IB 
Union Calendar No. 164 
110TH CONGRESS 
1ST SESSION H. R. 2419 
[Report No. 110–256, Part I] 
To provide for the continuation of agricultural programs through fiscal year 
2012, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2007 
Mr. PETERSON of Minnesota introduced the following bill; which was referred 
to the Committee on Agriculture, and in addition to the Committee on 
Foreign Affairs, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
JULY 23, 2007 
Reported from the Committee on Agriculture with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 23, 2007 
Committee on Foreign Affairs discharged; committed to the Committee of the 
Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on May 22, 2007] 
A BILL 
To provide for the continuation of agricultural programs 
through fiscal year 2012, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Farm, Nutrition, and Bioenergy Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—COMMODITY PROGRAMS 
Sec. 1001. Definitions. 
Subtitle A—Direct Payments and Counter-Cyclical Payments 
Sec. 1101. Adjustments to base acres. 
Sec. 1102. Availability of direct payments. 
Sec. 1103. Availability of counter-cyclical payments. 
Sec. 1104. Availability of revenue-based counter-cyclical payments. 
Sec. 1105. Producer agreement required as condition of provision of direct pay-
ments and counter-cyclical payments. 
Sec. 1106. Planting flexibility. 
Sec. 1107. Period of effectiveness. 
Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-
modities. 
Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 
Sec. 1203. Term of loans. 
Sec. 1204. Repayment of loans. 
Sec. 1205. Loan deficiency payments. 
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 
Sec. 1207. Special marketing loan provisions for upland cotton. 
Sec. 1208. Special competitive provisions for extra long staple cotton. 
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 
cotton. 
Sec. 1210. Deadline for repayment of marketing assistance loan for peanuts. 
Sec. 1211. Commodity quality incentive payments for healthy oilseeds. 
Subtitle C—Sugar 
Sec. 1301. Sugar program. 
Sec. 1302. United States membership in the international sugar organization. 
Sec. 1303. Flexible marketing allotments for sugar. 
Subtitle D—Dairy-Related Provisions 
Sec. 1401. Dairy product price support program. 
Sec. 1402. Dairy forward pricing program. 
Sec. 1403. Dairy export incentive program. 
Sec. 1404. Revision of Federal marketing order amendment procedures. 
Sec. 1405. Dairy indemnity program. 
Sec. 1406. Extension of milk income loss contract program. 
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Sec. 1407. Dairy promotion and research program. 
Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat 
dry milk. 
Sec. 1409. Federal Milk Marketing Order Review Commission. 
Subtitle E—Administration 
Sec. 1501. Administration generally. 
Sec. 1502. Suspension of permanent price support authority. 
Sec. 1503. Payment Limitations. 
Sec. 1504. Adjusted gross income limitation. 
Sec. 1505. Adjustments of loans. 
Sec. 1506. Personal liability of producers for deficiencies. 
Sec. 1507. Extension of existing administrative authority regarding loans. 
Sec. 1508. Assignment of payments. 
Sec. 1509. Tracking of benefits. 
Sec. 1510. Upland cotton storage payments. 
Sec. 1511. Government publication of cotton price forecasts. 
TITLE II—CONSERVATION 
Subtitle A—Conservation Programs of the Food Security Act of 1985 
Sec. 2101. Conservation reserve program. 
Sec. 2102. Wetlands reserve program. 
Sec. 2103. Conservation security program. 
Sec. 2104. Grassland reserve program. 
Sec. 2105. Environmental quality incentives program. 
Sec. 2106. Regional water enhancement program. 
Sec. 2107. Grassroots source water protection program. 
Sec. 2108. Conservation of private grazing land. 
Sec. 2109. Great Lakes basin program for soil erosion and sediment control. 
Sec. 2110. Farm and ranchland protection program. 
Sec. 2111. Farm viability program. 
Sec. 2112. Wildlife habitat incentive program. 
Subtitle B—Conservation Programs Under Other Laws 
Sec. 2201. Agricultural management assistance program. 
Sec. 2202. Resource Conservation and Development Program. 
Sec. 2203. Small watershed rehabilitation program. 
Subtitle C—Additional Conservation Programs 
Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control. 
Sec. 2302. Voluntary public access and habitat incentive program. 
Subtitle D—Administration and Funding 
Sec. 2401. Funding of conservation programs under Food Security Act of 1985. 
Sec. 2402. Improved provision of technical assistance under conservation pro-
grams. 
Sec. 2403. Cooperative conservation partnership initiative. 
Sec. 2404. Regional equity and flexibility. 
Sec. 2405. Administrative requirements for conservation programs. 
Sec. 2406. Annual report on participation by specialty crop producers in con-
servation programs. 
Sec. 2407. Promotion of market-based approaches to conservation. 
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Sec. 2408. Establishment of State technical committees and their responsibilities. 
Sec. 2409. Payment limitations. 
Subtitle E—Miscellaneous Provisions 
Sec. 2501. Inclusion of income from affiliated packing and handling operations 
as income derived from farming for application of adjusted gross 
income limitation on eligibility for conservation programs. 
Sec. 2502. Encouragement of voluntary sustainability practices guidelines. 
Sec. 2503. Farmland resource information. 
TITLE III—TRADE 
Sec. 3001. Agricultural Trade Development and Assistance Act of 1954. 
Sec. 3002. Export credit guarantee program. 
Sec. 3003. Market access program. 
Sec. 3004. Food for Progress Act of 1985. 
Sec. 3005. McGovern-Dole International Food for Education and Child Nutrition 
program. 
Sec. 3006. Bill Emerson Humanitarian Trust. 
Sec. 3007. Technical assistance for specialty crops. 
Sec. 3008. Technical assistance for the resolution of trade disputes. 
Sec. 3009. Representation by the United States at international standard-setting 
bodies. 
Sec. 3010. Foreign market development cooperator program. 
Sec. 3011. Emerging markets. 
Sec. 3012. Export Enhancement Program. 
Sec. 3013. Minimum level of nonemergency food assistance. 
Sec. 3014. Germplasm conservation. 
TITLE IV—NUTRITION PROGRAMS 
Subtitle A—Food Stamp Program 
Sec. 4001. Renaming the food stamp program. 
Sec. 4002. Definition of drug addiction or alcoholic treatment and rehabilitation 
program. 
Sec. 4003. Nutrition education. 
Sec. 4004. Food distribution on Indian reservations. 
Sec. 4005. Deobligate food stamp coupons. 
Sec. 4006. Allow for the accrual of benefits. 
Sec. 4007. State option for telephonic signature. 
Sec. 4008. Review of major changes in program design. 
Sec. 4009. Grants for simple application and eligibility determination systems 
and improved access to benefits. 
Sec. 4010. Civil money penalties and disqualification of retail food stores and 
wholesale food concerns. 
Sec. 4011. Major systems failures. 
Sec. 4012. Funding of employment and training programs. 
Sec. 4013. Reductions in payments for administrative costs. 
Sec. 4014. Cash payment pilot projects. 
Sec. 4015. Findings of Congress regarding Secure Supplemental Nutrition Assist-
ance program nutrition education. 
Sec. 4016. Nutrition education and promotion initiative to address obesity. 
Sec. 4017. Authorization of appropriations. 
Sec. 4018. Consolidated block grants for Puerto Rico and American Samoa. 
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Sec. 4019. Study on comparable access to Secure Supplemental Nutrition Assist-
ance Program benefits for Puerto Rico. 
Sec. 4020. Reauthorization of community food project competitive grants. 
Sec. 4021. Emergency food assistance. 
Subtitle B—Commodity Distribution 
Sec. 4201. Authorization of appropriations. 
Sec. 4202. Distribution of surplus commodities; special nutrition projects. 
Sec. 4203. Commodity distribution program. 
Subtitle C—Child Nutrition and Related Programs 
Sec. 4301. Purchase of fresh fruits and vegetables for distribution to schools and 
service institutions. 
Sec. 4302. Buy American requirements. 
Sec. 4303. Expansion of fresh fruit and vegetable program. 
Sec. 4304. Purchases of locally produced foods. 
Subtitle D—Miscellaneous 
Sec. 4401. Seniors farmers’ market nutrition program. 
Sec. 4402. Congressional Hunger Center. 
Sec. 4403. Joint nutrition monitoring and related research activities. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Conservation loan guarantee program. 
Sec. 5002. Limitations on amount of ownership loans. 
Sec. 5003. Down payment loan program. 
Sec. 5004. Beginning farmer and rancher contract land sales program. 
Subtitle B—Operating Loans 
Sec. 5011. Limitations on amount of operating loans. 
Sec. 5012. Suspension of limitation on period for which borrowers are eligible for 
guaranteed assistance. 
Subtitle C—Administrative Provisions 
Sec. 5021. Inventory sales preferences. 
Sec. 5022. Loan fund set-asides. 
Sec. 5023. Transition to private commercial or other sources of credit. 
Sec. 5024. Extension of the right of first refusal to reacquire homestead property 
to immediate family members of borrower-owner. 
Sec. 5025. Rural development and farm loan program activities. 
Subtitle D—Farm Credit 
Sec. 5031. Agribusiness loan eligibility. 
Sec. 5032. Loan-to-asset value requirements. 
Sec. 5033. Population limit for single-family housing loans. 
Sec. 5034. Bank for cooperatives voting stock. 
Sec. 5035. Majority farmer control requirement. 
Sec. 5036. Borrower stock requirement. 
Sec. 5037. Rural utility loans. 
Sec. 5038. Farm Credit System Insurance Corporation. 
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Sec. 5039. Risk-based capital levels. 
Sec. 5040. Loans to purchasers of highly fractioned lands. 
TITLE VI—RURAL DEVELOPMENT 
Sec. 6001. Definition of rural. 
Sec. 6002. Water, waste disposal, and wastewater facility grants. 
Sec. 6003. Rural business opportunity grants. 
Sec. 6004. Rural water and wastewater circuit rider program. 
Sec. 6005. Tribal college and university essential community facilities. 
Sec. 6006.
Emergency and imminent community water assistance grant pro-
gram. 
Sec. 6007. Water systems for rural and native villages in Alaska. 
Sec. 6008. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water 
well systems in rural areas for individuals with low or moderate 
incomes. 
Sec. 6009. Rural cooperative development grants. 
Sec. 6010. Criteria to be applied in
providing loans and loan guarantees under 
the business and industry loan program. 
Sec. 6011. Appropriate technology transfer for rural areas program. 
Sec. 6012. Grants to improve technical infrastructure and improve quality of 
rural health care facilities. 
Sec. 6013. Rural entrepreneur and microenterprise assistance program. 
Sec. 6014. Criteria to be applied in considering applications for rural develop-
ment projects. 
Sec. 6015. National sheep industry improvement center. 
Sec. 6016. National rural development partnership. 
Sec. 6017. Historic barn preservation. 
Sec. 6018. Grants for NOAA weather radio transmitters. 
Sec. 6019. Delta regional authority. 
Sec. 6020. Northern great plains regional authority. 
Sec. 6021. Rural strategic investment program. 
Sec. 6022. Expansion of 911 access. 
Sec. 6023. Access to broadband telecommunications services in rural areas. 
Sec. 6024. Community connect grant program. 
Sec. 6025. Agriculture innovation center demonstration program. 
Sec. 6026. Rural firefighters and emergency medical service assistance program. 
Sec. 6027. Value-added agricultural market development program. 
Sec. 6028. Assistance for rural public television stations. 
Sec. 6029. Telemedicine and distance learning services in rural areas. 
Sec. 6030. Guarantees for bonds and notes issued for electrification or telephone 
purposes. 
Sec. 6031. Comprehensive rural broadband strategy. 
Sec. 6032. Study of railroad issues. 
TITLE VII—RESEARCH 
Subtitle A—General Provisions 
Sec. 7101. Definitions. 
Sec. 7102. Budget submission and funding. 
Sec. 7103. Additional purposes of agricultural research and extension. 
Sec. 7104. National agricultural research program office. 
Sec. 7105. Establishment of competitive grant programs under the National Insti-
tute for Food and Agriculture. 
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Sec. 7106. Merging of IFAFS and NRI. 
Sec. 7107. Capacity building grants for ASCARR institutions. 
Sec. 7108. Establishment of research laboratories for animal diseases. 
Sec. 7109. Grazinglands research laboratory. 
Sec. 7110. Researcher training. 
Sec. 7111. Fort Reno Science Park research facility. 
Sec. 7112. Assessing the nutritional composition of beef products. 
Sec. 7113. Sense of Congress regarding funding for human nutrition research. 
Subtitle B—National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 
Sec. 7201. Advisory board. 
Sec. 7202. Advisory board termination. 
Sec. 7203. Renewable energy committee. 
Sec. 7204. Specialty crop committee report. 
Sec. 7205. Inclusion of UDC in grants and fellowships for food and agricultural 
sciences education. 
Sec. 7206. Grants and fellowships for food and agricultural sciences education. 
Sec. 7207. Grants for research on production and marketing of alcohols and in-
dustrial hydrocarbons from agricultural commodities and forest 
products. 
Sec. 7208. Policy research centers. 
Sec. 7209. Human nutrition intervention and health promotion research pro-
gram. 
Sec. 7210. Pilot research program to combine medical and agricultural research. 
Sec. 7211. Nutrition education program. 
Sec. 7212. Continuing animal health and disease research programs. 
Sec. 7213. Cooperation among eligible institutions. 
Sec. 7214. Appropriations for research on national or regional problems. 
Sec. 7215. Authorization level of extension at 1890 land-grant colleges. 
Sec. 7216. Authorization level for agricultural research at 1890 land-grant col-
leges. 
Sec. 7217. Grants to upgrade agriculture and food sciences facilities at the Dis-
trict of Columbia Land Grant University. 
Sec. 7218. Grants to upgrade agricultural and food sciences facilities at 1890 
land-grant colleges, including Tuskegee University. 
Sec. 7219. National research and training virtual centers. 
Sec. 7220. Matching funds requirement for research and extension activities of 
1890 institutions. 
Sec. 7221. Hispanic-serving institutions. 
Sec. 7222. Hispanic-serving agricultural colleges and universities. 
Sec. 7223. International agricultural research, extension, and education. 
Sec. 7224. Competitive grants for international agricultural science and edu-
cation programs. 
Sec. 7225. Limitation on indirect costs for agricultural research, education, and 
extension programs. 
Sec. 7226. Research equipment grants. 
Sec. 7227. University research. 
Sec. 7228. Extension service. 
Sec. 7229. Supplemental and alternative crops. 
Sec. 7230. Aquaculture research facilities. 
Sec. 7231. Rangeland research. 
Sec. 7232. Special authorization for biosecurity planning and response. 
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Sec. 7233. Resident instruction and distance education grants program for insu-
lar area institutions of higher education. 
Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990 
Sec. 7301. National genetics resources program. 
Sec. 7302. National agricultural weather information system. 
Sec. 7303. Partnerships. 
Sec. 7304. Aflatoxin research and extension. 
Sec. 7305. High-priority research and extension areas. 
Sec. 7306. High-priority research and extension initiatives. 
Sec. 7307. Nutrient management research and extension initiative. 
Sec. 7308. Agricultural telecommunications program. 
Sec. 7309. Assistive technology program for farmers with disabilities. 
Sec. 7310. Organic research. 
Sec. 7311. National rural information center clearinghouse. 
Sec. 7312. New era rural technology program. 
Subtitle D—Agricultural Research, Extension, and Education Reform Act of 
1998 
Sec. 7401. Partnerships for high-value agricultural product quality research. 
Sec. 7402. Precision agriculture. 
Sec. 7403. Biobased products. 
Sec. 7404. Thomas Jefferson initiative for crop diversification. 
Sec. 7405. Integrated research, education, and extension competitive grants pro-
gram. 
Sec. 7406. Fusarium graminearum grants. 
Sec. 7407. Bovine Johne’s disease control program. 
Sec. 7408. Grants for youth organizations. 
Sec. 7409. Agricultural biotechnology research and development for developing 
countries. 
Sec. 7410. Agricultural bioenergy and biobased products research initiative. 
Sec. 7411. Specialty crop research initiative. 
Sec. 7412. Office of pest management policy. 
Subtitle E—Other Laws 
Sec. 7501. Critical agricultural materials act. 
Sec. 7502. Equity in Educational Land-Grant Status Act of 1994. 
Sec. 7503. Agricultural experiment station Research Facilities Act. 
Sec. 7504. National Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985. 
Sec. 7505. Competitive, Special, and Facilities Research Grant Act (national re-
search initiative). 
Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle research). 
Sec. 7507. Renewable Resources Extension Act of 1978. 
Sec. 7508. National Aquaculture Act of 1980. 
Sec. 7509. Construction of a Chinese Garden at the National Arboretum. 
Sec. 7510. Public education regarding use of biotechnology in producing food for 
human consumption. 
Sec. 7511. Fresh cut produce safety grants. 
Sec. 7512. UDC/EFNEP Eligibility. 
Sec. 7513. Smith-Lever Act. 
Sec. 7514. Hatch Act of 1987. 
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Subtitle F—Additional Provisions 
Sec. 7601. Merit review of extension and educational grants. 
Sec. 7602. Review of plan of work requirements. 
Sec. 7603. Multistate and integration funding. 
Sec. 7604. Expanded food and nutrition education program. 
Sec. 7605. Grants to 1890 schools to expand extension capacity. 
Sec. 7606. Borlaug international agricultural science and technology fellowship 
program. 
Sec. 7607. Support for research regarding diseases of wheat, triticale, and barley 
caused by fusarium graminearum or by tilletia indica. 
Sec. 7608. Cost Recovery. 
Sec. 7609. Organic Food and Agricultural Systems Funding. 
TITLE VIII—FORESTRY 
Subtitle A—Cooperative Forestry Assistance Act of 1978 
Sec. 8001. National priorities for private forest conservation. 
Sec. 8002. Long-term, State-wide assessments and strategies for forest resources. 
Sec. 8003. Assistance to the Federated States of Micronesia, the Republic of the 
Marshall Islands, and the Republic of Palau. 
Sec. 8004. Changes to Forest Resource Coordinating Committee. 
Sec. 8005. Changes to State Forest Stewardship Coordinating Committees. 
Sec. 8006. Competition in programs under Cooperative Forestry Assistance Act of 
1978. 
Sec. 8007. Cooperative forest innovation partnership projects. 
Subtitle B—Amendments to Other Laws 
Sec. 8101. Healthy forest reserve program. 
Sec. 8102. Emergency forest restoration program. 
Sec. 8103. Office of International Forestry. 
Sec. 8104. Rural revitalization technologies. 
Subtitle C—Miscellaneous Provisions 
Sec. 8201. Hispanic-serving institution agricultural land national resources lead-
ership program. 
TITLE IX—ENERGY 
Sec. 9001. Table of contents. 
Sec. 9002. Federal procurement of biobased products. 
Sec. 9003. Loan guarantees for biorefineries and biofuel production plants. 
Sec. 9004. Energy audit and renewable energy development program. 
Sec. 9005. Renewable energy systems and energy efficiency improvements. 
Sec. 9006. Biomass Research and Development Act of 2000. 
Sec. 9007. Adjustments to the bioenergy program. 
Sec. 9008. Research, extension, and educational programs on biobased energy 
technologies and products. 
Sec. 9009. Energy Council of the Department of Agriculture. 
Sec. 9010. Farm energy production pilot program. 
Sec. 9011. Rural energy self-sufficiency initiative. 
Sec. 9012. Agricultural biofuels from biomass internship pilot program. 
Sec. 9013. Feedstock flexibility program for bioenergy producers. 
Sec. 9014. Dedicated ethanol pipeline feasibility studies. 
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Sec. 9015. Biomass inventory report. 
Sec. 9016. Future farmsteads program. 
Sec. 9017. Sense of Congress on renewable energy. 
TITLE X—HORTICULTURE AND ORGANIC AGRICULTURE 
Subtitle A—Honey and Bees 
Sec. 10001. Annual report on response to honey bee colony collapse disorder. 
Subtitle B—Horticulture Provisions 
Sec. 10101. Tree assistance program. 
Sec. 10102. Specialty crop block grants. 
Sec. 10103. Additional section 32 funds for purchase of fruits, vegetables, and 
nuts to support domestic nutrition assistance programs. 
Sec. 10104. Independent evaluation of Department of Agriculture commodity pur-
chase process. 
Sec. 10105. Quality requirements for clementines. 
Sec. 10106. Implementation of food safety programs under marketing orders. 
Sec. 10107. Inclusion of specialty crops in census of agriculture. 
Sec. 10108. Maturity requirements for Hass avocados. 
Sec. 10109. Mushroom promotion, research, and consumer information. 
Sec. 10110. Fresh produce education initiative. 
Subtitle C—Pest and Disease Management 
Sec. 10201. Pest and disease program. 
Sec. 10202. Multi-species fruit fly research and sterile fly production. 
Subtitle D—Organic Agriculture 
Sec. 10301. National organic certification cost-share program. 
Sec. 10302. Organic production and market data. 
Sec. 10303. Organic conversion, technical, and educational assistance. 
Subtitle E—Miscellaneous Provisions 
Sec. 10401. Restoration of import and entry agricultural inspection functions to 
the Department of Agriculture. 
Sec. 10402. Grant program to improve movement of specialty crops. 
Sec. 10403. Authorization of appropriations for market news activities regarding 
specialty crops. 
Sec. 10404. Farmers’ market promotion program. 
Sec. 10405. National Clean Plant Network. 
TITLE XI—MISCELLANEOUS PROVISIONS 
Subtitle A—Federal Crop Insurance 
Sec. 11001. Availability of supplemental crop insurance based on area yield and 
loss plan of insurance or area revenue plan of insurance. 
Sec. 11002. Premiums and reinsurance requirements. 
Sec. 11003. Catastrophic risk protection administrative fee. 
Sec. 11004. Funding for reimbursements, contracting, risk management edu-
cation, and information technology. 
Sec. 11005. Reimbursement of research and development costs related to new crop 
insurance products. 
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Sec. 11006. Research and development contracts for organic production coverage 
improvements. 
Sec. 11007. Targeting risk management education for beginning farmers and 
ranchers and certain other farmers and ranchers. 
Sec. 11008. Crop insurance ineligibility related to crop production on noncrop-
land. 
Sec. 11009. Funds for data mining. 
Sec. 11010. Noninsured crop assistance program. 
Sec. 11011. Change in due date for Corporation payments for underwriting 
gains. 
Sec. 11012. Sesame insurance pilot program. 
Subtitle B—Livestock and Poultry 
Sec. 11101. Sense of Congress regarding pseudorabies eradication program. 
Sec. 11102. Arbitration of livestock and poultry contracts. 
Sec. 11103. State-inspected meat and poultry. 
Sec. 11104. Country of origin labeling. 
Sec. 11105. Sense of Congress regarding State inspected meat and poultry prod-
ucts. 
Sec. 11106. Sense of Congress regarding the voluntary control program for low 
pathogenic avian influenza. 
Sec. 11107. Sense of Congress regarding the cattle fever tick eradication program. 
Subtitle C—Socially Disadvantaged Producers and Limited Resource Producers 
Sec. 11201. Outreach and technical assistance for socially disadvantaged farmers 
and ranchers and limited resource farmers and ranchers. 
Sec. 11202. Improved program delivery by Department of Agriculture on Indian 
reservations. 
Sec. 11203. Transparency and accountability for socially disadvantaged farmers 
and ranchers. 
Sec. 11204. Beginning farmer and rancher development program. 
Sec. 11205. Provision of receipt for service or denial of service. 
Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and limited 
resource farmers and ranchers in Census of Agriculture and cer-
tain studies. 
Sec. 11207. Farmworker coordinator. 
Sec. 11208. Office of Outreach relocation. 
Sec. 11209. Minority farmer advisory committee. 
Sec. 11210. Coordinator for chronically underserved rural areas. 
Subtitle D—Other Miscellaneous Provisions 
Sec. 11301. Designation of separate cotton-producing States under Cotton Re-
search and Promotion Act. 
Sec. 11302. Cotton classification services. 
Sec. 11303. Availability of excess and surplus computers in rural areas. 
Sec. 11304. Permanent debarment from participation in Department of Agri-
culture programs for fraud. 
Sec. 11305. No discrimination against use of registered pesticide products or 
classes of pesticide products. 
Sec. 11306. Prohibition on closure or relocation of county offices for the Farm 
Service Agency, Rural Development Agency, and Natural Re-
sources Conservation Service. 
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Sec. 11308. Regulation of exports of plants, plant products, biological control or-
ganisms, and noxious weeds. 
Sec. 11309. Grants to reduce production of methamphetamines from anhydrous 
ammonia. 
Sec. 11310. USDA Graduate School. 
TITLE I—COMMODITY 
PROGRAMS 
Sec. 1001. Definitions. 
Subtitle A—Direct Payments and Counter-Cyclical Payments 
Sec. 1101. Adjustments to base acres. 
Sec. 1102. Availability of direct payments. 
Sec. 1103. Availability of counter-cyclical payments. 
Sec. 1104. Availability of revenue-based counter-cyclical payments. 
Sec. 1105. Producer agreement required as condition of provision of direct pay-
ments and counter-cyclical payments. 
Sec. 1106. Planting flexibility. 
Sec. 1107. Period of effectiveness. 
Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-
modities. 
Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 
Sec. 1203. Term of loans. 
Sec. 1204. Repayment of loans. 
Sec. 1205. Loan deficiency payments. 
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 
Sec. 1207. Special marketing loan provisions for upland cotton. 
Sec. 1208. Special competitive provisions for extra long staple cotton. 
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 
cotton. 
Sec. 1210. Deadline for repayment of marketing assistance loan for peanuts. 
Sec. 1211. Commodity quality incentive payments for healthy oilseeds. 
Subtitle C—Sugar 
Sec. 1301. Sugar program. 
Sec. 1302. United States membership in the international sugar organization. 
Sec. 1303. Flexible marketing allotments for sugar. 
Subtitle D—Dairy-Related Provisions 
Sec. 1401. Dairy product price support program. 
Sec. 1402. Dairy forward pricing program. 
Sec. 1403. Dairy export incentive program. 
Sec. 1404. Revision of Federal marketing order amendment procedures. 
Sec. 1405. Dairy indemnity program. 
Sec. 1406. Extension of milk income loss contract program. 
Sec. 1407. Dairy promotion and research program. 
Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat 
dry milk. 
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Sec. 1409. Federal Milk Marketing Order Review Commission. 
Subtitle E—Administration 
Sec. 1501. Administration generally. 
Sec. 1502. Suspension of permanent price support authority. 
Sec. 1503. Payment Limitations. 
Sec. 1504. Adjusted gross income limitation. 
Sec. 1505. Adjustments of loans. 
Sec. 1506. Personal liability of producers for deficiencies. 
Sec. 1507. Extension of existing administrative authority regarding loans. 
Sec. 1508. Assignment of payments. 
Sec. 1509. Tracking of benefits. 
Sec. 1510. Upland cotton storage payments. 
Sec. 1511. Government publication of cotton price forecasts. 
SEC. 1001. DEFINITIONS. 
In this title: 
(1) AGRICULTURAL ACT OF 1949.—The term ‘‘Ag-
ricultural Act of 1949’’ means the Agricultural Act of 
1949 (7 U.S.C. 1421 et seq.), as in effect prior to the 
suspensions under section 171 of the Federal Agri-
culture Improvement and Reform Act of 1996 (7 
U.S.C. 7301), section 1602(b) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
7992(b)), and section 1502(b) of this Act. 
(2) BASE ACRES.—The term ‘‘base acres’’, with 
respect to a covered commodity on a farm, means the 
number of acres established under sections 1101 and 
1302 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7911, 7952), as in effect on the day 
before the date of the enactment of this Act, subject to 
any adjustment under section 1101 of this Act. 
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(3) COMPARABLE
UNITED
STATES
QUALITY.— 
The term ‘‘Comparable United States Quality’’, with 
respect to upland cotton, means upland cotton classi-
fied as Middling (M) 13⁄32-inch cotton with a 
micronaire of 3.7 to 4.2, strength 30 grams per tex, 
and uniformity of 83. 
(4) COUNTER-CYCLICAL
PAYMENT.—The term 
‘‘counter-cyclical payment’’ means a payment made 
to producers on a farm under section 1103 or 1104. 
(5) COVERED COMMODITY.—The term ‘‘covered 
commodity’’ means wheat, corn, grain sorghum, bar-
ley, oats, upland cotton, rice, soybeans, peanuts, and 
other oilseeds. 
(6) DIRECT PAYMENT.—The term ‘‘direct pay-
ment’’ means a payment made to producers on a 
farm under section 1102. 
(7) EFFECTIVE
PRICE.—The term ‘‘effective 
price’’, with respect to a covered commodity for a 
crop year, means the price calculated by the Secretary 
under section 1103 to determine whether counter-cy-
clical payments are required to be made for that crop 
year under that section. 
(8) EXTRA
LONG
STAPLE
COTTON.—The term 
‘‘extra long staple cotton’’ means cotton that— 
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(A) is produced from pure strain varieties 
of the Barbadense species or any hybrid of the 
species, or other similar types of extra long sta-
ple cotton, designated by the Secretary, having 
characteristics needed for various end uses for 
which United States upland cotton is not suit-
able and grown in irrigated cotton-growing re-
gions of the United States designated by the Sec-
retary or other areas designated by the Secretary 
as suitable for the production of the varieties or 
types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(9) FAR
EAST
PRICE.—The term ‘‘Far East 
price’’ means the Friday through Thursday average 
price quotation for the three lowest-priced growths of 
upland cotton, as quoted for Middling (M) 13⁄32-inch 
cotton, delivered C/F Far East. 
(10) LOAN COMMODITY.—The term ‘‘loan com-
modity’’ means wheat, corn, grain sorghum, feed bar-
ley, malt barley, oats, upland cotton, extra long staple 
cotton, long grain rice, medium grain rice, short 
grain rice, soybeans, peanuts, other oilseeds, wool, mo-
hair, honey, dry peas, lentils, and small chickpeas. 
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(11) OTHER OILSEED.—The term ‘‘other oilseed’’ 
means a crop of sunflower seed, rapeseed, canola, saf-
flower, flaxseed, mustard seed, crambe, sesame seed, 
or, if designated by the Secretary, another oilseed. 
(12) PAYMENT
ACRES.—The term ‘‘payment 
acres’’, with respect to a covered commodity on a 
farm, means 85 percent of the base acres for the cov-
ered commodity, on which direct payments and 
counter-cyclical payments are made. 
(13) PAYMENT
YIELD.—The term ‘‘payment 
yield’’ means the yield established for direct payments 
and counter-cyclical payments under section 1102 or 
1302 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7912; 7952), as in effect on the day 
before the date of the enactment of this Act, for a farm 
for a covered commodity. 
(14) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ 
means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of producing 
a crop and is entitled to share in the crop avail-
able for marketing from the farm, or would have 
shared had the crop been produced. 
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(B) HYBRID SEED.—In determining wheth-
er a grower of hybrid seed is a producer, the Sec-
retary shall— 
(i) not take into consideration the ex-
istence of a hybrid seed contract; and 
(ii) ensure that program requirements 
do not adversely affect the ability of the 
grower to receive a payment under this 
title. 
(15) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Agriculture. 
(16) STATE.—The term ‘‘State’’ means each of 
the several States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, and 
any other territory or possession of the United States. 
(17) TARGET PRICE.—The term ‘‘target price’’ 
means the price per bushel (or other appropriate unit 
in the case of upland cotton, rice, peanuts, and other 
oilseeds) of a covered commodity used to determine 
the payment rate for counter-cyclical payments under 
section 1103. 
(18) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, when used in a geographical sense, means all 
of the States. 
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(19) UNITED
STATES
PREMIUM
FACTOR.—The 
term ‘‘United States Premium Factor’’ means the 
percentage by which the difference in the United 
States loan schedule premiums for Strict Middling 
(SM) 11⁄8-inch cotton and for M 13⁄32-inch exceeds the 
difference in the applicable premiums for comparable 
international qualities delivered C/F Far East. 
Subtitle A—Direct Payments and 
Counter-Cyclical Payments 
SEC. 1101. ADJUSTMENTS TO BASE ACRES. 
(a) TREATMENT OF CONSERVATION RESERVE CON-
TRACT ACREAGE.— 
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for covered commodities for a farm whenever either of 
the following circumstances occurs: 
(A) A conservation reserve contract entered 
into under section 1231 of the Food Security Act 
of 1985 (16 U.S.C. 3831) with respect to the 
farm expires or is voluntarily terminated. 
(B) Cropland is released from coverage 
under a conservation reserve contract by the Sec-
retary. 
(2) SPECIAL
PAYMENT
RULES.—For the crop 
year in which a base acres adjustment under para-
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graph (1) is first made, the owner of the farm shall 
elect to receive either direct payments and counter-cy-
clical payments with respect to the acreage added to 
the farm under this subsection or a prorated payment 
under the conservation reserve contract, but not both. 
(b) PREVENTION OF EXCESS BASE ACRES.— 
(1) REQUIRED REDUCTION.—If the sum of the 
base acres for a farm, together with the acreage de-
scribed in paragraph (2), exceeds the actual cropland 
acreage of the farm, the Secretary shall reduce the 
base acres for 1 or more covered commodities for the 
farm so that the sum of the base acres and acreage 
described in paragraph (2) does not exceed the actual 
cropland acreage of the farm. 
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any acreage on the farm enrolled in the 
conservation reserve program or wetlands reserve 
program under chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 
3830 et seq.). 
(B) Any other acreage on the farm enrolled 
in a conservation program for which payments 
are made in exchange for not producing an agri-
cultural commodity on the acreage. 
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(3) SELECTION OF ACRES.—The Secretary shall 
give the owner of the farm the opportunity to select 
the base acres against which the reduction required by 
paragraph (1) will be made. 
(4) EXCEPTION
FOR
DOUBLE-CROPPED
ACRE-
AGE.—In applying paragraph (1), the Secretary shall 
make an exception in the case of double cropping, as 
determined by the Secretary. 
(c) PERMANENT REDUCTION IN BASE ACRES.— 
(1) IN GENERAL.—The owner of a farm may re-
duce, at any time, the base acres for any covered com-
modity for the farm. 
(2) ADMINISTRATION.—The reduction shall be 
permanent and made in the manner prescribed by the 
Secretary. 
SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS. 
(a) PAYMENT REQUIRED.—For each of the 2008 
through 2012 crop years of each covered commodity, the 
Secretary shall make direct payments to producers on farms 
for which payment yields and base acres are established. 
(b) PAYMENT RATE.—The payment rates used to make 
direct payments with respect to covered commodities for a 
crop year are as follows: 
(1) Wheat, $0.52 per bushel. 
(2) Corn, $0.28 per bushel. 
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(3) Grain sorghum, $0.35 per bushel. 
(4) Barley, $0.24 per bushel. 
(5) Oats, $0.024 per bushel. 
(6) Upland cotton, $0.0667 per pound. 
(7) Rice, $2.35 per hundredweight. 
(8) Soybeans, $0.44 per bushel. 
(9) Other oilseeds, $0.0080 per pound. 
(10) Peanuts, $36.00 per ton. 
(c) PAYMENT AMOUNT.—The amount of the direct pay-
ment to be paid to the producers on a farm for a covered 
commodity for a crop year shall be equal to the product 
of the following: 
(1) The payment rate specified in subsection (b). 
(2) The payment acres of the covered commodity 
on the farm. 
(3) The payment yield for the covered commodity 
for the farm. 
(d) TIME FOR PAYMENT.— 
(1) IN GENERAL.—In the case of each of the 2008 
through 2012 crop years, the Secretary may not make 
direct payments before October 1 of the calendar year 
in which the crop of the covered commodity is har-
vested. 
(2) ADVANCE PAYMENTS.— 
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(A) OPTION.—At the option of the producers 
on a farm, up to 22 percent of the direct pay-
ment for a covered commodity for any of the 
2008 through 2011 crop years shall be paid to 
the producers in advance. 
(B) MONTH.— 
(i) SELECTION.—The producers shall 
select the month within which the advance 
payment for a crop year will be made. 
(ii) OPTIONS.—The month selected 
may be any month during the period begin-
ning on December 1 of the calendar year be-
fore the calendar year in which the crop of 
the covered commodity is harvested through 
the month within which the direct payment 
would otherwise be made. 
(iii) CHANGE.—The producers may 
change the selected month for a subsequent 
advance payment by providing advance no-
tice to the Secretary. 
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a 
producer on a farm that receives an advance direct 
payment for a crop year ceases to be a producer on 
that farm, or the extent to which the producer shares 
in the risk of producing a crop changes, before the 
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date the remainder of the direct payment is made, the 
producer shall be responsible for repaying the Sec-
retary the applicable amount of the advance payment, 
as determined by the Secretary. 
(e) PROHIBITION ON DE MINIMIS PAYMENTS.—If the 
total direct payment to be paid to a producer on a farm 
for all covered commodities is less than $25.00, the Sec-
retary shall not tender the direct payment to the producer. 
SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS. 
(a) PAYMENT REQUIRED.—For each of the 2008 
through 2012 crop years for each covered commodity, the 
Secretary shall make counter-cyclical payments to pro-
ducers on farms for which payment yields and base acres 
are established with respect to the covered commodity if the 
Secretary determines that the effective price for the covered 
commodity is less than the target price for the covered com-
modity. 
(b) EFFECTIVE PRICE.—For purposes of subsection 
(a), the effective price for a covered commodity is equal to 
the sum of the following: 
(1) The higher of the following: 
(A) The national average market price re-
ceived by producers during the 12-month mar-
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keting year for the covered commodity, as deter-
mined by the Secretary. 
(B) The national average loan rate for a 
marketing assistance loan for the covered com-
modity in effect for the applicable period under 
subtitle B, except that, for the purpose of calcu-
lating counter-cyclical payments under this sec-
tion for rice and barley, the Secretary shall es-
tablish national average all rice and all barley 
loan rates. 
(2) The payment rate in effect for the covered 
commodity under section 1102 for the purpose of 
making direct payments with respect to the covered 
commodity. 
(c) TARGET PRICE.—For purposes of subsection (a), 
the target prices for covered commodities shall be as follows: 
(1) Wheat, $4.15 per bushel. 
(2) Corn, $2.63 per bushel. 
(3) Grain sorghum, $2.57 per bushel. 
(4) Barley, $2.73 per bushel. 
(5) Oats, $1.50 per bushel. 
(6) Upland cotton, $0.70 per pound. 
(7) Rice, $10.50 per hundredweight. 
(8) Soybeans, $6.10 per bushel. 
(9) Other oilseeds, $0.1150 per pound. 
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(10) Peanuts, $495.00 per ton. 
(d) PAYMENT RATE.—The payment rate used to make 
counter-cyclical payments with respect to a covered com-
modity for a crop year shall be equal to the difference be-
tween— 
(1) the target price for the covered commodity; 
and 
(2) the effective price determined under sub-
section (b) for the covered commodity. 
(e) PAYMENT AMOUNT.—If counter-cyclical payments 
are required to be paid under this section for any of the 
2008 through 2012 crop years of a covered commodity, the 
amount of the counter-cyclical payment to be paid to the 
producers on a farm for that crop year shall be equal to 
the product of the following: 
(1) The payment rate specified in subsection (d). 
(2) The payment acres of the covered commodity 
on the farm. 
(3) The payment yield for the covered commodity 
for the farm. 
(f) TIME FOR PAYMENTS.— 
(1) GENERAL
RULE.—If the Secretary deter-
mines under subsection (a) that counter-cyclical pay-
ments are required to be made under this section for 
the crop of a covered commodity, the Secretary shall 
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make the counter-cyclical payments for the crop as 
soon as practicable after the end of the 12-month 
marketing year for the covered commodity. 
(2) AVAILABILITY
OF
PARTIAL
PAYMENTS.—If, 
before the end of the 12-month marketing year for a 
covered commodity, the Secretary estimates that 
counter-cyclical payments will be required for the 
crop of the covered commodity, the Secretary shall 
give producers on a farm the option to receive partial 
payments of the counter-cyclical payment projected to 
be made for that crop of the covered commodity. 
(3) TIME
FOR
PARTIAL
PAYMENTS
FOR
2008 
THROUGH 2010 CROP YEARS.—If the Secretary is re-
quired to make partial payments available under 
paragraph (2) for a covered commodity for any of the 
2008 through 2010 crop years— 
(A) the first partial payment shall be made 
after completion of the first 6 months of the mar-
keting year for the covered commodity; and 
(B) the final partial payment shall be made 
as soon as practicable after the end of the 12- 
month marketing year for the covered com-
modity. 
(4) AMOUNT OF PARTIAL PAYMENTS.— 
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(A) FIRST PARTIAL PAYMENT.—For each of 
the 2008 through 2010 crop years, the first par-
tial payment under paragraph (3) to the pro-
ducers on a farm may not exceed 40 percent of 
the projected counter-cyclical payment for the 
covered commodity for the crop year, as deter-
mined by the Secretary. 
(B) FINAL PAYMENT.—The final payment 
for each of the 2008 through 2010 crop years 
shall be equal to the difference between— 
(i) the actual counter-cyclical payment 
to be made to the producers for the covered 
commodity for that crop year; and 
(ii) the amount of the partial payment 
made to the producers under subparagraph 
(A). 
(5) REPAYMENT.—The producers on a farm that 
receive a partial payment under this subsection for a 
crop year shall repay to the Secretary the amount, if 
any, by which the total of the partial payments exceed 
the actual counter-cyclical payment to be made for 
the covered commodity for that crop year. 
(g) PROHIBITION ON DE MINIMIS PAYMENTS.—If the 
total counter-cyclical payment to be paid to a producer on 
a farm for all covered commodities is less than $25.00, the 
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Secretary shall not tender the counter-cyclical payment to 
the producer. 
SEC. 1104. AVAILABILITY OF REVENUE-BASED COUNTER-CY-
CLICAL PAYMENTS. 
(a) AVAILABILITY AND ELECTION OF ALTERNATIVE 
APPROACH.— 
(1) AVAILABILITY OF REVENUE-BASED COUNTER- 
CYCLICAL PAYMENTS.—As an alternative to receiving 
counter-cyclical payments under section 1103 with re-
spect to each covered commodity on a farm, the Sec-
retary shall give the producers on the farm an oppor-
tunity to elect to instead receive revenue-based 
counter-cyclical payments under this section for the 
2008 through 2012 crop years. 
(2) SINGLE ELECTION; TIME FOR ELECTION.—As 
soon as practicable after the date of enactment of this 
Act, the Secretary shall provide notice to producers 
regarding their opportunity to make the election de-
scribed in paragraph (1). The notice shall include the 
following: 
(A) Notice that the opportunity of the pro-
ducers on a farm to make the election is being 
provided only once. 
(B) Information regarding the manner in 
which the election must be made and the time 
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periods and manner in which notice of the elec-
tion must be submitted to the Secretary. 
(3) ELECTION DEADLINE.—Within the time pe-
riod and in the manner prescribed pursuant to para-
graph (2), the producers on a farm shall submit to the 
Secretary notice of the election made under para-
graph (1). 
(4) EFFECT OF FAILURE TO MAKE ELECTION.— 
If the producers on a farm fail to make the election 
under paragraph (1) or fail to timely notify the Sec-
retary of the election made, as required by paragraph 
(3), the producers shall be deemed to have made the 
election to receive counter-cyclical payments under 
section 1103 for all covered commodities on the farm. 
(b) PAYMENT REQUIRED.—In the case of producers on 
a farm who make the election under subsection (a) to receive 
revenue-based counter-cyclical payments, the Secretary 
shall make revenue-based counter-cyclical payments to such 
producers with respect to a covered commodity on the farm, 
if the Secretary determines that the national actual revenue 
per acre for the covered commodity is less than the national 
target revenue per acre for the covered commodity, as deter-
mined pursuant to this section. 
(c) NATIONAL ACTUAL REVENUE PER ACRE.—For 
each covered commodity for each of the 2008 through 2012 
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crop years, the Secretary shall establish a national actual 
revenue per acre by multiplying the national average yield 
for the given year by the higher of— 
(1) the national average market price received by 
producers of the covered commodity during the 12- 
month marketing year established by the Secretary; or 
(2) the loan rate for the covered commodity 
under section 1202, except that, for the purpose of cal-
culating national actual revenue per acre for rice and 
barley, the Secretary shall establish national average 
all rice and all barley loan rates. 
(d) NATIONAL TARGET REVENUE PER ACRE.—The na-
tional target revenue per acre shall be, on a per acre basis, 
as follows: 
(1) Wheat, $149.92. 
(2) Corn, $344.12. 
(3) Grain Sorghum, $131.28. 
(4) Barley, $153.30. 
(5) Oats, $92.10 
(6) Upland cotton, $496.93. 
(7) Rice, $548.06. 
(8) Soybeans, $231.87. 
(9) Other oilseeds, $129.18. 
(10) Peanuts, $683.83. 
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(e) NATIONAL PAYMENT YIELD.—The national pay-
ment yield shall be as follows: 
(1) Wheat, 36.1 bushels per acre. 
(2) Corn, 114.4 bushels per acre. 
(3) Grain Sorghum, 58.2 bushels per acre. 
(4) Barley, 48.6 bushels per acre. 
(5) Oats, 49.8 bushels per acre. 
(6) Upland cotton, 634 pounds per acre. 
(7) Rice, 51.28 hundredweight per acre. 
(8) Soybeans, 34.1 bushels per acre. 
(9) Other oilseeds, 1167.6 pounds per acre. 
(10) Peanuts, 1.496 tons per acre. 
(f) NATIONAL PAYMENT RATE.—The national pay-
ment rate used to make revenue-based counter-cyclical pay-
ments for a crop year shall be the result of— 
(1) the difference between the national target rev-
enue per acre for the covered commodity and the na-
tional actual revenue per acre for the covered com-
modity; divided by 
(2) the national payment yield for the covered 
commodity. 
(g) PAYMENT AMOUNT.—If revenue-based counter-cy-
clical payments are required to be paid for any of the 2008 
through 2012 crop years of a covered commodity, the 
amount of the counter-cyclical payment to be paid to the 
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producers on a farm for that crop year for the covered com-
modity shall be equal to the product of— 
(1) the national payment rate for the covered 
commodity; 
(2) the payment acres of the covered commodity 
on the farm; and 
(3) the payment yield for counter-cyclical pay-
ments for the covered commodity. 
(h) TIME FOR PAYMENTS.— 
(1) GENERAL
RULE.—If the Secretary deter-
mines that revenue-based counter-cyclical payments 
are required to be made under this section for the 
crop of a covered commodity, the Secretary shall 
make the counter-cyclical payments for the crop as 
soon as practicable after the end of the 12-month 
marketing year for the covered commodity. 
(2) AVAILABILITY
OF
PARTIAL
PAYMENTS.—If, 
before the end of the 12-month marketing year for a 
covered commodity, the Secretary estimates that rev-
enue-based counter-cyclical payments will be required 
for the crop of the covered commodity, the Secretary 
shall give producers on a farm the option to receive 
partial payments of the revenue-based counter-cyclical 
payments projected to be made for that crop of the 
covered commodity. 
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(3) TIME
FOR
PARTIAL
PAYMENTS
FOR
2008 
THROUGH 2010 CROP YEARS.—If the Secretary is re-
quired to make partial payments available under 
paragraph (2) for a covered commodity for any of the 
2008 through 2010 crop years— 
(A) the first partial payment shall be made 
after completion of the first 6 months of the mar-
keting year for the covered commodity; and 
(B) the final partial payment shall be made 
as soon as practicable after the end of the 12- 
month marketing year for the covered com-
modity. 
(4) AMOUNT OF PARTIAL PAYMENTS.— 
(A) FIRST PARTIAL PAYMENT.—For each of 
the 2008 through 2010 crop years, the first par-
tial payment under paragraph (3) to the pro-
ducers on a farm may not exceed 40 percent of 
the projected revenue-based counter-cyclical pay-
ment for the covered commodity for the crop 
year, as determined by the Secretary. 
(B) FINAL PAYMENT.—The final payment 
for each of the 2008 through 2010 crop years 
shall be equal to the difference between— 
(i) the actual revenue-based counter-cy-
clical payments to be made to the producers 
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for the covered commodity for that crop 
year; and 
(ii) the amount of the partial payment 
made to the producers on a farm under sub-
paragraph (A) for that crop year. 
(5) REPAYMENT.—Producers on a farm that re-
ceive a partial payment under this subsection for a 
crop year shall repay to the Secretary the amount, if 
any, by which the total of the partial payments exceed 
the actual revenue-based counter-cyclical payments to 
be made for the covered commodity for that crop year. 
(i) PROHIBITION ON DE MINIMIS PAYMENTS.—If the 
total revenue-based counter-cyclical payment to be paid to 
a producer on a farm for all covered commodities is less 
than $25.00, the Secretary shall not tender the revenue- 
based counter-cyclical payment to the producer. 
SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION OF PROVISION OF DIRECT PAYMENTS 
AND COUNTER-CYCLICAL PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a 
farm may receive direct payments or counter-cyclical 
payments with respect to the farm, the producers shall 
agree, during the crop year for which the payments 
are made and in exchange for the payments— 
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(A) to comply with applicable conservation 
requirements under subtitle B of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.); 
(C) to comply with the planting flexibility 
requirements of section 1106; 
(D) to use the land on the farm, in a quan-
tity equal to the attributable base acres for the 
farm for an agricultural or conserving use, and 
not for a nonagricultural commercial or indus-
trial use, as determined by the Secretary; and 
(E) to effectively control noxious weeds and 
otherwise maintain the land in accordance with 
sound agricultural practices, as determined by 
the Secretary. 
(2) COMPLIANCE.—The Secretary may issue such 
rules as the Secretary considers necessary to ensure 
producer compliance with the requirements of para-
graph (1). 
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
ments of this subsection if the modifications are con-
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sistent with the objectives of this subsection, as deter-
mined by the Secretary. 
(b) TRANSFER OR CHANGE OF INTEREST IN FARM.— 
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), a transfer of (or change in) the 
interest of the producers on a farm in base acres 
for which direct payments or counter-cyclical 
payments are made shall result in the termi-
nation of the payments with respect to the base 
acres, unless the transferee or owner of the acre-
age agrees to assume all obligations under sub-
section (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a di-
rect payment or counter-cyclical payment dies, be-
comes incompetent, or is otherwise unable to receive 
the payment, the Secretary shall make the payment, 
in accordance with rules issued by the Secretary. 
(c) ACREAGE REPORTS.—As a condition on the receipt 
of any benefits under this subtitle or subtitle B, the Sec-
retary shall require producers on a farm to submit to the 
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Secretary annual acreage reports with respect to all crop-
land on the farm. 
(d) TENANTS AND SHARECROPPERS.—In carrying out 
this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of direct payments and counter-cyclical 
payments among the producers on a farm on a fair and 
equitable basis. 
SEC. 1106. PLANTING FLEXIBILITY. 
(a) PERMITTED CROPS.—Subject to subsection (b), 
any commodity or crop may be planted on base acres on 
a farm. 
(b) LIMITATIONS
REGARDING
CERTAIN
COMMOD-
ITIES.— 
(1) GENERAL LIMITATION.—The planting of an 
agricultural commodity specified in paragraph (3) 
shall be prohibited on base acres unless the com-
modity, if planted, is destroyed before harvest. 
(2) 
TREATMENT
OF
TREES
AND
OTHER 
PERENNIALS.—The planting of an agricultural com-
modity specified in paragraph (3) that is produced 
on a tree or other perennial plant shall be prohibited 
on base acres. 
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(3) COVERED
AGRICULTURAL
COMMODITIES.— 
Paragraphs (1) and (2) apply to the following agri-
cultural commodities: 
(A) Fruits. 
(B) Vegetables (other than lentils, mung 
beans, and dry peas). 
(C) Wild rice. 
(c) EXCEPTIONS.—Paragraphs (1) and (2) of sub-
section (b) shall not limit the planting of an agricultural 
commodity specified in paragraph (3) of that subsection— 
(1) in any region in which there is a history of 
double-cropping of covered commodities with agricul-
tural commodities specified in subsection (b)(3), as 
determined by the Secretary, in which case the dou-
ble-cropping shall be permitted; 
(2) on a farm that the Secretary determines has 
a history of planting agricultural commodities speci-
fied in subsection (b)(3) on base acres, except that di-
rect payments and counter-cyclical payments shall be 
reduced by an acre for each acre planted to such an 
agricultural commodity; or 
(3) by the producers on a farm that the Sec-
retary determines has an established planting history 
of a specific agricultural commodity specified in sub-
section (b)(3), except that— 
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(A) the quantity planted may not exceed the 
average annual planting history of such agricul-
tural commodity by the producers on the farm in 
the 1991 through 1995 or 1998 through 2001 
crop years (excluding any crop year in which no 
plantings were made), as determined by the Sec-
retary; and 
(B) direct payments and counter-cyclical 
payments shall be reduced by an acre for each 
acre planted to such agricultural commodity. 
(d) PLANTING TRANSFERABILITY PILOT PROJECT.— 
(1) PILOT PROJECT AUTHORIZED.—In addition 
to the exceptions provided in subsection (c), the Sec-
retary shall carry out a pilot project in the State of 
Indiana under which paragraphs (1) and (2) of sub-
section (b) shall not limit the planting of tomatoes 
grown for processing on up to 10,000 base acres dur-
ing each of the 2008 through 2012 crop years. 
(2) CONTRACT
AND
MANAGEMENT
REQUIRE-
MENTS.— To be eligible for selection to participate in 
the pilot project, a producer must— 
(A) have a contract to grow tomatoes for 
processing; and 
(B) agree to produce the tomatoes as part of 
a program of crop rotation on the farm to 
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achieve agronomic and pest and disease manage-
ment benefits. 
(3) TEMPORARY REDUCTION IN BASE ACRES.— 
The base acres on a farm for a crop year shall be re-
duced by an acre for each acre planted to tomatoes 
under the pilot program. 
(4) DURATION OF REDUCTIONS.—The reduction 
in the base acres of a farm for a crop year under 
paragraph (3) shall expire at the end of the crop year, 
unless the producers on the farm elect to continue to 
participate in the pilot project for the subsequent crop 
year. 
(5) RECALCULATION
OF
BASE
ACRES.—If the 
Secretary recalculates base acres for a farm while the 
farm is included in the pilot project, the planting and 
production of tomatoes under the pilot project shall be 
considered to be the same as the planting, prevented 
planting, or production of a covered commodity. 
Nothing in this paragraph provides authority for the 
Secretary to recalculate base acres for a farm. 
SEC. 1107. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 2008 
crop year of each covered commodity through the 2012 crop 
year. 
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Subtitle B—Marketing Assistance 
Loans and Loan Deficiency Pay-
ments 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) NONRECOURSE LOANS AVAILABLE.— 
(1) AVAILABILITY.—For each of the 2008 through 
2012 crops of each loan commodity, the Secretary 
shall make available to producers on a farm non-
recourse marketing assistance loans for loan commod-
ities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing as-
sistance loans shall be made under terms and condi-
tions that are prescribed by the Secretary and at the 
loan rate established under section 1202 for the loan 
commodity. 
(b) ELIGIBLE PRODUCTION.—The producers on a farm 
shall be eligible for a marketing assistance loan under sub-
section (a) for any quantity of a loan commodity produced 
on the farm. 
(c) TREATMENT OF CERTAIN COMMINGLED COMMOD-
ITIES.—In carrying out this subtitle, the Secretary shall 
make loans to producers on a farm that would be eligible 
to obtain a marketing assistance loan, but for the fact the 
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loan commodity owned by the producers on the farm com-
mingled with loan commodities of other producers in facili-
ties unlicensed for the storage of agricultural commodities 
by the Secretary or a State licensing authority, if the pro-
ducers obtaining the loan agree to immediately redeem the 
loan collateral in accordance with section 166 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7286). 
(d) COMPLIANCE WITH CONSERVATION
AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (a), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland 
protection requirements under subtitle C of title XII of the 
Act (16 U.S.C. 3821 et seq.) during the term of the loan. 
(e) PEANUT-RELATED LOAN PROVISIONS.— 
(1) OPTIONS FOR OBTAINING LOANS.—A mar-
keting assistance loan for peanuts under this section 
and loan deficiency payments for peanuts under sec-
tion 1205 may be obtained at option of the producers 
on a farm through— 
(A) a designated marketing association or 
marketing cooperative of producers that is ap-
proved by the Secretary; or 
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(B) the Farm Service Agency. 
(2) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the Secretary’s approval of an individual or 
entity to provide storage for peanuts for which a mar-
keting assistance loan is made under this section, the 
individual or entity shall agree— 
(A) to provide such storage on a non-
discriminatory basis; and 
(B) to comply with such additional require-
ments as the Secretary considers appropriate to 
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section. 
(3) MARKETING.—A marketing association or co-
operative may market peanuts for which a loan is 
made under this section in any manner that conforms 
to consumer needs, including the separation of pea-
nuts by type and quality. 
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) LOAN RATES.—The loan rate for a marketing as-
sistance loan under section 1201 for a loan commodity shall 
be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
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(3) In the case of grain sorghum, $1.95 per bush-
el. 
(4) In the case of malt barley, $2.50 per bushel. 
(5) In the case of feed barley, $1.90 per bushel. 
(6) In the case of oats, $1.46 per bushel. 
(7) In the case of the base quality of upland cot-
ton, $0.52 per pound. 
(8) In the case of extra long staple cotton, 
$0.7977 per pound. 
(9) In the case of long grain rice, $6.50 per hun-
dredweight. 
(10) In the case of medium grain rice and short 
grain rice, $6.50 per hundredweight. 
(11) In the case of soybeans, $5.00 per bushel. 
(12) In the case of other oilseeds, $0.1070 per 
pound for each of the following kinds of oilseeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
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(I) Other oilseeds designated by the Sec-
retary. 
(13) In the case of dry peas, $5.40 per hundred-
weight. 
(14) In the case of lentils, $11.28 per hundred-
weight. 
(15) In the case of small chickpeas, $8.54 per 
hundredweight. 
(16) In the case of peanuts, $355.00 per ton. 
(17) In the case of graded wool, $1.10 per pound. 
(18) In the case of nongraded wool, $0.40 per 
pound. 
(19) In the case of honey, $0.60 per pound. 
(20) In the case of mohair, $4.20 per pound. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate in 
each county for each kind of other oilseeds described in sub-
section (a)(12). 
(c) SPECIAL RULES
FOR CORN
AND GRAIN SOR-
GHUM.— 
(1) SINGLE
COUNTY
AND
NATIONAL
AVERAGE 
LOAN RATE.—The Secretary shall— 
(A) establish a single county loan rate for 
corn and grain sorghum in each county; 
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(B) establish a single national average loan 
rate for corn and grain sorghum; and 
(C) determine each county loan rate and the 
national average loan rate for corn and grain 
sorghum and any and all other program loan 
rates applicable to corn and grain sorghum from 
a data set that includes prices for both commod-
ities. 
(2) ADMINISTRATION.—With respect to corn and 
grain sorghum, the Secretary— 
(A) shall administer the applicable loan, 
marketing loan, counter-cyclical payment, and 
related programs from a single loan rate for corn 
and grain sorghum that is identical in each in-
dividual county; 
(B) shall provide that any adjustment in 
the loan rate for location shall be determined 
and applied on the basis of the combined data 
set such that any transportation adjustment 
shall be the same for corn and grain sorghum in 
each individual county; and 
(C) may provide for adjustments for grade, 
type, and quality as appropriate for the corn or 
grain sorghum involved in each specific trans-
action. 
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SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for any 
loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, short grain 
rice, extra long staple cotton, and confectionery and each 
other kind of sunflower seed (other than oil sunflower seed)) 
at the lesser of the following: 
(1) The loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)). 
(2) A rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
the commodity by the Federal Government; 
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