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(d) ENROLLMENT.—Subsection (d) of section 1231 
of the Food Security Act of 1985 (16 U.S.C. 3831) is 
amended to read as follows: 
‘‘(d) ENROLLMENT.— 
‘‘(1) MAXIMUM
ACREAGE
ENROLLED.—The 
Secretary may maintain in the conservation reserve 
at any one time during— 
‘‘(A) fiscal year 2014, no more than 
27,500,000 acres; 
‘‘(B) fiscal year 2015, no more than 
26,000,000 acres; 
‘‘(C) fiscal year 2016, no more than 
25,000,000 acres; 
‘‘(D) fiscal year 2017, no more than 
24,000,000 acres; and 
‘‘(E) fiscal year 2018, no more than 
24,000,000 acres. 
‘‘(2) GRASSLANDS.— 
‘‘(A) LIMITATION.—For purposes of apply-
ing the limitations in paragraph (1), no more 
than 2,000,000 acres of the land described in 
subsection (b)(3) may be enrolled in the pro-
gram at any one time during the 2014 through 
2018 fiscal years. 
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‘‘(B) PRIORITY.—In enrolling acres under 
subparagraph (A), the Secretary may give pri-
ority to land with expiring conservation reserve 
program contracts. 
‘‘(C) METHOD OF ENROLLMENT.—In en-
rolling acres under subparagraph (A), the Sec-
retary shall make the program available to own-
ers or operators of eligible land on a continuous 
enrollment basis with one or more ranking peri-
ods.’’. 
(e) DURATION OF CONTRACT.—Section 1231(e) of 
the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 
amended by striking paragraphs (2) and (3) and inserting 
the following new paragraph: 
‘‘(2) SPECIAL RULE FOR CERTAIN LAND.—In 
the case of land devoted to hardwood trees, 
shelterbelts, windbreaks, or wildlife corridors under 
a contract entered into under this subchapter, the 
owner or operator of the land may, within the limita-
tions prescribed under paragraph (1), specify the du-
ration of the contract.’’. 
(f) 
CONSERVATION
PRIORITY
AREAS.—Section 
1231(f) of the Food Security Act of 1985 (16 U.S.C. 
3831(f)) is amended— 
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(1) in paragraph (1), by striking ‘‘watershed 
areas of the Chesapeake Bay Region, the Great 
Lakes Region, the Long Island Sound Region, and 
other’’; 
(2) in paragraph (2), by striking ‘‘WATER-
SHEDS.—Watersheds’’ 
and 
inserting 
‘‘AREAS.— 
Areas’’; and 
(3) in paragraph (3), by striking ‘‘a watershed’s 
designation—’’ and all that follows through the pe-
riod at the end and inserting ‘‘an area’s designation 
if the Secretary finds that the area no longer con-
tains actual and significant adverse water quality or 
habitat impacts related to agricultural production 
activities.’’. 
SEC. 2002. FARMABLE WETLAND PROGRAM. 
(a) EXTENSION.—Section 1231B(a)(1) of the Food 
Security Act of 1985 (16 U.S.C. 3831b(a)(1)) is amend-
ed— 
(1) by striking ‘‘2012’’ and inserting ‘‘2018’’; 
and 
(2) by striking ‘‘a program’’ and inserting ‘‘a 
farmable wetland program’’. 
(b) ELIGIBLE ACREAGE.—Section 1231B(b)(1)(B) of 
the 
Food 
Security 
Act 
of 
1985 
(16 
U.S.C. 
3831b(b)(1)(B)) is amended by striking ‘‘flow from a row 
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crop agriculture drainage system’’ and inserting ‘‘surface 
and subsurface flow from row crop agricultural produc-
tion’’. 
(c) ACREAGE LIMITATION.—Section 1231B(c)(1)(B) 
of the Food Security Act of 1985 (16 U.S.C. 
3831b(c)(1)(B)) is amended by striking ‘‘1,000,000’’ and 
inserting ‘‘750,000’’. 
(d) CLERICAL AMENDMENT.—The heading of section 
1231B of the Food Security Act of 1985 (16 U.S.C. 
3831b) is amended to read as follows: ‘‘FARMABLE WET-
LAND PROGRAM.’’. 
SEC. 2003. DUTIES OF OWNERS AND OPERATORS. 
(a) LIMITATION ON HARVESTING, GRAZING, OR COM-
MERCIAL USE OF FORAGE.—Section 1232(a)(8) of the 
Food Security Act of 1985 (16 U.S.C. 3832(a)(8)) is 
amended by striking ‘‘except that’’ and all that follows 
through the semicolon at the end of the paragraph and 
inserting ‘‘except as provided in subsection (b) or (c) of 
section 1233;’’. 
(b) CONSERVATION PLAN REQUIREMENTS.—Sub-
section (b) of section 1232 of the Food Security Act of 
1985 (16 U.S.C. 3832) is amended to read as follows: 
‘‘(b) CONSERVATION PLANS.—The plan referred to 
in subsection (a)(1) shall set forth— 
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‘‘(1) the conservation measures and practices to 
be carried out by the owner or operator during the 
term of the contract; and 
‘‘(2) the commercial use, if any, to be permitted 
on the land during the term.’’. 
(c) RENTAL PAYMENT REDUCTION.—Section 1232 
of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by striking subsection (d). 
SEC. 2004. DUTIES OF THE SECRETARY. 
Section 1233 of the Food Security Act of 1985 (16 
U.S.C. 3833) is amended to read as follows: 
‘‘SEC. 1233. DUTIES OF THE SECRETARY. 
‘‘(a) COST-SHARE AND RENTAL PAYMENTS.—In re-
turn for a contract entered into by an owner or operator 
under the conservation reserve program, the Secretary 
shall— 
‘‘(1) share the cost of carrying out the con-
servation measures and practices set forth in the 
contract for which the Secretary determines that 
cost sharing is appropriate and in the public inter-
est; and 
‘‘(2) for a period of years not in excess of the 
term of the contract, pay an annual rental payment 
in an amount necessary to compensate for— 
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‘‘(A) the conversion of highly erodible crop-
land or other eligible lands normally devoted to 
the production of an agricultural commodity on 
a farm or ranch to a less intensive use; 
‘‘(B) the retirement of any base history 
that the owner or operator agrees to retire per-
manently; and 
‘‘(C) the development and management of 
grasslands for multiple natural resource con-
servation benefits, including to soil, water, air, 
and wildlife. 
‘‘(b) SPECIFIED ACTIVITIES PERMITTED.—The Sec-
retary shall permit certain activities or commercial uses 
of land that is subject to a contract under the conservation 
reserve program in a manner that is consistent with a plan 
approved by the Secretary, as follows: 
‘‘(1) Harvesting, grazing, or other commercial 
use of the forage in response to a drought or other 
emergency created by a natural disaster, without 
any reduction in the rental rate. 
‘‘(2) Consistent with the conservation of soil, 
water quality, and wildlife habitat (including habitat 
during nesting seasons for birds in the area), and in 
exchange for a reduction of not less than 25 percent 
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in the annual rental rate for the acres covered by 
the authorized activity— 
‘‘(A) managed harvesting and other com-
mercial use (including the managed harvesting 
of biomass), except that in permitting managed 
harvesting, the Secretary, in coordination with 
the State technical committee— 
‘‘(i) shall develop appropriate vegeta-
tion management requirements; and 
‘‘(ii) shall identify periods during 
which managed harvesting may be con-
ducted, such that the frequency is not 
more than once every three years; 
‘‘(B) 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 identify the periods during 
which routine grazing may be conducted, 
such that the frequency is not more than 
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once every two years, taking into consider-
ation 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 
‘‘(III) how often during a year in 
which routine grazing is permitted 
that routine grazing should be allowed 
to occur; and 
‘‘(C) the installation of wind turbines and 
associated access, except that in permitting the 
installation of wind turbines, the Secretary shall 
determine the number and location of wind tur-
bines that may be installed, taking into ac-
count— 
‘‘(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. 
‘‘(3) The intermittent and seasonal use of vege-
tative buffer practices incidental to agricultural pro-
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duction on lands adjacent to the buffer such that the 
permitted use does not destroy the permanent vege-
tative cover. 
‘‘(c) AUTHORIZED ACTIVITIES ON GRASSLANDS.— 
For eligible land described in section 1231(b)(3), the Sec-
retary shall permit the following activities: 
‘‘(1) 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 ap-
propriate to that locality. 
‘‘(2) Haying, mowing, or harvesting for seed 
production, subject to appropriate restrictions dur-
ing the nesting season for critical bird species in the 
area. 
‘‘(3) Fire presuppression, fire-related rehabilita-
tion, and construction of fire breaks. 
‘‘(4) Grazing-related activities, such as fencing 
and livestock watering. 
‘‘(d) RESOURCE CONSERVING USE.— 
‘‘(1) IN GENERAL.—Beginning on the date that 
is 1 year before the date of termination of a contract 
under the program, the Secretary shall allow an 
owner or operator to make conservation and land 
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improvements that facilitate maintaining protection 
of enrolled land after expiration of the contract. 
‘‘(2) CONSERVATION
PLAN.—The Secretary 
shall require an owner or operator carrying out the 
activities described in paragraph (1) to develop and 
implement a conservation plan. 
‘‘(3) RE-ENROLLMENT PROHIBITED.—Land im-
proved under paragraph (1) may not be re-enrolled 
in the conservation reserve program for 5 years after 
the date of termination of the contract.’’. 
SEC. 2005. PAYMENTS. 
(a) TREES, WINDBREAKS, SHELTERBELTS, AND 
WILDLIFE CORRIDORS.—Section 1234(b)(3)(A) of the 
Food Security Act of 1985 (16 U.S.C. 3834(b)(3)(A)) is 
amended— 
(1) in clause (i), by inserting ‘‘and’’ after the 
semicolon; 
(2) by striking clause (ii); and 
(3) by redesignating clause (iii) as clause (ii). 
(b) ANNUAL RENTAL PAYMENTS.—Section 1234(c) 
of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is 
amended— 
(1) in paragraph (1), by inserting ‘‘or other eli-
gible lands’’ after ‘‘highly erodible cropland’’ both 
places it appears; and 
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(2) by striking paragraph (2) and inserting the 
following new paragraph: 
‘‘(2) METHODS OF DETERMINATION.— 
‘‘(A) IN GENERAL.—The amounts payable 
to owners or operators in the form of rental 
payments under contracts entered into under 
this subchapter may be determined through— 
‘‘(i) the submission of bids for such 
contracts by owners and operators in such 
manner as the Secretary may prescribe; or 
‘‘(ii) such other means as the Sec-
retary determines are appropriate. 
‘‘(B) GRASSLANDS.—In the case of eligible 
land described in section 1231(b)(3), the Sec-
retary shall make annual payments in an 
amount that is not more than 75 percent of the 
grazing value of the land covered by the con-
tract.’’. 
(c) PAYMENT SCHEDULE.—Subsection (d) of section 
1234 of the Food Security Act of 1985 (16 U.S.C. 3834) 
is amended to read as follows: 
‘‘(d) PAYMENT SCHEDULE.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, payments under this sub-
chapter shall be made in cash in such amount and 
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on such time schedule as is agreed on and specified 
in the contract. 
‘‘(2) ADVANCE
PAYMENT.—Payments under 
this subchapter may be made in advance of deter-
mination of performance.’’. 
(d) PAYMENT LIMITATION.—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 ‘‘, including 
rental payments made in the form of in-kind com-
modities,’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraph (4) as para-
graph (2). 
SEC. 2006. CONTRACT REQUIREMENTS. 
(a) EARLY TERMINATION
BY OWNER
OR OPER-
ATOR.—Section 1235(e) of the Food Security Act of 1985 
(16 U.S.C. 3835(e)) is amended— 
(1) in paragraph (1)(A)— 
(A) by striking ‘‘The Secretary’’ and in-
serting ‘‘During fiscal year 2014, the Sec-
retary’’; and 
(B) by striking ‘‘before January 1, 1995,’’; 
(2) in paragraph (2), by striking subparagraph 
(C) and inserting the following: 
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‘‘(C) Land devoted to hardwood trees. 
‘‘(D) Wildlife habitat, duck nesting habi-
tat, pollinator habitat, upland bird habitat buff-
er, wildlife food plots, State acres for wildlife 
enhancement, shallow water areas for wildlife, 
and rare and declining habitat. 
‘‘(E) Farmable wetland and restored wet-
land. 
‘‘(F) Land that contains diversions, ero-
sion control structures, flood control structures, 
contour grass strips, living snow fences, salinity 
reducing vegetation, cross wind trap strips, and 
sediment retention structures. 
‘‘(G) Land located within a federally-des-
ignated wellhead protection area. 
‘‘(H) Land that is covered by an easement 
under the conservation reserve program. 
‘‘(I) Land located within an average width, 
according to the applicable Natural Resources 
Conservation Service field office technical guide, 
of a perennial stream or permanent water 
body.’’; and 
(3) in paragraph (3), by striking ‘‘60 days after 
the date on which the owner or operator submits the 
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notice required under paragraph (1)(C)’’ and insert-
ing ‘‘upon approval by the Secretary’’. 
(b) TRANSITION OPTION FOR CERTAIN FARMERS OR 
RANCHERS.—Section 1235(f) of the Food Security Act of 
1985 (16 U.S.C. 3835(f)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘DUTIES’’ and all that follows 
through ‘‘a beginning farmer’’ and inserting 
‘‘TRANSITION TO COVERED FARMER OR RANCH-
ER.—In the case of a contract modification ap-
proved in order to facilitate the transfer of land 
subject to a contract from a retired farmer or 
rancher to a beginning farmer’’; 
(B) in subparagraph (A)(i), by inserting ‘‘, 
including preparing to plant an agricultural 
crop’’ after ‘‘improvements’’; 
(C) in subparagraph (D), by striking ‘‘the 
farmer or rancher’’ and inserting ‘‘the covered 
farmer or rancher’’; and 
(D) in subparagraph (E), by striking ‘‘sec-
tion 1001A(b)(3)(B)’’ and inserting ‘‘section 
1001’’; and 
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(2) in paragraph (2), by striking ‘‘requirement 
of section 1231(h)(4)(B)’’ and inserting ‘‘option pur-
suant to section 1234(c)(2)(A)(ii)’’. 
(c) FINAL YEAR CONTRACT.—Section 1235 of the 
Food Security Act of 1985 (16 U.S.C. 3835) is amended 
by adding at the end the following new subsections: 
‘‘(g) FINAL YEAR OF CONTRACT.—The Secretary 
shall not consider an owner or operator to be in violation 
of a term or condition of the conservation reserve contract 
if— 
‘‘(1) during the year prior to expiration of the 
contract, the land is enrolled in the conservation 
stewardship program; and 
‘‘(2) the activity required under the conserva-
tion stewardship program pursuant to such enroll-
ment is consistent with this subchapter. 
‘‘(h) LAND ENROLLED
IN AGRICULTURAL CON-
SERVATION EASEMENT PROGRAM.—The Secretary may 
terminate or modify a contract entered into under this 
subchapter if eligible land that is subject to such contract 
is transferred into the agricultural conservation easement 
program under subtitle H.’’. 
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SEC. 2007. CONVERSION OF LAND SUBJECT TO CONTRACT 
TO OTHER CONSERVING USES. 
Section 1235A of the Food Security Act of 1985 (16 
U.S.C. 3835a) is repealed. 
SEC. 2008. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2013, except the 
amendment made by section 2001(d), which shall take ef-
fect on the date of the enactment of this Act. 
(b) EFFECT ON EXISTING CONTRACTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subtitle 
shall not affect the validity or terms of any contract 
entered into by the Secretary of Agriculture under 
subchapter B of chapter 1 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3831 
et seq.) before October 1, 2013, or any payments re-
quired to be made in connection with the contract. 
(2) UPDATING OF EXISTING CONTRACTS.—The 
Secretary shall permit an owner or operator of land 
subject to a contract entered into under subchapter 
B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.) be-
fore October 1, 2013, to update the contract to re-
flect the activities and uses of land under contract 
permitted under the terms and conditions of section 
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1233(b) of that Act (as amended by section 2004), 
as determined appropriate by the Secretary. 
Subtitle B—Conservation 
Stewardship Program 
SEC. 2101. CONSERVATION STEWARDSHIP PROGRAM. 
(a) REVISION OF CURRENT PROGRAM.—Subchapter 
B of chapter 2 of subtitle D of title XII of the Food Secu-
rity Act of 1985 (16 U.S.C. 3838d et seq.) is amended 
to read as follows: 
‘‘Subchapter B—Conservation Stewardship 
Program 
‘‘SEC. 1238D. DEFINITIONS. 
‘‘In this subchapter: 
‘‘(1) AGRICULTURAL
OPERATION.—The term 
‘agricultural operation’ means all eligible land, 
whether or not contiguous, that is— 
‘‘(A) under the effective control of a pro-
ducer at the time the producer enters into a 
contract under the program; and 
‘‘(B) operated with equipment, labor, man-
agement, and production or cultivation prac-
tices that are substantially separate from other 
agricultural operations, as determined by the 
Secretary. 
‘‘(2) CONSERVATION ACTIVITIES.— 
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‘‘(A) IN GENERAL.—The term ‘conserva-
tion activities’ means conservation systems, 
practices, or management measures. 
‘‘(B) INCLUSIONS.—The term ‘conserva-
tion activities’ includes— 
‘‘(i) structural measures, vegetative 
measures, and land management measures, 
including agriculture drainage manage-
ment systems, as determined by the Sec-
retary; and 
‘‘(ii) planning needed to address a pri-
ority resource concern. 
‘‘(3) CONSERVATION
STEWARDSHIP
PLAN.— 
The term ‘conservation stewardship plan’ means a 
plan that— 
‘‘(A) identifies and inventories priority re-
source 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. 
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‘‘(4) ELIGIBLE LAND.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
land’ means— 
‘‘(i) private or tribal land on which 
agricultural commodities, livestock, or for-
est-related products are produced; and 
‘‘(ii) lands associated with the land 
described in clause (i) on which priority re-
source 
concerns 
could 
be 
addressed 
through a contract under the program. 
‘‘(B) INCLUSIONS.—The term ‘eligible 
land’ includes— 
‘‘(i) cropland; 
‘‘(ii) grassland; 
‘‘(iii) rangeland; 
‘‘(iv) pasture land; 
‘‘(v) nonindustrial private forest land; 
and 
‘‘(vi) other agricultural areas (includ-
ing cropped woodland, marshes, and agri-
cultural land used or capable of being used 
for the production of livestock), as deter-
mined by the Secretary. 
‘‘(5) 
PRIORITY
RESOURCE
CONCERN.—The 
term ‘priority resource concern’ means a natural re-
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source concern or problem, as determined by the 
Secretary, that— 
‘‘(A) is identified at the national, State, or 
local level as a priority for a particular area of 
a State; 
‘‘(B) represents a significant concern in a 
State or region; and 
‘‘(C) is likely to be addressed successfully 
through the implementation of conservation ac-
tivities under this program. 
‘‘(6) PROGRAM.—The term ‘program’ means 
the conservation stewardship program established by 
this subchapter. 
‘‘(7) STEWARDSHIP
THRESHOLD.—The term 
‘stewardship threshold’ means the level of manage-
ment required, as determined by the Secretary, to 
conserve and improve the quality and condition of a 
natural resource. 
‘‘SEC. 1238E. CONSERVATION STEWARDSHIP PROGRAM. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—During each 
of fiscal years 2014 through 2018, the Secretary shall 
carry out a conservation stewardship program to encour-
age producers to address priority resource concerns in a 
comprehensive manner— 
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‘‘(1) by undertaking additional conservation ac-
tivities; and 
‘‘(2) by improving, maintaining, and managing 
existing conservation activities. 
‘‘(b) EXCLUSIONS.— 
‘‘(1) LAND ENROLLED IN OTHER CONSERVA-
TION PROGRAMS.—Subject to paragraph (2), the fol-
lowing land (even if covered by the definition of eli-
gible land) is not eligible for enrollment in the pro-
gram: 
‘‘(A) Land enrolled in the conservation re-
serve program, unless— 
‘‘(i) the conservation reserve contract 
will expire at the end of the fiscal year in 
which the land is to be enrolled in the pro-
gram; and 
‘‘(ii) conservation reserve program 
payments for land enrolled in the program 
cease before the first program payment is 
made to the applicant under this sub-
chapter. 
‘‘(B) Land enrolled in a wetland easement 
through the agricultural conservation easement 
program. 
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‘‘(C) Land enrolled in the conservation se-
curity program. 
‘‘(2) CONVERSION
TO
CROPLAND.—Eligible 
land used for crop production after October 1, 2013, 
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-
gram, a producer shall submit to the Secretary a contract 
offer for the agricultural operation that— 
‘‘(1) demonstrates to the satisfaction of the 
Secretary that the producer, at the time of the con-
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tract offer, meets or exceeds the stewardship thresh-
old for at least 2 priority resource concerns; and 
‘‘(2) would, at a minimum, meet or exceed the 
stewardship threshold for at least 1 additional pri-
ority resource concern by the end of the stewardship 
contract by— 
‘‘(A) installing and adopting additional 
conservation activities; and 
‘‘(B) improving, maintaining, and man-
aging existing conservation activities across the 
entire agricultural operation in a manner that 
increases or extends the conservation benefits in 
place 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 submitted under subsection (a), 
the Secretary shall rank applications based on— 
‘‘(A) the level of conservation treatment on 
all applicable priority resource concerns at the 
time of application; 
‘‘(B) the degree to which the proposed con-
servation activities effectively increase conserva-
tion performance; 
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‘‘(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 priority re-
source concerns will be addressed to meet or ex-
ceed the stewardship threshold by the end of 
the contract period; 
‘‘(E) the extent to which the actual and 
anticipated conservation benefits from the con-
tract are provided at the least cost relative to 
other similarly beneficial contract offers; and 
‘‘(F) the extent to which priority resource 
concerns will be addressed when transitioning 
from the conservation reserve program to agri-
cultural production. 
‘‘(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 that 
the Secretary determines are necessary to ensure 
that national, State, and local priority resource con-
cerns are effectively addressed. 
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‘‘(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 
eligible 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) REQUIRED PROVISIONS.—The conservation 
stewardship 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(d); 
‘‘(B) require the producer— 
‘‘(i) to implement a conservation stew-
ardship plan that describes the program 
purposes to be achieved through 1 or more 
conservation activities; 
‘‘(ii) to maintain and supply informa-
tion as required by the Secretary to deter-
mine compliance with the conservation 
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HR 2642 PCS 
stewardship plan and any other require-
ments of the program; and 
‘‘(iii) not to conduct any activities on 
the agricultural operation that would tend 
to defeat the purposes of the program; 
‘‘(C) permit all economic uses of the eligi-
ble 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; 
‘‘(E) include provisions requiring that 
upon the violation of a term or condition of the 
contract at any time the producer has control 
of the land— 
‘‘(i) if the Secretary determines that 
the violation warrants termination of the 
contract— 
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‘‘(I) the producer shall forfeit all 
rights to receive payments under the 
contract; and 
‘‘(II) the producer shall refund 
all or a portion of the payments re-
ceived by the producer under the con-
tract, including any interest on the 
payments, as determined by the Sec-
retary; or 
‘‘(ii) if the Secretary determines that 
the violation does not warrant termination 
of the contract, the producer shall refund 
or accept adjustments to the payments 
provided to the producer, as the Secretary 
determines to be appropriate; 
‘‘(F) include provisions in accordance with 
paragraphs (3) and (4) of this section; and 
‘‘(G) include any additional provisions the 
Secretary determines are necessary to carry out 
the program. 
‘‘(3) CHANGE OF INTEREST IN LAND SUBJECT 
TO A CONTRACT.— 
‘‘(A) IN GENERAL.—At the time of appli-
cation, a producer shall have control of the eli-
gible land to be enrolled in the program. Except 
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HR 2642 PCS 
as provided in subparagraph (B), a change in 
the interest of a producer in eligible land cov-
ered by a contract under the program shall re-
sult in the termination of the contract with re-
gard 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 eligi-
ble land covered by a contract under the 
program, the transferee of the land pro-
vides written notice to the Secretary that 
all duties and rights under the contract 
have been transferred to, and assumed by, 
the transferee for the portion of the land 
transferred; 
‘‘(ii) the transferee meets the eligi-
bility requirements of the program; and 
‘‘(iii) the Secretary approves the 
transfer of all duties and rights under the 
contract. 
‘‘(4) MODIFICATION
AND
TERMINATION
OF 
CONTRACTS.— 
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‘‘(A) VOLUNTARY MODIFICATION OR TER-
MINATION.—The Secretary may modify or ter-
minate a contract with a producer if— 
‘‘(i) the producer agrees to the modi-
fication or termination; and 
‘‘(ii) the Secretary determines that 
the modification or termination is in the 
public interest. 
‘‘(B) INVOLUNTARY
TERMINATION.—The 
Secretary may terminate a contract if the Sec-
retary determines that the producer violated the 
contract. 
‘‘(5) 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 received and assess liquidated 
damages. 
‘‘(e) CONTRACT RENEWAL.—At the end of the initial 
5-year contract period, the Secretary may allow the pro-
ducer to renew the contract for 1 additional 5-year period 
if the producer— 
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‘‘(1) demonstrates compliance with the terms of 
the initial contract; 
‘‘(2) agrees to adopt and continue to integrate 
conservation activities across the entire agricultural 
operation, as determined by the Secretary; and 
‘‘(3) agrees, by the end of the contract period— 
‘‘(A) to meet the stewardship threshold of 
at least two additional priority resource con-
cerns on the agricultural operation; or 
‘‘(B) to exceed the stewardship threshold 
of two existing priority resource concerns that 
are specified by the Secretary in the initial con-
tract. 
‘‘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; 
‘‘(2) identify not less than 5 priority resource 
concerns in a particular watershed or other appro-
priate region or area within a State; and 
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‘‘(3) establish a science-based stewardship 
threshold for each priority resource concern identi-
fied under paragraph (2). 
‘‘(b) ALLOCATION TO STATES.—The Secretary shall 
allocate acres to States for enrollment, based— 
‘‘(1) primarily on each State’s proportion of eli-
gible land to the total acreage of eligible land 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) ACREAGE ENROLLMENT LIMITATION.—During 
the period beginning on October 1, 2013, and ending on 
September 30, 2021, the Secretary shall, to the maximum 
extent practicable— 
‘‘(1) enroll in the program an additional 
8,695,000 acres for each fiscal year; and 
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‘‘(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. 
‘‘(d) CONSERVATION STEWARDSHIP PAYMENTS.— 
‘‘(1) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide annual payments under the pro-
gram 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 ag-
ricultural operation of the producer at the time 
the contract offer is accepted by the Secretary. 
‘‘(2) PAYMENT AMOUNT.—The amount of the 
conservation stewardship annual payment shall be 
determined by the Secretary and based, to the max-
imum 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 conservation benefits. 
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‘‘(D) The extent to which priority resource 
concerns will be addressed through the installa-
tion and adoption of conservation activities on 
the agricultural operation. 
‘‘(E) The level of stewardship in place at 
the time of application and maintained over the 
term of the contract. 
‘‘(F) The degree to which the conservation 
activities will be integrated across the entire ag-
ricultural operation for all applicable priority 
resource concerns over the term of the contract. 
‘‘(G) Such other factors as determined ap-
propriate by the Secretary. 
‘‘(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) DELIVERY
OF
PAYMENTS.—In making 
payments under this subsection, the Secretary shall, 
to the extent practicable— 
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‘‘(A) prorate conservation performance 
over the term of the contract so as to accommo-
date, to the extent practicable, producers earn-
ing equal annual payments in each fiscal year; 
and 
‘‘(B) make payments as soon as prac-
ticable after October 1 of each fiscal year for 
activities carried out in the previous fiscal year. 
‘‘(e) 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 or improve resource-conserving crop rota-
tions to achieve beneficial crop rotations as appro-
priate for the eligible 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 
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shall agree to adopt and maintain beneficial re-
source-conserving crop rotations for the term of the 
contract. 
‘‘(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. 
‘‘(f) PAYMENT LIMITATIONS.—A person or legal enti-
ty may not receive, directly or indirectly, payments under 
the program that, in the aggregate, exceed $200,000 
under all contracts entered into during fiscal years 2014 
through 2018, excluding funding arrangements with In-
dian tribes, regardless of the number of contracts entered 
into under the program by the person or legal entity. 
‘‘(g) SPECIALTY CROP AND ORGANIC PRODUCERS.— 
The Secretary shall ensure that outreach and technical as-
sistance are available, and program specifications are ap-
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HR 2642 PCS 
propriate to enable specialty crop and organic producers 
to participate in 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 the program. 
‘‘(i) REGULATIONS.—The Secretary shall promulgate 
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 (f); and 
‘‘(2) otherwise enable the Secretary to carry out 
the program.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2013. 
(c) EFFECT ON EXISTING CONTRACTS.— 
(1) IN
GENERAL.—The amendment made by 
this section shall not affect the validity or terms of 
any contract entered into by the Secretary of Agri-
culture under subchapter B of chapter 2 of subtitle 
D of title XII of the Food Security Act of 1985 (16 
U.S.C. 3838d et seq.) before October 1, 2013, or 
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HR 2642 PCS 
any payments required to be made in connection 
with the contract. 
(2) CONSERVATION STEWARDSHIP PROGRAM.— 
Funds made available under section 1241(a)(4) of 
the Food Security Act of 1985 (16 U.S.C. 
3841(a)(4)) (as amended by section 2601(a) of this 
title) may be used to administer and make payments 
to program participants that enrolled into contracts 
during any of fiscal years 2009 through 2013. 
Subtitle C—Environmental Quality 
Incentives Program 
SEC. 2201. PURPOSES. 
Section 1240 of the Food Security Act of 1985 (16 
U.S.C. 3839aa) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (C) and, in such subparagraph, 
by inserting ‘‘and’’ after the semicolon; and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) developing and improving wildlife 
habitat; and’’; 
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(2) in paragraph (4), by striking ‘‘; and’’ and 
inserting a period; and 
(3) by striking paragraph (5). 
SEC. 2202. ESTABLISHMENT AND ADMINISTRATION. 
Section 1240B of the Food Security Act of 1985 (16 
U.S.C. 3839aa–2) is amended— 
(1) in subsection (a), by striking ‘‘2014’’ and 
inserting ‘‘2018’’; 
(2) in subsection (b), by striking paragraph (2) 
and inserting the following new paragraph: 
‘‘(2) TERM.—A contract under the program 
shall have a term that does not exceed 10 years.’’; 
(3) in subsection (d)(4)— 
(A) in subparagraph (A), in the matter 
preceding clause (i), by inserting ‘‘, veteran 
farmer or rancher (as defined in section 
2501(e) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e))),’’ 
before ‘‘or a beginning farmer or rancher’’; and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) ADVANCE PAYMENTS.— 
‘‘(i) IN GENERAL.—Not more than 50 
percent of the amount determined under 
subparagraph (A) may be provided in ad-
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vance for the purpose of purchasing mate-
rials or contracting. 
‘‘(ii) RETURN
OF
FUNDS.—If funds 
provided in advance are not expended dur-
ing the 90-day period beginning on the 
date of receipt of the funds, the funds shall 
be returned within a reasonable time 
frame, as determined by the Secretary.’’; 
(4) by striking subsection (f) and inserting the 
following new subsection: 
‘‘(f) ALLOCATION OF FUNDING.— 
‘‘(1) LIVESTOCK.—For each of fiscal years 
2014 through 2018, at least 60 percent of the funds 
made available for payments under the program 
shall be targeted at practices relating to livestock 
production. 
‘‘(2) WILDLIFE HABITAT.—For each of fiscal 
years 2014 through 2018, 7.5 percent of the funds 
made available for payments under the program 
shall be targeted at practices benefitting wildlife 
habitat.’’; 
(5) in subsection (g)— 
(A) in the subsection heading, by striking 
‘‘FEDERALLY RECOGNIZED NATIVE AMERICAN 
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HR 2642 PCS 
INDIAN TRIBES
AND ALASKA NATIVE COR-
PORATIONS’’ and inserting ‘‘INDIAN TRIBES’’; 
(B) by striking ‘‘federally recognized Na-
tive American Indian Tribes and Alaska Native 
Corporations (including their affiliated member-
ship organizations)’’ and inserting ‘‘Indian 
tribes’’; and 
(C) by striking ‘‘or Native Corporation’’; 
and 
(6) by adding at the end the following: 
‘‘(j) WILDLIFE HABITAT INCENTIVE PRACTICE.— 
The Secretary shall provide payments to producers under 
the program for practices, including recurring practices 
for the term of the contract, that support the restoration, 
development, protection, and improvement of wildlife habi-
tat on eligible land, including— 
‘‘(1) upland wildlife habitat; 
‘‘(2) wetland wildlife habitat; 
‘‘(3) habitat for threatened and endangered 
species; 
‘‘(4) fish habitat; 
‘‘(5) habitat on pivot corners and other irreg-
ular areas of a field; and 
‘‘(6) other types of wildlife habitat, as deter-
mined appropriate by the Secretary. 
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‘‘(k) FUNDING FOR COMMUNITY IRRIGATION ASSO-
CIATIONS.— 
‘‘(1) IN GENERAL.—The Secretary may enter 
into an alternative funding arrangement with an eli-
gible irrigation association if the Secretary deter-
mines that— 
‘‘(A) the purposes of the program will be 
met by such an arrangement; and 
‘‘(B) statutory limitations regarding con-
tracts with individual producers will not be ex-
ceeded by any member of the irrigation associa-
tion. 
‘‘(2) ELIGIBLE IRRIGATION ASSOCIATIONS.—In 
this subsection, the term ‘eligible irrigation associa-
tion’ means an irrigation association that is— 
‘‘(A) comprised of producers; and 
‘‘(B) a local government entity, but does 
not have the authority to impose taxes or lev-
ies.’’. 
SEC. 2203. EVALUATION OF APPLICATIONS. 
Section 1240C(b) of the Food Security Act of 1985 
(16 U.S.C. 3839aa–3(b)) is amended— 
(1) in paragraph (1), by striking ‘‘environ-
mental’’ and inserting ‘‘conservation’’; and 
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(2) in paragraph (3), by striking ‘‘purpose of 
the environmental quality incentives program speci-
fied in section 1240(1)’’ and inserting ‘‘purposes of 
the program’’. 
SEC. 2204. DUTIES OF PRODUCERS. 
Section 1240D(2) of the Food Security Act of 1985 
(16 U.S.C. 3839aa–4(2)) is amended by striking ‘‘farm, 
ranch, or forest’’ and inserting ‘‘enrolled’’. 
SEC. 2205. LIMITATION ON PAYMENTS. 
Section 1240G of the Food Security Act of 1985 (16 
U.S.C. 3839aa–7) is amended to read as follows: 
‘‘SEC. 1240G. LIMITATION ON PAYMENTS. 
‘‘A person or legal entity may not receive, directly 
or indirectly, cost-share or incentive payments under this 
chapter that, in aggregate, exceed $450,000 for all con-
tracts entered into under this chapter by the person or 
legal entity during the period of fiscal years 2014 through 
2018, regardless of the number of contracts entered into 
under this chapter by the person or legal entity.’’. 
SEC. 2206. CONSERVATION INNOVATION GRANTS AND PAY-
MENTS. 
Section 1240H of the Food Security Act of 1985 (16 
U.S.C. 3839aa–8) is amended— 
(1) in subsection (a)(2)— 
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(A) in subparagraph (C), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (D), by striking the 
period and inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) facilitate on-farm conservation re-
search and demonstration activities; and 
‘‘(F) facilitate pilot testing of new tech-
nologies or innovative conservation practices.’’; 
and 
(2) by striking subsection (b) and inserting the 
following new subsection: 
‘‘(b) REPORTING.—Not later than December 31, 
2014, and every two years thereafter, the Secretary shall 
submit to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture 
of the House of Representatives a report on the status 
of projects funded under this section, including— 
‘‘(1) funding awarded; 
‘‘(2) project results; and 
‘‘(3) incorporation of project findings, such as 
new technology and innovative approaches, into the 
conservation efforts implemented by the Secretary.’’. 
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SEC. 2207. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
subtitle shall take effect on October 1, 2013. 
(b) EFFECT ON EXISTING CONTRACTS.—The amend-
ments made by this subtitle shall not affect the validity 
or terms of any contract entered into by the Secretary of 
Agriculture under chapter 4 of subtitle D of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) 
before October 1, 2013, or any payments required to be 
made in connection with the contract. 
Subtitle D—Agricultural 
Conservation Easement Program 
SEC. 2301. AGRICULTURAL CONSERVATION EASEMENT 
PROGRAM. 
(a) ESTABLISHMENT.—Title XII of the Food Secu-
rity Act of 1985 is amended by adding at the end the fol-
lowing new subtitle: 
‘‘Subtitle H—Agricultural 
Conservation Easement Program 
‘‘SEC. 1265. ESTABLISHMENT AND PURPOSES. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish an agricultural conservation easement program for the 
conservation of eligible land and natural resources through 
easements or other interests in land. 
‘‘(b) PURPOSES.—The purposes of the program are 
to— 
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‘‘(1) combine the purposes and coordinate the 
functions of the wetlands reserve program estab-
lished under section 1237, the grassland reserve pro-
gram established under section 1238N, and the 
farmland protection program established under sec-
tion 1238I, as such sections were in effect on Sep-
tember 30, 2013; 
‘‘(2) restore, protect, and enhance wetlands on 
eligible land; 
‘‘(3) protect the agricultural use and related 
conservation values of eligible land by limiting non-
agricultural uses of that land; and 
‘‘(4) protect grazing uses and related conserva-
tion values by restoring and conserving eligible land. 
‘‘SEC. 1265A. DEFINITIONS. 
‘‘In this subtitle: 
‘‘(1) AGRICULTURAL
LAND
EASEMENT.—The 
term ‘agricultural land easement’ means an ease-
ment or other interest in eligible land that— 
‘‘(A) is conveyed for the purpose of pro-
tecting natural resources and the agricultural 
nature of the land; and 
‘‘(B) permits the landowner the right to 
continue agricultural production and related 
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uses subject to an agricultural land easement 
plan, as approved by the Secretary. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) an agency of State or local govern-
ment or an Indian tribe (including a farmland 
protection board or land resource council estab-
lished under State law); or 
‘‘(B) an organization that is— 
‘‘(i) 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) an organization described in sec-
tion 501(c)(3) of that Code that is exempt 
from taxation under section 501(a) of that 
Code; or 
‘‘(iii) described in— 
‘‘(I) paragraph (1) or (2) of sec-
tion 509(a) of that Code; or 
‘‘(II) section 509(a)(3) of that 
Code and is controlled by an organiza-
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tion described in section 509(a)(2) of 
that Code. 
‘‘(3) ELIGIBLE LAND.—The term ‘eligible land’ 
means private or tribal land that is— 
‘‘(A) in the case of an agricultural land 
easement, agricultural land, including land on a 
farm or ranch— 
‘‘(i) that is subject to a pending offer 
for purchase of an agricultural land ease-
ment from an eligible entity; 
‘‘(ii) that— 
‘‘(I) has prime, unique, or other 
productive soil; 
‘‘(II) contains historical or ar-
chaeological resources; or 
‘‘(III) the protection of which will 
further a State or local policy con-
sistent with the purposes of the pro-
gram; and 
‘‘(iii) that is— 
‘‘(I) cropland; 
‘‘(II) rangeland; 
‘‘(III) grassland or land that con-
tains forbs, or shrubland for which 
grazing is the predominate use; 
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‘‘(IV) pastureland; or 
‘‘(V) nonindustrial private forest 
land that contributes to the economic 
viability of an offered parcel or serves 
as a buffer to protect such land from 
development; 
‘‘(B) in the case of a wetland easement, a 
wetland or related area, including— 
‘‘(i) farmed or converted wetlands, to-
gether with adjacent land that is function-
ally dependent on that land, if the Sec-
retary determines it— 
‘‘(I) is likely to be successfully 
restored in a cost-effective manner; 
and 
‘‘(II) will maximize the wildlife 
benefits and wetland functions and 
values, as determined by the Secretary 
in consultation with the Secretary of 
the Interior at the local level; 
‘‘(ii) cropland or grassland that was 
used for agricultural production prior to 
flooding from the natural overflow of— 
‘‘(I) a closed basin lake and adja-
cent land that is functionally depend-
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ent upon it, if the State or other enti-
ty is willing to provide 50 percent 
share of the cost of an easement; and 
‘‘(II) a pothole and adjacent land 
that is functionally dependent on it; 
‘‘(iii) farmed wetlands and adjoining 
lands that— 
‘‘(I) are enrolled in the conserva-
tion reserve program; 
‘‘(II) have the highest wetland 
functions and values, as determined 
by the Secretary; and 
‘‘(III) are likely to return to pro-
duction after they leave the conserva-
tion reserve program; 
‘‘(iv) riparian areas that link wetlands 
that are protected by easements or some 
other device that achieves the same pur-
pose as an easement; or 
‘‘(v) other wetlands of an owner that 
would not otherwise be eligible, if the Sec-
retary determines that the inclusion of 
such wetlands in a wetland easement would 
significantly add to the functional value of 
the easement; or 
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‘‘(C) in the case of either an agricultural 
land easement or wetland easement, other land 
that is incidental to land described in subpara-
graph (A) or (B), if the Secretary determines 
that it is necessary for the efficient administra-
tion of the easements under this program. 
‘‘(4) PROGRAM.—The term ‘program’ means 
the agricultural conservation easement program es-
tablished by this subtitle. 
‘‘(5) WETLAND EASEMENT.—The term ‘wetland 
easement’ means a reserved interest in eligible land 
that— 
‘‘(A) is defined and delineated in a deed; 
and 
‘‘(B) stipulates— 
‘‘(i) the rights, title, and interests in 
land conveyed to the Secretary; and 
‘‘(ii) the rights, title, and interests in 
land that are reserved to the landowner. 
‘‘SEC. 1265B. AGRICULTURAL LAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall facilitate and provide funding for— 
‘‘(1) the purchase by eligible entities of agricul-
tural land easements and other interests in eligible 
land; and 
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‘‘(2) technical assistance to provide for the con-
servation of natural resources pursuant to an agri-
cultural land easement plan. 
‘‘(b) COST-SHARE ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall protect 
the agricultural use, including grazing, and related 
conservation values of eligible land through cost- 
share assistance to eligible entities for purchasing 
agricultural land easements. 
‘‘(2) SCOPE OF ASSISTANCE AVAILABLE.— 
‘‘(A) FEDERAL SHARE.—An agreement de-
scribed in paragraph (4) shall provide for a 
Federal share determined by the Secretary of 
an amount not to exceed 50 percent of the fair 
market value of the agricultural land easement 
or other interest in land, as determined by the 
Secretary using— 
‘‘(i) the Uniform Standards of Profes-
sional Appraisal Practice; 
‘‘(ii) an area-wide market analysis or 
survey; or 
‘‘(iii) another industry-approved meth-
od. 
‘‘(B) NON-FEDERAL SHARE.— 
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‘‘(i) IN GENERAL.—Under the agree-
ment, the eligible entity shall provide a 
share that is at least equivalent to that 
provided by the Secretary. 
‘‘(ii) SOURCE OF CONTRIBUTION.—An 
eligible entity may include as part of its 
share a charitable donation or qualified 
conservation contribution (as defined by 
section 170(h) of the Internal Revenue 
Code of 1986) from the private landowner 
if the eligible entity contributes its own 
cash resources in an amount that is at 
least 50 percent of the amount contributed 
by the Secretary. 
‘‘(C) EXCEPTION.—In the case of grass-
land of special environmental significance, as 
determined by the Secretary, the Secretary may 
provide an amount not to exceed 75 percent of 
the fair market value of the agricultural land 
easement. 
‘‘(3) EVALUATION AND RANKING OF APPLICA-
TIONS.— 
‘‘(A) CRITERIA.—The Secretary shall es-
tablish evaluation and ranking criteria to maxi-
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mize the benefit of Federal investment under 
the program. 
‘‘(B) CONSIDERATIONS.—In establishing 
the criteria, the Secretary shall emphasize sup-
port for— 
‘‘(i) protecting agricultural uses and 
related conservation values of the land; and 
‘‘(ii) maximizing the protection of 
areas devoted to agricultural use. 
‘‘(C) BIDDING
DOWN.—If the Secretary 
determines that 2 or more applications for cost- 
share assistance are comparable in achieving 
the purpose of the program, the Secretary shall 
not assign a higher priority to any of those ap-
plications solely on the basis of lesser cost to 
the program. 
‘‘(4) AGREEMENTS WITH ELIGIBLE ENTITIES.— 
‘‘(A) 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 this section. 
‘‘(B) 
LENGTH
OF
AGREEMENTS.—An 
agreement shall be for a term that is— 
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‘‘(i) in the case of an eligible entity 
certified under the process described in 
paragraph (5), a minimum of five years; 
and 
‘‘(ii) for all other eligible entities, at 
least three, but not more than five years. 
‘‘(C) MINIMUM TERMS AND CONDITIONS.— 
An eligible entity shall be authorized to use its 
own terms and conditions for agricultural land 
easements so long as the Secretary determines 
such terms and conditions— 
‘‘(i) are consistent with the purposes 
of the program; 
‘‘(ii) permit effective enforcement of 
the conservation purposes of such ease-
ments; 
‘‘(iii) include a right of enforcement 
for the Secretary, that may be used only if 
the terms of the easement are not enforced 
by the holder of the easement; 
‘‘(iv) subject the land in which an in-
terest is purchased to an agricultural land 
easement plan that— 
‘‘(I) describes the activities which 
promote the long-term viability of the 
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land to meet the purposes for which 
the easement was acquired; 
‘‘(II) requires the management of 
grasslands according to a grasslands 
management plan; and 
‘‘(III) includes a conservation 
plan, where appropriate, and requires, 
at the option of the Secretary, the 
conversion of highly erodible cropland 
to less intensive uses; and 
‘‘(v) include a limit on the impervious 
surfaces to be allowed that is consistent 
with the agricultural activities to be con-
ducted. 
‘‘(D) 
SUBSTITUTION
OF
QUALIFIED 
PROJECTS.—An agreement shall allow, upon 
mutual agreement of the parties, substitution of 
qualified projects that are identified at the time 
of the proposed substitution. 
‘‘(E) EFFECT OF VIOLATION.—If a viola-
tion occurs of a term or condition of an agree-
ment under this subsection— 
‘‘(i) the Secretary may terminate the 
agreement; and 
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‘‘(ii) the Secretary may require the el-
igible entity to refund all or part of any 
payments received by the entity under the 
program, with interest on the payments as 
determined appropriate by the Secretary. 
‘‘(5) CERTIFICATION OF ELIGIBLE ENTITIES.— 
‘‘(A) CERTIFICATION PROCESS.—The Sec-
retary shall establish a process under which the 
Secretary may— 
‘‘(i) directly certify eligible entities 
that meet established criteria; 
‘‘(ii) enter into long-term agreements 
with certified eligible entities; and 
‘‘(iii) accept proposals for cost-share 
assistance for the purchase of agricultural 
land easements throughout the duration of 
such agreements. 
‘‘(B) CERTIFICATION CRITERIA.—In order 
to be certified, an eligible entity shall dem-
onstrate to the Secretary that the entity will 
maintain, at a minimum, for the duration of the 
agreement— 
‘‘(i) a plan for administering ease-
ments that is consistent with the purpose 
of this subtitle; 
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‘‘(ii) the capacity and resources to 
monitor and enforce agricultural land ease-
ments; and 
‘‘(iii) policies and procedures to en-
sure— 
‘‘(I) the long-term integrity of 
agricultural land easements on eligible 
land; 
‘‘(II) timely completion of acqui-
sitions of such easements; and 
‘‘(III) timely and complete eval-
uation and reporting to the Secretary 
on the use of funds provided under 
the program. 
‘‘(C) REVIEW AND REVISION.— 
‘‘(i) REVIEW.—The Secretary shall 
conduct a review of eligible entities cer-
tified under subparagraph (A) every three 
years to ensure that such entities are 
meeting the criteria established under sub-
paragraph (B). 
‘‘(ii) REVOCATION.—If the Secretary 
finds that the certified eligible entity no 
longer meets the criteria established under 
subparagraph (B), the Secretary may— 
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‘‘(I) allow the certified eligible 
entity a specified period of time, at a 
minimum 180 days, in which to take 
such actions as may be necessary to 
meet the criteria; and 
‘‘(II) revoke the certification of 
the eligible entity, if, after the speci-
fied period of time, the certified eligi-
ble entity does not meet such criteria. 
‘‘(c) METHOD
OF ENROLLMENT.—The Secretary 
shall enroll eligible land under this section through the use 
of— 
‘‘(1) permanent easements; or 
‘‘(2) easements for the maximum duration al-
lowed under applicable State laws. 
‘‘(d) TECHNICAL ASSISTANCE.—The Secretary may 
provide technical assistance, if requested, to assist in— 
‘‘(1) compliance with the terms and conditions 
of easements; and 
‘‘(2) implementation of an agricultural land 
easement plan. 
‘‘SEC. 1265C. WETLAND EASEMENTS. 
‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 
shall provide assistance to owners of eligible land to re-
store, protect, and enhance wetlands through— 
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‘‘(1) wetland easements and related wetland 
easement plans; and 
‘‘(2) technical assistance. 
‘‘(b) EASEMENTS.— 
‘‘(1) METHOD
OF
ENROLLMENT.—The Sec-
retary shall enroll eligible land under this section 
through the use of— 
‘‘(A) 30-year easements; 
‘‘(B) permanent easements; 
‘‘(C) easements for the maximum duration 
allowed under applicable State laws; or 
‘‘(D) as an option for Indian tribes only, 
30-year contracts (which shall be considered to 
be 30-year easements for the purposes of this 
subtitle). 
‘‘(2) LIMITATIONS.— 
‘‘(A) INELIGIBLE
LAND.—The Secretary 
may not acquire easements on— 
‘‘(i) land established to trees under 
the conservation reserve program, except in 
cases where the Secretary determines it 
would further the purposes of the program; 
and 
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