212 
revocable trust shall be considered to be the 
same person as the grantor of the trust. 
‘‘(4) CASH RENT TENANTS.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘cash rent tenant’ means a person or legal 
entity that rents land— 
‘‘(i) for cash; or 
‘‘(ii) for a crop share guaranteed as to 
the amount of the commodity to be paid in 
rent. 
‘‘(B) RESTRICTION.—A cash rent tenant 
who makes a significant contribution of active 
personal management, but not of personal 
labor, with respect to a farming operation shall 
be eligible to receive a payment described in 
subsection (b) or (c) only if the tenant makes 
a significant contribution of equipment to the 
farming operation. 
‘‘(5) FEDERAL AGENCIES.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (d), a Federal agency shall not be eligi-
ble to receive any payment, benefit, or loan 
under title I of the Food, Conservation, and 
Energy Act of 2008 or title XII of this Act. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00212
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
213 
‘‘(B) LAND
RENTAL.—A lessee of land 
owned by a Federal agency may receive a pay-
ment described in subsection (b), (c), or (d) if 
the lessee otherwise meets all applicable cri-
teria. 
‘‘(6) STATE AND LOCAL GOVERNMENTS.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (d), except as provided in subsection 
(g), a State or local government, or political 
subdivision or agency of the government, shall 
not be eligible to receive any payment, benefit, 
or loan under title I of the Food, Conservation, 
and Energy Act of 2008 or title XII of this Act. 
‘‘(B) TENANTS.—A lessee of land owned 
by a State or local government, or political sub-
division or agency of the government, may re-
ceive payments described in subsections (b), (c), 
and (d) if the lessee otherwise meets all applica-
ble criteria. 
‘‘(7) CHANGES IN FARMING OPERATIONS.— 
‘‘(A) IN GENERAL.—In the administration 
of this section through section 1001F, the Sec-
retary may not approve any change in a farm-
ing operation that otherwise will increase the 
number of persons to which the limitations 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00213
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
214 
under this section are applied unless the Sec-
retary determines that the change is bona fide 
and substantive. 
‘‘(B) FAMILY MEMBERS.—The addition of 
a family member to a farming operation under 
the criteria set out in section 1001A shall be 
considered a bona fide and substantive change 
in the farming operation. 
‘‘(8) DEATH OF OWNER.— 
‘‘(A) IN GENERAL.—If any ownership in-
terest in land or a commodity is transferred as 
the result of the death of a program partici-
pant, the new owner of the land or commodity 
may, if the person is otherwise eligible to par-
ticipate in the applicable program, succeed to 
the contract of the prior owner and receive pay-
ments subject to this section without regard to 
the amount of payments received by the new 
owner. 
‘‘(B) LIMITATIONS
ON
PRIOR
OWNER.— 
Payments made under this paragraph shall not 
exceed the amount to which the previous owner 
was entitled to receive under the terms of the 
contract at the time of the death of the prior 
owner. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00214
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
215 
‘‘(g) PUBLIC SCHOOLS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(f)(6)(A), a State or local government, or political 
subdivision or agency of the government, shall be eli-
gible, subject to the limitation in paragraph (2), to 
receive a payment described in subsection (b) or (c) 
for land owned by the State or local government, or 
political subdivision or agency of the government, 
that is used to maintain a public school. 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—For each State, the 
total amount of payments described in sub-
sections (b) and (c) that are received collectively 
by the State and local government and all polit-
ical subdivisions or agencies of those govern-
ments shall not exceed $500,000. 
‘‘(B) EXCEPTION.—The limitation in sub-
paragraph (A) shall not apply to States with a 
population of less than 1,500,000.’’. 
(c) REPEAL OF 3-ENTITY RULE.—Section 1001A of 
the Food Security Act of 1985 (7 U.S.C. 1308–1) is 
amended— 
(1) in the section heading, by striking ‘‘PRE-
VENTION OF CREATION OF ENTITIES TO QUAL-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00215
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
216 
IFY AS SEPARATE PERSONS’’ and inserting ‘‘NO-
TIFICATION OF INTERESTS’’; and 
(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) NOTIFICATION
OF INTERESTS.—To facilitate 
administration of section 1001 and this section, each per-
son or legal entity receiving payments described in sub-
sections (b) and (c) of section 1001 as a separate person 
or legal entity shall separately provide to the Secretary, 
at such times and in such manner as prescribed by the 
Secretary— 
‘‘(1) the name and social security number of 
each person, or the name and taxpayer identification 
number of each legal entity, that holds or acquires 
an ownership interest in the separate person or legal 
entity; and 
‘‘(2) the name and taxpayer identification num-
ber of each legal entity in which the person or legal 
entity holds an ownership interest.’’. 
(d) 
AMENDMENT
FOR
CONSISTENCY.—Section 
1001A of the Food Security Act of 1985 (7 U.S.C. 1308– 
1) is amended by striking subsection (b) and inserting the 
following: 
‘‘(b) ACTIVELY ENGAGED.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00216
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
217 
‘‘(1) IN GENERAL.—To be eligible to receive a 
payment described in subsection (b) or (c) of section 
1001, a person or legal entity shall be actively en-
gaged in farming with respect to a farming oper-
ation as provided in this subsection or subsection 
(c). 
‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as 
provided in subsections (c) and (d)— 
‘‘(A) a person (including a person partici-
pating in a farming operation as a partner in 
a general partnership, a participant in a joint 
venture, a grantor of a revocable trust, or a 
participant in a similar entity, as determined by 
the Secretary) shall be considered to be actively 
engaged in farming with respect to a farming 
operation if— 
‘‘(i) the person makes a significant 
contribution (based on the total value of 
the farming operation) to the farming op-
eration of— 
‘‘(I) capital, equipment, or land; 
and 
‘‘(II) personal labor or active per-
sonal management; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00217
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
218 
‘‘(ii) the person’s share of the profits 
or losses from the farming operation is 
commensurate with the contributions of 
the person to the farming operation; and 
‘‘(iii) the contributions of the person 
are at risk; 
‘‘(B) a legal entity that is a corporation, 
joint stock company, association, limited part-
nership, charitable organization, or other simi-
lar entity determined by the Secretary (includ-
ing any such legal entity participating in the 
farming operation as a partner in a general 
partnership, a participant in a joint venture, a 
grantor of a revocable trust, or as a participant 
in a similar legal entity as determined by the 
Secretary) shall be considered as actively en-
gaged in farming with respect to a farming op-
eration if— 
‘‘(i) the legal entity separately makes 
a significant contribution (based on the 
total value of the farming operation) of 
capital, equipment, or land; 
‘‘(ii) the stockholders or members col-
lectively make a significant contribution of 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00218
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
222 
‘‘(B) PROHIBITION.—No other rules with 
respect to custom farming shall apply. 
‘‘(6) SPOUSE.—If 1 spouse (or estate of a de-
ceased spouse) is determined to be actively engaged, 
the other spouse shall be determined to have met the 
requirements of subsection (b)(2)(A)(i)(II). 
‘‘(d) CLASSES NOT ACTIVELY ENGAGED.— 
‘‘(1) CASH RENT LANDLORD.—A landlord con-
tributing land to a farming operation shall not be 
considered to be actively engaged in farming with re-
spect to the farming operation if the landlord re-
ceives cash rent, or a crop share guaranteed as to 
the amount of the commodity to be paid in rent, for 
the use of the land. 
‘‘(2) OTHER PERSONS AND LEGAL ENTITIES.— 
Any other person or legal entity that the Secretary 
determines does not meet the standards described in 
subsections (b)(2) and (c) shall not be considered to 
be actively engaged in farming with respect to a 
farming operation.’’. 
(e) DENIAL
OF
PROGRAM
BENEFITS.—Section 
1001B of the Food Security Act of 1985 (7 U.S.C. 1308– 
2) is amended to read as follows: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00222
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
223 
‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS. 
‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A 
person or legal entity shall be ineligible to receive pay-
ments specified in subsections (b) and (c) of section 1001 
for the crop year, and the succeeding crop year, in which 
the Secretary determines that the person or legal entity— 
‘‘(1) failed to comply with section 1001A(b) and 
adopted or participated in adopting a scheme or de-
vice to evade the application of section 1001, 1001A, 
or 1001C; or 
‘‘(2) intentionally concealed the interest of the 
person or legal entity in any farm or legal entity en-
gaged in farming. 
‘‘(b) EXTENDED INELIGIBILITY.—If the Secretary 
determines that a person or legal entity, for the benefit 
of the person or legal entity or the benefit of any other 
person or legal entity, has knowingly engaged in, or aided 
in the creation of a fraudulent document, failed to disclose 
material information relevant to the administration of sec-
tions 1001 through 1001F, or committed other equally se-
rious actions (as identified in regulations issued by the 
Secretary), the Secretary may for a period not to exceed 
5 crop years deny the issuance of payments to the person 
or legal entity. 
‘‘(c) PRO RATA DENIAL.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00223
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
224 
‘‘(1) IN GENERAL.—Payments otherwise owed 
to a person or legal entity described in subsections 
(a) or (b) shall be denied in a pro rata manner 
based on the ownership interest of the person or 
legal entity in a farm. 
‘‘(2) CASH
RENT
TENANT.—Payments other-
wise payable to a person or legal entity shall be de-
nied in a pro rata manner if the person or legal enti-
ty is a cash rent tenant on a farm owned or under 
the control of a person or legal entity with respect 
to which a determination has been made under sub-
section (a) or (b). 
‘‘(d) JOINT AND SEVERAL LIABILITY.—Any legal en-
tity (including partnerships and joint ventures) and any 
member of any legal entity determined to have knowingly 
participated in a scheme or device to evade, or that has 
the purpose of evading, sections 1001, 1001A, or 1001C 
shall be jointly and severally liable for any amounts that 
are payable to the Secretary as the result of the scheme 
or device (including amounts necessary to recover those 
amounts). 
‘‘(e) RELEASE.—The Secretary may partially or fully 
release from liability any person or legal entity who co-
operates with the Secretary in enforcing sections 1001, 
1001A, and 1001C, and this section.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00224
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
225 
(f) CONFORMING AMENDMENT TO APPLY DIRECT 
ATTRIBUTION TO NAP.— 
(1) IN GENERAL.—Section 196(i) of the Fed-
eral Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7333(i)) is amended— 
(A) by striking paragraphs (1) and (2) and 
inserting the following: 
‘‘(1) DEFINITIONS.—In this subsection, the 
terms ‘legal entity’ and ‘person’ have the meanings 
given those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a)). 
‘‘(2) PAYMENT LIMITATION.—The total amount 
of payments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or gen-
eral partnership) for any crop year may not exceed 
$100,000.’’; 
(B) by striking paragraph (4) and insert-
ing the following: 
‘‘(4) ADJUSTED GROSS INCOME LIMITATION.— 
A person or legal entity that has an average ad-
justed gross income in excess of the average ad-
justed gross income limitation applicable under sec-
tion 1001D(b)(1)(A) of the Food Security Act of 
1985 (7 U.S.C. 1308–3a(b)(1)(A)), or a successor 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00225
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
226 
provision, shall not be eligible to receive noninsured 
crop disaster assistance under this section.’’; and 
(C) in paragraph (5)— 
(i) by striking ‘‘necessary to ensure’’ 
and inserting ‘‘necessary— 
‘‘(A) to ensure’’; and 
(ii) by striking ‘‘this subsection.’’ and 
inserting the following: ‘‘this subsection; 
and 
‘‘(B) to ensure that payments under this 
section are attributed to a person or legal entity 
(excluding a joint venture or general partner-
ship) in accordance with the terms and condi-
tions of sections 1001 through 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308 et 
seq.), as determined by the Secretary.’’. 
(2) TRANSITION.—Section 196(i) of the Federal 
Agriculture Improvement and Reform Act of 1996 
(7 U.S.C. 7333(i)), as in effect on September 30, 
2007, shall apply with respect to the 2007 and 2008 
crops of any eligible crop. 
(g) CONFORMING AMENDMENTS.— 
(1) Section 1009(e) of the Food Security Act of 
1985 (7 U.S.C. 1308a(e)) is amended in the second 
sentence by striking ‘‘of $50,000’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00226
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
227 
(2) Section 609(b)(1) of the Emergency Live-
stock Feed Assistance Act of 1988 (7 U.S.C. 
1471g(b)(1)) is amended by inserting ‘‘(before the 
amendment made by section 1703(a) of the Food, 
Conservation, and Energy Act of 2008)’’ after 
‘‘1985’’. 
(3) Section 524(b)(3) of the Federal Crop In-
surance Act (7 U.S.C. 1524(b)(3)) is amended by 
inserting ‘‘(before the amendment made by section 
1703(a) of the Food, Conservation, and Energy Act 
of 2008)’’ after ‘‘1308(5)))’’. 
(4) Section 10204(c)(1) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 
8204(c)(1)) is amended by inserting ‘‘(before the 
amendment made by section 1703(a) of the Food, 
Conservation, and Energy Act of 2008)’’ after 
‘‘1308)’’. 
(5) Section 1271(c)(3)(A) of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (16 
U.S.C. 2106a(c)(3)(A)) is amended by inserting 
‘‘(before the amendment made by section 1703(a) of 
the Food, Conservation, and Energy Act of 2008)’’ 
after ‘‘1308)’’. 
(6) Section 291(2) of the Trade Act of 1974 
(19 U.S.C. 2401(2)) is amended by inserting ‘‘(be-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00227
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
228 
fore the amendment made by section 1703(a) of the 
Food, Conservation, and Energy Act of 2008)’’ be-
fore the period at the end. 
(h) TRANSITION.—Section 1001, 1001A, and 1001B 
of the Food Security Act of 1985 (7 U.S.C. 1308, 1308– 
1, 1308–2), as in effect on September 30, 2007, shall con-
tinue to apply with respect to the 2007 and 2008 crops 
of any covered commodity or peanuts. 
SEC. 1604. ADJUSTED GROSS INCOME LIMITATION. 
(a) IN GENERAL.—Section 1001D of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308–3a(e)) is amended to 
read as follows: 
‘‘SEC. 1001D. ADJUSTED GROSS INCOME LIMITATION. 
‘‘(a) DEFINITIONS.— 
‘‘(1) IN GENERAL.—In this section: 
‘‘(A) AVERAGE
ADJUSTED
GROSS
IN-
COME.—The term ‘average adjusted gross in-
come’, with respect to a person or legal entity, 
means the average of the adjusted gross income 
or comparable measure of the person or legal 
entity over the 3 taxable years preceding the 
most immediately preceding complete taxable 
year, as determined by the Secretary. 
‘‘(B) AVERAGE ADJUSTED GROSS FARM IN-
COME.—The term ‘average adjusted gross farm 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00228
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
229 
income’, with respect to a person or legal entity, 
means the average of the portion of adjusted 
gross income of the person or legal entity that 
is attributable to activities related to farming, 
ranching, or forestry for the 3 taxable years de-
scribed in subparagraph (A), as determined by 
the Secretary in accordance with subsection (c). 
‘‘(C) AVERAGE
ADJUSTED
GROSS
NON-
FARM
INCOME.—The term ‘average adjusted 
gross nonfarm income’, with respect to a person 
or legal entity, means the difference between— 
‘‘(i) the average adjusted gross income 
of the person or legal entity; and 
‘‘(ii) the average adjusted gross farm 
income of the person or legal entity. 
‘‘(2) SPECIAL RULES FOR CERTAIN PERSONS 
AND LEGAL ENTITIES.—In the case of a legal entity 
that is not required to file a Federal income tax re-
turn or a person or legal entity that did not have 
taxable income in 1 or more of the taxable years 
used to determine the average under subparagraph 
(A) or (B) of paragraph (1), the Secretary shall pro-
vide, by regulation, a method for determining the av-
erage adjusted gross income, the average adjusted 
gross farm income, and the average adjusted gross 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00229
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
230 
nonfarm income of the person or legal entity for 
purposes of this section. 
‘‘(3) ALLOCATION OF INCOME.—On the request 
of any person filing a joint tax return, the Secretary 
shall provide for the allocation of average adjusted 
gross income, average adjusted gross farm income, 
and average adjusted gross nonfarm income among 
the persons filing the return if— 
‘‘(A) the person provides a certified state-
ment by a certified public accountant or attor-
ney that specifies the method by which the av-
erage adjusted gross income, average adjusted 
gross farm income, and average adjusted gross 
nonfarm income would have been declared and 
reported had the persons filed 2 separate re-
turns; and 
‘‘(B) the Secretary determines that the 
method described in the statement is consistent 
with the information supporting the filed joint 
tax return. 
‘‘(b) LIMITATIONS.— 
‘‘(1) COMMODITY PROGRAMS.— 
‘‘(A) 
NONFARM
LIMITATION.—Notwith-
standing any other provision of law, a person or 
legal entity shall not be eligible to receive any 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00230
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
231 
benefit described in subparagraph (C) during a 
crop, fiscal, or program year, as appropriate, if 
the average adjusted gross nonfarm income of 
the person or legal entity exceeds $500,000. 
‘‘(B) FARM LIMITATION.—Notwithstanding 
any other provision of law, a person or legal en-
tity shall not be eligible to receive a direct pay-
ment under subtitle A or C of title I of the 
Food, Conservation, and Energy Act of 2008 
during a crop year, if the average adjusted 
gross farm income of the person or legal entity 
exceeds $750,000. 
‘‘(C) COVERED BENEFITS.—Subparagraph 
(A) applies with respect to the following: 
‘‘(i) A direct payment or counter-cycli-
cal payment under subtitle A or C of title 
I of the Food, Conservation, and Energy 
Act of 2008 or an average crop revenue 
election payment under subtitle A of title 
I of that Act. 
‘‘(ii) A marketing loan gain or loan 
deficiency payment under subtitle B or C 
of title I of the Food, Conservation, and 
Energy Act of 2008. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00231
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
232 
‘‘(iii) A payment or benefit under sec-
tion 196 of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 
U.S.C. 7333). 
‘‘(iv) A payment or benefit under sec-
tion 1506 of the Food, Conservation, and 
Energy Act of 2008. 
‘‘(v) A payment or benefit under title 
IX of the Trade Act of 1974 or subtitle B 
of the Federal Crop Insurance Act. 
‘‘(2) CONSERVATION PROGRAMS.— 
‘‘(A) LIMITS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of law, except as pro-
vided in clause (ii), a person or legal entity 
shall not be eligible to receive any benefit 
described in subparagraph (B) during a 
crop, fiscal, or program year, as appro-
priate, if the average adjusted gross non-
farm income of the person or legal entity 
exceeds $1,000,000, unless not less than 
66.66 percent of the average adjusted 
gross income of the person or legal entity 
is average adjusted gross farm income. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00232
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
233 
‘‘(ii) 
EXCEPTION.—The 
Secretary 
may waive the limitation established under 
clause (i) on a case-by-case basis if the 
Secretary determines that environmentally 
sensitive land of special significance would 
be protected. 
‘‘(B) COVERED BENEFITS.—Subparagraph 
(A) applies with respect to the following: 
‘‘(i) A payment or benefit under title 
XII of this Act. 
‘‘(ii) A payment or benefit under title 
II of the Farm Security and Rural Invest-
ment Act of 2002 (Public Law 107–171; 
116 Stat. 223) or title II of the Food, 
Conservation, and Energy Act of 2008. 
‘‘(iii) A payment or benefit under sec-
tion 524(b) of the Federal Crop Insurance 
Act (7 U.S.C. 1524(b)). 
‘‘(c) INCOME DETERMINATION.— 
‘‘(1) IN GENERAL.—In determining the average 
adjusted gross farm income of a person or legal enti-
ty, the Secretary shall include income or benefits de-
rived from or related to— 
‘‘(A) the production of crops, including 
specialty crops (as defined in section 3 of the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00233
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
234 
Specialty Crops Competitiveness Act of 2004 (7 
U.S.C. 1621 note; Public Law 108–465)) and 
unfinished raw forestry products; 
‘‘(B) the production of livestock (including 
cattle, elk, reindeer, bison, horses, deer, sheep, 
goats, 
swine, 
poultry, 
fish, 
and 
other 
aquacultural products used for food, honeybees, 
and other animals designated by the Secretary) 
and products produced by, or derived from, live-
stock; 
‘‘(C) the production of farm-based renew-
able energy (as defined in section 9001 of the 
Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8101)); 
‘‘(D) the sale, including the sale of ease-
ments and development rights, of farm, ranch, 
or forestry land, water or hunting rights, or en-
vironmental benefits; 
‘‘(E) the rental or lease of land or equip-
ment used for farming, ranching, or forestry 
operations, including water or hunting rights; 
‘‘(F) the processing (including packing), 
storing (including shedding), and transporting 
of farm, ranch, and forestry commodities, in-
cluding renewable energy; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00234
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
235 
‘‘(G) the feeding, rearing, or finishing of 
livestock; 
‘‘(H) the sale of land that has been used 
for agriculture; 
‘‘(I) payments or other benefits received 
under any program authorized under title I of 
the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7901 et seq.) or title I of the 
Food, Conservation, and Energy Act of 2008; 
‘‘(J) payments or other benefits received 
under any program authorized under title XII 
of this Act, title II of the Farm Security and 
Rural Investment Act of 2002 (Public Law 
107–171; 116 Stat. 223), or title II of the 
Food, Conservation, and Energy Act of 2008; 
‘‘(K) payments or other benefits received 
under section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 
U.S.C. 7333); 
‘‘(L) payments or other benefits received 
under title IX of the Trade Act of 1974 or sub-
title B of the Federal Crop Insurance Act; 
‘‘(M) risk management practices, including 
benefits received under a program authorized 
under the Federal Crop Insurance Act (7 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00235
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
236 
U.S.C. 1501 et seq.) (including a catastrophic 
risk protection plan offered under section 
508(b) of that Act (7 U.S.C. 1508(b))); and 
‘‘(N) any other activity related to farming, 
ranching, or forestry, as determined by the Sec-
retary. 
‘‘(2) INCOME DERIVED FROM FARMING, RANCH-
ING, OR FORESTRY.—In determining the average ad-
justed gross farm income of a person or legal entity, 
in addition to the inclusions described in paragraph 
(1), the Secretary shall include any income reported 
on the Schedule F or other schedule used by the per-
son or legal entity to report income from farming, 
ranching, or forestry operations to the Internal Rev-
enue Service, to the extent such income is not al-
ready included under paragraph (1). 
‘‘(3) SPECIAL RULE.—If not less than 66.66 
percent of the average adjusted gross income of a 
person or legal entity is derived from farming, 
ranching, or forestry operations described in para-
graphs (1) and (2), in determining the average ad-
justed gross farm income of the person or legal enti-
ty, the Secretary shall also include— 
‘‘(A) the sale of equipment to conduct 
farm, ranch, or forestry operations; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00236
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
237 
‘‘(B) the provision of production inputs 
and services to farmers, ranchers, foresters, and 
farm operations. 
‘‘(d) ENFORCEMENT.— 
‘‘(1) IN GENERAL.—To comply with subsection 
(b), at least once every 3 years a person or legal en-
tity shall provide to the Secretary— 
‘‘(A) a certification by a certified public ac-
countant or another third party that is accept-
able to the Secretary that the average adjusted 
gross income, average adjusted gross farm in-
come, and average adjusted gross nonfarm in-
come of the person or legal entity does not ex-
ceed the applicable limitation specified in that 
subsection; or 
‘‘(B) information and documentation re-
garding the average adjusted gross income, av-
erage adjusted gross farm income, and average 
adjusted gross nonfarm income of the person or 
legal entity through other procedures estab-
lished by the Secretary. 
‘‘(2) DENIAL OF PROGRAM BENEFITS.—If the 
Secretary determines that a person or legal entity 
has failed to comply with this section, the Secretary 
shall deny the issuance of applicable payments and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00237
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
238 
benefits specified in paragraphs (1)(C) and (2)(B) of 
subsection (b) to the person or legal entity, under 
similar terms and conditions as described in section 
1001B. 
‘‘(3) AUDIT.—The Secretary shall establish sta-
tistically valid procedures under which the Secretary 
shall conduct targeted audits of such persons or 
legal entities as the Secretary determines are most 
likely to exceed the limitations under subsection (b). 
‘‘(e) COMMENSURATE REDUCTION.—In the case of a 
payment or benefit described in paragraphs (1)(C) and 
(2)(B) of subsection (b) made in a crop, program, or fiscal 
year, as appropriate, to an entity, general partnership, or 
joint venture, the amount of the payment or benefit shall 
be reduced by an amount that is commensurate with the 
direct and indirect ownership interest in the entity, gen-
eral partnership, or joint venture of each person who has 
an average adjusted gross income, average adjusted gross 
farm income, or average adjusted gross nonfarm income 
in excess of the applicable limitation specified in sub-
section (b). 
‘‘(f) EFFECTIVE PERIOD.—This section shall apply 
only during the 2009 through 2012 crop, program, or fis-
cal years, as appropriate.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00238
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
239 
(b) TRANSITION.—Section 1001D of the Food Secu-
rity Act of 1985 (7 U.S.C. 1308–3a), as in effect on Sep-
tember 30, 2007, shall apply with respect to the 2007 and 
2008 crop, fiscal, or program year, as appropriate, for 
each program described in paragraphs (1)(C) and (2)(B) 
of subsection (b) of that section (as amended by sub-
section (a)). 
SEC. 1605. AVAILABILITY OF QUALITY INCENTIVE PAY-
MENTS FOR COVERED OILSEED PRODUCERS. 
(a) INCENTIVE PAYMENTS REQUIRED.—Subject to 
subsection (b) and the availability of appropriations under 
subsection (h), the Secretary shall use funds made avail-
able under subsection (h) to provide quality incentive pay-
ments for the production of oilseeds with specialized traits 
that enhance human health, as determined by the Sec-
retary. 
(b) COVERED OILSEEDS.—The Secretary shall make 
payments under this section only for the production of an 
oilseed variety that has, as determined by the Secretary— 
(1) been demonstrated to improve the health 
profile of the oilseed for use in human consumption 
by— 
(A) reducing or eliminating the need to 
partially hydrogenate the oil derived from the 
oilseed for use in human consumption; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00239
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
240 
(B) adopting new technology traits; and 
(2) 1 or more impediments to commercializa-
tion. 
(c) REQUEST FOR PROPOSALS.— 
(1) ISSUANCE.—If funds are made available to 
carry out this section for a crop year, the Secretary 
shall issue a request for proposals for payments 
under this section. 
(2) MULTIYEAR PROPOSALS.—A proponent may 
submit a multiyear proposal for payments under this 
section. 
(3) CONTENT OF PROPOSALS.—A proposal for 
payments under this section shall include a descrip-
tion of— 
(A) how use of the oilseed enhances human 
health; 
(B) the impediments to commercial use of 
the oilseed; 
(C) each oilseed variety described in sub-
section (b) and the value of the oilseed variety 
as a matter of public policy; 
(D) a range for the base price and pre-
miums per bushel or hundredweight to be paid 
to producers; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00240
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
241 
(E) a per bushel or hundredweight amount 
of incentive payments requested for each year 
under this section that does not exceed 1⁄3 of 
the total premium offered for any year; 
(F) the period of time, not to exceed 4 
years, during which incentive payments are to 
be provided to producers; and 
(G) the targeted total quantity of produc-
tion and estimated acres needed to produce the 
targeted quantity for each year under this sec-
tion. 
(d) CONTRACTS FOR PRODUCTION.— 
(1) IN GENERAL.—The Secretary shall approve 
successful proposals submitted under subsection (c) 
on a timely basis. 
(2) TIMING
OF
PAYMENTS.—The Secretary 
shall make payments to producers under this section 
after the Secretary receives documentation that the 
premium required under a contract has been paid to 
covered producers. 
(e) ADMINISTRATION.— 
(1) IN GENERAL.—If funding provided for a 
crop year is not fully allocated under the initial re-
quest for proposals under subsection (c), the Sec-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00241
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
242 
retary shall issue additional requests for proposals 
for subsequent crop years under this section. 
(2) PRORATED
PAYMENTS.—If funding pro-
vided for a crop year is less than the amount other-
wise approved by the Secretary or for which ap-
proval is sought, the Secretary shall prorate the pay-
ments or approvals in a manner determined by the 
Secretary so that the total payments do not exceed 
the funding level. 
(f) PROPRIETARY
INFORMATION.—The Secretary 
shall protect proprietary information provided to the Sec-
retary for the purpose of administering this section. 
(g) PROGRAM COMPLIANCE AND PENALTIES.— 
(1) GUARANTEE.—The proponent, if approved, 
shall be required to guarantee that the oilseed on 
which a payment is made by the Secretary under 
this section is used for human consumption as de-
scribed in the proposal, as approved by the Sec-
retary. 
(2) NONCOMPLIANCE.—If oilseeds on which a 
payment is made by the Secretary under this section 
are not actually used for the purpose the payment 
is made, the proponent shall be required to pay to 
the Secretary an amount equal to, as determined by 
the Secretary— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00242
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
243 
(A) in the case of an inadvertent failure, 
twice the amount of the payment made by the 
Secretary under this section to the producer of 
the oilseeds; and 
(B) in any other case, up to twice the full 
value of the oilseeds involved. 
(3) DOCUMENTATION.—The Secretary may re-
quire such assurances and documentation as may be 
needed to enforce the guarantee. 
(4) ADDITIONAL PENALTIES.— 
(A) IN
GENERAL.—In addition to pay-
ments required under paragraph (2), the Sec-
retary may impose penalties on additional per-
sons that use oilseeds the use of which is re-
stricted under this section for a purpose other 
than the intended use. 
(B) AMOUNT.—The amount of a penalty 
under this paragraph shall— 
(i) be in an amount determined appro-
priated by the Secretary; but 
(ii) not to exceed twice the full value 
of the oilseeds. 
(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00243
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
244 
essary to carry out this section for each of fiscal years 
2009 through 2012. 
SEC. 1606. PERSONAL LIABILITY OF PRODUCERS FOR DEFI-
CIENCIES. 
Section 164 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7284) is amended by 
striking ‘‘and title I of the Farm Security and Rural In-
vestment Act of 2002’’ each place it appears and inserting 
‘‘title I of the Farm Security and Rural Investment Act 
of 2002, and title I of the Food, Conservation, and Energy 
Act of 2008’’. 
SEC. 1607. EXTENSION OF EXISTING ADMINISTRATIVE AU-
THORITY REGARDING LOANS. 
Section 166 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7286) is amended— 
(1) by striking ‘‘and subtitle B and C of title 
I of the Farm Security and Rural Investment Act of 
2002’’ each place it appears and inserting ‘‘, title I 
of the Farm Security and Rural Investment Act of 
2002, and title I of the Food, Conservation, and En-
ergy Act of 2008’’; and 
(2) in subsection (c), by adding at the end the 
following: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00244
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
245 
‘‘(3) TERMINATION OF AUTHORITY.—The au-
thority to carry out paragraph (1) terminates effec-
tive ending with the 2009 crop year.’’. 
SEC. 1608. ASSIGNMENT OF PAYMENTS. 
(a) IN GENERAL.—The provisions of section 8(g) of 
the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(g)), relating to assignment of payments, shall 
apply to payments made under this title. 
(b) NOTICE.—The producer making the assignment, 
or the assignee, shall provide the Secretary with notice, 
in such manner as the Secretary may require, of any as-
signment made under this section. 
SEC. 1609. TRACKING OF BENEFITS. 
As soon as practicable after the date of enactment 
of this Act, the Secretary may track the benefits provided, 
directly or indirectly, to individuals and entities under ti-
tles I and II and the amendments made by those titles. 
SEC. 1610. GOVERNMENT PUBLICATION OF COTTON PRICE 
FORECASTS. 
Section 15 of the Agricultural Marketing Act (12 
U.S.C. 1141j) is amended— 
(1) by striking subsection (d); and 
(2) by redesignating subsections (e) through (g) 
as subsections (d) through (f), respectively. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00245
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
246 
SEC. 1611. PREVENTION OF DECEASED INDIVIDUALS RE-
CEIVING 
PAYMENTS 
UNDER 
FARM 
COM-
MODITY PROGRAMS. 
(a) REGULATIONS.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall pro-
mulgate regulations that— 
(1) describe the circumstances under which, in 
order to allow for the settlement of estates and for 
related purposes, payments may be issued in the 
name of a deceased individual; and 
(2) preclude the issuance of payments to, and 
on behalf of, deceased individuals that were not eligi-
ble for the payments. 
(b) COORDINATION.—At least twice each year, the 
Secretary shall reconcile the social security numbers of all 
individuals who receive payments under this title, whether 
directly or indirectly, with the Social Security Administra-
tion to determine if the individuals are alive. 
SEC. 1612. HARD WHITE WHEAT DEVELOPMENT PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE HARD WHITE WHEAT SEED.—The 
term ‘‘eligible hard white wheat seed’’ means hard 
white wheat seed that, as determined by the Sec-
retary, is— 
(A) certified; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00246
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
248 
least 240,000,000 bushels of hard white wheat by 
2012. 
(2) PAYMENTS.— 
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C) and subsection (c), if funds 
are made available for any of the 2009 through 
2012 crops of hard white wheat, the Secretary 
shall make available incentive payments to pro-
ducers of those crops. 
(B) ACREAGE LIMITATION.—The Secretary 
shall carry out subparagraph (A) subject to a 
regional limitation determined by the Secretary 
on the number of acres for which payments 
may be received that takes into account plant-
ing history and potential planting, but does not 
exceed a total of 2,900,000 acres or the equiva-
lent volume of production based on a yield of 50 
bushels per acre. 
(C) PAYMENT LIMITATIONS.—Payments to 
producers on a farm described in subparagraph 
(A) shall be— 
(i) in an amount that is not less than 
$0.20 per bushel; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00248
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
249 
(ii) in an amount that is not less than 
$2.00 per acre for planting eligible hard 
white wheat seed. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$35,000,000 for the period of fiscal years 2009 through 
2012. 
SEC. 1613. DURUM WHEAT QUALITY PROGRAM. 
(a) IN GENERAL.—Subject to the availability of 
funds under subsection (c), the Secretary shall provide 
compensation to producers of durum wheat in an amount 
not to exceed 50 percent of the actual cost of fungicides 
applied to a crop of durum wheat of the producers to con-
trol Fusarium head blight (wheat scab) on acres certified 
to have been planted to Durum wheat in a crop year. 
(b) INSUFFICIENT FUNDS.—If the total amount of 
funds appropriated for a fiscal year under subsection (c) 
are insufficient to fulfill all eligible requests for compensa-
tion under this section, the Secretary shall prorate the 
compensation payments in a manner determined by the 
Secretary to be equitable. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2009 through 2012. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00249
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
250 
SEC. 1614. STORAGE FACILITY LOANS. 
(a) IN GENERAL.—As soon as practicable after the 
date of enactment of this Act, the Secretary shall establish 
a storage facility loan program to provide funds for pro-
ducers of grains, oilseeds, pulse crops, hay, renewable bio-
mass, and other storable commodities (other than sugar), 
as determined by the Secretary, to construct or upgrade 
storage and handling facilities for the commodities. 
(b) ELIGIBLE PRODUCERS.—A storage facility loan 
under this section shall be made available to any producer 
described in subsection (a) that, as determined by the Sec-
retary— 
(1) has a satisfactory credit history; 
(2) has a need for increased storage capacity; 
and 
(3) demonstrates an ability to repay the loan. 
(c) TERM OF LOANS.—A storage facility loan under 
this section shall have a maximum term of 12 years. 
(d) 
LOAN
AMOUNT.—The 
maximum 
principal 
amount of a storage facility loan under this section shall 
be $500,000. 
(e) LOAN DISBURSEMENTS.—The Secretary shall 
provide for 1 partial disbursement of loan principal and 
1 final disbursement of loan principal, as determined to 
be appropriate and subject to acceptable documentation, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00250
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
251 
to facilitate the purchase and construction of eligible facili-
ties. 
(f) LOAN SECURITY.—Approval of a storage facility 
loan under this section shall— 
(1) require the borrower to provide loan secu-
rity to the Secretary, in the form of— 
(A) a lien on the real estate parcel on 
which the storage facility is located; or 
(B) such other security as is acceptable to 
the Secretary; 
(2) under such rules and regulations as the 
Secretary may prescribe, not require a severance 
agreement from the holder of any prior lien on the 
real estate parcel on which the storage facility is lo-
cated, if the borrower— 
(A) agrees to increase the down payment 
on the storage facility by an amount determined 
appropriate by the Secretary; or 
(B) provides other security acceptable to 
the Secretary; and 
(3) allow a borrower, upon the approval of the 
Secretary, to define a subparcel of real estate as se-
curity for the storage facility loan if the subparcel 
is— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00251
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
252 
(A) of adequate size and value to ade-
quately secure the loan; and 
(B) not subject to any other liens or mort-
gages that are superior to the lien interest of 
the Commodity Credit Corporation. 
SEC. 1615. STATE, COUNTY, AND AREA COMMITTEES. 
Section 8(b)(5)(B)(ii) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)(5)(B)(ii)) is 
amended— 
(1) by redesignating subclauses (I) and (II) as 
items (aa) and (bb), respectively, and indenting ap-
propriately; 
(2) in the matter preceding item (aa) (as redes-
ignated by paragraph (1)), by striking ‘‘A committee 
established’’ and inserting the following: 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), a com-
mittee established’’; and 
(3) by adding at the end the following: 
‘‘(II) COMBINATION OR CONSOLI-
DATION OF AREAS.—A committee es-
tablished by combining or consoli-
dating 2 or more county or area com-
mittees shall consist of not fewer than 
3 nor more than 11 members that— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00252
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
253 
‘‘(aa) are fairly representa-
tive of the agricultural producers 
within the area covered by the 
county, area, or local committee; 
and 
‘‘(bb) are elected by the ag-
ricultural producers that partici-
pate or cooperate in programs 
administered within the area 
under the jurisdiction of the 
county, area, or local committee. 
‘‘(III) REPRESENTATION OF SO-
CIALLY
DISADVANTAGED
FARMERS 
AND RANCHERS.—The Secretary shall 
develop procedures to maintain rep-
resentation of socially disadvantaged 
farmers and ranchers on combined or 
consolidated committees. 
‘‘(IV) ELIGIBILITY FOR MEMBER-
SHIP.—Notwithstanding 
any 
other 
producer eligibility requirements for 
service on county or area committees, 
if a county or area is consolidated or 
combined, a producer shall be eligible 
to serve only as a member of the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00253
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
254 
county or area committee that the 
producer elects to administer the farm 
records of the producer.’’. 
SEC. 1616. PROHIBITION ON CHARGING CERTAIN FEES. 
Public Law 108–470 (7 U.S.C. 7416a) is amended— 
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; and 
(2) by adding at the end the following: 
‘‘(c) PROHIBITION ON CHARGING CERTAIN FEES.— 
The Secretary may not charge any fees or related costs 
for the collection of commodity assessments pursuant to 
this Act.’’. 
SEC. 1617. SIGNATURE AUTHORITY. 
(a) IN GENERAL.—In carrying out this title and title 
II and amendments made by those titles, if the Secretary 
approves a document, the Secretary shall not subsequently 
determine the document is inadequate or invalid because 
of the lack of authority of any person signing the docu-
ment on behalf of the applicant or any other individual, 
entity, general partnership, or joint venture, or the docu-
ments relied upon were determined inadequate or invalid, 
unless the person signing the program document know-
ingly and willfully falsified the evidence of signature au-
thority or a signature. 
(b) AFFIRMATION.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00254
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
255 
(1) IN GENERAL.—Nothing in this section pro-
hibits the Secretary from asking a proper party to 
affirm any document that otherwise would be consid-
ered approved under subsection (a). 
(2) NO
RETROACTIVE
EFFECT.—A denial of 
benefits based on a lack of affirmation under para-
graph (1) shall not be retroactive with respect to 
third-party producers who were not the subject of 
the erroneous representation of authority, if the 
third-party producers— 
(A) relied on the prior approval by the Sec-
retary of the documents in good faith; and 
(B) substantively complied with all pro-
gram requirements 
SEC. 1618. MODERNIZATION OF FARM SERVICE AGENCY. 
Not later than 180 days after the date of enactment 
of this Act, the Secretary shall transmit to the Committee 
on Agriculture and the Committee on Appropriations of 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry and the Committee on 
Appropriations of the Senate a report prepared by a third 
party that describes— 
(1) the data processing and information tech-
nology challenges experienced in local offices of the 
Farm Service Agency; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00255
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
256 
(2) the impact of those challenges on service to 
producers, on efficiency of personnel, and on imple-
mentation of this Act; 
(3) the need for information technology system 
upgrades of the Farm Service Agency relative to 
other agencies of the Department of Agriculture; 
(4) the detailed plan needed to fulfill the needs 
of the Department that are identified in paragraph 
(3), including hardware, software, and infrastructure 
requirements; 
(5) the estimated cost and timeframe for long- 
term modernization and stabilization of Farm Serv-
ice Agency information technology systems; 
(6) the benefits associated with such moderniza-
tion and stabilization; and 
(7) an evaluation of the existence of appropriate 
oversight within the Department to ensure that 
funds needed for systems upgrades can be appro-
priately managed. 
SEC. 1619. INFORMATION GATHERING. 
(a) GEOSPATIAL SYSTEMS.—The Secretary shall en-
sure that all the geospatial data of the agencies of the 
Department of Agriculture are portable and standardized. 
(b) LIMITATION ON DISCLOSURES.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00256
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
257 
(1) DEFINITION
OF
AGRICULTURAL
OPER-
ATION.—In this subsection, the term ‘‘agricultural 
operation’’ includes the production and marketing of 
agricultural commodities and livestock. 
(2) PROHIBITION.—Except as provided in para-
graphs (3) and (4), the Secretary, any officer or em-
ployee of the Department of Agriculture, or any con-
tractor or cooperator of the Department, shall not 
disclose— 
(A) information provided by an agricul-
tural producer or owner of agricultural land 
concerning the agricultural operation, farming 
or conservation practices, or the land itself, in 
order to participate in programs of the Depart-
ment; or 
(B) geospatial information otherwise main-
tained by the Secretary about agricultural land 
or operations for which information described in 
subparagraph (A) is provided. 
(3) AUTHORIZED DISCLOSURES.— 
(A) LIMITED
RELEASE
OF
INFORMA-
TION.—If the Secretary determines that the in-
formation described in paragraph (2) will not 
be subsequently disclosed except in accordance 
with paragraph (4), the Secretary may release 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00257
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
258 
or disclose the information to a person or Fed-
eral, State, local, or tribal agency working in 
cooperation with the Secretary in any Depart-
ment program— 
(i) when providing technical or finan-
cial assistance with respect to the agricul-
tural operation, agricultural land, or farm-
ing or conservation practices; or 
(ii) when responding to a disease or 
pest threat to agricultural operations, if 
the Secretary determines that a threat to 
agricultural operations exists and the dis-
closure of information to a person or co-
operating government entity is necessary 
to assist the Secretary in responding to the 
disease or pest threat as authorized by law. 
(4) EXCEPTIONS.—Nothing in this subsection 
affects— 
(A) the disclosure of payment information 
(including payment information and the names 
and addresses of recipients of payments) under 
any Department program that is otherwise au-
thorized by law; 
(B) the disclosure of information described 
in paragraph (2) if the information has been 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00258
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
259 
transformed into a statistical or aggregate form 
without naming any— 
(i) individual owner, operator, or pro-
ducer; or 
(ii) specific data gathering site; or 
(C) the disclosure of information described 
in paragraph (2) pursuant to the consent of the 
agricultural producer or owner of agricultural 
land. 
(5) CONDITION
OF
OTHER
PROGRAMS.—The 
participation of the agricultural producer or owner 
of agricultural land in, or receipt of any benefit 
under, any program administered by the Secretary 
may not be conditioned on the consent of the agri-
cultural producer or owner of agricultural land 
under paragraph (4)(C). 
(6) WAIVER OF PRIVILEGE OR PROTECTION.— 
The disclosure of information under paragraph (2) 
shall not constitute a waiver of any applicable privi-
lege or protection under Federal law, including trade 
secret protection. 
SEC. 1620. LEASING OF OFFICE SPACE. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary shall submit to the Committee 
on Agriculture and the Committee on Appropriations of 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00259
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
260 
the House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry and the Committee on 
Appropriations of the Senate a report that describes— 
(1) the costs and time associated with com-
plying with leasing procedures of the General Serv-
ices Administration relative to the previous inde-
pendent leasing procedures of the Department of 
Agriculture; 
(2) the additional staffing needs associated with 
complying with those procedures; and 
(3) the value added to the leasing process and 
the ability of the Department to secure best-value 
leases by complying with the General Services Ad-
ministration leasing procedures. 
SEC. 1621. GEOGRAPHICALLY DISADVANTAGED FARMERS 
AND RANCHERS. 
(a) DEFINITIONS.—In this section: 
(1) AGRICULTURAL
COMMODITY.—The term 
‘‘agricultural commodity’’ has the meaning given the 
term in section 102 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5602). 
(2) GEOGRAPHICALLY DISADVANTAGED FARM-
ER
OR
RANCHER.—The term ‘‘geographically dis-
advantaged farmer or rancher’’ has the meaning 
given the term in section 10906(a) of the Farm Se-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00260
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
261 
curity and Rural Investment Act of 2002 (7 U.S.C. 
2204 note; Public Law 107–171). 
(b) AUTHORIZATION.—Subject to the availability of 
funds under subsection (d), the Secretary may provide 
geographically disadvantaged farmers or ranchers direct 
reimbursement payments for activities described in sub-
section (c). 
(c) TRANSPORTATION.— 
(1) IN GENERAL.—Subject to paragraphs (2) 
and (3), the Secretary may provide direct reimburse-
ment payments to a geographically disadvantaged 
farmer or rancher to transport an agricultural com-
modity, or inputs used to produce an agricultural 
commodity, during a fiscal year. 
(2) PROOF OF ELIGIBILITY.—To be eligible to 
receive assistance under paragraph (1), a geographi-
cally disadvantaged farmer or rancher shall dem-
onstrate to the Secretary that transportation of the 
agricultural commodity or inputs occurred over a 
distance of more than 30 miles, as determined by 
the Secretary. 
(3) AMOUNT.— 
(A) IN GENERAL.—Subject to paragraph 
(2), the amount of direct reimbursement pay-
ments made to a geographically disadvantaged 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00261
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
262 
farmer or rancher under this section for a fiscal 
year shall equal the product obtained by multi-
plying— 
(i) the amount of costs incurred by 
the geographically disadvantaged farmer or 
rancher for transportation of the agricul-
tural commodity or inputs during the fiscal 
year; and 
(ii)(I) the percentage of the allowance 
for that fiscal year under section 5941 of 
title 5, United States Code, for Federal 
employees stationed in Alaska and Hawaii; 
or 
(II) in the case of an insular area (as 
defined in section 1404 of the National 
Agricultural 
Research, 
Extension, 
and 
Teaching Policy Act of 1977 (7 U.S.C. 
3103)), a comparable percentage of the al-
lowance for the fiscal year, as determined 
by the Secretary. 
(B) LIMITATION.—The total amount of di-
rect reimbursement payments provided by the 
Secretary under this section shall not exceed 
$15,000,000 for a fiscal year. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00262
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
263 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 
2009 through 2012. 
SEC. 1622. IMPLEMENTATION. 
The Secretary shall make available to the Farm Serv-
ice Agency to carry out this title $50,000,000. 
SEC. 1623. REPEALS. 
(a) COMMISSION ON APPLICATION OF PAYMENT LIM-
ITATIONS.—Section 1605 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7993) is repealed. 
(b) RENEWED AVAILABILITY OF MARKET LOSS AS-
SISTANCE
AND CERTAIN EMERGENCY ASSISTANCE
TO 
PERSONS
THAT
FAILED
TO
RECEIVE
ASSISTANCE 
UNDER EARLIER AUTHORITIES.—Section 1617 of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8000) is repealed. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00263
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
264 
TITLE II—CONSERVATION 
Subtitle A—Definitions and Highly 
Erodible 
Land 
and 
Wetland 
Conservation 
SEC. 2001. DEFINITIONS RELATING TO CONSERVATION 
TITLE OF FOOD SECURITY ACT OF 1985. 
(a) BEGINNING FARMER
OR RANCHER.—Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 
3801(a)) is amended— 
(1) by redesignating paragraphs (2) through 
(6), (7) through (11), (12), (13) through (15), (16), 
(17), and (18) as paragraphs (3) through (7), (9) 
through (13), (15), (20) through (22), (24), (26), 
and (27), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) BEGINNING FARMER OR RANCHER.—The 
term ‘beginning farmer or rancher’ has the meaning 
given the term in section 343(a)(8) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1991(a)(8)).’’. 
(b) FARM.—Section 1201(a) of the Food Security 
Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting 
after paragraph (7), as redesignated by subsection (a)(1), 
the following new paragraph: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00264
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
265 
‘‘(8) FARM.—The term ‘farm’ means a farm 
that— 
‘‘(A) is under the general control of one 
operator; 
‘‘(B) has one or more owners; 
‘‘(C) consists of one or more tracts of land, 
whether or not contiguous; 
‘‘(D) is located within a county or region, 
as determined by the Secretary; and 
‘‘(E) may contain lands that are incidental 
to the production of perennial crops, including 
conserving uses, forestry, and livestock, as de-
termined by the Secretary.’’. 
(c) INDIAN TRIBE.—Section 1201(a) of the Food Se-
curity Act of 1985 (16 U.S.C. 3801(a)) is amended by 
inserting after paragraph (13), as redesignated by sub-
section (a)(1), the following new paragraph: 
‘‘(14) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the meaning given the term in section 4(e) of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b(e)).’’. 
(d) INTEGRATED PEST MANAGEMENT; LIVESTOCK; 
NONINDUSTRIAL PRIVATE FOREST LAND; PERSON AND 
LEGAL ENTITY.—Section 1201(a) of the Food Security 
Act of 1985 (16 U.S.C. 3801(a)) is amended by inserting 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00265
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
266 
after paragraph (15), as redesignated by subsection 
(a)(1), the following new paragraphs: 
‘‘(16) INTEGRATED PEST MANAGEMENT.—The 
term ‘integrated pest management’ means a sustain-
able approach to managing pests by combining bio-
logical, cultural, physical, and chemical tools in a 
way that minimizes economic, health, and environ-
mental risks. 
‘‘(17) LIVESTOCK.—The term ‘livestock’ means 
all animals raised on farms, as determined by the 
Secretary. 
‘‘(18) 
NONINDUSTRIAL
PRIVATE
FOREST 
LAND.—The term ‘nonindustrial private forest land’ 
means rural land, as determined by the Secretary, 
that— 
‘‘(A) has existing tree cover or is suitable 
for growing trees; and 
‘‘(B) is owned by any nonindustrial private 
individual, group, association, corporation, In-
dian tribe, or other private legal entity that has 
definitive decisionmaking authority over the 
land. 
‘‘(19) PERSON AND LEGAL ENTITY.—For pur-
poses of applying payment limitations under subtitle 
D, the terms ‘person’ and ‘legal entity’ have the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00266
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
267 
meanings given those terms in section 1001(a) of 
this Act (7 U.S.C. 1308(a)).’’. 
(e) SOCIALLY DISADVANTAGED FARMER OR RANCH-
ER.—Section 1201(a) of the Food Security Act of 1985 
(16 U.S.C. 3801(a)) is amended by inserting after para-
graph (22), as redesignated by subsection (a)(1), the fol-
lowing new paragraph: 
‘‘(23) SOCIALLY DISADVANTAGED FARMER OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term in sec-
tion 2501(e)(2) of the Food, Agriculture, Conserva-
tion, 
and 
Trade 
Act 
of 
1990 
(7 
U.S.C. 
2279(e)(2)).’’. 
(f) TECHNICAL ASSISTANCE.—Section 1201(a) of the 
Food Security Act of 1985 (16 U.S.C. 3801(a)) is amend-
ed by inserting after paragraph (24), as redesignated by 
subsection (a)(1), the following new paragraph: 
‘‘(25) TECHNICAL
ASSISTANCE.—The term 
‘technical assistance’ means technical expertise, in-
formation, and tools necessary for the conservation 
of natural resources on land active in agricultural, 
forestry, or related uses. The term includes the fol-
lowing: 
‘‘(A) Technical services provided directly to 
farmers, ranchers, and other eligible entities, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00267
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
268 
such as conservation planning, technical con-
sultation, and assistance with design and imple-
mentation of conservation practices. 
‘‘(B) Technical infrastructure, including 
activities, processes, tools, and agency functions 
needed to support delivery of technical services, 
such as technical standards, resource inven-
tories, training, data, technology, monitoring, 
and effects analyses.’’. 
SEC. 2002. REVIEW OF GOOD FAITH DETERMINATIONS RE-
LATED TO HIGHLY ERODIBLE LAND CON-
SERVATION. 
Section 1212 of the Food Security Act of 1985 (16 
U.S.C. 3812) is amended by striking subsection (f) and 
inserting the following new subsection: 
‘‘(f) GRADUATED PENALTIES.— 
‘‘(1) INELIGIBILITY.—No person shall become 
ineligible under section 1211 for program loans, pay-
ments, and benefits as a result of the failure of the 
person to actively apply a conservation plan, if the 
Secretary determines that the person has acted in 
good faith and without an intent to violate this sub-
title. 
‘‘(2) ELIGIBLE REVIEWERS.—A determination 
of the Secretary, or a designee of the Secretary, 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00268
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
269 
under paragraph (1) shall be reviewed by the appli-
cable— 
‘‘(A) State Executive Director, with the 
technical concurrence of the State Conserva-
tionist; or 
‘‘(B) district director, with the technical 
concurrence of the area conservationist. 
‘‘(3) PERIOD FOR IMPLEMENTATION.—A person 
who meets the requirements of paragraph (1) shall 
be allowed a reasonable period of time, as deter-
mined by the Secretary, but not to exceed 1 year, 
during which to implement the measures and prac-
tices necessary to be considered to be actively apply-
ing the conservation plan of the person. 
‘‘(4) PENALTIES.— 
‘‘(A) APPLICATION.—This paragraph ap-
plies if the Secretary determines that— 
‘‘(i) a person has failed to comply 
with section 1211 with respect to highly 
erodible cropland, and has acted in good 
faith and without an intent to violate sec-
tion 1211; or 
‘‘(ii) the violation— 
‘‘(I) is technical and minor in na-
ture; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00269
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
270 
‘‘(II) has a minimal effect on the 
erosion control purposes of the con-
servation plan applicable to the land 
on which the violation has occurred. 
‘‘(B) REDUCTION.—If this paragraph ap-
plies under subparagraph (A), the Secretary 
shall, in lieu of applying the ineligibility provi-
sions of section 1211, reduce program benefits 
described in section 1211 that the producer 
would otherwise be eligible to receive in a crop 
year by an amount commensurate with the seri-
ousness of the violation, as determined by the 
Secretary. 
‘‘(5) SUBSEQUENT CROP YEARS.—Any person 
whose benefits are reduced for any crop year under 
this subsection shall continue to be eligible for all of 
the benefits described in section 1211 for any subse-
quent crop year if, prior to the beginning of the sub-
sequent crop year, the Secretary determines that the 
person is actively applying a conservation plan ac-
cording to the schedule specified in the plan.’’. 
SEC. 2003. REVIEW OF GOOD FAITH DETERMINATIONS RE-
LATED TO WETLAND CONSERVATION. 
Section 1222(h) of the Food Security Act of 1985 
(16 U.S.C. 3822(h)) is amended— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00270
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
271 
(1) by redesignating paragraph (2) as para-
graph (3); 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) ELIGIBLE REVIEWERS.—A determination 
of the Secretary, or a designee of the Secretary, 
under paragraph (1) shall be reviewed by the appli-
cable— 
‘‘(A) State Executive Director, with the 
technical concurrence of the State Conserva-
tionist; or 
‘‘(B) district director, with the technical 
concurrence of the area conservationist.’’; and 
(3) in paragraph (3) (as redesignated by para-
graph (1)), by inserting ‘‘be’’ before ‘‘actively’’. 
Subtitle B—Conservation Reserve 
Program 
SEC. 2101. EXTENSION OF CONSERVATION RESERVE PRO-
GRAM. 
Section 1231(a) of the Food Security Act of 1985 
(16 U.S.C. 3831(a)) is amended— 
(1) by striking ‘‘2007 calendar year’’ and in-
serting ‘‘2012 fiscal year’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00271
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
272 
(2) by inserting before the period the following: 
‘‘and to address issues raised by State, regional, and 
national conservation initiatives’’; and 
SEC. 2102. LAND ELIGIBLE FOR ENROLLMENT IN CON-
SERVATION RESERVE. 
Section 1231(b) of the Food Security Act of 1985 
(16 U.S.C. 3831(b)) is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘Farm Security and Rural 
Investment Act of 2002’’ and inserting ‘‘Food, 
Conservation, and Energy Act of 2008’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(2) in paragraph (4)— 
(A) in subparagraph (C), by striking ‘‘; or’’ 
and inserting a semicolon; 
(B) in subparagraph (D), by striking 
‘‘and’’ at the end and inserting ‘‘or’’; and 
(C) in subparagraph (E), by inserting ‘‘or’’ 
after the semicolon at the end. 
SEC. 2103. MAXIMUM ENROLLMENT OF ACREAGE IN CON-
SERVATION RESERVE. 
Section 1231(d) of the Food Security Act of 1985 
(16 U.S.C. 3831(d)) is amended— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00272
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
273 
(1) by striking ‘‘2007 calendar years’’ and in-
serting ‘‘2009 fiscal years’’; 
(2) by striking ‘‘( 16 U.S.C.’’ and inserting 
‘‘(16 U.S.C.’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘During fiscal years 2010, 2011, and 2012, 
the Secretary may maintain up to 32,000,000 acres 
in the conservation reserve at any 1 time.’’. 
SEC. 2104. DESIGNATION OF CONSERVATION PRIORITY 
AREAS. 
Section 1231(f) of the Food Security Act of 1985 (16 
U.S.C. 3831(f)) is amended by striking ‘‘the Chesapeake 
Bay Region (Pennsylvania, Maryland, and Virginia)’’ and 
inserting ‘‘the Chesapeake Bay Region’’. 
SEC. 2105. TREATMENT OF MULTI-YEAR GRASSES AND LEG-
UMES. 
Subsection (g) of section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended to read as fol-
lows: 
‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 
‘‘(1) IN GENERAL.—For purposes of this sub-
chapter, alfalfa and other multi-year grasses and 
legumes in a rotation practice, approved by the Sec-
retary, shall be considered agricultural commodities. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00273
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
274 
‘‘(2) CROPPING HISTORY.—Alfalfa, when grown 
as part of a rotation practice, as determined by the 
Secretary, is an agricultural commodity subject to 
the cropping history criteria under subsection 
(b)(1)(B) for the purpose of determining whether 
highly erodible cropland has been planted or consid-
ered planted for 4 of the 6 years referred to in such 
subsection.’’. 
SEC. 2106. REVISED PILOT PROGRAM FOR ENROLLMENT OF 
WETLAND AND BUFFER ACREAGE IN CON-
SERVATION RESERVE. 
(a) REVISED PROGRAM.— 
(1) IN GENERAL.—Title XII of the Food Secu-
rity Act of 1985 is amended by inserting after sec-
tion 1231 (16 U.S.C. 3831) the following new sec-
tion: 
‘‘SEC. 1231B. PILOT PROGRAM FOR ENROLLMENT OF WET-
LAND AND BUFFER ACREAGE IN CONSERVA-
TION RESERVE. 
‘‘(a) PROGRAM REQUIRED.— 
‘‘(1) IN GENERAL.—During the 2008 through 
2012 fiscal years, the Secretary shall carry out a 
program in each State under which the Secretary 
shall enroll eligible acreage described in subsection 
(b). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00274
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
275 
‘‘(2) PARTICIPATION
AMONG
STATES.—The 
Secretary shall ensure, to the maximum extent prac-
ticable, that owners and operators in each State 
have an equitable opportunity to participate in the 
program established under this section. 
‘‘(b) ELIGIBLE ACREAGE.— 
‘‘(1) WETLAND AND RELATED LAND.—Subject 
to subsections (c) and (d), an owner or operator may 
enroll in the conservation reserve, pursuant to the 
program established under this section, land— 
‘‘(A) that is wetland (including a converted 
wetland described in section 1222(b)(1)(A)) 
that had a cropping history during at least 3 of 
the immediately preceding 10 crop years; 
‘‘(B) on which a constructed wetland is to 
be developed that will receive flow from a row 
crop agriculture drainage system and is de-
signed to provide nitrogen removal in addition 
to other wetland functions; 
‘‘(C) that was devoted to commercial pond- 
raised aquaculture in any year during the pe-
riod of calendar years 2002 through 2007; or 
‘‘(D) that, after January 1, 1990, and be-
fore December 31, 2002, was— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00275
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
276 
‘‘(i) cropped during at least 3 of 10 
crop years; and 
‘‘(ii) subject to the natural overflow of 
a prairie wetland. 
‘‘(2) BUFFER
ACREAGE.—Subject to sub-
sections (c) and (d), an owner or operator may en-
roll in the conservation reserve, pursuant to the pro-
gram established under this section, buffer acreage 
that— 
‘‘(A) with respect to land described in sub-
paragraph (A), (B), or (C) of paragraph (1)— 
‘‘(i) is contiguous to such land 
‘‘(ii) is used to protect such land; and 
‘‘(iii) is of such width as the Secretary 
determines is necessary to protect such 
land, taking into consideration and accom-
modating the farming practices (including 
the straightening of boundaries to accom-
modate machinery) used with respect to 
the cropland that surrounds such land; and 
‘‘(B) with respect to land described in sub-
paragraph (D) of paragraph (1), enhances a 
wildlife benefit to the extent practicable in 
terms of upland to wetland ratios, as deter-
mined by the Secretary. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00276
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
277 
‘‘(c) PROGRAM LIMITATIONS.— 
‘‘(1) ACREAGE
LIMITATION.—The Secretary 
may enroll in the conservation reserve, pursuant to 
the program established under this section, not more 
than— 
‘‘(A) 100,000 acres in any State; and 
‘‘(B) a total of 1,000,000 acres. 
‘‘(2) RELATIONSHIP
TO
MAXIMUM
ENROLL-
MENT.—Subject to paragraph (3), any acreage en-
rolled in the conservation reserve under this section 
shall be considered acres maintained in the conserva-
tion reserve. 
‘‘(3) RELATIONSHIP
TO
OTHER
ENROLLED 
ACREAGE.—Acreage enrolled in the conservation re-
serve under this section shall not affect for any fis-
cal year the quantity of— 
‘‘(A) acreage enrolled to establish con-
servation buffers as part of the program an-
nounced on March 24, 1998 (63 Fed. Reg. 
14109); or 
‘‘(B) acreage enrolled into the conservation 
reserve enhancement program announced on 
May 27, 1998 (63 Fed. Reg. 28965). 
‘‘(4) REVIEW; POTENTIAL
INCREASE
IN
EN-
ROLLMENT ACREAGE.—The Secretary shall conduct 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00277
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
278 
a review of the program established under this sec-
tion with respect to each State that has enrolled 
land in the conservation reserve pursuant to the pro-
gram. As a result of the review, the Secretary may 
increase the number of acres that may be enrolled 
in a State under the program to not more than 
200,000 acres, notwithstanding paragraph (1)(A). 
‘‘(d) OWNER OR OPERATOR ENROLLMENT LIMITA-
TIONS.— 
‘‘(1) WETLAND AND RELATED LAND.— 
‘‘(A) WETLANDS AND CONSTRUCTED WET-
LANDS.—The maximum size of any land de-
scribed in subparagraph (A) or (B) of sub-
section (b)(1) that an owner or operator may 
enroll in the conservation reserve, pursuant to 
the program established under this section, 
shall be 40 contiguous acres. 
‘‘(B) FLOODED
FARMLAND.—The max-
imum size of any land described in subpara-
graph (D) of subsection (b)(1) that an owner or 
operator may enroll in the conservation reserve, 
pursuant to the program established under this 
section, shall be 20 contiguous acres. 
‘‘(C) COVERAGE.—All acres described in 
subparagraph (A) or (B), including acres that 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00278
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
279 
are ineligible for payment, shall be covered by 
the conservation contract. 
‘‘(2) BUFFER ACREAGE.—The maximum size of 
any buffer acreage described in subsection (b)(2) 
that an owner or operator may enroll in the con-
servation reserve under this section shall be deter-
mined by the Secretary in consultation with the 
State Technical Committee. 
‘‘(3) TRACTS.—Except for land described in 
subsection (b)(1)(C) and buffer acreage related to 
such land, the maximum size of any eligible acreage 
described in subsection (b)(1) in a tract of an owner 
or operator enrolled in the conservation reserve 
under this section shall be 40 acres. 
‘‘(e) DUTIES OF OWNERS AND OPERATORS.—During 
the term of a contract entered into under the program 
established under this section, an owner or operator shall 
agree— 
‘‘(1) to restore the hydrology of the wetland 
within the eligible acreage to the maximum extent 
practicable, as determined by the Secretary; 
‘‘(2) to establish vegetative cover (which may 
include emerging vegetation in water and bottom-
land hardwoods, cypress, and other appropriate tree 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00279
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
280 
species) on the eligible acreage, as determined by the 
Secretary; 
‘‘(3) to a general prohibition of commercial use 
of the enrolled land; and 
‘‘(4) to carry out other duties described in sec-
tion 1232. 
‘‘(f) DUTIES OF THE SECRETARY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), in return for a contract entered 
into under this section, the Secretary shall— 
‘‘(A) make payments to the owner or oper-
ator based on rental rates for cropland; and 
‘‘(B) provide assistance to the owner or op-
erator in accordance with sections 1233 and 
1234. 
‘‘(2) CONTRACT OFFERS AND PAYMENTS.—The 
Secretary shall use the method of determination de-
scribed in section 1234(c)(2)(B) to determine the ac-
ceptability of contract offers and the amount of rent-
al payments under this section. 
‘‘(3) INCENTIVES.—The amounts payable to 
owners and operators in the form of rental payments 
under contracts entered into under this section shall 
reflect incentives that are provided to owners and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00280
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
281 
operators to enroll filterstrips in the conservation re-
serve under section 1234.’’. 
(2) REPEAL OF SUPERCEDED PROGRAM.—Sec-
tion 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended— 
(A) by striking subsection (h); and 
(B) by redesignating subsections (i) and (j) 
as subsections (h) and (i), respectively. 
(b) CONFORMING CHANGES TO EMERGENCY FOR-
ESTRY CONSERVATION RESERVE PROGRAM.—Subsection 
(k) of section 1231 of the Food Security Act of 1985 (16 
U.S.C. 3831) is amended— 
(1) by striking ‘‘(k) EMERGENCY FORESTRY 
CONSERVATION RESERVE PROGRAM.—’’ and insert-
ing the following: 
‘‘SEC. 1231A. EMERGENCY FORESTRY CONSERVATION RE-
SERVE PROGRAM.’’; 
(2) by striking ‘‘subsection’’ each place it ap-
pears (other than paragraph (3)(C)(ii)) and insert-
ing ‘‘section’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c), respectively; 
(4) in subsection (a), as so redesignated, by re-
designating subparagraphs (A) and (B) as para-
graphs (1) and (2), respectively; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00281
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
282 
(5) in subsection (c), as so redesignated— 
(A) by redesignating subparagraphs (A) 
through (I) as paragraphs (1) through (9), re-
spectively; 
(B) in paragraph (1), as so redesignated, 
by striking ‘‘subparagraph (B)’’ and ‘‘subpara-
graph (G)’’ and inserting ‘‘paragraph (2)’’ and 
‘‘paragraph (7)’’, respectively; 
(C) in paragraph (3), as so redesignated— 
(i) by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respec-
tively; and 
(ii) by striking ‘‘subsection (d)’’ and 
inserting ‘‘section 1231(d)’’; 
(D) in paragraph (4), as so redesignated, 
by redesignating clauses (i) and (ii) as subpara-
graphs (A) and (B), respectively; 
(E) in paragraph (5), as so redesignated— 
(i) 
by 
redesignating 
clauses 
(i) 
through (v) as subparagraphs (A) through 
(E), respectively, and subclauses (I) and 
(II) as clauses (i) and (ii), respectively; 
(ii) in subparagraph (B), as so redes-
ignated, by striking ‘‘clause (i)(I)’’ and in-
serting ‘‘subparagraph (A)(i)’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00282
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
283 
(iii) in subparagraph (C), as so redes-
ignated, by striking ‘‘clause (i)(II)’’ and in-
serting ‘‘subparagraph (A)(ii)’’; and 
(F) in paragraph (9), as so redesignated, 
by redesignating clauses (i) through (iii) as sub-
paragraphs (A) through (C), respectively, and 
subclauses (I) through (III) as clauses (i) 
through (iii), respectively. 
SEC. 2107. ADDITIONAL DUTY OF PARTICIPANTS UNDER 
CONSERVATION RESERVE CONTRACTS. 
Section 1232(a) of the Food Security Act of 1985 
(16 U.S.C. 3832(a)) is amended— 
(1) by redesignating paragraphs (5) through 
(10) as paragraphs (6) through (11), respectively; 
and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) to undertake management on the land as 
needed throughout the term of the contract to imple-
ment the conservation plan;’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00283
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
284 
SEC. 2108. MANAGED HAYING, GRAZING, OR OTHER COM-
MERCIAL USE OF FORAGE ON ENROLLED 
LAND AND INSTALLATION OF WIND TUR-
BINES. 
(a) GENERAL PROHIBITION; EXCEPTIONS.—Section 
1232(a) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)) is amended by striking paragraph (8), as redes-
ignated by section 2107, and inserting the following new 
paragraph: 
‘‘(8) not to conduct any harvesting or grazing, 
nor otherwise make commercial use of the forage, on 
land that is subject to the contract, nor adopt any 
similar practice specified in the contract by the Sec-
retary as a practice that would tend to defeat the 
purposes of the contract, except that the Secretary 
may permit, consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during nesting seasons for birds in the area)— 
‘‘(A) managed harvesting (including the 
managed harvesting of biomass), except that in 
permitting managed harvesting, the Secretary, 
in coordination with the State technical com-
mittee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00284
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
285 
‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted; 
‘‘(B) harvesting and grazing or other com-
mercial use of the forage on the land that is 
subject to the contract in response to a drought 
or other emergency; 
‘‘(C) routine grazing or prescribed grazing 
for the control of invasive species, except that 
in permitting such routine grazing or prescribed 
grazing, the Secretary, in coordination with the 
State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements and stock-
ing rates for the land that are suitable for 
continued routine grazing; and 
‘‘(ii) shall establish the frequency dur-
ing which routine grazing may be con-
ducted, taking into consideration regional 
differences such as— 
‘‘(I) climate, soil type, and nat-
ural resources; 
‘‘(II) the number of years that 
should be required between routine 
grazing activities; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00285
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
286 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(D) the installation of wind turbines, ex-
cept that in permitting the installation of wind 
turbines, the Secretary shall determine the 
number and location of wind turbines that may 
be installed, taking into account— 
‘‘(i) the location, size, and other phys-
ical characteristics of the land; 
‘‘(ii) the extent to which the land con-
tains wildlife and wildlife habitat; and 
‘‘(iii) the purposes of the conservation 
reserve program under this subchapter;’’. 
(b) RENTAL PAYMENT REDUCTION.—Section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by adding at the end the following new sub-
section: 
‘‘(d) RENTAL PAYMENT REDUCTION FOR CERTAIN 
AUTHORIZED USES OF ENROLLED LAND.—In the case of 
an authorized activity under subsection (a)(8) on land that 
is subject to a contract under this subchapter, the Sec-
retary shall reduce the rental payment otherwise payable 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00286
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
287 
under the contract by an amount commensurate with the 
economic value of the authorized activity.’’. 
SEC. 2109. COST SHARING PAYMENTS RELATING TO TREES, 
WINDBREAKS, SHELTERBELTS, AND WILD-
LIFE CORRIDORS. 
Section 1234(b) of the Food Security Act of 1985 
(16 U.S.C. 3834(b)) is amended by striking paragraph (3) 
and inserting the following new paragraph: 
‘‘(3) TREES, 
WINDBREAKS, 
SHELTERBELTS, 
AND WILDLIFE CORRIDORS.— 
‘‘(A) APPLICABILITY.—This paragraph ap-
plies to— 
‘‘(i) land devoted to the production of 
hardwood trees, windbreaks, shelterbelts, 
or wildlife corridors under a contract en-
tered into under this subchapter after No-
vember 28, 1990; 
‘‘(ii) land converted to such produc-
tion under section 1235A; and 
‘‘(iii) land on which an owner or oper-
ator agrees to conduct thinning authorized 
by section 1232(a)(9), if the thinning is 
necessary to improve the condition of re-
sources on the land. 
‘‘(B) PAYMENTS.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00287
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
288 
‘‘(i) PERCENTAGE.—In making cost 
share payments to an owner or operator of 
land described in subparagraph (A), the 
Secretary shall pay 50 percent of the rea-
sonable and necessary costs incurred by 
the owner or operator for maintaining 
trees or shrubs, including the cost of re-
planting (if the trees or shrubs were lost 
due to conditions beyond the control of the 
owner or operator) or thinning. 
‘‘(ii) DURATION.—The Secretary shall 
make payments as described in clause (i) 
for a period of not less than 2 years, but 
not more than 4 years, beginning on the 
date of— 
‘‘(I) the planting of the trees or 
shrubs; or 
‘‘(II) the thinning of existing 
stands to improve the condition of re-
sources on the land.’’. 
SEC. 2110. EVALUATION AND ACCEPTANCE OF CONTRACT 
OFFERS, ANNUAL RENTAL PAYMENTS, AND 
PAYMENT LIMITATIONS. 
(a) EVALUATION AND ACCEPTANCE OF CONTRACT 
OFFERS.—Section 1234(c) of the Food Security Act of 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00288
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
289 
1985 (16 U.S.C. 3834(c)) is amended by striking para-
graph (3) and inserting the following new paragraph: 
‘‘(3) ACCEPTANCE OF CONTRACT OFFERS.— 
‘‘(A) EVALUATION OF OFFERS.—In deter-
mining the acceptability of contract offers, the 
Secretary may take into consideration the ex-
tent to which enrollment of the land that is the 
subject of the contract offer would improve soil 
resources, water quality, or wildlife habitat or 
provide other environmental benefits. 
‘‘(B) ESTABLISHMENT OF DIFFERENT CRI-
TERIA IN VARIOUS STATES AND REGIONS.—The 
Secretary may establish different criteria for 
determining the acceptability of contract offers 
in various States and regions of the United 
States based on the extent to which water qual-
ity or wildlife habitat may be improved or ero-
sion may be abated. 
‘‘(C) 
LOCAL
PREFERENCE.—In 
deter-
mining the acceptability of contract offers for 
new enrollments, the Secretary shall accept, to 
the maximum extent practicable, an offer from 
an owner or operator that is a resident of the 
county in which the land is located or of a con-
tiguous county if, as determined by the Sec-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00289
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
290 
retary, the land would provide at least equiva-
lent conservation benefits to land under com-
peting offers.’’. 
(b) ANNUAL SURVEY OF DRYLAND AND IRRIGATED 
CASH RENTAL RATES.— 
(1) ANNUAL
ESTIMATES
REQUIRED.—Section 
1234(c) of the Food Security Act of 1985 (16 
U.S.C. 3834(c)) is amended by adding at the end 
the following new paragraph: 
‘‘(5) RENTAL RATES.— 
‘‘(A) ANNUAL ESTIMATES.—The Secretary 
(acting through the National Agricultural Sta-
tistics Service) shall conduct an annual survey 
of per acre estimates of county average market 
dryland and irrigated cash rental rates for crop-
land and pastureland in all counties or equiva-
lent subdivisions within each State that have 
20,000 acres or more of cropland and 
pastureland. 
‘‘(B) PUBLIC
AVAILABILITY
OF
ESTI-
MATES.—The estimates derived from the an-
nual survey conducted under subparagraph (A) 
shall be maintained on a website of the Depart-
ment of Agriculture for use by the general pub-
lic.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00290
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
291 
(2) FIRST SURVEY.—The first survey required 
by paragraph (5) of section 1234(c) of the Food Se-
curity Act of 1985 (16 U.S.C. 3834(c)), as added by 
subsection (a), shall be conducted not later than 1 
year after the date of enactment of this Act. 
(c) PAYMENT LIMITATIONS.—Section 1234(f) of the 
Food Security Act of 1985 (16 U.S.C. 3834(f)) is amend-
ed— 
(1) in paragraph (1), by striking ‘‘made to a 
person’’ and inserting ‘‘received by a person or legal 
entity, directly or indirectly,’’; 
(2) by striking paragraph (2); and 
(3) in paragraph (4), by striking ‘‘any person’’ 
and inserting ‘‘any person or legal entity’’. 
SEC. 2111. CONSERVATION RESERVE PROGRAM TRANSI-
TION INCENTIVES FOR BEGINNING FARMERS 
OR RANCHERS AND SOCIALLY DISADVAN-
TAGED FARMERS OR RANCHERS. 
(a) CONTRACT MODIFICATION AUTHORITY.—Section 
1235(c)(1)(B) of the Food Security Act of 1985 (16 
U.S.C. 3835(c)(1)(B)) is amended— 
(1) in clause (ii), by striking ‘‘or’’ at the end; 
(2) by redesignating clause (iii) as clause (iv); 
and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00291
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
292 
(3) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) to facilitate a transition of land 
subject to the contract from a retired or 
retiring owner or operator to a beginning 
farmer or rancher or socially disadvan-
taged farmer or rancher for the purpose of 
returning some or all of the land into pro-
duction using sustainable grazing or crop 
production methods; or’’. 
(b) TRANSITION OPTION.—Section 1235 of the Food 
Security Act of 1985 (16 U.S.C. 3835) is amended by 
adding at the end the following new subsection: 
‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.— 
‘‘(1) DUTIES OF THE SECRETARY.—In the case 
of a contract modification approved in order to fa-
cilitate the transfer, as described in subsection 
(c)(1)(B)(iii), of land to a beginning farmer or 
rancher or socially disadvantaged farmer or rancher 
(in this subsection referred to as a ‘covered farmer 
or rancher’), the Secretary shall— 
‘‘(A) beginning on the date that is 1 year 
before the date of termination of the contract— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00292
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
293 
‘‘(i) allow the covered farmer or 
rancher, in conjunction with the retired or 
retiring owner or operator, to make con-
servation and land improvements; and 
‘‘(ii) allow the covered farmer or 
rancher to begin the certification process 
under the Organic Foods Production Act 
of 1990 (7 U.S.C. 6501 et seq.); 
‘‘(B) beginning on the date of termination 
of the contract, require the retired or retiring 
owner or operator to sell or lease (under a long- 
term lease or a lease with an option to pur-
chase) to the covered farmer or rancher the 
land subject to the contract for production pur-
poses; 
‘‘(C) require the covered farmer or rancher 
to develop and implement a conservation plan; 
‘‘(D) provide to the covered farmer or 
rancher an opportunity to enroll in the con-
servation stewardship program or the environ-
mental quality incentives program by not later 
than the date on which the farmer or rancher 
takes possession of the land through ownership 
or lease; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00293
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
294 
‘‘(E) continue to make annual payments to 
the retired or retiring owner or operator for not 
more than an additional 2 years after the date 
of termination of the contract, if the retired or 
retiring owner or operator is not a family mem-
ber (as defined in section 1001A(b)(3)(B) of 
this Act) of the covered farmer or rancher. 
‘‘(2) REENROLLMENT.—The Secretary shall 
provide a covered farmer or rancher with the option 
to reenroll any applicable partial field conservation 
practice that— 
‘‘(A) is eligible for enrollment under the 
continuous 
signup 
requirement 
of 
section 
1231(h)(4)(B); and 
‘‘(B) is part of an approved conservation 
plan.’’. 
Subtitle C—Wetlands Reserve 
Program 
SEC. 2201. ESTABLISHMENT AND PURPOSE OF WETLANDS 
RESERVE PROGRAM. 
Subsection (a) of section 1237 of the Food Security 
Act of 1985 (16 U.S.C. 3837) is amended to read as fol-
lows: 
‘‘(a) ESTABLISHMENT AND PURPOSES.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00294
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
295 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a wetlands reserve program to assist owners 
of eligible lands in restoring and protecting wet-
lands. 
‘‘(2) PURPOSES.—The purposes of the wetlands 
reserve program are to restore, protect, or enhance 
wetlands on private or tribal lands that are eligible 
under subsections (c) and (d).’’. 
SEC. 2202. MAXIMUM ENROLLMENT AND ENROLLMENT 
METHODS. 
Section 1237(b) of the Food Security Act of 1985 
(16 U.S.C. 3837(b)) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) MAXIMUM ENROLLMENT.—The total num-
ber of acres enrolled in the wetlands reserve pro-
gram shall not exceed 3,041,200 acres.’’; 
(2) in paragraph (2), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Subject to paragraph (3), the 
Secretary’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) ACREAGE OWNED BY INDIAN TRIBES.—In 
the case of acreage owned by an Indian tribe, the 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00295
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
296 
Secretary shall enroll acreage into the wetlands re-
serve program through the use of— 
‘‘(A) a 30-year contract (the value of 
which shall be equivalent to the value of a 30- 
year easement); 
‘‘(B) restoration cost-share agreements; or 
‘‘(C) any combination of the options de-
scribed in subparagraphs (A) and (B).’’. 
SEC. 2203. DURATION OF WETLANDS RESERVE PROGRAM 
AND LANDS ELIGIBLE FOR ENROLLMENT. 
(a) IN GENERAL.—Section 1237(c) of the Food Secu-
rity Act of 1985 (16 U.S.C. 3837(c)) is amended— 
(1) in the matter preceding paragraph (1)— 
(A) by striking ‘‘2007 calendar’’ and in-
serting ‘‘2012 fiscal’’; and 
(B) by inserting ‘‘private or tribal’’ before 
‘‘land’’ the second place it appears; 
(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) such land is— 
‘‘(A) farmed wetland or converted wetland, 
together with the adjacent land that is function-
ally dependent on the wetlands, except that con-
verted wetland with respect to which the con-
version was not commenced prior to December 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00296
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
297 
23, 1985, shall not be eligible to be enrolled in 
the program under this section; or 
‘‘(B) cropland or grassland that was used 
for agricultural production prior to flooding 
from the natural overflow of a closed basin lake 
or pothole, as determined by the Secretary, to-
gether (where practicable) with the adjacent 
land that is functionally dependent on the crop-
land or grassland; and’’. 
(b) CHANGE OF OWNERSHIP.—Section 1237E(a) of 
the Food Security Act of 1985 (16 U.S.C. 3837e(a)) is 
amended by striking ‘‘in the preceding 12 months’’ and 
inserting ‘‘during the preceding 7-year period’’. 
(c) ANNUAL SURVEY AND REALLOCATION.—Section 
1237F of the Food Security Act of 1985 (16 U.S.C. 
3837f) is amended by adding at the end the following new 
subsection: 
‘‘(c) PRAIRIE POTHOLE REGION SURVEY AND RE-
ALLOCATION.— 
‘‘(1) SURVEY.—The Secretary shall conduct a 
survey during fiscal year 2008 and each subsequent 
fiscal year for the purpose of determining interest 
and allocations for the Prairie Pothole Region to en-
roll eligible land described in section 1237(c)(2)(B). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00297
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
298 
‘‘(2) ANNUAL
ADJUSTMENT.—The Secretary 
shall make an adjustment to the allocation for an in-
terested State for a fiscal year, based on the results 
of the survey conducted under paragraph (1) for the 
State during the previous fiscal year.’’. 
SEC. 2204. TERMS OF WETLANDS RESERVE PROGRAM EASE-
MENTS. 
Section 1237A(b)(2)(B) of the Food Security Act of 
1985 (16 U.S.C. 3837a(b)(2)(B)) is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking ‘‘; and’’ and in-
serting ‘‘; or’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(iii) to meet habitat needs of specific 
wildlife species; and’’. 
SEC. 2205. COMPENSATION FOR EASEMENTS UNDER WET-
LANDS RESERVE PROGRAM. 
Subsection (f) of section 1237A of the Food Security 
Act of 1985 (16 U.S.C. 3837a) is amended to read as 
follows: 
‘‘(f) COMPENSATION.— 
‘‘(1) DETERMINATION.—Effective on the date 
of the enactment of the Food, Conservation, and En-
ergy Act of 2008, the Secretary shall pay as com-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00298
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
299 
pensation for a conservation easement acquired 
under this subchapter the lowest of— 
‘‘(A) the fair market value of the land, as 
determined by the Secretary, using the Uniform 
Standards of Professional Appraisal Practices 
or an area-wide market analysis or survey; 
‘‘(B) the amount corresponding to a geo-
graphical cap, as determined by the Secretary 
in regulations; or 
‘‘(C) the offer made by the landowner. 
‘‘(2) FORM
OF
PAYMENT.—Compensation for 
an easement shall be provided by the Secretary in 
the form of a cash payment, in an amount deter-
mined under paragraph (1) and specified in the 
easement agreement. 
‘‘(3) PAYMENT SCHEDULE FOR EASEMENTS.— 
‘‘(A) EASEMENTS VALUED AT $500,000 OR 
LESS.—For easements valued at $500,000 or 
less, the Secretary may provide easement pay-
ments in not more than 30 annual payments. 
‘‘(B) 
EASEMENTS
IN
EXCESS
OF 
$500,000.—For easements valued at more than 
$500,000, the Secretary may provide easement 
payments in at least 5, but not more than 30 
annual payments, except that, if the Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00299
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
300 
determines it would further the purposes of the 
program, the Secretary may make a lump sum 
payment for such an easement. 
‘‘(4) RESTORATION AGREEMENT PAYMENT LIM-
ITATION.—Payments made to a person or legal enti-
ty, directly or indirectly, pursuant to a restoration 
cost-share agreement under this subchapter may not 
exceed, in the aggregate, $50,000 per year. 
‘‘(5) ENROLLMENT
PROCEDURE.—Lands may 
be enrolled under this subchapter through the sub-
mission of bids under a procedure established by the 
Secretary.’’. 
SEC. 2206. WETLANDS RESERVE ENHANCEMENT PROGRAM 
AND RESERVED RIGHTS PILOT PROGRAM. 
Section 1237A of the Food Security Act of 1985 (16 
U.S.C. 3837a) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(h) WETLANDS RESERVE ENHANCEMENT PRO-
GRAM.— 
‘‘(1) PROGRAM
AUTHORIZED.—The Secretary 
may enter into 1 or more agreements with a State 
(including a political subdivision or agency of a 
State), nongovernmental organization, or Indian 
tribe to carry out a special wetlands reserve en-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00300
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
301 
hancement program that the Secretary determines 
would advance the purposes of this subchapter. 
‘‘(2) RESERVED RIGHTS PILOT PROGRAM.— 
‘‘(A) 
RESERVATION
OF
GRAZING 
RIGHTS.—As part of the wetlands reserve en-
hancement program, the Secretary shall carry 
out a pilot program for land in which a land-
owner may reserve grazing rights in the war-
ranty easement deed restriction if the Secretary 
determines that the reservation and use of the 
grazing rights— 
‘‘(i) is compatible with the land sub-
ject to the easement; 
‘‘(ii) is consistent with the long-term 
wetland protection and enhancement goals 
for which the easement was established; 
and 
‘‘(iii) complies with a conservation 
plan. 
‘‘(B) DURATION.—The pilot program es-
tablished under this paragraph shall terminate 
on September 30, 2012.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00301
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
302 
SEC. 2207. DUTIES OF SECRETARY OF AGRICULTURE 
UNDER WETLANDS RESERVE PROGRAM. 
Section 1237C of the Food Security Act of 1985 (16 
U.S.C. 3837c) is amended— 
(1) in subsection (a)(1), by inserting ‘‘including 
necessary maintenance activities,’’ after ‘‘values,’’; 
and 
(2) by striking subsection (c) and inserting the 
following new subsection: 
‘‘(c) RANKING OF OFFERS.— 
‘‘(1) CONSERVATION BENEFITS AND FUNDING 
CONSIDERATIONS.—When evaluating offers from 
landowners, the Secretary may consider— 
‘‘(A) the conservation benefits of obtaining 
an easement or other interest in the land; 
‘‘(B) the cost-effectiveness of each ease-
ment or other interest in eligible land, so as to 
maximize the environmental benefits per dollar 
expended; and 
‘‘(C) whether the landowner or another 
person is offering to contribute financially to 
the cost of the easement or other interest in the 
land to leverage Federal funds. 
‘‘(2) ADDITIONAL CONSIDERATIONS.—In deter-
mining the acceptability of easement offers, the Sec-
retary may take into consideration— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00302
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
303 
‘‘(A) the extent to which the purposes of 
the easement program would be achieved on the 
land; 
‘‘(B) the productivity of the land; and 
‘‘(C) the on-farm and off-farm environ-
mental threats if the land is used for the pro-
duction of agricultural commodities.’’. 
SEC. 2208. PAYMENT LIMITATIONS UNDER WETLANDS RE-
SERVE CONTRACTS AND AGREEMENTS. 
Section 1237D(c)(1) of the Food Security Act of 
1985 (16 U.S.C. 3837d(c)(1)) is amended— 
(1) by striking ‘‘The total amount of easement 
payments made to a person’’ and inserting ‘‘The 
total amount of payments that a person or legal en-
tity may receive, directly or indirectly,’’; and 
(2) by inserting ‘‘or under 30-year contracts’’ 
before the period at the end. 
SEC. 2209. REPEAL OF PAYMENT LIMITATIONS EXCEPTION 
FOR STATE AGREEMENTS FOR WETLANDS 
RESERVE ENHANCEMENT. 
Section 1237D(c) of the Food Security Act of 1985 
(16 U.S.C. 3837d(c)) is amended by striking paragraph 
(4). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00303
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
304 
SEC. 2210. REPORT ON IMPLICATIONS OF LONG-TERM NA-
TURE OF CONSERVATION EASEMENTS. 
(a) REPORT REQUIRED.—Not later than January 1, 
2010, the Secretary of Agriculture shall submit to the 
Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and For-
estry of the Senate a report that evaluates the implications 
of the long-term nature of conservation easements granted 
under section 1237A of the Food Security Act of 1985 
(16 U.S.C. 3837a) on resources of the Department of Ag-
riculture. 
(b) INCLUSIONS.—The report required by subsection 
(a) shall include the following: 
(1) Data relating to the number and location of 
conservation easements granted under that section 
that the Secretary holds or has a significant role in 
monitoring or managing. 
(2) An assessment of the extent to which the 
oversight of the conservation easement agreements 
impacts the availability of resources, including tech-
nical assistance. 
(3) An assessment of the uses and value of 
agreements with partner organizations. 
(4) Any other relevant information relating to 
costs or other effects that would be helpful to the 
Committees referred to in subsection (a). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00304
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
305 
Subtitle D—Conservation 
Stewardship Program 
SEC. 2301. CONSERVATION STEWARDSHIP PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—Chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 
is amended— 
(1) by redesignating subchapters B (farmland 
protection program) and C (grassland reserve pro-
gram) as subchapters C and D, respectively; and 
(2) by inserting after subchapter A the fol-
lowing new subchapter: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) CONSERVATION ACTIVITIES.— 
‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures that are de-
signed to address a resource concern. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00305
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
306 
ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a re-
source concern. 
‘‘(2) CONSERVATION MEASUREMENT TOOLS.— 
The term ‘conservation measurement tools’ means 
procedures to estimate the level of environmental 
benefit to be achieved by a producer in implementing 
conservation activities, including indices or other 
measures developed by the Secretary. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.— 
The term ‘conservation stewardship plan’ means a 
plan that— 
‘‘(A) identifies and inventories resource 
concerns; 
‘‘(B) establishes benchmark data and con-
servation objectives; 
‘‘(C) describes conservation activities to be 
implemented, managed, or improved; and 
‘‘(D) includes a schedule and evaluation 
plan for the planning, installation, and manage-
ment of the new and existing conservation ac-
tivities. 
‘‘(4) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a resource 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00306
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
307 
concern that is identified at the State level, in con-
sultation with the State Technical Committee, as a 
priority for a particular watershed or area of the 
State. 
‘‘(5) PROGRAM.—The term ‘program’ means 
the conservation stewardship program established by 
this subchapter. 
‘‘(6) RESOURCE CONCERN.—The term ‘resource 
concern’ means a specific natural resource impair-
ment or problem, as determined by the Secretary, 
that— 
‘‘(A) represents a significant concern in a 
State or region; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities by producers on land eligible for enroll-
ment in the program. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of natural 
resource conservation and environmental manage-
ment required, as determined by the Secretary using 
conservation measurement tools, to improve and con-
serve the quality and condition of a resource con-
cern. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00307
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
308 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 
of fiscal years 2009 through 2012, the Secretary shall 
carry out a conservation stewardship program to encour-
age producers to address resource concerns in a com-
prehensive manner— 
‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining and managing 
existing conservation activities. 
‘‘(b) ELIGIBLE LAND.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (c), the following land is eligible for enroll-
ment in the program: 
‘‘(A) Private agricultural land (including 
cropland, grassland, prairie land, improved 
pastureland, rangeland, and land used for agro- 
forestry). 
‘‘(B) Agricultural land under the jurisdic-
tion of an Indian tribe. 
‘‘(C) Forested land that is an incidental 
part of an agricultural operation. 
‘‘(D) Other private agricultural land (in-
cluding cropped woodland, marshes, and agri-
cultural land used for the production of live-
stock) on which resource concerns related to ag-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00308
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
309 
ricultural production could be addressed by en-
rolling the land in the program, as determined 
by the Secretary. 
‘‘(2) SPECIAL RULE FOR NONINDUSTRIAL PRI-
VATE FOREST LAND.—Nonindustrial private forest 
land is eligible for enrollment in the program, except 
that not more than 10 percent of the annual acres 
enrolled nationally in any fiscal year may be non-
industrial private forest land. 
‘‘(3) 
AGRICULTURAL
OPERATION.—Eligible 
land shall include all acres of an agricultural oper-
ation of a producer, whether or not contiguous, that 
are under the effective control of the producer at the 
time the producer enters into a stewardship con-
tract, and is operated by the producer with equip-
ment, labor, management, and production or cultiva-
tion practices that are substantially separate from 
other agricultural operations, as determined by the 
Secretary. 
‘‘(c) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land is not be eligible for enrollment in the 
program: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00309
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
310 
‘‘(A) Land enrolled in the conservation re-
serve program. 
‘‘(B) Land enrolled in the wetlands reserve 
program. 
‘‘(C) Land enrolled in the grassland re-
serve program. 
‘‘(2) CONVERSION TO CROPLAND.—Land used 
for crop production after the date of enactment of 
the Food, Conservation, and Energy Act of 2008 
that had not been planted, considered to be planted, 
or devoted to crop production for at least 4 of the 
6 years preceding that date shall not be the basis for 
any payment under the program, unless the land 
does not meet the requirement because— 
‘‘(A) the land had previously been enrolled 
in the conservation reserve program; 
‘‘(B) the land has been maintained using 
long-term crop rotation practices, as determined 
by the Secretary; or 
‘‘(C) the land is incidental land needed for 
efficient operation of the farm or ranch, as de-
termined by the Secretary. 
‘‘SEC. 1238F. STEWARDSHIP CONTRACTS. 
‘‘(a) SUBMISSION OF CONTRACT OFFERS.—To be eli-
gible to participate in the conservation stewardship pro-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00310
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
311 
gram, a producer shall submit to the Secretary for ap-
proval a contract offer that— 
‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
tract offer, is meeting the stewardship threshold for 
at least one resource concern; and 
‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 priority resource 
concern by the end of the stewardship contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the op-
eration of the producer at the time the contract 
offer is accepted by the Secretary. 
‘‘(b) EVALUATION OF CONTRACT OFFERS.— 
‘‘(1) RANKING
OF
APPLICATIONS.—In evalu-
ating contract offers made by producers to enter 
into contracts under the program, the Secretary 
shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application, based to the maximum ex-
tent practicable on conservation measurement 
tools; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00311
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
312 
‘‘(B) the degree to which the proposed con-
servation treatment on applicable priority re-
source concerns effectively increases conserva-
tion performance, based to the maximum extent 
possible on conservation measurement tools; 
‘‘(C) the number of applicable priority re-
source concerns proposed to be treated to meet 
or exceed the stewardship threshold by the end 
of the contract; 
‘‘(D) the extent to which other resource 
concerns, in addition to priority resource con-
cerns, will be addressed to meet or exceed the 
stewardship threshold by the end of the con-
tract period; and 
‘‘(E) the extent to which the actual and 
anticipated environmental benefits from the 
contract are provided at the least cost relative 
to other similarly beneficial contract offers. 
‘‘(2) PROHIBITION.—The Secretary may not as-
sign a higher priority to any application because the 
applicant is willing to accept a lower payment than 
the applicant would otherwise be eligible to receive. 
‘‘(3) ADDITIONAL
CRITERIA.—The Secretary 
may develop and use such additional criteria for 
evaluating applications to enroll in the program that 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00312
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
313 
the Secretary determines are necessary to ensure 
that national, State, and local conservation priorities 
are effectively addressed. 
‘‘(c) ENTERING INTO CONTRACTS.—After a deter-
mination that a producer is eligible for the program under 
subsection (a), and a determination that the contract offer 
ranks sufficiently high under the evaluation criteria under 
subsection (b), the Secretary shall enter into a conserva-
tion stewardship contract with the producer to enroll the 
land to be covered by the contract. 
‘‘(d) CONTRACT PROVISIONS.— 
‘‘(1) TERM.—A conservation stewardship con-
tract shall be for a term of 5 years. 
‘‘(2) PROVISIONS.—The conservation steward-
ship contract of a producer shall— 
‘‘(A) state the amount of the payment the 
Secretary agrees to make to the producer for 
each year of the conservation stewardship con-
tract under section 1238G(e); 
‘‘(B) require the producer— 
‘‘(i) to implement during the term of 
the conservation stewardship contract the 
conservation stewardship plan approved by 
the Secretary; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00313
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
314 
‘‘(ii) to maintain, and make available 
to the Secretary at such times as the Sec-
retary may request, appropriate records 
showing the effective and timely implemen-
tation of the conservation stewardship con-
tract; and 
‘‘(iii) not to engage in any activity 
during the term of the conservation stew-
ardship contract on the eligible land cov-
ered by the contract that would interfere 
with the purposes of the conservation stew-
ardship contract; 
‘‘(C) permit all economic uses of the land 
that— 
‘‘(i) maintain the agricultural nature 
of the land; and 
‘‘(ii) are consistent with the conserva-
tion purposes of the conservation steward-
ship contract; 
‘‘(D) include a provision to ensure that a 
producer shall not be considered in violation of 
the contract for failure to comply with the con-
tract due to circumstances beyond the control 
of the producer, including a disaster or related 
condition, as determined by the Secretary; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00314
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
315 
‘‘(E) include such other provisions as the 
Secretary determines necessary to ensure the 
purposes of the program are achieved. 
‘‘(e) CONTRACT RENEWAL.—At the end of an initial 
conservation stewardship contract of a producer, the Sec-
retary may allow the producer to renew the contract for 
one additional five-year period if the producer— 
‘‘(1) demonstrates compliance with the terms of 
the existing contract; and 
‘‘(2) agrees to adopt new conservation activities, 
as determined by the Secretary. 
‘‘(f) MODIFICATION.—The Secretary may allow a 
producer to modify a stewardship contract if the Secretary 
determines that the modification is consistent with achiev-
ing the purposes of the program. 
‘‘(g) CONTRACT TERMINATION.— 
‘‘(1) VOLUNTARY
TERMINATION.—A producer 
may terminate a conservation stewardship contract 
if the Secretary determines that termination would 
not defeat the purposes of the program. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under this sub-
chapter if the Secretary determines that the pro-
ducer violated the contract. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00315
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
316 
‘‘(3) REPAYMENT.—If a contract is terminated, 
the Secretary may, consistent with the purposes of 
the program— 
‘‘(A) allow the producer to retain payments 
already received under the contract; or 
‘‘(B) require repayment, in whole or in 
part, of payments already received and assess 
liquidated damages. 
‘‘(4) CHANGE OF INTEREST IN LAND SUBJECT 
TO A CONTRACT.— 
‘‘(A) IN GENERAL.—Except as provided in 
paragraph (B), a change in the interest of a 
producer in land covered by a contract under 
this chapter shall result in the termination of 
the contract with regard to that land. 
‘‘(B) 
TRANSFER
OF
DUTIES
AND 
RIGHTS.—Subparagraph (A) shall not apply 
if— 
‘‘(i) within a reasonable period of time 
(as determined by the Secretary) after the 
date of the change in the interest in land 
covered by a contract under the program, 
the transferee of the land provides written 
notice to the Secretary that all duties and 
rights under the contract have been trans-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00316
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
317 
ferred to, and assumed by, the transferee; 
and 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program. 
‘‘(h) COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—The Secretary shall establish a transparent 
means by which producers may initiate organic certifi-
cation under the Organic Foods Production Act of 1990 
(7 U.S.C. 6501 et. seq.) while participating in a contract 
under this subchapter. 
‘‘(i) ON-FARM RESEARCH AND DEMONSTRATION OR 
PILOT TESTING.—The Secretary may approve a contract 
offer under this subchapter that includes— 
‘‘(1) on-farm conservation research and dem-
onstration activities; and 
‘‘(2) pilot testing of new technologies or innova-
tive conservation practices. 
‘‘SEC. 1238G. DUTIES OF THE SECRETARY. 
‘‘(a) IN GENERAL.—To achieve the conservation 
goals of a contract under the conservation stewardship 
program, the Secretary shall— 
‘‘(1) make the program available to eligible pro-
ducers on a continuous enrollment basis with 1 or 
more ranking periods, one of which shall occur in 
the first quarter of each fiscal year; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00317
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
318 
‘‘(2) identify not less than 3 nor more than 5 
priority resource concerns in a particular watershed 
or other appropriate region or area within a State; 
and 
‘‘(3) develop reliable conservation measurement 
tools for purposes of carrying out the program. 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible acres under section 1238E(b)(1) to the total 
number of eligible acres in all States; and 
‘‘(2) also on consideration of— 
‘‘(A) the extent and magnitude of the con-
servation needs associated with agricultural 
production in each State; 
‘‘(B) the degree to which implementation 
of the program in the State is, or will be, effec-
tive in helping producers address those needs; 
and 
‘‘(C) other considerations to achieve equi-
table geographic distribution of funds, as deter-
mined by the Secretary. 
‘‘(c) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00318
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
319 
propriate to enable specialty crop and organic producers 
to participate in the program. 
‘‘(d) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2008, and ending on 
September 30, 2017, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
12,769,000 acres for each fiscal year; and 
‘‘(2) manage the program to achieve a national 
average rate of $18 per acre, which shall include the 
costs of all financial assistance, technical assistance, 
and any other expenses associated with enrollment 
or participation in the program. 
‘‘(e) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide a payment under the program to 
compensate the producer for— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging conservation activities in place at the op-
eration of the producer at the time the contract 
offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the 
conservation stewardship payment shall be deter-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00319
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
320 
mined by the Secretary and based, to the maximum 
extent practicable, on the following factors: 
‘‘(A) Costs incurred by the producer asso-
ciated with planning, design, materials, installa-
tion, labor, management, maintenance, or train-
ing. 
‘‘(B) Income forgone by the producer. 
‘‘(C) Expected environmental benefits as 
determined by conservation measurement tools. 
‘‘(3) EXCLUSIONS.—A payment to a producer 
under this subsection shall not be provided for— 
‘‘(A) the design, construction, or mainte-
nance of animal waste storage or treatment fa-
cilities or associated waste transport or transfer 
devices for animal feeding operations; or 
‘‘(B) conservation activities for which there 
is no cost incurred or income forgone to the 
producer. 
‘‘(4) TIMING OF PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make payments as soon as practicable after Oc-
tober 1 of each fiscal year for activities carried 
out in the previous fiscal year. 
‘‘(B) ADDITIONAL ACTIVITIES.—The Sec-
retary shall make payments to compensate pro-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00320
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
321 
ducers for installation of additional practices at 
the time at which the practices are installed 
and adopted. 
‘‘(f) SUPPLEMENTAL PAYMENTS
FOR RESOURCE- 
CONSERVING CROP ROTATIONS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide additional payments to pro-
ducers that, in participating in the program, agree 
to adopt resource-conserving crop rotations to 
achieve beneficial crop rotations as appropriate for 
the land of the producers. 
‘‘(2) BENEFICIAL CROP ROTATIONS.—The Sec-
retary shall determine whether a resource-conserving 
crop rotation is a beneficial crop rotation eligible for 
additional payments under paragraph (1), based on 
whether the resource-conserving crop rotation is de-
signed to provide natural resource conservation and 
production benefits. 
‘‘(3) ELIGIBILITY.—To be eligible to receive a 
payment described in paragraph (1), a producer 
shall agree to adopt and maintain beneficial re-
source-conserving crop rotations for the term of the 
contract. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00321
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
322 
‘‘(4) 
RESOURCE-CONSERVING
CROP
ROTA-
TION.—In this subsection, the term ‘resource-con-
serving crop rotation’ means a crop rotation that— 
‘‘(A) includes at least 1 resource con-
serving crop (as defined by the Secretary); 
‘‘(B) reduces erosion; 
‘‘(C) improves soil fertility and tilth; 
‘‘(D) interrupts pest cycles; and 
‘‘(E) in applicable areas, reduces depletion 
of soil moisture or otherwise reduces the need 
for irrigation. 
‘‘(g) PAYMENT LIMITATIONS.—A person or legal en-
tity may not receive, directly or indirectly, payments under 
this subchapter that, in the aggregate, exceed $200,000 
for all contracts entered into during any 5-year period, 
excluding funding arrangements with federally recognized 
Indian tribes or Alaska Native corporations, regardless of 
the number of contracts entered into under the program 
by the person or entity. 
‘‘(h) REGULATIONS.—The Secretary shall promul-
gate regulations that— 
‘‘(1) prescribe such other rules as the Secretary 
determines to be necessary to ensure a fair and rea-
sonable application of the limitations established 
under subsection (g); and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00322
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
323 
‘‘(2) otherwise enable the Secretary to carry out 
the program. 
‘‘(i) DATA.—The Secretary shall maintain detailed 
and segmented data on contracts and payments under the 
program to allow for quantification of the amount of pay-
ments made for— 
‘‘(1) the installation and adoption of additional 
conservation activities and improvements to con-
servation activities in place on the operation of a 
producer at the time the conservation stewardship 
offer is accepted by the Secretary; 
‘‘(2) participation in research, demonstration, 
and pilot projects; and 
‘‘(3) the development and periodic assessment 
and evaluation of conservation plans developed under 
this subchapter.’’. 
(b) TERMINATION
OF
CONSERVATION
SECURITY 
PROGRAM
AUTHORITY; EFFECT
ON
EXISTING
CON-
TRACTS.—Section 1238A of the Food Security Act of 
1985 (16 U.S.C. 3838a) is amended by adding at the end 
the following new subsection: 
‘‘(g) PROHIBITION
ON CONSERVATION SECURITY 
PROGRAM
CONTRACTS; EFFECT
ON
EXISTING
CON-
TRACTS.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00323
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
324 
‘‘(1) PROHIBITION.—A conservation security 
contract may not be entered into or renewed under 
this subchapter after September 30, 2008. 
‘‘(2) EXCEPTION.—This subchapter, and the 
terms and conditions of the conservation security 
program, shall continue to apply to— 
‘‘(A) conservation security contracts en-
tered into on or before September 30, 2008; 
and 
‘‘(B) any conservation security contract en-
tered into after that date, but for which the ap-
plication for the contract was received during 
the 2008 sign-up period. 
‘‘(3) EFFECT
ON
PAYMENTS.—The Secretary 
shall make payments under this subchapter with re-
spect to conservation security contracts described in 
paragraph (2) during the remaining term of the con-
tracts. 
‘‘(4) REGULATIONS.—A contract described in 
paragraph (2) may not be administered under the 
regulations issued to carry out the conservation 
stewardship program.’’. 
(c) REFERENCE TO REDESIGNATED SUBCHAPTER.— 
Section 1238A(b)(3)(C) of title XII of the Food Security 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00324
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
325 
Act of 1985 (16 U.S.C. 3838a(b)(3)(C)) is amended by 
striking ‘‘subchapter C’’ and inserting ‘‘subchapter D’’. 
Subtitle E—Farmland Protection 
and Grassland Reserve 
SEC. 2401. FARMLAND PROTECTION PROGRAM. 
(a) DEFINITIONS.—Section 1238H of the Food Secu-
rity Act of 1985 (16 U.S.C. 3838h) is amended— 
(1) by striking paragraph (1) and inserting the 
following new paragraph: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) any agency of any State or local gov-
ernment or an Indian tribe (including a farm-
land protection board or land resource council 
established under State law); or 
‘‘(B) any organization that— 
‘‘(i) is organized for, and at all times 
since the formation of the organization has 
been operated principally for, 1 or more of 
the conservation purposes specified in 
clause (i), (ii), (iii), or (iv) of section 
170(h)(4)(A) of the Internal Revenue Code 
of 1986; 
‘‘(ii) is an organization described in 
section 501(c)(3) of that Code that is ex-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00325
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
326 
empt from taxation under section 501(a) 
of that Code; and 
‘‘(iii) is— 
‘‘(I) described in paragraph (1) 
or (2) of section 509(a) of that Code; 
or 
‘‘(II) 
described 
in 
section 
509(a)(3), and is controlled by an or-
ganization 
described 
in 
section 
509(a)(2), of that Code.’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘that—’’ and inserting 
‘‘that is subject to a pending offer for pur-
chase from an eligible entity and—’’; and 
(ii) by striking clauses (i) and (ii) and 
inserting the following new clauses: 
‘‘(i) has prime, unique, or other pro-
ductive soil; 
‘‘(ii) contains historical or archae-
ological resources; or 
‘‘(iii) the protection of which will fur-
ther a State or local policy consistent with 
the purposes of the program.’’; and 
(B) in subparagraph (B)— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00326
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
327 
(i) in clause (iv), by striking ‘‘and’’ at 
the end; and 
(ii) by striking clause (v) and insert-
ing the following new clauses: 
‘‘(v) forest land that— 
‘‘(I) contributes to the economic 
viability of an agricultural operation; 
or 
‘‘(II) serves as a buffer to protect 
an agricultural operation from devel-
opment; and 
‘‘(vi) land that is incidental to land 
described in clauses (i) through (v), if such 
land is necessary for the efficient adminis-
tration of a conservation easement, as de-
termined by the Secretary.’’. 
(b) FARMLAND PROTECTION.—Section 1238I of the 
Food Security Act of 1985 (16 U.S.C. 3838i) is amended 
to read as follows: 
‘‘SEC. 1238I. FARMLAND PROTECTION PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a farmland protection program under 
which the Secretary shall facilitate and provide funding 
for the purchase of conservation easements or other inter-
ests in eligible land. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00327
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
329 
terest in eligible land, an eligible entity may in-
clude a charitable donation or qualified con-
servation contribution (as defined by section 
170(h) of the Internal Revenue Code of 1986) 
from the private landowner from which the con-
servation easement or other interest in land will 
be purchased. 
‘‘(d) DETERMINATION OF FAIR MARKET VALUE.— 
Effective on the date of enactment of the Food, Conserva-
tion, and Energy Act of 2008, the fair market value of 
the conservation easement or other interest in eligible land 
shall be determined on the basis of an appraisal using an 
industry approved method, selected by the eligible entity 
and approved by the Secretary. 
‘‘(e) BIDDING DOWN PROHIBITED.—If the Secretary 
determines that 2 or more applications for cost-share as-
sistance are comparable in achieving the purpose of the 
program, the Secretary shall not assign a higher priority 
to any 1 of those applications solely on the basis of lesser 
cost to the program. 
‘‘(f) CONDITION ON ASSISTANCE.— 
‘‘(1) CONSERVATION PLAN.—Any highly erod-
ible cropland for which a conservation easement or 
other interest is purchased using cost-share assist-
ance provided under the program shall be subject to 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00329
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
330 
a conservation plan that requires, at the option of 
the Secretary, the conversion of the cropland to less 
intensive uses. 
‘‘(2) CONTINGENT RIGHT OF ENFORCEMENT.— 
The Secretary shall require the inclusion of a contin-
gent right of enforcement for the Secretary in the 
terms of a conservation easement or other interest 
in eligible land that is purchased using cost-share 
assistance provided under the program. 
‘‘(g) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall enter 
into agreements with eligible entities to stipulate the 
terms and conditions under which the eligible entity 
is permitted to use cost-share assistance provided 
under subsection (c). 
‘‘(2) LENGTH OF AGREEMENTS.—An agreement 
under this subsection shall be for a term that is— 
‘‘(A) in the case of an eligible entity cer-
tified under the process described in subsection 
(h), a minimum of five years; and 
‘‘(B) for all other eligible entities, at least 
three, but not more than five years. 
‘‘(3) 
SUBSTITUTION
OF
QUALIFIED 
PROJECTS.—An agreement shall allow, upon mutual 
agreement of the parties, substitution of qualified 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00330
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
331 
projects that are identified at the time of the pro-
posed substitution. 
‘‘(4) MINIMUM
REQUIREMENTS.—An eligible 
entity shall be authorized to use its own terms and 
conditions, as approved by the Secretary, for con-
servation easements and other purchases of interests 
in land, so long as such terms and conditions— 
‘‘(A) are consistent with the purposes of 
the program; 
‘‘(B) permit effective enforcement of the 
conservation purposes of such easements or 
other interests; and 
‘‘(C) include a limit on the impervious sur-
faces to be allowed that is consistent with the 
agricultural activities to be conducted. 
‘‘(5) EFFECT OF VIOLATION.—If a violation oc-
curs of a term or condition of an agreement entered 
into under this subsection— 
‘‘(A) the agreement shall remain in force; 
and 
‘‘(B) the Secretary may require the eligible 
entity to refund all or part of any payments re-
ceived by the entity under the program, with in-
terest on the payments as determined appro-
priate by the Secretary. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00331
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
332 
‘‘(h) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(1) CERTIFICATION PROCESS.—The Secretary 
shall establish a process under which the Secretary 
may— 
‘‘(A) directly certify eligible entities that 
meet established criteria; 
‘‘(B) enter into long-term agreements with 
certified entities, as authorized by subsection 
(g)(2)(A); and 
‘‘(C) accept proposals for cost-share assist-
ance to certified entities for the purchase of 
conservation easements or other interests in eli-
gible land throughout the duration of such 
agreements. 
‘‘(2) CERTIFICATION CRITERIA.—In order to be 
certified, an eligible entity shall demonstrate to the 
Secretary that the entity will maintain, at a min-
imum, for the duration of the agreement— 
‘‘(A) a plan for administering easements 
that is consistent with the purpose of this sub-
chapter; 
‘‘(B) the capacity and resources to monitor 
and enforce conservation easements or other in-
terests in land; and 
‘‘(C) policies and procedures to ensure— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00332
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
333 
‘‘(i) the long-term integrity of con-
servation easements or other interests in 
eligible land; 
‘‘(ii) timely completion of acquisitions 
of easements or other interests in eligible 
land; and 
‘‘(iii) timely and complete evaluation 
and reporting to the Secretary on the use 
of funds provided by the Secretary under 
the program. 
‘‘(3) REVIEW AND REVISION.— 
‘‘(A) REVIEW.—The Secretary shall con-
duct a review of eligible entities certified under 
paragraph (1) every three years to ensure that 
such entities are meeting the criteria estab-
lished under paragraph (2). 
‘‘(B) REVOCATION.—If the Secretary finds 
that the certified entity no longer meets the cri-
teria established under paragraph (2), the Sec-
retary may— 
‘‘(i) allow the certified entity a speci-
fied period of time, at a minimum 180 
days, in which to take such actions as may 
be necessary to meet the criteria; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00333
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
334 
‘‘(ii) revoke the certification of the en-
tity, if after the specified period of time, 
the certified entity does not meet the cri-
teria established in paragraph (2).’’. 
SEC. 2402. FARM VIABILITY PROGRAM. 
Section 1238J(b) of the Food Security Act of 1985 
(16 U.S.C. 3838j(b)) is amended by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
SEC. 2403. GRASSLAND RESERVE PROGRAM. 
Subchapter D of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838n et 
seq.), as redesignated by section 2301(a)(1), is amended 
to read as follows: 
‘‘Subchapter D—Grassland Reserve Program 
‘‘SEC. 1238N. GRASSLAND RESERVE PROGRAM. 
‘‘(a) ESTABLISHMENT
AND PURPOSE.—The Sec-
retary shall establish a grassland reserve program (re-
ferred to in this subchapter as the ‘program’) for the pur-
pose of assisting owners and operators in protecting graz-
ing uses and related conservation values by restoring and 
conserving eligible land through rental contracts, ease-
ments, and restoration agreements. 
‘‘(b) ENROLLMENT OF ACREAGE.— 
‘‘(1) ACREAGE
ENROLLED.—The Secretary 
shall enroll an additional 1,220,000 acres of eligible 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00334
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
335 
land in the program during fiscal years 2009 
through 2012. 
‘‘(2) METHODS
OF
ENROLLMENT.—The Sec-
retary shall enroll eligible land in the program 
through the use of; 
‘‘(A) a 10-year, 15-year, or 20-year rental 
contract; 
‘‘(B) a permanent easement; or 
‘‘(C) in a State that imposes a maximum 
duration for easements, an easement for the 
maximum duration allowed under the law of 
that State. 
‘‘(3) LIMITATION.—Of the total amount of 
funds expended under the program to acquire rental 
contracts and easements described in paragraph (2), 
the Secretary shall use, to the extent practicable— 
‘‘(A) 40 percent for rental contacts; and 
‘‘(B) 60 percent for easements. 
‘‘(4) ENROLLMENT
OF
CONSERVATION
RE-
SERVE LAND.— 
‘‘(A) PRIORITY.—Upon expiration of a 
contract under subchapter B of chapter 1 of 
this subtitle, the Secretary shall give priority 
for enrollment in the program to land pre-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00335
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
336 
viously enrolled in the conservation reserve pro-
gram if— 
‘‘(i) the land is eligible land, as de-
fined in subsection (c); and 
‘‘(ii) the Secretary determines that 
the land is of high ecological value and 
under significant threat of conversion to 
uses other than grazing. 
‘‘(B) MAXIMUM ENROLLMENT.—The num-
ber of acres of land enrolled under the priority 
described in subparagraph (A) in a calendar 
year shall not exceed 10 percent of the total 
number of acres enrolled in the program in that 
calendar year. 
‘‘(c) ELIGIBLE LAND DEFINED.—For purposes of 
the program, the term ‘eligible land’ means private or trib-
al land that— 
‘‘(1) is grassland, land that contains forbs, or 
shrubland 
(including 
improved 
rangeland 
and 
pastureland) for which grazing is the predominant 
use; 
‘‘(2) is located in an area that has been histori-
cally dominated by grassland, forbs, or shrubland, 
and the land— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00336
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
337 
‘‘(A) could provide habitat for animal or 
plant populations of significant ecological value 
if the land— 
‘‘(i) is retained in its current use; or 
‘‘(ii) is restored to a natural condi-
tion; 
‘‘(B) contains historical or archaeological 
resources; or 
‘‘(C) would address issues raised by State, 
regional, and national conservation priorities; or 
‘‘(3) is incidental to land described in para-
graph (1) or (2), if the incidental land is determined 
by the Secretary to be necessary for the efficient ad-
ministration of a rental contract or easement under 
the program. 
‘‘SEC. 1238O. DUTIES OF OWNERS AND OPERATORS. 
‘‘(a) RENTAL CONTRACTS.—To be eligible to enroll 
eligible land in the program under a rental contract, the 
owner or operator of the land shall agree— 
‘‘(1) to comply with the terms of the contract 
and, when applicable, a restoration agreement; 
‘‘(2) to suspend any existing cropland base and 
allotment history for the land under another pro-
gram administered by the Secretary; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00337
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
338 
‘‘(3) to implement a grazing management plan, 
as approved by the Secretary, which may be modi-
fied upon mutual agreement of the parties. 
‘‘(b) EASEMENTS.—To be eligible to enroll eligible 
land in the program through an easement, the owner of 
the land shall agree— 
‘‘(1) to grant an easement to the Secretary or 
to an eligible entity described in section 1238Q; 
‘‘(2) to create and record an appropriate deed 
restriction in accordance with applicable State law to 
reflect the easement; 
‘‘(3) to provide a written statement of consent 
to the easement signed by persons holding a security 
interest or any vested interest in the land; 
‘‘(4) to provide proof of unencumbered title to 
the underlying fee interest in the land that is the 
subject of the easement; 
‘‘(5) to comply with the terms of the easement 
and, when applicable, a restoration agreement; 
‘‘(6) to implement a grazing management plan, 
as approved by the Secretary, which may be modi-
fied upon mutual agreement of the parties; and 
‘‘(7) to eliminate any existing cropland base 
and allotment history for the land under another 
program administered by the Secretary. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00338
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
339 
‘‘(c) RESTORATION AGREEMENTS.— 
‘‘(1) WHEN
APPLICABLE.—To be eligible for 
cost-share assistance to restore eligible land subject 
to a rental contract or an easement under the pro-
gram, the owner or operator of the land shall agree 
to comply with the terms of a restoration agreement. 
‘‘(2) TERMS AND CONDITIONS.—The Secretary 
shall prescribe the terms and conditions of a restora-
tion agreement by which eligible land that is subject 
to a rental contract or easement under the program 
shall be restored. 
‘‘(3) DUTIES.—The restoration agreement shall 
describe the respective duties of the owner or oper-
ator and the Secretary, including the Federal share 
of restoration payments and technical assistance. 
‘‘(d) TERMS
AND
CONDITIONS
APPLICABLE
TO 
RENTAL CONTRACTS AND EASEMENTS.— 
‘‘(1) PERMISSIBLE ACTIVITIES.—The terms and 
conditions of a rental contract or easement under 
the program shall permit— 
‘‘(A) common grazing practices, including 
maintenance and necessary cultural practices, 
on the land in a manner that is consistent with 
maintaining the viability of grassland, forb, and 
shrub species appropriate to that locality; 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00339
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
340 
‘‘(B) haying, mowing, or harvesting for 
seed production, subject to appropriate restric-
tions during the nesting season for birds in the 
local area that are in significant decline or are 
conserved in accordance with Federal or State 
law, as determined by the State Conserva-
tionist; 
‘‘(C) fire presuppression, rehabilitation, 
and construction of fire breaks; and 
‘‘(D) grazing related activities, such as 
fencing and livestock watering. 
‘‘(2) PROHIBITIONS.—The terms and conditions 
of a rental contract or easement under the program 
shall prohibit— 
‘‘(A) the production of crops (other than 
hay), fruit trees, vineyards, or any other agri-
cultural commodity that is inconsistent with 
maintaining grazing land; and 
‘‘(B) except as permitted under a restora-
tion plan, the conduct of any other activity that 
would be inconsistent with maintaining grazing 
land enrolled in the program. 
‘‘(3) ADDITIONAL TERMS AND CONDITIONS.—A 
rental contract or easement under the program shall 
include such additional provisions as the Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00340
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
341 
determines are appropriate to carry out or facilitate 
the purposes and administration of the program. 
‘‘(e) VIOLATIONS.—On a violation of the terms or 
conditions of a rental contract, easement, or restoration 
agreement entered into under this section— 
‘‘(1) the contract or easement shall remain in 
force; and 
‘‘(2) the Secretary may require the owner or 
operator to refund all or part of any payments re-
ceived under the program, with interest on the pay-
ments as determined appropriate by the Secretary. 
‘‘SEC. 1238P. DUTIES OF SECRETARY. 
‘‘(a) EVALUATION
AND
RANKING
OF
APPLICA-
TIONS.— 
‘‘(1) CRITERIA.—The Secretary shall establish 
criteria to evaluate and rank applications for rental 
contracts and easements under the program . 
‘‘(2) CONSIDERATIONS.—In establishing the cri-
teria, the Secretary shall emphasize support for— 
‘‘(A) grazing operations; 
‘‘(B) plant and animal biodiversity; and 
‘‘(C) grassland, land that contains forbs, 
and shrubland under the greatest threat of con-
version to uses other than grazing. 
‘‘(b) PAYMENTS.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00341
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
342 
‘‘(1) IN GENERAL.—In return for the execution 
of a rental contract or the granting of an easement 
by an owner or operator under the program, the 
Secretary shall— 
‘‘(A) make rental contract or easement 
payments to the owner or operator in accord-
ance with paragraphs (2) and (3); and 
‘‘(B) make payments to the owner or oper-
ator under a restoration agreement for the Fed-
eral share of the cost of restoration in accord-
ance with paragraph (4). 
‘‘(2) RENTAL CONTRACT PAYMENTS.— 
‘‘(A) PERCENTAGE OF GRAZING VALUE OF 
LAND.—In return for the execution of a rental 
contract by an owner or operator under the pro-
gram, the Secretary shall make annual pay-
ments during the term of the contract in an 
amount, subject to subparagraph (B), that is 
not more than 75 percent of the grazing value 
of the land covered by the contract. 
‘‘(B) PAYMENT
LIMITATION.—Payments 
made under 1 or more rental contracts to a per-
son or legal entity, directly or indirectly, may 
not exceed, in the aggregate, $50,000 per year. 
‘‘(3) EASEMENT PAYMENTS.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00342
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
343 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in return for the granting of an 
easement by an owner under the program, the 
Secretary shall make easement payments in an 
amount not to exceed the fair market value of 
the land less the grazing value of the land en-
cumbered by the easement. 
‘‘(B) METHOD
FOR
DETERMINATION
OF 
COMPENSATION.—In making a determination 
under subparagraph (A), the Secretary shall 
pay as compensation for a easement acquired 
under the program the lowest of— 
‘‘(i) the fair market value of the land 
encumbered by the easement, as deter-
mined by the Secretary, using— 
‘‘(I) the Uniform Standards of 
Professional Appraisal Practices; or 
‘‘(II) an area-wide market anal-
ysis or survey; 
‘‘(ii) the amount corresponding to a 
geographical cap, as determined by the 
Secretary in regulations; or 
‘‘(iii) the offer made by the land-
owner. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00343
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
344 
‘‘(C) 
SCHEDULE.—Easement 
payments 
may be provided in up to 10 annual payments 
of equal or unequal amount, as agreed to by the 
Secretary and the owner. 
‘‘(4) RESTORATION AGREEMENT PAYMENTS.— 
‘‘(A) 
FEDERAL
SHARE
OF
RESTORA-
TION.—The Secretary shall make payments to 
an owner or operator under a restoration agree-
ment of not more than 50 percent of the costs 
of carrying out measures and practices nec-
essary to restore functions and values of that 
land. 
‘‘(B) PAYMENT
LIMITATION.—Payments 
made under 1 or more restoration agreements 
to a person or legal entity, directly or indirectly, 
may not exceed, in the aggregate, $50,000 per 
year. 
‘‘(5) PAYMENTS TO OTHERS.—If an owner or 
operator who is entitled to a payment under the pro-
gram dies, becomes incompetent, is otherwise unable 
to receive the payment, or is succeeded by another 
person who renders or completes the required per-
formance, the Secretary shall make the payment, in 
accordance with regulations promulgated by the Sec-
retary and without regard to any other provision of 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00344
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
345 
law, in such manner as the Secretary determines is 
fair and reasonable in light of all the circumstances. 
‘‘SEC. 1238Q. DELEGATION OF DUTY. 
‘‘(a) AUTHORITY
TO DELEGATE.—The Secretary 
may delegate a duty under the program— 
‘‘(1) by transferring title of ownership to an 
easement to an eligible entity to hold and enforce; or 
‘‘(2) by entering into a cooperative agreement 
with an eligible entity for the eligible entity to own, 
write, and enforce an easement. 
‘‘(b) ELIGIBLE ENTITY DEFINED.—In this section, 
the term ‘eligible entity’ means— 
‘‘(1) an agency of State or local government or 
an Indian tribe; or 
‘‘(2) an organization that— 
‘‘(A) is organized for, and at all times 
since the formation of the organization has 
been operated principally for, one or more of 
the conservation purposes specified in clause (i), 
(ii), (iii), or (iv) of section 170(h)(4)(A) of the 
Internal Revenue Code of 1986; 
‘‘(B) is an organization described in sec-
tion 501(c)(3) of that Code that is exempt from 
taxation under section 501(a) of that Code; and 
‘‘(C) is described in— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00345
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
346 
‘‘(i) paragraph (1) or (2) of section 
509(a) of that Code; or 
‘‘(ii) in section 509(a)(3) of that 
Code, and is controlled by an organization 
described in section 509(a)(2) of that 
Code. 
‘‘(c) TRANSFER OF TITLE OF OWNERSHIP.— 
‘‘(1) TRANSFER.—The Secretary may transfer 
title of ownership to an easement to an eligible enti-
ty to hold and enforce, in lieu of the Secretary, sub-
ject to the right of the Secretary to conduct periodic 
inspections and enforce the easement, if— 
‘‘(A) the Secretary determines that the 
transfer will promote protection of grassland, 
land that contains forbs, or shrubland; 
‘‘(B) the owner authorizes the eligible enti-
ty to hold or enforce the easement; and 
‘‘(C) the eligible entity agrees to assume 
the costs incurred in administering and enforc-
ing the easement, including the costs of restora-
tion or rehabilitation of the land as specified by 
the owner and the eligible entity. 
‘‘(2) APPLICATION.—An eligible entity that 
seeks to hold and enforce an easement shall apply to 
the Secretary for approval. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00346
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
347 
‘‘(3) APPROVAL
BY
SECRETARY.—The Sec-
retary may approve an application described in para-
graph (2) if the eligible entity— 
‘‘(A) has the relevant experience necessary, 
as appropriate for the application, to administer 
an easement on grassland, land that contains 
forbs, or shrubland; 
‘‘(B) has a charter that describes a com-
mitment to conserving ranchland, agricultural 
land, or grassland for grazing and conservation 
purposes; and 
‘‘(C) has the resources necessary to effec-
tuate the purposes of the charter. 
‘‘(d) COOPERATIVE AGREEMENTS.— 
‘‘(1) AUTHORIZED; TERMS AND CONDITIONS.— 
The Secretary shall establish the terms and condi-
tions of a cooperative agreement under which an eli-
gible entity shall use funds provided by the Sec-
retary to own, write, and enforce an easement, in 
lieu of the Secretary. 
‘‘(2) MINIMUM
REQUIREMENTS.—At a min-
imum, the cooperative agreement shall— 
‘‘(A) specify the qualification of the eligible 
entity to carry out the entity’s responsibilities 
under the program, including acquisition, moni-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00347
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
348 
toring, enforcement, and implementation of 
management policies and procedures that en-
sure the long-term integrity of the easement 
protections; 
‘‘(B) require the eligible entity to assume 
the costs incurred in administering and enforc-
ing the easement, including the costs of restora-
tion or rehabilitation of the land as specified by 
the owner and the eligible entity; 
‘‘(C) specify the right of the Secretary to 
conduct periodic inspections to verify the eligi-
ble entity’s enforcement of the easement; 
‘‘(D) subject to subparagraph (E), identify 
a specific project or a range of projects to be 
funded under the agreement; 
‘‘(E) allow, upon mutual agreement of the 
parties, substitution of qualified projects that 
are identified at the time of substitution; 
‘‘(F) specify the manner in which the eligi-
ble entity will evaluate and report the use of 
funds to the Secretary; 
‘‘(G) allow the eligible entity flexibility to 
develop and use terms and conditions for ease-
ments, if the Secretary finds the terms and con-
ditions consistent with the purposes of the pro-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00348
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
349 
gram and adequate to enable effective enforce-
ment of the easements; 
‘‘(H) if applicable, allow an eligible entity 
to include a charitable donation or qualified 
conservation contribution (as defined by section 
170(h) of the Internal Revenue Code of 1986) 
from the landowner from which the easement 
will be purchased as part of the entity’s share 
of the cost to purchase an easement; and 
‘‘(I) provide for a schedule of payments to 
an eligible entity, as agreed to by the Secretary 
and the eligible entity. 
‘‘(3) COST SHARING.— 
‘‘(A) IN GENERAL.—As part of a coopera-
tive agreement with an eligible entity under this 
subsection, the Secretary may provide a share 
of the purchase price of an easement under the 
program. 
‘‘(B) MINIMUM SHARE BY ELIGIBLE ENTI-
TY.—The eligible entity shall be required to 
provide a share of the purchase price at least 
equivalent to that provided by the Secretary. 
‘‘(C) PRIORITY.—The Secretary may ac-
cord a higher priority to proposals from eligible 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00349
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
350 
entities that leverage a greater share of the 
purchase price of the easement. 
‘‘(4) VIOLATION.—If an eligible entity violates 
the terms or conditions of a cooperative agreement 
entered into under this subsection— 
‘‘(A) the cooperative agreement shall re-
main in force; and 
‘‘(B) the Secretary may require the eligible 
entity to refund all or part of any payments re-
ceived by the eligible entity under the program, 
with interest on the payments as determined 
appropriate by the Secretary. 
‘‘(e) PROTECTION
OF
FEDERAL
INVESTMENT.— 
When delegating a duty under this section, the Secretary 
shall ensure that the terms of an easement include a con-
tingent right of enforcement for the Department.’’. 
Subtitle F—Environmental Quality 
Incentives Program 
SEC. 2501. PURPOSES OF ENVIRONMENTAL QUALITY IN-
CENTIVES PROGRAM. 
(a) REVISED PURPOSES.—Section 1240 of the Food 
Security Act of 1985 (16 U.S.C. 3839aa) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting ‘‘, forest management,’’ after ‘‘agricultural 
production’’; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00350
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
351 
(2) by striking paragraphs (3) and (4) and in-
serting the following new paragraphs: 
‘‘(3) providing flexible assistance to producers 
to install and maintain conservation practices that 
sustain food and fiber production while— 
‘‘(A) enhancing soil, water, and related 
natural resources, including grazing land, 
forestland, wetland, and wildlife; and 
‘‘(B) conserving energy; 
‘‘(4) assisting producers to make beneficial, cost 
effective changes to production systems (including 
conservation practices related to organic production), 
grazing management, fuels management, forest 
management, nutrient management associated with 
livestock, pest or irrigation management, or other 
practices on agricultural and forested land; and’’. 
(b) TECHNICAL CORRECTION.—The Food Security 
Act of 1985 is amended by inserting immediately before 
section 1240 (16 U.S.C. 3839aa) the following: 
‘‘CHAPTER 4—ENVIRONMENTAL QUALITY 
INCENTIVES PROGRAM’’. 
SEC. 2502. DEFINITIONS. 
Section 1240A of the Food Security Act of 1985 (16 
U.S.C. 3839aa–1) is amended to read as follows: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00351
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
352 
‘‘SEC. 1240A. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means land on which agricultural com-
modities, livestock, or forest-related products 
are produced. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes the following: 
‘‘(i) Cropland. 
‘‘(ii) Grassland. 
‘‘(iii) Rangeland. 
‘‘(iv) Pasture land. 
‘‘(v) Nonindustrial private forest land. 
‘‘(vi) Other agricultural land (includ-
ing cropped woodland, marshes, and agri-
cultural land used for the production of 
livestock) on which resource concerns re-
lated to agricultural production could be 
addressed through a contract under the 
program, as determined by the Secretary. 
‘‘(2) NATIONAL ORGANIC PROGRAM.—The term 
‘national organic program’ means the national or-
ganic program established under the Organic Foods 
Production Act of 1990 (7 U.S.C. 6501 et. seq.). 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00352
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
353 
‘‘(3) ORGANIC SYSTEM PLAN.—The term ‘or-
ganic system plan’ means an organic plan approved 
under the national organic program. 
‘‘(4) PAYMENT.—The term ‘payment’ means fi-
nancial assistance provided to a producer for per-
forming practices under this chapter, including com-
pensation for— 
‘‘(A) incurred costs associated with plan-
ning, design, materials, equipment, installation, 
labor, management, maintenance, or training; 
and 
‘‘(B) income forgone by the producer. 
‘‘(5) PRACTICE.—The term ‘practice’ means 1 
or more improvements and conservation activities 
that are consistent with the purposes of the program 
under this chapter, as determined by the Secretary, 
including— 
‘‘(A) improvements to eligible land of the 
producer, including— 
‘‘(i) structural practices; 
‘‘(ii) land management practices; 
‘‘(iii) vegetative practices; 
‘‘(iv) forest management; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00353
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
354 
‘‘(v) other practices that the Secretary 
determines would further the purposes of 
the program; and 
‘‘(B) conservation activities involving the 
development of plans appropriate for the eligi-
ble land of the producer, including— 
‘‘(i) comprehensive nutrient manage-
ment planning; and 
‘‘(ii) other plans that the Secretary 
determines would further the purposes of 
the program under this chapter. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the environmental quality incentives program estab-
lished by this chapter.’’. 
SEC. 2503. ESTABLISHMENT AND ADMINISTRATION OF EN-
VIRONMENTAL QUALITY INCENTIVES PRO-
GRAM. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended to read as follows: 
‘‘SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION. 
‘‘(a) ESTABLISHMENT.—During each of the 2002 
through 2012 fiscal years, the Secretary shall provide pay-
ments to producers that enter into contracts with the Sec-
retary under the program. 
‘‘(b) PRACTICES AND TERM.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00354
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
355 
‘‘(1) PRACTICES.—A contract under the pro-
gram may apply to the performance of one or more 
practices. 
‘‘(2) TERM.—A contract under the program 
shall have a term that— 
‘‘(A) at a minimum, is equal to the period 
beginning on the date on which the contract is 
entered into and ending on the date that is one 
year after the date on which all practices under 
the contract have been implemented; but 
‘‘(B) not to exceed 10 years. 
‘‘(c) BIDDING DOWN.—If the Secretary determines 
that the environmental values of two or more applications 
for payments are comparable, the Secretary shall not as-
sign a higher priority to the application only because it 
would present the least cost to the program. 
‘‘(d) PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—Payments 
are provided to a producer to implement one or more 
practices under the program. 
‘‘(2) LIMITATION ON PAYMENT AMOUNTS.—A 
payment to a producer for performing a practice 
may not exceed, as determined by the Secretary— 
‘‘(A) 75 percent of the costs associated 
with planning, design, materials, equipment, in-
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00355
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
356 
stallation, labor, management, maintenance, or 
training; 
‘‘(B) 100 percent of income foregone by 
the producer; or 
‘‘(C) in the case of a practice consisting of 
elements covered under subparagraphs (A) and 
(B)— 
‘‘(i) 75 percent of the costs incurred 
for those elements covered under subpara-
graph (A); and 
‘‘(ii) 100 percent of income foregone 
for those elements covered under subpara-
graph (B). 
‘‘(3) SPECIAL RULE INVOLVING PAYMENTS FOR 
FOREGONE
INCOME.—In determining the amount 
and rate of payments under paragraph (2)(B), the 
Secretary may accord great significance to a practice 
that, as determined by the Secretary, promotes— 
‘‘(A) residue management; 
‘‘(B) nutrient management; 
‘‘(C) air quality management; 
‘‘(D) invasive species management; 
‘‘(E) pollinator habitat; 
‘‘(F) animal carcass management tech-
nology; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00356
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
357 
‘‘(G) pest management. 
‘‘(4) INCREASED PAYMENTS FOR CERTAIN PRO-
DUCERS.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a producer that is a 
limited resource, socially disadvantaged farmer 
or rancher or a beginning farmer or rancher, 
the Secretary shall increase the amount that 
would otherwise be provided to a producer 
under this subsection— 
‘‘(i) to not more than 90 percent of 
the costs associated with planning, design, 
materials, equipment, installation, labor, 
management, maintenance, or training; 
and 
‘‘(ii) to not less than 25 percent above 
the otherwise applicable rate. 
‘‘(B) ADVANCE
PAYMENTS.—Not more 
than 30 percent of the amount determined 
under subparagraph (A) may be provided in ad-
vance for the purpose of purchasing materials 
or contracting. 
‘‘(5) FINANCIAL
ASSISTANCE
FROM
OTHER 
SOURCES.—Except as provided in paragraph (6), 
any payments received by a producer from a State 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00357
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
358 
or private organization or person for the implemen-
tation of one or more practices on eligible land of 
the producer shall be in addition to the payments 
provided to the producer under this subsection. 
‘‘(6) OTHER PAYMENTS.—A producer shall not 
be eligible for payments for practices on eligible land 
under the program if the producer receives payments 
or other benefits for the same practice on the same 
land under another program under this subtitle. 
‘‘(e) MODIFICATION
OR
TERMINATION
OF
CON-
TRACTS.— 
‘‘(1) VOLUNTARY
MODIFICATION
OR
TERMI-
NATION.—The Secretary may modify or terminate a 
contract entered into with a producer under the pro-
gram if— 
‘‘(A) the producer agrees to the modifica-
tion or termination; and 
‘‘(B) the Secretary determines that the 
modification or termination is in the public in-
terest. 
‘‘(2) INVOLUNTARY
TERMINATION.—The Sec-
retary may terminate a contract under the program 
if the Secretary determines that the producer vio-
lated the contract. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00358
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
359 
‘‘(f) ALLOCATION OF FUNDING.—For each of fiscal 
years 2002 through 2012, 60 percent of the funds made 
available for payments under the program shall be tar-
geted at practices relating to livestock production. 
‘‘(g) FUNDING FOR FEDERALLY RECOGNIZED NA-
TIVE AMERICAN INDIAN TRIBES AND ALASKA NATIVE 
CORPORATIONS.—The Secretary may enter into alter-
native funding arrangements with federally recognized 
Native American Indian Tribes and Alaska Native Cor-
porations (including their affiliated membership organiza-
tions) if the Secretary determines that the goals and objec-
tives of the program will be met by such arrangements, 
and that statutory limitations regarding contracts with in-
dividual producers will not be exceeded by any Tribal or 
Native Corporation member. 
‘‘(h) WATER CONSERVATION OR IRRIGATION EFFI-
CIENCY PRACTICE.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary may provide payments under this subsection 
to a producer for a water conservation or irrigation 
practice. 
‘‘(2) PRIORITY.—In providing payments to a 
producer for a water conservation or irrigation prac-
tice, the Secretary shall give priority to applications 
in which— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00359
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
360 
‘‘(A) consistent with the law of the State 
in which the eligible land of the producer is lo-
cated, there is a reduction in water use in the 
operation of the producer; or 
‘‘(B) the producer agrees not to use any 
associated water savings to bring new land, 
other than incidental land needed for efficient 
operations, under irrigated production, unless 
the producer is participating in a watershed- 
wide project that will effectively conserve water, 
as determined by the Secretary. 
‘‘(i) PAYMENTS FOR CONSERVATION PRACTICES RE-
LATED TO ORGANIC PRODUCTION.— 
‘‘(1) PAYMENTS AUTHORIZED.—The Secretary 
shall provide payments under this subsection for 
conservation practices, on some or all of the oper-
ations of a producer, related— 
‘‘(A) to organic production; and 
‘‘(B) to the transition to organic produc-
tion. 
‘‘(2) ELIGIBILITY REQUIREMENTS.—As a condi-
tion for receiving payments under this subsection, a 
producer shall agree— 
‘‘(A) to develop and carry out an organic 
system plan; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00360
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
361 
‘‘(B) to develop and implement conserva-
tion practices for certified organic production 
that are consistent with an organic system plan 
and the purposes of this chapter. 
‘‘(3) PAYMENT LIMITATIONS.—Payments under 
this subsection to a person or legal entity, directly 
or indirectly, may not exceed, in the aggregate, 
$20,000 per year or $80,000 during any 6-year pe-
riod. In applying these limitations, the Secretary 
shall not take into account payments received for 
technical assistance. 
‘‘(4) EXCLUSION
OF
CERTAIN
ORGANIC
CER-
TIFICATION
COSTS.—Payments may not be made 
under this subsection to cover the costs associated 
with organic certification that are eligible for cost- 
share payments under section 10606 of the Farm 
Security and Rural Investment Act of 2002 (7 
U.S.C. 6523). 
‘‘(5) TERMINATION OF CONTRACTS.—The Sec-
retary may cancel or otherwise nullify a contract to 
provide payments under this subsection if the Sec-
retary determines that the producer— 
‘‘(A) is not pursuing organic certification; 
or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00361
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
362 
‘‘(B) is not in compliance with the Organic 
Foods Production Act of 1990 (7 U.S.C. 6501 
et seq).’’. 
SEC. 2504. EVALUATION OF APPLICATIONS. 
Section 1240C of the Food Security Act of 1985 (16 
U.S.C. 3839aa–3) is amended to read as follows: 
‘‘SEC. 1240C. EVALUATION OF APPLICATIONS. 
‘‘(a) EVALUATION CRITERIA.—The Secretary shall 
develop criteria for evaluating applications that will ensure 
that national, State, and local conservation priorities are 
effectively addressed. 
‘‘(b) PRIORITIZATION OF APPLICATIONS.—In evalu-
ating applications under this chapter, the Secretary shall 
prioritize applications— 
‘‘(1) based on their overall level of cost-effec-
tiveness to ensure that the conservation practices 
and approaches proposed are the most efficient 
means of achieving the anticipated environmental 
benefits of the project; 
‘‘(2) based on how effectively and comprehen-
sively the project addresses the designated resource 
concern or resource concerns; 
‘‘(3) that best fulfill the purpose of the environ-
mental quality incentives program specified in sec-
tion 1240(1); and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00362
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
363 
‘‘(4) that improve conservation practices or sys-
tems in place on the operation at the time the con-
tract offer is accepted or that will complete a con-
servation system. 
‘‘(c) GROUPING OF APPLICATIONS.—To the greatest 
extent practicable, the Secretary shall group applications 
of similar crop or livestock operations for evaluation pur-
poses or otherwise evaluate applications relative to other 
applications for similar farming operations.’’. 
SEC. 2505. DUTIES OF PRODUCERS UNDER ENVIRON-
MENTAL QUALITY INCENTIVES PROGRAM. 
Section 1240D of the Food Security Act of 1985 (16 
U.S.C. 3839aa–4) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘technical assistance, cost-share payments, 
or incentive’’; 
(2) in paragraph (2), by striking ‘‘farm or 
ranch’’ and inserting ‘‘farm, ranch, or forest land’’; 
and 
(3) in paragraph (4), by striking ‘‘cost-share 
payments and incentive’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00363
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
364 
SEC. 2506. ENVIRONMENTAL QUALITY INCENTIVES PRO-
GRAM PLAN. 
(a) PLAN OF OPERATIONS.—Section 1240E(a) of the 
Food Security Act of 1985 (16 U.S.C. 3839aa–5(a)) is 
amended— 
(1) in the subsection heading, by striking ‘‘IN 
GENERAL’’ and inserting ‘‘PLAN OF OPERATIONS’’; 
(2) in matter preceding paragraph (1), by strik-
ing ‘‘cost-share payments or incentive’’; 
(3) in paragraph (2), by striking ‘‘and’’ after 
the semicolon at the end; 
(4) in paragraph (3), by striking the period at 
the end and inserting ‘‘; and’’; and 
(5) by adding at the end the following new 
paragraph: 
‘‘(4) in the case of forest land, is consistent 
with the provisions of a forest management plan 
that is approved by the Secretary, which may in-
clude— 
‘‘(A) a forest stewardship plan described in 
section 5 of the Cooperative Forestry Assist-
ance Act of 1978 (16 U.S.C. 2103a); 
‘‘(B) another practice plan approved by the 
State forester; or 
‘‘(C) another plan determined appropriate 
by the Secretary.’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00364
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
365 
(b) AVOIDANCE OF DUPLICATION.—Subsection (b) of 
section 1240E of the Food Security Act of 1985 (16 
U.S.C. 3839aa–5) is amended to read as follows: 
‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary 
shall— 
‘‘(1) consider a plan developed in order to ac-
quire a permit under a water or air quality regu-
latory program as the equivalent of a plan of oper-
ations under subsection (a), if the plan contains ele-
ments equivalent to those elements required by a 
plan of operations; and 
‘‘(2) to the maximum extent practicable, elimi-
nate duplication of planning activities under the pro-
gram under this chapter and comparable conserva-
tion programs.’’. 
SEC. 2507. DUTIES OF THE SECRETARY. 
Section 1240F(1) of the Food Security Act of 1985 
(16 U.S.C. 3839aa–6(1)) is amended by striking ‘‘cost- 
share payments or incentive’’. 
SEC. 2508. LIMITATION ON ENVIRONMENTAL QUALITY IN-
CENTIVES PROGRAM PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 
U.S.C. 3839aa–7) is amended— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00365
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
366 
(1) by striking ‘‘An individual or entity’’ and 
inserting ‘‘(a) LIMITATION.—Subject to subsection 
(b), a person or legal entity’’; 
(2) by striking ‘‘$450,000’’ and inserting 
‘‘$300,000’’; 
(3) by striking ‘‘the individual’’ both places it 
appears and inserting ‘‘the person’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(b) WAIVER AUTHORITY.—In the case of contracts 
under this chapter for projects of special environmental 
significance (including projects involving methane digest-
ers), as determined by the Secretary, the Secretary may— 
‘‘(1) waive the limitation otherwise applicable 
under subsection (a); and 
‘‘(2) raise the limitation to not more than 
$450,000 during any six-year period.’’. 
SEC. 2509. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended to read as follows: 
‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS AND 
PAYMENTS. 
‘‘(a) COMPETITIVE GRANTS FOR INNOVATIVE CON-
SERVATION APPROACHES.— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00366
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
367 
‘‘(1) GRANTS.—Out of the funds made available 
to carry out this chapter, the Secretary may pay the 
cost of competitive grants that are intended to stim-
ulate innovative approaches to leveraging the Fed-
eral investment in environmental enhancement and 
protection, in conjunction with agricultural produc-
tion or forest resource management, through the 
program. 
‘‘(2) USE.—The Secretary may provide grants 
under this subsection to governmental and non-gov-
ernmental organizations and persons, on a competi-
tive basis, to carry out projects that— 
‘‘(A) involve producers who are eligible for 
payments or technical assistance under the pro-
gram; 
‘‘(B) leverage Federal funds made avail-
able to carry out the program under this chap-
ter with matching funds provided by State and 
local governments and private organizations to 
promote environmental enhancement and pro-
tection in conjunction with agricultural produc-
tion; 
‘‘(C) ensure efficient and effective transfer 
of innovative technologies and approaches dem-
onstrated through projects that receive funding 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00367
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
368 
under this section, such as market systems for 
pollution reduction and practices for the storage 
of carbon in soil; and 
‘‘(D) provide environmental and resource 
conservation benefits through increased partici-
pation by producers of specialty crops. 
‘‘(b) AIR QUALITY CONCERNS FROM AGRICULTURAL 
OPERATIONS.— 
‘‘(1) IMPLEMENTATION ASSISTANCE.—The Sec-
retary shall provide payments under this subsection 
to producers to implement practices to address air 
quality concerns from agricultural operations and to 
meet Federal, State, and local regulatory require-
ments. The funds shall be made available on the 
basis of air quality concerns in a State and shall be 
used to provide payments to producers that are cost 
effective and reflect innovative technologies. 
‘‘(2) FUNDING.—Of the funds made available 
to carry out this chapter, the Secretary shall carry 
out this subsection using $37,500,000 for each of 
fiscal years 2009 through 2012.’’. 
SEC. 2510. AGRICULTURAL WATER ENHANCEMENT PRO-
GRAM. 
Section 1240I of the Food Security Act of 1985 (16 
U.S.C. 3839aa–9) is amended to read as follows: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00368
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
369 
‘‘SEC. 1240I. AGRICULTURAL WATER ENHANCEMENT PRO-
GRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) AGRICULTURAL
WATER
ENHANCEMENT 
ACTIVITY.—The term ‘agricultural water enhance-
ment activity’ includes the following activities car-
ried out with respect to agricultural land: 
‘‘(A) Water quality or water conservation 
plan development, including resource condition 
assessment and modeling. 
‘‘(B) Water conservation restoration or en-
hancement projects, including conversion to the 
production of less water-intensive agricultural 
commodities or dryland farming. 
‘‘(C) Water quality or quantity restoration 
or enhancement projects. 
‘‘(D) Irrigation system improvement and 
irrigation efficiency enhancement. 
‘‘(E) Activities designed to mitigate the ef-
fects of drought. 
‘‘(F) Related activities that the Secretary 
determines will help achieve water quality or 
water conservation benefits on agricultural 
land. 
‘‘(2) PARTNER.—The term ‘partner’ means an 
entity that enters into a partnership agreement with 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00369
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
370 
the Secretary to carry out agricultural water en-
hancement activities on a regional basis, including— 
‘‘(A) an agricultural or silvicultural pro-
ducer association or other group of such pro-
ducers; 
‘‘(B) a State or unit of local government; 
or 
‘‘(C) a federally recognized Indian tribe. 
‘‘(3) PARTNERSHIP
AGREEMENT.—The term 
‘partnership agreement’ means an agreement be-
tween the Secretary and a partner. 
‘‘(4) PROGRAM.—The term ‘program’ means 
the agricultural water enhancement program estab-
lished under subsection (b). 
‘‘(b) ESTABLISHMENT OF PROGRAM.—Beginning in 
fiscal year 2009, the Secretary shall carry out, in accord-
ance with this section and using such procedures as the 
Secretary determines to be appropriate, an agricultural 
water enhancement program as part of the environmental 
quality incentives program to promote ground and surface 
water conservation and improve water quality on agricul-
tural lands— 
‘‘(1) by entering into contracts with, and mak-
ing payments to, producers to carry out agricultural 
water enhancement activities; or 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00370
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
371 
‘‘(2) by entering into partnership agreements 
with partners, in accordance with subsection (c), on 
a regional level to benefit working agricultural land. 
‘‘(c) PARTNERSHIP AGREEMENTS.— 
‘‘(1) AGREEMENTS
AUTHORIZED.—The Sec-
retary may enter into partnership agreements to 
meet the objectives of the program described in sub-
section (b). 
‘‘(2) APPLICATIONS.—An application to the 
Secretary to enter into a partnership agreement 
under paragraph (1) shall include the following: 
‘‘(A) A description of the geographical area 
to be covered by the partnership agreement. 
‘‘(B) A description of the agricultural 
water quality or water conservation issues to be 
addressed by the partnership agreement. 
‘‘(C) A description of the agricultural 
water enhancement objectives to be achieved 
through the partnership. 
‘‘(D) A description of the partners collabo-
rating to achieve the project objectives and the 
roles, responsibilities, and capabilities of each 
partner. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00371
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
372 
‘‘(E) A description of the program re-
sources, including payments the Secretary is re-
quested to make. 
‘‘(F) Such other such elements as the Sec-
retary considers necessary to adequately evalu-
ate and competitively select applications for 
partnership agreements. 
‘‘(3) DUTIES OF PARTNERS.—A partner under 
a partnership agreement shall— 
‘‘(A) identify producers participating in the 
project and act on their behalf in applying for 
the program; 
‘‘(B) leverage funds provided by the Sec-
retary with additional funds to help achieve 
project objectives; 
‘‘(C) conduct monitoring and evaluation of 
project effects; and 
‘‘(D) at the conclusion of the project, re-
port to the Secretary on project results. 
‘‘(d) AGRICULTURAL WATER ENHANCEMENT ACTIVI-
TIES BY PRODUCERS.—The Secretary shall select agricul-
tural water enhancement activities proposed by producers 
according to applicable requirements under the environ-
mental quality incentives program. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00372
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
373 
‘‘(e) AGRICULTURAL WATER ENHANCEMENT ACTIVI-
TIES BY PARTNERS.— 
‘‘(1) COMPETITIVE
PROCESS.—The Secretary 
shall conduct a competitive process to select part-
ners. In carrying out the process, the Secretary shall 
make public the criteria used in evaluating applica-
tions. 
‘‘(2) AUTHORITY TO GIVE PRIORITY TO CER-
TAIN PROPOSALS.—The Secretary may give a higher 
priority to proposals from partners that— 
‘‘(A) include high percentages of agricul-
tural land and producers in a region or other 
appropriate area; 
‘‘(B) result in high levels of applied agri-
cultural water quality and water conservation 
activities; 
‘‘(C) significantly enhance agricultural ac-
tivity; 
‘‘(D) allow for monitoring and evaluation; 
and 
‘‘(E) assist producers in meeting a regu-
latory requirement that reduces the economic 
scope of the producer’s operation. 
‘‘(3) PRIORITY
TO
PROPOSALS
FROM
STATES 
WITH WATER QUANTITY CONCERNS.—The Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00373
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
374 
shall give a higher priority to proposals from part-
ners that— 
‘‘(A) include the conversion of agricultural 
land from irrigated farming to dryland farming; 
‘‘(B) leverage Federal funds provided 
under the program with funds provided by part-
ners; and 
‘‘(C) assist producers in States with water 
quantity concerns, as determined by the Sec-
retary. 
‘‘(4) ADMINISTRATION.—In carrying out this 
subsection, the Secretary shall— 
‘‘(A) accept qualified applications— 
‘‘(i) directly from partners applying 
on behalf of producers; or 
‘‘(ii) from producers applying through 
a partner as part of a regional agricultural 
water enhancement project; and 
‘‘(B) ensure that resources made available 
for regional agricultural water enhancement ac-
tivities are delivered in accordance with applica-
ble program rules. 
‘‘(f) 
AREAS
EXPERIENCING
EXCEPTIONAL 
DROUGHT.—Notwithstanding the purposes described in 
section 1240, the Secretary shall consider as an eligible 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00374
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
375 
agricultural water enhancement activity the use of a water 
impoundment to capture surface water runoff on agricul-
tural land if the agricultural water enhancement activity— 
‘‘(1) is located in an area that is experiencing 
or has experienced exceptional drought conditions 
during the previous two calendar years; and 
‘‘(2) will capture surface water runoff through 
the construction, improvement, or maintenance of ir-
rigation ponds or small, on-farm reservoirs. 
‘‘(g) WAIVER AUTHORITY.—To assist in the imple-
mentation of agricultural water enhancement activities 
under the program, the Secretary shall waive the applica-
bility of the limitation in section 1001D(b)(2)(B) of this 
Act for participating producers if the Secretary determines 
that the waiver is necessary to fulfill the objectives of the 
program. 
‘‘(h) PAYMENTS UNDER PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
appropriate payments to producers participating in 
agricultural water enhancement activities in an 
amount determined by the secretary to be necessary 
to achieve the purposes of the program described in 
subsection (b). 
‘‘(2) PAYMENTS
TO
PRODUCERS
IN
STATES 
WITH WATER QUANTITY CONCERNS.—The Secretary 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00375
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
376 
shall provide payments for a period of five years to 
producers participating in agricultural water en-
hancement activities under proposals described in 
subsection (e)(3) in an amount sufficient to encour-
age producers to convert from irrigated farming to 
dryland farming. 
‘‘(i) CONSISTENCY WITH STATE LAW.—Any agricul-
tural water enhancement activity conducted under the pro-
gram shall be conducted in a manner consistent with State 
water law. 
‘‘(j) FUNDING.— 
‘‘(1) AVAILABILITY OF FUNDS.—In addition to 
funds made available to carry out this chapter under 
section 1241(a), the Secretary shall carry out the 
program using, of the funds of the Commodity Cred-
it Corporation— 
‘‘(A) $73,000,000 for each of fiscal years 
2009 and 2010; 
‘‘(B) $74,000,000 for fiscal year 2011; and 
‘‘(C) $60,000,000 for fiscal year 2012 and 
each fiscal year thereafter. 
‘‘(2) LIMITATION
ON
ADMINISTRATIVE
EX-
PENSES.—None of the funds made available for re-
gional agricultural water conservation activities 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00376
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
377 
under the program may be used to pay for the ad-
ministrative expenses of partners.’’. 
Subtitle 
G—Other 
Conservation 
Programs of the Food Security 
Act of 1985 
SEC. 2601. CONSERVATION OF PRIVATE GRAZING LAND. 
Section 1240M(e) of the Food Security Act of 1985 
(16 U.S.C. 3839bb(e)) is amended by striking ‘‘2007’’ and 
inserting ‘‘2012’’. 
SEC. 2602. WILDLIFE HABITAT INCENTIVE PROGRAM. 
(a) ELIGIBILITY.—Section 1240N of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb–1) is amended— 
(1) in subsection (a), by inserting before the pe-
riod at the end the following: ‘‘for the development 
of wildlife habitat on private agricultural land, non-
industrial private forest land, and tribal lands’’. 
(2) in subsection (b)(1), by striking ‘‘land-
owners’’ and inserting ‘‘owners of lands referred to 
in subsection (a)’’. 
(b) INCLUSION OF PIVOT CORNERS AND IRREGULAR 
AREAS.—Section 1240N(b)(1)(E) of the Food Security 
Act of 1985 (16 U.S.C. 3839bb–1(b)(1)(E)) is amended 
by inserting before the period at the end the following: 
‘‘, including habitat developed on pivot corners and irreg-
ular areas’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00377
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
378 
(c) COST SHARE FOR LONG-TERM AGREEMENTS.— 
Section 1240N(b)(2)(B) of the Food Security Act of 1985 
(16 U.S.C. 3839bb–1(b)(2)(B)) is amended by striking 
‘‘15 percent’’ and inserting ‘‘25 percent’’. 
(d) PRIORITY FOR CERTAIN CONSERVATION INITIA-
TIVES; PAYMENT LIMITATION.—Section 1240N of the 
Food Security Act of 1985 (16 U.S.C. 3839bb–1) is 
amended by adding at the end the following new sub-
sections: 
‘‘(d) PRIORITY FOR CERTAIN CONSERVATION INITIA-
TIVES.—In carrying out this section, the Secretary may 
give priority to projects that would address issues raised 
by State, regional, and national conservation initiatives. 
‘‘(e) PAYMENT LIMITATION.—Payments made to a 
person or legal entity, directly or indirectly, under the pro-
gram may not exceed, in the aggregate, $50,000 per 
year.’’. 
SEC. 2603. GRASSROOTS SOURCE WATER PROTECTION 
PROGRAM. 
Section 1240O(b) of the Food Security Act of 1985 
(16 U.S.C. 3839bb–2(b)) is amended by striking 
‘‘$5,000,000 for each of fiscal years 2002 through 2007’’ 
and inserting ‘‘$20,000,000 for each of fiscal years 2008 
through 2012’’. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00378
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
379 
SEC. 2604. GREAT LAKES BASIN PROGRAM FOR SOIL ERO-
SION AND SEDIMENT CONTROL. 
Section 1240P of the Food Security Act of 1985 (16 
U.S.C. 3839bb–3) is amended to read as follows: 
‘‘SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL ERO-
SION AND SEDIMENT CONTROL. 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary may 
carry out the Great Lakes basin program for soil erosion 
and sediment control (referred to in this section as the 
‘program’), including providing assistance to implement 
the recommendations of the Great Lakes Regional Col-
laboration Strategy to Restore and Protect the Great 
Lakes. 
‘‘(b) CONSULTATION AND COOPERATION.—The Sec-
retary shall carry out the program in consultation with 
the Great Lakes Commission created by Article IV of the 
Great Lakes Basin Compact (82 Stat. 415) and in co-
operation with the Administrator of the Environmental 
Protection Agency and the Secretary of the Army. 
‘‘(c) ASSISTANCE.—In carrying out the program, the 
Secretary may— 
‘‘(1) provide project demonstration grants, pro-
vide technical assistance, and carry out information 
and educational programs to improve water quality 
in the Great Lakes basin by reducing soil erosion 
and improving sediment control; and 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00379
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
380 
‘‘(2) establish a priority for projects and activi-
ties that— 
‘‘(A) directly reduce soil erosion or improve 
sediment control; 
‘‘(B) reduce soil loss in degraded rural wa-
tersheds; or 
‘‘(C) improve water quality for downstream 
watersheds. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary to carry 
out the program $5,000,000 for each of fiscal years 2008 
through 2012.’’. 
SEC. 2605. CHESAPEAKE BAY WATERSHED PROGRAM. 
Chapter 5 of subtitle D of title XII of the Food Secu-
rity Act of 1985 is amended by inserting after section 
1240P (16 U.S.C. 3839bb–3) the following new section: 
‘‘SEC. 1240Q. CHESAPEAKE BAY WATERSHED. 
‘‘(a) CHESAPEAKE BAY WATERSHED DEFINED.—In 
this section, the term ‘Chesapeake Bay watershed’ means 
all tributaries, backwaters, and side channels, including 
their watersheds, draining into the Chesapeake Bay. 
‘‘(b) ESTABLISHMENT
AND PURPOSE.—The Sec-
retary shall assist producers in implementing conservation 
activities on agricultural lands in the Chesapeake Bay wa-
tershed for the purposes of— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00380
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
381 
‘‘(1) improving water quality and quantity in 
the Chesapeake Bay watershed; and 
‘‘(2) restoring, enhancing, and preserving soil, 
air, and related resources in the Chesapeake Bay 
watershed. 
‘‘(c) CONSERVATION
ACTIVITIES.—The Secretary 
shall deliver the funds made available to carry out this 
section through applicable programs under this subtitle to 
assist producers in enhancing land and water resources— 
‘‘(1) by controlling erosion and reducing sedi-
ment and nutrient levels in ground and surface 
water; and 
‘‘(2) by planning, designing, implementing, and 
evaluating habitat conservation, restoration, and en-
hancement measures where there is significant eco-
logical value if the lands are— 
‘‘(A) retained in their current use; or 
‘‘(B) restored to their natural condition. 
‘‘(d) AGREEMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) enter into agreements with producers 
to carry out the purposes of this section; and 
‘‘(B) use the funds made available to carry 
out this section to cover the costs of the pro-
gram involved with each agreement. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00381
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
382 
‘‘(2) SPECIAL
CONSIDERATIONS.—In entering 
into agreements under this subsection, the Secretary 
shall give special consideration to, and begin evalu-
ating, applications with producers in the following 
river basins: 
‘‘(A) The Susquehanna River. 
‘‘(B) The Shenandoah River. 
‘‘(C) The Potomac River (including North 
and South Potomac). 
‘‘(D) The Patuxent River. 
‘‘(e) DUTIES OF THE SECRETARY.—In carrying out 
the purposes in this section, the Secretary shall— 
‘‘(1) where available, use existing plans, models, 
and assessments to assist producers in implementing 
conservation activities; and 
‘‘(2) proceed expeditiously with the implementa-
tion of any agreement with a producer that is con-
sistent with State strategies for the restoration of 
the Chesapeake Bay watershed. 
‘‘(f) CONSULTATION.—The Secretary, in consultation 
with appropriate Federal agencies, shall ensure conserva-
tion activities carried out under this section complement 
Federal and State programs, including programs that ad-
dress water quality, in the Chesapeake Bay watershed. 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00382
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
383 
‘‘(g) SENSE OF CONGRESS REGARDING CHESAPEAKE 
BAY EXECUTIVE COUNCIL.—It is the sense of Congress 
that the Secretary should be a member of the Chesapeake 
Bay Executive Council, and is authorized to do so under 
section 1(3) of the Soil Conservation and Domestic Allot-
ment Act (16 U.S.C. 590a(3)). 
‘‘(h) FUNDING.— 
‘‘(1) AVAILABILITY.—Of the funds of the Com-
modity Credit Corporation, the Secretary shall use, 
to the maximum extent practicable— 
‘‘(A) $23,000,000 for fiscal year 2009; 
‘‘(B) $43,000,000 for fiscal year 2010; 
‘‘(C) $72,000,000 for fiscal year 2011; and 
‘‘(D) $50,000,000 for fiscal year 2012. 
‘‘(2) DURATION
OF
AVAILABILITY.—Funds 
made available under paragraph (1) shall remain 
available until expended.’’ 
SEC. 2606. VOLUNTARY PUBLIC ACCESS AND HABITAT IN-
CENTIVE PROGRAM. 
Chapter 5 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3839bb et seq.) is amended 
by inserting after section 1240Q, as added by section 
2605, the following new section: 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00383
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
384 
‘‘SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT IN-
CENTIVE PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a voluntary public access program under which States 
and tribal governments may apply for grants to encourage 
owners and operators of privately-held farm, ranch, and 
forest land to voluntarily make that land available for ac-
cess by the public for wildlife-dependent recreation, includ-
ing hunting or fishing under programs administered by 
the States and tribal governments. 
‘‘(b) APPLICATIONS.—In submitting applications for 
a grant under the program, a State or tribal government 
shall describe— 
‘‘(1) the benefits that the State or tribal gov-
ernment intends to achieve by encouraging public ac-
cess to private farm and ranch land for— 
‘‘(A) hunting and fishing; and 
‘‘(B) to the maximum extent practicable, 
other recreational purposes; and 
‘‘(2) the methods that will be used to achieve 
those benefits. 
‘‘(c) PRIORITY.—In approving applications and 
awarding grants under the program, the Secretary shall 
give priority to States and tribal governments that pro-
pose— 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00384
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS
385 
‘‘(1) to maximize participation by offering a 
program the terms of which are likely to meet with 
widespread acceptance among landowners; 
‘‘(2) to ensure that land enrolled under the 
State or tribal government program has appropriate 
wildlife habitat; 
‘‘(3) to strengthen wildlife habitat improvement 
efforts on land enrolled in a special conservation re-
serve enhancement program described in section 
1234(f)(4) by providing incentives to increase public 
hunting and other recreational access on that land; 
‘‘(4) to use additional Federal, State, tribal 
government, or private resources in carrying out the 
program; and 
‘‘(5) to make available to the public the location 
of land enrolled. 
‘‘(d) RELATIONSHIP TO OTHER LAWS.— 
‘‘(1) NO PREEMPTION.—Nothing in this section 
preempts a State or tribal government law, including 
any State or tribal government liability law. 
‘‘(2) EFFECT
OF
INCONSISTENT
OPENING 
DATES FOR MIGRATORY BIRD HUNTING.—The Sec-
retary shall reduce by 25 percent the amount of a 
grant otherwise determined for a State under the 
program if the opening dates for migratory bird 
VerDate Aug 31 2005 
18:01 May 22, 2008
Jkt 059200
PO 00000
Frm 00385
Fmt 6652
Sfmt 6201
C:\H6124EH.XXX
H6124EH
gechino on PRODPC25 with BILLS