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‘‘(h) CONTRACT RENEWAL.—At the end of an initial 
conservation security contract of a producer, the Secretary 
may allow the producer to renew the contract for one addi-
tional five-year period if the producer— 
‘‘(1) demonstrates compliance with the terms of 
the existing contract, including a demonstration that 
the producer has complied with the schedule for the 
implementation of new practices and activities in-
cluded in the conservation security contract and has 
met the stated goals for increasing the level of man-
agement intensity with which the producer is ad-
dressing the designated priority resource of concern 
or priority resources of concern; and 
‘‘(2) agrees to implement and maintain such 
additional new conservation practices and activities 
as the Secretary determines necessary and feasible 
to achieve higher levels of management intensity 
with which the producer addresses the designated 
priority resource of concern or priority resources of 
concern. 
‘‘(i) EFFECT
OF NONCOMPLIANCE DUE
TO CIR-
CUMSTANCES BEYOND THE CONTROL OF PRODUCERS.— 
The Secretary shall include in the conservation security 
contract a provision to ensure that a producer shall not 
be considered in violation of a conservation security con-
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tract for failure to comply with the conservation security 
contract due to circumstances beyond the control of the 
producer, including a disaster or related condition, as de-
termined by the Secretary. 
‘‘(j) EVALUATION OF OFFERS.—In evaluating appli-
cations by producers to enroll in the conservation security 
program, the Secretary shall— 
‘‘(1) consider the extent to which the antici-
pated environmental benefits from the contract are 
provided at least cost relative to other similar activi-
ties; 
‘‘(2) consider the extent to which the producer 
proposes to increase the level of performance on ap-
plicable resource-specific indices or the level of man-
agement intensity with which the producer addresses 
the designated priority resources of concern; 
‘‘(3) consider the extent to which the environ-
mental benefits expected to result from the contract 
complements other conservation efforts in the water-
shed or region; 
‘‘(4) consider the multiple benefits of conserva-
tion-based farming systems, including resource-con-
servation crop rotations, managed rotational graz-
ing, and the adoption of certified production under 
the national organic production program under the 
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Organic Foods Production Act of 1990 (7 U.S.C. 
6501 et seq.); and 
‘‘(5) develop any additional criteria for evalu-
ating applications that the Secretary determines are 
necessary to ensure that national, State, and local 
conservation priorities are effectively addressed. 
‘‘(k) COORDINATION
WITH
ORGANIC
CERTIFI-
CATION.—Within 90 days after the date of the enactment 
of the Farm, Nutrition, and Bioenergy Act of 2007, the 
Secretary shall establish a transparent and producer- 
friendly means by which producers may coordinate and si-
multaneously certify eligibly under a conservation security 
contract and under the national organic production pro-
gram established under the Organic Foods Production Act 
of 1990 (7 U.S.C. 6501 et seq.). 
‘‘SEC. 1238B. DUTIES OF PRODUCERS. 
‘‘(a) AGREEMENT
BY PRODUCER.—Under a con-
servation security contract, a producer shall agree— 
‘‘(1) to implement during the term of the con-
servation security contract the conservation plan ap-
proved by the Secretary; 
‘‘(2) to maintain, and make available to the 
Secretary at such times as the Secretary may re-
quest, appropriate records showing the effective and 
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timely implementation of the conservation security 
contract; and 
‘‘(3) not to engage in any activity during the 
term of the conservation security contract that 
would interfere with the purposes of the conservation 
security program. 
‘‘(b) EFFECT OF VIOLATION.—On the violation of a 
term or condition of the conservation security contract of 
a producer— 
‘‘(1) if the Secretary determines that the viola-
tion warrants termination of the conservation secu-
rity contract, the producer shall— 
‘‘(A) forfeit all rights to receive payments 
under the conservation security contract; and 
‘‘(B) refund to the Secretary all or a por-
tion of the payments received by the producer 
under the conservation security contract, in-
cluding any advance payments and interest on 
the payments, as determined by the Secretary; 
‘‘(2) if the Secretary determines that the viola-
tion does not warrant termination of the conserva-
tion security contract, the producer shall refund to 
the Secretary, or accept adjustments to, the pay-
ments provided to the producer, as the Secretary de-
termines to be appropriate; or 
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‘‘(3) some combination of the remedies author-
ized by paragraphs (1) and (2), as determined by 
the Secretary to be appropriate. 
‘‘SEC. 1238C. DUTIES OF THE SECRETARY. 
‘‘(a) IDENTIFICATION OF PRIORITY RESOURCES OF 
CONCERN.— 
‘‘(1) IDENTIFICATION AT STATE LEVEL.—The 
Secretary shall ensure that the identification of pri-
ority resources of concern is made at the State level 
so that each priority resource of concern— 
‘‘(A) represents a significant environmental 
concern, including watershed management or 
wildlife habitat, in the State to which agricul-
tural activities are contributing; and 
‘‘(B) is likely to be addressed successfully 
through the implementation of conservation 
practices and other activities by producers. 
‘‘(2) LIMITATION.—The Secretary shall identify 
not more than 5 resources of concern as priority re-
sources of concern in a particular watershed or other 
appropriate region or area within a State. 
‘‘(3) ADVICE
AND
CONSULTATION.—The Sec-
retary, with the advice of the appropriate State tech-
nical committee and in consultation with Federal 
and State agencies with expertise related to natural 
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resources and environmental quality, shall designate, 
to the extent practicable, each priority resource of 
concern identified under paragraph (1) as either a 
primary, secondary, or tertiary resource of concern. 
‘‘(b) DEVELOPMENT OF RESOURCE-SPECIFIC INDI-
CES.—The Secretary shall develop resource-specific indi-
ces to measure the management intensity with which spe-
cific resources of concern are addressed, for purposes of 
determining eligibility and payments for participants in 
the conservation security program. 
‘‘(c) STEWARDSHIP ENHANCEMENT PAYMENT.— 
‘‘(1) TIMING
OF
PAYMENT.—The Secretary 
shall make a payment under a conservation security 
contract as soon as practicable after October 1 of 
each fiscal year. 
‘‘(2) 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 practices and activities 
for which there is no net cost or loss of income 
to the producer, as determined by the Sec-
retary. 
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‘‘(3) AVAILABILITY OF PAYMENTS.—The Sec-
retary shall provide a stewardship enhancement pay-
ment to a producer under a conservation security 
contract to compensate the producer for— 
‘‘(A) ongoing implementation and mainte-
nance of conservation practices, activities, and 
management measures in place on the pro-
ducers operation at the time the conservation 
security contract is accepted; and 
‘‘(B) installation and adoption of new con-
servation practices, activities, and management 
measures or improvements to conservation prac-
tices, activities, and management measures in 
place on the producer’s operation, as required 
by the conservation security contract. 
‘‘(4) PAYMENT AMOUNT.—The amount of the 
stewardship enhancement payment shall be deter-
mined by the Secretary and shall be based, to the 
maximum extent feasible, on— 
‘‘(A) a portion of the actual costs incurred 
by the producer; 
‘‘(B) the income forgone by the producer; 
and 
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‘‘(C) resource-specific indices, in any case 
in which such indices have been developed and 
implemented. 
‘‘(d) PAYMENT LIMITATIONS.—An individual or enti-
ty may not receive, directly or indirectly, payments under 
a conservation security contract that, in the aggregate, ex-
ceed $150,000 for the 5-year term of the conservation se-
curity contract, excluding funding arrangements with fed-
erally recognized Indian Tribes or Alaska Native Corpora-
tions. 
‘‘(e) REGULATIONS.—The Secretary shall promulgate 
regulations that— 
‘‘(1) provide for adequate safeguards to protect 
the interests of tenants and sharecroppers, including 
provision for sharing payments, on a fair and equi-
table basis; and 
‘‘(2) 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 (d). 
‘‘(f) ALLOCATION TO STATES.—When making alloca-
tions to States of funds made available to carry out the 
conservation security program, the Secretary shall give 
significant consideration to the extent and magnitude of 
the environmental needs associated with agricultural pro-
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duction in each State, the degree to which implementation 
of the conservation security program in the State is, or 
will be, effective in helping producers address these needs, 
and other considerations to achieve equitable geographic 
distributions of funds, as determined by the Secretary. 
‘‘(g) TECHNICAL ASSISTANCE.—For each of fiscal 
years 2008 through 2017, the Secretary shall provide ap-
propriate technical assistance to producers for the develop-
ment and implementation of conservation security con-
tracts, in an amount not to exceed 15 percent of the 
amounts expended for the fiscal year. 
‘‘(h) DATA.—The Secretary shall maintain conserva-
tion security program contract and payment data in a 
manner that provides detailed and segmented data that 
allows for quantification of the amount of payments made 
to producers for— 
‘‘(1) the maintenance of conservation practices, 
activities, and management measures in place on the 
producer’s operation at the time the conservation se-
curity offer is accepted by the Secretary; 
‘‘(2) the installation and adoption of new con-
servation practices, activities, and management 
measures and the improvements to conservation 
practices, activities, and management measures in 
place on the producer’s operation at the time the 
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conservation security offer is accepted by the Sec-
retary; 
‘‘(3) participation in research, demonstration, 
and pilot projects; and 
‘‘(4) the development and periodic assessment 
and 
evaluation 
of 
comprehensive 
conservation 
plans.’’. 
(b) EFFECT ON EXISTING CONSERVATION SECURITY 
CONTRACTS.—Subchapter A of chapter 2 of subtitle D of 
title XII of the Food Security Act of 1985 (16 U.S.C. 
3838 et seq.), as in effect on the day before the date of 
the enactment of this Act, shall continue to apply to con-
servation security contracts entered into before October 1, 
2007. The Secretary of Agriculture may continue to make 
payments under such subchapter, as so in effect, with re-
spect to such a conservation security contracts during the 
term of the contract. 
(c) PROHIBITION ON NEW CONTRACTS.—A conserva-
tion security contract may not be entered into or renewed 
under subchapter A of chapter 2 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), 
as in effect on the day before the date of the enactment 
of this Act, after September 30, 2007. 
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SEC. 2104. GRASSLAND RESERVE PROGRAM. 
(a) ENROLLMENT PRIORITY.—Subsection (b) of sec-
tion 1238N of the Food Security Act of 1985 (16 U.S.C. 
3838n) is amended by striking paragraph (3) and insert-
ing the following new paragraph: 
‘‘(3) PRIORITY FOR LONG-TERM AGREEMENTS 
AND EASEMENTS.—Of the total number of acres en-
rolled in the program at any one time through the 
methods described in paragraph (2)(A), the Sec-
retary shall ensure that at least 60 percent of the 
acres were enrolled through the use of 30-year rental 
agreements and permanent and long-term easements 
described in clause (ii) of such paragraph.’’. 
(b) ENROLLMENT OF ACREAGE.—Subsection (b) of 
section 1238N of the Food Security Act of 1985 (16 
U.S.C. 3838n) is amended by striking paragraph (1) and 
inserting the following new paragraph: 
‘‘(1) ENROLLMENT.—The Secretary shall enroll 
an additional 1,340,000 acres of restored or im-
proved grassland, rangeland, and pastureland in the 
grassland reserve program during fiscal years 2008 
through 2012.’’. 
(c) ENROLLMENT OF CONSERVATION RESERVE PRO-
GRAM LAND.—Section 1238N of the Food Security Act 
of 1985 (16 U.S.C. 3838n) is amended by adding at the 
end the following new subsections: 
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‘‘(d) ENROLLMENT
OF CONSERVATION RESERVE 
PROGRAM LAND.— 
‘‘(1) ENROLLMENT
AUTHORIZED.—Subject to 
the eligibility requirements of subsection (c) and all 
other requirements of this subchapter, land enrolled 
in the conservation reserve program may be enrolled 
in the grassland reserve program if the Secretary de-
termines that the land is of high ecological value and 
under significant threat of conversion to other uses. 
‘‘(2) MAXIMUM ENROLLMENT.—The number of 
acres of conservation reserve program land enrolled 
under this subsection in a calendar year shall not ex-
ceed 10 percent of the total number of acres enrolled 
in the grassland reserve program in that calendar 
year. 
‘‘(3) PROHIBITION ON DUPLICATION OF PAY-
MENTS.—Land enrolled in the program under this 
subsection shall no longer be eligible for payments 
under the conservation reserve program. 
‘‘(e) METHOD FOR DETERMINATION OF FAIR MAR-
KET VALUE.—The Secretary shall determine the fair mar-
ket value of land to be enrolled in program based on the 
option specified in paragraph (1), (2), (3), or (4) that re-
sults in the lowest amount of compensation to be paid by 
the Secretary: 
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