debt 
settlement programs, and appeal procedures, includ-
ing the eligibility criteria, and terms and conditions 
of the programs and procedures; 
‘‘(2) include a summary of the manner in which 
the borrower may apply, and be considered, for all 
such programs, except that the Secretary shall not re-
quire the borrower to select among the programs or 
waive any right to be considered for any program 
carried out by the Secretary;
473 
† HR 2642 EAS 
‘‘(3) advise the borrower regarding all filing re-
quirements and any deadlines that must be met for 
requesting loan servicing; 
‘‘(4) provide any relevant forms, including ap-
plicable response forms; 
‘‘(5) advise the borrower that a copy of regula-
tions is available on request; and 
‘‘(6) be designed to be readable and understand-
able by the borrower. 
‘‘(c) CONTAINED IN REGULATIONS.—All notices re-
quired by this section shall be contained in the regulations 
issued to carry out this subtitle. 
‘‘(d) TIMING.—The notice described in subsection (b) 
shall be provided— 
‘‘(1) at the time an application is made for par-
ticipation in a loan service program; 
‘‘(2) on written request of the borrower; and 
‘‘(3) before the earliest of the date of— 
‘‘(A) initiating any liquidation; 
‘‘(B) requesting the conveyance of security 
property; 
‘‘(C) accelerating the loan; 
‘‘(D) repossessing property; 
‘‘(E) foreclosing on property; or 
‘‘(F) taking any other collection action.
474 
† HR 2642 EAS 
‘‘(e) CONSIDERATION
OF
BORROWERS
FOR
LOAN 
SERVICE PROGRAMS.— 
‘‘(1) IN GENERAL.—The Secretary shall consider 
a farmer program loan borrower for all loan service 
programs if, not later than 60 days after receipt of 
the notice described in subsection (b), the borrower re-
quests the consideration in writing. 
‘‘(2) PRIORITY.—In considering a borrower for a 
loan service program, the Secretary shall place the 
highest priority on the preservation of the farming 
operations of the borrower. 
‘‘SEC. 3405. PLANTING AND PRODUCTION HISTORY GUIDE-
LINES. 
‘‘(a) IN GENERAL.—The Secretary shall ensure that 
appropriate procedures, including, to the extent practicable, 
onsite inspections, or use of county or State yield averages, 
are used in calculating future yields for an applicant for 
a loan, when an accurate projection cannot be made because 
the past production history of the farmer has been affected 
by a natural or major disaster or emergency. 
‘‘(b) CALCULATION OF YIELDS.— 
‘‘(1) IN GENERAL.—For the purpose of averaging 
the past yields of the farm of a farmer over a period 
of crop years to calculate the future yield of the farm 
under this subtitle, the Secretary shall permit the
475 
† HR 2642 EAS 
farmer to exclude the crop year with the lowest actual 
or county average yield for the farm from the calcula-
tion, if the farmer was affected by a natural or major 
disaster or emergency during at least 2 of the crop 
years during the period. 
‘‘(2) AFFECTED BY A NATURAL OR MAJOR DIS-
ASTER OR EMERGENCY.—A farmer was affected by a 
natural or major disaster or emergency under para-
graph (1) if the Secretary finds that the farming op-
erations of the farmer have been substantially affected 
by a natural or major disaster or emergency, includ-
ing a farmer who has a qualifying loss but is not lo-
cated in a designated or declared disaster area. 
‘‘(3) APPLICATION OF SUBSECTION.—This sub-
section shall apply to any action taken by the Sec-
retary that involves— 
‘‘(A) a loan under chapter 1 or 2; and 
‘‘(B) the yield of a farm of a farmer, in-
cluding making a loan or loan guarantee, serv-
icing a loan, or making a credit sale. 
‘‘SEC. 3406. SPECIAL CONDITIONS AND LIMITATIONS ON 
LOANS. 
‘‘(a) APPLICANT REQUIREMENTS.—In connection with 
a loan made or guaranteed under this subtitle, the Sec-
retary shall require—
476 
† HR 2642 EAS 
‘‘(1) the applicant— 
‘‘(A) to certify in writing that, and the Sec-
retary shall determine whether, the applicant is 
unable to obtain credit elsewhere; and 
‘‘(B) to furnish an appropriate written fi-
nancial statement; 
‘‘(2) except for a guaranteed loan, an agreement 
by the borrower that if at any time it appears to the 
Secretary that the borrower may be able to obtain a 
loan from a production credit association, a Federal 
land bank, or other responsible cooperative or private 
credit source (or, in the case of a borrower under sec-
tion 3106, the borrower may be able to obtain a loan 
under section 3101), at reasonable rates and terms for 
loans for similar purposes and periods of time, the 
borrower will, on request by the Secretary, apply for 
and accept the loan in a sufficient amount to repay 
the Secretary or the insured lender, or both, and to 
pay for any stock necessary to be purchased in a co-
operative lending agency in connection with the loan; 
‘‘(3) such provision for supervision of the oper-
ations of the borrower as the Secretary shall consider 
necessary to achieve the objectives of the loan and pro-
tect the interests of the United States; and
477 
† HR 2642 EAS 
‘‘(4) the application of a person who is a veteran 
for a loan under chapter 1 or 2 to be given preference 
over a similar application from a person who is not 
a veteran if the applications are on file in a county 
or area office at the same time. 
‘‘(b) AGENCY PROCESSING REQUIREMENTS.— 
‘‘(1) NOTIFICATIONS.— 
‘‘(A) INCOMPLETE APPLICATION NOTIFICA-
TION.—If an application for a loan or loan 
guarantee under this subtitle (other than an op-
erating loan or loan guarantee) is incomplete, 
the Secretary shall inform the applicant of the 
reasons the application is incomplete not later 
than 20 days after the date on which the Sec-
retary has received the application. 
‘‘(B) OPERATING LOANS.— 
‘‘(i) ADDITIONAL INFORMATION NEED-
ED.—Not later than 10 calendar days after 
the Secretary receives an application for an 
operating loan or loan guarantee, the Sec-
retary shall notify the applicant of any in-
formation required before a decision may be 
made on the application. 
‘‘(ii) INFORMATION NOT RECEIVED.— 
If, not later than 20 calendar days after the
478 
† HR 2642 EAS 
date a request is made pursuant to clause 
(i) with respect to an application, the Sec-
retary has not received the information re-
quested, the Secretary shall notify the appli-
cant and the district office of the Farm 
Service Agency, in writing, of the out-
standing information. 
‘‘(C) REQUEST INFORMATION.— 
‘‘(i) IN GENERAL.—On receipt of an 
application, the Secretary shall request from 
other parties such information as may be 
needed in connection with the application. 
‘‘(ii) INFORMATION FROM AN AGENCY 
OF THE DEPARTMENT.—Not later than 15 
calendar days after the date on which an 
agency of the Department receives a request 
for information made pursuant to subpara-
graph (A), the agency shall provide the Sec-
retary with the requested information. 
‘‘(2) REPORT OF PENDING APPLICATIONS.— 
‘‘(A) IN GENERAL.—A county office shall 
notify the district office of the Farm Service 
Agency of each application for an operating loan 
or loan guarantee that is pending more than 45
479 
† HR 2642 EAS 
days after receipt, and the reasons for which the 
application is pending. 
‘‘(B) ACTION ON PENDING APPLICATIONS.— 
A district office that receives a notice provided 
under subparagraph (A) with respect to an ap-
plication shall immediately take steps to ensure 
that final action is taken on the application not 
later than 15 days after the date of the receipt 
of the notice. 
‘‘(C) PENDING APPLICATION REPORT.—The 
district office shall report to the State office of 
the Farm Service Agency on each application for 
an operating loan or loan guarantee that is 
pending more than 45 days after receipt, and the 
reasons for which the application is pending. 
‘‘(D) REPORT TO CONGRESS.—Each month, 
the Secretary shall notify the Committee on Ag-
riculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and For-
estry of the Senate, on a State-by-State basis, as 
to each application for an operating loan or loan 
guarantee on which final action had not been 
taken within 60 calendar days after receipt by 
the Secretary, and the reasons for which final ac-
tion had not been taken.
480 
† HR 2642 EAS 
‘‘(3) DISAPPROVALS.— 
‘‘(A) IN GENERAL.—If an application for a 
loan or loan guarantee under this subtitle is dis-
approved by the Secretary, the Secretary shall 
state the reasons for the disapproval in the notice 
required under paragraph (1). 
‘‘(B) DISAPPROVAL
DUE
TO
LACK
OF 
FUNDS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
paragraph (1), each application for a loan 
or loan guarantee under section 3601(e), or 
for a loan under section 3501(a) or 3502(a), 
that is to be disapproved by the Secretary 
solely because the Secretary lacks the funds 
necessary to make the loan or guarantee 
shall not be disapproved but shall be placed 
in pending status. 
‘‘(ii) 
RECONSIDERATION.—The 
Sec-
retary shall retain each pending applica-
tion and reconsider the application begin-
ning on the date that sufficient funds be-
come available. 
‘‘(iii) NOTIFICATION.—Not later than 
60 days after funds become available re-
garding each pending application, the Sec-
481 
† HR 2642 EAS 
retary shall notify the applicant of the ap-
proval or disapproval of funding for the ap-
plication. 
‘‘(4) APPROVALS ON APPEAL.—If an application 
for a loan or loan guarantee under this subtitle is dis-
approved by the Secretary, but that action is subse-
quently reversed or revised as the result of an appeal 
within the Department or to the courts of the United 
States and the application is returned to the Sec-
retary for further consideration, the Secretary shall 
act on the application and provide the applicant with 
notice of the action not later than 15 days after the 
date of return of the application to the Secretary. 
‘‘(5) PROVISION OF PROCEEDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), if an application for a guar-
anteed loan under this subtitle is approved by 
the Secretary, the Secretary shall provide the 
loan proceeds to the applicant not later than 15 
days (or such longer period as the applicant may 
approve) after the application for the loan is ap-
proved by the Secretary. 
‘‘(B) LACK OF FUNDS.—If the Secretary is 
unable to provide the loan proceeds to the appli-
cant during the 15-day period described in sub-
482 
† HR 2642 EAS 
paragraph (A) because sufficient funds are not 
available to the Secretary for that purpose, the 
Secretary shall provide the loan proceeds to the 
applicant as soon as practicable (but in no event 
later than 15 days unless the applicant agrees to 
a longer period) after sufficient funds for that 
purpose become available to the Secretary. 
‘‘SEC. 3407. GRADUATION OF BORROWERS. 
‘‘(a) GRADUATION OF SEASONED DIRECT LOAN BOR-
ROWERS TO THE LOAN GUARANTEE PROGRAM.— 
‘‘(1) REVIEW OF LOANS.— 
‘‘(A) IN
GENERAL.—The Secretary, or a 
contracting third party, shall annually review 
under section 3420 the loans of each seasoned di-
rect loan borrower. 
‘‘(B) ASSISTANCE.—If, based on the review, 
it is determined that a borrower would be able 
to obtain a loan, guaranteed by the Secretary, 
from a commercial or cooperative lender at rea-
sonable rates and terms for loans for similar 
purposes and periods of time, the Secretary shall 
assist the borrower in applying for the commer-
cial or cooperative loan. 
‘‘(2) PROSPECTUS.—
483 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—In accordance with sec-
tion 3422, the Secretary shall prepare a pro-
spectus on each seasoned direct loan borrower de-
termined eligible to obtain a guaranteed loan. 
‘‘(B) REQUIREMENTS.—The prospectus shall 
contain a description of the amounts of the loan 
guarantee and interest assistance that the Sec-
retary will provide to the seasoned direct loan 
borrower to enable the seasoned direct loan bor-
rower to carry out a financially viable farming 
plan if a guaranteed loan is made. 
‘‘(3) VERIFICATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
provide a prospectus of a seasoned direct loan 
borrower to each approved lender whose lending 
area includes the location of the seasoned direct 
loan borrower. 
‘‘(B) NOTIFICATION.—The Secretary shall 
notify each borrower of a loan that a prospectus 
has been provided to a lender under subpara-
graph (A). 
‘‘(C) CREDIT EXTENDED.—If the Secretary 
receives an offer from an approved lender to ex-
tend credit to the seasoned direct loan borrower 
under terms and conditions contained in the
484 
† HR 2642 EAS 
prospectus, the seasoned direct loan borrower 
shall not be eligible for a loan from the Secretary 
under chapter 1 or 2, except as otherwise pro-
vided in this section. 
‘‘(4) INSUFFICIENT ASSISTANCE OR OFFERS.—If 
the Secretary is unable to provide loan guarantees 
and, if necessary, interest assistance to the seasoned 
direct loan borrower under this section in amounts 
sufficient to enable the seasoned direct loan borrower 
to borrow from commercial sources the amount re-
quired to carry out a financially viable farming plan, 
or if the Secretary does not receive an offer from an 
approved lender to extend credit to a seasoned direct 
loan borrower under the terms and conditions con-
tained in the prospectus, the Secretary shall make a 
loan to the seasoned direct loan borrower under chap-
ter 1 or 2, whichever is applicable. 
‘‘(5) INTEREST RATE REDUCTIONS.—To the ex-
tent necessary for the borrower to obtain a loan, guar-
anteed by the Secretary, from a commercial or cooper-
ative lender, the Secretary shall provide interest rate 
reductions as provided for under section 3413. 
‘‘(b) TRANSITION TO PRIVATE COMMERCIAL OR OTHER 
SOURCES OF CREDIT.—
485 
† HR 2642 EAS 
‘‘(1) IN GENERAL.—In making an operating or 
ownership loan, the Secretary shall establish a plan 
and promulgate regulations (including performance 
criteria) that promote the goal of transitioning bor-
rowers to private commercial credit and other sources 
of credit in the shortest period of time practicable. 
‘‘(2) COORDINATION.—In carrying out this sec-
tion, the Secretary shall integrate and coordinate the 
transition policy described in subsection (a) with— 
‘‘(A) the borrower training program estab-
lished by section 3419; 
‘‘(B) the loan assessment process established 
by section 3420; 
‘‘(C) the supervised credit requirement es-
tablished by section 3421; 
‘‘(D) the market placement program estab-
lished by section 3422; and 
‘‘(E) other appropriate programs and au-
thorities, as determined by the Secretary. 
‘‘(c) GRADUATION OF BORROWERS WITH OPERATING 
LOANS OR GUARANTEES TO PRIVATE COMMERCIAL CRED-
IT.—The Secretary shall establish a plan, in coordination 
with activities under sections 3419 through 3422, to encour-
age each borrower with an outstanding loan under this 
chapter, or with respect to whom there is an outstanding
486 
† HR 2642 EAS 
guarantee under this chapter, to graduate to private com-
mercial or other sources of credit. 
‘‘SEC. 3408. DEBT ADJUSTMENT AND CREDIT COUNSELING. 
‘‘In carrying out this subtitle, the Secretary may— 
‘‘(1) provide voluntary debt adjustment assist-
ance between— 
‘‘(A) farmers; and 
‘‘(B) the creditors of the farmers; 
‘‘(2) cooperate with State, territorial, and local 
agencies and committees engaged in the debt adjust-
ment; and 
‘‘(3) give credit counseling. 
‘‘SEC. 3409. SECURITY SERVICING. 
‘‘(a) SALE OF PROPERTY.— 
‘‘(1) IN
GENERAL.—Subject to this subsection 
and subsection (e)(1), the Secretary shall offer to sell 
real property that is acquired by the Secretary under 
this subtitle using the following order and method of 
sale: 
‘‘(A) ADVERTISEMENT.—Not later than 15 
days after acquiring real property, the Secretary 
shall publicly advertise the property for sale. 
‘‘(B) QUALIFIED BEGINNING FARMER.— 
‘‘(i) IN GENERAL.—Not later than 135 
days after acquiring real property, the Sec-
487 
† HR 2642 EAS 
retary shall offer to sell the property to a 
qualified beginning farmer or a socially dis-
advantaged farmer at current market value 
based on a current appraisal. 
‘‘(ii) RANDOM
SELECTION.—If more 
than 1 qualified beginning farmer or so-
cially disadvantaged farmer offers to pur-
chase the property, the Secretary shall select 
between the qualified applicants on a ran-
dom basis. 
‘‘(iii) APPEAL
OF
RANDOM
SELEC-
TION.—A random selection or denial by the 
Secretary of a qualified beginning farmer or 
a socially disadvantaged farmer for farm 
inventory property under this subparagraph 
shall be final and not administratively ap-
pealable. 
‘‘(C) PUBLIC SALE.—If no acceptable offer 
is received from a qualified beginning farmer or 
a socially disadvantaged farmer under subpara-
graph (B) not later than 135 days after acquir-
ing the real property, the Secretary shall, not 
later than 30 days after the 135-day period, sell 
the property after public notice at a public sale,
488 
† HR 2642 EAS 
and, if no acceptable bid is received, by nego-
tiated sale, at the best price obtainable. 
‘‘(2) INTEREST.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), any conveyance of real property 
under this subsection shall include all of the in-
terest of the United States in the property, in-
cluding mineral rights. 
‘‘(B) CONSERVATION.—The Secretary may 
for conservation purposes grant or sell an ease-
ment, restriction, development right, or similar 
legal right to real property to a State, a political 
subdivision of a State, or a private nonprofit or-
ganization separately from the underlying fee or 
other rights to the property owned by the United 
States. 
‘‘(3) OTHER LAW.—Subtitle I of title 40, United 
States Code, and title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 
et seq.) shall not apply to any exercise of authority 
under this subtitle. 
‘‘(4) LEASE OF PROPERTY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary may not lease any real 
property acquired under this subtitle.
489 
† HR 2642 EAS 
‘‘(B) EXCEPTION.— 
‘‘(i) QUALIFIED
BEGINNING
FARMER 
OR
SOCIALLY
DISADVANTAGED
FARMER.— 
The Secretary may lease or contract to sell 
to a qualified beginning farmer or a so-
cially disadvantaged farmer a farm ac-
quired by the Secretary under this subtitle 
if the qualified beginning farmer qualifies 
for a credit sale or direct farm ownership 
loan under chapter 1 but credit sale author-
ity for loans or direct farm ownership loan 
funds, respectively, are not available. 
‘‘(ii) TERM.—The term of a lease or 
contract to sell to a qualified beginning 
farmer or a socially disadvantaged farmer 
under clause (i) shall be until the earlier 
of— 
‘‘(I) the date that is 18 months 
after the date of the lease or sale; or 
‘‘(II) the date that direct farm 
ownership loan funds or credit sale au-
thority for loans becomes available to 
the qualified beginning farmer or so-
cially disadvantaged farmer.
490 
† HR 2642 EAS 
‘‘(iii) 
INCOME-PRODUCING
CAPA-
BILITY.—In determining the rental rate on 
real property leased under this subpara-
graph, the Secretary shall consider the in-
come-producing capability of the property 
during the term that the property is leased. 
‘‘(5) EXPEDITED DETERMINATION.— 
‘‘(A) IN GENERAL.—On the request of an 
applicant, not later than 30 days after denial of 
the application, the appropriate State director 
shall provide an expedited review and deter-
mination of whether the applicant is a qualified 
beginning farmer or a socially disadvantaged 
farmer for the purpose of acquiring farm inven-
tory property. 
‘‘(B) APPEAL.—The determination of a 
State Director under subparagraph (A) shall be 
final and not administratively appealable. 
‘‘(C) EFFECTS OF DETERMINATIONS.— 
‘‘(i) IN GENERAL.—The Secretary shall 
maintain statistical data on the number 
and results of determinations made under 
subparagraph (A) and the effect of the deter-
minations on—
491 
† HR 2642 EAS 
‘‘(I) selling farm inventory prop-
erty to qualified beginning farmers or 
socially disadvantaged farmers; and 
‘‘(II) disposing of real property in 
inventory. 
‘‘(ii) NOTIFICATION.—The Secretary 
shall notify the Committee on Agriculture of 
the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and For-
estry of the Senate if the Secretary deter-
mines that the review process under sub-
paragraph (A) is adversely affecting the 
selling of farm inventory property to quali-
fied beginning farmers or socially disadvan-
taged farmers or the disposing of real prop-
erty in inventory. 
‘‘(b) ROAD AND UTILITY EASEMENTS AND CONDEMNA-
TIONS.—In the case of any real property administered 
under this subtitle, the Secretary may grant or sell ease-
ments or rights-of-way for roads, utilities, and other appur-
tenances that are not inconsistent with the public interest. 
‘‘(c) SALE OR LEASE OF FARMLAND.— 
‘‘(1) DISPOSITION OF REAL PROPERTY ON INDIAN 
RESERVATIONS.—
492 
† HR 2642 EAS 
‘‘(A) DEFINITION
OF
INDIAN
RESERVA-
TION.—In this paragraph, the term ‘Indian res-
ervation’ means— 
‘‘(i) all land located within the limits 
of any Indian reservation under the juris-
diction of the United States, notwith-
standing the issuance of any patent, and, 
including any right-of-way running through 
the reservation; 
‘‘(ii) trust or restricted land located 
within the boundaries of a former reserva-
tion of an Indian tribe in the State of Okla-
homa; or 
‘‘(iii) all Indian allotments the Indian 
titles to which have not been extinguished if 
the allotments are subject to the jurisdiction 
of an Indian tribe. 
‘‘(B) DISPOSITION.—Except as provided in 
paragraph (3), the Secretary shall dispose of or 
administer the property as provided in this 
paragraph when— 
‘‘(i) the Secretary acquires property 
under this subtitle that is located within an 
Indian reservation; and
493 
† HR 2642 EAS 
‘‘(ii) the borrower-owner is the Indian 
tribe that has jurisdiction over the reserva-
tion in which the real property is located or 
the borrower-owner is a member of the In-
dian tribe; 
‘‘(C) PRIORITY.—Not later than 90 days 
after acquiring the property, the Secretary shall 
afford an opportunity to purchase or lease the 
real property in accordance with the order of 
priority established under subparagraph (D) to 
the Indian tribe having jurisdiction over the In-
dian reservation within which the real property 
is located or, if no order of priority is established 
by the Indian tribe under subparagraph (D), in 
the following order: 
‘‘(i) An Indian member of the Indian 
tribe that has jurisdiction over the reserva-
tion within which the real property is lo-
cated. 
‘‘(ii) An Indian corporate entity. 
‘‘(iii) The Indian tribe. 
‘‘(D) REVISION OF PRIORITY AND RESTRIC-
TION OF ELIGIBILITY.—The governing body of 
any Indian tribe having jurisdiction over an In-
dian reservation may revise the order of priority
494 
† HR 2642 EAS 
provided in subparagraph (C) under which land 
located within the reservation shall be offered for 
purchase or lease by the Secretary under sub-
paragraph (C) and may restrict the eligibility 
for the purchase or lease to— 
‘‘(i) persons who are members of the 
Indian tribe; 
‘‘(ii) Indian corporate entities that are 
authorized by the Indian tribe to lease or 
purchase land within the boundaries of the 
reservation; or 
‘‘(iii) the Indian tribe itself. 
‘‘(E) TRANSFER
OF
PROPERTY
TO
SEC-
RETARY OF THE INTERIOR.— 
‘‘(i) IN GENERAL.—If real property de-
scribed in subparagraph (B) is not pur-
chased or leased under subparagraph (C) 
and the Indian tribe having jurisdiction 
over the reservation within which the real 
property is located is unable to purchase or 
lease the real property, the Secretary shall 
transfer the real property to the Secretary 
of the Interior who shall administer the real 
property as if the real property were held in
495 
† HR 2642 EAS 
trust by the United States for the benefit of 
the Indian tribe. 
‘‘(ii) USE OF RENTAL INCOME.—From 
the rental income derived from the lease of 
the transferred real property, and all other 
income generated from the transferred real 
property, the Secretary of the Interior shall 
pay the State, county, municipal, or other 
local taxes to which the transferred real 
property was subject at the time of acquisi-
tion by the Secretary, until the earlier of— 
‘‘(I) the expiration of the 4-year 
period beginning on the date on which 
the real property is so transferred; or 
‘‘(II) such time as the land is 
transferred into trust pursuant to sub-
paragraph (H). 
‘‘(F) 
RESPONSIBILITIES
OF
SECRE-
TARIES.—If any real property is transferred to 
the Secretary of the Interior under subparagraph 
(E)— 
‘‘(i) the Secretary of Agriculture shall 
have no further responsibility under this 
subtitle for—
496 
† HR 2642 EAS 
‘‘(I) collection of any amounts 
with regard to the farm program loan 
that had been secured by the real prop-
erty; 
‘‘(II) any lien arising out of the 
loan transaction; or 
‘‘(III) repayment of any amount 
with regard to the loan transaction or 
lien to the Treasury of the United 
States; and 
‘‘(ii) the Secretary of the Interior shall 
succeed to all right, title, and interest of the 
Secretary of Agriculture in the real estate 
arising from the farm program loan trans-
action, including the obligation to remit to 
the Treasury of the United States, in repay-
ment of the original loan, the amounts pro-
vided in subparagraph (G). 
‘‘(G) USE OF INCOME.—After the payment 
of any taxes that are required to be paid under 
subparagraph (E)(ii), all remaining rental in-
come derived from the lease of the real property 
transferred to the Secretary of the Interior under 
subparagraph (E)(i), and all other income gen-
erated from the real property transferred to the
497 
† HR 2642 EAS 
Secretary of the Interior under that subpara-
graph, shall be deposited as miscellaneous re-
ceipts in the Treasury of the United States until 
the amount deposited is equal to the lesser of— 
‘‘(i) the amount of the outstanding lien 
of the United States against the real prop-
erty, as of the date the real property was 
acquired by the Secretary; 
‘‘(ii) the fair market value of the real 
property, as of the date of the transfer to the 
Secretary of the Interior; or 
‘‘(iii) the capitalized value of the real 
property, as of the date of the transfer to the 
Secretary of the Interior. 
‘‘(H) HOLDING OF TITLE IN TRUST.—If the 
total amount that is required to be deposited 
under subparagraph (G) with respect to any real 
property has been deposited into the Treasury of 
the United States, title to the real property shall 
be held in trust by the United States for the ben-
efit of the Indian tribe having jurisdiction over 
the Indian reservation within which the real 
property is located. 
‘‘(I) PAYMENT OF REMAINING LIEN OR FAIR 
MARKET VALUE OF PROPERTY.—
498 
† HR 2642 EAS 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other subparagraph of this paragraph, 
the Indian tribe having jurisdiction over the 
Indian reservation within which the real 
property described in subparagraph (B) is 
located may, at any time after the real 
property has been transferred to the Sec-
retary of the Interior under subparagraph 
(E), offer to pay the remaining amount on 
the lien or the fair market value of the real 
property, whichever is less. 
‘‘(ii) EFFECT OF PAYMENT.—On pay-
ment of the amount, title to the real prop-
erty shall be held by the United States in 
trust for the tribe and the trust or restricted 
land that has been acquired by the Sec-
retary under foreclosure or voluntary trans-
fer under a loan made or insured under this 
subtitle and transferred to an Indian per-
son, entity, or tribe under this paragraph 
shall be considered to have never lost trust 
or restricted status. 
‘‘(J) APPLICABILITY.— 
‘‘(i) IN
GENERAL.—This paragraph 
shall apply to all land in the land inven-
499 
† HR 2642 EAS 
tory established under this subtitle (as of 
November 28, 1990) that was (immediately 
prior to the date) owned by an Indian bor-
rower-owner described in subparagraph (B) 
and that is situated within an Indian res-
ervation, regardless of the date of foreclosure 
or acquisition by the Secretary. 
‘‘(ii) OPPORTUNITY TO PURCHASE OR 
LEASE.—The Secretary shall afford an op-
portunity to an Indian person, entity, or 
tribe to purchase or lease the real property 
as provided in subparagraph (C). 
‘‘(iii) TRANSFER.—If the right is not 
exercised or no expression of intent to exer-
cise the right is received within 180 days 
after November 28, 1990, the Secretary shall 
transfer the real property to the Secretary 
of the Interior as provided in subparagraph 
(E). 
‘‘(2) ADDITIONAL RIGHTS.—The rights provided 
in this subsection shall be in addition to any right of 
first refusal under the law of the State in which the 
property is located. 
‘‘(3) DISPOSITION OF REAL PROPERTY ON INDIAN 
RESERVATIONS AFTER PROCEDURES EXHAUSTED.—
500 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—The Secretary shall dis-
pose of or administer real property described in 
paragraph (1)(B) only as provided in paragraph 
(1), as modified by this paragraph, if— 
‘‘(i) the real property described in 
paragraph (1)(B) is located within an In-
dian reservation; 
‘‘(ii) the borrower-owner is an Indian 
tribe that has jurisdiction over the reserva-
tion in which the real property is located or 
the borrower-owner is a member of an In-
dian tribe; 
‘‘(iii) the borrower-owner has obtained 
a loan made or guaranteed under this sub-
title; and 
‘‘(iv) the borrower-owner and the Sec-
retary have exhausted all of the procedures 
provided for in this subtitle to permit a bor-
rower-owner to retain title to the real prop-
erty, so that it is necessary for the borrower- 
owner to relinquish title. 
‘‘(B) NOTICE OF RIGHT TO CONVEY PROP-
ERTY.—The Secretary shall provide the bor-
rower-owner of real property that is described in 
subparagraph (A) with written notice of—
501 
† HR 2642 EAS 
‘‘(i) the right of the borrower-owner to 
voluntarily convey the real property to the 
Secretary; and 
‘‘(ii) the fact that real property so con-
veyed will be placed in the inventory of the 
Secretary. 
‘‘(C) NOTICE
OF
RIGHTS
AND
PROTEC-
TIONS.—The Secretary shall provide the bor-
rower-owner of the real property with written 
notice of the rights and protections provided 
under this subtitle to the borrower-owner, and 
the Indian tribe that has jurisdiction over the 
reservation in which the real property is located, 
from foreclosure or liquidation of the real prop-
erty, including written notice— 
‘‘(i) of paragraph (1), this paragraph, 
and subsection (e)(3); 
‘‘(ii) if the borrower-owner does not 
voluntarily convey the real property to the 
Secretary, that— 
‘‘(I) the Secretary may foreclose 
on the property; 
‘‘(II) in the event of foreclosure, 
the property will be offered for sale;
502 
† HR 2642 EAS 
‘‘(III) the Secretary shall offer a 
bid for the property that is equal to the 
fair market value of the property or 
the outstanding principal and interest 
of the loan, whichever is higher; 
‘‘(IV) the property may be pur-
chased by another party; and 
‘‘(V) if the property is purchased 
by another party, the property will not 
be placed in the inventory of the Sec-
retary and the borrower-owner will for-
feit the rights and protections provided 
under this subtitle; and 
‘‘(iii) of the opportunity of the bor-
rower-owner to consult with the Indian 
tribe that has jurisdiction over the reserva-
tion in which the real property is located or 
counsel to determine if State or tribal law 
provides rights and protections that are 
more beneficial than the rights and protec-
tions provided the borrower-owner under 
this subtitle. 
‘‘(D) ACCEPTANCE OF VOLUNTARY CONVEY-
ANCE.—
503 
† HR 2642 EAS 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), the Secretary shall accept the 
voluntary conveyance of real property de-
scribed in subparagraph (A). 
‘‘(ii) HAZARDOUS SUBSTANCES.—If a 
hazardous substance (as defined in section 
101(14) of the Comprehensive Environ-
mental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9601(14))) is 
located on the property and the Secretary 
takes remedial action to protect human 
health or the environment if the property is 
taken into inventory, the Secretary shall ac-
cept the voluntary conveyance of the prop-
erty only if the Secretary determines that 
the conveyance is in the best interests of the 
Federal Government. 
‘‘(E) FORECLOSURE PROCEDURES.— 
‘‘(i) NOTICE TO BORROWER.—If an In-
dian borrower-owner does not voluntarily 
convey to the Secretary real property de-
scribed in subparagraph (A), not less than 
30 days before a foreclosure sale of the prop-
erty, the Secretary shall provide the Indian 
borrower-owner with the option of—
504 
† HR 2642 EAS 
‘‘(I) requiring the Secretary to as-
sign the loan and security instruments 
to the Secretary of the Interior, if the 
Secretary of the Interior agrees to an 
assignment releasing the Secretary of 
Agriculture from all further responsi-
bility for collection of any amounts 
with regard to the loan secured by the 
real property; or 
‘‘(II) requiring the Secretary to 
assign the loan and security instru-
ments to the tribe having jurisdiction 
over the reservation in which the real 
property is located, if the tribe agrees 
to assume the loan under the terms 
specified in clause (iii). 
‘‘(ii) NOTICE TO TRIBE.—If an Indian 
borrower-owner does not voluntarily convey 
to the Secretary real property described in 
subparagraph (A), not less than 30 days be-
fore a foreclosure sale of the property, the 
Secretary shall provide written notice to the 
Indian tribe that has jurisdiction over the 
reservation in which the real property is lo-
cated of—
505 
† HR 2642 EAS 
‘‘(I) the sale; 
‘‘(II) the fair market value of the 
property; and 
‘‘(III) the requirements of this 
paragraph. 
‘‘(iii) ASSUMED LOANS.—If an Indian 
tribe assumes a loan under clause (i)— 
‘‘(I) the Secretary shall not fore-
close the loan because of any default 
that occurred prior to the date of the 
assumption; 
‘‘(II) the loan shall be for the less-
er of the outstanding principal and in-
terest of the loan or the fair market 
value of the property; and 
‘‘(III) the loan shall be treated as 
though the loan was made under Pub-
lic Law 91–229 (25 U.S.C. 488 et 
seq.). 
‘‘(F) AMOUNT OF BID BY SECRETARY.— 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), at a foreclosure sale of real 
property described in subparagraph (A), the 
Secretary shall offer a bid for the property 
that is equal to the higher of—
506 
† HR 2642 EAS 
‘‘(I) the fair market value of the 
property; or 
‘‘(II) the outstanding principal 
and interest on the loan. 
‘‘(ii) HAZARDOUS SUBSTANCES.—If a 
hazardous substance (as defined in section 
101(14) of the Comprehensive Environ-
mental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9601(14))) is 
located on the property and the Secretary 
takes remedial action to protect human 
health or the environment if the property is 
taken into inventory, clause (i) shall apply 
only if the Secretary determines that bid-
ding is in the best interests of the Federal 
Government. 
‘‘(4) DETRIMENTAL EFFECT ON VALUE OF AREA 
FARMLAND.—The Secretary shall not offer for sale or 
sell any farmland referred to in paragraphs (1) 
through (3) if placing the farmland on the market 
will have a detrimental effect on the value of farm-
land in the area. 
‘‘(5) INSTALLMENT SALES AND MULTIPLE OPERA-
TORS.—
507 
† HR 2642 EAS 
‘‘(A) IN GENERAL.—The Secretary may sell 
farmland 
administered 
under 
this 
subtitle 
through an installment sale or similar device 
that contains such terms as the Secretary con-
siders necessary to protect the investment of the 
Federal Government in the land. 
‘‘(B) SALE OF CONTRACT.—The Secretary 
may subsequently sell any contract entered into 
to carry out subparagraph (A). 
‘‘(6) HIGHLY ERODIBLE LAND.—In the case of 
farmland administered under this subtitle that is 
highly erodible land (as defined in section 1201 of the 
Food Security Act of 1985 (16 U.S.C. 3801)), the Sec-
retary may require the use of specified conservation 
practices on the land as a condition of the sale or 
lease of the land. 
‘‘(7) NO
EFFECT
ON
ACREAGE
ALLOTMENTS, 
MARKETING QUOTAS, OR ACREAGE BASES.—Notwith-
standing any other law, compliance by the Secretary 
with this subsection shall not cause any acreage allot-
ment, marketing quota, or acreage base assigned to 
the property to lapse, terminate, be reduced, or other-
wise be adversely affected. 
‘‘(8) NO PREEMPTION OF STATE LAW.—If a con-
flict exists between any provision of this subsection
508 
† HR 2642 EAS 
and any provision of the law of any State providing 
a right of first refusal to the owner of farmland or the 
operator of a farm before the sale or lease of land to 
any other person, the provision of State law shall pre-
vail. 
‘‘(d) RELEASE OF NORMAL INCOME SECURITY.— 
‘‘(1) DEFINITION
OF
NORMAL
INCOME
SECU-
RITY.—In this subsection: 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘normal income se-
curity’ means all security not considered basic 
security, including crops, livestock, poultry prod-
ucts, Farm Service Agency payments and Com-
modity Credit Corporation payments, and other 
property covered by Farm Service Agency liens 
that is sold in conjunction with the operation of 
a farm or other business. 
‘‘(B) EXCEPTIONS.—The term ‘normal in-
come security’ does not include any equipment 
(including fixtures in States that have adopted 
the Uniform Commercial Code), or foundation 
herd or flock, that is— 
‘‘(i) the basis of the farming or other 
operation; and