574 
‘‘(A) a track record of serving clients tar-
geted by the program, including, as appro-
priate, socially disadvantaged farmers; and 
‘‘(B) expertise in dealing with financial 
management aspects of farming. 
‘‘(4) APPROVAL.—Not later than 1 year after 
the date of enactment of this section, in accordance 
with this section, the Secretary shall, on a competi-
tive basis, approve such applications to conduct dem-
onstration programs as the Secretary considers ap-
propriate. 
‘‘(5) TERM OF AUTHORITY.—If the Secretary 
approves an application to carry out a demonstration 
program, the Secretary shall authorize the applicant 
to carry out the project for a period of 5 years, plus 
an additional 2 years to make eligible expenditures 
in accordance with subsection (b)(5)(B). 
‘‘(d) GRANT AUTHORITY.— 
‘‘(1) IN GENERAL.—The Secretary shall make a 
grant to a qualified entity authorized to carry out a 
demonstration program under this section. 
‘‘(2) MAXIMUM AMOUNT OF GRANTS.—The ag-
gregate amount of grant funds provided to a dem-
onstration program carried out under this section 
shall not exceed $250,000. 
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‘‘(3) TIMING OF GRANT PAYMENTS.—The Sec-
retary shall pay the amounts awarded under a grant 
made under this section— 
‘‘(A) on the awarding of the grant; or 
‘‘(B) pursuant to such payment plan as 
the qualified entity may specify. 
‘‘(e) REPORTS.— 
‘‘(1) ANNUAL PROGRESS REPORTS.— 
‘‘(A) IN
GENERAL.—Not later than 60 
days after the end of the calendar year in which 
the Secretary authorizes a qualified entity to 
carry out a demonstration program under this 
section, and annually thereafter until the con-
clusion of the demonstration program, the 
qualified entity shall prepare an annual report 
that includes, for the period covered by the re-
port— 
‘‘(i) an evaluation of the progress of 
the demonstration program; 
‘‘(ii) information about the dem-
onstration program, including the eligible 
participants and the individual develop-
ment accounts that have been established; 
and 
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‘‘(iii) such other information as the 
Secretary may require. 
‘‘(B) SUBMISSION OF REPORTS.—A quali-
fied entity shall submit each report required 
under subparagraph (A) to the Secretary. 
‘‘(2) REPORTS BY THE SECRETARY.—Not later 
than 1 year after the date on which all demonstra-
tion programs under this section are concluded, the 
Secretary shall submit to Congress a final report 
that describes the results and findings of all reports 
and evaluations carried out under this section. 
‘‘(f) ANNUAL REVIEW.—The Secretary may conduct 
an annual review of the financial records of a qualified 
entity— 
‘‘(1) to assess the financial soundness of the 
qualified entity; and 
‘‘(2) to determine the use of grant funds made 
available to the qualified entity under this section. 
‘‘(g) REGULATIONS.—In carrying out this section, 
the Secretary may promulgate regulations to ensure that 
the program includes provisions for— 
‘‘(1) the termination of demonstration pro-
grams; 
‘‘(2) control of the reserve funds in the case of 
such a termination; 
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‘‘(3) transfer of demonstration programs to 
other qualified entities; and 
‘‘(4) remissions from a reserve fund to the Sec-
retary in a case in which a demonstration program 
is terminated without transfer to a new qualified en-
tity. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$5,000,000 for each of fiscal years 2013 through 2018. 
‘‘SEC. 3429. FARMER LOAN PILOT PROJECTS. 
‘‘(a) IN GENERAL.—The Secretary may conduct pilot 
projects of limited scope and duration that are consistent 
with this subtitle to evaluate processes and techniques that 
may improve the efficiency and effectiveness of the pro-
grams carried out under this subtitle. 
‘‘(b) NOTIFICATION.—The Secretary shall— 
‘‘(1) not less than 60 days before the date on 
which the Secretary initiates a pilot project under 
subsection (a), submit notice of the proposed pilot 
project to the Committee on Agriculture of the 
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate; and 
‘‘(2) consider any recommendations or feedback 
provided to the Secretary in response to the notice 
provided under paragraph (1). 
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(ii) in subparagraph (C), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by inserting after subparagraph 
(C) the following: 
‘‘(D) consult with the specialty crops com-
mittee authorized under section 1408A of the 
National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3123a) 
during the peer and merit review process.’’; and 
(B) in paragraph (3), by striking ‘‘non- 
Federal’’ and all that follows through the end 
of the paragraph and inserting ‘‘other sources 
in an amount that is at least equal to the 
amount provided by a grant received under this 
section.’’; and 
(3) in subsection (h), by striking paragraph (3) 
and inserting the following: 
‘‘(3) SUBSEQUENT FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall make available to carry out this section— 
‘‘(A) $25,000,000 for fiscal year 2014; 
‘‘(B) $30,000,000 for each of fiscal years 
2015 and 2016; 
‘‘(C) $65,000,000 for fiscal year 2017; and 
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