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ing operation as a partner in a general partner-
ship, 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 Sec-
retary) shall be considered as actively engaged in
farming with respect to a farming operation 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
personal labor or active personal manage-
ment to the operation; and
‘‘(iii) the standards provided in clauses
(ii) and (iii) of subparagraph (A), as ap-
plied to the legal entity, are met by the legal
entity;
‘‘(C) if a legal entity that is a general part-
nership, joint venture, or similar entity, as de-
termined by the Secretary, separately makes a
significant contribution (based on the total value
of the farming operation involved) of capital,
equipment, or land, and the standards provided
in clauses (ii) and (iii) of subparagraph (A), as
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applied to the legal entity, are met by the legal
entity, the partners or members making a sig-
nificant contribution of personal labor or active
personal management shall be considered to be
actively engaged in farming with respect to the
farming operation involved; and
‘‘(D) in making determinations under this
subsection regarding equipment and personal
labor, the Secretary shall take into consideration
the equipment and personal labor normally and
customarily provided by farm operators in the
area involved to produce program crops.
‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.—
‘‘(1) LANDOWNER.—A person or legal entity that
is a landowner contributing the owned land to a
farming operation shall be considered to be actively
engaged in farming with respect to the farming oper-
ation if—
‘‘(A) the landowner receives rent or income
for the use of the land based on the production
on the land or the operating results of the oper-
ation; and
‘‘(B) the person or legal entity meets the
standards provided in clauses (ii) and (iii) of
subsection (b)(2)(A).
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‘‘(2) ADULT FAMILY MEMBER.—If a majority of
the participants in a farming operation are family
members, an adult family member shall be considered
to be actively engaged in farming with respect to the
farming operation if the person—
‘‘(A) makes a significant contribution,
based on the total value of the farming operation,
of active personal management or personal labor;
and
‘‘(B) with respect to such contribution,
meets the standards provided in clauses (ii) and
(iii) of subsection (b)(2)(A).
‘‘(3) 
SHARECROPPER.—A 
sharecropper 
who
makes a significant contribution of personal labor to
a farming operation shall be considered to be actively
engaged in farming with respect to the farming oper-
ation if the contribution meets the standards provided
in clauses (ii) and (iii) of subsection (b)(2)(A).
‘‘(4) GROWERS
OF
HYBRID
SEED.—In deter-
mining whether a person or legal entity growing hy-
brid seed under contract shall be considered to be ac-
tively engaged in farming, the Secretary shall not
take into consideration the existence of a hybrid seed
contract.
‘‘(5) CUSTOM FARMING SERVICES.—
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‘‘(A) IN GENERAL.—A person or legal entity
receiving custom farming services shall be con-
sidered separately eligible for payment limita-
tion purposes if the person or legal entity is ac-
tively engaged in farming based on subsection
(b)(2) or paragraphs (1) through (4) of this sub-
section.
‘‘(B) PROHIBITION.—No other rules with re-
spect 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 receives
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
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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:
‘‘SEC. 1001B. DENIAL OF PROGRAM BENEFITS.
‘‘(a) 2-YEAR DENIAL OF PROGRAM BENEFITS.—A per-
son or legal entity shall be ineligible to receive payments
specified in subsections (b) and (c) of section 1001 for the
crop year, and the succeeding crop year, in which the Sec-
retary 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 de-
termines 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, presented false informa-
tion that was material and relevant to the administration
of sections 1001 through 1001F, or committed other equally
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serious 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.—
‘‘(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 otherwise
payable to the person or legal entity described in sub-
section (a) or (b) who is a cash rent tenant on a farm
owned or under the control of the person or legal enti-
ty shall be denied.
‘‘(d) JOINT AND SEVERAL LIABILITY.—Any member of
any legal entity (including partnerships and joint ventures)
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 cooper-
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ates with the Secretary in enforcing sections 1001, 1001A,
and 1001C, and this section.’’.
(f) 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’’.
(2) Section 609(b)(1) of the Emergency Livestock
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 and Energy Security
Act of 2007)’’ after ‘‘1985’’.
(3) Section 524(b)(3) of the Federal Crop Insur-
ance Act (7 U.S.C. 1524(b)(3)) is amended by insert-
ing ‘‘(before the amendment made by section 1703(a)
of the Food and Energy Security Act of 2007)’’ after
‘‘1308(5)))’’.
(4) Section 196(i) of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 7333(i))
is amended in paragraphs (1)(A) and (5) by insert-
ing ‘‘(before the amendment made by section 1703(a)
of the Food and Energy Security Act of 2007)’’ after
‘‘1308)’’ each place it appears.
(5) 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
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amendment made by section 1703(a) of the Food and
Energy Security Act of 2007)’’ after ‘‘1308)’’.
(6) 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 ‘‘(be-
fore the amendment made by section 1703(a) of the
Food and Energy Security Act of 2007)’’ after
‘‘1308)’’.
(7) Section 291(2) of the Trade Act of 1974 (19
U.S.C. 2401(2)) is amended by inserting ‘‘(before the
amendment made by section 1703(a) of the Food and
Energy Security Act of 2007)’’ before the period at
the end.
(g) 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 the day before the date of the enact-
ment of this Act, shall continue to apply with respect to
the 2007 crop of any covered commodity or peanuts.
SEC. 1704. ADJUSTED GROSS INCOME LIMITATION.
(a) EXTENSION OF ADJUSTED GROSS INCOME LIMITA-
TION.—Section 1001D(e) of the Food Security Act of 1985
(7 U.S.C. 1308–3a(e)) is amended by striking ‘‘2007’’ and
inserting ‘‘2012’’.
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(b) ALLOCATION OF INCOME.—Section 1001D(a) of the
Food Security Act of 1985 (7 U.S.C. 1308–3a(a)) is amend-
ed by adding at the end the following:
‘‘(3) ALLOCATION OF INCOME.—On the request of
any individual filing a joint tax return, the Secretary
shall provide for the allocation of adjusted gross in-
come among the individuals filing the return based on
a certified statement provided by a certified public
accountant or attorney specifying the manner in
which the income would have been declared and re-
ported if the individuals had filed 2 separate returns,
if the Secretary determines that the calculation is
consistent with the information supporting the filed
joint return.’’.
(c) MODIFICATION OF LIMITATION.—Section 1001D of
the Food Security Act of 1985 (7 U.S.C. 1308–3a) is
amended by striking subsection (b) and inserting the fol-
lowing:
‘‘(b) LIMITATION.—
‘‘(1) COMMODITY
AND
CONSERVATION
PRO-
GRAMS.—
‘‘(A) COMMODITY PROGRAMS.—
‘‘(i) 
2009 
CROP
YEAR.—Notwith-
standing any other provision of law, an in-
dividual or entity shall not be eligible to re-
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ceive any benefit described in paragraph
(2)(A) during the 2009 crop year if the av-
erage adjusted gross income of the indi-
vidual or entity exceeds $1,000,000, unless
not less than 66.66 percent of the average
adjusted gross income of the individual or
entity is derived from farming, ranching, or
forestry operations, as determined by the
Secretary.
‘‘(ii) 2010 AND
SUBSEQUENT
CROP
YEARS.—Notwithstanding any other provi-
sion of law, an individual or entity shall
not be eligible to receive any benefit de-
scribed in paragraph (2)(A) during any of
the 2010 and subsequent crop years if the
average adjusted gross income of the indi-
vidual or entity exceeds $750,000, unless
not less than 66.66 percent of the average
adjusted gross income of the individual or
entity is derived from farming, ranching, or
forestry operations, as determined by the
Secretary.
‘‘(B) CONSERVATION PROGRAMS.—Notwith-
standing any other provision of law, an indi-
vidual or entity shall not be eligible to receive
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any benefit described in paragraph (2)(B) dur-
ing a fiscal year if the average adjusted gross in-
come of the individual or entity exceeds
$2,500,000, unless not less than 75 percent of the
average adjusted gross income of the individual
or entity is derived from farming, ranching, or
forestry operations, as determined by the Sec-
retary.
‘‘(2) COVERED BENEFITS.—
‘‘(A) 
IN
GENERAL.—Paragraph 
(1)(A)
apply with respect to the following:
‘‘(i) A direct payment or counter-cycli-
cal payment under part I or III of subtitle
A of title I of the Food and Energy Security
Act of 2007.
‘‘(ii) A marketing loan gain or loan
deficiency payment under part II or III of
subtitle A of title I of the Food and Energy
Security Act of 2007.
‘‘(iii) An average crop revenue pay-
ment under subtitle B of title I of Food and
Energy Security Act of 2007.
‘‘(B) 
CONSERVATION
PROGRAMS.—Para-
graph (1)(B) applies with respect to a payment
under any program under—
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‘‘(i) title XII of this Act;
‘‘(ii) title II of the Farm Security and
Rural Investment Act of 2002 (Public Law
107–171; 116 Stat. 223); or
‘‘(iii) title II of the Food and Energy
Security Act of 2007.
‘‘(3) INCOME DERIVED FROM FARMING, RANCH-
ING
OR
FORESTRY
OPERATIONS.—In determining
what portion of the average adjusted gross income of
an individual or entity is derived from farming,
ranching, or forestry operations, the Secretary shall
include income derived from—
‘‘(A) the production of crops, livestock, or
unfinished raw forestry products;
‘‘(B) the sale, including the sale of ease-
ments and development rights, of farm, ranch, or
forestry land or water or hunting rights;
‘‘(C) the sale of equipment to conduct farm,
ranch, or forestry operations;
‘‘(D) the rental or lease of land used for
farming, ranching, or forestry operations, in-
cluding water or hunting rights;
‘‘(E) the provision of production inputs and
services to farmers, ranchers, and foresters;
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‘‘(F) the processing (including packing),
storing (including shedding), and transporting of
farm, ranch, and forestry commodities;
‘‘(G) the sale of land that has been used for
agriculture; and
‘‘(H) payments or other income attributable
to benefits received under any program author-
ized under title I or II of the Food and Energy
Security Act of 2007.’’.
(d) TRANSITION.—Section 1001D of the Food Security
Act of 1985 (7 U.S.C. 1308–3a), as in effect on the day
before the date of the enactment of this Act, shall continue
to apply with respect to the 2007 and 2008 crops of any
covered commodity or peanuts.
SEC. 1705. AVAILABILITY OF QUALITY INCENTIVE PAY-
MENTS FOR CERTAIN PRODUCERS.
(a) INCENTIVE PAYMENTS REQUIRED.—Subject to sub-
section (b), the Secretary shall use funds made available
under subsection (g) to provide quality incentive payments
for the production of oilseeds with specialized traits that
enhance human health, as determined by the Secretary.
(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—
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(1) been demonstrated to improve the health pro-
file 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
(B) adopting new technology traits; and
(2) 1 or more impediments to commercialization.
(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.—An entity 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) each oilseed variety described in sub-
section (b) and the value of the oilseed variety as
a matter of public policy;
(B) a range for the amount of total per
bushel or hundredweight premiums to be paid to
producers;
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(C) 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;
(D) the period of time, not to exceed 4
years, during which incentive payments are to be
provided to producers; and
(E) 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 so as to allow production contracts to
be entered into with producers in advance of the
spring planting season for the 2009 crop year.
(2) TIMING OF PAYMENTS.—The Secretary shall
make payments to producers under this section after
the Secretary receives documentation that the pre-
mium required under a contract has been made to
covered producers.
(e) ADMINISTRATION.—If funding provided for a crop
year is not fully allocated under the initial request for pro-
posals under subsection (c), the Secretary shall issue addi-
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tional requests for proposals for subsequent crop years
under this section.
(f) PROPRIETARY INFORMATION.—The Secretary shall
protect proprietary information provided to the Secretary
for the purpose of administering this section.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to carry out this section
$400,000,000 for the period of fiscal years 2008 through
2012.
SEC. 1706. 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;
(B) of a variety that is suitable for the
State in which the seed will be planted;
(C) rated at least superior with respect to
quality; and
(D) specifically approved under a seed es-
tablishment program established by the State De-
partment of Agriculture and the State Wheat
Commission of the 1 or more States in which the
seed will be planted.
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(2) PROGRAM.—The term ‘‘program’’ means the
hard white wheat development program established
under subsection (b)(1).
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture, in consultation with the
State Departments of Agriculture and the State
Wheat Commissions of the States in regions in which
hard white wheat is produced, as determined by the
Secretary.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary shall establish
a hard white wheat development program in accord-
ance with paragraph (2) to promote the establishment
of hard white wheat as a viable market class of wheat
in the United States by encouraging production of at
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), the Sec-
retary shall make available incentive payments
to producers of each of the 2008 through 2012
crops of hard white wheat.
(B) ACREAGE LIMITATION.—The Secretary
shall carry out subparagraph (A) subject to a re-
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gional limitation determined by the Secretary on
the number of acres for which payments may be
received that takes into account planting history
and potential planting, but does not exceed a
total of 2,900,000 acres or the equivalent 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
(ii) in an amount that is not less than
$2.00 per acre for planting eligible hard
white wheat seed.
(c) FUNDING.—The Secretary shall make available
$35,000,000 of funds of the Commodity Credit Corporation
during the period of crop years 2008 through 2012 to pro-
vide incentive payments to producers of hard white wheat
under this section.
SEC. 1707. DURUM WHEAT QUALITY PROGRAM.
(a) IN GENERAL.—Subject to the availability of funds
under subsection (c), the Secretary shall provide compensa-
tion to producers of durum wheat in an amount not to ex-
ceed 50 percent of the actual cost of fungicides applied to